CATEGORY
Real Estate
SERVICE
Pre-Construction Sales
STATUS
2023 Projects Now Available
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01. What is a Pre-Construction Home?
A pre-construction home is exactly what it sounds like, a house you buy before constructed.
Buying brand new provides the opportunity to own a home that no one else has ever lived in. And because the house is in the pre-construction phase, you have the opportunity to customize it to your preferences.
Most styles of homes are available for pre-construction buying, including:
- High-rise condos
- Low-rise condos
- Detached houses
- Semi-detached houses
- Townhouses
For a condo development, you’ll buy a home from blueprints or a 3D computer rendering that provides a simulated walk-through. For houses, you can usually visit a model home that sits on the lot of the future development. Although model homes tend to be highly aspirational in their decor, it’s your chance to get a more realistic look at what you’ll be buying.
02. The Benefits of Pre-Construction Homes
So, what’s the big attraction of a pre-construction home? There are quite a few benefits, including:
Warranty
Like buying a new car, a brand new home comes with a warranty. The warranty programs in Canada offer protection for newly built homes, including delays in occupancy and closing coverage, protection for your deposit, and the cost of repairs should there be issues once you move in.
Lower Price Tag
Pre-construction homes can offer better value than the resale market, because you’re essentially buying a promise. You put down your deposits (as per your purchase agreement), and the builder promises to deliver a home by a specified date.
No Bidding Wars
Depending on where you’re shopping for your home, bidding wars can really knock up the price. When inventory is low, buyers are desperate, and the more attractive the home and neighbourhood, the more chance you could end up paying an inflated price for a resale home. When it comes to pre-construction, you’re looking at a set price. You’ll know exactly how much you’ll be paying, usually at fair market value.
Designer Home
You have the option of designing your home with plenty of upgrades available. There are not only got upgrades for finishings like kitchen counters and flooring, but you can often make structural upgrades, including adjusting some floor plan options.
Because you’re making all your decisions during the building process, they are far more affordable than a reno or upgrade once you move in. The pre-construction process allows you to make smart decisions that will increase the resale value of your home.
Lower Condo Fees
When buying a brand new condo, the condo fees are lower in new builds than in resale condos. That is because everything is new, and the management has yet to see how much it costs to operate the building or property, so, as you will read below, this can also become a drawback.
Flexible Deposits and Down Payments
Although you tend to need more for a deposit or down payment for pre-construction, the payments are staggered. You have time to keep saving as there is a small amount paid upfront, and the rest is paid on a schedule that leads up to the final closing.
Better Choices
You’ll have more choices when buying pre-construction compared to resale condos, such as the floor of the unit and the location of your unit (i.e., a corner unit or a better view).
10-Day Cooling Off Period
You’ll have 10 days to “cool off” and reconsider your purchase. You can arrange for financing and have a lawyer review the agreement during this time. Should you change your mind or find something in the deal you don’t like, you can get your full deposit back and walk away.