BuzzBuzzHome Logo

 
Change Location
 
 
MATTHEW SLUTSKY
BuzzStaff
reply 1969 vote 68
 

Advice and Tips for purchasing pre-construction condos

Below are my Top 10 tips and hints for purchasing your new condo; little things to look out for when shopping...

What are your tips?

1. Check ceiling heights of the model-suite

Ceiling heights in most condos are 8-feet, 8'6", 9-feet or 10-feet, but their model suites have 16+ foot ceilings to make the suite feel more airy. Often the ceiling is painted black, with lights dropped down to the actual height of the suite-ceiling.

Tip: Ask the sales-agent where the ceiling will start in the suite you are looking at.

2. Model Suites have upgrades

Often the model suite in a sales centre will contain upgrades that are not standard in all suites, such as back-splashes in the kitchen and hardwood flooring throughout. It is important to understand what you are purchasing, and know what extras and upgrades you will have to pay for.

Tip: The model suite will always have a sign indicating what "upgrades" are being shown in that model-suite. Look for this, and understand all the upgrades. Do not fear asking the sales-representative.

3. Know your floorplan, and study it!

Paper floorplans are not easy to walk through. What may appear to be an excellent layout to the lay-eye might be filled with inefficient space, doors that swing into odd locations, and small unusable rooms. A 2-bedroom 520SF suite is in fact very tight!

A well known architect does not mean great layouts!

Tip: Imagine yourself walking through the layout, and actually using the space. A Realtor experienced in pre-construction would be an asset to helping you walk through these layouts. Also, there is a great conversation on this, here: http://www.buzzbuzzhome.com/Forum/default.aspx?g=posts&t=240

4. Ignore furniture printed in paper-floorplans

What size beds and furniture are shown in the layout? You may think that there is room for a queen size bed, but there might be a double in the layout! Often floorplans have "condo-sized" furniture shown in the layout, making it hard to imagine full-sized furniture.

Tip: Imagine the floorplan with no furniture drawn in, and ask for room dimensions.

5. Is the builder reputable?

Tip: Check the TARION website, and see if there are any "chargeable conciliations" against the builder, "homes with claims", and if so how many dollars were paid in claims? Also, talk to previous purchasers.

6. How is the builder's customer service?

Every year JD POWER releases their "New Condominium Builder Customer Satisfaction Study". Check to see where your builder is.

Further, ask for references from their previous clients and don’t be shy to visit some of their recent buildings and ask past clients about their experience.

7. Have everything in writing!

Have you been promised something by the builder? Maybe a parking spot next to an elevator? Get it in writing. Get everything in writing. There are a lot of people involved in the sale of your condo-suite, and it may not be ready for a few years. You might remember a little promise, but there is a good chance that it will be forgotten by the builder.

8. Does the advert look amazing? Do your research...

Check the builders website and the building website. Read their blog to see what they are talking about. Check Twitter and Facebook to see what people are saying about them.

9. Walk the neighbourhood

Amenity maps are often askew and not to scale.

Tip: Make sure you check out the proximity to local amenities in person!

10. An "artists interpretation" is an interpretation from an artist!

Renderings and scale models are great and fun. But, remember.. they are an "artists interpretation". The end product
17
Canada / General Chit-Chat
 
 
 
MK
Buzzer
reply 10 vote 2
 
 
2 BEST REPLY
GREAT tips Matthew!

one MAJOR tip with pre-construction - plan your life with a plan B. Most condos are not built on time and with delays - life happens. I worked on a new construction project a few years back which was delayed twice and in the end was delivered around 6 years later. At the registration party at the condo it seemed like there were far too many owners with babies - well, life happened. People went on with their lives as they waited for their condo to be ready - so plan ahead - is a 520 sq ft condo going to be ideal for you 4 to 5 years down the line?

Yes, i agree with Matthew read up on the builder - its so key! Yes, the building looks fantastic and yes the location is superb but some builders have the reputation of building cookie cutter condos with very low budget finishes and that could make or break your home ownership experience! so know your builders - most builders are now moving onto blogs etc but some still aren't - so do your research. Visit their other properties. Some builders change their names when they work on the next project if something traumatic happened with their last building - so it may be tricky to find out. That's where a realtor can help you out.

Customer service is also key. Some builders are not known to provide good customer service after you sign the papers. And this matters when you come down to choose your colours and move in. It has to be a smooth transition from the moment you sign till you receive your keys.

And i agree with the room dimensions - the marketing plans or the ones attached to your agreement of purchase and sale don't necessarily have all the room dimensions - demand those! you NEED to know exactly what you are signing up for. And i have heard horror stories where room dimensions have been changed after construction so you need to make certain you have what you signed up for in your records.

you have 10 days to think about it - recision period or cooling off period. Use the time to do ALL your research - don't get caught up in the hype of VIP sales etc. - make sure this purchase is the right one for YOU! Walk around the property - sometimes the sales centre is located in a nice location than the actual site itself - check it out.

