Resale and Builder New - Homes and Condos in MississaugaChoosing between a resale or a builder new property can sometimes be a hard decision for a buyer, it typically comes down to what suits them best.
Before jumping into the options available on the market, we will cover some key points. Below is some information regarding the differences between resale and builder new properties in Mississauga, what needs to be taken into consideration and the closing costs associated with builder new homes and condos.
In Mississauga, due to the shortage of available space, the total amount of new subdivisions being built are minimal, especially compared to the development of pre-construction condos around City Centre (Square One area). The future is high rise condos in the Square One area, this will continue to be the trend for a few years to come.
Resale properties are existing homes or condos already pre-owned by others. The typical age for Mississauga resale homes and condos vary, generally speaking Mississauga homes and condos are approximately in the range of 5 to 25+ years in age.
Builder new homes are brand new properties with no previous owners. Typically, the buyer will be the first owner of the property when buying a builder new home or condo. A builder new property can be purchased during the pre-construction stage, while the construction is taking place or upon completion of the property.
If a builder new home or condo is bought during the pre-construction phase, then the buyer will be able to select their preferred layout, finishes and upgrades, fixtures and more. The buyer can pick and choose for what will be the most suitable for them.
What is the difference between resale and builder new?
In a builder new home or condo the design, finishes and layout are more up to date with the current trends. The builder new properties have contemporary looks and finishes in comparison to a some of the resale homes in the market. If you purchase a builder new home or condo during the pre-construction phase then you are also able to choose from a variety of layouts, finishes, upgrades and fixtures. Builder new properties are also more energy efficient than some of the homes or condos in the resale market. When buying a builder new property, it is under warranty coverage enforced by Tarion (please visit www.Tarion.com for more information).
However, the buyer will typically pay a higher price for a builder new property when comparing similar inventory in the resale market. Typically, builder new homes have a delivery date in the future (2 to 3 years) and thus the price is higher compared to the current market value. During the pre-construction and construction phases the buyer will be buying off visuals such as floor-plans, site map, model suites and drawings (of the amenities, building, future developments etc.). When buying a builder new home in most instances the CAC (central air conditioning) unit and appliances (fridge, stove, microwave/hood-range, dishwasher, washer and dryer) are not included, resulting in increased expenses for the buyer. Lastly, there are a few more closing costs that are associated with builder new properties.
A few additional closing costs associated with builder new homes or condos:
- Tarion registration
- Land Transfer Tax
- Legal fees and disbursements
- Legal fees regarding mortgages arranged with the builder
- Condominium reserve fund for condos
- HST on appliances and extras
- HST on the property price (learn more)
- Installation charges for water and hydro
- Property tax, utilities and condo fees
- Levy charges (vendor lawyer insurance, school and education)
- Builder upgrades, fixtures and finishes
- Builder construction hold-back
Contact Pratham Kalia to purchase resale or builder new properties
If you are thinking of buying a builder new property in Mississauga or the surrounding area, contact a professional such as Pratham Kalia who works for YOU, not the builder. Pratham has in-depth market knowledge and knows reputed builders to help you make the right decision. With the interests of his clients in mind, Pratham completes proper due diligence and helps his clients with a smooth and easy home buying process and home closing.
Pratham Kalia has successfully helped many of his buyer clients purchase homes and condos, both in the resale and builder new market. Backed with a strong team of professionals such as; lawyers, inspectors, mortgage agents/brokers, contractors and more.
Contact Pratham Kalia today to learn more and ask about the FREE exclusive seminar regarding First Time Home Buying or Buying a Builder New Home or Condo.