Home buying is an overwhelming and daunting task for anyone. The entire process involves multiple steps and the home buyer needs to source, negotiate, and conclude with multiple external stakeholders.
In this series of blogs, we will aim to make the home buying experience that much more informing.
This first blog concerning pre-sale developments focuses on providing an avenue for purchase in a market where supply of quality and well priced homes may be limited. Rather than scanning the market on existing inventory of homes on MLS, buyers often have better outcome when considering a pre-sale home.
A pre-sale home is a purchase directly from the builder often before the builder has even started construction.
Something to consider and to understand prior to buying a pre-sale home is as following:
- The builder may market and sell their new homes via sales centres (presentation centres) or even a show suite.
- Presentation centres will have visuals of what the building will look like, provide floor plans, and examples of the materials and colour schemes available. Most presentation centres will also have a 3D model of the building, including grounds and landscaping, and video footage of renderings.
- Buyers may have 7 to 10 days for due diligence. The term due diligence refers to the reasonable steps taken by a person to satisfy a legal requirement. This means both the buyer and the seller have time to consider the agreement, adjust their finances, etc.
- Most pre-sale centres have a financing specialist outside who can pre-approve the buyer. Pre-approval will include checking buyer credit history and verification of income such that any loan assumed is able to be serviced by the buyer. The pre-approval can help a buyer find a home which is within their reach.
- Buyers may be able to secure extra parking or storage during pre-sale purchase.
- All new homes come with home-owners warranty. A warranty is a service agreement which covers the repair or replacement of many major home system components and appliances which typically breakdown over time due to normal wear and tear. In the province of British Columbia, most new homes provide 2-5-10 year warranty.
We hope that this blog was informative. For those who have any further questions, please feel free to email us at email@example.com .