Frequently Asked Questions
Have questions? We’re here to help! Whether you’re curious about pricing, features, or how we work, you’ll find all the details right here. If you don’t see your question listed, feel free to reach out to us directly – we’d love to assist you!
Presale units let you lock in today’s price for tomorrow’s home, however that only makes sence if the market is moving upward! Understanding the details and careful planning are keys to a smart purchase.
What is a presale property?
A developer may offer units for sale either before construction is completed or after the project is finished. A presale property refers to a unit sold directly by the developer prior to completion. In this scenario, buyers enter into a purchase contract at a fixed price, with the home to be delivered once construction is complete. Buyers typically provide a deposit upfront, with the remaining balance payable upon completion of the property.
Alternatively, a developer may sell units after construction has been completed. This allows buyers to view and inspect the brand-new, move-in ready unit before making a purchase decision, offering greater certainty regarding the finished product.
Each approach has its own advantages and considerations, and market conditions and trends can influence the benefits and risks associated with either type of transaction.
Why choose a presale property?
The Smart and Stylish Way to Invest in Your Future Home,
In the right market conditions, brand-new, move-in-ready homes can present exceptional opportunities. Developers may offer attractive promotions, incentives, price adjustments, or upgrade packages, allowing buyers to enjoy the benefits of a new home immediately—without the wait. For buyers seeking certainty, immediate occupancy, or strong value in a shifting market, this option can be absolutely compelling.
*That New-Home Feeling
There’s nothing quite like the appeal of a brand-new home. With no previous owners and the a full 2/5/10 home warranty, your property is truly yours—modern, fresh, and low- maintenance. This “new-home appeal” often attracts quality tenants willing to pay a premium, making it attractive for both homeowners and investors.
*Lock in Today’s Price, Plan for Tomorrow
In Greater Vancouver’s dynamic real estate market, presale purchases allow you to secure today’s pricing for a home that will be delivered in the future. While market conditions can shift, this approach offers the potential to benefit from long-term growth while planning ahead with confidence.
*Your Credit Score Stays Intact
Purchasing a presale property typically does not impact your credit until completion, when financing is finalized. This allows buyers to maintain financial flexibility—particularly beneficial for those managing multiple investments or future purchases.
*More Time to Save, Less Pressure
With construction timelines often spanning two to three years, presale units provide valuable time to prepare for your down payment and future mortgage. This extended horizon allows for thoughtful financial planning while securing today’s market value.
*Hassle-Free Ownership During Construction
While your home is being built, there are no tenants, mortgage payments, property taxes, or strata fees to manage. You can participate in the market without immediate carrying costs, while your future home steadily takes shape.
*Your Home, Your Style
Many presale developments offer customization options, including finish selections, colour schemes, and upgrade packages. This allows you to personalize your home from the start—without the inconvenience of renovations.
*Extra Convenience and Practical Add-Ons
Presale projects often provide opportunities to purchase additional parking stalls or storage lockers. These extras enhance both day-to-day convenience and long-term resale value.
*Modern Design and Energy Efficiency
Built to current standards, presale homes feature contemporary layouts, energy-efficient systems, and modern building technology—offering comfortable and stylish living.
*Opportunity to Benefit from Market Growth
As your home is under construction, market appreciation may occur, allowing potential value growth even before completion. This can create a strong long-term advantage for well-selected projects.
*Built-In Buyer Protection
British Columbia’s seven-day rescission period gives buyers time to review their
purchase carefully. Combined with the 2/5/10 home warranty, this provides peace of mind well beyond move-in day.
What are the risks of buying a presale unit?
By understanding these potential risks, you’ll be better equipped to weigh the pros and cons of buying a presale property and make a decision that aligns with your goals and circumstances. Connect with us and we can help you navigate these challenges with confidence.
*Potential Construction Delays
While developers set an anticipated completion date, unexpected factors like weather, labor shortages, or material delays can extend construction timelines. This can impact your plans, especially if you’re counting on moving in or renting out the unit by a specific date.
*Market Fluctuations
Real estate markets can be unpredictable. If property values decline between the time you sign the contract and the completion of the unit, you could end up paying more than the market value for your home.
*Financing Challenges
Mortgage approvals are typically issued closer to the completion date, meaning interest rates or lending criteria could change before you finalize the purchase. This can make financing more difficult or expensive than anticipated. We recommend working with lenders who, upon purchasing a presale unit, can issue a mortgage approval that extends through to the completion date, providing greater certainty and peace of mind.
