The Liberal Government both at the Federal and provincial level as well as Mayor of Toronto seem hell bent on bringing down the prices of real estate to make it affordable for everybody. In some imaginary world this is going to stick. The problem is with their plan is...read more
I’ve had enough of these builders and you should really beware before buying a new build.
Over the past 10 years I’ve been selling Real Estate, I’ve had one bad situation over another with my clients. The past two years, I’ve reached my limit and I’m here to say don’t buy a new build, you’re better off buying something that is built already and let somebody else deal with the stresses that come along with closing a house.
I will play devils advocate and say that if for some reason you find a reputable builder and have dealt with that builder, than you could actually make some money, and have a great experience. On the other hand, in my experience, I have been seeing one bad situation over and over to warrant that most builders are not doing a great job and really screwing the end user you at the end. Here are all the things I’ve had to deal with my clients that should not be happening.
1. Closing Cost: While most lawyers will put a clause to cap certain costs, (which I make sure that are in there) There are builder levies that can reach thousands of dollars. I recently had clients see closing costs from the builder hit over $10,000 for a 1 plus den & $19,000 2 bedroom plus den. My clients were not happy and were scrambling to find money.
2. Delays: I’ve have not seen a condo builder close on time. I believe they are allowed to delay up to three times. I have also seen a builder not even start a project, and it has been 3 years and there is nothing anybody can do about it. Also deposits, and occupancy fees must be paid during these delays. These delays can mean a lot of things, no payment to your mortgage, and no increase in value if the project altogether is delayed.
3. Not being able to rent or sell: Most builders are not allowing you to rent or sell units until the final closing. If you want to sell, you will have to pay huge assignment fees. There goes your profit. I had a builder tell my client a few years ago that he couldn’t rent his unit. So he got the unit, and was planning on renting it, then it had to sit empty until final closing, which was months. Think about it!
4. Workmanship: One of my clients recently purchased a new build house that was so poorly constructed that it had to be renovated when it was moved into. I couldn’t believe the work, with my family being in construction for so many years. (Don’t get me started on condos) Also good luck in getting these builders coming back to fix anything. They have up to a year while you look at your wall which is crooked.
5. New development cheaper than your unit: A few years back, I went to a new phase launch. The builder released the prices and I was astonished when the builders prices were 20% cheaper than the last phase. I spoke up at the meeting and said, hey, we are selling a unit in phase 2, how can you sell it 20% cheaper, now my client can’t even sell the unit. They did not answer me. The truth is, the builder wanted to get his units sold quick and didn’t care about the previous buyers or the market in that building.
6. Assignment fees: Builders can charge whatever they want for assignment fees. They can typically say no to any assignment fees. What if the mortgage rules change and you don’t qualify anymore since you are waiting for two years for this condo to close?
I can make this list 10 pages long, but I will stop there. While I might sound like I’m complaining, the honest truth is, I want my clients to succeed, make money and not get hit with any surprises. While many agents out there have great stories, these experiences are mine, and my opinion. I’m sure there are great stories of people buying cheap new builds sitting on it for two years, and making a ton of money. Yeah that is out there, but my clients are just trying to get ahead and buying that first investment or first property. Those things have not been my experience, so my advice to you is… Call me, let’s talk! 🙂
READ RECENT BLOG & ARTICLE POSTS BELOW
I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...read more
I've had enough of these builders and you should really beware before buying a new build. Over the past 10 years I've been selling Real Estate, I've had one bad situation over another with my clients. The past two years, I've reached my limit and I'm here to say don't...read more
The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider: Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....read more
When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....read more
I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...read more
One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...read more
Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...read more
The liberal government has announced that they will be doing something to calm the renting hikes from landlords. While this is a good thing for renters, it could be a detriment to housing and landlords going forward. Some landlords have already become proactive and...read more
While the Ontario Government cut this John Tory's dream of having a great highway into Toronto short, I believe he was on the right path to increasing the value of Real Estate. When I heard they were going to add some sort of toll to cars going into the city, I was...read more
Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...read more
What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market. The middle & lower class does not like the fact that they cannot afford any real estate at...read more
Right now marijuana, and grow ups are a fairly minimal concern when buying houses. Agents typically put a clause that the owner never grew or has known about any grow ops in the house, but this is about to change next year. What is changing is that July 1st, 2018,...read more
Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...read more
For the past few years, all of the new buzz in Market was for aerial footage. While it was great and produced some really cool pictures and video, there is going to be a shift away from the practice. Many Real Estate agents got their own drones, and did their own...read more