Purchasing a new home via the builder or a realtor can be a great experience.

Approximately one third of all homes sold in Canada each year are new constructions.

Exploring the presale development market is always worthwhile especially when comparing to existing homes in established neighbourhoods.

Remember that it is important to keep in mind certain aspects of the home for sale before diving into the deep.

 

1. Compare multiple presale properties
Explore the neighbourhood of which the presale home will be built.
REW.ca (Real Estate Weekly) has some tools for finding your new home in the Metro Vancouver region. Prospective homeowners can find both MLS listed homes for sale and presale developments.
Exercise due diligence when considering any particular developer or builder
Spend a lot more time to review the developer’s Disclosure Statement.
Double Check the presale contract yourself them I highly recommend getting the
contract proof read by a lawyer.
Pre-delivery home inspection shortly before the buyer takes possession of the home
Be proactive and get the home warranty in writing

 

2. Hedge the known risks
When buying a presale home in the greater Vancouver area and fraser valley the price you see provided by the developer, or marketing firm is the price before GST and Property Transfer Tax. Use a PTT and GST calculator for finding out the net cost of a potential purchase
If the real estate prices in Vancouver were to decline and the value of the presale home at the time it completes is below what was originally paid, the Buyer is still obligated to complete. In other words, the buyer may not rescind from the completion without involvement of the real estate legal system
Buyers may not get exactly what they paid for. During construction of the home, changes can occur. Very often developers protect themselves in the fine print – Ensure you have ample time to review the contract and disclosure statement
Reasonable chance of the pre-sold building to not complete on time and the completion can be delayed
Never guaranteed of a profit once the presale has been completed
If a presale home needs to be sold before completion or at the time of completion, it is especially hard to compete with other sellers when the market is low
Not every bank will fund presale homes. Some lenders will only cover the value at completion. The downside is the amount could be less depending on the market conditions
Buyers could be moving into a construction zone if there are several phases to the development site

 

3. Acknowledge the foreseen advantages
Small deposit for the interim and save cash while the development is in the works
Have the ability to customize elements, and layout of the future home
Newly built homes are covered under the Home Warranty Insurance program in BC
Home buyers are protected under the Real Estate Development Marketing Act (REDMA) and should know their rights
The value of your home can be higher upon completion in a rising market
After a down payment has been made, the developer is required to provide at least 1 year warranty to cover issues before building is complete
Get the latest trends and technologies integrated into the newly built homes.

Feel free to contact Ronald Klarenbeek any time

nowsold.ca

 

By perry cheung.

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Home improvement projects across the board are giving home owners a greater return on their investment when it comes time to sell. Find out which projects “open the door” to buyers and where remodelling dollars stretch the furthest. january 14 Erica christoffer

 

As existing-home sales and home prices make remarkable strides upward nationwide, remodeling projects are also continuing to make a comeback in a big way.

 

This is the second year in a row that all 35 projects in Remodelingmagazine’s Cost vs. Value Report saw more home improvement dollars recouped upon resale of a home than the previous year.

the biggest gain in percentage of recouped costs was the addition of a backup power generator. This project, averaging $11,742, jumped 28 percent in estimated resale value, recouping 67.5 percent of its cost in 2013. The increase is attributed in the report to 2013’s “unpredictable weather and multiple large storms.”


Top Projects

 

If you are considering a home improvement project to boost the quality and appeal of your home, here is a list of the top 10 midrange and upscale projects from the 2013-14 Cost vs. Value Report:

 

Though accurate Pease Keep in mind that these cost are an average and your costs will vary depending of course of the size of "your project" .

 

Top 10 Midrange Projects

1. Entry Door Replacement (steel)
Job Cost: $1,162
Resale Value: $1,122
Cost Recouped: 96.6%

2. Deck Addition (wood)
Job Cost: $9,539
Resale Value: $8,334
Cost Recouped: 87.4%

3. Attic Bedroom
Job Cost: $49,438
Resale Value: $41,656
Cost Recouped: 84.3%

4. Garage Door Replacement
Job Cost: $1,534
Resale Value: $1,283
Cost Recouped: 83.7%

5. Kitchen Remodel
Job Cost: $18,856
Resale Value: $15,585
Cost Recouped: 82.7%

6. Window Replacement (wood)
Job Cost: $10,926
Resale Value: $8,662
Cost Recouped: 79.3%

7. Window Replacement (vinyl)
Job Cost: $9,978
Resale Value: $7,857
Cost Recouped: 78.7%

8. Siding Replacement (vinyl)
Job Cost: $11,475
Resale Value: $8,975
Cost Recouped: 78.2%

9. Basement Remodel
Job Cost: $62,834
Resale Value: $48,777
Cost Recouped: 77.6%

10. Deck Addition (composite)
Job Cost: $15,437
Resale Value: $11,476
Cost Recouped: 74.3%

 

Top 10 Upscale Projects

 

1. Siding Replacement (fiber-cement)
Job Cost: $13,378
Resale Value: $11,645
Cost Recouped: 87.0%

2. Garage Door Replacement
Job Cost: $2,791
Resale Value: $2,315
Cost Recouped: 82.9%

3. Siding Replacement (foam-backed vinyl)
Job Cost: $14,236
Resale Value: $11,124
Cost Recouped: 78.1%

4. Window Replacement (vinyl)
Job Cost: $13,385
Resale Value: $10,252
Cost Recouped: 76.6%

5. Window Replacement (wood)
Job Cost: $16,798
Resale Value: $12,438
Cost Recouped: 74.0%

6. Grand Entrance (fiberglass)
Job Cost: $7,305
Resale Value: $5,163
Cost Recouped: 70.7%

7. Deck Addition (composite)
Job Cost: $35,158
Resale Value: $22,881
Cost Recouped: 65.1%

8. (tie) Bathroom Remodel
Job Cost: $51,374
Resale Value: $32,660
Cost Recouped: 63.6%

(tie) Major Kitchen Remodel
Job Cost: $109,935
Resale Value: $69,973
Cost Recouped: 63.6%

9. Roofing Replacement
Job Cost: $34,495
Resale Value: $21,731
Cost Recouped: 63.0%

10. Bathroom Addition
Job Cost: $72,538
Resale Value: $43,936
Cost Recouped: 60.6%

The data used in the Cost vs. Value Report was collected with the help of REALTOR® Magazine in an online survey between August and October 2013.

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