Are you looking for technology that can help you up your real estate game? You’re not alone. In the last few years, innovation has taken the industry by storm. It’s led to better service, elevated marketing and greater efficiency. Leveraged correctly, it could do the same for you, too. 

Are you wondering which technology to start using right now? If you’re thinking of adopting a few helpful, easy-to-use apps, you may want to consider making it part of your new year’s resolution.

Here are five real estate apps to start making use of in 2022…

1. Calendly

Real estate agents spend countless hours dealing directly with clients, and our schedules can get a little hectic. All too often, scheduling conflicts arise. Fortunately, Calendly can help. This incredibly handy app makes it easy to coordinate with buyers and sellers.

There’s no better way to find times that work as well for your clients as they do for you. Whether you’re booking a consultation, listing appointment, or showing, Calendly has you covered. It can also be easily integrated with whatever scheduling app you currently use. 

Wondering what to look for in a real estate team? Check out our guide to finding the right team here.

2. Quickbooks

Quickbooks has been around for a while, but it’s just as helpful now as it’s always been. 

This bookkeeping software makes it incredibly easy to track expenses and inventory, dole out paycheques, record payments and more. With the mobile app, you can take Quickbooks with you on the go—and manage all things financial, no matter where you are.

One look at your phone, and you can see a few key metrics to get insight with zero hassle. It doesn’t get more convenient than that!

3. Buffer

When it comes to marketing your real estate business, social media is a must. It’s one of the best ways to reach buyers and sellers where they’re spending their time. By sharing fresh, helpful and attractive content with them, you can build trust and showcase your expertise.

Of course, it’s not just a matter of providing high-quality content. It’s also about putting it out there consistently. That’s where Buffer comes in. This social media scheduling platform allows you to set up blog posts to publish automatically, and that’s not all. With the Buffer app, you can engage with your audience and assess your analytics, all from the palm of your hand.

Interested in learning more about our team? Find out whether joining us is right for you with our helpful resources.

• The Woolcott Advantage
• Our Team
• Woolcott Real Estate Opens New Office in Downtown Hamilton

4. Canva

It’s no secret that a picture is worth a thousand words, especially in real estate. That said, beautiful photographs are just one piece of the puzzle. To make your mark, you also need visually-appealing graphics for your social media and marketing materials. 

While there are times when working with a graphic designer or creative team makes sense, you may find yourself in situations where you need to put something simple together on your own. That’s when you should reach for your mobile device and make use of the Canva app.

Put simply, this is the easiest way to create professional-looking graphics and video on your own. It’s so simple to use that even a complete novice can get the hang of it.

5. Google Analytics

To ensure that your website is doing its job, you need to be able to track it. By keeping track of traffic to your website—including where it’s coming from, the paths users are following through your webpages, and how much time they spend—you can get invaluable insight. Google Analytics allows you to learn all of that and more, which means you can make changes to improve performance. 

The Analytics app optimizes insight for your mobile device. Report layouts are easy to scan at a glance, and making changes to your account is simple to do with the tap or swipe of a finger. 

If you want to make 2022 your most productive year ever, consider adopting technology that saves time and helps you optimize the experiences your clients have with you and your brand. The apps above represent some of the most useful, but there are plenty of others out there—so do your research and choose strategically!

Looking for the right place to grow your real estate career? Consider working with Woolcott Real Estate. Get in touch to learn more here.

With housing supply still at record lows, we are currently in one of the most competitive seller’s markets on record. Buyers simply don’t have as many options as they did in previous years, and their demand for real estate is well-outpacing current inventory. 

In a market like this, one excellent option for homebuyers and investors alike is the preconstruction sector. Burlington is also experiencing a pre-construction boom right now with several new developments in the works. 

Did you know that Burlington was voted the best mid-size city in Canada in 2019 by MacLeans Magazine? 

Are you thinking about investing in a Burlington pre-construction home? Here are six new developments in Burlington to get excited about:

1. Martha James by Mattamy Homes

Located at 2088 James Street, Martha James by Mattamy Homes is a stunning example of comfort and convenience combined. Situated in a mature park side neighbourhood just steps away from the hustle and bustle of Downtown Burlington, Martha James is ideal for buyers who want to stay close to the action but retain the comfort and space of living close to nature. 

