{"id":379,"date":"2017-10-02T22:48:59","date_gmt":"2017-10-02T22:48:59","guid":{"rendered":"https:\/\/www.realestateleads.ca\/blog\/?p=379"},"modified":"2024-02-22T21:04:21","modified_gmt":"2024-02-22T21:04:21","slug":"4-pre-construction-closing-costs-homebuyers-should-be-aware-of","status":"publish","type":"post","link":"https:\/\/www.realestateleads.ca\/blog\/4-pre-construction-closing-costs-homebuyers-should-be-aware-of\/","title":{"rendered":"4 Pre-Construction Closing Costs Homebuyers Should Be Aware Of"},"content":{"rendered":"
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\"Sanierung<\/a>There\u2019s no debating that buying a home during a pre-sale or even further in advance of construction beginning has many benefits. In addition to more agreeable pricing as the first buyer, your clients will also have more in the way of options for customizing their home, modifying it to accommodate a mortgage-helper suite if need be, etc. etc. As well, presale buyers will often have a grandfathered-in clause allowing them autonomy over whether or not they choose to rent out their unit, independent of complex-specific rental restrictions.<\/p>\n

Here at Real Estate Leads<\/a>, our online lead generation system for realtors in Canada has been so especially well received by realtors coast to coast, and we believe that helping you have further success with the increased opportunities it\u2019s providing for you is beneficial for one and all. A knowledgeable realtor is always one held in high regard by prospective clients, so this week we\u2019ll yet again share information on a subject yours may well want to know of \u2013 pre-construction closing costs.<\/p>\n

They tend to be rather unexpected surprises for many a buyer, and you\u2019ll be fostering better relations between them and yourself if you can make them better aware of these costs long before they near their closing on purchasing a home.<\/p>\n

A Few Last Pricey Hurdles<\/strong><\/h3>\n

It\u2019s easy to get caught off guard with closing costs when buying a pre-construction home. They\u2019ll vary depending on the value of the home, the municipality in which it\u2019s located, and whether you\u2019re a first-time home buyer or not.<\/p>\n

As a general rule of thumb, advise your clients to have 2 \u2013 4% of the purchase price earmarked for closing related costs.<\/p>\n

Some of the most common of these added closing costs are:<\/p>\n

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  1. \n

    Development Charges<\/strong><\/h3>\n<\/li>\n<\/ol>\n

    Pre-construction properties most often have development levies at the insistence of the city. The property developer will almost always pick up the lion\u2019s share of them, but a portion of these costs are still passed on to the individual or couple purchasing the home. These development levies are very necessary; they go towards capital and operational expenses for the city, like building new schools, maintain utilities infrastructure, or funding new transit initiatives.<\/p>\n

    Clients considering buying a pre-construction home should aim to be very clear on whether or not there\u2019s a cap on development charges, unless they\u2019d like to be surprised at closing perhaps. Low rise homes will have their own specific charges, for benefits such as driveway paving, community tree planting, and work needing to be done to meet municipal building specs. Of course, every situation is different \u2013 you can go ahead and recommend your clients consult with a real estate lawyer you trust, in order to review the documents and be 100% clear on applicable fees.<\/p>\n

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    1. \n

      New Home Warranty<\/strong><\/h3>\n<\/li>\n<\/ol>\n

      A New Home warranty is the term used for a warranty for a buyer\u2019s pre-construction home. What\u2019s typically covered within it?<\/p>\n