We are at the time of setting goals for ourselves, and you’re thinking this is the year I’m going to buy a home. Instead of going the traditional route of buying a resale property, you are thinking of purchasing a preconstruction home or condo. Do you really need to hire a Real Estate Agent for this kind of purchase?
Hear me out, as to why you need to have a Real Estate Agent in your corner.
The Builders Sales Team does not protect Your Best Interests.
The real estate representative in the builder’s sales office represents the builder’s best interests — not yours. By having a real estate agent representing your best interests and advocating on your behalf, will make the real estate transaction easy and frustration free.
What you See is not What you Get
You tour the model, and it looks great. The problem is the model isn’t the base price being advertised. Top tier granite countertops, crown molding, upgraded appliances, built-in bookshelves and trey ceilings are usually upgrades and they add up. A realtor representing your interests will help make sure you’re aware of what’s included in the base price and what’s extra. A Real Estate Agent, that has a good relationship with the Builder (known as Platinum or VIP access), will be able to get you buying incentives not normally advertised to the general public walking in.
Do I have to Pay a Fee to use a Real Estate Agent?
Buyers do not pay the real estate agent fees, the seller or builder does. Builders view commissions to real estate agents as part of their cost of doing business. In fact, they rely on outside agents to bring clients to them. Builders will not credit buyers the commission they would otherwise pay to a Realtor. Therefore, there is no downside and no cost on your end to have an outside agent represent you.
Cooling Off Period
After you sign the Agreement of Purchase & Sale, you have 10 days to review your purchase, and make sure it’s the right decision. An agent will watch this timeline, and make sure that you have followed all the steps, like having the agreement reviewed by a Real Estate Lawyer.
Inspections
In Ontario, you have a PDI known as a Pre-delivery Inspection of your home before occupancy. This is to determine any final touch-ups or fixes need to be done before occupancy. Often, homeowners think a new home warranty will cover any issues that arise. In certain instances, it does not. An excellent realtor will help the homeowners set the appointment with the Builder and attend as a second set of eyes to to identify potential areas of correction, repair, or replacement with the builder.
Financing
When you are buying new construction, the builder usually offers a deposit structure for your downpayment. With some Builders you’ll even be required to present a Mortgage letter upon 30 days after signing. An experienced real estate agent will be able to connect you with reputable lenders so you can compare rates, and have that mortgage letter ready.
Quality of Construction
How familiar are you with the builder? What’s their reputation? What is the quality of their construction? There are hundreds of builders. An experienced agent will be familiar with all the major builders and their quality of work. They’ll also be able to provide recommendations and references for custom home builders to ensure you are connecting with a reputable builder.
Considering buying a pre-construction home or condo in the next 3-6 months? Contact expert Toronto and Greater Toronto Area based Real Estate Agent Caryn Parchment, to discuss your options.