Becoming a homeowner is one of the biggest financial decisions you can make, so naturally, it requires a lot of thought and planning before you’re ready to buy. But do you know what your best home option is? The first big decision you’ll need to make is if you should go with a new build or resale home. There are benefits to both, but there are also some disadvantages to consider as well. If this is something you still need to figure out, you’re in the right place.

 In this article, you’ll learn about some of the most common and convincing reasons why people choose a new home build or buy an existing home on the market. After you’ve weighed the pros and cons of each home option, you can then look further into the one that stands out as the type of home you want to live in.

Pros of Buying a Resale Home

The biggest benefit of buying a resale home is the price will be lower. Homeowners who sell these homes typically do not want to deal with conducting the repairs themselves. This is a great way to find a deal in your local area.

Many times, any repairs needed are minor and can be made quickly. However, you need to make sure to get a great home inspector who is going to conduct a thorough inspection before placing an offer on a home. It could be a financial disaster if you buy a house and it needs multiple areas repaired without you knowing it. 

Move-In Ready

Rather than waiting for your new home to be built from the ground up, which can take over a year until possession day, you can move into a resale home as soon as the closing date is set and the current owners have moved out.

This is a convenient option if you don’t have the time to wait or simply don’t want to! If you see a resale home that has most or all of the features you’re looking for anyway, being able to enjoy homeownership right away is a good trade-off. 

More Affordable Options

The home-buying journey looks different for everyone. Some first-time home buyers are fine with a starter home at a lower price, knowing they’ll outgrow it or want to move in the next 5-10 years. When you look at resale homes, you’ll notice that there are a lot of affordable options. The price largely depends on when it was built, the style, and its location. 

For example, you could find yourself saving 50-100K buying a resale home that’s around 20 years old and in an established neighbourhood. There will be no construction zones to worry about, and if you want to make a minor renovation, the money you save will more than cover the cost while also adding value to your home.

Fewer Decisions To Make

When you buy a new home, it can be overwhelming to try and find the right floor plan and make sure it’s available in the community you want to live in. Then, you’ll have to choose all the features and finishes.

That is simply not the case with a resale home because what you see is what you get. If you’re happy with the existing features and customization isn’t important to you, buying an older home is the way to go. There’s less to worry about and you can enjoy home ownership right away. 

Landscaping Is Already Complete

This benefit is one that is often overlooked. When you buy a resale home, you won’t need to finish the landscaping yourself like you would when building a new home. Older homes also tend to have bigger backyards so if you like spending time outside on the deck or gardening, having a nice space you can easily add to is a big perk. 

Fencing is another important landscaping component and something usually already taken care of with a resale property. You won’t need to meet with your neighbour and work out a fence you both like and need to pay for. 

Cons Of Buying A Resale Home

Buying a resale property does have its advantages, but there are also some drawbacks to be aware of. These mostly relate to the age of the home and its design limitations. 

Outdated Floor Plans

When you opt for an older home, you’re also inheriting the design trends in the decade it was built. If it was before the time of open concept floor plans, you could find yourself having to live with more walls and closed spaces than you’d like, even if this price is nice. 

Eventually, you’ll probably want to renovate some spaces and add more modern features to your home, and that cost adds up fast.

Costly Renovations

Speaking of renovations, when you buy a seemingly more affordable resale home with the plans to renovate it to your liking, your initial cost savings can disappear pretty quickly depending on what you update. For a similar price, you could build or buy a brand-new home with all the features you want without your living space becoming a construction zone.

No Home Warranty

Unless the home you’re looking at is only a few years old, it’s likely not going to have a warranty anymore. That means if anything goes wrong, you’ll be on the hook to pay for it.

When you get a home inspection, they’ll point out anything they can see issues with like a cracked foundation or mould but it’s important to think about what could happen after you move in. Things like old wiring and plumbing may pass inspection now but could prove costly down the road if they malfunction. 

Prepare For Unexpected Costs

With older homes, you should always have a reserve fund for issues that pop up. A broken furnace or an old roof that has a leak will not be cheap. And these are things you’ll need to take care of right away. Of course, issues can pop up in any type of home, but it’s more common to find in resale homes because they have older features and appliances. 

Pros Of Buying A Brand-New Home

Now that you’ve spent some time considering the pros and cons of resale homes, let’s look at the benefits of buying a new home and getting what you want from day one.

Your Investment Is Protected By A Warranty

Buying a new home is often more expensive than a resale, but with that higher price comes greater peace of mind. All new homes built in Alberta are covered by a mandatory warranty.

Another advantage of choosing this option? If you are the type of person who is constantly busy, buying a home in need of repair may not be your best bet. Buying a new home means you will not have to worry about major repairs for many years.

Working with an experienced home builder is a fun process for many people. You are able to design your home all the way through, and it feels like home as soon as you move in. When buying a home in need of repair, it may feel like years before you are able to feel like the place is truly home.

New Communities Are Great For Home Values

As a general rule, new homes are built in growing areas that many people want to move to. These new communities are constantly growing with new phases and amenities being added.

