Real Estate

Why do people buy new unbuilt homes?

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  • Apr 2nd, 2017 5:41 pm
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Deal Addict
Nov 26, 2004
4462 posts
4127 upvotes
skeet50 wrote: I also don't think that they'll get what they are asking. Especially when you consider this listing in the same neighbourhood (https://www.realtor.ca/Residential/Sing ... ld-Meadows). I think for that price buyers are looking for hardwood floors, 9' ceilings on the main and fenced rear yards. As the ad states for rent or sale, I am guessing that this is a rental that the landlord would rather unload than rent.
Agreed, but what I am trying to point out is an Apple to Apple comparison. Also, in the example you provided, it is not a free hold town home, some buyers will screen out condo towns when they are looking. Also, once a buyer factor in the condo fees as part of their monthly payment, the decision get more difficult as the monthly carrying cost is comparable between the two.
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Nov 2, 2013
5697 posts
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Edmonton, AB
abc123yyz wrote: However, builders have gotten greedy and aren't pricing at current levels but forecasting 3+ years of appreciation.
I'm in Alberta so the market is very different VS. GTA, GVA, as we are in a recession. But builders here are greedy too. They don't overprice by forcing appreciation, but while you can often bargain <=3% in one area for a very similar resale property, you're lucky to get <=1% off.

Going through that right now, as I've been writing offers on an university condo here. We are currently fighting over $3000.
Accountant (Public Practice)
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Dec 27, 2009
7941 posts
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Victoria, BC
William W wrote: This is another case where pre construction is cheaper than existing home of the same model, this time out in Barrhaven.

Resale listed for $259k

https://www.realtor.ca/Residential/Sing ... f-Moon-Bay

Pre construction selling for $239k + $8k discount or $13k at decor + stainless steel appliances.

https://mattamyhomes.com/ottawa/communi ... pleby.aspx

And this is not cherry picking listings either, as the next cheapest resale Appleby model beside the first example is listed for $265k.
https://www.realtor.ca/Residential/Sing ... f-Moon-Bay
I hate the fact that these new places have zero yards. What a shame. 21 x 44 foot lot? Terrible.
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Dec 27, 2009
7941 posts
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Victoria, BC
William W wrote: Agreed, but what I am trying to point out is an Apple to Apple comparison. Also, in the example you provided, it is not a free hold town home, some buyers will screen out condo towns when they are looking. Also, once a buyer factor in the condo fees as part of their monthly payment, the decision get more difficult as the monthly carrying cost is comparable between the two.
I agree about avoiding condo towns (especially since most townhouses around here are freehold). There are loads of freehold towns though that are in the same area for around $300K - $320K (this can often be for an end unit).
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Dec 1, 2013
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redflagdeals.com
I guess you could save yourself from endless bidding wars by purchasing a pre-sale home/condo.
¯\_(-.-)_/¯ A wise RFD'er once said, "Buy now, think later."

༼ つ ◕_◕ ༽つ Behold!
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
What's so hard to understand? You get a brand new house ie: no renovations, no "surprises". You also get to pick your own finishes and build it how you liek instead of paying a premium for somone elses renos/decor and having to pay money to change it.

On top of that, the thought is the price will appreciate and it tends to be cheaper than resale.

Those are all the advantages. There are plenty of disadvantages too.
Sr. Member
Jan 15, 2013
890 posts
158 upvotes
Mississauga
FirstGear wrote: I'm in Alberta so the market is very different VS. GTA, GVA, as we are in a recession. But builders here are greedy too. They don't overprice by forcing appreciation, but while you can often bargain <=3% in one area for a very similar resale property, you're lucky to get <=1% off.

Going through that right now, as I've been writing offers on an university condo here. We are currently fighting over $3000.
Man I wish I was fighting over 3k here in the GTA. I always need to put up the 20k from my max offer which equates to 1-2 decent cars that I need (I end up losing).

If you really like what you're going for and don't earn minimum wage just try to settle at 1500-2k and call it a deal.

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