Pre-construction of a home, as attractive and exciting as it seems, can have many risks. Earlier, we discussed the benefits of a pre-construction home in detail, but now it’s time to let you know. So if you are planning to pre-construction a house, read this guide to learn more about the possible risks and dangers.
What Are The Risk Of Pre-Construction of A Home?
Everything is not always a dream; we must consider the possibility that even a percentage of problems will arise in the pre-construction of a house. Of course, don’t worry; if you consult a professional real estate consultant before buying a home, you can reduce the percentage of these risks to zero. Now let’s check the most critical risks of the pre-construction of a house.
Fluctuations in the real estate market
Home prices can change. The market conditions may be balanced when you buy a house if, after some time, you face a sudden price drop. So you have to accept the risk that you are more likely to profit than pre-construction a house, but you may sometimes lose.
Because you can never be sure that the market will move in your favour if you plan to sell your pre-purchased property before or after construction is complete, you may not be able to get the offer you want to sell the property, or you may not be able to sell it at all.
No profit guarantee
If your only reason for a pre-construction home is to make a profit, let’s walk away from your purchase because that might not happen. For various reasons, the real estate market may fluctuate. To ensure this, it is better to consult a professional real estate consultant, measure the conditions, and act.
Failure to deliver the house on time:
Buying a house in advance is only suitable for some because it requires patience, so if you are in a hurry, skip it. Because the completion of the project may take longer than expected, This is quite common due to the complexity of the construction process. If you have pre-purchased a house and plan to move in at a certain time, any delay can cause a lot of problems.
For example, you may have to vacate your previous home to the new owner at the appointed time if the home you pre-purchased still needs to be prepared. Therefore, imagining such a situation can be painful.
Non-fulfillment of constructive obligations:
Due to the increase in the price of housing construction costs, the property developer may not fulfill his obligations, the construction of the house will be completed, and the construction project will be stopped. In this case, the buyers may have to pay more than they had agreed to so that the project’s construction can resume.
Scam
One of the worst things that can happen when buying a home is dealing with a scammer. These people have no obligation; once they receive the down payment, they break all of their obligations. Unfortunately, the most common fraud method is selling the same unit to more than one person! Therefore, before buying a house, you should make sure about the credit and permits required to build a house; you can contact the GTA Home Network to introduce you to the most reliable projects under construction in GTA.
Failure to use quality materials
One of the most important reasons people prefer a pre-construction house to buy an old house is that they can evaluate the materials’ quality. When drawing up the contract, you may be promised that quality materials and materials will be used in the construction of the house. Still, this is not the case, and poor-quality materials are used. For this reason, it is emphasized that the contract must emphasize the use of quality materials so that you can follow up on this issue later.
Financial loss
The rate of financial failure in construction projects is alarmingly high. Businesses find that the easiest way out of financial problems is to file for bankruptcy. After declaring bankruptcy, some projects can be revived, while others are destroyed.
Delay in receiving mortgage
The mortgage you applied for may be ready after time. Therefore, when buying a pre-construction home, you must accept the risk that your loan may not be paid on time.
How To Prevent The Risk Of Pre-Construction Homes?
The best and most complete answer to this question is to write everything clearly on the contract. The most important issues that you should research before pre-construction a house are the ones that are listed below.
- Determining the number of floors and units to be built
- Determine your floor and unit number accurately
- Specify the size of the unit and the number of rooms
- Make sure to have parking and storage
- Request installation of cooling and heating system
- Ask about the appearance and exterior of the building
- Ask about the materials used
- Check the specifications and details of interior decoration such as cabinets, room colours, etc
- Be sure to ask for the delivery time
When you ask the seller to answer these questions and promise in the contract that he will implement all of them, you will be sure that in case of any lack of work on the seller’s part, you can legally claim this. Follow up on the issue.
Pre-construction of a home has a lot of risks, so everything should be clearly defined from the beginning so that you can follow up through the law if needed. However, we advise you to take your time with the pre-construction of a house from projects that have just started; let at least half of the work be done to prove the project’s health. If you need more guidance and advice about the pre-construction house, you can use the experience of consultants with experience in the GTA Home Networks; we are waiting for your call.
