Should I buy a new construction or resale home?
Want the short answer that saves time and money? Read this first: New construction wins if you want fewer headaches now; resale wins if you want value and negotiation leverage.
Quick payoff: the question buyers ask
Should I buy a new construction or resale home? That’s the simplest, biggest decision you’ll make in a home purchase. The right choice depends on budget, timeline, risk tolerance, and market conditions. Read the checklist below and you’ll know which way to lean.
Why new construction appeals (pros)
- Move-in new, modern finishes: New layouts, energy-efficient systems, and up-to-date building codes.
- Builder warranty: Structural and major systems often covered for years.
- Customization options: Choose finishes, floor plans, and upgrades early.
- Lower maintenance short-term: New appliances, roof, HVAC — fewer surprises in year one.
The drawbacks of new builds (cons)
- Higher sticker and upgrade costs: Base price often low; upgrades add up fast.
- Longer wait and delayed occupancy: Construction schedules slip.
- Limited negotiation power: Builders sell more on price psychology than flexibility.
- Unproven neighborhood dynamics: Schools, traffic, and resale values may be unknown.
Why resale homes win (pros)
- Price transparency and negotiation leverage: Sellers often accept realistic offers in a soft market.
- Established neighborhoods: Mature trees, proven schools, nearby services.
- Room for inspection-driven repairs: Inspections can reduce price or force fixes.
- Immediate comparables: Easier to predict future value using sold data.
Resale drawbacks (cons)
- Potential hidden maintenance and upgrades: Older roofs, systems, and renovations may be needed.
- Less modern layouts: You might compromise on open-plan or energy efficiency.
- Competition in hot markets: Good resale homes move fast.
How to decide — a straight checklist
- Timeline: Need to move in within 3 months? Favor resale. Can you wait 6–12 months? New construction is viable.
- Budget discipline: Want fixed costs? Resale with inspection gives price control. Want low initial upkeep? New construction reduces short-term maintenance bills.
- Risk tolerance: Accept builder delays and possible site issues? Choose new construction. Prefer known variables and inspection leverage? Choose resale.
- Investment horizon: Plan to live 5+ years in a growth market? Either can work — focus on location and comps.
Action steps — what to do now
- Get a trusted agent who knows both builders and resale markets.
- Run a side-by-side cost comparison: sticker + upgrades + closing costs + estimated maintenance for 5 years.
- Always order a full home inspection for resale. For new builds, review warranty terms and request punch-list documentation.
Tony Sousa has local market data, builder relationships, and negotiation experience to save you time and money. Want a side-by-side cost comparison for a property you like? Contact at tony@sousasells.ca or 416-477-2620. Visit https://www.sousasells.ca for samples of recent deals and market reports.