*Uncertainty in Developer Performance
While most developers are reputable, there’s always a risk that a project may be delayed indefinitely or even canceled if the developer encounters financial or logistical issues. In such cases, your deposit is usually refunded, but it can be a lengthy process.
*Limited Control Over Final Details
Although presale units often allow for some customization, the final product might not perfectly match what you envisioned or what was shown in marketing materials. Changes in floor plans, finishes, or layouts can occur.
*Strata Fees and Additional Costs
The projected strata fees at the time of purchase may increase once the development is completed. Although there are some exclusions toward some closing costs such as GST and property transfer tax, buyers should check with their lawyer regarding the potential closing costs and legal fees.
*Deposit Risks
Presale units require an upfront deposit, typically 5-25% of the purchase price. While this secures your unit, these funds are tied up for years and may not generate a return during this time.
*Lack of Immediate Ownership
Unlike buying a completed property, presale units mean waiting sometimes years before you can move in or begin earning rental income. This delay may not align with your personal or investment goals.
*Changes in Life Circumstances
Life is unpredictable. If your financial situation or personal goals change during the construction period, you may face challenges meeting the obligations of your presale agreement.
*GST and Tax Implications
Though there could be some exceptions, buying a presale property often incurs a 5% GST, which can be a significant addition to your overall costs. Familiarizing yourself with tax implication is crucial for accurate budgeting.
Is a presale property the right choice for me?
A presale property may be an ideal option if you are seeking modern features, require additional time to prepare your down payment, or wish to invest in an emerging area. That said, it is important to carefully consider your financial readiness, lifestyle objectives, and comfort level with market conditions, as well as the waiting period before the property is completed.
In the right market, however, purchasing a brand-new, move-in-ready home directly from a developer could be a great option too. In this case, buyers can often take advantage of attractive promotions, incentives, and price adjustments.
How can I choose the right presale property?
Choosing the right presale property requires a thoughtful balance of research,
financial planning, and market awareness. Key factors to consider include:
*Defining your goals,
* Assessing your financial readiness,
* Focusing on location and neighbourhood fundamentals,
* Evaluating the developer and project details, and
* Understanding pricing within the broader market context.
At Presale Masters, we provide a comprehensive and up-to-date analysis of Greater Vancouver’s presale and move-in-ready market, helping you identify opportunities that align with your goals and criteria.
How much upfront deposit do I need?
The deposit amount and payment schedule can vary depending on the project. Typically, deposits range from 5% to 25% of the purchase price and are paid over a period of 3 to 24 months. It’s important to note that developers may adjust the deposit structure or amount during the construction phase, so staying informed about any changes is crucial.
Use BC’s 7-day rescission period wisely—consult a lawyer to review your contract, a mortgage broker and an accountant to plan your financing with confidence.
What happens if the developer cancels the project? Is my deposit safe?
Deposits governed by REDMA are protected. If a project is canceled, your deposit is typically refunded in full. However, the timeline for refunds may vary. Choosing a reputable developer can help mitigate this risk.
How does financing work for a presale property?
You’ll typically need to pay a deposit upfront, which is held in trust until completion. The remainder of the purchase price could be financed closer to the completion date which can be even 2-3 years ahead. It’s recommended to get pre-approved for a mortgage and stay updated on lending conditions.
Are there hidden costs I should be aware of?
In addition to the purchase price, you may encounter costs like GST and closing fees. Working with Presale Masters can help you anticipate and budget for these expenses.
Do I need to consult a lawyer?
It is a wise choice to have a lawyer review the documents associated with your presale purchase to ensure everything is clear and legally sound.
A knowledgeable lawyer can:
* Help you understand the terms of the purchase agreement.
* Explain the developer’s disclosure statement in detail.
* Provide guidance on any legal issues or complexities that may arise during the buying process.
* Prepare an exact amount of your closing costs and check for any tax exemptions.
By involving a legal expert, you can navigate your presale purchase with greater confidence and peace of mind.
Can I sell my presale contract before the property is complete?
In some cases, presale contracts can be assigned to another buyer, but this depends on the developer’s policies and the terms of your agreement. Assignment sales may also involve additional fees and tax implications.
What is the Seven-Day Rescission Period?
In British Columbia, buyers of presale condos or new homes are granted a seven-day rescission period. This allows buyers to cancel their purchase agreement within seven days of receiving an accepted offer, without incurring any penalties.
