Going for a pre construction condos or homes rather than ready to move in home is a sound financial decision as this saves a lot of costs but the entire process is a bit stretched. There is no denial of the fact that buying a home in the pre construction phase gives you great choices. You can access the best home or condos of your preferences at the lowest price but with this comes a bit of complexity. The process of buying pre construction homes is lengthy and confusing. If one doesn’t plan meticulously then one might end up paying more than estimated. Here are some of the few major mistakes which buyers often undertake while buying a pre-construction home.
- Believing the developer or the brochure completely- Many prospective home buyers fall in love with the brochure presented by the developer. They fail to understand that the brochure is a framework or plan from the developer’s point of view which might change during the construction process. Even bigwig real estate developers fail to deliver what exactly they promised. Hence, it is a sheer necessity that one needs to go beyond what developers presented and for this one needs expert help.
- Not hiring personal and professional real estate agents-Buying a pre-construction home requires end-to-end professional help. Many buyers prefer not to get assistance from personal real estate agents or brokers for fear of getting paid a hefty sum. This turns out that the buyers have to pay even more. Professional real estate agents know exactly how much condos and houses cost along with all the hidden charges. They are part of the real-time property market and know the trend and all the pros and cons of a particular property which are mostly not disclosed by the property developer.
- Not approaching pre-approved mortgage brokers- Not getting any assistance from pre-approved mortgage brokers before finalizing the decision of buying is a major disaster. Buyers are under false assumption that they will qualify for the mortgages which result in great loss sometimes. Mortgage brokers guide and help in sorting out the mortgage options and interests associated with it.
- Buying property without inspection- Getting the house inspected is a major requirement in order to free yourself from hurdles. There are two major inspections in the entire process of home buying. The first inspection is a pre-delivery inspection which is conducted on the new homes under the warranty period. This inspection is conducted in the presence of the property developer prior to officially possessing the house. The second inspection usually takes place one month before the warranty period expires. Inspections help to point out the defects and loopholes which you can get fixed by the developer.
- Overlooking the hidden cost- At times buyers are in haste and they overlook the hidden cost which eventually makes a big hole in the pocket. Most developers don’t disclose the hidden or additional costs of the pre construction property such as land transfer costs, legal fees, registration charges, maintenance fees, property tax, insurance fees, a and others.
- Not assessing the rental potential- Assess the rental possibilities of not only the home but also the area. Most people ignore the rental possibilities in the pre-construction period. Most housing projects take somewhere between two years to five years to complete. During this time rental possibilities might go up or down. It is vital to assess it in the pre-construction period.
Conclusion
Buying a pre-construction home in Canada is a sound financial decision as this creates valuable assets which have immense appreciation potential, but one needs to be conscious about the real estate market trend. In-depth research is crucial before closing the deal and for this one needs to get assistance from a market specialist who understands every realm of it such as hidden cost, resale value, timeline, previous performance and reputation of the developer, and other projects which have been delivered by the developer. All these factors need to be considered while putting aside emotions, which will definitely give a profitable deal.
