Buying a Presale? Where is your REALTOR®?

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You've decided you want a new home or investment and you've been checking out the dazzling sales centres for new projects completing in 2-3 years. Without question, presales are tempting and often excellent options for obtaining the most attractive homes. They also offer the opportunity to buy now without having to pay now. Finally, you get to experience being the first to live in that shiny new home!

So before you jump in, do you have an expert on your side?

Too often I see people purchasing directly from the developer. Of course, this is sometimes prompted by the sales staff of the developer claiming that you can get a better price without an agent.

Let's look into this a little bit more closely. That representative of the sales centre is employed by the developer. Does their loyalty lie with you, or the person/company who is paying their bills? Further to this, many sales centres are paying either a marketing company or their employees on a per unit basis. Higher volume of sales increases the bottom line for themselves and the developer. If they are offering a discount, it is often already obtainable and not necessarily a benefit of dealing with them, since it has been pre-negotiated with the developer

Now, why use an agent? 

Just as you spend your time working towards excellence in your industry, a great real estate agent is constantly exploring the best options for their clients. With additional market knowledge, your agent is equipped to help you make the best decision.

Ever walked into a sales centre on the "grand opening" date and been told that 80% of the project is sold out? Real estate agents often have access to new developments weeks and sometimes months before they launch to the public. What does this mean for you? To get first crack at getting the best homes available, you'll need an agent to get you in the door.

Lastly, you can save money! Many people believe that using an agent in a presale will cost you money. The truth is, the developer pays the agent. This payment does not come out of the cost of your home. In other words, by having an agent when considering a presale purchase, you will have someone who is working in your best interest and expertly negotiating on your behalf. This service is free to you. As well, your agent should be familiar with the contractual aspects of such a purchase, and can ensure that you are guided through the process in a comfortable, risk free manner.

If you have any questions or comments regarding presales or wish to discuss other real estate opportunities, feel free to email me at adil@adilkhimani.com.

All the best,

Adil