The quality of life is high in these quiet, safe and conveniently located areas. You’ll find most of these newer community developments on the outskirts of town but they’re built close to major roadways so you’ll be connected to the rest of the city with a reasonable commute.

If you buy or build a home in a growing area, you’ll also be able to take advantage of the price appreciation on homes that goes along with the growth of the community. This is why when you build a new home, it’s a great idea to pick a community in its early stages of development. You can buy your home at the lowest price and watch it climb in value as new amenities are added and your community becomes a popular place to live.

A Secondary Suite Can Help Pay Your Mortgage

If you’re fine with the space you have on the main and upper floors, and like the idea of someone else paying for a good portion of your mortgage, look for a new home with a secondary suite. You can easily add one to many new home models as well if you’re building from the group up. Another option is keeping the basement space and building a garage suite.

These new suites are popular amongst renters and you’ll be able to find a reliable, long-term renter to move in when you do!

Just imagine… You get the brand-new home you’ve been dreaming of and can even splurge for more space and better features because someone is helping with your mortgage payment. Secondary or garage suites can rent for anywhere from $1,000 – 1,500 a month so if your mortgage is $2,500 a month, think how much you can save and put towards other things.

Energy Efficient Cost Savings

New homes are built with the best and most energy-efficient materials. The same goes for smart home features and appliances that many builders incorporate into their builds. While you’re making eco-friendly choices to heat and cool your home or do the laundry, you’ll also be cutting down on energy costs that will add up. Even a savings of $100 a month adds up to $1,200 a year – that’s money you could be spending on a vacation instead!

Minimal Home Maintenance

No surprise here, but when you buy a brand-new home you won’t have much maintenance to worry about other than seasonal tasks to keep on top of things. You’re the first person to live in the home so if you take care of it, you’ll have less to worry about for longer.

The Ability To Customize Your Home

If you value personalization and want to be in charge of deciding what features to include in your home, building new is the way to go. This is simply something you aren’t able to do with a resale home.

This is one of the main reasons people want to buy a new home instead. You can choose everything from the flooring and cabinets to the exact layout of your home.

Some builders offer more customization options than others so look around to find the right match for your needs. While it may increase the price of your home if you want premium features and upgrades you can get everything on your list. It also means you don’t have to settle for what’s normally included.

Cons Of Buying A Brand-New Home

While there are plenty of attractive reasons for building a new home, there are also some common disadvantages you should consider. 

Constant Construction Around You

If you are buying a brand-new home in a new community, you could be living around construction for quite a while. Your home will appreciate in value if you’re one of the first to build in a new community but the trade-off is learning to live with the noise until your neighbourhood is completed. You’ll need to decide if the inconvenience is worth it for you in the long run.

Limited Street Parking

New communities often try to squeeze as much land as they can for lots to build homes on. This means that the roads are narrow and parking spaces fill up. If you have a garage and don’t entertain much, this isn’t a big deal.

However, if you enjoy having people over it could be tough for them to find space to park. They may have to park further down the street and walk. Plus, if you plan on having a tenant, convenient parking is important if they drive and this could deter people from renting your suite.

You’re In Charge Of Landscaping

Your new home will look amazing on the inside! But you will need to be prepared to have a pile of dirt in the front and out back to take care of. Builders often offer landscaping incentives, but generally, it’s not something they will do for you.

Most people hire a landscaping company to do the work and it will take time for your yard to look good. Be prepared for your yard to be a work in progress for a couple of years until you add all the features you want and your new trees and shrubs have time to grow and fill out the space.

Cookie-Cutter Exterior Options

While you can do a lot to customize what your home looks like inside, new communities have certain rules that limit what colours or styles you can choose for the exterior. This is done in an effort to create a cohesive look from street to street, but it also means your home could look similar to a neighbour’s house. You’ll have to wait until the exterior limitations expire and you can make changes.

Common Resale Home Features Can Cost Extra

You might think a garage would come standard in a new home, but that’s not always the case.

For example, if you’re looking to build a laned home, a garage is not something that’s typically included in the cost. You’ll get a concrete parking pad but will have to pay more for a garage to be built. With resale homes, you can find one with a garage. 

The same thing can be said for the basement. If you want a finished basement to add more living space to your new build home, you’ll need to pay extra for it. It’s something to keep in mind if you have a growing family or want to rent the basement out. If you look for a resale home, you’ll find many with finished basements and at a cheaper price than a basic new starter home without one.

Which Type Of Home Is Right For You?

As you can see, there is a lot to consider when it comes to the type of home that’s right for you. Resale homes are generally more affordable, but there are extra costs to worry about. If you are going to spend money renovating anyway, it’s worth looking closer into your new home options. You can pick all the features you want and while you may pay more upfront, the peace of mind you get from having a warranty is well worth it. 

There are some great advantages to both new and resale homes, so make sure to weigh all your options and you’ll be happy with the home you choose to buy.

Originally published Oct 12, 2017: updated Mar 14, 2023

Author: Mark J.

Writer, occasional film-maker, content editor and cat-herder.