Toronto and Thornhill Real Estate Difference between buying from builder and a resale home

Toronto and Thornhill Real Estate

Difference between buying from builder and a resale home

It's time to buy we are looking at buying our first home or moving up from a condo or a smaller home. We are looking at an area that offers resale homes and also new construction. The question is what are the advantages to buying either. There is no right or wrong answer in what direction to go it comes down to your wants. needs and the lifestyle you are looking to live.

When buying from the builder you have the advantage of a one stop shop, there are no repairs, no inspection needed, can choose decor to your own taste and in many cases choose the layout of the house. Mortgages tend to be easier as you are able to go through the builder and get a mortgage at a set rate (though some additional restrictions and qualifications may apply).

One area that buyers love when buying a new home is the warranty you receive for problems that may apply after the closing date. When buying a new house you never have the hassle of negotiating price as they are fixed though this can be a negative as well. A 3 day cool off period helps so you may go home and think your buy through and still have time to re-neg on the purchase. 

You will still need a lawyer in the buying process to go through all contracts, conditions and dates.

So overall this type of buy works for many. I find many buy new for the longer closing date so they can continue to save for a larger down payment. But, you also could have the challenge of closing dates being pushed back which could be a pain as you may have limited time restraints to your living conditions before your move-in date or closing dates when you are selling your own home.

Many buyers tend to look at resale as they like to have the little things done like basements finished, fences up and other items you must do for yourself when you buy a new home. Mortgages are done in a different fashion as you must be pre-approved  and you have a limited time for that approval of 3-6 months. You must find and interview agents to find the right fit for what you are looking for and sign a buyers agreement. 

Some love the process of looking at homes some hate this process but with the understanding of what your needs and wants are a good real estate agent will save you time in this process by doing the research for you. Area is an important decision based on your lifestyle it could be decided by schools, transportation and even amenities to meet your needs.  In real estate location is considered to be a key buying factor!

When deciding on what home and price that you are comfortable with, you have many options. of course the easiest is the home move-in ready with no work needed though you tend to pay higher for these locations. There is also the fixer upper that you will get for less but in time you will have to put money into. There is also the most money saving way that is a home that needs tlc even before you move in but in this case you are able to make the home yours to meet all your wants.

Most re-sale homes do not offer a warranty and it is crucial that you do a proper home inspection to find all problems. 

Pricing is completely different in re-sale compared to new as you have the power to negotiate a price depending on the market you can get a home for under asking though at the time of this article negotiating was close to or even over asking rate.

Closing dates tend to be shorter in re-sales, typically 30 - 60 or 90 days. You also have the opportunity to make a conditional offer based on price, condition, or even closing date. Though once a purchase is firm there is no 3 day cooling off period.

Whether you are looking to buy resale or new it is important to speak to both an agent or builder rep to get the greatest understanding of what is best for you.

Give us a call if you have any buying questions ....Carey or Sharon Rosenzweig (416) 818-2600