During this time, buyers are advised to conduct their due diligence, such as reviewing the disclosure statement, consulting with a lawyer, accountant, financial planner, or mortgage broker, and ensuring the purchase aligns with their financial and personal goals.
If the rescission period passes without action, the contract becomes legally binding on the buyer.
Who do we work for and how are we compensated?
We work for you and get compensated by the Seller! Presale Masters works as your real estate representative, guiding you through real estate opportunities across Greater Vancouver.
As your realtor, we:
*Represent your interests throughout the buying process,
*Research and analyze the full market—not just one project,
*Help you compare presale and move-in-ready options with the neighbourhood market based on your criteria,
*Explain pricing, incentives, risks, and trade-offs clearly,
*Coordinate with developers, sales teams, and other professionals involved in the transaction.
Our role is not to push a specific project, but to help you make an informed decision that aligns with your goals, criteria, and comfort level.
We act as your advocate from initial discussions through completion and beyond.
What are our core duties as your realtor?
When you work with Presale Masters as your realtor, we owe you three fundamental duties:
1. Loyalty.
We act solely in your best interest. This means putting your goals first, avoiding conflicts of interest, and providing guidance that is not influenced by commissions, promotions, or developer preferences.
2. Confidentiality.
Your personal, financial, and strategic information is kept strictly confidential. This includes your budget, motivations, and negotiation position. This duty continues even after the transaction is completed.
3. Full Disclosure.
We disclose all material information we are aware of that could influence your decision. This includes market factors, pricing considerations, risks, and relevant property or project details—so you can make informed choices with clarity and confidence.
Together, these duties ensure you are represented with transparency, professionalism, and care throughout the buying process.
What is a presale property?
A presale property is a unit sold by a developer before construction is complete. Buyers enter into a contract to purchase the unit at a fixed price, with the home delivered once the project is finished. Buyers typically pay a deposit upfront, with the final balance due upon completion of the property.
Why choose a presale property?
The Smart and Stylish Way to Invest in Your Future Home! (Smart point)
- That New Home Feeling
There’s nothing quite like the sparkle of a brand-new property. With no previous owners and a 2/5/10 warranty, your home is truly yours—fresh, modern, and worry-free. Plus, this “new-home magic” often attracts tenants willing to pay a premium, making it a win for investors too.
- Lock in Today’s Price, Plan for Tomorrow
In Vancouver’s dynamic real estate market, presales let you secure today’s price for a property that could appreciate in value by the time it’s ready. While market trends can shift, it’s a smart move to invest in your future.
- Your Credit Score Stays Intact
Purchasing a presale property does not affect your credit score until the home is complete and you secure a mortgage for it. This is ideal for those juggling multiple investments or loans—maintain your financial flexibility while planning your next move.
- More Time to Save, Less Stress to Pay
With construction timelines often extending 2–3 years, you have a golden opportunity to save up for your down payment. This extended timeline lets you plan your finances with ease while locking in today’s market value.
- Hassle-Free Investment
During construction, there are no tenants, property taxes, mortgage payments, or strata fees to worry about. Enjoy being in the real estate game without the immediate responsibilities—just sit back as your future home takes shape.
- Your Home, Your Style
Many presale developments offer customization options, from choosing finishes to color schemes and even upgrades like custom floor plans or sleek appliances. It’s your chance to design a home that matches your vision, minus the hard hat.
- Extra Convenience and Peace of Mind
Need additional parking or storage? Many presale properties offer add-ons like extra parking spots or storage lockers. These little extras go a long way in making your future home even more convenient and stress-free.
- Modern Features and Energy Efficiency
Presale properties are built to today’s standards, featuring energy-efficient systems, smart home technology, and contemporary designs. They’re stylish, functional, and eco-friendly —perfect for comfortable, low-maintenance living.
- Benefit from Market Growth
While your home is being built, the market may appreciate, meaning your investment could grow in value even before you get the keys. It’s like giving your future self a financial boost.
- Built-in Buyer Protection
British Columbia’s seven-day rescission period lets you carefully review your decision and move forward with confidence. Plus, the 2/5/10 warranty ensures you’re covered long after you move in.
What are the risks of buying a presale unit?
By understanding these potential risks, you’ll be better equipped to weigh the pros and cons of buying a presale property and make a decision that aligns with your goals and circumstances. Connect with us and we can help you navigate these challenges with confidence. (Smart Point to consider)
- Potential Construction Delays
While developers set an anticipated completion date, unexpected factors like weather, labor shortages, or material delays can extend construction timelines. This can impact your plans, especially if you’re counting on moving in or renting out the unit by a specific date.
