Are you in the market for a new home? Does the idea of buying a new construction home sound ideal? With construction costs on the rise and builders taking more control of the offer, it may not be the best decision. There are so many factors that affect new home construction that are not an issue when you purchase a resale home. Here are the benefits of purchasing a resale home.
Flexible Move-in Dates
If you want to move into your newly purchased home right away, buying resale is the right choice for you. Most resale home sellers are flexible with the closing date of the home. There can be exceptions or extenuating circumstance, but generally, you can negotiate a closing date that works for both parties. The closing date of a pre-construction home can be a year to 18 months away. A lot of new build projects take longer than expected. Builders have been known to push back the closing date, leaving purchasers to make alternative living arrangements.
Location, Location, Location
Typically, resale homes are in established neighbourhoods which provides buyers with easy access to things like transit, shopping, and entertainment. Infrastructure is normally already established as well. Schools in these neighbourhoods have ratings that you can count on, and places of worship have congregations if that is something of interest. Landscaping, and sometimes fencing, is already completed. This means no added expense is passed on to you, the buyer, for these items. Most neighbourhoods that encompass resale homes are filled with history and charm. There are many cities in Canada that are currently taking initiatives to revamp and upgrade older communities.
No Mess, No Fuss.
More often than not, when you purchase a new construction home, you are getting just that: new and construction. Roadways and sidewalks might not be completed which means dirt and debris will be everywhere, including inside the house. As mentioned, resale homes built in established neighbourhoods have everything done, and therefore, the only thing you need to worry about tracking into the home is what mother nature brings you.
Mortgage and Taxes
Obtaining a mortgage on a resale home, even if you are upsizing, is pretty straightforward. The opposite is true of a new construction home. The mortgage for a new construction home is different. It is called a construction mortgage and is based on the contract you have with the developer or builder. The contents of that contract can affect the details of your mortgage or loan. So, you can see, the process is a little more complicated than purchasing a resale home. New home purchases are subject to HST upon closing. That can potentially be a heavy cash payment and has certain tax implications. Typically resale home purchases have taxes included in the purchase price.
The benefits of purchasing a resale home are evident. If you are a fan of traditional architecture or looking for a home oozing with character, you are definitely going to want to spend your time looking at resale homes.