Buying a New construction Condo in Toronto
The condo market in Toronto has been very exciting and been growing at a rapid pace. That being said when you visit a sales office you want to make sure you don’t get caught up in the hype and buzz that is in the air. That can often lead to mistakes in what you’re hearing and seeing. It’s important to understand that the sales people that work in the sales office are working for the developer and their job is to sell out the building and their fiduciary duty is to them, not you the buyer.
Why Should I hire an agent to help me with this process?
It doesn’t cost you anything to hire the agent because the developer will pay them. The agent will engage you in an Agency Relationship. The relationship spells out their role and fiduciary duty to you. Having your own agent could save you plenty of time and money. Your realtor will explain the process to you in detail and be sure you understand the process of your condo purchase. They will also help to clarify any hidden costs that are associated with the purchase so they don’t come up short on closing and have to scramble for extra money.
Another benefit your agent will be able to offer you is advance previews on new developments. In the launch of any development the builders have VIP events where they invite agents and encourage them to bring their clients prior to the opening for the public. Advance viewings gives you a chance at the best floor plans and prices.
Are prices negotiable When buying a new construction condo? Prices are not negotiable.
Your agent can negotiate some charges like education levies that can either be taken out or capped and administrative fees. The sale representative that is working at the sales office won’t get into these details.
How do I know the price the builder is asking is in line with other buildings?
Your Realtor will be able to help you to understand the values of buildings with comparable sales in comparable buildings. Your agent will also be able to make you aware of Market conditions in the new construction and resale markets. Often looking at comparisons in newer buildings that are complete and have sold on MLS will help to give you confidence in what you’re buying. Your realtor will also be able to share with you any other developments that may be coming to market that haven’t been exposed publicly yet. That will also help you to see how things are going to look in your new neighbourhood in 2-3 years when your building is completed.
Have you done your due diligence of checking out other projects before you make the commitment to purchase?
When you visit a sales office the sale representatives are there to sell that particular building. They wont offer you any information on any other projects, as their job is to sell the suites in that building. Your realtor will be able to give you information on other opportunities available to you as well as properties in the resale and assignment market.
Is living in a new condo is what you want but aren’t sure you want to wait 2-3 years?
One option you might not be aware of is that in many newly built buildings that haven’t been registered yet. You could buy something that no one has lived in yet. The advantage to this is that you don’t have to imagine what your condo will look like as you would have to with a floor plan and model suite. What you see is what you will get.
Did you miss out on buying in a new building and are sorry you too to long to get there?
Often people aren’t ready to make the commitment to buy right away and want to educate themselves first. This is a good thing to do but can also lead to some disappointment. Sometimes what we really want is the first thing that we see but we are nervous or not ready to take the plunge. After looking around they find that the building they really want has sold out. With a Realtor they will know about units that can be purchased through an assignment. An assignment is buying the right to own a condominium that has not yet been completed or registered with the Land Registry System.
Why do people want to assign their condo purchase?
Often time’s people make decisions to buy a condo for reasons that are valid and real to them at that time. In the waiting process of the condo being built their plans change and they realize that they aren’t going to want to close on that condo. These people will often have their real estate agent put the condo for sale as an assignment. Not all developers allow them but most will with some associated fees.
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