Living in a brand spanking new home or condo has a lot of appeal!  You get to choose the finishes and appliances so they match your style and you shouldn’t have to make any major cosmetic or structural changes for several years.

The builder will have their own agent’s ready to help you but it is important for you to have your own agent in this process.  The reason being is that the builder’s agent’s first priority is to serve the builder aka the seller. The builder will want to get the best price for his property.  Your agent is there for you, to get you your best price and protect your interests.

Bringing your agent to your first meeting is key as it lets the builder know you’re working with your own agent as it is the builder who will be paying their commission.  In addition to negotiating the best price for you, your agent will also help negotiate extras such as upgrades and help you source the best financing option. Realtors have access to VIP events hosted by the builders.  If it feels like things sell out before they even go on sale, this is one of the reasons why.

Another important aspect of buying a new build is the “Right To Assign.“ Once a property has been built there is period called interim occupancy followed by the registration of the condo. You as a new buyer may want to assign your agreement (sell your rights) at any time during this lengthy period and you may be just selling a piece of paper. The purchase agreement must detail any fees and conditions related to this privilege.  Many builders won’t allow you to assign and you should know this before you buy.

New builds can be eligible for HST rebates from the government.  A realtor can explain how the HST will affect your closing costs.

New build condos have other factors to take into account.  When buying a new condo in Ontario, there is what is called a Cooling Off Period.  A realtor can educate you about the details of this and how to proceed if it is something you decide to take advantage of.  A realtor can also explain to you how the interim occupancy costs work and how the builder calculates these charges. Condo fees are generally underestimated by builders for a variety of reasons and you should be aware that the fees that may be quoted can escalate and sometimes very dramatically in the first few years.

In short, your realtor knows the right questions to ask.  Give us a call or send us an email!