3 common mistakes made by pre-construction home-buyers

by | Nov 8, 2023 | Finance and Business, Home and Living

If you’re thinking about going pre-construction for your next home, you should know that it’s not the same as buying a resale home. Although you’ll have a brand-new home at the end of it all, the process takes longer, involves a lot more steps and many things can go wrong.

Help ensure your new-home buying experience is a good one by avoiding some of the most common mistakes. Here are a few:

Not researching the builder
Buying pre-construction is a major investment of money, time and emotion, and you’ll want to make sure you’re dealing with a reputable company. Before you sign a purchase agreement, visit a builder’s sales centre and some of the communities they built earlier. If possible, talk to homeowners about their experience – not just in terms of workmanship, but also customer service.

You should also consult the online Ontario Builder Directory, which will provide a clear picture of the construction history and after-sales warranty track record of a builder you’re interested in.

Not reviewing the purchase agreement with a lawyer
Purchase agreements are long and complicated documents, so it helps to have someone who can walk you through the details. A qualified lawyer will help you understand exactly what is included in the purchase price of the home and whether everything that was agreed to verbally by your sales representative is reflected in writing.

Since your purchase agreement is a binding contract, it’s important to meet with a lawyer before you sign it. If you’re buying a condo, there’s a cooling-off period of ten days after you sign an agreement during which you may cancel it without penalty.

Not learning about warranty coverage
Almost every newly built home comes with a warranty from the builder that is backstopped by Tarion, a consumer protection organization. Warranty protection includes deposit coverage, compensation for unlawful closing delays and coverage for various construction defects, both small and large. Without exploring how this all works, some homeowners could miss out on coverage they don’t know they have.

To ensure you benefit from the warranty protection you’re entitled to, look for more information early on in your home-buying journey on tarion.ca

Related Content

How newcomers can find meaningful careers in Canada

How newcomers can find meaningful careers in Canada

If you’ve recently moved to Canada and are frustrated by a tough job market, you’re not alone. Many newcomers struggle to find similar positions to those they held back home and take on survival gigs to support their families. Fortunately, there are many things you...

read more
Budget like a pro this summer

Budget like a pro this summer

As Canadians navigate the current financial environment, they are seeking ways to reduce their expenses. According to a recent Belairdirect survey, close to half (41 per cent) of Canadians think of themselves as financially savvy, with more than a third sharing their...

read more
How to help make your money grow

How to help make your money grow

In today’s complicated financial environment, every dollar counts for Canadians. Many may miss the opportunity to maximize their money. The question is: how should Canadians allocate their funds? Should they put it towards personal spending, savings or high-interest...

read more
Renovation projects that can add value to your home

Renovation projects that can add value to your home

Summer is a time to stretch your legs and enjoy the warm weather with your family and friends. During this time, many people are also looking to make upgrades to their home. Whether you’re looking to add more value to your home, make a few eco-friendly improvements or...

read more
3 tips for a perfect lawn this summer

3 tips for a perfect lawn this summer

A healthy, green lawn can add value to your property, create a space for entertainment and even help absorb pollution. Here are some tips to grow a lawn you’re proud of. First, mow high, meaning set the blade of your lawnmower for a two-and-a-half to three-inch cut,...

read more
Top tips to save on your car and home insurance

Top tips to save on your car and home insurance

Insurance is meant to provide peace of mind when you need it most. Yet, the monthly expense of car and home insurance remains a stressor for many Canadians. If you’re looking for a way to lower your insurance rates, you’re not alone. Start by exploring all your...

read more