MK
 
 
 
STEPHANIE STOUTE
Buzzer
reply 60 vote 3
 
 
1
Great tips Matthew!
To add to it: Understand the Legalities.
Often times builders will allow amendments to their standard agreements.
The two areas that are too often overlooked are Closing Costs and Assignment Guidelines.
I’ve seen a few people unpleasantly surprised with substantial closing fee’s and/or a “no assignment” clause.
 
 
SAMPAN
Buzzer
reply 33 vote 1
 
 
This's a good list, Matthew.
i'm not an agent. at some points it's good to have an agent to purchase your pre-contruction condo.
agents could let you get access to vip sales that could save you thousand dollars than the purchase price and give you pick the unit before the public openings.
cap development costs when making the offer if possible.
 
 
CARY CHAPNICK
Buzzer
reply 116 vote 12
 
 
my tip : Work with a BUYER BROKER
salespeople in condo sales centers work for the SELLER -- would you buy a house from the SELLERs agent.
Have representation looking after your needs...a serviceable real estate professional will provide you information, help save you money and work on your behalf.
Best of all - the BUILDER will pay your broker so you get this service for ZERO cost
 
 
AMAR PAL
Buzzer
reply 98 vote 7
 
 
1
Great tips!
To add on in regards to using a buyers agent; pick them wisely. Buying pre-construction and resale differ in many ways; and from my experience (usually selling pre-con) a lot of agents don't comprehensively understand what to look for when bringing clients in to a pre-construction situation. They're often unfamiliar with the types of contracts, legalities, risks, timelines, developers, buying off a floor plan etc.
Choose an agent who has experience and knowledge in working with pre-construction projects.
 
 
LEONARD THE BEE
Buzzer
reply 160 vote 3
 
 
Thanks to @Tridel for mentioning the following tip via Twitter:
"Make sure to ask lots of questions and know what you want from your condo. The Tridel Sales Reps are very knowledgeable!"
 
 
BRENT WILKER
Buzzer
reply 126 vote 2
 
 
1
Love this post, well done Matthew.
To your point #5, the "homes with claims" doesn't paint the whole picture, as builders will almost always resolve the issue to avoid this happening. The real story is how much effort and how long it takes to get them to do this.
To your point #6, look for a "customer service program" on the corporate web site, use review websites and even go as far as dropping by recently completed projects/homes; you will be surprised how many existing homeowners will gladly tell you about their experience, both good and bad. If the opinion is overly negative, take the time to ask what the details were. Buying a new home is a very different process then buying resale, and many first time new home buyers have unrealistic expectations (not understanding deficiencies etc). If you see a pattern of this, it could mean the builder has done a poor job at effectively communicating with their homeowners, which is the #1 complaint among new home purchasers in the JD Powers Studies.
 
 
MATTHEW SLUTSKY
BuzzStaff
reply 1969 vote 68
 
 
^^+1
 
 
DARLENE
Buzzer
reply 41 vote 1
 
 
1
Great tips. Here are a few more. Understand the difference between interim occupancy and final closing. At interim occupancy you will essentially be paying "rent" to the builder until the condo is registered. The money that you pay does not go towards mortgage payments, so be prepared.
Ask if you can make structural changes, and if so, clarify the costs. Nothing is done for free.
If the builder does have a chargeable conciliation noted on Tarion, that does not necessarily mean that they are a substandard builder. These things can happen. Make sure you ask more than one homeowner about the builder. One person can hate the builder while 3 people may love them. It's all a matter of opinion, personalities and experiences.
The most important thing that Matthew stated, and it's very true, get EVERYTHING in writing. Never accept a verbal promise, they can be conveniently forgotten or misconstrued.
 
 
KEVIN SMITH
NewBee
reply 1
 
 
Check out the parking space, because it is an important part of the condo. Before signing any contract just get information about the condominium fee and any other charges if they apply.
_________
st regis balharbour condos
 
 
MATTHEW SLUTSKY
BuzzStaff
reply 1969 vote 68
 
 
There was a recent post in GridTO that talks about "How to read a Floorplan", here: http://www.thegridto.com/life/real-estate/how-to-read-a-floor-plan-like-a-pro/
Summary of the ten tips:
1. Windows
2. Entrance
3. Doors
4. Living/dining area
5. Flow
6. Wasted space
7. Angles
8. Storage
9. Location
10. Kitchen appliances
 
 
ALLEN
Buzzer
reply 129 vote 34
 
 
1
here's a few more tips to add:

- Find out where the garbage chutes are located. You don't want to have a unit next to one because they are noisey and sometime smelly.

