How To Purchase A Presale

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With all the new development going on in Maple Ridge, I get asked quite frequently about the pre-sale process and how it works. For first time home buyers and home owners that have never bought new construction I’m here to break it down for you.

In the Maple Ridge area just driving around you can see plenty of signs regarding new developments. Typically they have the name of the development, the name of the developer, the amount of bedrooms in the units available or prices of the units available.

If a development peaks your interest or you are just looking in a particular city like Maple Ridge. You would want to take this to your realtor to help get more information on the development. I personally do a ton of research on the development and the developers history. Kind of like a back ground check to insure my clients they are making the right investment.

Some developers are award winning and care about there project and the people who purchase it when other developers take the money from the development and leave.

When you come across a development that you have to register for, most the time it is because they are not selling them just yet. Which typically means they haven’t released prices with floorplans. Your realtor will be able to help you figure out when they will be releasing this information. Once the prices and floorplans are released you are able to purchase it.

Normally around the time the prices and floorplans are released you can visit the presentation center. This is where you get to find out more about the development such as floorplans still available, color schemes to choose from, finishing materials such as add ons like hardwood flooring throughout, the construction around the development and most importantly how long it will take to build along with how the development is coming along.

After this phase, you are shown what is available on reach floor to hand pick your unit. After this the developer sends your realtor a document to review after reviewing they send it to you for signing. It shows you all city permits, the strata plan, all things regarding your unit such as the color scheme you chose, any and all add ons to your unit and the purchase price plus the deposit due. Your realtor should go over the contract in great detail with you.

Once you and the developer have signed this disclosure your 7 day rescission period starts. This is 7 days to think about it, a buyer can back out of the deal within this 7 days for no reason. Once the 7 days are up your deposit is due. Deposits can range depending on the development. Some developers can do 5% down, a common one is 10% down but I’ve also seen 5% every 3 months until 15%.

From here it is a waiting game. While the developer is building you are just on standby until around the completion date. Once the building is pretty much complete, you get to do a walk through of your unit. This is going around and making sure everything is done and if there is anything the developer needs to correct before you move in.

As soon as the developer can they will give you a move in date. You contact your lawyer to make sure your are receiving title on that day along with 5% GST is due. I also tell my clients that not including the GST save 5% for closing costs just incase. After this you are now an owner of a new condo or townhouse!!

This was just a small bit of information regarding the resale process if you have anymore questions about purchasing a pre-sale or want to purchase a pre-sale now lets connect [email protected] or 604-341-9937