Deep into a second year of the pandemic, I connected with six industry game changers for their advice to those considering purchasing a pre-construction home or condo in the next year. You can find these folks in our 2021 Builders' Annual along with many other industry movers and shakers. First up is the Managing Partner of TCS Marketing Systems, Mark Cohen:

Purchasing a pre-construction home poses a myriad of questions to the purchaser, especially because the building isn’t built, so it can’t be walked through and experienced. Your buying decision is based on seeing floorplans and renderings of the building.

The most important thing is location. Is it close to transit, shops and services, schools and parks, as well as main thoroughfares and highways? Will you need a car, or can you get where you need to go by walking or via public transit? These considerations are key to assessing present and future value, and resale potential down the road.

Do your homework on how the project and pricing compare to other projects in the area. There are many pre-construction projects on the market today, but not all offer the same features, finishes and amenities. How up to date are the technology features that are so valuable today, both economically and for convenience? Understand what today’s fair value is, as it is constantly evolving.

The reputation of the builder is hugely important. You need to be assured that the home you have put your money down on will actually be built. How many projects has the builder been responsible for and completed? Was the final product exactly what the builder had promised when pre-sold? Check the builder’s reputation with Tarion Warranty Corp. for insight on the reputation of the company building your new home.

Today, it’s important to fully understand the challenges of buying during COVID, as many deals are completed online through DocuSign. Talk to your broker, as well as your lawyer, and be sure you understand your obligations with a pre-construction offer. With safety in mind, you still may be able to visit a sales office.

Most important is that buying a new home or condo is a significant investment, and one you will be committed to for eighteen months to four years until closing. Buying early means buying with early pricing and incentives often offered only for a limited time. Ask for the right to assign or sell before you close; take the peace of mind that comes with that. If you need a mortgage, investigate options and compare rates to ensure you’re getting the best possible rate.

Remember, real estate is the most solid investment one can make today. Buying pre-construction has many benefits and little downside. It’s not to be taken lightly, but it can be a very exciting experience. Enjoy the ride.