First-Time Pre Construction Home Buyer’s Guide: Steps For Buying
Owning a home or buying a pre construction home is usually everyone’s dream here in Canada. Many individuals usually want to taste how it feels to call a home theirs for good. Bet there is no good feeling comparable to that. Unfortunately, that is never easy as it may sound, and the dream of owning a house may be doomed. The reason is that brand new houses for sale are so damn expensive. If you want to own one, you might have come across a weird amount of cash, averaging nothing less than $300,000 for a family home.
Getting such cash all at once means you either earn super friendly salaries or have been highly disciplined with your long-term savings. The sad news is that most people live under that graph, making it super hard to own new construction homes.
Getting started with pre construction homes?
Good news is here with us, folks! If you are looking to buy a house in Ontario with a low income, you can easily own a home by investing in pre-constructed homes. These homes are designed by real estate companies based on a community structure and units sold to customers before or during construction. You can turn your dream into a reality and be the next homeowner in town.
Unlike purchasing an old constructed home all at once, you will have to pay a deposit fee and other extra charges and wait patiently till the project is complete. Only then can you move in or choose to rent out. That sounds cool and has eased off the burden on new home seekers.
This article will provide you with all the necessary tips, requirements, and steps to buying a house when investing in pre-construction homes.
How to buy pre-construction homes.
The process of buying a pre constructed now has gotten more straightforward and much easier thanks to the swift measures. Any new home hunter can quickly sign up for a real estate development project and secure a condo or townhouse of any unit of their choice. That easy process has reduced the burden previously felt by first-time home seekers.
Below is a brief procedure to guide you into your new home;
Step 1: Find a builder/ community.
This is the initial action you have to begin with when looking to purchase a newbuild home. Finding a builder/developer or a community under development kickstarts the entire process of new home hunting. It would help if you did not hurry in this stage since patience will be crucial in finding nothing but the best developers to invest with.
For beginners, this process can turn out to be quite hard due to the nature of the procedure. To help you manoeuvre through the process lightly, perhaps you might want to try out with a real estate agent. A realtor will be of great importance thanks to their prowess and first-hand experience in matters related to real estate.
A good realtor will aid in finding the perfect locations and community to invest in and the best builder and developers to work with. Besides that, you also get help on matters related to budget, hidden expenses, and other vital information that may be hard to reach. On top of that, the realtor will help you find the best time to buy a house in Toronto if you dream of living there.
Once you get a good builder, go deeper and conduct insight research to learn more about the developers. Previously completed projects, records, reputation, and customer reviews. You can choose to get that information from a realtor or make It your assignment.
Step 2: Check out the location and visit the project site.
You might want to explore and check where your next dream house will be situated. Therefore, after checking out the developers, you can now head over to the location under which the project of unit you are eying is being undertaken.
Doing so will help you familiarize yourself with the surroundings where your next newbuild home will be situated. While doing that, you also will check the surrounding amenities within your future premises. That includes different amenities such as shopping centres, stores, hospitals, schools, and gyms. And also, do not forget the proximity of these amenities to your unit.
Step 3: Check out the home model
You cannot miss out on checking up on the model of your future home. This step involves you as the customer inquiring about a model of the proposed home yet to be built. While in this phase, you are advised to be extra vigilant and take note of every upgrade and feature. That is because the model homes come with extra specs and features not found on standard homes.
Remember, these features will come at an extra cost burdening you. To simplify, inquire from the developers about the features that come as standards and those that come as upgrades. The good thing is that you negotiate with the builder about the cost of getting these upgrades, such as garages.
Step 4: Utilize the cooling-off period
The cooling-off period is a mandatory period that comes in place once you’ve shown interest in investing in newbuild homes. You can go forward with the procedure or terminate the agreement during this period.
If you choose to proceed with the investment, there are a couple of things you’ve got to work on. First, secure a lawyer to walk you through the purchase agreement. After that, you can secure a mortgage loan if you have not done that previously.
Step 5: Home customizing.
Once the construction process kicks in, you can contact the builder and discuss various designs and styles you want to be incorporated into the unit. You can work with them on selecting the perfect colour, the right upgrades, and finishes.
Step 6: Interim and final closing.
During the interim phase, you must ensure that any pending payments are met. The process needs a lawyer who helps iron out the procedures well. Once you’ve cleared the interim stage, call the lawyer again for the house transfer from the builder to you. That is the final closing stage.
Are new-build homes more expensive? Hell yeah, a newly built home is more expensive than an existing one. However, pre construction homes are the perfect homes for individuals not already built up in terms of finances. Newbuild homes come with several pros that you might want to check briefly;
- Flexible payment methods
- Modern styles
- Low bills
- Engagement in design
Again, is buying a house in Calgary a good investment? Yes, you are good to go if you plan to resale the unit or rent it out. Also, you will enjoy the advantages above and escalate your dream of owning a home closer.