Pre-Sale vs. Resale Homes: What’s Right for You?
Thinking of buying a pre-sale or resale home but not sure which is the better option? In this post, we break down the pros and cons of each to help you decide what’s best for your needs, budget, and lifestyle.
What Is a Pre-Sale Home?
A pre-sale home is purchased directly from a developer before it’s built. You’re buying based on plans, floor layouts, and design schemes.
What Is a Resale Home?
A resale home is an existing property being sold by its current owner. You can physically view it, walk through the space, and see the neighborhood before purchasing.
Pros of Buying Pre-Sale
- Lower Initial Costs
Typically just a 5–20% deposit spread out over time. - Time to Save
With completion dates often years away, you have more time to grow your savings or investments. - Customization Options
Choose your flooring, paint colors, and finish packages (within set developer options). - Lower Maintenance Fees
New buildings often come with minimal maintenance costs initially. - Warranty Coverage
Includes a full 2-5-10 year home warranty. - Potential Appreciation
If the market rises before completion, your home could be worth more by move-in.
Cons of Buying Pre-Sale
- Uncertain Timelines
Construction delays are common due to supply chain issues or developer timelines. - Market Risk
If property values fall before completion, your unit might be worth less. - Financing Uncertainty
Mortgage rates may rise before completion, making qualification harder. - GST Added
Expect to pay 5% GST on top of the purchase price. - Buying Sight Unseen
You’re often relying on floor plans and show suites—not the actual unit.
Pros of Buying Resale
- Move-In Ready
Typically available within 30–90 days after purchase. - What You See Is What You Get
You can tour the home and neighborhood before committing. - Established Neighborhoods
Transit, schools, parks, and shopping are already in place. - More Room for Negotiation
Sellers are often more flexible than developers on price and conditions. - No GST
GST has already been paid by the previous owner.
Cons of Buying Resale
- Higher Upfront Costs
You’ll need your full down payment (usually 20%) at completion—often within 1–3 months. - Potential Repairs & Maintenance
Older homes may need new roofs, appliances, or system upgrades. - Bidding Wars
In a hot market, you could face multiple offers and emotional stress. - Special Assessments (Strata Properties)
Unexpected building repairs may result in extra fees from the strata.
So… Which One Is Right for You?
Ask yourself:
- Do you need to move soon?
→ Go with resale. - Are you investing long-term?
→ Consider pre-sale. - Do you want to customize your home?
→ Pre-sale offers limited design flexibility. - Do you want financial certainty?
→ Resale lets you lock in mortgage rates now. - Can you handle market risks or construction delays?
→ Pre-sale might still be worth it.
If you’re thinking of buying a pre-sale or resale home in Surrey, Langley, or the Fraser Valley, send us a message, we’d love to help guide you through the process.
Don’t hesitate to reach out!
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