When buying a new Toronto area home or condo, keep in mind that the representative you are dealing with at the new home site may not be a licensed real estate agent. The new home representative’s best interest usually lies with the builder and not you. In many cases, the builder will not allow your Realtor to protect your interests or help you prepare the agreement.

The builder’s agreements can be very one-sided in favour of the builder. Did you know that many agreements allow the builder to extend closing by 2-3 months twice, and then cancel the agreement if the house still isn’t built?

Your team of experts cannot fully protect you when buying a new home. For example, your lawyer will not be able to force the builder to sell you a house that’s not there yet. Whereas when buying a resale home, your realtor will be able to negotiate the price, and your mortgage expert will be able to arrange the best possible mortgage for you. If you do decide to buy a new home, try not to get confused with terms like “mortgage-paydowns” that are built into the price of the home.

Remember, your home inspector will not be able to inspect a house that’s not built yet and new homes are not always trouble free.

As a new home buyer you may have to spend money on additional expenses like driveways, decks, landscaping, decorating, recreation rooms, air conditioning and fencing. If you want all of the above without having to go through all the hassles a resale home might be the solution for you.

That said, buying a newly constructed home has many benefits. You will be the first owner of the home. You can choose all your finishes including colours and upgrades of anything from wall colour to floor coverings, kitchen cabinets, etc.

The choice is really up to you if you choose resale or new construction. Resale homes are in established areas, the landscaping is mature, the home will be settled, painted, even re-painted a few times. You may have to consider replacement/repair costs to items like the roof, deck, pool, carpet/flooring, décor etc.

We suggest you decide which you would prefer: new or resale and then go from there. Don’t rule out your realtor who can also advise you on new home construction in your area of choice and will usually know which sites work with realtors and which don’t.

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Contact Laurin Jeffrey for more information