When buyers compare homes in a newer community, one question comes up frequently: Should I buy directly from the builder, or choose a newer resale home that is only a few years old?
At first glance, buying from the builder may seem like the better deal. The home is brand new, and in some cases, the advertised price may even be lower than a comparable resale property.
But comparing the two based on purchase price alone does not always tell the full story.
We recently encountered exactly this situation with one of our listings. A similar floor plan was still available directly from the builder, with a price difference of more than $100,000. Naturally, buyers wanted to know: What am I getting for that extra money?
The answer becomes much clearer once you look beyond the asking price.
1. Upgrades Can Quickly Close the Price Gap
A newer resale home may already include tens of thousands of dollars in upgrades that are not included in a builder's standard package.
In this particular property, both the main and second floors had upgraded hardwood flooring, while the home featured 9-foot ceilings on both levels. The kitchen had also received significant upgrades, including the countertops, island and high-end appliances.
The kitchen upgrades alone represented an estimated investment of approximately $30,000 to $40,000. When the other improvements throughout the property were considered, the total value of the upgrades was estimated at roughly $80,000 to $100,000. 9月24日(1) 9月24日(1)
That can significantly narrow what initially appears to be a large price difference between a builder home and a newer resale property.
2. What You See Is What You Get
One major advantage of buying a newer resale home is certainty.
With a new construction purchase, buyers may need to select finishes, flooring, countertops and other upgrades before seeing exactly how everything will come together.
With a completed resale home, there is much less guesswork.
You can walk through the property, see the finishes in person, understand the layout and evaluate the actual space before making your decision. For buyers who do not want to spend significant time choosing upgrades and managing design decisions, a move-in-ready home can be particularly attractive. 9月24日(1)
3. Don't Forget the Cost of Waiting
Another factor buyers sometimes overlook is time.
A new construction home may require a wait of one to two years before it is ready for occupancy. If you do not already own a home to live in during that period, you may need to rent.
For a comparable property, monthly rent could be approximately $4,500 to $5,000. Over a year or longer, that can add tens of thousands of dollars to the real cost of waiting for a new home to be completed. 9月24日(1)
There is also the lifestyle factor. Even after moving into a newly built community, construction may continue around you for some time. Noise, dust and ongoing development can affect the experience of living in the neighbourhood while it is being completed. 9月24日(1)
4. The Lot and Community Are Already Established
With a newer resale property, buyers can evaluate more than just the house itself.
You can see the actual distance between neighbouring homes, backyard privacy, landscaping and how the community has developed. In the property we recently marketed, for example, the backyard offered strong privacy and the lot itself was an important part of the home's appeal. 9月24日(1)
Instead of imagining what the neighbourhood may eventually look like, buyers can evaluate the community as it exists today.
So, Which One Should You Choose?
There is no universal answer.
A newer resale home may make more sense for buyers who want a move-in-ready property, greater certainty and an established community. It can also appeal to buyers who would rather have upgrades already completed instead of spending additional time and money after purchasing.
On the other hand, buying directly from a builder may suit buyers who enjoy selecting their own finishes and upgrades, want a completely new home, and are comfortable waiting for construction to be completed. 9月24日(1)
The key is to avoid comparing the two options based only on their advertised prices.
When evaluating new construction against a newer resale home, consider the purchase price, upgrades, appliances, rental costs while waiting, lot characteristics, community maturity and the value of being able to move in right away.
Sometimes, the home that looks more expensive on paper may offer much more value once you look at the complete picture.
Thinking about buying a new construction or newer resale home in Oakville? Contact The Fisher Group to explore which option makes the most sense for your budget, timeline and lifestyle.
