Many home buyers are drawn to the possibility of buying ‘brand new’. Whether a new house, townhome or condo buying into a brand new development has many benefits, especially when you’re purchasing in the presale phase.
PRESALE is when a buyer purchases a home before construction is built or complete.
Here at Nyrose & Associates, we’re experienced pros when it comes to working with both developers and presale buyers and really understand what it takes for a buyer to be comfortable with a presale purchase. From our years of experience helping Kelowna, West Kelowna and Lake Country buyers purchase in the presale phase, we’ve learned that while presale is not the right choice for every buyer, there are some benefits for those who are looking to buy new.
Discover 7 Benefits of Buying Presale – Watch The Video
̶7̶ 11 Benefits of Buying Presale (vs resale)
In the video, Darcy reviewed 7 Benefits of Buying a Presale. We break it down for you below, plus add in a few more that are added bonuses, too!
Most developments in Kelowna ask for a 10% downpayment to secure your home.
- Clean Slate
There is no strata council in place already so you get to be a part of creating your own environment for the community
- New Construction
Typically, ‘new’ means that mechanical, electrical, appliances and other systems are at the beginning of their life and, generally, utilizing the most current technology and standards. You don’t have to worry that your home is not at current code.
- Upgrades & Individualization
Often, buyers of presale construction units can have ample input when it comes to things like colour scheme, materials and finishings and sometimes even the floorplan.
- Greater Choice
When you buy presale, you have more choice in terms of view, what way your home faces, floor, number of bedrooms, location of your unit within the development etc.
- Possibility of Financial Gains
The possibility of financial gains while the development is under construction is great news for your investment. Presales have not always seen an appreciation but knowing what and where to buy when will help reduce the risk and increase the odds of a positive purchase at time of close.
- Planning & Saving – If you are not in a rush to move, you can use time to your advantage. This leaves you with ample time to save for closing costs such as legal fees, movers, cleaners for your rental you are leaving behind, etc
- It’s Clean & New
Some home buyers are drawn to the untouched, and unused kind of cleanliness that comes with being the initial owner of a new build. As much as shampooing the carpets and wiping the counters can make an old place feel like new gain, it’s just not quite the same as when it ‘first comes out of the box’.
Instead of waiting for whatever pops up in a desired area, if you’re willing to purchase a presale townhome or condo in a new development, you have more options.
- Warranty Protection
Brand new builds here in BC must be covered under a 2-5-10 year new home warranty.
- Lower Operating Costs
New homes generally cost less to operate and less to maintain.
But are there risks?
There are some inherent risks involved with purchasing a presale; however, you can alleviate a lot of stress by working with a real estate team that is well-versed and experienced in new developments.
Project Doesn’t Complete – Often, developers need to secure a certain number of presale purchases to receive various stages of financing for the project. There is always a risk that the project will not generate the presale interest and will not proceed. In this case, you do get your deposit back but it may have impacted your ability to get in on a deal elsewhere. We help reduce this risk because we have a good understanding of the local developers and can recognize when a presale purchase may be risky.
Construction Delays – Your move-in date is a moving target based on construction schedules. When you sign your contract, you won’t have a solid date.
Purchasing Off a Floorplan – It is quite common to have a hard time visualizing a space based off a piece of paper. In many cases, this has been alleviated with the introduction of 3-d and virtual reality floorplans. By utilizing a real estate team with a strong background in new construction, we’re able to help you visualize the space and make informed decisions (such as, this room is going to be way too small or, you’re just going to love this open concept).
Is New Right For You? BONUS TIPS FOR BUYING NEW
The best way to determine if purchasing presale is right for you? Get in touch with Nyrose & Associates. We can run through all the pros and cons to help ensure you’re making an informed decision.