When buying your first home, you might look at buying new or “resale homes” both are very difference processes. With a re-sale home bought through the original or future owners most choose to work with a Realtor in Calgary or other markets.
Having an agent to navigate you through the process, help with referrals to service providers, really makes the process a lot smoother for many buyers.
When buying a new home, driving up to that shiny sales center with the smiling representative in that gleaming show suite/show home is very exciting! However there are some things that many buyers do not know about the staff working in there.
1.
Firstly, the best way to not get tricked is by being educated about the dynamic.The staff in the sales center work for the Developer, they are paid to maximize profit for their employer – not get the best deal/value for money for the customers that walk through the door. They do the best they can with the scenario they are given, remember that they work for the “man/woman” not really for the customer.
2.
With all new product sales GST is applicable, for all new home sales in Alberta GST will be added to the purchase price and the price of any upgrades made to the property prior to construction. There will need to be disclosures singed to acknowledge that you understand were an how GST will be calculated for the sale.
3.
The most important thing to consider is that the builder will more often than not use THEIR OWN CONTRACT for the purchase. This is often non-negotiable and the builder’s team of lawyers have written this contract in their favor – not the consumers. Like any good business their lawyers wrote that sucker to protect THEM not YOU. Having this reviewed by your real estate agent or your own lawyer is highly recommended. (both would be a best practice)
Buying a brand new-home with new home warranty in a brand new building or a spanky new house in a new community with great amenities and new schools is exciting, make sure you keep that excitement all throughout the process by asking good questions and having a professional help you through the jungle -that way you are protected and often will be able to negotiate a better deal.
As always if you have any questions about this or other real estate topics, contact us today to book a discovery call.
To your success,
Tim Reid
-respect the hustle
