ARE THERE PROS & CONS TO PRESALE?
- Byjessijohnson
- InBlog
- PostedFebruary 17, 2023
Find presale buying opportunities here: jessijohnsonrealtor.ca/pre-sale
You may have heard of the term “presale” in the real estate industry. Presale refers to the sale of a property that has not yet been built or completed. Essentially, buyers are purchasing a property that is still in the planning or construction phase.
Presales have become increasingly popular in the real estate market, especially in areas where there is high demand for new housing. This is because presales offer buyers the opportunity to purchase a property at a lower price than they would pay once the property is completed.
As a mortgage broker, it’s important to understand presales and the potential benefits they offer to your clients. One advantage of purchasing a presale property is that buyers can often customize the design and finishes to their liking, creating a more personalized living space.
Additionally, presales can provide a longer timeline for financing. Buyers typically make a deposit on the property during the presale phase, and the rest of the payment is made once the property is completed. This gives buyers more time to save for the down payment and get their finances in order, making it easier to secure a mortgage.
However, presales also come with their own set of risks and challenges. For example, there is always the possibility of construction delays or changes to the property design that could affect the value of the property. Buyers should also be aware of the potential for the final cost of the property to be higher than originally anticipated.
As a mortgage broker, it’s important to discuss these risks with your clients and help them navigate the presale process. By understanding the benefits and challenges of presale properties, you can help your clients make informed decisions and secure the right mortgage for their needs.
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