New Homes vs. Resale
"... for your review, BEFORE You Visit Your First Model Home!"
When shopping for your home, you'll discover that most homes on the market are resales. Yet, 1 out of 4 home buyers purchases a new home. Both new homes and resales offer advantages.
Compare These Points!
- offer innovative use of space and style
- greater energy efficiency
- a choice of options and upgrades
- everything is new, and modern
Existing Homes - Resales
- on average they are less expensive
- often they are in established neighbourhoods with mature landscaping
- they have already settled, eliminating possible problems that arise from this happening after the purchase of a new home
As you can see, both choices have advantages. Most people consider new 'and' existing homes before they decide to purchase. Should you be thinking about buying a new house, here are 10 points to ponder before you visit your first model home.
1. Determine a Comfortable Price Range
Before you visit your first model home, sit down with your agent and do your homework. You'll want to be prepared so that you can determine a comfortable price range for your new home. If you own a home, you'll first need to know the net proceeds from its sale in order to determine how much cash you'll have to work with. Carefully calculate every possible selling cost. If you're a first time buyer, you'll need to first qualify your income. Determine the size of your downpayment, then work out a monthly debt load so you can determine a comfortable price range.
2. Seller's Agents Versus Buyer's Agents
Here's a good point to remember. The sales agent in the model home represents the builder, not you. They are known as seller's agents. As a buyer you can work with a buyer's agent at no additional cost. It's his/her business to best represent your needs by being knowledgeable about home construction, warranties, financing, differences in pricing, quality, even lot selection so that you get the best value for your money.
3. A Builder For All Reasons
Like all tradesmen, builders vary in their fields of expertise. For example, there are builders who specialize in craftsmanship, others who are known for their innovative use of space, and those who offer below-market financing or customer attention during construction and after move-in. Determine your own specific needs or preferences then shop around for a builder that will best address your requirements.
4. Get the Facts About Your Builder
Before making a final decision, it is wise to check out the reputation and financial strength of the builder. Get "spec sheets" on home features covering everything from floor plans to energy efficiency, including lot availability and delivery of your home.
5. Check Out the Neighbourhood
- Learn as much as you can about the community.
- Discover what amenities it has to offer.
- Investigate if financial reserves have been set aside to build or replace major amenities like schools or community roads
- Find out from local land-use officials what else is planned or could be constructed in the area, especially where vacant land is applicable.
- Review the rules for the homeowner's association, or find out if one will be set up.
- Think of how you will be affected by commuting routes and times.