10 Reasons Why You Should Use A Realtor When Purchasing A Pre-Sale Deal
Buying a condo through a “presale deal’ is when you make an initial lump sum payment for the right to receive a finished unit at the end of the deal. It is a popular practice especially in the Lower Mainland, where there a number of condo projects currently under construction.
Some huge advantages to buying through a presale is that you can make portions of the down payment throughout the construction period and may have a limited say in the final design and finishes of the unit.
Having a realtor support you in your presale purchase is a best practice for the following reasons:
1. The Sales office of the building works for the builder, your realtor works for you
Your realtor works for you, is accountable to you and has your best interests at heart, whereas the sales agents are working for the builder and may not give you the right advice when it comes to purchasing the unit. While you may think you are getting a better price going directly to the sales office, you are doing this at the risk of your contract safety, and your realtor could have negotiated the same price for you.
2. Your realtor will be invited to VIP events
By virtue of his/her profession, a realtor will be invited to VIP events, which will give them access to the best floor plans and price per square foot of the development, before it is released to the general public.
3. It costs you nothing to use a realtor
In the case of presales, the developer pays the realtor a commission. So you get the experience, knowledge and services of a professional realtor for free, allowing you to concentrate on your day-to-day activities.
4. The risks are less when you use a realtor
By working with a realtor you will be made aware of the risks associated with the presale deal – legal, financial or personal. Should any unfortunate circumstances arise, such as a softening market, you are in a better position to address these types of risks with a realtor, than if you went ahead on your own.
5. A realtor will have contract knowledge and expertise
Realtors have been trained to understand and interpret real estate contracts. Having a realtor present to review the contract, terms and disclosure statement is very important, especially since presale contracts vary from developer to developer. Presales contracts are not the standard MLS contracts that protect the buyer and seller, the former are more inclined to protect the developer, so a realtor would be able to view the contract with your interests in mind.
6. A realtor can help you with, and smoothen the negotiation process
Developers prefer to work with realtors as clients who work with a realtor are made aware of the project ins and outs, thereby making the whole process smoother. This allows the sales team to spend more time on other clients. While price may stay firm, certain fees can be removed or capped within your agreement, which you would not have known about, if you did not use a realtor.
7. You get an unbiased view of the development
The sales staff at the development has one goal – sell units! They will sell you on the positives and skip over the negatives regarding the property. A realtor on the other hand, is obliged to show you the whole picture, ensuring that your best interests are at heart.
8. A realtor has expert market knowledge
A realtor has a number of resources on hand to give you an accurate idea of what comparable properties are priced at, so that you are not paying over market rates. You may be influenced by the slick presentations given by the sales agents. They may even offer you a discount on the unit, but this discount may have already been pre-negotiated with the developer and built into the profit margin. Also, a realtor will also be aware of the reputation on the builder – you as a member of the public may not be aware of this.
9. A realtor will take the emotion and stress out of the transaction
Buying a home is not a regular occurrence in anyone’s lifetime. It can be stressful, time consuming and emotional. A realtor is trained to bring a perspective to the process, allowing you to stay focused on your goals and see the bigger picture. They negotiate on your behalf, keep you aware of various developments and issues, and are there to lead you through the whole transaction.
10. A realtor can help you market the property
If you are an investor and are looking to assign your unit, your realtor can help you find a buyer, as certain types of advertising is not permissible by the developer. With tools such as the Multiple Listing Service (MLS), you will get a far greater sales audience.
The most important benefit of using a realtor when entering into a presale contract is that they have your best interest at heart. A realtor will represent you honestly, efficiently and ethically, and will assist you in making the best decision for your needs.
Looking to get into a presale? Please contact us or call us on 604 913 1000 / 604 695 1000 and we will be able to help you with our experienced real estate professionals.