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Let's talk about Presales - Kelowna Presales FAQs

What are presales? Presales occur before construction has started on the new condo, townhome or development project. Buyers will put a deposit down to secure their future home, before it has even been built.

How do presales work? Typically, you will sign a contract of purchase and sale and provide your deposit to secure the home. When buying in a new development you will have a 7 day rescission grace period to cancel your contract for any reason. Once the 7 days have passed, you have signed an acknowledgement of the disclosure statement, and the initial deposit has been given, you are locked in the contract and must complete on the home or risk losing your full deposit. Generally the deposit will be 10 - 20% of the purchase price. The deposit is held in a trust account, and the developer won't have access to the funds until construction has completed.

Your mortgage should be pre-approved the day you sign the contract, with a locked in interest rate. Talk to you bank or mortgage broker prior to signing the contract to ensure you know what you expect. There is usually a contingency on the day you close, so ensure your financial institution knows what the construction timeline is, in order to secure you a higher dollar amount for safety.

What are the risks? There is the possibility that the market value on your new home will go down before you close, however you still buy at the agreed contract price. There is also the potential for the development's construction to be delayed, or worse case scenario, not complete at all.

What are the benefits? Buying presale is a great opportunity to get into the Real Estate market. If you buy now and the market value of the home goes up, your initial investment has already paid off. If you’re planning to move to a new town or community well in advance, a presale can secure a home for you now.

Important Considerations When Considering Buying Presale:

1. Do your research on the developer
2. Do your due diligence - you are in a legal binding contract. Ensure you know what you are committing to, and what's included.
3. Prepare your finances and give yourself time to save for the full down payment. Understand deposit & payment terms
4. Be aware of construction timelines
5. Ensure you coordinate the timing of selling your home (if applicable)
6. What community and home is the RIGHT one for you

Buying a presale can be intimidating, especially if you’re not familiar with the process. We’re here to guide you through it step by step, so that you can feel the utmost confidence in your decision to purchase a pre-construction home. Our team of Real Estate and Development professionals can help you find which development is right for you. Having a knowledgeable REALTOR® on your side is worth its weight in gold, and doesn't cost you anything as a buyer!

Guide to Presale Purchases - Guide from the BC Government on Purchasing Presale

Kelowna New Development Series – FAQS by Stage

Kelowna New Developments – Priority Registration
Kelowna New Developments – Presales
Kelowna New Developments – Under Construction

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ABODE | WEST KELOWNA
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GLENPARK ROW | GLENMORE 
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We LOVE talking new home communities with our clients. There are so many to choose from in the area, in all phases of sales and construction. We'd love to help you narrow down your choice.

For More Information on Buying New In Kelowna, Contact Your Real Estate Specialists