Lake views and luxurious building amenities such as a rooftop patio, fitness centre, community garden and concierge-attended lobby are only a few of the excellent features you get at this fantastic condo opportunity. 

Priced starting at the low $500,000s, Martha James also features nine-foot ceilings throughout and thoughtful open-concept floorplans, perfect for buyers seeking a contemporary home in one of Burlington’s most desired locations. 

2. BeauSoleil Condos by Carriage Gate

Downtown Burlington is getting another exciting new development with BeauSoleil Condos by Carriage Gate. Consisting of 291 units across 29 storeys, BeauSoleil Condos offer a great opportunity for buyers looking to capture the high-rise condo lifestyle. 

Perfectly located at 2069 Lakeshore Road, the development offers fantastic lake views and proximity to everything you could ever need. BeauSoleil Condos is within walking distance to parks, shopping, dining and more, ideally combining comfort, convenience, and entertainment into one great building.

With prices starting in the high $400,000s, BeauSoleil Condos perfectly combines quality and value. 

Still on the fence about pre-construction? Read our blog Resale Home or Pre-Construction: Which is Right For You here.

3. Gallery Condos & Lofts by Carriage Gate

As the second contribution from Carriage Gate on this list, Gallery Condos & Lofts is one of the most highly anticipated condo developments in Burlington right now. Breaking ground in 2019, this project was inspired by local artists and the desire to live a beautiful, meaningful life. 

With 22 storeys and 161 units, Gallery Condos & Lofts is an exceptional luxury tower with prices ranging from the high $400,000s all the way up to $2 million. Perfectly appointed at the corner of Brant and James Street, Gallery Condos & Lofts is right across the street from City Hall with excellent city and lake views. 

The building features amenities such as an “elaborate” party room, yoga room, billiard room, indoor pool, rooftop lounge and more. With mixed-use retail at the ground level, residents of Gallery Condos & Lofts experience unparalleled luxury and convenience in the heart of Burlington. 

4. Millcroft Towns by Branthaven

If sky-high condo living isn’t your cup of tea, Millcroft Towns by Branthaven might be made for you. In fact, these bespoke custom towns in the covetable upper Burlington community of Millcroft can literally be built for you. 

With endless options and luxurious finishes and details, Millcroft Towns offers exceptional options such as a range of floorplans, custom interiors, optional elevators, double car garages and more. With absolute control, you have the opportunity to specifically craft your lifestyle. 

Millcroft Towns floorplans range in size from 1,730-2,530 square feet and feature private backyards and proximity to exceptional country club amenities. 

Have you heard of assignment sales? They’re a big part of the pre-construction market. Read our guide to assignment sales right here.

5. 490 Plains Road East by National Homes

The condo and townhouse development at 490 Plains Road East is a highly-anticipated development set to be complete in 2022. This is a midsize building with eight floors and 386 units. 

The building experts at National Homes paired with Kirkor Architect + Planners to conceptualize and design the building, and as a result, the condos feature a stylish, functional and modern design that appeals to a wide range of buyers. 

490 Plains Road East is also conveniently located close to the Burlington Power Centre as well as numerous conveniences like local transit stops, shopping, dining and entertainment. 

6. Fairview GO by Valour Group

Fairview GO by Valour Group is a proposed two-tower, 19-storey residential development located next to Burlington’s Appleby GO Station. With 378 units, this new development is in the much sought after neighbourhood of Brant Hill in Burlington north. 

Close to many convenient amenities such as public transit and access to the highway, Fairview GO is the perfect opportunity for professionals. Building amenities include ground-level mixed retail and the building is within walking distance to shopping, dining and entertainment. 

Whether buying a resale home or a pre-construction property, a local Burlington real estate agent can help you make the right decisions to benefit your unique situation. Learn more about working with us right here:

• Why You Should Work with a Local Agent
• The Woolcott Buying Advantage
• Woolcott Buying Resources
• Become a Real Estate Investor

It’s a pretty widely accepted that real estate is a seasonal industry. In most cases, the busiest periods tend to align with the school year, which also happens to be when the weather is nicest!

