The pros and cons of buying a newly built home
Purchasing a brand-new home is always an exciting prospect. And, as many new home development projects started in 2022-23 reach completion this year, buying a newly built home is likely top-of-mind for many Calgary buyers in 2025.
Yet, while the chance to start afresh in a new home equipped with the latest design technologies and new home warranty coverage has undeniable allure, like any significant decision, it’s essential to consider all the available information and determine whether it’s the right choice for you.
In this month’s blog, we’ve outlined the pros and cons of buying new and highlighted an alternative option if you’re keen to get the best of both worlds.
Nothing like that new home feel
There’s no question that nothing beats the joy of moving into a new home that’s truly your own, ready to be filled with memories.
Buying new means you can select or build a home that’s exactly what you or your family wants or needs and customize design features to your tastes and preferences.
But that’s not all. Here are some of the other advantages of buying new:
- Modern design and finishings
- New homes feature contemporary designs, open floor plans and trending finishes that enhance modern lifestyle and resale appeal.
- Energy Efficiency
- Modern building codes require new homes to meet higher energy efficiency standards. Features like better insulation, energy-efficient windows, potential options for solar panels, and high-efficiency appliances can reduce utility costs and environmental impact.
- Low Maintenance Costs
- From a brand-new roof and appliances to your HVAC system, maintenance costs are minimal in the early years of new home ownership.
- Warranty Protection
- New homes come with builder warranties that cover structural defects, major building systems, and even appliances for a specified period. These warranties provide a significant financial safety net and peace of mind.
- Smart Home Technology
- Many home builders outfit their homes with the latest smart home features, including programmable thermostats, security systems, and energy monitoring tools that make everyday life easier.
The grass isn’t all greener
Despite the many advantages, buying a brand-new home isn’t without considerations and compromises. First, brand-new homes typically come with a premium price tag, where buyers pay more simply for the prestige of buying new.
Secondly, even if you’re not discerning about the home builder you use, the neighbourhood you choose, and what is included in your contract, many of the aforementioned pluses of buying a new home can have their downsides.
Here are some essential items to consider if you’re thinking of buying new:
- Unproven systems & Warranty Issues
- While new systems and appliances are under warranty, plumbing, electrical and HVAC systems have not been tested through regular use. Issues may arise after the warranty expires, or builders may deem specific problems are not covered by the under warranty, leaving homeowners with unexpected costs.
- Quality of Construction
- A new home’s walls may look shiny and new, but it’s hard to see the quality behind the walls. Low barriers to entry for boutique home builders in Calgary and the desire to produce low-cost homes can lead to quality control issues. When buying new, it’s essential to do your homework and find a builder with a quality reputation that you trust.
- Construction Delays
- If you’re purchasing a home still under construction, delays due to weather, supply chain issues, or labour shortages are not uncommon and can postpone your move-in date.
- Neighbourhood Development
- In new developments, neighbourhoods may take years to mature fully. Early buyers may have to deal with ongoing construction and incomplete amenities, such as a lack of schools or sparse landscaping.
- Additional Expenses
- New homes may not include essential features like landscaping, window treatments, or additional appliances such as washer/dryer and air conditioning. These extra costs can add up quickly.
- Limited Character or Modern Design Features that Become Outdated
- New homes may lack the charm and character of older properties. They can sometimes feel uniform, especially in planned developments with similar designs. Additionally, many new design trends fall out of style quickly, adversely affecting resale value. So, opting for more timeless design features may be worth considering.
Get the best of both worlds
Suppose you want to reap the benefits of a design-forward home without the extra costs. By buying a home that is just a few years old, you can save on the premium price, shop for a property with modern design features and a layout that appeals to your taste, and sidestep many of the downsides of buying brand new.
In newer homes on the resale market, heating and mechanical systems have been used regularly, so any initial issues have probably already been repaired. Any underlying damage would be more visible and more likely to be revealed during a home inspection.
You can also shop for a home where the previous owners have already paid for and installed upgrades such as air conditioning, window coverings and landscaping.
Plus, you’ll be able to move into a new neighbourhood with finished construction and more amenities, along with green spaces, trees, and foliage that have had time to grow.
Summary
Buying a brand-new home offers many benefits, from modern designs to lower maintenance costs. However, the higher price tag and potential for hidden challenges mean it’s not the ideal choice for everyone.
Consider your priorities: Do you value energy efficiency and customizability, or do you prefer a resale home's charm and established character? By carefully weighing the pros and cons, you can make an informed decision that aligns with your lifestyle and financial goals.
Don't hesitate to reach out if you’re ready to explore new construction homes or need guidance navigating the process.
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