Tips for Buying Pre-Construction Condo Units

Due to the increased appetite for condos in Canada in the last couple of years, the real estate market has gained a new product: pre-constructions. If the current Kelowna BC condos for sale don’t meet your requirements or satisfy your needs, you can always choose a pre-construction. This means that you will buy the condo before it’s finished (or, sometimes, before its construction begins). In this case, you are actually buying the plan and, afterwards, wait patiently for your condo to be ready. But how can you be sure that you have made the right choice when you don’t even get to see the condominium before buying it? How is the pre-construction market evolving in Kelowna, BC and what can you do to make sure that you get a good deal?

Read the offering plan very carefully

The offering plan usually includes everything regarding your future condo, from appliances to tax information and special risks, such as the rental of unsold condos in the building. The offering plan is the only one that legally binds the developer. The brochure, your discussion with the developer, their billboards are not legally binding. You will only get what is mentioned in the offering plan so read it very carefully. Have your real estate agent and your lawyer look over the plan before signing anything.

Expect to pay a bigger deposit

Usually, the deposit for a condo is somewhere around 5%. But in the case of pre-constructions, the developer needs to have to money to fund the project, so the deposit will be bigger, somewhere around 15% – 20%. In many cases, there is a fixed amount between $3000 and $5000 you need to pay when signing the contract, followed by a percent of the total cost of the condo. If you are going for a pre-construction, don’t expect to pay the same deposit you would pay for an already built condo.

Get as much information as you can about the quality of the materials

Your offering plan should include information about the materials used in the construction of your condo. If you are like most people, you have no idea about the quality of these materials, but, before signing the contract, you should get informed. Ask your agent about it and have them send you a detailed analysis of the quality of the materials. Having a top realtor that is passionate about houses and architecture helps a lot.

Expect some delays

The developer will provide a completion date for the condo, but don’t pack your furniture just yet. Usually, in the constructions world, there are numerous delays. This doesn’t mean that you should wait ten years for your condo to be ready. Usually, delays are between 6 months and two years, but you can state in the purchase agreement the penalties the developer will have to pay if they delay the project for more than a specified period.

Last, but not least, make sure that the contract between you and the developer is very clear when it comes to reasons for ending it. Consult with your lawyer and realtor and be very specific about the problems that can arise that give you the right to walk away without any penalties.

Pre-constructions can be an excellent way to get a customized condo, built especially for your needs. But you will need a top realtor from G&G Real Estate to join you in this adventure and make sure that the outcome is exactly the one you have hoped for. Get in touch with one of our amazing real estate agents and get your Kelowna condo, tailored to your personality and lifestyle.