So is it ok to sell your home during the winter? We are strong believers that yes, it is! Although the experience of selling your home during the winter months is certainly different than selling at peak times, it’s still possible to successfully sell your home in the wintertime. 

Here’s what you need to know. 

First, The Challenges of Selling in the Winter 

Before we get into the benefits of selling your home in the winter, let’s take a quick look at some of the main challenges you might face. 

The Weather 

Inclement weather like snowstorms and ice rain not only puts a damper on your holiday plans but can also create dangerous driving conditions that some buyers might not want to risk. You may see an increase in rescheduled or cancelled showings compared to other times of the year. 

Holidays 

Speaking of holiday plans, you might have to be more flexible with your celebrations if you plan on selling over the holidays. Although your agent will do their best to accommodate your schedule, it’s certainly harder to make plans in advance when selling a home. We recommend making plans to have holiday dinners elsewhere (and it saves you the hassle of hosting!).

The Property

Many buyers prefer to buy a home in the spring or fall because there is no snow covering the ground and they can clearly see what the property looks like. It’s one of the reasons why we recommend taking listing photos in the summer months to capitalize on the beautiful and lush trees and grass. Not knowing what’s under all that snow might be a deterrent for some buyers. 

Wondering how to prepare your home for a winter sale? Start with our Ultimate Winter Checklist right here.

So What are the Pros of Selling During the Winter?

There Are Fewer Buyers, but They are More Motivated

Most buyers tend to plan their moves around the school year because it leads to fewer disruptions in their lives. This means that during the busy seasons, the market is flooded with buyers all vying for the same thing. 

In the winter, it won’t surprise you to find out that there are fewer buyers in the market actively looking for a new home. However, of those few buyers who are looking, they are much more motivated to take action. 

Winter buyers are typically looking for a quick sale. They might be working with a job change, relocation or lifestyle changes that require them to find a new home ASAP. 

Sellers can use this urgency to their advantage, negotiating more favourable terms, closing and even a higher asking price for buyers who are eager to make a move. 

Fewer Properties For Sale Also Means Less Competition

In addition to having fewer buyers in the market during the winter, we also see reduced inventory. 

Many people will either list in the fall or wait to list in the spring. So if you decide to sell during the winter, you are not only capitalizing on highly motivated buyers, but you are also going to stand out because of the limited available inventory at the same time. 

Lock in That Mortgage Rate

Experts are predicting that mortgage rates are going to spike in the spring of 2022. Savvy buyers know that this means they should get locked in at a low-interest rate and get pre-approved now before things go up. 

The only issue? Mortgage rates on pre-approvals come with a time limit. Typically the expiry on the rate is between 30-90 days. This means if you get pre-approved for a mortgage in December, the latest you can buy at that low rate would be February. 

Selling your home with Woolcott Real Estate has its definite perks and advantages. Take a look at some of our selling pages here:

• The Woolcott Selling Advantage
• Why Now is a Great Time to Sell Your Home in Hamilton
• How Sellers Can Make the Most of a Hot Market

Considerations to Make When Selling Your Home During the Winter

Selling during the winter is entirely possible and for some buyers, it’s actually the right move to make. But there are a few considerations you should make when preparing your home for a winter sale. Here’s some food for thought:

• Ensure that your driveway and walkways are plowed, shovelled and de-iced for safety reasons. 
• You can still maintain great curb appeal by making sure your yard looks great with well-maintained landscaping, clean gutters and timeless holiday decor. 
• Speaking of holiday decorations, it’s best to keep things traditional and minimal to appeal to a wide range of buyers. 
• Make sure your furnace, plumbing and electrical are all functioning properly. There’s nothing worse than hosting a showing and having the furnace give out. 

If you’ve been considering the idea of listing your home for sale recently, chances are you’ve got a certain price in mind that you want to receive for it — even if it’s only within a ballpark range.

You might be taking into account things like the age and size of your home, how much you paid for it initially, how much money you’ve invested into it in the way of renovations and repairs, and even what your neighbours’ homes have sold for recently too.

