Buying new construction is a completely different ballgame compared to an existing home. We’re walking you through the process step by step so you’ll be prepared for whatever comes your way!
The process
Step 1: Speak to your real estate agent.
You should reach out to your agent right away because if you contact the project first, the developer is not going to let your agent in. Once you walk through the sales office, they consider you their client, and they will not allow any external representation.
Step 2: Select your lot.
This is the unit you want to purchase. You’ll get to see a plan that details everything that’s going to be built, then choose which specific lot is the right one for you.
Step 3: Get to a final price.
Just like when you walk into a car dealership, everything’s an add-on when you’re buying new construction. Whether that’s the grass outside the driveway, the fence, the interior furnishings, soft-closing doors … anything of that nature will probably come at an additional cost. With new developments, it’s rare to knock much money off the asking price. Instead, you can try to get a few upgrades included in the original price.
Step 4: Choose your finishings.
One of the best parts about buying a brand-new place is getting to customize it. You’ll be able to select all of your colors and finishings from a range of options, creating a space that is truly all your own.
Step 5: Finalize the paperwork.
At this point, you’ll provide your first deposit and sign the contract for the property. After that, you’ll need to wait until you get to the pre-purchasing inspection.
Step 6: Inspect the unit.
This isn’t your typical inspection, because most of the time, you’re not going to bring a traditional inspector with you. In this case, you’ll take a walk around the property and make sure to point out any blemishes so the developer can fix them before you get the keys. It usually takes about an hour, and you’ll want to be very, very diligent as not to overlook anything.
Step 7: Complete the possession walkthrough.
Once you actually take possession of your new home, you’re going to do one more walkthrough to verify that everything was completed properly and that you’re ready to move in.
Advantages of new construction
Let’s talk about why buying new construction is a great move. First off, you get to design your dream home or condo. If you buy an existing home, you’ll have to be okay with whatever the previous owners chose (or spend a fair amount of money reshaping it in your image).
New builds also come with a brand-new home warranty. In Quebec, we don’t usually have warranties, except for legal warranty – but it doesn’t cover the same things at all. In this case, you’re going to have the five-year warranty that applies to every single new construction property.
Finally, if you buy a property halfway through construction, you might not be able to customize your finishes to the same degree. But you can typically get a small rebate on the selling price and you’ll definitely get the keys a lot faster than if you had bought it from the very beginning.
Disadvantages of new construction
Now let’s take a look into a few cons. If you’re visiting a pre-construction property, you’re going to be touring a model unit. This unit is going to be decked out with the most premium furnishings available, but the you’ll have been shown by the developer was just a base price. So, you’re going to have to be very careful distinguishing between what’s included in the base and what costs extra.
The next setback is the fact that you’re not going to get to move in right away. A new development usually takes anywhere between two and four years to build, so it might take a little while before you get the keys. So if moving in soon is a priority to you, a new development is probably not going to be the way to go, unless you happen to get one of the last units that’s about to be delivered.
New construction: there’s a lot to think about!
Purchasing a new build is an incredibly interesting option for many buyers, especially if moving ASAP is not a priority. If you have more questions about the pros, cons, and process behind purchasing new construction, reach out to our team and we’ll get back to you in no time.