Things to Consider Before Buying Pre-Construction
The cranes you see in your city are working overtime to get housing built, but you don’t need to wait until the job is over to buy a home. Buying a pre-construction unit can be an excellent way to get a beautiful unit that fits your lifestyle for a reasonable price.
However, it can be risky unless you take a few precautions. Mind the following advice before buying, and you’ll feel right at home in your unit for years.
1. Move-In Delays Are Almost Inevitable
The day you circle on the calendar for the move-in may not be the actual day you take occupancy. It’s not unusual to have delays that last months or even years.
The builder may not emphasize just how real the possibility of an extended delay is, but it’s safer to plan to move in six months after the move-in date, just in case. It may be longer than half a year, so have a backup plan ready.
2. Developer Track Record
Some developers have a history of delays. It helps to know who is building the home you’re considering buying and how they fare in this regard.
Don’t get caught up in the glossy marketing pamphlets and fancy mock-ups. Don’t commit until you’re confident in the people you’re working with, or at least know who they are and what you’re getting into.
3. VR and Tech Can Make a Difference
Real estate technology can help buyers purchase sight-unseen property in at least a couple of ways. The advent of VR and video walkthroughs lets people get a much fuller sense of the property from their couch at home.
The digital innovator Regan McGee built the real estate tech platform Nobul to link buyers and sellers securely and seamlessly. Find the right agent for your budget and lifestyle, one with experience closing pre-construction condo sales.
McGee described how improving real estate technology has already transformed how people buy and sell pre-construction units. “Since the start of the pandemic, there has been a huge rise in sight-unseen real estate sales, signaling a huge shift in how people buy and sell property,” he shared. “I’m especially excited about how VR can bring in the visual tour aspect to pre-construction sales.”
Leverage real estate technology to get a better deal on a home you love and a smoother buying experience.
4. Warranties Matter
Pre-construction sales seldom go 100% right. Between delays, additional costs for things like repairs or taxes, and more, you must understand what is and isn’t covered by your warranty before signing.
5. Closing Costs and Taxes
Finally, the first number presented as the cost of the unit is always less than the final cost. Between things like HST and condo fees, you may be on the hook for more money than you think.
Don’t get stuck with a larger bill than you can afford. Be aware of all the costs you’ll need to pay before committing. You don’t have any leverage to negotiate after signing, so get your ducks in a row while you can.