This is a story based on fact because the figures are estimates.
We know some people who know some people who bought a condo in Vancouver a couple of years before it was built.
A down payment of $5,000 was applied to a purchase price of $400,000 for a condo that would sell five or six years later for $800,000.
That’s why people buy “pre-builds.”
You have somebody who priortizes your interests in dealing with the paperwork, the negotiation, even the promises made and promises kept and the correct interpretation of the fine print.
Now you may say those days are long gone, but people still buy homes before they’re built because they get a better deal by providing a contractor with some of the money up front. It can still work for both the buyer and the seller, but having somebody in the middle — a realtor — is always a good idea.
Why?
You have somebody who priortizes your interests in dealing with the paperwork, the negotiation, even the promises made and promises kept and the correct interpretation of the fine print.You have an expert to size up the neighbourhood before you take the step, to make sure that it really is a good deal, that the proper materials are used in construction, and that the builder has a reputation for finishing his jobs on time.
You have a person with intel on whether there are perks that can be added, like appliances or upgrades like window coverings, flooring, light fixtures or built-in shelving. Photo Ennio Dybeli, Unsplash
You have guidance to make sure you don’t fall for a sales pitch, and that you have a reputable list of outside resources if needed when it comes to financing your project and having everything approved.
And one thing about the realtor’s commission: It is paid by the seller (or contractor) if you enlist a real estate agent, and builders are often reluctant to discount the purchase price if you don’t use a realtor because it sets a precedent.
Buying before your home is built may not result in doubling your investment, as it did for those “friend of friends”, because market conditions had a lot of to do with that, but it’s still important to get the most out of your transaction. If you need to know more about having that proper advice or protection call Jennifer (604-726-8768) or Dale (604-922-3353).