One out of three homes in Canada is being bought straight from builders. While many others do not acknowledge this method, buying a pre-construction home could be worthwhile and beneficial.
Aside from purchasing a house that is shiny, brand new, and appealing, a pre-construction home could perhaps not be the right choice for you. It is crucial to know its advantages and disadvantages before considering a pre-construction home. Here is a guide about some pros and cons of a pre-construction home.
Advantages of Pre-Construction Home
- Since pre-constructional homes are mostly completed in underdeveloped suburbs, you could outdo the best deals available on trending urban real estate markets. Pre-construction homes could be significantly lower on costs and win easily on favorable bidding’s.
- You can easily customize your dream home to your preferred preference.
- Pre-constructed homes could provide more living space as well as your garage and property’s size.
- When purchasing early and during a pre-construction phase, you could get a cheaper, lessened, discounted, or lower down payment amount.
- The pre-constructional home will start to increase its appreciation value sooner since you first bought it. It will increase overtime relevant to its purchase price.
- For first time home buyers, it lessens the stress and long procedure compared to a hot real estate market.
- Also suited for recent graduates, a new employee to a job, those starting out their new business, where they could easily afford a pre-constructional home while building their careers.
- Adding personalized specifications for the home’s improvement makes you avoid future renovation costs on the inside as well as the outside world.
- Less frequent maintenance on your home could make you save thousands from its repairs.
Considering the advantages as indicated above, pre-construction might not work for everyone. There would be people still inclined to traditional home purchases. You, being a buyer should consider some things and be known if it doesn’t work for you.
- Pre-construction homes usually often bought from plans.
- Purchasing or buying it directly to a builder clears away proper advice from real estate agents.
- You must always be aware of some unforeseen or fortuitous events.
- Older existing homes could be 20% cheaper than brand new homes.
- When the time comes that you’ll sell the property, it is not well marketable for buyers who enjoy fixing older homes.
- Newly completed homes tend to frequently built on smaller lots.
When you’re considering buying a home in its pre-construction phase, it is essential to be equipped with the right information. Having extensive knowledge, and being ready could avoid fortuitous and unforeseen events that may negatively happen to your plans. Here are some suggestions:
Research Your Demographics And Developer
Researching could lead to a positive or negative result thus it will greatly affect your decisions. With the builder’s diligent application and perseverance, you could easily find out if the local community is satisfied with their workmanship. Take a visit to their successful projects and know the long-term plan for the area.
Get The Upgrades To Your Advantage
Newly constructed homes look beautiful and dazzling, however it is not the home you’ve fallen in love to. It is the upgrades that make the newly completed home outstanding. Getting to know the builder’s ability to do the upgrades could be beneficial when it comes to investing in its future value. The more upgrades are there, the more to negotiate its value for future resale purposes.
Don’t Take The Measurements For Granted
Double or even triple check the measurements of the property you want to buy. You cannot solely rely on a builder’s words and brochure or a sales person’s words of assurance. It is best to check the measure at your own finesse.
Help From Lawyers
All mortgage transactions do require fine print and legal documents. Purchasing a pre-construction home does need signatures and authorizations as well for the contract’s terms and conditions. Complying without understanding these terms and conditions could be fatal to your financial health. Seeking help and lawyering up could be a wise decision in these situations as well as conveying your preferences in legal terms.
Be Aware Of Hidden Costs, Charges, And Fees
Homebuyers often realize these expenses when the deal is already closed and closing costs have been already executed. Being mindful of these hidden expenses could save you thousands in buying a pre-construction home.
Chances are when purchasing a home in a construction process, you may be living in a dusty zone. Having protection on your overall health as a top priority should keep you from potential health problems. Even if your home is completely constructed and finished, there would still be leftover dust from the pre-construction phase.
Knowing this extensive knowledge on pre-construction homes could save you thousands and keep fortuitous events at bay. Being prepared especially on your mortgage journey can make the process easier and faster with no stressful issues. These steps will help you to have your first pre-construction home as well as to determine which problems you may encounter on your application.
- Represent Yourself With A Professional Mortgage Broker
- Research Your Builders Workmanship, Records, And Reputation
- Visit The Local Community And Learn About Your Home Site
- Tour Yourself To A Model Home
- Negotiate Your Personalized Preferences
- Ready Fine Prints
- Explore Your Warranty Rights And Guaranteed Assurances
- Sign Your Sale And Purchase Agreement
- Get A Mortgage Pre-Approval From A Lender With The Help Of A Mortgage Broker
- Finalizing The Contract From Your First Deposit
- Work Hand-in-hand With The Developers and Builders.
- Home Appraisal
- Critical Dates of Final Occupancy
Bad Credit For Mortgage
If you have bad credit getting a mortgage or a pre-construction home was never a hindrance. There are several bad credit home lenders that you could inquire to however, rates and conditions differ from each other. Getting a bad credit mortgage broker to work with you could give you an edge on its comparisons and assessment.
Whether you are a first time home buyer, a current homeowner, or a real estate investor, purchasing a pre-construction home is not for the faint of heart. Pre-constructional homes during their construction phase have their own risks for your financial health.
Be that as it may, pre-construction homes may align with your dream home and personalized preferences. With the right information, research, action, and people you are working with, pre-construction homes could be a profitable investment, a secured future, or/and a rewarding milestone for you.