Key benefits in buying a pre-construction assignment unit just before closing include: comparing prices among other pre-construction units closing in the near future and other resale units, negotiating the purchase price, not having to wait 4 years or more for new pre-construction, and buying a new, never-lived-in home with full Tarion warranty.
Diana is in the market to purchase her first home. She will be moving to Toronto in the Fall after securing a new employment opportunity. She is having a hard time finding something that falls within her price range as the real estate market in the city is so high in demand, most resales end in bidding wars and selling for much more than asking price and a pre-construction condo most likely will not be ready for occupancy when she needs it to be.
The real estate agent that Diana is working with suggests the idea of looking into and potentially purchasing a new home from a pre-construction assignment listing. Since these pre-construction units could be listed for sale several months before being ready for occupancy, this could be a perfect option for Diana to consider. Her real estate agent also informs her of the many benefits she can take advantage of in regard to buying an assignment.
A key benefit that Diana can take advantage of is price negotiation. Diana can get herself a great deal and potentially save herself a lot of money when it comes to buying a pre-construction assignment condo. Since the real estate market is so hot right now, there really is not an opportunity to negotiate a resale and pre-construction sale prices are set by the developer and typically not negotiated. Assignment sales are the best way for Diana to walk away with a great deal, she can work out a deal right with the seller of the contract. The original purchaser may need to sell quickly and may be more open to hearing offers, allowing Diana to propose an offer and potentially purchase under market value, saving her even more money.
A lot of potential homebuyers that are searching for their new or next home do not have much knowledge of assignment sales. Because of developer’s restrictions on advertising and listing of the contract, these types of sales are a bit harder to find. That’s why Diana’s real estate agent has suggested searching through these listings, not as many people have knowledge of them, so there is less chance of competition for the unit and less chance of ending up in a bidding war with other potential buyers.
Diana essentially becomes a VIP without having to purchase during the VIP sales period of a pre-construction build. Whatever special incentives were included in the original purchaser’s contract, free parking, free locker, décor dollars, closing credits etc. will now carry over to Diana when she purchases the assignment, once again potentially saving her thousands of dollars.
Another huge benefit that Diana gets to take advantage of is being able to move into a brand new, never lived in home. No one has used the bathroom or appliances before, and typically comes with full Tarion warranty, giving Diana complete peace of mind with her purchase. And depending on what stage construction is at with her physical unit, she may still have the opportunity to visit the décor centre and pick out her own designs, features, and finishes, allowing her to truly make her new home her own.
Since assignment sales are usually posted for purchase closer to interim occupancy, another benefit of purchasing for Diana is being able to move into her new home sooner. Pre-construction builds, well at least ones of a high-rise nature, usually take 4-5 years to complete and be ready for occupancy. By purchasing an assignment, Diana’s new home will be move-in ready in months compared to years.
If you are interested in purchasing your new pre-construction home through an assignment listing or even just interested in learning more about how they work or could benefit you, please do not hesitate to contact a CondoNow Certified Expert today, we are here to help you find your new or next home.
