Why we chose a new house over resale

We lived in a two-bedroom, one-bathroom starter home for nearly eight years, but we felt like we needed more space to support our growing family. 

We looked at resale homes listed on MLS and then checked out show homes that were being built in the new subdivisions.  In the end, we decided that building a new house was a better option for us than buying an existing home.  Here’s why:

Customized.  Buyers can visit dozens of listings to try and find the perfect house.  Building a new house gives buyers the ability to customize their home to suit their needs.  We added features like custom counter-tops and upgraded flooring for an extra few thousand dollars.  We also knocked $5,000 off the price by removing a feature wall from the plans.  As a bonus, we got to pick out our lot in the new subdivision.

Affordable.  We heard horror stories of buyers going way over budget with a new house, but our builder quoted us a base price and we worked with their team to stick to our budget.  There were a few existing houses on the market that met our needs, but because of their location they were expensive compared to building a new house from scratch.  A newly renovated resale house that caught our eye was listed for $50,000 more than what we paid for our new house.  An older home would also require extensive renovations to suit our tastes, and who knows what we might find behind the walls.

Energy Efficient.  A new house gives you the latest in energy saving appliances and building code standards.  Our new house is twice the size of our old one, yet our utility bills are 10 per cent less than before.  The energy and environmentally efficient features included; high efficiency direct vented furnace, high efficiency power vented hot water tank, double pane low E windows, insulated overhead garage door, and energy efficient spacing on all framing.  Our house also came with seven brand-new ENERGY STAR appliances.

Protected.  Here in Alberta, new houses are protected by the new home warranty program which offers deposit protection, builder performance protection, structural integrity and first year warranty protection to home buyers as well as mediation, conciliation and arbitration procedures.

There are some drawbacks to building a new house.  Most subdivisions are out in the sticks, leaving you with a long commute to work, and a good distance away from schools and grocery stores.  This wasn't a factor for us because we live in a smaller city and the new location was only 10 minutes away from our old place.

New areas will likely be under construction for a few years, which can be a nuisance.  Many people have also experienced issues with their homebuilder, from problems with the warranty, to projects exceeding budget or taking longer than promised to complete.

Building a new house was an enjoyable process for us, aside from a few minor issues along the way.  We took possession of our home nearly four months ago and couldn’t be happier with our decision. 

Also Read:

Is home ownership really a smart investment?

They walked away from house deal and were sued

Robb Engen is half of the Boomer & Echo personal finance blogging team with his mother, a former financial advisor.  Reach him at robbengen@gmail.com