A new or a resale home?
Sunday Nov 15th, 2020
To buy a home is a very exciting experience, one needs to make a big decision with the help of a Realtor. This decision has to consider, location, cost, time, etc. so at the end of the day you can be satisfied and enjoy your home.
1- Location: Where you want to live? Why? How far from work? Now, because of the Covid 19, too many people will go to their workplace , rather they will work from home which mean-for many of them- location is not a top priority! However, if the Buyer will consider the location, he/she needs to know that -most likely- will be outside the big city which will be a limited access to transportation or schools , also the new homes may come with smaller rooms...
2- Cost: New homes are more expensive and have higher property tax than the resale but no repairs are needed in the first few years. They come with many kind of warranties 1, 2 or 7 years through Tarion. The resale homes may need some appliance replacement or some repairs, that's why the Buyer must include the inspection condition in the offer! The house must pass the inspection to proceed with the purchase and in case of major issues you have the right to amend the agreement so that the Seller fix them or you cancel the transaction.
3- Time; With the new house, the Buyer will have to face 3-4 month delay which will be a problem if he/she are selling their old house with a certain closing date! In case of resale, the Buyer wil lnot face such problem neither he/she has to wait for the nice landscape to be ready!
4- Investment: If you are an Investor: In new homes, you have to pay and wait till your closing date comes then you start to rent it out; so money with a quick return, , on the other hand , with the reasle , once you pay your down payment on the closidng date , you can start the renting process!
The Bottom Line:
It's up to you to decide what kind of home you prefer,it's both a financial and emotional decision that can contribute to the bright future.