by Kent Braaten
on Tuesday, April 7th, 2020 at 12:00pm.
With the rapid population growth in the past few years, new build homes have been popping up seemingly everywhere here in Saskatoon. And with the recent announcement of the Government of Saskatchewan’s new PST rebate, buying a new construction home is more attractive than ever! Buying a brand new home is slightly different than buying just any home, however; and if you’re considering making that move right now, there are a few things you should know before getting started.
The Pros of Buying New Build Homes
Buying a new build property can come with many attractive benefits for prospective homeowners! First and foremost, many buyers love the idea that they will be the first owners. By starting clean and fresh, they feel they can really put their stamp on the home without worrying about immediate repairs or redecorating that may need to be done after the home has been lived in.
Of course, when buying a new build house, there are often customizable finishes and upgrades buyers will have a say in, as well!
New construction homes will also usually come with a warranty from the builder. This can help to ease the worries of possible issues buyers may encounter in the first couple of years of homeownership.
The Cons of Buying New Build Homes
Of course, just as there are pros to buying a new construction home, there are also some common possible downsides that buyers may encounter. One of the most common of these is usually the reputability of the builder. It is very easy to assume when walking into a new build home that it has been built to code. Unfortunately, though, this is not always the case.
More than once, excited home buyers have fallen in love with a new build home and have started planning their new life in it only to have those dreams fall through when they later encounter insulation issues that drive their heating costs up or plumbing problems that leave them standing in cold water for every shower. Before committing your heart—and your down payment—to a new build house, always be sure to do some research beforehand. If you know anyone who has a home built by the same builder, ask their opinions of their property. And always run a quick Google search to see if any red flags turn up.
Another possible downside buyers may encounter when looking at new build homes for sale is the higher purchase price. Similar to buying a new car versus a used one, you are usually paying for the luxury of being the first owner. But just like buying that new car, the minute you drive off the lot (or, in this case, when the builder does), depreciation starts to happen. Now, this may be fine if you are planning to be living in it for the next little while, but if you are planning on moving again in a few years, be aware that the resale may not be what you paid just a couple of years prior.
Lastly, if you are buying a new home while it is still in the building stage, you may need to be more flexible with your move-in date. While a builder will usually do their best to stick to their deadlines, there may be some unanticipated delays that come up throughout the building process that may have them pushing that back, possibly even more than once. While you will usually be satisfied with the end result from taking the time to deal with these challenges, just be aware that if you are in need of a strict deadline, this may not be the best option for you.
Buying a Brand New Home from a Builder
As a general rule, home builders will usually stick to building a home and will usually get the help of a local Saskatoon real estate agent to facilitate the sale. So, as a home buyer, you may feel already represented, eliminating the need for you to find a buyer’s agent of your own. However, something you may want to be aware of is a possible conflict of interest.
If a REALTOR® is consistently getting the best price possible for the builder, that very builder may be more likely to continue working exclusively with that agent in the future. This means that they may be more invested in protecting them as the seller, rather than working out the best deal possible for you as a buyer.
A buyer’s agent, however, won’t be biased by the promise of consistent future listings. Instead, their only goal will be to protect you and your investment, ensuring that you are getting the best deal possible for you. They will be able to use their industry experience to give you an accurate understanding of how the sales of similar homes have gone in the past, and guidance on what to look for or even some things you may want to ask for when purchasing a new build home. Plus, always a benefit, their services are absolutely free to you as the buyer, so you’re really not paying any extra!
Buying a new construction home can be one of the most rewarding experiences a homeowner can go through, but it can certainly come with some possible challenges. With the help of an experienced, local real estate agent, however, you can minimize the stress of buying new so you and your family can just enjoy the feeling of stepping into your new home without worry!