5 Reasons to Purchase a Pre-Construction Home

Pre-construction homes offer many advantages over resale homes, but buying pre-construction is often not an easy decision for prospective homebuyers to make. Resale homes can provide a sense of character, cost-effectiveness, and are ready to move-in as soon as you close, but they also come with maintenance, risk, and can require renovations just to make them your own.

Pre-construction homes come at a premium, but there is tremendous additional value in buying from a builder with an exceptional track record like Regal Crest.

First of all, what is a pre-construction home?

A pre-construction home is a home that’s sold before it’s built. The buyer agrees to purchase the unit based off the renderings, plans, and location. This allows buyers to secure a property in a developing area, often at a lower price, while having the opportunity to customize certain aspects of the home before construction begins. Here are five advantages of choosing a pre-construction home.

1. A Distributed Down Payment

   When buying a pre-construction home, the initial payment is usually spread out over the length of construction. The down payment is usually 15-20% and is typically divvied up into 5% instalments over three to four years. This allows buyers an extended period of time to make their down payment instead of doing so as one larger lump sum.

2. It’s Brand-New

   The most straight-forward benefit of purchasing a pre-construction home is that it’s brand new. Compared to resale homes, your new investment will hold more value for longer because it’s built with up-to-date construction standards and the latest features and finishes. With resale purchases, renovations and ongoing maintenance are typically required.

3. An Easier Process

   With pre-construction purchases, you get to skip the sales and bidding process associated with resale properties. This makes pre-construction a great fit for buyers seeking a stable, low effort investment. Instead, the work comes in the form of selecting features and finishes to customize your home, but with pre-construction properties, expert design consultants are on-hand to guide you, ensuring a streamlined process that results in the exact home you want.

4. Tarion Warranty

   In Ontario, pre-construction homes are covered under Tarion, Canada’s new home warranty organization. If there are unexpected changes before, during, or after the home is built, Tarion will provide a variety of claim and coverage options. This includes protection against delayed closings, construction defects, deposit loss, and more, giving you peace of mind throughout the process.

5. Homes Can Appreciate in Value — Often Before They’re Even Built

   Since a pre-construction home takes several years to be built, its value has the potential to appreciate over time. By purchasing at today’s market price, you benefit from future market appreciation, meaning your property could be worth significantly more by the time it is completed.

Are you interested in buying a pre-construction home? Click here to check out Regal Crest’s newest communities.