What is PresalesBuzz?
PresalesBuzz is an online platform that facilitates the purchase of new presale properties, such as condos, townhomes, and single family homes, through licensed Realtors®. The website allows you to consider all available options and ensures that your best interests are represented during the buying process.
Why Not Buy Directly from the developer?
At PresalesBuzz, our commitment is to assist you in exploring every available option for a specific presale property. This will enable you to make an informed decision when it comes to purchasing a property.
Can I Negotiate a Better Deal Directly with the Developer?
Generally, it is not possible to negotiate a lower price with the developer as they are responsible for paying the commission to the buyer’s agent, if one is involved in the transaction. If the buyer does not have an agent, the developer may save on the commission, but they are not able to offer a discount on the sale price as it must remain consistent.
Does this Service Include Full Service?
Certainly! We provide complete representation and guidance throughout the entire transaction, just as you would anticipate.
Why PresalesBuzz?
As a team of committed Realtors®, we approach our work with enthusiasm and passion. Our objective is to offer you exceptional service to enable you to make an informed decision when purchasing a property. We are dedicated to representing you and your interests throughout the entire buying process.
Why Buy a Presale Condo?
Acquiring a presale condo presents a host of advantages. While the most apparent one is owning a novel and sparkling property, other perks exist beyond this.
Presale condos are highly favoured among investors for various reasons, including the considerable return on investment potential. As with any real estate investment, presales are susceptible to the fluctuating housing market. However, one significant distinction between presales and pre-existing condos is that the former has no maintenance fees or mortgage payments during the construction phase. Additionally, investors need not worry about renters or vacancy taxes. By investing in a presale condo, you are making a down payment and can potentially benefit from any increase in the housing market.
Historically, the market tends to rise over the long term, which can translate into significant gains for investors. For instance, on a $500,000 presale, a down payment of approximately $100,000 would be required. Assuming that the market continues to grow during the 3-5 years of construction, you will be acquiring a condo in the future at current prices. Moreover, presale investments alleviate the worry of enduring mortgage payments or recurring maintenance fees.
One of the advantages of presale condos is the freedom to customize your unit to your liking. This includes the ability to choose from a range of color schemes, as well as the option to upgrade appliances. Additionally, presale condos often offer an extensive selection of layouts to cater to diverse needs, ensuring that you can find the perfect fit for your lifestyle.
Another pro is that newly constructed buildings are accompanied by warranties from the developer, usually ranging from 2-5-10 years, depending on the features of the building. This is in contrast to many older buildings that often entail various repair costs.
Presales are also great If you intend to rent out your presale condo in the future. It is worth noting that tenants are often willing to pay a premium for a new and modern unit.
Additionally, presale suites tend to be more in demand and easier to rent out compared to older units. This means that finding reliable renters is often less of a hassle.
Is a Downpayment Required?
The standard downpayment for presale condos typically ranges from 5% to 20%, although this may vary depending on the terms of the presale contract. To incentivize buyers, presale developers often offer a low downpayment option. It is important to note that the initial downpayment forms part of the overall purchase price.
Do I Have to Pay a Commission?
In British Columbia, it is customary for the developer to pay the real estate agent’s commission. This means that as a buyer, the price you pay for the presale condo remains unaffected, and may even be lower than what you would pay without the assistance of an agent. The amount of commission paid by the seller is usually stated in the real estate contract, and no commission is paid if the transaction falls through.
Is A Mortgage Required?
It is not necessary to obtain a mortgage when purchasing a presale condo. In most cases, buyers will secure a mortgage for the remaining amount of the purchase price, which is usually around 80-85% of the total cost. Interest on the mortgage typically begins once the lump sum completion payment is made upon the presale’s completion. However, there is a beneficial program offered by RBC that enables buyers to obtain pre- approval for financing at the time of purchase.
