Builders drop prices, but who really pays the price?

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This is a sad but cautionary read, (see link below) buyers need to be very cautious when buying pre-construction homes, in my opinion even more so than resale.

I have told many buyers in the last 18 months to steer away from over-priced freehold pre-construction and that the builders priced could not be sustained.  I felt they were 15-20% over priced (the market is now agreeing with me).

For the price this lady paid she could have bought a larger house that would, in my opinion, have been much better and she would not have had to live on a construction site for 2 years whilst the other homes were being built around her.

The other thing many unsuspecting Freehold Pre-Construction buyers are unaware of is that their deposits are not secured, whereas a condo project deposits are insured.

That means if the builders go bankrupt, or cannot complete the projects buyers may well not be able to recover their deposits.

There are many other things to take into account when buying pre-construction and its important that you get good advice when purchasing.  I am not saying "dont buy pre-construction" I am saying be cautious, review prices carefully, don't impulse buy and get professional advice.

Buyers feel that the sales staff i the sales centres are there to help them, and they are to a degree.  But the vast majority of them are not licensed REALTORS and, even if they are, they are employed to represent the builder and NOT you!  They will treat you fairly, but ultimately they are not working in YOUR interests.

So make sure you hire a knowledgeable Realtor on board who is very experienced in selling pre-construction and is working for YOU and your best interests, and a real estate lawyer who has a proven history of dealing with these very complicated contracts.

Rob is a GTA Realtor offering something a little "different", ask him about his money saving programs for buyers and sellers.

Contact him today for more details.

Sales Representative with The Red Pin Brokerage And Part Of The METeam