According to the Canadian Home Builder's Association (CHBA), approximately 25 percent of homes purchased annually are new construction. While homeowners may live comfortably in a new home or in a resale of an existing home, new construction has some hidden benefits for homeowners that may be easily overlooked.
The Hidden Benefits of New Construction Homes
Buying resale is not the only option. Many Canadian homeowners are thinking of going with new construction for their next home purchase, be it in the city or the country. Learn more about the hidden benefits of new construction today.
Score Incentives on New Home Construction
Get money back for homes built to achieve improved energy-efficiency. According to Save On Energy, there are new home construction incentives in Ontario, and homeowners who achieve certain performance ratings may eligible for $500 or $1,000 dollars, dependent on a home's score. Small prescriptive measures, such an all off switch or an ENERGY START® Certified Central Air Conditioner (CAC), are listed to help prospective homeowners and builders choose which options work for their new construction and their budget. New Canadian programs may pay homeowners for specific new construction measures taken to reduce energy costs.
Built to Suit Your Life
Buyers of new construction can select custom upgrades and preferred layouts that support their lifestyle. Why waste time and energy tearing down walls and trying to force an open floor plan on a tight, conventional resale home? Get a move-in ready home that does not require renovations.
An experienced real estate agent can provide more details on the standard features and upgrades available in a new home. For prospective homeowners on a budget, remember to allow room in the budget for upgrades. New construction models showroom models available generally have upgrades throughout and a homeowner may want to know what is and what is not included in a standard new construction home.
Improved Energy Efficiency and Performance
Older resale homes may need to be retrofitted as previous electrical systems may be outdated and upgrades may be needed to maintain and repair the system. The same goes for improving the energy-efficiency of a home. Homeowners can add upgrades to older homes after a resale purchase but new construction can include many of the latest green energy systems and upgrades throughout a home. The stringent building codes required and quality construction available today can result in better performing systems in a home and more, as new construction has to meet high standards for safety, performance and energy efficiency. Homeowners who buy new construction can enjoy long-term satisfaction from efficient and high-performing systems and the latest technology.
Fewer Maintenance Issues
New construction is generally covered under warranty. While homeowners may live many years without worrying about making a significant repair, if repairs are needed a homeowner can use their warranty to reduce any out-of-pocket costs. Many homeowners of resale properties do not have this option, and it can be expensive to repair roofing, heating systems or foundation issues in older homes. Professional Canadian home builders may offer an after-sales service program in addition to the warranties offered.
The Hidden Disadvantages of New Construction Homes
Many home buyers fall in love with the idea of a new construction home before they know what to realistically expect from this type of purchase. Knowing what is entailed in a new construction home is important. This enables a home buyer to develop realistic expectations, which can help the home buyer purchase the right kind of home for their needs.
Developments Tend To Be Construction Zones
Many new construction homes are not built individually but are built on development sites in large groups. These developments tend to spring up quickly, over the course of a few years.
During that time, the development is a construction zone, with many new homes springing up on a regular basis. Although the development process may be a worthwhile endeavor when all is said and done, some home buyers shy away from developments because they would prefer not to live in a construction zone.
The Cost of New Construction is Higher
New construction homes cost more than pre-existing homes, sometimes as much as 20% more. Some home buyers feel this extra cost is worth it because new homes often lack the maintenance problems of pre-existing homes. In addition, new construction homes often have improved energy efficiency over pre-existing homes. Home buyers must do a cost-benefit analysis to decide whether or not a new construction home is right for them.
Lot Size in New Construction is Smaller
Often new homes are built for economy, so their lot sizes tend to be smaller and more easily managed when compared to older homes. Some new homeowners dream of living on a large lot with a lot of space. If this is important to them, home buyers must either buy a property that is not a part of a development, which can be very costly, or they must purchase a pre-existing home with a large lot.
Craftsman Details Are No Longer Present
It's well known that older homes tend to have craftsman-like details that can make the home more attractive and valuable. These craftsman details are not often included in new construction homes. Some higher end new-construction homes will have built-in features like window seats, a built-in hutch and custom cabinets, but this is not especially common anymore.
Craftsman details are often too expensive for many home buyers to include these features in their new construction homes. Home buyers who want to craftsman details must either pay a lot of money or must buy a pre-existing home with these details already included in the house.
There's a Limit to Home Customization
Many new home buyers imagine that they will be able to tailor their new construction home to their needs and their specifications. This is not often the case. Although there is a small amount of customization that can be included in new construction homes, as a general rule, many construction outfits will limit the amount of customization that a customer can request.
The customer may, for example, be given their choice of only four different countertop materials, and only three types of flooring. This limit of customization keeps the new construction home economical, but also reduces some of the charm of buying a new construction home.
For more information about how a new construction home differs from a pre-existing home, and for help deciding which type is right for you, contact a real estate professional in your area. Your real estate professional can help you get started on your search for a home.
Interested in New Construction?
As of the latest information on Canadian homeownership, 69 percent of Canadians own their own home and 4 out of every 5 Millennials are looking to buy. New residential construction expenditures, such as mortgage insurance fees and land transfer fees, may be part of closing costs for those closing on new construction. However, this does not dampen the enthusiasm for buying new. If you're buying in Calgary's City Centre or anywhere else, speak to a local real estate agent to learn more about new construction today.