When buying a pre-construction condo, it might be tempting to go directly to the developer in the hopes that you will save money by cutting out ‘the middle man’: a realtor. There reality is, some realtors that you are trying to avoid may actually be the best way to approach the purchase of your pre-construction condo. The realtor you want is independent and not employed for the builder directly, but rather one that the builder has a relationship where they trust that agent can bring important pre-construction clients to accelerate sales.
How does this builder-sales agent relationship provide you? It means the developer provides the realtor certain benefits that can be passed on to agent clients, that are not granted to other agents. And certainly not granted to those lining up for the builder’s own “grand opening”.
FACT: Most pre-construction condo buildings are oftn 50% sold by the time they make it to public sale, so getting first choice with your realtor’s help is a valuable asset.
In all cases, these realtors have shown the developer/builder that they are best-of-breed at building a client base that is a great fit for their offering. It’s also likely they have already spent years building trust with each other. Why else would the developer provide these perks as “gives” that are not publicly advertised or available? For buyers, walking into a pre-construction sales office in a hot market means negotiating is a non-starter – the next buyer in line is called up, with a deposit in hand.
From early access to pricing deals, working with a condo real estate specialist is always going to see you getting the most value for your investment. So don’t be shy, reach out to one today to take a look at the latest developments in your area!
Benefits to working with a condo real estate specialist
Access to VIP events and front of the line options and prices
The Patty Oliveira Team partners with leading developers in the Burlington/Halton and Hamilton-Niagara Regions. Opportunities exist NOW to buy pre-construction and secure preferred terms and advance purchase opportunities. That means you skip the builder’s sales opening lines, and get to the best units in the condo development!
Condo real estate specialists have spent years cultivating strong relationships with developers, and this translates into an ability to offer you the very best in pricing and options in preconstruction developments. These relationships pave the way for front of the line opportunities like being able to choose the best floor plans or units in new projects, getting preferential agreement terms and early access to introductory pricing. Benefits like these mean your investment is a powerful one and should your goal be to flip or reassign the property, your investment will be strong from day one.
They know the right questions to ask, and can answer all of your questions
Working with a realtor that has experience with pre-construction condos means that they know all the important questions to ask before you’ve even entered the equation, and that they can communicate directly with the developer to get your questions answered quickly. Topics like construction timelines, financing status, maintenance & occupancy fees and design input ability are all significant talking points when it comes to buying a preconstruction condo, and a condo specialist can help walk you through all of them.
They work for YOUR best interest
You realtor is on your side and will work to get you the best deal possible by negotiating the contract to be in your best interest. Because you are already looking at VIP pricing the price is often non-negotiable, but a pre-construction specialist knows exactly what details they can negotiate to make the most out of your investment.
Buying any sort of property can be a complicated process and this is especially true for a pre-construction condo. Especially if your goal is to flip or re-assign your property, there are all kinds of legal details to be taken care of. Your realtor will work to make the entire process as smooth as they can so you can be comfortable with your investment.
They have access to the MLS system
Having access to Toronto’s MLS (Multiple Listing Service) database means that your realtor can see information about comparable condos in the area so they can make sure they are getting you the most value for your investment. Whether you are buying to flip or to live in the condo, knowing what is available in the area helps you to feel confident that your investment is a strong one.
They will negotiate on your behalf to get the best deal possible
On a pre-construction condo the price is most likely not negotiable (you’re already getting a great deal with front of the line access to pricing!), but features like closing costs, upgrade additions, negotiating occupancy costs and design choices are all things your condo specialist can step in and negotiate for you. While you’ll still be paying the same amount, these factors can all help increase the value of the property when it comes time to flip or re-assign.
They can explain terms and practices that you don’t understand
Whether you’ve bought property before or you’re totally new to the experience, there will likely be some terms and practices that don’t make much sense to you. Your realtor will be able to walk you through the whole process and explain anything that you’re unsure about. Things like the difference between flipping and re-assigning your contract, your right to re-assign and Ontario’s mandated 10-day cooling period are all terms that are specific to pre-construction condo purchases, so even if you’ve bought and sold investment properties in the past you may not have encountered them before.
Additionally, your realtor will be able to explain how interim occupancy fees are calculated, and how they work. If you are buying a pre-construction condo to live in you will likely be surprised at the changing condo fees, so your realtor can work through this with you so that there are less surprises down the road.
They can help you with all the ‘little stuff’
When it comes down to it, there are so many little details that buyers are just not experienced enough to think about. From reading building plans to knowing the neighbourhood, there are so many factors that can affect your investment that an experienced pre-construction condo specialist can help you navigate.
In a pre-construction condo, things like knowing where the elevators, stairwells and garbage chutes are will help you determine the overall value of your investment to a future buyer or renter, as will knowing of any possible future developments that might change the feel of the neighbourhood or interrupt the view from your unit.
Even something as seemingly simple as figuring out how HST affects closing costs and looking for any HST rebates can feel overwhelming during this process. Your realtor is there to help you navigate this, too!
Working with a Condo Real Estate Specialist is the best way to get the most out of your investment
Buying a pre-construction condo as an investment or live-in property is an excellent choice in today’s market. Condo developments are on the rise, and getting in early to secure the best options and pricing is the number one way to make your investment work for you. And the best way to create wealth with real estate investing? With an experienced condo real estate specialist by your side!