I’m always so surprised when I hear that a buyer went straight to the developer to purchase a unit and didn’t use a buyers agent to represent them. Make sure to find a realtor to represent you in the purchase of a presale home. There’s a ton of new developments coming up along Coquitlam West, the Lougheed area of Burnaby, and Central Port Coquitlam that both myself, as an active investor, and my clients are interested in purchasing. With that being said, I feel like the benefits of a realtor when purchasing a presale condo isn’t a frequent topic of discussion – but it’s an extremely important one. Having a realtor to support you with your presale purchase can be the difference between appreciation and depreciation on your investment. Here’s our top 8 reasons why you should work with a buyer’s agent when purchasing a presale property:
They will put your interests first and are accountable to you.
The sales team employed by the developer works for the developer. They are under contract to work within the best interests of the developer – not you. While some buyers think that if they go directly to the sales team to purchase they will get a better price, this is just not the case – and even if you do get a “better” price, you’re often doing it at the risk of your contract safety, and your realtor most likely could have negotiated the same price for you anyways. Furthermore, if the particular presale that you’re looking at doesn’t work for you, a buyer’s agent is OK with that. They’ll help you to find the right presale unit for you based on your wants and needs, where as a developer’s sales agent will only try to sell you on that specific project they are working on and nothing else. Your REALTOR® has your best interests at heart and has a fiduciary duty to you and only you, so if that development doesn’t meet your needs, he/she’s not going to push you to buy it.
They’re a FREE service!
The craziest thing that I find about purchasers not using a buyer’s agent is that it literally costs them no money to employ them. In the case of presales, the developer pays the commission to the buyers agent upon the sale. By employing a real estate agent, you’ll have someone managing the timeline of the deposits, your contracts, reviewing the disclosure statement, and aiding you along the process to ensure that everything goes smoothly. Your time will be less consumed with the tedious stuff, and you’ll be able to focus on the things that really matter like your family, work, and/or hobbies. A buyer’s agent means less stress for you, at zero cost.
Honest Market Knowledge
The sales staff work for the developer, and their job is to sell the development. Odds are, they’re going to tell you all of the positive parts of the area and possibly skip over some of the negatives. When you hire a realtor, we’ve obligated to inform you of the area and make sure that your best interests are at heart. What’s more, your realtor will have the market knowledge to inform you about which presale developments are available and open up your options. They may also have inside information and special VIP access to multiple presale developments, which will often open for sale to realtors before the public. Because of their market knowledge, they’ll also be able to give you an accurate idea of what comparable properties are priced at, as well as rental prices if you are an investor.
Developers are interested in building relationships with realtors, because these realtors already have a client base in tact. The more realtors they work with, the faster their developments sell out. Typically, clients that purchase through a realtor are more qualified, prepped, and understanding of the development – and developers and their sales teams know this – meaning they actually usually prefer to work with a realtor because they know that the process will go smoother.
What’s more is that sales agents at the presentations centre do not make several thousands of dollars per unit they sell, like you may think. They make money when they sell in high volume. When they tell you that they’ll give you a discount if you buy a unit from them what this means is that they’ve already pre-negotiated with the developer and that it is already built into the profit margins made by the developer. By hiring an experienced realtor with a background in negotiating you’re making sure that you’re protected, understand all the ins and outs, know what you’re getting in to, and also getting a price you would’ve got on your own anyways. Remember, the sales team has a fiduciary duty to the developer, and their job is to get the highest price for the developer – not for you.
Another important job of the realtor is to let you know the reputation of the developer – some developers have reputations that a realtor may be aware of either through experience or colleagues that have worked with them directly, and the public doesn’t have this inside knowledge. Let a realtor negotiate on your behalf.
A Realtor Will Take the Emotion and Stress out of the Transaction – Buying a Home Can Be Time Consuming
Purchasing a home can be stressful, and one of the best reasons to hire a realtor is to take the emotion out of such a large financial transaction. Owning a home is more than a financial commitment, it’s also an emotional investment that can be time consuming. A realtor brings a perspective to the process that can help you to stay focused on your goals and see the bigger picture. They’re also able to use their experience to offer an evaluation of comparable properties, negotiate on your behalf, and lead you through the completion process when it occurs. They’ll keep you updated with progress on the development, remind you of what the deposit structure is and when it’s due, and be the main middleman contact between you and the developer – all for FREE!
Contract Knowledge and Expertise
Having a realtor present and with you to review the contract, terms, and disclosure statement is extremely important – and having someone that is familiar with them and what everything means will play to your advantage. Presale developments typically use developer drafted contracts that vary from project to projects, they’re not the sale contract as the MLS contract of purchase and sale. The MLS contract protects both the buyer and the seller with terms and conditions already drafted in by the Real Estate Council and Board, whereas the developers contract is drafted by an independent legal party hired by the developer that is there to protect the developer and ONLY the developer. Having your realtor present with you to review the contract and make sure that your interests are being protected and that you understand exactly what all the terms mean is extremely important. You may not know what to look for when you receive the disclosure statement from the developer, or the risks in their terms on the contract, or how to protect yourself. This is the job of the buyers agent, to make sure that you’re safe and protected when purchasing your presale investment.
If You’re looking to Assign your unit, a realtor’s network and connections with other realtors as well as their own clients will be extremely beneficial to you.
If you’re planning on assigning your unit before the completion date occurs (selling it before the completion date), then another great reason to hire a realtor is to gain access to their entire network of buyers, investors, and other realtors. You may be able to assign the home from within your realtor’s client base, thus making your realtor a huge resource for a quick and easy sale.
Your Realtor has access to the MLS system and will be able to keep you updated on the prices of comparable properties while yours is being built.
Your realtor will constantly be working with other clients on other presales and resale properties in your area, and will thus be able to keep an active pulse on the market and the value of your presale investment. Their access to the Multiple Listing Service (MLS) is a national database of properties for sale that are accessible to other realtors who may be looking for a perfect home for their clients or just to keep an eye on what the market is doing. The MLS can also be a huge help marketing and sales wise if you do plan on assigning your presale. (refer to point 7)
Are you thinking of purchasing a presale condo? It’s important that you use a realtor that specializes in new build properties to ensure that you’re protected and fully understand the process. Call us today and we can help you find a presale fit that best suits you : 604-765-0376. Prefer text? 604-319-0200. Or email us at [email protected]