Buying a pre-construction home is not just like buying any random commodity in the market. There is a procedure that you have to follow if you want to buy a pre-construction home. Before you start planning how you will buy a pre-construction home, you should be well versed in the steps to be followed in the buying process. Pre-construction homes are attracting many potential buyers nowadays and therefore you should be aware of the buying process so that you can also get into the market and get yourself a home. The following steps explain how to buy pre-construction homes.
- Research the builder
After you have located a pre-construction home project, you will have to do research concerning the builder. This research will enable you to at least know the reputation and the completion rate of the builder you are seeking to work with. Knowing the reputation and completion rate will help you in making an informed choice as far as working with the builder is concerned. You can find out that information by looking at their reviews online. You can also visit a few of their completed projects and get to speak to the homeowners. Whatever the homeowners will tell you will be of value as far as making a decision is concerned. You can also ask your real estate agent to tell you more about the builder. Don’t just buy a house blindly. Make sure you do thorough research before you can put your money into any project. You have to be sure of what you are investing in.
- Have a look at the pre-construction homes directory
A pre-construction homes directory will give you more information regarding the builder. In such a directory you will be able to see if the builder is licensed to build in that particular area. You will also see how many houses they have built so far. This will add more weight to the research you have already conducted in the first step. If you are located in Ontario you can use Ontario Builder Directory to confirm all these details regarding any builder you want to get into a deal with. Even if the builder has been involved in any illegal building convictions in the past 10 years you will be able to see.
- Visit the project site
You have to visit the project site because it is important. Visiting the project site will enable you to have a glimpse of what the neighborhood you will soon call home looks like. You will also get the chance of seeing how far the home will be from important amenities such as schools, hospitals, shopping centers, and recreational facilities. Knowing how far these amenities are from your potential home will help you to know how you will be planning yourself whenever you want to access services. If you are not sure of the location of the site, your realtor can help you with that.
- Get to see the model home
Visiting the model home is another fundamental step that you cannot afford to miss. When you visit the model house, you will be able to see a clear picture of what your house will look like. As much as the model home will represent what your home will look like, always remember that there could be some features that will lack in your home, and yet you saw them in the model home. This means that some of the features are standard while others are upgrades. The ones you will miss in your homes are upgrades and therefore you will have to incur additional costs before you can get the upgrades. To be sure about the features, the real estate agent will help you to differentiate, and at the end, you will have a list of the standard features and that of the upgrades. The list of upgrades will highlight the costs to be incurred and so you will be sure of the amount to invest if indeed you need the upgrades.
- Include all verbal agreements into the deal
This is one of the most crucial steps. Here you will need to agree and put everything into writing. All the agreements you had verbally will need to be recorded down and signing takes place so that you can be on the same page with the builder as far as the deal is concerned. All the important aspects and agreements of the deal must be included. It is here that the builder will assure you of what will happen in the case of construction delays, the project being canceled, and many more.
- Cooling off period
This cooling-off period is usually a 10-day period where you take time to do some checks here and there. This is a common thing whether you are investing in a condo or a single-family home. During this time, you can do more research on the builder and the neighborhood among other important things. It is also during this time that you can decide to pull out of the deal if you don’t find it to be worth it.
- Customize your home
Customizing your home will take place during construction. Once you visit the site during construction, you will be able to bring forward your customization suggestions which will be considered by the builder. Some of the things that you customize are colors, upgrades, and finishes among others.
- Conduct inspection
After the house is fully constructed, you will be required to do an inspection. This inspection is usually done to ascertain that everything has been done as per the buyer’s wishes or what the builder promised to offer. If there are any problems, make sure you raise them and the builder will sort them out.
- Interim and final occupancy
This is the last stage, here you will meet with your lawyer at the interim occupancy stage. During this time, you will be able to clear any outstanding deposits if there are any. At this stage, you still don’t own the house. The second time you will be meeting your lawyer is after the final closing date. It is this time that all documents will be signed and you will acquire ownership of the house. You will officially become a proud owner of that apartment unit you have always wished to own. It is at this time that your mortgage will begin.
In summary, you have to keep in mind the steps mentioned above if you want to see yourself becoming a homeowner. It is easy to buy a pre-construction home. Just believe that you can and you will surely acquire that apartment unit. These steps cut across the various cities that you can wish to buy a home and settle in so don’t think that they apply only to specific cities.