What Exactly is A Presale Condo?
We’re all familiar with the concept of pre-ordering books, movies, phones and other devices. You purchase an item before it comes out, you are ensuring you’ll get one of the hottest new gadgets upon release date.
When you are considering purchasing a PreSale Condo, understanding what a presale condo is and knowing your personal options is essential.
The pre-ordering process is similar when it comes to buying a condominium, but it’s one you’re probably less familiar with: a pre-sale condo.
A pre-sale condo is a unit in a building that is for sale, but that building or unit has not yet been built. Purchasers review architectural models and renderings, then reserve a unit in a planned condominium building. Often, buyers can customize flooring and finishes to suit their individual taste.
If you’re looking to purchase a condo drawn new, it doesn’t get any fresher than a condo that’s built for you, to suit your lifestyle, your wants and needs of a home.
When To Purchase
The earlier you decide to purchase a pre-construction condo, the more available choices you’ll have as to which unit you can buy. You will most likely get to choose your unit’s location within the building, think about which views you’d like, how accessible to the garage or parking space it may be, whether you want an upstairs or downstairs unit.
Other items to consider is the square footage, floorplan, flooring, countertops, cabinets, and add any upgrades that you want to suit your needs and lifestyle.
The developer may need to offer the option of pre-sell, which a certain number of units available to purchase before construction begins, this may or may not affect when construction will be complete.
This waiting period can be beneficial for purchasers who want more time to save, since full payment isn’t due until the building is complete and the sale is closed.
When you purchase a pre-sale condo, you will usually have to put down “earnest money,” a certain percentage of the condo price.
The earnest money is your commitment to buying the unit. It is rare for a buyer to lose the earnest money, but that money can be retained by the developer if the buyer backs out, depending on that developer’s policy.
How A Presale Is Financed
Developers often offer to sell pre-construction condos very early in the development process to help finance the rest of the project.
Most of the time, the condo development is still in the planning stages, at other times, the developer has a broader vision or idea for the development, but not a lot of details. Then in other developments, the plan is in place, the concept has been approved by the local governing body, and optional floorplans are available.
It simply depends on the time at which you first come forth to the developer.
If you need a presale condo, this option is perfect for buyers who want a new home to move into in the future, and who want to lock in a price and not worry about competing for units when a building is complete.
Whether you’re looking for a condo pre-construction or resale, it’s always best to work with a real estate agent that is experienced in the Greater Vancouver Market. By working with an agent who has experience in both pre-construction and resale condos, you can rest assured that you’ll get all the information you need to make an informed decision about your next purchase.
Ipresale Condos is not just an agency that sells real estate, but our agents believe in educating each client deal with their own professional situation. Please call or text at 604-825-8881 or email at firstname.lastname@example.org