- Try not to have the entry of the door facing the elevators or at the end of a long corridor. Noise travels down a hallway and you don't want to hear the frequent 'bing' of the elevator.

- If you buy on the floor below an amenity level make sure it not under the gym (the sounds of weights and machines are often loud or jarring), or under a pool (potential for leaks or cracks).

- If you purchase a parking space or locker, see if you can choose a spot. Look at the floor plans and try to choose one that is near the elevators or is easily accessible. Also some locker spaces could irregular in size or shape which may or may not be good for the stuff you will be storing.

- See if you can do some changes to your unit such as electrical, etc. Some developers do not allow any changes to the unit, however minor it may be even if it may be adding or changing the location of a light switch or outlet.

- Structural changes are almost never allowed, unless you are paying a lot of money to combine units together. Changes to structrual elements will affect the entire building which are very costly and time consuming.

- Developers have the right to change the finishes and features that is originally shown in the sales centre and marketing materials. Some developers will state that any subsitutions must of equal or greater value, however some may not. Get this clarified in writing.

- Be aware that if you purchase on a low floor of a building, you will most likely will have to wait a while for your unit to be titled/building registered after taking possession which means you will need to pay rent to the developer as you can't apply your financing to your place before you get title.

- Look around the neighbourhood and block to see if there is a potential of any buildings to be built that may affect your views and light. Having a unit facing a street, park, or newer or established residential buildings would be your best bet.

- Also walk around the neighbourhood at various times of the day and night to guage the amount of traffic, safety, noise, and activity of the area.

- Find out the where the nearest police or fire station are located. You don't want to be living near one or on a street that is on route to one especially if you are on a low floor because of constant siren noise.

- Find out if BBQs are allowed on balconies (though this may have to be determined later on by the condo rules and regs), having a gas line is big plus as it guarantees that you are allowed to have a BBQ, providing it is natural gas.

- Condo Fees that are stated are just a guideline and not a guarantee. Usually the actual maintanence and operational cost of the building could not be properly assessed until after the first year of occupancy at the very least. A building with a high number of renters may suffer from higher maintenance and repairs due to wear and tear and turnover, and some buildings with lots of amenities or a typical amenities will require higher upkeep. Pre-con condo fees that may seem low will definitely go up after the first year.
 
 
TONNY GARDEN
NewBee
reply 1
 
 
The main thing that we should always keep in our mind before purchasing a condo; our builder should be experienced and reputable. We should not deal with a new builder otherwise all the drawbacks we will get in our condo.
______________________________
miami beach realtor
 
 
THEBRELTEAM AT SAGE
Buzzer
reply 10 vote 3
 
THEBRELTEAM AT SAGE
Buzzer
reply 10 vote 3
 
 
Oops, I got all excited an added an exclamation mark to the link...proper link is:
http://www.getwhatyouwant.ca/2012/03/26/top-10-things-to-consider-when-buying-a-condo-in-toronto/
 
 
BRENT WILKER
Buzzer
reply 126 vote 2
 
 
tonny said:
The main thing that we should always keep in our mind before purchasing a condo; our builder should be experienced and reputable. We should not deal with a new builder otherwise all the drawbacks we will get in our condo.


Couldn't agree more.
 
 
ALEXANDER KVITNITSKY
Buzzer
reply 51 vote 6
 
 
whether a builder is reputable or not does matter!!!

If you do chose to go with a company that is fairly new, and god forbid something does happen; you should still have the peace of mind knowing that any brand new construction is covered by Tarion.

There's obviously some exclusion as to what they wouldn't cover; which for example be a construction that is taking place on an existing foundation. (ex. commercial buildings that are converted into lofts)

Hence why hiring a professional to stand by your side when you're making that major purchase is vital.
 
 
 
 
 

Add a Reply

Login or Signup to add a reply
 
Follow

Search

Search Conversations:

 

Check These Out

150 East 72nd Street, Condominium

150 East 72nd Street

150east72.com

Condominium

150 East 72nd Street New York New York

From $6,030,000 To $11,500,000

 
Halcyon Condos, Condominium

Halcyon Condos

www.halcyonny.com

Condominium

305 East 51st Street New York New York

From $1,500,000 To $5,000,000

 
 

Welcome back!

We think you might have cookies disabled - if you do, you'll need to enable them before logging in.

Forgot your password.

Enter your Login Email below to reset your password.

Loading logo

Roger that.

We've sent you a link to reset your password. Now go check your inbox!

Join the Buzz

Email is valid
Password is valid
Full name is valid

I'd like to receive BuzzBuzzHome's weekly e-newsletter on all the latest real estate buzz.