If you’re a first-time homebuyer, you might be overwhelmed with a plethora of relevant questions and concerns. The concept of purchasing a pre-sale house and the entire process might sound a bit too intriguing and intimidating since pre-sale developments have unique concerns compared to re-sale ones. Typically a pre-sale purchase entails a comparatively longer timeline from purchase to possession. This blog is about addressing all such queries and concerns for first-time homebuyers.
Why Purchase a Presale Home?
The foremost concern of purchasing a re-sale property is the scarcity of such options. With a consistently increasing demand in the market for such properties, it might be particularly challenging to locate an ideal option that perfectly meets your requirements. This is one less worry when it comes to pre-sale homes, where you can be unique and specific about your requirements, be it location, size, or any other preferences. In fact, pre-sale homes are ideal for first-time homebuyers, who can wait for the perfect option to arise and avail.
Where to Hunt for Presale Homes?
Once you’ve set your requirements, you are advised to select your preferred location. For this, you can choose from a host of real estate agencies to consult, both online and brick-and-mortar offices. Players like Urban YVR and The Daily Hive Urbanized Vancouver are excellent resources to tap on for pre-sale developments. Most of their projects are in the early stages of the development lifecycle and hence ideal for a pre-sale agreement. The process of purchasing a pre-sale property is relatively straightforward, and your realtor will guide you through all the phases of your purchase transaction.
The Role Of A Realtor In Presale Purchases
A realtor is a real estate specialist with expertise in pre-sale homes. Hence, consulting one for your purchase might be a plausible option, especially if you’re a first-time homebuyer. They have commendable knowledge about the market, the market conditions, current projects, and the latest industry insights. They can guide you well in your search stage through to the closing of the transaction itself. They often also have excellent promotional offers to assist you in bagging the best price available.
After you close the deal, you will be asked to review your purchase details and contract copies. You will also be given a timeline breakdown of the construction projections and key milestones, such as your payment schedule. You can ask your realtor to guide you through this timeline so you are well-versed about your actionable claims. You can also consider insurance and movers to help you through the process.
Financial Factors to Consider
While considering a pre-sale home, here’s a list of essential factors to take into account to ensure you end up with the most optimal decision, both financially and otherwise:
- Set out a budget for your pre-sale transaction after a careful analysis of your financial situation.
- Arrange for a mortgage to finance the transaction, so you don’t have to worry about funding the purchase. You might want to connect with pre-sale mortgage experts to guide you through the process.
- Understand the seven-day rescission period. This is the time-period beginning from signing the purchase contract until seven days later, during which you can cancel the deal without any penalty.
- Be mindful that you can use the graduated deposit structure to make payments according to a scheduled plan once the mortgage is approved.
- Understand that there will be additional costs incurred apart from the price of the house itself. These will include fees, closing costs, utility connection fees, GST, and strata move-in fees, amongst others.
You can learn more about the top tools for purchasing pre-sale properties online, as well as the deposit structures and budgeting tips for a better understanding.