Is it better to buy a new or a pre-owned house? The answer really depends on you. Many will be charmed by an older home’s yesteryear style, soul and history. Before choosing to buy such a property, you should take the time to think about certain questions to make sure that you are making an informed decision.
Resale Property: 5 Things to Consider When Deciding What Is Best for You
1- Starting Prince
The price of a pre-owned house will, in general, be lower as it is easier to negotiate it. For a new build, the developer will establish a price that is usually much higher than for an older home. The purchase of a new house also comes with its own set of basic expenses, such as for landscaping or the installation of systems (security system, heat pump, etc.). They are equally subject to sales taxes (GST and QST), which is not the case for resale homes.
2- Location
Whether you are buying a new or an older property, location remains a very important concern, because it will dictate the type of neighbourhood environment you will live in. As a general rule, resale homes are found in older neighbourhoods with vegetation that is more mature than in new developments. Depending on your needs, you should likewise look at houses that are near services, grocery stores, transit, parks, schools, etc.
3- Customization
It is obviously much easier to personalize as new house since you can choose the finishes, floor, bathroom materials, kitchen cabinets, etc. By opting for a home that has already been occupied, you will have to live with the previous owner’s tastes and choices, unless you want to invest in renovations.
4- Real Estate Market
When it comes to selling your property down the line, you will probably get a better return on your investment if you improve or renovate an older home instead of a new one as new builds are generally already well equipped and it is harder to increase their value. It is, however, important to note that spending $30,000 does not mean that the property’s value will increase by $30,000.
5- Renovations and Maintenance
In most cases, you should expect to have to renovate an older home; a new house rarely requires major maintenance work for the first dozen or so years. The extent of the renovations needed will obviously depend on the state of the resale property and how well the previous owners maintained it. Ideally, choose a home that was well taken care of and for which the owners have kept a record of their renovations. You will then know when and how work was done.
An Informed Decision
If, after careful consideration, you still fall for a pre-loved home, take steps to protect yourself in the event of latent defects. This will help you avoid unnecessary stress and, especially, additional costs. RE/MAX’s exclusive Integri-T program is a guarantee offered to buyers and sellers who want peace of mind in the event of latent defects. This unique coverage provides financial protection to buyers and sellers in case of a claim.
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Visit remax-quebec.com/en/integri-t/index.rmx for further details.