Should You Use A Realtor When Buying Pre-Construction?
Buying a new or pre-construction property can be a great alternative to buying resale. Pre-construction buyers enjoy the obvious benefits of purchasing a brand new, never lived in property, that is often customizable, won’t need repairs or updates soon and investors can benefit from price growth, often without having to close on a unit and pay land transfer tax. But, buying pre-construction can often sound easier than it is. You need to find the right development and unit that meets your needs, understand the exhaustive multi-page contracts (which are always drafted by prioritizing the builder’s interest first) and ensure that you are able to meet the financial obligations required, which are very different compared to purchasing re-sale. This can be a daunting task and come with several risks that pre-construction buyers are often not aware of, particularly if purchasing without a professional/experienced Realtor by your side.
To minimize the risks and avoid any pitfalls, buyers should always consider being represented by a Realtor before beginning their pre-construction search. A Relator who is experienced in pre-construction purchases will have the right connections and be familiar with different builders, the way they operate and the level of quality they produce. A builder’s main interest is to sell their units as quickly as possible, whereas a Realtor you hire will be dedicated to protecting your best interest while diligently working to ensure you get the right unit that suits your needs and budget. Here are a few things to consider when buying pre-construction.
Buying Without A Realtor May Not Get You Everything You Hoped For
Envisioning a finished property by relying solely on floorplans, models and sample finishes can be intimidating for buyers, especially if the builder seems unclear about final details. It often happens that builders alter or cancel items Buyers were promised, like custom designs, finishes, unit location, or more common than not the date of completion - which is frequently months or years beyond the initial target date. Many Buyers don’t realize that until a unit actually closes, Builder contracts contain clauses that allow them to make pretty much any change they want with little or no penalty and that often units are sold without final permits in place, which can result in units and common elements being changed or eliminated to satisfy city planning.
When buying with a Realtor who is working for you, they will carefully review your options and details of specific developments to ensure that your purchase meets your needs, or whether pre-construction is even right for you at all.
When you go to a builder, their sales staff’s duty is to represent the builder. They may not be trained sales professionals and they may not be registered with the governing bodies that licensed Realtors need to be.
What Do You Get When Buying Pre-Construction with Beacon Real Estate Team?
Working with Beacon Team to represent you with your pre-construction purchase, you can expect to receive several additional benefits which include:
Advice & strategizing. Our team will sit down with you to understand your needs and goals, and will work with you to develop a strategy to explore new construction developments that meet those goals. Unlike a builder’s sales staff who are focused on selling the particular development they are stationed at, our team will present you with various developments to consider.
Guidance throughout the process. Once you’ve found the right development, we will help you coordinate with the builders’ sales team to select the right unit for you. We’ll review floor plans, building location, help you with customizations or choosing design finishes and we will also attend your PDI (Pre-Delivery Inspection) on your request!
Assignment assistance. Handling assignments requires a specific skill set, which many Realtors are not familiar with. If your goal is to assign the unit prior to closing or if purchasing an assignment makes sense to you, our team’s assignment experience will be very valuable.
We are dedicated to you. Throughout the process, our focus is to represent your interests and ensure you are equipped with as much information as possible so you can make informed decisions.
Who Pays for Our Service?
The best part of hiring Beacon Team to purchase pre-construction is that you do not have to pay anything! A misconception amongst many buyers is that if they go directly to a builder they will get a “deal”. This is a myth as top builders have included Realtor commissions into the price of their units. So why not use a Realtor if it’s free to you? Our commission is paid to us directly by the builder.
As you can see, it can be hard for a buyer who is not professionally involved in real estate to understand the entire pre-construction process and to avoid any pitfalls, so it is always better to buy pre-construction with a Realtor you select, who does this on a daily basis and who knows a trick or two to get you exactly what you want. If you are wondering if pre-construction is right for you, or have seen a development that caught your eye, contact us first to make sure you maximize your pre-construction purchase!