The new construction market contributes to the high levels of inventory in Calgary currently, and there are even incentives for new construction buyers to encourage them to buy this kind of homes. Most sales are based on model homes presented to the buyers so that they get a sense of what the home will look like once it’s completed. Calgary has seen many master-planned communities being developed in the past years, and that’s why buyers should know what to expect when entering the new construction market and how it differs from buying a resale home.
Builders Work With Realtors
New construction homes can be found in the MLS since builders want to use all resources to advertise the new homes. They usually cooperate with relators and pay them a commission for bringing buyers around and have them registered. Most homes sell before project completion, out of which, the majority of buyers are investors who hope to resell the home at a higher price later.
Delays Are Very Common
Buying a brand new home in which no one has ever lived has its charm, but buying it before you have seen it in person can be risky. Will it be done by the foreseen date? The developer may not have all the permits yet, and it can take a while before the local authorities give them the green light to proceed. Unpredictable weather conditions can also result in delays, as well as any mishaps on the construction site. Be also prepared to accept that the builders build on their own timeline not yours once they have your full down payment and contractual commitment with no conditions.
Price Reductions Are Possible
Builders try to give the impression that prices are nonnegotiable, but that’s not necessarily true. Builders quite often will not give discounts at the beginning because the first buyers pick the most desirable lots. Many buyers wait for the next phase to open to get the best lot. However, as the more desirable lots get sold, discounts can occur near the end to finish the phase and/or to sell the less desirable lots.Sometimes builders offer to do some upgrades or pay the closing costs instead. It all depends on the market conditions and demand.
No Personal Attachment
Resale homes usually have a history that’s very dear to the seller, and they are not only looking for profit but also for someone who’ll take good care of the home. Builders selling new construction homes are only focused on how much they can get for the property and in what timeframe. They know the more the property stays in the market, the lower its value, which means they rely on buyers who respond quickly and offer the asking price.
Even if there is little room for hesitation, don’t rush with the contract. Check if it includes everything that you were promised. Did you know that all conditions have to be removed before signing the contract?
Pay Attention To The Future Resale Value
When looking for a new construction home, you have plenty of sources to reveal the future value of the home, e.g., is it close to the public transit network or a business hub, is there plenty of green spaces nearby, how big is the lot and the home, is the layout functional, are any schools or future malls planned to be built in the new neighborhood, is the home equipped with high quality elements like stainless steel appliances and granite countertops, etc., is there a garage and how big is it, etc. All this can help you evaluate the future resale value of a new construction home. Inquiring about nearby stores, amenities, home prices, crime rates, and employment in the surrounding neighborhoods can also help.
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