Buying a NEW CONSTRUCTION Condo in Toronto? What You Need To Know BEFORE You Visit The Sales Office
Most people are unaware that when they go into the sales office for a new condo development, the sales staff there to help you work for and represent the interests of the builder so it's a good idea as a potential buyer to have your own representation with you.
Retaining your own real estate agent to represent you in your new construction condo purchase won’t cost you anything and could actually end up saving you plenty of time and money. A good real estate agent not only represents you in the transaction with the builder, but also ensures you understand the process of what you are buying and clarifies all the hidden costs of your purchase.
In buying a new construction condo prices are not negotiable however your real estate agent can negotiate that certain charges like builder administrative fees or community and education levies be taken out or capped.
In launching a new condo project, builders have VIP events in which they invite real estate agents to bring their clients prior to opening the project up to sell to the general public. This gives your realtor the opportunity to obtain the best floor plans and the best prices for you.
Even though your own real estate agent’s commission is paid by the builder, your agent is independent of any particular condo developer. Therefore your agent can educate you as to all the new developments that may be coming up without bias to a particular builder or condo development.
How do you know the price the builder is asking is fair? Price guidance and comparison may be the most important asset of retaining your own real estate agent when buying new. Not only can your real estate agent inform you of current market conditions in the new construction and resale markets, but your agent can also provide you with asking prices of units in similar developments and what comparable units in newly built buildings are selling for on MLS.
A good real estate agent will be able to give you insider knowledge of the neighbourhood as they are aware of new construction proposals for both new residential and commercial building projects that are coming down the pipeline and even paint a picture as to how the neighbourhood skyline will look two or three years down the road when your new condo building is finally finished.
Why limit yourself to just one project? The builder’s sales staff are only familiar with their own units in their own project. Not only does your own real estate agent have access to information on all the new condo developments in your neighbourhood but a good real estate agent is also aware of buying opportunities of new construction units for you in the resale and assignment markets as well.
If you like the idea of living in a new condo but you don’t want to wait a few years for the project to be built then exploring the resale market of newly built condo buildings may be for you. Often times newly built and registered buildings have several units available for sale on the MLS that have never been lived in and are available for immediate occupancy. This also eliminates the guesswork of wondering if the floor plan can accommodate your flat screen television or if your view overlooks the garbage dumpster as you can see the unit for yourself and know exactly what you are going to get.
Had your heart set on a particular new condo project but you didn’t move fast enough? Now the development is all sold out and they’ve even broken ground and are starting to build. Buying an assignment might be for you.
An assignment is basically buying a right to own a condominium that is either not built or not ready for occupancy and has not been registered yet with the Land Registry System. Sellers of assignments are usually people who bought into a new condo project when it was first launched but now realize their plans have changed and want to sell their right. So even though a new condo development has sold out there still can be buying opportunities in the condo project through assignment and a good real estate agent will be able to find these assignment opportunities for you.
Victoria Boscariolis a real estate agent in Toronto Canada with Chestnut Park Real Estate Limited Brokerage. With over 20 years experience, Victoria has been helping people successfully buy and sell condos and houses in Yorkville and downtown Toronto. As a Certified International Property Specialist (CIPS) she has worked with Buyers from around the world moving to Toronto from China, Russia, Brazil, India, South Africa, United Arab Emirates, Jordan, Cyprus, Italy, Germany, The United Kingdom, Australia and the United States.