Buying a brand new home, how exciting! ll those shiny counters and those perfectly installed hardwood floors – who wouldn’t want a piece of this action!
It all sounds like so much fun, so exactly where in Guelph should we get this new home party started? Hop in the car and driving aimlessly around town following arrows to different pockets of the city perimeter? How about we put a little strategy behind this new home shopping plan.
Let’s try this plan – buy the best built house we can for our money. 10 years from now, maybe even as little as 5 years from now, a better built house will be in substantially better shape. Look past those shiny surfaces and look at the materials that will form the structure of your home.
Searching for a new home, while entertaining, can come with a lot of confusion. Every builder has a different offering, different plans, different premiums, different policies and very different contracts. To be brutally honest – In Guelph these days, you just don’t have enough time to be unprepared and wasting time, the market is moving faster than you can drive around town.
So, with the speed of the market, the urgency to make decisions and all of those pretty counters and floors – we need to focus and stick to our plan. Got it? Good, we are still on the right path.
It is comforting to know that houses built today for the most part really do exceed past building practices. Important items like insulation standards, mechanical efficiency and building envelope have come a long way in the past decade. That being said, not all builders produce the same level of quality, and this can lead not only to immediate savings on your utilities, but also to future value of the property. Ask yourself,” Why is one builder charging twenty thousand more then another for the same square footage?”
Like everything in life, new home construction comes down to quality. The quality of materials used, the implementation methods and practices used, and the overall attention to detail and standards that some builders demand from their projects.
Well then you ask “Chris, how am I supposed to tell whether the home builder that I am interested in is offering a product worthy of a price premium?” and “How do I know that a more expensive home today will yield a higher sale price in the future?”
Two very good questions, and can independently be difficult to fins the answers. Asking the right questions in the model home may not even yield satisfactory answers. To gather all the facts you need a good Realtor who understands new home builds and practices, knows the local residual values and works in your best interest in this situation. I check the numbers all of the time, believe me there is a difference in the future resale values for some builders over others.
Let’s look at a recent example. Granite Homes built some beautiful, large and well-built townhomes in 2014 in a popular East Guelph neighbourhood. The towns initially sold new in the high 300’s range. Recent 2016 sales of those towns are now exceeding the $500,000 mark. Granite’s reputation for quality and premium construction practices have allowed their homes, even in a short amount of time, to exceed values seen form other builders. Buyer’s know they are getting a better built home, and are willing to pay for it.
While examples like this might seem a tad extreme, we see it each and every day with a better built home in Guelph. A premium build that holds up better over time, does fetch a superior future sale price.
So is that premium the original owners paid worth it? Absolutely.