Should You Buy Directly from the Builder or Use a Realtor for Your Toronto Pre-Construction Condo?

  • 9 months ago
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The Toronto pre-construction condo market is sizzling hot, with numerous developments in progress. If you’re considering a pre-construction condo purchase, you might be pondering whether to enlist the help of a Realtor or go solo. While we are Realtors and, admittedly, have a bias, here’s a compelling case for utilizing a Realtor’s expertise:

  1. The Builder’s Sales Team: It’s important to remember that when you buy directly from the builder, you’re dealing with the builder’s sales team. Their primary allegiance is to the builder, not to you. Their goal is to secure the highest price and the best conditions for the builder. This means they may not have your best interests at heart when it comes to pricing, contract terms, or resale and rental restrictions.
  2. Realtor Compensation: Yes, Realtors get paid for their work, but if you bypass a Realtor, the money that would have gone to them doesn’t typically end up in your pocket. Instead, it often goes to the builder’s sales team or the builder themselves. Rarely do buyers receive discounts for not using a Realtor.
  3. Complexity and Legal Nuances: Buying a pre-construction condo is a complex process laden with legal intricacies. Recent examples, such as buyers at the Trump Tower facing resale restrictions, highlight the potential pitfalls. A knowledgeable Realtor can help navigate these complexities to protect your interests.
  4. Access to the Best Units: By the time a new condo project is publicly available, many of the most desirable units are already sold. Some projects are even 50% sold before they reach the public market. To secure the best units, such as those on high floors with optimal layouts and views, partnering with a VIP Realtor who has early access to condos before public release is invaluable. Moreover, a reputable VIP Realtor can often secure special pricing and upgrades for you.
  5. Negotiating Leverage: While builders are often seen as non-negotiators, there are negotiable aspects a knowledgeable Realtor can handle. This includes negotiating upgrades and potentially capping development closing costs, which can be substantially higher for pre-construction condos compared to resale units.

If you opt to work with a Realtor for your pre-construction condo purchase in Toronto, it’s essential to choose one well-versed in pre-construction properties and knowledgeable about the specific project you’re interested in. A qualified Realtor can guide you through the process, offering insights into reputable builders, desirable buildings, and ensuring a smooth journey through what might initially seem like a daunting process.

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