Pre-sale homes are an entirely different product from residential resale. It is absolutely essential to align yourself with a Realtor who specializes in new home developments, can help you navigate the pre-sale world, and guide you through the developer's disclosure statements. Most of these questions will be included in your welcome brochure, and can be most commonly found on a project's starting price sheet; however if any of this information is missing, be sure to enquire to get a complete picture of their development, and how it measures up to other projects in the area.
1. Concrete, or Wood Frame?
This question is more applicable to apartment buildings, and to a lesser extent townhomes. There is an important distinction between concrete and wood frame homes, with the former being more desirable.
Concrete buildings have a higher price-tag, sound transfer between homes is significantly reduced, and building longevity is increased.
In British Columbia, the majority of new homes over 6 stories high are mandated by zoning laws to be concrete constructions.
2. What is Included in My Strata Fees?
Beginning in January 2025, all multi-family homes over 3 stories, or larger than 600 square metres will be mandated to have AC systems, typically there will also be a heating component attached to the AC.
Strata fees have been on the rise due to inflation, rising insurance deductibles, mandatory AC, and more. It's not only important to know how much a project's strata fee's are, but what they include as well.
One last thing to know, a project's displayed strata fee's could be the prorated rate, or it could be an old rate quoted a few years ago when their disclosure statement was filed, make sure to ask if the proposed strata rates have been updated, and if not when was this rate quoted, as it could be a significant 10%+ increase over the stated strata fees.
Commonly Included
- Water, general maintenance (garbage pickup, gardening etc)
Less Commonly Included
- Heating/AC, Gas, Hot water
Rarely Included
- Electricity
3. What is Included in My Purchase Price?
As Metro Vancouver grows, so does the need for higher urban density housing. This has led to a shortage of parking spaces as homes move closer to rapid transit systems, and the push towards a greener Vancouver presses us to leave our cars behind. That being said, some homes no longer come with parking included, or even a storage locker, so it's important to ask what your purchase price is inclusive of.
- Parking
- Storage locker
- GST inclusive (uncommon, usually done as a buyer incentive)
- Optional upgrades (steam closet, appliance package upgrade etc)
4. Current Buyer Incentives?
Developer's all have unique incentives to stand out from the competition, this can be in the form of credits, decorating allowances, add ons, free storage lockers, e-bikes, rent guarantees, GST included, lowered, or extended deposit structures, and many more. Keep in mind, developer's will rarely, if ever negotiate on price. This sets a poor precedent that they will have to face going forward with the rest of the project, and future projects, as sale price data is public. Instead to negotiate with a developer find out what's important to you, your Real Estate Advisor can help you with this. First make sure it's not a hot project that's selling out in a week! Second get that contract drawn up and signed, once the developer returns the signed contract, you have a 7 day recission period where you can withdraw from the contract without needing a reason; this is the time to negotiate with the developer.
Why is it done this way? If the developer just offered incentives to anyone who was thinking of writing a contract, this information would be passed around far too easily, at least with a signed contract you, the purchaser had to get a bank draft, fill out all the necessary forms, and put in an offer.
