The Buzz with Presale Housing in Victoria. Should You Buy New?

Dated: July 1 2021

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Are you planning on moving to Victoria or do you already reside here? Whichever it is, you may be wondering about whether to purchase a new construction home or a resale home. There are pros and cons to both, however this post will focus on new home sales for the sake of understanding more about pre-sales and new construction in the Victoria area. 

If you are considering purchasing a new construction home, it’s important to take note of a few of the advantages and disadvantages prior to making any firm decisions.

Some main advantages to buying a new construction home:

Accessibility - In the current Victoria market, competition is high and inventory of resale homes is often low. Therefore, one great aspect of new home construction is the piece of mind with purchasing a home if your plans are to move to the island, retire on the West Coast, find a vacation home, etc. Due to the building timeline, competition for new construction homes is lower than on resale homes which buyers can directly go to at an open house or property viewing with their REALTOR®. This makes organizing a long distance or future move less stressful, knowing that your new home will be projected to be completed when you are ready to make that transition. Additionally, some resale homes on the market may not meet your accessibility needs or standards that newer construction homes can provide such as new green technology, functionality and increased on-site amenities.

Personalization - When you buy a new construction home you get choices not available in the resale market. Depending on the type of new home you buy, your builder will work with you to select the right details from the floor plans to features and finishes. Many of the new construction homes on the market in Victoria combine function and style, with open and inviting living spaces, lots of natural light, well-designed work spaces and built-in convenience. They have that light, airy and fresh aesthetic, which is a great asset when many people are working from home.

BC New Home Warranty – Every new construction home in BC has to be covered by The New Home Warranty. This warranty which extends for 10 years is known as the 2-5-10 warranty. The first 2-year warranty is on labor and materials. The next 5-year warranty is on the building envelope, which includes water penetration and finally the 10-year warranty on the structure of the home. This warranty is part of the Home Owners Protection Act in BC and must be provided by all builders to their potential purchasers.

 

Some disadvantages when buying new construction:

Delays – Developers do their best to complete the build by the projected dates, however construction delays do happen and are often unpredictable. Some factors that affect the timeline of a new build include inclement weather, supply issues on the island, labour shortages, etc. It is important for buyers to factor in potential and unforeseen costs in order to cover any move-in delays.

 

Expectation vs. Reality –When working with your REALTOR® and the developer on contract negotiations, make sure that you are signing off on a specific floor plan, features and finishes. Major changes from these specifications would be considered a breach of contract.

The process to purchase a new construction home is exciting and can provide consumers with fantastic opportunities. With that being said, there are lots of aspects to go over to make sure it is the right fit for you and that you are satisfied with your purchase decision. The first step is to contact and work with a knowledgeable and trusted REALTOR® to exclusively represent you as the Buyer and provide you with loyal, informative, timely and professional service. This invaluable service most often does not cost the Buyer anything since the REALTOR® is compensated from the Seller’s once the sale is completed.

Next you will want to do some research on various builders in the Victoria area that fit with your preferred location, price, accessibility, etc. The majority of developers that have new construction companies put their all into these projects and have a great deal of pride in the work they do. It is their brand, their name, their vision and reputation on the line so providing their best service is at the forefront of every home sale. On the buyer’s end, having some flexibility and understanding of the particulars of such projects is also a must. Open communication, cooperation and a mutual understanding of the process is beneficial on both sides. 

Last and definitely not least, it is very important that anyone looking to purchase a property seek legal guidance from a lawyer that has expert knowledge on the local real estate market of Victoria. This will give you that added protection to thoroughly go through the lengthy new construction disclosure statement and the purchase contract to make sure that you are protected in regards to major delays or changes that may arise.

Below are a couple links that showcase New Construction Homes in Victoria, BC:

Condominiums, Townhouses, Duplexes, Detached Homes, Rental Properties

Contact me for more information on New Construction Homes and to start your search today!

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Jemilla Khan

Jemilla is a residential REALTORĀ® in Victoria, BC. She serves the communities of Victoria, Oak Bay, Esquimalt, Victoria West, Saanich West, Saanich East, the Westshore and more. Previously to getting....

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