However, there are many other factors that go into determining a home’s current market value — especially when you consider they rely on external factors that can change day-by-day. That’s why when it comes time to sell your home, it’s important to gauge your initial expectations and wait to receive a professional home evaluation before fantasizing about your potential profit.

To learn more about home market evaluations and what goes into determining the current value of your home, let our comprehensive guide below walk you through everything you need to know.

The Importance Of A Home Market Evaluation

No matter which side of a real estate transaction you might be on — whether as a buyer or a seller — a professional home market evaluation can prove to be extremely useful to you over the course of your transaction.

For sellers, a home market evaluation can be used to help you accurately develop your pricing strategy. By entering the market with an attractive and competitive list price for your home, you can generate immediate interest in your listing among buyers, which in turn, will hopefully help to generate a bidding war between those most motivated to purchase your home.

From a buyer’s standpoint, receiving a professional home evaluation of a property you’re interested in purchasing can help you determine whether or not the listing is priced fairly and if you’re being deceived into paying more for it than it should currently be worth.

Either way, an accurate home market evaluation from a reputable, impartial professional will eliminate any obscurities or inaccuracies when it comes to a home’s current market value. Whether that means the seller’s initial estimate of their home’s value was an underestimation or an overestimation, a home market evaluation takes the guesswork out of the equation.

Finding a property that presents exceptional value for money and is within your budget is key to making a shrewd long-term investment. If the thought of buying a new home is on your mind, learn more about how we can help you make a smart real estate purchase via the links below.

• Our Buying Advantage
• Find Your Dream Home

The Use Of Market Data For Home Evaluations

Home worth evaluations also lean heavily on the use of up-to-date market data and statistics to help inform their estimate of a property’s current value.

As Realtors® have insider access to the most recent housing statistics and market data for specific geographical areas, they can cross-reference these findings to strengthen their accurate estimates of what a new listing’s market value should be.

In order to do so, a thorough database search of all homes listed or sold near the property is conducted to include the following data:

1. Active Listings: Because sellers can ask for whatever dollar amount they want, homes currently for sale do not reflect market value until they sell. Active listings are useful if they are direct competition with your home.
2. Pending Listings: Since pending listings have not yet closed, the actual sold price is still not available. Pending sales cannot be used as a comparable sale, but can be used to indicate the direction of the market.
3. Sold Listings: Sold listings provide the hard data for comparable sales, which can be leveraged to determine the market value of other homes including yours.
4. Cancelled Listings: Although there are many reasons why a home may have been taken off the market, one of the most common reasons is because the asking price was too high. These are good warning signs for overambitious sellers.
5. Expired Listings: These listings reflect homes that did not sell, which could be the case if the home was overpriced. Generally speaking, the longer a home sits on the market, the better an indication it is that the price doesn’t reflect fair value for the property.

Interested in seeing what the current listings in your local area are priced at? Find out by visiting Our Listings page here.

Examining Comparable Sales

Using the listings of comparable sales, homes are narrowed down to those that most closely resemble the home you’re trying to purchase or sell. Factors such as location, square footage, age of construction, proximity to local amenities, upgrades, and the overall condition of your home are taken into consideration when comparing it to similar properties.

If multiple homes in your neighbourhood comparable to yours have recently sold around the $1 Million range, for example, that might mean you could expect to receive a similar amount for yours. If you’ve got a much more impressive and updated home in comparison to those, that means you could expect to receive more than the average $1 Million price range — and vice versa if your home is in a comparably worse condition.

This is why in the world of real estate, location is among the most important factors when determining whether or not to make an investment in a property. Just because one home might currently be in better condition than another, if the less desirable home is in a better neighbourhood, it could pay higher dividends when you eventually choose to sell.

Are you inspired by recent activity in your local market to list your home for sale? Find out how we can help you receive the best potential value for your property by reading through our informative links here:

• Our Selling Advantage
• Why Now Is A Great Time To Sell Your Home In Hamilton
• Sell Your Home

Receive A Free Home Evaluation With Woolcott Real Estate!

Over the last couple of years, the Hamilton-Burlington housing market has seen some record-breaking prices when buying or selling a home. In a market such as this, you want to be extra cautious that you don’t overpay for a new property; yet you still want a fair price when you sell your own home. However, this can be a tricky balance to obtain.

