Purchasing a presale condo doesn’t have to be difficult, and can be beneficial in a rising real estate market as your price is set once the contract is signed. Buying a presale condo simply means, you are buying it before it is built.
The process of purchasing a presale home can be quite simple. Here are a few steps to get you going.
1- Sort out your financial position. You’ll need to figure out how much you can afford and how much you’ll need to put in as a down payment or deposit. Meet with your financial advisor, mortgage specialist, or other lenders to discuss how to secure and handle your financing before any commitments are made.
2- Determine where you want to live. This sounds simple, but if you’re buying a condo, you need to make sure you have the resources, services, and amenities that are important to you, nearby. Do you want to be in the heart of the city, or out in the suburbs?
3- Hire a Real Estate professional to act as your Agent. Developers won’t work with your best interests in mind, but your real estate professional will. They can also guide or assist you through any issues, questions, or problems that may arise. Your Agent will negotiate on your behalf, prepare and present the Offer and walk you through the process, start to finish.
4- Visit the display model or presentation centre with your realtor. You can review the different plans, sizes, and locations of units, as well as determine what services or other amenities will be in the finished development. Maybe a fitness centre is important to you, or a community room you can use for large gatherings. Ask all these types of questions during your visit and before you make a final decision.
5- Once you’re satisfied with the plans and have picked your unit, your Real Estate Agent will prepare an Offer. When the Offer (or possibly counter-offer) is accepted by the Developer, you’ll need to pay the deposit. At this point, you are committed and will only have seven (7) days to rescind your Offer should you change your mind. After that, you are legally bound to complete the purchase.
6- Next comes the waiting. Unforeseen construction issues may change the anticipated completion date, but as long as the Developer communicates with you regularly about any issues, you should be able to handle any delays that crop up.
7- Complete an inspection with the Developer once the property has been constructed, and make sure any deficiencies are documented. You’ll want to make sure the Developer handles any necessary repairs in a timely manner so you can begin enjoying your new home as soon as possible.
Having a Real Estate professional assist you and represent you during the purchase of a pre-sale unit will eliminate a lot of potential pitfalls or issues as you work through the process. Find an agent who specializes in Pre-Sale Condos and you’ll be glad for their insight and expertise, particularly if this is your first pre-sale purchase.