Do You Need a Realtor To Buy A Pre-Construction Unit in Toronto?

The Importance of VIP Sales Access Through A Pre-Construction Agent In Toronto

Why is a realtor necessary for buying pre-construction condominiums, houses or commercial properties?

The short answer is, you don’t necessarily need a realtor – BUT it sure does help.

Why is this the case? Specifically in huge markets like Toronto that are constantly shifting with a slew of regulatory bodies and legislation, it’s important to have someone on your side that knows everything. Having a realtor or real estate agent in Toronto is important, but choosing one should be limited to those that deal primarily in pre-construction.

Why?

VIP access is generally referring to day-one access or the very first sales date of a pre-construction project.

In Toronto, you may have noticed that there are many sales centres and sales offices. A person can walk in and take a look at floor plans, prices and unit availability of different condos and homes available for sale before they are built.

Pricing and Incentives For VIP Pre-Construction Sales

The problem is that sales centres with public access tend to have much higher prices than day-one prices that VIP brokers and agents have. Often times, these same agents selling before public availability can give their clients special incentives. These incentives may include free parking, savings on impending costs of ownership, appliances and sometimes a hefty discount on purchase price.

This is very important for pre-construction investors in Toronto. You buy pre-construction condos or homes to make a return on your investment. When you go into a sales centre alone, you will not get the best prices or be able to take advantage of special offers before everyone else.

Your Realtor Can Give You Complete Information on Pre-Construction Procedure

VIP Sales access means that you will be the first of many buyers. You are the very first one to put money as an investment into this condo or housing project. A good realtor can give you complete information about the process and timeline of a project.

The idea when investing in real estate is to:

1. Pay less than the market value of a condo or home currently.
2. See your condo or house increase in value faster than a similar resale property.

A realtor that specializes in pre-construction can guide you here. You want to know about a slew of things that might be specific to this project, or builder that you may not think to ask.  These encompass taxes, fees, reading building plans, assignment clauses, future return on investment based on the area, condo fees and many more things.

VIP Pre-Construction And Assessing Risk In Toronto

The biggest part of this is at the VIP day-one sales, is determining the RISK of the investment. To narrow this point, we want to look at the possibility of whether you might be investing in a building that will not be built.

While you ARE generally insured against losing your deposits for your unit in the pre-construction phase of project in Ontario, you lose time. Timing is one of the most important elements in investing. Even if you get your deposit back on a project that isn’t built, you cannot get that moment in time back.

There is an opportunity cost to this type of investment and in this case, prevention is the best cure. An experienced sales agent will know which builders/ development companies will most reliably produce the best buildings. You can’t see the physical product for years in the case of pre-construction, so it’s important that your realtor knows which companies to trust.

Your pre-construction representation should look for builders that are known for:

• Completing projects on time
• Producing a building that is aesthetically pleasing
• Having a high quality end product
• Having a project with reasonable monthly costs

These are just a few examples of what an experienced agent will know and there is certainly a lot more factors that are absolutely non-negotiable in VIP day-one sales.

There are so many factors in buying a pre-construction project, ones that are directly related to VIP sales, but some can be more generally things you just need to know. We will post future blogs related to other elements of property investing and purchasing that you ought to know.

For now, we can be quite certain that our representation in your next pre-construction purchase would be a wise decision.  We have the connections with builders, the experience and the patience to guide investors or prospective owners at any experience level. We want your pre-construction purchase to be seamless.

We select only projects that we think will yield a high return on investment for our clients, and take special care to make sure the terms are the best possible. We want you to get the best products at the best prices.