That’s why it’s now more important than ever to have a knowledgeable Realtor® with comprehensive local experience working with you on your upcoming real estate transaction in order to help you determine the accurate market value of a home.

Why trust anyone but Woolcott Real Estate to provide you with this valuable information? As knowledgeable experts on housing values and trends — especially pertaining to the Hamilton-Burlington real estate market — Woolcott Real Estate. can help you buy or sell a home at the right price.

Interested in learning about the current value of your home is in today’s market? And at no cost and with no obligation? Sign up for a Free Home Evaluation here to get started.

Over the years, our team has fielded a lot of questions about real estate commissions. As agents, we’re frequently asked questions like: How big is our cut? What services do our fees pay for? And what’s to stop our clients from getting rid of the middleman and going it alone?

The truth is, some people decide to navigate real estate transactions without professional guidance, and some are successful. But before you decide which approach you want to take, you should understand what a real estate agent can (and can’t) do for you — and how much you can expect to pay if you work with one.

If you’re wondering whether hiring a real estate professional is worth the money, read on to learn how agent fees break down…

The Basics

No doubt about it: there are a lot of misconceptions about how we agents earn our fees. Many professional service providers charge by the hour — like lawyers or movers, for example — and some clients assume that we use the same model. In reality, we only get paid if a deal is successful. Put simply, if a home doesn’t sell, the agents involved generally don’t receive a penny.

From a consumer’s perspective, this arrangement removes a lot of the financial risk that would otherwise accompany working with a different professional, even within our same industry. Let’s look at it this way — it can take anywhere from three days to three months to simply locate a listing that might suit a particular clients’ lifestyle. If we charged that client by the hour (or even the day) for the time we spent helping them, our costs could end up even more expensive than the home itself!

The second major misconception has to do with who pays us. There are two agents in a typical real estate transaction — one who works on the seller’s behalf, and one who represents the buyer. You might expect that each side gets paid by the client who hired them. Not so. When a deal is completed and the seller receives their money, they then automatically pay a percentage of their earnings from the sale in commission to the agents on both sides of the deal.

Real estate agent commission fees aren’t the only costs you should be aware of ahead of time if you’re planning on buying a home. To learn more about which fees you can expect to incur (and when), read our blog post on the Hidden Costs of Buying a Home You Need to Know Now.

How Much Do Sellers Pay?

The commission that comes out of a transaction is typically between four and six percent of the final sale price of a home. In most cases, the commission is usually divided in half, meaning that each agent gets 50 percent of the overall amount.

Since sellers are responsible for paying this amount, it might sound like buyers receive professional services for free, but that’s certainly not the case. The fees are built into the transaction, so in actual fact, it’s the buyers who are providing compensation for the agents when they purchase their new home.

Sellers should know that while four to six percent is quite standard across the real estate industry, you may be able to negotiate this down to a lower amount with your agent. Just be aware that it’s not just about getting your own agent to agree to the lower commission rates, however.

The commission you’re willing to provide to the buyer’s agent will also be visible on your MLS listing. Although we as agents are bound by RECO, our governing body, to show all properties regardless of commission, there are some buyer agents who are less likely to show homes when the commission rate offered to them is lower than that of a comparable property. It’s a frowned-upon practice, but it does happen.

With that in mind, offering a percentage that’s on par with what’s being offered in your neighbourhood will be a better approach to helping you attract the attention of buyer’s agents (and, by extension, home hunters). The last thing you want here is to sacrifice what could be a very lucrative sale for you just because you want to save a few dollars in real estate agent commissions fees.

Remember; the more competition you can create in the form of eager bidders fighting it out for your home, the more chance you have at fostering a bidding war and driving up the final sales price of your home. While that means more money goes to the agents, it also means more money in your pocket at the end of the closing day too.

Want to learn more about the advantages as a seller of creating competition between buyers for your home (and how to handle them)? Read our related blog posts all about bidding wars and how to navigate through intense negotiations successfully here:

• ​​How Sellers Can Make the Most of a Hot Market
• How to Survive a Bidding War
• What Is a Bully Offer—and Should You Make One?

