1. Talk to Industry Experts
The sales staff at a presentation centre works for the DEVELOPER, not you. Their best interest is to sell as many units as possible, while selling for as much money per unit as possible.
If you buy directly from a developer’s sale staff the Real Estate Council of BC even requires you to sign a Disclosure-of-Risks-to-Unrepresented-Parties. Make sure you read about the risks involved before you sign anything.
2. Do Your Due Diligence
Real Estate Development Marketing Act, Land Title Act, and Strata Property Act.
You’ll need someone who know these laws by heart, read the disclosure statements for you, and review the sales contract with you. This can be a real estate lawyer or a real estate agent who’s seasoned with pre-sale developments.
3. Hire Someone in Your Best Interest
The developer has hired a sales and marketing team to represent them in the sale of their project, to protect THEIR best interest.
Might be a good idea for you to do the same.
4. Know the Developer
Wouldn’t you like to know that the developer has done this before?
What’s the company’s track record? How did their past projects end up? How are their re-sale values? Are they known for delaying completion time? Have they been sued by previous buyers?
5. Know the Neighbourhood & Its Future Plans
Because the projects will typically take 2-3 years to complete, it’s important to know the growth potential of your community.
What does the municipality have in plans for this neighbourhood? Is there plans to improve the roads to withstand the increased population density? Will there be new schools or daycares? What kind of businesses will be in the community? Will your views be blocked in the future?
6. Ask The Right Questions:
Ask a lot of questions about the project.
When is the outside date? Can this contract be assigned? For how much? When can you start assigning? Can you change names on the contract? What’s the projected strata fee going to be? What’s the proposed strata operating budget? Is there going to be rental restrictions? Is short-term rental going to be allowed? Can I secure financing right now?
You should walk out of that presentation centre with the confidence of knowing all of these answers, and more!
7. Know The Market Value – Statistics and Comparable Sales
What prices are comparable properties trading at?
Is the developer selling at current market value, or are they selling on speculated future-value?
Have questions or concerns on a pre-sale you're interested in? Before you sign on the dotted line, give us a call at (604)781-9158.
- Joseph Liang, Associate Broker, Assure Real Estate Group