Resale Homes vs New Homes in PEI

Your looking for your new home - are you going to buy a lived in home also referred to as a resale home or are you looking for a new home. While in PEI there are many more resale homes available than new spec homes, as we don’t generally spawn as many new subdivisions as you will find in other locations, new is still a consideration.

Generally new homes are more expensive than resale homes and this is probably even more the case with PEI real estate since many of the resale homes are quite old (up to an over 100 years of age). Now while older, well renovated, character, heritage-type homes in the centre of the major towns can be more expensive than new, smaller homes built out of the city centers, generally it holds true that per square foot you will pay more for a new home - it simply makes sense.

However if you are taken with those heritage homes you really won’t likely be interested in a new home anyway. Many of the big heritage homes in the Summerside area were built by the business barons of the last century and nothing built today comes close in terms of architectural style.

Resale homes also present the potential buyer other advantages. These homes have been standing long enough to show their defects and in most cases those defects have been taken care of by previous owners. They tend to be part of larger city centre communities that have a developed character and services available. Resale homes may have been customized by previous owners and this may be an advantage or disadvantage depending on the quality of work and the type of renovation. Finally, resale homes are not charged GST.

Of course there are advantages to the new home and disadvantages to buying resale. New homes generally are part of the New PEI real estate Home Warranty Program and as such you should not have to worry about building deficiencies, whereas a home inspection of a resale home is essential. While older homes may have been renovated, you will not know if all the necessary building permits have been taken out for the renovations and all the work inspected. This can lead to problems down-the-road, both with faulty workmanship and the possibility of problems with the city.

If the older home you are considering has not been renovated you may be facing a renovation yourself which is time consuming, expensive and disruptive to your life. New homes are in move in ready condition.

Further older resale homes may have problems with the mechanicals of the home such as hot water tank, heater, electrical service, plumbing etc. Therefore as mentioned a home inspection is essential, but even a home inspection may not be able to prepare you adequately for the expenses of home repair if any of these items should break down.

The decision always involves a trade off – modernity and convenience vs price, character and sometimes location.