Is Pre-Construction Right for You? What to Know Before You Buy
What is pre-construction, and can it really be a smart way to buy or invest? It can, but it’s a very different process from buying a resale home.
New construction vs. pre-construction
- New construction usually refers to a newly built home that’s completed or close to it.
- Pre-construction means buying a home before it’s built, sometimes before the builder has even broken ground. You buy from floor plans and renderings, then wait months or years for completion.
Why people buy pre-construction
- Time to save. Deposits are often spread out over months, giving you time to build your down payment.
- Brand-new home. No major repairs to worry about for years.
- Customization. You often get to choose finishes and upgrades.
- Potential appreciation. If values rise during construction, you may gain equity before you move in.
The risks to understand
- Rising costs. Municipalities have been increasing development charges, and builders may pass costs on to buyers. Read your agreement carefully for any adjustments or closing costs.
- Delays. Completion dates can shift.
- Market changes. Your home could be worth more, or less, by the time it’s finished.
- Financing. You’ll need to qualify for your mortgage at closing, not just when you sign.
Work with someone who knows the process
Pre-construction has its own rules around deposit structures, assignments, builder agreements and cooling-off periods. Talk to someone who has done it many times and knows the ins and outs.
A pricing tip from Joe
On two recent resale listings, the Right Choice team listed a little higher than first planned. Why? There was a gap in the market, with no competing homes in that price range. By placing the homes there, they had no direct competition, got multiple offers and sold over asking. Knowing your competition matters, whether you’re buying new or selling resale.
Exploring new homes?
Browse projects at new.rightchoice.ca or reach out to talk through your options.
Call 289-276-1716 or contact us.
