FAQs about New Homes, Richmond
What are New Developments?
New developments are collections of homes that are planned, being built, or, well, newly built. They’re known by other names too including pre-sale, new construction, and new build, amongst others. The key differentiator is that these homes are often purchased before or during the construction phase. This makes it a slightly different, but very beneficial, buying process. A development could be a new apartment building with 200 condos, or a brand-new community made up of townhomes, duplexes, and single-family homes. Whatever they include, one thing is for sure - they’re shiny new. Read the ultimate pre-sale and new development guide here.
Which buyers are New Developments for?
Real estate developers build new construction homes for all types of buyers and often start any project by defining who these buyers could be. On REW you’ll find various options including condos, apartments, townhouses, and single-family homes to suit your size and style requirements. Builders will consider a range of price points that will often be met by the construction materials, quality of finish, and amenities in a development. One of the key things to consider as a new construction buyer is the timeframe - ultimately, you will need a home that is ready now, in one year, or in three years' time. Look for the development’s completion date and information on the first occupancy date to help guide you here. Check out our video that explains whether new homes are a good option for first-time buyers here.
Why should I buy a New Development home?
New developments are built according to new construction codes, are far more eco-friendly and come with a new-home-warranty safety net. Many new developments are built in exciting new communities too, so you’ll benefit from a considerable list of thoughtful amenities and services to live your best life. On the money side, you have more time to obtain financing as you only need to have your deposit available (which can be paid in stages) until the home is ready to live in. At this time, you’ll pay your mortgage. You’re Also, time is on your side. If you buy a home this year, the price reflects that - and you obviously pay your deposit then. When the home is ready in, say, 2 years' time, the market has shifted, and will (almost without exception) have increased in value, giving you the ability to move in, rent it out, or leverage and sell before your mortgage activates. There are so many other great benefits to purchasing a home in a new development that you can read about here.
Where can I find a map of New Developments for sale?
Our REW real estate map has a specific search for new construction, pre-sales, and new developments. You can search your favourite areas, save and bookmark developments to view later, and filter new developments by your requirements. View our New Construction map here.
What is the process of buying a New Development home?
The pre-sale, new construction, or new development buying process involves a few unique steps compared to other real estate purchases. Check out our full guide here. Two things that will define the process include the development’s selling status and its construction status. If the pre-sale development is in ‘registration’ or ‘coming soon,’ the developer is collecting interested buyers who may want to purchase when they decide to sell. At this stage, simply pop your name down to receive development updates. When they are actively selling, you may be able to visit a sales centre where there may be a show home or building models. If there are units available that have been built already, you can tour the brand-new homes before you purchase. When you decide to buy the home, you usually only need to pay part of the deposit upfront, with the rest coming in stages - then you wait for the building to complete its construction.
Do I need a mortgage for a New Development home?
If you’re a cash buyer, then you might not need to read this. But for most of us - yes, you’ll need a mortgage to buy a new development home. The purchase and mortgage process for new developments is slightly different and can vary depending on the developer that you’re buying from. Often, your deposit will be required in stages, which allows you to spread out the payments. Also, you won’t be making any mortgage payments until the keys are in your hands. Our team at REW Money would love to talk to you about all of the complexities of new construction mortgages, contact an advisor here.
What happens after I buy a unit in a New Development?
The great thing about new developments is that there are a number of ways to protect you after you’ve purchased a unit. Firstly, there is a rescission period which is the time between your offer being accepted and the contract to purchase becoming legally binding. It varies by province, in BC it is 7 days and in Ontario, it is 10. Depending on when the home is ready to live in, you’ll receive various updates and specialized after-care services offered by the developer. You may be able to choose some of your custom finishes, or you may be offered the chance to tour the construction site. When the home is ready, you’ll be given the opportunity to check its quality in your deficiency walkthrough. This is where you can view the home with your agent, advisor, and a customer care representative of the developer. After you’ve moved into the house, you’ll also be covered by a new home warranty that covers issues related to the build of your home for the first year of its occupancy. We go through all the potential steps involved after you buy a pre-sale or new construction home in our video here.