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Did you buy your house pre-construction or resale?
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Author:  RMX [ Mon May 05, 2014 10:45 pm ]
Post subject:  Did you buy your house pre-construction or resale?
Just wondering if you bought pre-construction or a resale, and what factors went into making your choice?



I bought pre construction.

1. I'm picky... so I wanted everything (cabinets, stairs, floors, tiles, upgrades, etc) to be my own choice.

2. I have to wait 10 months for my house to be finished (5 more months to go) but I think by buying pre-construction I ended up saving a ton of money, and will make a lot more if I ever decide to sell.
Author:  EWM ASN [ Tue May 06, 2014 8:59 am ]
Post subject:  Re: Did you buy your house pre-construction or resale?
Hi RMX,

I bought pre-construction for the exact same reasons:

1. I wanted finishes to be of my choice
2. Lower risk of catastrophic repairs needed, anything that does need repairs is covered under warranty
3. House value will have increased by the time you move in

I was waiting over 1 year to move into my house. I purchased in January 2013, and finally moved in February 2014. The value went up from what I originally purchased the house at. Naturally the builder knew this as well, and I'm sure the house was marked up with the closing date value in mind. (Builder incorporated the increase of the house based on the projected value, and not current value... Slightly upsets me, but whatever).

After watching horror stories with some of the television shows in regards to home renovations (ie: Love it or List it, Property Brothers, etc) I could not imagine my purchase of a older house, doing renovations (living through them), and finding problems, watching your hard earned cash walk away from you on repairs that you wouldn't have to do if you bought new.
Author:  LEONARKY [ Tue May 06, 2014 9:33 am ]
Post subject:  Re: Did you buy your house pre-construction or resale?
Pre-Construction, but I cannot vote yet haha
Author:  munchito [ Tue May 06, 2014 9:56 am ]
Post subject:  Re: Did you buy your house pre-construction or resale?
If you add up all the extras you have to buy with a pre-construction, it's not really cheaper than a resale.

Also, yes, the past decade has been great for house price appreciation while you wait, but that isn't a bankable advantage you can rely on.
Author:  Fred D [ Tue May 06, 2014 10:14 am ]
Post subject:  Re: Did you buy your house pre-construction or resale?
Correct -- it has to be a more detailed analysis on a case by case basis.
Think of these:
Air Conditioning $2500
Window Coverings $1000 to $4000 (Blinds, drapes or shutters?)
Appliances ($2000 - 10000) depending on what you like and what the builder may have already included)
Tarion enrolment fee $1200
Closing cost increase by builder (normally capped by lawyer at $1000-2000)
Extra builder charges for driveway paving, tree planting, utility hookup ($1500-2000)
Garage door openers $200-1000 depending on 1 or 2 doors, installing yourself or having it done)
Fence/Gates $2000-$3000

Then optional upgrades and decor changes
Light fixtures
Paint
Counters
Flooring
trim
crown
potlights
undercabinet lights
backsplash
Basement

and so much more...

This is why you can't make a general statement about "new" vs "Resale" and which one is cheaper - you have to compare specific examples house to house to determine that. Sometimes there's a swing of tens of thousands either way.

If you're against reno work, then I agree, going the builder route is the only way you'll likely get exactly what you want in terms of colour selections in every room of the house - I've been through both a few times and would do either again for the right home for us. (That's my 'Fred the neighbour' answer, AND 'Fred the realtor' answer) :)
Author:  NewInTown [ Tue May 06, 2014 10:19 am ]
Post subject:  Re: Did you buy your house pre-construction or resale?
Sometimes I get frustrated with the house and wish this was different or that was different or if there's a problem, I throw my hands in the air and tell (or more like yell) my husband "WE SHOULD HAVE BOUGHT BRAND NEW, DANGNABIT!!!!" and then he reminds that brand new comes with its own headaches and problems and issues. So then I shut up, look out my window and admire my corner lot.
Author:  bremer [ Tue May 06, 2014 10:32 am ]
Post subject:  Re: Did you buy your house pre-construction or resale?
I bought my home resale, it was 5 years old. Just enough time for the previous owner to fix all the crap Mattamy screwed up, yet still be new enough that I didn’t need to worry about any major repairs. I also got a few upgrades the owner had done, at no real increase in value (painted the house, built a proper deck, landscaping) It’s the zero headache approach.

