A first-time homebuyer’s guide: The do’s and don’ts of buying presale

Are you thinking of purchasing your first pre-sale home? Then you’re in the right place. This article provides a guide to the do’s and don’ts for first-time homebuyers of pre-sale homes.

A pre-sale home is worth considering if you are buying your first home, since it gives you the opportunity to be specific about the location and design preferences of your future home.

Here are some factors to consider

Do work with a realtor who specializes in pre-sale homes. A realtor knowledgeable about market conditions and industry players can guide you through the search and closing process. He or she will ensure you understand and are comfortable with the steps involved. They will also have helpful insight into promotions and incentives and will paint a better picture of the final project within its pre-construction context.

Don’t view homes outside your budget. It is essential to determine the maximum loan amount and total monthly payments and factor in all other costs, including but not limited to inspections, insurance, move-in fees, property taxes, maintenance, repairs, renovations, strata fees, and utilities. Viewing homes outside your budget could lead to either making a purchase you cannot afford or creating unfair comparisons with the places initially viewed.

Do research on the area to confirm that living in the community is a viable long-term option. For example, find out how walkable the neighbourhood is, whether public transit is nearby, whether schools are highly rated, if there is access to amenities such as retail, restaurants, and grocery stores, and will there be further development down the road.

Don’t choose a realtor based solely on the number of listings they have. While an agent with many listings may seem like an indicator of success, they may not have the time to give you the attention you need. Do your due diligence before choosing a realtor. Get a referral from friends or family, read reviews, and go to an open house to gauge compatibility. Also, visit the BC Financial Services Authority’s website to check for any recent license suspensions.

Do get pre-approved for a mortgage. Pre-approval will help you determine your budget and give you an advantage when competing with other buyers for a pre-sale home. It will also ensure you are ready to move forward once you find the right pre-sale home.

Don’t skip the fine print. It is essential to read and understand the contract and disclosure statement. In addition, ensure you understand the deposit structure, the construction timeline, and any cancellation penalties.

Do keep in mind that pre-sale homes have their own unique considerations in the real estate world. You will have to make more decisions, have more variables to consider, and accept a longer timeline from purchase to possession.

Don’t rush the process. Take your time to make an informed decision. Consider getting legal advice before signing the contract.

Enjoy the process

Purchasing a pre-sale home as a first-time homebuyer can be an exciting experience. By following the do’s and don’ts outlined in this article, you can confidently navigate the process and make an informed decision. Remember to work with a realtor specializing in pre-sale homes, determine your budget, research the area, get pre-approved for a mortgage, and read and understand the contract and disclosure statement. Then, take your time and enjoy the process.