Resale, New Build or Assignment: Which Home Is Right for You?
There are a lot of mixed messages about real estate and new home construction. Here’s a simple way to think about which type of home makes sense for you.
First-time buyer with 20% down: consider resale
If you’re a first-time buyer and you already have a 20% down payment, a resale home (a previously owned home) is often the way to go:
- You can move in right away
- You avoid mortgage default insurance with 20% down
- You can see exactly what you’re buying
First-time buyer with less than 20% and a longer timeline: consider a new build
If you don’t have 20% but you have a little more time, a new build or assignment may be worth a look:
- Deposits are often paid in stages, giving you time to save
- You can sometimes find good deals from builders or on assignment sales
- You get a brand-new home when it’s finished
An assignment is when the original buyer of a pre-construction home sells their contract to someone else before the home is completed.
Investors: look for value-add resale
The Right Choice team’s investor advice is different: don’t buy pre-construction for investment. Instead, look for:
- A used property with a bigger lot
- Opportunities to improve it through renovations
- Ways to add units, like a basement or garden suite
- Positive cash flow
Land is king
A recent sale in Wainfleet proved it. The house needed work inside and out, but it sat on a premium lot, and it still got multiple offers and sold over asking. Never underestimate the value of a great piece of land.
Use your home inspection wisely
The team also had two conditional deals firm up after home inspections. In one, the inspection turned up items that let the buyers negotiate a meaningful price reduction. Inspections give you the information you need, especially if you didn’t know everything when you agreed on a price.
Not sure which path fits?
We’ll help you compare resale, new construction and assignments based on your budget and goals.
Call 289-276-1716 or browse new homes.