Which Services Are Included?

Now you have a fair idea of what you can expect to pay in agent fees if you work with a professional. But what exactly will you be paying for? The answer is, it depends.

Pricing, marketing, qualifying buyers, negotiation expertise — it all falls under the umbrella of what a good seller’s agent should provide. That said, the specifics will vary from one professional to the next.

For example, some agents include staging and photography as part of their services, which sounds enticing, but can drastically vary from one agent to the next. The quality of a staging job or the standard of a home improvement project or even the quality of the images captured of your home may differ significantly depending on which agent you go with.

That’s why it’s important to research your listing agent’s previous work, look through their Sold Listings page online (should they have one), read their Google Reviews, and if possible, personally speak with some of their previous clients to see if they were pleased with the service. Learn as much as you can about a listing agent and what they’ll actually provide you with beforehand and the process of choosing one to assist you with your sale becomes markedly easier.

If you’re a buyer, an agent that earns their commission will be able to provide you with a long list of value-added services too. A great buyer agent will help you find homes that meet your unique criteria of needs and wants. They’ll also be able to help you submit compelling offers for those homes, as well as negotiate optimal deals for you on your behalf.

Most importantly, a talented buying agent will help you feel calm and composed through the entire process by guiding and informing you through each stage of their approach. As is the case with sellers, buyers should have an in-depth discussion with any professional they’re considering working with about the services that will be included, as well as any qualified references they may have (or you might find on your own).

At Woolcott Real Estate, we believe that going to extra mile for our clients should be the bare minimum we offer to them. Whether you’re a home buyer or seller, you can learn more about the value-added services we offer to all of our clients through our informative pillar pages below.

• Our Buying Advantage
• Our Selling Advantage

The Bottom Line

The decision of whether to work with a real estate agent or opt not to, whether you’re a buyer or a seller using the FSBO (For Sale By Owner) method, is a completely personal decision. The being said, if you do decide to hire a professional real estate agent, one thing is for certain — you deserve to know how your money will be spent.

Before agreeing to work with an agent, be sure to have a direct conversation with them about their commission rates and what (exactly) you’re going to receive in exchange for paying them. If they become uncomfortable with the conversation or dismiss your question under the guise that their rates are an ‘industry norm’ without detailing what their process looks like and includes, then they’re probably not going to provide you with any sort of premium real estate services.

Find out the latest news about the real estate in some of our recent posts:

• What’s Your House Really Worth?
• Housing Market Predictions for 2023
• How To Negotiate A Real Estate Contract

Every Realtor® should be comfortable articulating what their services include, no matter if they’re acting as a buyer or seller’s agent. The more you request clarification and transparency from an agent, the more you’ll feel comfortable with their rates of service, and that’s a luxury every client can afford.

Interested in learning more about real estate agent fees and services? Or, anything else related to buying, selling, or investing in real estate? We’re always available to schedule a chat. Contact us here to start a no-pressure conversation — we’re happy to answer any questions you might have about real estate!

If you’re preparing to buy a home, you may be unsure whether to choose pre-construction or a property that already exists. There can be significant benefits to purchasing a place that hasn’t been built yet, though it isn’t for every buyer. Fortunately, a little knowledge can go a long way.

If you’re deciding whether to buy a resale or pre-construction home, here’s what you should know…

What to Know About Buying Resale

If you’re considering a resale home, there are a few basic facts to know about the buying process. Below are some of the important to be mindful of.

At the beginning of your search, mortgage pre-approval is crucial. This step occurs when a lender goes through your financial situation and tells you how much mortgage financing you’ll likely receive. Having pre-approval matters to sellers—and helps you budget.

Next up, your deposit. This sum, which you’ll typically owe to the seller’s brokerage within 24 hours of signing your purchase agreement, forms part of your down payment. While there’s no minimum amount, 5 per cent is fairly typical.

It’s also important to know about conditions. When you’re putting together an offer, including them will protect you by reducing the risks associated with your purchase. For example, a financing condition makes your purchase contingent upon your ability to secure your mortgage.

