Buying a home is a big step. Aside from picking the perfect location, you need to decide what features you're looking for and what will make you and your family comfortable.
One of the toughest choices you'll need to make is whether you want to start from scratch and have your dream home built for you or if you would like something previously owned. Both options have their benefits, so you'll need to think carefully before making a decision.
We talk about the pros and cons of buying a new home build versus a resale below so you can make an informed decision.
Home Maintenance
The first thing to consider is how much maintenance you want to do on your home. One of the benefits of choosing a new home is that everything inside the home is also new. This means there's less upkeep from the moment you move in.
When you purchase a home that was previously owned, you'll likely need to make repairs or update features before you even move in. After you move in, you'll have to worry about older appliances breaking, roof replacements, and structural issues that come with owning an older home.
While you would have to worry about these things with a newer home eventually, you need to be prepared to deal with them immediately if you purchase a resale home.
When you view a previously owned home, ask a lot of questions to determine how much money you will need to put into the upkeep of the home.
Initial Price
It's hard to make a decision based on the initial price tag alone. New homes can cost more; however, everything inside is new. A previously owned home may be cheaper, but you will likely have to make upgrades to turn it into your dream home.
Factor in any updates that you'll need to make before you negotiate a price so that you can make a more accurate comparison.
Home Warranty
Having a home warranty can help you when there's an issue. While home warranties on previously owned homes will likely be expired, new homes always have them.
Prominent Homes, for example, are covered by the Alberta New Home Warranty Program. Coverage includes 1 year of labour and materials, 2 years of distribution system coverage, 5 years of coverage for defects in the building, and 10 years of structural coverage.
If you do purchase a previously owned home, and something happens to compromise the integrity of the home, you may be paying out of pocket to fix it.
Resale Values
Real estate prices can vary greatly depending on the area. While some resale homes do appreciate in value (mostly in land costs for popular established communities), many older homes won't see a significant increase value over time. This isn't necessarily due to the quality of the home; in many cases, the structure needs repairs or the roof needs to be replaced. This affects the overall resale value.
One of the benefits of choosing a new home is that there is a higher resale value if you choose to move. This is especially true in new communities as more amenities are added and if you bought in the early stages of development at a lower price.
Location
Location is a primary factor in choosing a home, but when you shop for a previously owned home, you often have less control. One of the benefits of having a home built is that you can choose which community you want to live in. You can choose from several available locations and find one that suits your lifestyle.
With a previously owned home, you need to go where the home is. This means you may find your dream home with a longer commute to work or a smaller yard. While these factors shouldn't discourage you from seeing what is available, they could be a deal-breaker if you have your heart set on a certain area.
Finding your ideal home can be a challenge, especially if you're new to an area. If you're having trouble deciding between building a new home and finding a previously owned one in Calgary, speak with a builder directly. You'll be able to see first-hand what a new home has to offer.
