About Buying New
Few things are more exciting than buying a brand new residence - one that has never been occupied by anyone.
Everything is new, and in working order. And if something doesn’t work, the warranty will likely cover it. No pet ever rolled around (or whatever) on your carpets. No decorating is required. The roof doesn’t leak. No electrical upgrades are necessary. You will have time on your hands. Life will be good.
No surprises - right?
There shouldn’t be. But sometimes it doesn’t work out that way
And the path to disappointment can begin in the developer’s presentation centre. Those granite counters, the ‘high end’ stainless steel appliances, and all of the other bells and whistles moisten your palms and quicken your heart. The salesperson is upbeat, pointing out that these units are great value and selling fast. You don’t want to risk losing out.
Before you know it you hear yourself asking - ‘where do I sign?’ A stack of paperwork appears, and you nod your apparent understanding as the salesperson reviews things with you, point by point by boring point.
But your mind isn’t on the paperwork. Your mind has already transported you to your beautiful new home.
Now if all goes well, you don’t have anything to worry about. After all, fundamentally, buying newly developed real estate directly from the developer and buying previously owned property are alike in many aspects. But they are not identical!
And it’s those ‘little’ differences, the ’fine print’, that merit special consideration. Because the things that don’t ‘go well’ are seldom if ever within your control.
For instance, did you know when you buy a property before built, typically the developer can adjust the purchase price in certain circumstances?
Another example. You may have seen news items about ‘another condo project’ running into financial problems, leaving buyers licking their financial wounds. Yet in all likelihood, the buyer’s recourse in those circumstances likely turns out to be extremely limited, defined by the developer and the ‘fine print’ buried in the purchase contract … somewhere.
When you buy ‘used’, you don’t run into those situations. And you know with certainty exactly when you can move in. Often when you buy new, there may be delays which can leave you high and dry, and without any recourse.
Now, real estate agents aren’t lawyers and they can’t give you legal advice. But an agent independently representing you, and not acting for the developer, will do everything within his or her power to point out and red flag items in the purchase contact that empower the developer to do anything without first seeking and obtaining your consent.
It’s about risk versus reward. Your REALTOR will help you identify in advance the potential risks associated with the purchase, so you can weigh those against the potential rewards and benefits.
What does it cost for representation by an independent REALTOR? Not a cent! Any commissions payable on a successful purchase transaction is paid by the developer.
What does it cost to forgo independent representation? Maybe absolutely nothing - and I don’t mean to leave the impression developers are out to ‘get’ you, they aren’t. After all, they have a vested interest to maintain a good reputation. But at the same time, they have a vested interest in making profitable sales.
For more information about buying, new or previously owned, be sure to check the ’Buyers Notes’ section of this website. Or, contact me directly using the ‘Contact Form’ to the right hand side of each page, toward the bottom.
Best regards,
Duncan Boan
