There are several advantages to buying a pre-construction property in Toronto and the GTA. These include flexible deposit, no high costs and bidding wars, customization opportunities, warranty, and a 10-day cooling-off period. To learn more about these pros check out our, “The 5 Benefits of Buying a Pre-Construction Property in the GTA” blog.
Now that you know the advantages and decided to buy a pre-construction home in Toronto to invest in, here are 3 steps to consider when buying a pre-construction property.
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Research the Builder/Developer’s Reputation and Completion Record
If you found pre-construction homes that you’re interested in, investigate and research the builder’s reputation and completion rate before buying one of their properties.
You can conduct your investigation by visiting one of the builder’s developments and speaking to the homeowners. You can also search for online reviews, testimonials, and news about the builder/developer and their past projects.
During your research, keep an eye out for trends in the reviews and news about their past jobs. For example, if you see many reviews making the exact remake, take note of the comment. Once you make notes of all your concerns, address them in the purchase agreement documents. You can also check out local home builder websites like The Building Industry and Land Development Association (BILD). They’re the voice of the home building, residential and non-residential land developments and professional renovation industries in the GTA.
Visit the Home Site and Learn About the Neighbourhood
Visit the pre-construction property’s project site. Visiting the project site will give you an idea of what the neighbourhood might be like, and you can see how far or close it is to schools, shopping centres, gas stations etc. During these visits, inquire about any plans for commercial expansion in the area. Asking about the commercial development will give you an idea of the property’s appreciation value.
Visit a Model Home
Visiting a model home will give you an idea of how the house will look inside and out. However, keep in mind that model homes will always look overly done because it’s meant to sell you the property. Some of the features and amenities you like might be upgrades for which you need to pay extra. That’s why it’s a good idea to note what you like and don’t like and ask the builders if these come or don’t come with the pre-construction property.
Remember, the cost will change depending on the upgrades you decide to go with. You can ask your agent to get you a list of standard features and, if available, a list of joint promotions and the costs associated with them. However, don’t let the cost of upgrades discourage you from getting them because it will increase the overall value of your property. Look at upgrades as an investment, which will help add value to the home’s resale value when you’re ready to sell.
Find a Reliable Broker to Represent You
Before looking at pre-construction homes in Toronto, find a reliable broker to represent you during your search. Model homes are usually staffed by real estate agents whose purpose is to represent the builder or developer. That’s why these real estate agents will try to sell you these houses for the highest price. Ultimately, these real estate agents have the builder’s best interest, not necessarily yours. That’s why it’s beneficial to have a broker represent you during your search because they’ll have your best interest in mind.
Your broker can help you structure your offer so it’s more appealing to the builder. They can connect you to lenders, movers, real estate attorneys, home inspectors, etc. They can help you resolve any problems during the building process.
However, if you don’t wish to go through a broker, you can always request a consultation with us at Birks Asset Management. Our team comes from different backgrounds of professional expertise. Our diversified knowledge and experience can help you understand your needs and give you the professional assistance that best compliments them. If you have any questions or concerns about buying a pre-construction property, please feel free to Contact Us.
4 Important Steps to Consider When Buying a Pre-Construction Property in Toronto and the GTA 
There are several advantages to buying a pre-construction property in Toronto and the GTA. These include flexible deposit, no high costs and bidding wars, customization opportunities, warranty, and a 10-day cooling-off period. To learn more about these pros check out our, “The 5 Benefits of Buying a Pre-Construction Property in the GTA” blog.
Now that you know the advantages and decided to buy a pre-construction home in Toronto to invest in, here are 3 steps to consider when buying a pre-construction property.
Table of Contents
Research the Builder/Developer’s Reputation and Completion Record
If you found pre-construction homes that you’re interested in, investigate and research the builder’s reputation and completion rate before buying one of their properties.
You can conduct your investigation by visiting one of the builder’s developments and speaking to the homeowners. You can also search for online reviews, testimonials, and news about the builder/developer and their past projects.
During your research, keep an eye out for trends in the reviews and news about their past jobs. For example, if you see many reviews making the exact remake, take note of the comment. Once you make notes of all your concerns, address them in the purchase agreement documents.
You can also check out local home builder websites like The Building Industry and Land Development Association (BILD). They’re the voice of the home building, residential and non-residential land developments and professional renovation industries in the GTA.
Visit the Home Site and Learn About the Neighbourhood
Visit the pre-construction property’s project site. Visiting the project site will give you an idea of what the neighbourhood might be like, and you can see how far or close it is to schools, shopping centres, gas stations etc. During these visits, inquire about any plans for commercial expansion in the area. Asking about the commercial development will give you an idea of the property’s appreciation value.
Visit a Model Home
Visiting a model home will give you an idea of how the house will look inside and out. However, keep in mind that model homes will always look overly done because it’s meant to sell you the property. Some of the features and amenities you like might be upgrades for which you need to pay extra. That’s why it’s a good idea to note what you like and don’t like and ask the builders if these come or don’t come with the pre-construction property.
Remember, the cost will change depending on the upgrades you decide to go with. You can ask your agent to get you a list of standard features and, if available, a list of joint promotions and the costs associated with them. However, don’t let the cost of upgrades discourage you from getting them because it will increase the overall value of your property. Look at upgrades as an investment, which will help add value to the home’s resale value when you’re ready to sell.
Find a Reliable Broker to Represent You
Before looking at pre-construction homes in Toronto, find a reliable broker to represent you during your search. Model homes are usually staffed by real estate agents whose purpose is to represent the builder or developer. That’s why these real estate agents will try to sell you these houses for the highest price. Ultimately, these real estate agents have the builder’s best interest, not necessarily yours. That’s why it’s beneficial to have a broker represent you during your search because they’ll have your best interest in mind.
Your broker can help you structure your offer so it’s more appealing to the builder. They can connect you to lenders, movers, real estate attorneys, home inspectors, etc. They can help you resolve any problems during the building process.
However, if you don’t wish to go through a broker, you can always request a consultation with us at Birks Asset Management. Our team comes from different backgrounds of professional expertise. Our diversified knowledge and experience can help you understand your needs and give you the professional assistance that best compliments them.
If you have any questions or concerns about buying a pre-construction property, please feel free to Contact Us.