Knowing the facts about the real estate market, specific developments or locations, and the many types of transactions available is the first priority of every realtor working for a client looking to buy.
In my practice, I place transparency above all other values: it’s what I expect from my clients, and it’s what they demand from me. Frankly, there isn’t an industry in North America that hasn’t been challenged to increase consumer transparency over the past few years, as technology puts so much information at our fingertips these days, and consumers expect companies to be honest and forthright.
Pre-sales (buying a condo or townhouse before they are completed or have started to be built) is something I have been asked a lot about in the last six months with the new developments being offered for sale in Gibsons and Sechelt.
Here are three insights on buying pre-sale on the Sunshine Coast.
Don’t listen to rumours
Being the listing realtor for the Eagleview Heights development, I regularly hear clients, potential buyers and even other realtors recount third-hand information that bears no relation to reality.
Being small communities, rumours and misinformation spread faster here than they would in larger centres so the best thing to do, if you want information on a development, is to call the town or district office that they are located in and request information.
Another good way to get information about a project is to visit the sales centre and speak to a representative.
For the record, Eagleview Heights is moving ahead, we have completely sold out of garden suites, have only three town homes left and are approaching 50 per cent sold in Phase 1. We are well ahead of our projections and most of our buyers to this point have been locals, which we are very happy about.
Hire a lawyer
When you buy a pre-sale in BC, you have a seven-day right of rescission period after these two steps are complete:
• You, the purchaser, sign a form acknowledging that you’ve read the Disclosure Statement. This outlines critical information about the construction, builder, and budget, of your new home, amongst other details.
• The contract of purchase and sale is signed, complete, and therefore, legally binding. The seven days don’t begin until the last counter-offer, and all associated terms, have been agreed to by both parties.
Even if you are working with a realtor experienced in pre-sales in general, or a particular project specifically, you should still have a lawyer review the developer’s disclosure on your behalf prior to moving forward with the purchase.
When buying a pre-sale there is delay between signing on the line and moving into the finished home. During this time, things can change and you may find yourself looking to assign (sell) the property prior to completion.
Make sure you discuss this option with your realtor and lawyer during the rescission period so you have a clear understanding of your options and the process should it be something you need to do.
Tony Browton is an award-winning Realtor who lives and works on BC’s Sunshine Coast.
His weekly blog can be found here http://www.truebluerealty.ca/blog