- Market Fluctuations
Real estate markets can be unpredictable. If property values decline between the time you sign the contract and the completion of the unit, you could end up paying more than the market value for your home.
- Financing Challenges
Mortgage approvals are typically issued closer to the completion date, meaning interest rates or lending criteria could change before you finalize the purchase. This can make financing more difficult or expensive than anticipated.
- Uncertainty in Developer Performance
While most developers are reputable, there’s always a risk that a project may be delayed indefinitely or even canceled if the developer encounters financial or logistical issues. In such cases, your deposit is usually refunded, but it can be a lengthy process.
- Limited Control Over Final Details
Although presales often allow for some customization, the final product might not perfectly match what you envisioned or what was shown in marketing materials. Changes in floor plans, finishes, or layouts can occur.
- Strata Fees and Additional Costs
The projected strata fees at the time of purchase may increase once the development is completed. Buyers should also prepare for potential “closing costs,” such as property transfer tax, GST, and legal fees, which can add up.
- Deposit Risks
Presales require an upfront deposit, typically 15-25% of the purchase price. While this secures your unit, these funds are tied up for years and may not generate a return during this time.
- Lack of Immediate Ownership
Unlike buying a completed property, presales mean waiting years before you can move in or begin earning rental income. This delay may not align with your personal or investment goals.
- Changes in Life Circumstances
Life is unpredictable. If your financial situation or personal goals change during the construction period, you may face challenges meeting the obligations of your presale agreement.
- GST and Tax Implications
Buying a presale property often incurs a 5% GST, which can be a significant addition to your overall costs. Familiarizing yourself with tax implications is crucial for accurate budgeting.
Is a presale property the right choice for me?
A presale property might be ideal if you’re looking for modern features, need time to save for a down payment, or want to invest in a growing area. However, it’s important to assess your financial readiness, lifestyle goals, and comfort with waiting for the property to be completed.
How can I choose the right presale property?
Consider factors like the location, reputation of the developer, amenities offered, your budget and your long-term goals. At Presale Masters, we specialize in helping clients find the perfect presale property to meet their needs.
How much upfront deposit do I need?
The deposit amount and payment schedule can vary depending on the project. Typically, deposits range from 5% to 25% of the purchase price and are paid over a period of 3 to 24 months. It’s important to note that developers may adjust the deposit structure or amount during the construction phase, so staying informed about any changes is crucial.
What happens if the developer cancels the project? Is my deposit safe?
Deposits governed by REDMA are protected. If a project is canceled, your deposit is typically refunded in full. However, the timeline for refunds may vary. Choosing a reputable developer can help mitigate this risk.
How does financing work for a presale property?
You’ll typically need to pay a deposit upfront, which is held in trust until completion. The remainder of the purchase price could be financed closer to the completion date which can be even 2-3 years ahead. It’s recommended to get pre-approved for a mortgage and stay updated on lending conditions.
Are there hidden costs I should be aware of?
In addition to the purchase price, you may encounter costs like GST, closing fees, and upgrades or add-ons. Working with Presale Masters can help you anticipate and budget for these expenses.
Do I need to consult a lawyer?
It is a wise choice to have a lawyer review the documents associated with your presale purchase to ensure everything is clear and legally sound.
A knowledgeable lawyer can:
- Help you understand the terms of the purchase agreement.
- Explain the developer’s disclosure statement in detail.
- Provide guidance on any legal issues or complexities that may arise during the buying process.
By involving a legal expert, you can navigate your presale purchase with greater confidence and peace of mind.
Can I sell my presale contract before the property is complete?
In some cases, presale contracts can be assigned to another buyer, but this depends on the developer’s policies and the terms of your agreement. Assignment sales may also involve additional fees and tax implications.
What is the Seven-Day Rescission Period?
In British Columbia, buyers of presale condos or new homes are granted a seven-day rescission period. This allows buyers to cancel their purchase agreement within seven days of receiving an accepted offer, without incurring any penalties.
During this time, buyers are advised to conduct their due diligence, such as reviewing the disclosure statement, consulting with a lawyer, accountant, financial planner, or mortgage broker, and ensuring the purchase aligns with their financial and personal goals.
If the rescission period passes without action, the contract becomes legally binding on the buyer.