New condo complexes in Toronto are a hot commodity, as everyone knows. There are currently between 132 and 172 new condos under development, depending on which numbers you believe.
If you’re considering purchasing a pre-construction condo in Toronto, you’re probably debating whether to hire a Realtor or go it alone. Of course, we’re biased (after all, we’re Realtors)… However, here’s why you should hire a Realtor:
- Many buyers purchase straight from the builder, yet the salesman at that lovely model suite represents the builder, not you. His role is to negotiate the best price and terms for the Builder. He doesn’t care if you don’t receive the greatest deal or sign a contract that limits your ability to resell or rent the unit because he works for the Builder, not you. What makes you think that’s a good idea?
- Yes, we get compensated when you hire a Realtor to purchase a pre-construction condo (imagine that–we get paid for our efforts!). But don’t be tricked into thinking that by not using a Realtor, you’ll be able to pocket the money we would have received. The funds will be distributed to the Builder’s sales team (or maybe the Builder himself). Have you ever heard of a Buyer being given a discount for not using a Realtor? Neither do I.
- Ask any of the buyers in the Trump Tower who just discovered that they signed contracts prohibiting them from selling their units before completion, or any of the Sellers who receive surprise HST bills when they flip their property before closure.
- Most of the good units are already sold by the time a new condo building opens to the public–in fact, we frequently see condominiums or lofts that are already 50% sold by the time they open to the public. The ONLY WAY to get the best units (high floors, greatest layouts, and outstanding views) is to work with someone who has VIP access to the condominiums before they go on sale to the general public. You should also receive special VIP pricing and enhancements if you work with the proper VIP Realtor.
- Builders are well-known non-negotiators. However, a qualified Realtor can negotiate for you on a variety of issues, from renovations to a cap on your construction closing expenses (See? You probably didn’t realize that pre-construction condo closing fees can be thousands of dollars higher than resale condo closing expenses, and that they CAN be regulated.)
If you decide to hire a Realtor to purchase a pre-construction condo in Toronto, make sure you choose someone who is familiar with pre-construction and the specific project you’re looking at. They’ll know the good buildings and builders, and they’ll be able to guide you through what can be a daunting procedure.