{"id":23677,"date":"2023-09-04T06:00:00","date_gmt":"2023-09-04T10:00:00","guid":{"rendered":"https:\/\/www.zoocasa.com\/blog\/?p=23677"},"modified":"2023-09-01T13:14:02","modified_gmt":"2023-09-01T17:14:02","slug":"purchase-process-for-pre-construction-homes","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/purchase-process-for-pre-construction-homes\/","title":{"rendered":"The Purchase Process For Pre-Construction Homes"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Purchasing a pre-construction home offers an exciting opportunity to be involved in the creation of your dream property from the ground up. While it can be a rewarding process, it also requires careful planning and consideration. In this article, we will provide a comprehensive guide to help potential buyers navigate the intricacies of buying a pre-construction home, including mortgage pre-approval requirements, deposit structures, and the importance of involving a real estate lawyer for review.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Enjoying our content? Subscribe to our free<\/em><\/strong><a href=\"http:\/\/zoocasa.com\/newsletter\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>&nbsp;weekly newsletter<\/em><\/strong><\/a><strong><em>&nbsp;to get real estate market insights, news, and reports straight to your inbox.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">First Steps<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Before embarking on your preconstruction home journey, it is essential to obtain a mortgage preapproval from a reputable financial institution. This step helps you determine your budget and establishes a realistic price range for your new home. Most preconstruction homes also require a mortgage preapproval as a criterion for purchase. It is important to note that the pre-approval needs to be tailored towards the property purchased and often must include the property address and amount in the pre-approval.\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Read: <a href=\"https:\/\/www.zoocasa.com\/blog\/buying-precon-interim-occupancy-vs-final-closing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Buying Pre-Construction: Interim Occupancy vs. Final Closing<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Preconstruction homes typically require a substantial deposit, usually around 20% of the purchase price. However, the deposit is paid in installments rather than as a lump sum. Most new developments allow the last 5% to be paid on occupancy therefore be sure to have at least 15% ready.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Do Your Research<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Engaging a qualified real estate lawyer is essential when purchasing a preconstruction home. They will review the Agreement of Purchase and Sale, Disclosure Documents which includes budgets and maintenance fees for a condominium as well as the bylaws and surveys of the property. A good real estate lawyer will also help negotiate fees in the Agreement within the 10-day cooling period.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Thoroughly research the reputation and track record of the developer before committing to a preconstruction home purchase. Look into their previous projects, customer reviews, and their financial stability. This due diligence will help you make an informed decision and ensure that the developer has a history of delivering quality homes on time.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Read: <a href=\"https:\/\/www.zoocasa.com\/blog\/pre-construction-benefits-downsides\/\" target=\"_blank\" rel=\"noreferrer noopener\">Weighing the Pros and Cons of Pre-Construction Homes<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Get Help from Professionals<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While it&#8217;s impossible to predict the future, it&#8217;s important to consider the potential impact of market conditions on your investment. Speak with real estate professionals and conduct market research to gain insights into the local real estate market. Understanding the trends and economic factors can help you make a more informed decision and assess the potential appreciation of your investment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Buying a pre-construction home offers the opportunity to customize your dream property and be part of its creation from the very beginning. Be sure to have post-dated cheques, and your mortgage pre-approval and always make sure you receive a copy of your Agreement of Purchase and Sale and Disclosure Documents after all parties have signed so that you can take it to your lawyer to review.&nbsp;Remember to conduct thorough research, ask questions, and seek professional guidance to make a well-informed decision that aligns with your vision and financial goals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unsure of whether you should go the resale or pre-construction route?&nbsp;<a href=\"https:\/\/www.zoocasa.com\/buy-with-zoocasa\" target=\"_blank\" rel=\"noreferrer noopener\">Give us a call today<\/a>&nbsp;to speak to a real estate agent who can help you make the right decision.<\/p>\n\n\n<div class=\"cta\">\n<div class=\"cta-left\">\n<div class=\"cta-title\">Considering a move this fall?<\/div>\n<div class=\"cta-body\">Contact us today to speak to a Realtor in your area<\/div>\n<\/div>\n<div class=\"cta-right\"><a href=\"https:\/\/www.zoocasa.com\/sell-with-zoocasa\"><button class=\"cta-button\">Talk To Our Experts<\/button><\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Purchasing a pre-construction home offers an exciting opportunity to be involved in the creation of your dream property from the ground up. While it can be a rewarding process, it also requires careful planning and consideration. In this article, we will provide a comprehensive guide to help potential buyers navigate the intricacies of buying a [&hellip;]<\/p>\n","protected":false},"author":136,"featured_media":23679,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"1","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"0","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"1","show_popup_post":"0","number_popup_post":"1","show_author_box":"1","show_post_related":"1","show_inline_post_related":"0"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"footnotes":""},"categories":[1191],"tags":[],"class_list":["post-23677","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pre-construction"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Purchase Process For Pre-Construction Homes | Zoocasa Blog<\/title>\n<meta name=\"description\" content=\"Considering a pre-construction home? 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