When it comes to closing, there are an assortment of costs you must pay. The total usually falls within the range of 1.5 and 4 per cent of your purchase price. Closing costs include things like your legal fees and land transfer taxes.

There are some similarities between buying a pre-construction and resale home (such as how conditions work), but there are a fair number of differences, too. More on that in a moment.

Why Resale May be Right For You

For some buyers, it’s one of the biggest advantages of buying a resale home. You can walk around an existing house or condo and really get a feel for what living there is like. While detailed floor plans can tell you a lot, some purchasers just won’t feel comfortable unless they can see a place in person.

Another major advantage (at least if you want to move right away) is the ability to take possession of your resale home immediately. Depending on your circumstances, a speedy timeline may be a must.

When you’re buying an existing property, the process of getting a mortgage—and knowing what your payments will be like—may also be simpler. That’s due in part to the fact that interest rates won’t change, and neither will your income.

These are a few of the advantages of choosing a resale home, but there are also many associated with pre-construction. Let’s take a look at a few of them.

Are you preparing to buy property? Whether it’s your first time or you could use a refresher, here are a few handy posts on the purchase process:

• Hidden Costs of Buying a Home You Need to Know
• What Not to Compromise on When Buying a Home
• Decoding Changes to the Mortgage Stress Test

The Lowdown on Pre-Construction

Purchasing pre-con is unique. If you’re considering a brand new property, you should understand the process—and how it differs from buying an existing home.

One of the biggest differences is the timeline. You should be aware that the average time between buying a pre-construction place and taking possession of it can be years (often as many as 3 or 4). Construction delays of a few months are common.

Once your property has been built, there will be an interim occupancy period. During this time (which typically lasts a few months or more), you can move in or rent out your space, but you won’t officially own it. You’ll owe occupancy fees to the developer, which are approximately equal to interest on the unpaid balance of your purchase price, along with municipal taxes.

Let’s move back a few steps. When you find the right pre-con home, you’ll need to put down a portion of what is typically a 15 to 20 per cent deposit. This is usually a $5,000 or $10,000 initial deposit, with the rest paid in installments in the months and years ahead.

Another key difference is the opportunity to back out of your purchase for 10 days after you sign the contract. This is what’s known as the cooling-off period, and it doesn’t exist when you’re buying resale.

In most cases, buyers of brand-new homes are also given customization options. Developers frequently offer you a choice of finishes, fixtures, and appliances—and the preferences you go with can help you feel more at home.

Lastly, when you’re buying a brand new property,  HST, totaling 13 per cent of your purchase price, needs to be considered. We advise connecting with an accountant, but a rule of thumb is you typically don’t owe it if you are buying as a personal property, and you can get most or all of this amount back through a federal rebate if you are purchasing as an investment property with a one year lease signed.

These are just a few things to know about securing a pre-construction living space, but what are the advantages?

Reasons to Consider Pre-Construction

First off, if you buy a pre-construction home you’ll enjoy the stability (and reduced stress) that comes with paying a fixed price. Forget about bidding wars—they don’t apply. If it’s a condo you’re buying, your maintenance fees will (usually) also be lower than they would for an existing unit. That said, be aware that they tend to rise fairly quickly.

Another big benefit to this property type is the potential for price growth. Your new home will very likely begin to appreciate in value during its construction. And once you make your purchase, it’s going to be a low-maintenance investment until you take possession.

When it comes to your down payment, the flexible deposit structure (which allows you to pay in installments) gives you time to save up. In other words, you don’t need to have all of your funds together at once.

Your 10-day cooling-off period will give you the chance to have your lawyer review your paperwork in close detail, while the chance to customize your space is a benefit in its own right!

You’ll also get a Tarion warranty, which will cover a wide variety of defects. At the 1, 2, and 7-year marks, you’ll receive different levels of coverage.

Have questions about buying a brand new home? Learn more by checking out our Pre-Construction FAQs!

Making Your Decision

When you’re trying to decide between pre-construction and resale, understanding each process—from the timelines to the costs involved—is key. From there, it’s a matter of finding a real estate professional who has a proven track record of helping buyers!

Interested in learning more about buying? Whether you’re purchasing a resale or pre-construction home, we can help! Get started by reaching out right here!