Real Estate Red Zone – Suckers Buying Dog Units in New Condos
I get daily calls and emails from people who are looking to buy new construction, a condo project that has yet to be built. Here’s a typical one:
“Hello, are you the sales person for The Modern Condos? (or any other project)”
“Hi, I am independent Realtor, and I represent Buyers who wish to purchase or invest on new Toronto Condos.”
“Ah, well we’re just going to walk in there and find out for ourselves.”
“OK, but let me tell you how I can help you improve your investment and save money”
“No, we’ll just go ourselves”
Sound the Red Zone Alarm!
These Buyers walk into the sales centre and are about to buy the Dog Unit! that’s right, that unit nobody wants to buy but some sucker will. They’re also about pay the highest price possible with the worst terms available.
These buyers are almost certain not to know how to read a floor plan, they won’t know about future developments in the area that will pop up right into their window – imagine if they paid extra for Western Exposure and lost it before the building even went up – who wants to buy the dog units? who who?
Say a development had a special and it just finished. Say it was $5,000 off the price and a nice upgrade package. Say that the buyers walked in a day after the promo ended – they will not know about it and will not get the discount and upgrades from the developer. However, a Realtor sporting good relations with builders can easily ask the builder to throw in the package and discount. And in most cases, the builder will say yes: I’ve done this many times successfully.
The Realtor can help you re-structure the downpayment percentage and structure. But you won’t be able to if you walked in by yourself. Why? b/c the builder trusts the Realtor to introduce them with great clients, no speculators, people who are end-users, they will actually live in the unit and become a part of the community, and that’s why the builder will negotiate with me – a trusted third party – but not with you, as you have no previous record with the builder.
We encourage everyone that is about to transact to get in touch and meet in person.
Looking forward to your email,
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