VIP Pre-sale Guide
What is VIP Pre-Sale?
In BC, we can buy brand new condos even before they are built, so that we could buy it at today’s market price for you future home 2-4 years later. You only need to pay 20%-25% deposit before it completes, and pay rest of the balance when you take possession. Which will give you the opportunity to save more money and down payment.
- You can pick the layout you like, chose the direction, floor level, and color scheme.
- You buy it at today’s market price, which 2-4 years in the future, the price usually will be much more expensive. And you only have to pay 20%-25% until it completes.
- It’s also a good way for investment, you’ll get a good return on the money you have invested.
- You won’t be able to see the real property, becuse it’s not built yet. You can only see it from show room and floor plan. You need to choose a reliable developer.
- Price sometime go up and down, so there is risk involved. It’s hard to predict the future. You should get a mortgage locked when the deal was made.
- You can find a good, trustworthy Realtor to help you. Or you can buy directly from the developer.
Why do you need a Realtor involved?
- The developer will not give you an extra discount because you don’t have a Realtor, but the price already had commission included in there.
- Having a professional Realtor can help you pick the unit best suitlable to your needs, and helping you draft contract terms which you will never thought of. Also helping you on each steps of the transaction, until the deal is smoothly closed. And assisting you to find a good lawyer, mortgage agent, etc.
- Providing VIP-Access. This is the most important part. In any market, VanRE Team can assist you to gain priority access, before others, to select the layout you like and get you VIP pricing for your future home.
- When you signing the contract, usually requires a 5% or a flate fee initial deposit. You will have 7 days recession period, which means you can cancel the contract at anytime before the 7 days ends, and get your full deposit back.
On the 7th day, if you decided to purchase the unit, then you will need to pay the balance of first 10% deposit (deduct what you have already paid).
Then within the next 90 days, you will need to pay another 5%-10% deposit.
Total, you will need to pay 20%-25% of deposit, based on the purchasing price.
What if the completion is delayed?
You don’t have to worry about it. Because all risks are developer’s before you take possession. All of your money is in lawyer’s trust account, which developer can’t get access to, until the completion date. Normally there will be terms in the contract say, the developer has the right to delay the completion up to a year max. You can choose to cancel the deal if they exceed 1-year delay. The lawyer will give your money back.
Can I sell before completion?
Normally you will need the developer to sign a consent form and pay a fee. Usually between 1-3% of the original purchasing price. Some developer won’t allow you to sell. Everything will be in the Assignment Clause.
What to look out for?
- Before sign the contract, you need to study the back ground of the developer, amanities within the project, surrounding environment. Reputation is very important.
- At the time of purchasing, you should research the price in the same area. If it’s a better deal buying presale or existing home. And think of your own situation, which is better. Look at the inflation over the years and predict a future price. Here is where a Realtor become very important, too.
- Look out for fine prints! Everything agreed upon, must be in writing!