Buying a home can be a lengthy, tedious process. You have to decide on the location, size, price, and many other factors. You also need to choose whether you want to purchase a complete home or a pre-construction one.
Pre-construction homes are essentially buildings that are still not completed, but you can buy one and finish it yourself. This raises an important question–which one is cheaper? This article talks about pre-construction homes, their prices, and how they differ from completed houses. If you are considering buying a home, make sure to read until the end for more useful information!
Visit Ballymore Homes to see a great example of homes for sale in Mississauga and get a better sense of the overall state of the market.
Benefits of Pre-Construction Homes
As mentioned in the introduction, pre-construction homes are buildings that are still in the process of being made. It might take them years to finish. This does not necessarily mean that you are buying a new house. It can also be a condo in an unfinished building.
Buying a pre-construction home has several benefits. We are going to help you better understand why a pre-construction home might be a good investment for you. Here are some of their pros:
1. The Value
Since your home is not entirely built once you purchase it, the value is not going to reach its full potential. As you start investing and customizing your home, its value is guaranteed to go up!
2. No Placing Bids
Real estate is a competitive market, and buying a new house can be quite nerve-racking. Many people explore the market to find the best home for themselves. However, a lot of them opt for the same estate.
This causes the owners to amp up the prices because several buyers are interested–demand and supply! The buyers then place bids, and the highest one wins. However, this is not the case with pre-construction homes. You will get a set price, and all you have to do is decide whether you want to make that investment or not!
3. A Warranty
Pre-construction homes generally come with a great warranty offer. Irrespective of whether it’s delays or repairs, you are fully protected!
4. Customization
One of the great benefits of pre-construction homes is that you will have the ability to customize and design them any way you want. As the house is still not finished, you can give your input and ask the construction workers to do things a certain way!
Pre-construction vs. Completed Homes
Both pre-construction and completed houses have their advantages and disadvantages. Deciding which one to get requires a lot of research. Make sure to inform yourself well before making such a significant decision.
Existing homes offer you convenience and no hassle. All you have to do is loosen your pocket, and your new home is ready for you! However, this also means that you have no control whatsoever. You get what is already made. Of course, there is always the option of renovation, but that can cost a lot of money.
You can also hire a real estate agent to help guide you through the process. They will help you find a home that suits you the best and fits your budget! This is a great option for those who need to move in as soon as possible. However, if you are not in a hurry, you should also consider a pre-construction home.
Unlike completed homes, pre-construction homes are great because you can modify anything you want for them to suit your style. You will be able to play with the design as you wish. This process is time-consuming, but if you do not mind waiting for a while, it might prove to be an excellent choice.
Indeed, you will get what you want, but that is not the only advantage. New houses are better than older ones because you will literally be the first owner. This means that the house is in excellent condition, without mold, asbestos, and other such troubles.
Also, in the long run, a newly built home will require fewer repairs and maintenance. You might end up saving more money on those additional costs!
What About the Price?
Investing in real estate is an incredibly smart financial decision. You will always be able to re-sell or rent out your house or condo. Generally, it is cheaper to buy a completed house than to build a new one. However, this is only true at the time of the purchase. Over time, your pre-construction home will increase in value as you will be investing in it. A new home is logically more expensive than an older one, which is why the resale value will be much higher once your home is finished. It is also easier to rent out a recently constructed house where everything is new and customized.
Apart from that, a newly-built home is less likely to need repairs and renovation. This will save you money in the long run. Older houses constantly need maintenance, which can be pretty pricey depending on the problem.
As many people do not want to spend their time building a house, they opt for completed homes. The buyers have to compete, and the sellers decide who gets the place. This gives the owners a chance to inflate the prices. Quite naturally, the buyer who is willing to pay the most will get the offer.
On the other hand, pre-construction homes have fixed prices that cannot be manipulated. This means that completed homes can be more expensive if there is a huge demand! We cannot say that one or the other is more expensive with certainty. However, usually, pre-construction homes pay off a lot more than existing ones!
Endnote
Overall, pre-construction homes have many benefits–from customization to profiting off of them later on. You also get to take your time and design everything according to your personal style.
On the other hand, existing homes might be more convenient if you do not have time to spend on construction. Even though existing homes tend to be cheaper initially, pre-construction homes can earn you more money in the future. Make sure to do a lot of research and choose the option that suits your needs the best!
Article Submitted By Community Writer
