Why you need a Real Estate Agent to buy a Pre Construction Sale condominium or a new Condo under construction ?
Some Real Estate agents have access to the Pre Construction Sales event of the Builders before the project is announced to the Public. During these event days, Investor buyers have an opportunity to pick up the units they want at a lowest price. After few sales events such as Platinum Sales, VIP Sales etc the builders will increase the price depending the success of those sales events. Before the builder sell to the public, builder already sold substantial number of units and the price increased several time.
Before you make an decision to buy in any condominium project, you need a good real estate agent to educate you about the project, location, and the current resale price in the location, other condo projects in the area and explain the pros and cons of buying, and payment structures, closing costs, financial risks and rewards, and recommend units with good end-user, re-sale, and investment value, based on your criteria, budget and your motivation of the purchase.
After the several sales events, when the builder sell for the public in the Sales Centre, builders have their own agents in the sale center to represent their interest. The builder will release certain number of units for sale. Your agent can help you find the right unit for you when the new releases come up in the market and negotiate some rebate in the sales price and negotiate some clauses important to you.
Risks of Buying the Preconstruction condo sale : The following are the major risks in buying in a preconstruction condos 1) Uncertain Market conditions : If you are buying to sell upon completion or flip before the building is complete, the market condition may be or may not be the same or you expected to be, and there is risk of losing money if the projected price do not increase according the market projection.
2) Delay in construction: Delay in construction is a common thing, the closing date indicated in the Agreement of Sale and Purchase may not be true, the construction can be delayed due to delay in all permits, labour issues, weather and financing, etc. The builder has right to delay the closing date as indicated in the contract.
3) The buyers financial situation, may change due to unforeseen conditions. You may have paid the deposit, but may not qualify for mortgage. If you don't close on the date given by the builder, you may loose your deposit. Alternatively you may try to sell the unit before closing. You need your agents help to sell through assignment.
4) If you are buying to move in and enjoy the view or the neighbour hood, when the building is complete, new building construction proposal may coming up in front of your building or neighbourhood quality may decline.
ADDITIONAL COST INVOLVED WHEN YOU BUY PRE CONTRUCTION SALE
2) Occupancy fee : Before the condominium registration, after you get the key for your unit, you have the occupancy fee to the builder equalling to interest to the unpaid amount, maintenance fee, and property tax.
3) Development fee : In addition to the purchase price, developer will charge the a development fee for hydro, water connection, school fee etc... Make sure it is caped to a fixed amount.
4) Additonal cost for upgrades, blinds etc.
you are interested in buying or selling a condo suites at the Aqualina
Condos ( 261 Queens Quay East), please feel free to call me or send an
email for detailed information.