10 Questions to Ask a New Condo Developer
- November 5, 2021
- By Cody Battershill
10 Must-Ask Questions for New Condo Buyers
Buying a new or resale condo is a decision of significant financial consideration and you should be comfortable, informed and confident with the details of your potential purchase every step of the way.
Getting the absolute best deal on a new condo means there are a number of questions you’ll want to ask about a particular unit, and the answers to those questions you are more than satisfied with. In other words, do your due diligence and don’t make the same mistakes many new condo buyers make.
The questions below are to help you understand the overall benefits or potential detractions from every condo showroom you visit. Remember these variables when buying a new condo in Calgary. Also see:
#1 - Who is the developer?
Who is the new condo developer and what is their overall reputation? Can you easily find any red flags on this particular developer with a quick Google search or on the Better Business Bureau’s website?
#2 - What is their experience?
Does this new condo developer have experience in designing and building the type of product you’re interested in? Do they have an extensive portfolio showing what type of buildings they’ve completed in the past (mid-rise, high-rise, wood vs. concrete, etc.) and are they in the same city as you?
#3 - Who is the contractor?
What construction contractor has been hired for the job? Once again, does this contractor have a good reputation backed up by online reviews, or are there red flags that pop up when doing a quick Google search?
#4 - What is the possession date?
New condos can often be delayed for months upon months. Does the developer have a firm possession date when you can move into your unit and can they give you any guarantee of that date? Protect your best interests by asking what they can do for you if your possession date is in fact delayed for any reason.
#5 - What is the outside date?
Just for those of you who don’t know what the “outside date” exactly means, it’s a term that condo developers use to specify a date that the project will be finished if it misses the “completion date.” It’s like saying “if we miss the initial completion date, we are 100 per cent certain we’ll be done by the outside date.” Once again, make sure you’re completely comfortable with the outside date and can make other arrangements if the completion of the project is in fact delayed by several months.
#6 - What is the deposit structure?
Are you comfortable with the deposit structure the condo developer has proposed? Do you have your finances arranged accordingly to make the payments required, and if not, can you get those in order in due time? If not, is it possible for you to alter the deposit structure to help you meet the payment requirements?
#7 - How is my deposit protected?
Alberta law, for example, dictates that your deposit must be protected by a new condo developer or home builder. However, some consider deposit insurance to further protect their investment. If you need to know more about deposit protection, ask your Realtor® and they should be happy to help.
#8 - How many units are remaining in the whole building?
Is a new condo building you’re thinking of buying filling up fast? Is the building still relatively empty, despite construction being underway? Step back and evaluate what it means if there are a low/high amount of units remaining in the building before making any moves, and how those could affect your real estate goals in both the short-term and long-term.
#9 - How many units are remaining in the whole project?
Once again, is there still a low or high amount of units remaining in the entire project? Is one building looking like it’s a more favourable purchase than another once this analysis has been made? If so, why is that? Step back and do a full evaluation of how such an occurrence could affect your real estate goals.
#10 - What other developments are happening in the area?
Are there any new condo projects the developer is aware of that may cut off your unit’s view at some point in the next few years? Do they plan on building more phases of development that could affect your unit’s overall desirability in some way or another? Protect your investment by asking the developer, and make sure to do your own due diligence and look into it with the city and online via search engines.
Due Diligence Matters
Buying a condo may be one of the largest purchases you’ll ever make. Do your due diligence and make sure that you ask all the right questions and are satisfied with all the answers provided to you by a developer.
If you need help feeling confident when dealing with a sales team, contact a professional Realtor® who specializes in new condos. They will help guide you towards a successful transaction which ensures you’re 100 per cent satisfied with your purchase when all is said and done. Because nobody would want anything else!
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