I could never buy a new Mattamy, simply because the quality is so poor. I’d have to wait two years to move in to a home that will need another 1-2 years of repairs to the stuff that wasn’t done right to begin with. On top of that, I have to pay through the nose for upgrades that might look nice, but are probably of questionable quality and not likely to be installed properly.

It’s just so much easier to go looking for a house that has everything I want already, and I can see right away if it’s done correctly.
Author:  Norts999 [ Tue May 06, 2014 11:34 am ]
Post subject:  Re: Did you buy your house pre-construction or resale?
If you buy resale you can scope out who your neighbors will be beforehand.
Y'know, in case they are the peeing boy statue types.
Author:  Princess Beata [ Tue May 06, 2014 11:54 am ]
Post subject:  Re: Did you buy your house pre-construction or resale?
Hows this for new vs resale. I wouldn't be able to afford my home if I bought it resale the second I got the keys. Our neighbour sold theirs as soon as they moved in and we were priced out of it by $100,000 if we were buying a house then. Luckily we saved $100,000 by going through mattamy as opposed to through an agent and an existing home. Right before we bought through mattamy, an agent was showing us homes, and for what we paid for a 2,600 sq ft home fully loaded and brick, agents were showing us 1800 sq ft siding homes with 8 foot ceilings and all carpet.
Author:  Norts999 [ Tue May 06, 2014 11:58 am ]
Post subject:  Re: Did you buy your house pre-construction or resale?
Princess Beata wrote:
Hows this for new vs resale. I wouldn't be able to afford my home if I bought it resale the second I got the keys. Our neighbour sold theirs as soon as they moved in and we were priced out of it by $100,000 if we were buying a house then. Luckily we saved $100,000 by going through mattamy as opposed to through an agent and an existing home. Right before we bought through mattamy, an agent was showing us homes, and for what we paid for a 2,600 sq ft home fully loaded and brick, agents were showing us 1800 sq ft siding homes with 8 foot ceilings and all carpet.

How much have you spent on the stuff Fred mentioned since getting the keys?
Now put a price on your time for dealing with all that sh*t.
Author:  bremer [ Tue May 06, 2014 12:29 pm ]
Post subject:  Re: Did you buy your house pre-construction or resale?
^^ I never thought of that. Something’s wrong when a first time buyer can’t save fast enough to keep pace with housing inflation. Our kids are so screwed.
Author:  bremer [ Tue May 06, 2014 1:10 pm ]
Post subject:  Re: Did you buy your house pre-construction or resale?
Did you actually save money without a house or a kid? I tried to save, but it was hard to find room after my ungodly entertainment expenses.

In the 4 years after I graduated college, I managed to save a whopping $5,000 for a down payment, for which I was mighty proud.

Now I look back and I realize.... I was working full time, living at home, and paying no rent. I saved an average of $83.00 a month… and I considered this a proud accomplishment.
Author:  NewInTown [ Tue May 06, 2014 1:38 pm ]
Post subject:  Re: Did you buy your house pre-construction or resale?
We didn't save anything. We're bums.
Author:  bremer [ Tue May 06, 2014 1:48 pm ]
Post subject:  Re: Did you buy your house pre-construction or resale?
I wish I’d had that discipline.

I bought a brand new fully loaded Honda Prelude, filled it with thousands in stereo equipment, and drove around looking for weed 24/7.

I don’t understand how my parents had no problem with this. I’ll change the locks if I ever see my kids freeloading off me like that.
Author:  RMX [ Tue May 06, 2014 4:00 pm ]
Post subject:  Re: Did you buy your house pre-construction or resale?
Norts999 wrote:
Princess Beata wrote:
Hows this for new vs resale. I wouldn't be able to afford my home if I bought it resale the second I got the keys. Our neighbour sold theirs as soon as they moved in and we were priced out of it by $100,000 if we were buying a house then. Luckily we saved $100,000 by going through mattamy as opposed to through an agent and an existing home. Right before we bought through mattamy, an agent was showing us homes, and for what we paid for a 2,600 sq ft home fully loaded and brick, agents were showing us 1800 sq ft siding homes with 8 foot ceilings and all carpet.

How much have you spent on the stuff Fred mentioned since getting the keys?
Now put a price on your time for dealing with all that sh*t.


Probably no where close to the $100,000 she saved.

I might be wrong here, but I doubt many people spend more than 20% of that amount on upgrades.
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