There are many mistakes Toronto condo buyers can make when purchasing pre-construction condos. These errors could cost you money and time. As they say, it’s best to be educated, instead of ignorant.
Below are the most common condo real estate mistakes, and how you can avoid them.
Not Finding a Personal Realtor
Many Toronto pre-construction condo buyers assume they’ll have to pay a hefty fee to hire a personal realtor. However, that isn’t the case. You could actually spend more money by not hiring an agent.
Real estate agents who are familiar with the Toronto condo market and specialize in pre-construction condo sales can teach you a thing or two about what to do when buying and what not to do.
While the pre-construction crew of sales agents may seem like the nicest people, you aren’t’ their number one priority. These sales agents work for the developer and are interested in their end game, and how much money they add to their pocketbooks – not how they can save you money.
When you want to buy a pre-construction condo in Toronto, hire an expert who can expertly negotiate on your behalf. They can cut out unnecessary fees, and work out a deal with the condo sales representative, so you don’t have to pay out of pocket to hire them.
Not Having a Pre-Qualified Mortgage
One of the biggest mistakes you can make is assuming you’ll qualify for a mortgage. There is no way to tell 3-5 years from now when the project is complete that a broker will approve you for one.
Reach out to mortgage brokers before you have to close the deal to ensure you qualify. While you may be eligible for one now, no one is going to lend you a mortgage that far in advance.
Not Planning for Your Future
Many buyers don’t think of their future life. Instead, they think in term of their current life. It can take an average of 3-5 years for a pre-construction project to reach completion. That’s a lot of time for things to change.
Whether you’re planning to flip the condo, or let it become your future home, think of the future. It can be hard to pinpoint what will be. Sometimes unexpected things happen like marriage, pregnancy, or a new job. Think of the future before you sign the contract.
Thinking “Turn-Key” and “New” are Synonymous
It’s easy to think that buying a new pre-construction condominium in Toronto means you will be worry-free and problem-free come move-in time. But that’s not the case at all.
Even though a condo is new there can still be problems and flaws with the new building. Buying pre-construction means you’re relying on the developer and builder to have everything perfect. Unfortunately, that’s easier said than done. Think ahead, save yourself a headache, and invest in an inspector to advise you along the way.
Have them inspect the property when you move in, and again before the Tarion protection expires so you can resolve any issues.
Believing Plans Will Never Change
There are countless stories of buyers who end up with a condo that looks nothing like the original blueprint or plan they signed up for. Pre-construction projects are often riddled with issues like delays, and sometimes they even get canceled.
Nothing is finalized when you purchased a pre-construction condo in Toronto. Nothing is set in stone. What you think you’re buying may not look like you what initially thought, so be prepared, not surprised.