New Construction vs Resale Homes: Which is Right for You?
When choosing between a new construction home and a resale property, there is no one-size-fits-all answer. Each option has its advantages and drawbacks, and the best choice depends on your needs, budget, and lifestyle. Let’s break it down to help you make an informed decision. Plus, don’t forget to take our quiz at the end to see which option might be the best fit for you!
What Is a New Construction Home?
A new construction home is a property that has never been lived in before. It can either be purchased before construction is completed—allowing for customization—or bought as a move-in-ready home that is newly built but unoccupied.
Pros of Buying a New Construction Home
- Customization Options
- If you purchase before construction is completed, you may have the ability to personalize the layout, finishes, and other design elements to suit your preferences.
- A Fresh Start
- As the first owner, you’ll be the only one to have lived in the home, giving you a blank slate to create your own memories.
- Warranty Coverage
- In Alberta, the Alberta New Home Warranty Program provides coverage for new homes, ranging from 1 to 10 years depending on the specific feature. More details can be found here.
- Modern Design & Finishes
- New homes are built with contemporary designs, energy-efficient materials, and the latest technology.
Cons of Buying a New Construction Home
- Higher Costs
- The price of a new home is often higher due to construction costs, materials, and labor. Additional customization or upgrades can also significantly increase the total cost.
- Longer Wait Times
- If the home is not yet built, construction timelines can range from several months to a couple of years. Delays due to weather or supply chain issues are also possible.
- Potential Warranty Issues
- While warranties offer protection, dealing with repairs and following up with builders can be time-consuming. Choosing a reputable builder is crucial to ensuring any issues are addressed promptly.
- Additional Design & Décor Effort
- Unlike resale homes that may already have design elements in place, new homes often require extra time and investment to paint, furnish, and landscape.
Should You Hire a Realtor for a New Construction Home?
Absolutely! Our experienced realtors can guide you through the contract terms and conditions, ensuring your best interests are represented. We also recommend arranging a New Home Inspection, which provides a baseline for the home’s condition and ensures any necessary repairs are addressed under warranty.
What Is a Resale Home?
A resale home is an existing property that has been previously owned and lived in.
Pros of Buying a Resale Home
- Lower Initial Costs
- Many resale homes come fully finished, including features such as a landscaped yard or a developed basement—amenities that often cost extra in new builds.
- Move-In Ready
- If you're looking for a home that is immediately livable without additional work, many resale properties offer a turnkey solution.
- Existing Upgrades
- Previous owners may have added valuable upgrades such as air conditioning, custom blinds, or a finished garage, which could save you money in the long run.
- Established Neighborhoods
- Unlike new developments, which may still be under construction, resale homes are often located in well-developed areas with schools, shopping centers, parks, and public transit already in place.
Cons of Buying a Resale Home
- Limited Customization
- Unlike new builds, resale homes come with existing layouts and finishes. While renovations are possible, they require additional investment.
- Potential Maintenance & Repairs
- Older homes may need modernization, and appliances or major systems (such as the roof or furnace) may be nearing the end of their lifespan.
- No Warranty Protection
- Unlike new builds, resale homes do not come with a builder’s warranty, meaning any repairs or maintenance costs are the buyer’s responsibility.
- Home History
- Every resale home has a history. While some homes have been well-maintained, others may have hidden issues. A thorough home inspection is essential before purchasing.
Which One Is Right for You?
Both new construction and resale homes offer unique benefits and challenges. The right choice depends on your personal priorities, budget, and long-term goals.
Still unsure? Take our short quiz below to help you decide!
| Questions | ||
|---|---|---|
| Do you agree or disagree with the following statements? | AGREE | DISAGREE |
| 1. I would be fine with replacing an old-model fridge right after moving in | ||
| 2. I like knowing my house has character; for example, pencil lines on the wall measuring the previous kids’ height doesn’t bother me | ||
| 3. We want to move sooner rather than later, we can’t wait longer than 2-3 months | ||
| 4. I like seeing how other people have decorated their home and am fine with re-painting certain areas if needed | ||
| 5. Outside noise bothers me, I find it hard to ignore | ||
| 6. Having a school and amenities close by matters to my family | ||
| 7. I like doing home projects or planning renovations for certain areas of my house |
If you had the most “AGREE” answers: A Resale Home will be great for you!
If you had the most “DISAGREE” answers: A New Construction Home, or a Turn-Key Ready Resale Home, are the best options for you!
Still not sure which option is right for you?
Chat with a Solutions Agent now!
