You may have fallen in love with the idea of buying a home that’s never been lived in before. There is something special about buying a brand new home that appeals to a lot of buyers.

Let’s explore the various aspects of choosing a pre-construction freehold home:

Customization Opportunities

New builds often allow you to personalize your living space. This can include selecting finishes, choosing color schemes, and sometimes even modifying floor plans. Typically, standard builder finishes are basic and if you opt to upgrade, it can become quite costly. Customization options may vary depending on the builder and the stage of construction.

Energy Efficiency

Modern construction will be compliant to the latest building codes, which means the home will typically have better insulation, more efficient HVAC systems, and energy-saving appliances. This can lead to lower utility costs and a reduced environmental footprint.

Warranty Protection

In Ontario, new homes come with Tarion warranty coverage. This usually includes:

• One-year coverage for defects in work and materials
• Two-year coverage for major systems (electrical, plumbing, heating)
• Seven-year coverage for major structural defects Understanding the details of your warranty can provide peace of mind for your investment.

Timeline Considerations

The construction process requires patience. Completion times can range from several months to a few years, depending on the size and scope of the development. In Ontario, factors like weather conditions and supply chain issues can impact timelines, so it’s crucial to discuss potential delays with the builder.

Modern Design and Technology

New homes often incorporate the latest design trends and smart home technologies, which can enhance your living experience and potentially increase resale value.

Maintenance Costs

With everything being new, you can generally expect lower maintenance costs in the initial years of ownership.

Community Development

New constructions are often part of planned communities, which may include amenities like parks, community centers, or shopping areas. However, these might not be completed immediately, so consider the long-term community plan.

Most people will buy a resale property as their first home, and there are many reasons why this is a better option for first time home buyers. Let’s explore what you can expect when considering a resale property:

Lower Initial Costs

Most buyers can purchase a resale home with as little down as 5% down payment. Total closing costs are significantly lower as well, and will often be equal to 1.5% – 4% of the purchase price.

Immediate Availability

Resale properties often allow for a quicker move-in process. The timeline typically spans a few months from offer acceptance to the closing date, which is important if you need to move into a property soon.

Price Negotiation

There’s usually more flexibility in price discussions when dealing with individual sellers compared to builders, where new homes have fixed prices. Market conditions, the condition of the home, and seller motivation can all play a role in negotiations. In addition, having a skilled RE/MAX buyer agent representing you can significantly increase your chances of getting a better price or better terms.

Established Neighbourhoods

Resale homes are frequently located in established areas, offering:

• Developed landscaping and mature trees
• Existing infrastructure and amenities such as shopping and parks
• A sense of community and neighborhood character

Value-Add Potential

There are opportunities to find homes in outdated condition and improve it through renovations. This provides the homeowner the ability to quickly increase the value of their home on their own.

Historical Character

In some older homes, you can find unique architectural details and craftsmanship that may not be readily available in new constructions. This can add charm and character to your living space.

Bigger Lot Sizes

Older neighborhoods often feature larger lot sizes compared to new developments, which might be attractive if outdoor space is a priority for you.

Whether choosing new construction or a resale property, it’s important to consider the financial implications because they are vastly different.

Closing Costs

New constructions often have additional costs like HST (which may be partially rebatable for first-time buyers) and development charges. Resale properties will have lower closing costs and the HST is built into the purchase price.

Property Taxes

New constructions may have higher property tax assessments compared to similar resale properties in the area. It’s important to research potential tax implications for both options.

Financing

Some lenders offer special mortgage products for new constructions, but this varies depending on market conditions and availability. Resale properties are fairly simple to finance and lenders are very familiar with lending for existing homes.

Your choice between a new build and a resale home will depend on various factors, including:

• Your timeline and ability to wait for construction
• Desire for customization vs. immediate move-in
• Preference for modern amenities vs. established neighborhoods
• Budget considerations, including upfront costs and long-term maintenance
• Your willingness to take on renovation projects

Consider creating a list of must-haves and nice-to-haves to help prioritize your needs.

Don’t hesitate to consult with Team Paliwal who can provide insights into specific neighborhoods and developments.

Remember, whether you choose the fresh start of a new construction or the established character of a resale home, both paths can lead to finding your dream home!

The first step is to schedule a no obligation in-person or zoom video call meeting to understand what may be the best option for you.

There are many points to consider when deciding between buying a resale home or a pre-construction home in the GTA. 10 out of 10 buyers have found this initial meeting to be extremely useful in their home buying journey. Get in touch with a Real Estate Expert today!

If you are interested in finding the perfect pre-construction home from the builder, Team Paliwal can help you.

How does it benefit me as a buyer to work with RE/MAX Team Paliwal as when buying a brand new home from the builder?

Working with us give you several benefits:

• You get the highest level of access when the project is launched
• You pay the lowest possible price for the new home (prices are typically increased significantly after the Platinum sales event)
• The best possible incentives and terms
• Team Paliwal does not represent the builder. We represent you. You benefit from our expertise of being top selling pre-construction agents and investors since 2007.
• Access to our personal network of mortgage brokers, lawyers, property management, HST rebate services, handymen and much more.
• Our services to you as a buyer are free

Picture by Sieuwert Otterloo on Unsplash