You may have heard of a “pre-sale” regarding new construction and been a little confused. You are not alone; it is challenging term. How does a home “sell” before it sells?
Essentially, a pre-sale home is one that is available for purchase before it’s move-in ready. As a buyer, you won’t complete the transaction, or “close” on the home until it is complete, but you are able to secure the home with a contract and lock in your price.
There are several advantages to purchasing in a pre-sale scenario, but to take advantage you need an agent with the right knowledge and relationships. Some of the benefits of buying pre-sale are:
- EARN INSTANT EQUITY: As prices continue to go up, by securing your purchase before the home is complete, you may be able to start earning equity before you even close.
- AVOID COMPETING WITH OTHER BUYERS: Even if you don’t get a break on price, purchasing pre-sale can help you to get under contract, keeping you from having to compete against multiple other buyers.
- DELAYED NEW MORTGAGE PAYMENTS: Buying pre-sale can give you time to sell your current home or for your lease to end. You should already have your financing for the new home in place before the pre-sale purchase, but you won’t start making new mortgage payments until after it is complete. You can list your current home or get closer to the end of your rental agreement while your new home is being completed, allowing you to minimize any extra payments.
- WORRY-FREE HOME OWNERSHIP & WARRANTY: Another perk of buying new construction is that you get a brand-new home – meaning that you will typically have minimal maintenance costs as a new homeowner, and you often get a warranty from the builder, ensuring that any settling or unforeseen issues will be taken care of in the first year or two.
So, how do I find out about pre-sales?
Finding pre-sale homes is all about relationships and knowing the market. To take advantage of these little-known opportunities, you need to find an agent who has the appropriate connections and experience with the new construction market. Working with a broker team with a primary focus on new construction with relationships with local builders, as well as other brokers with high volume in the new construction market will be your biggest asset.
The Home Docket Team has been one of the top selling real estate groups in Seattle over the past decade. Our expertise in new construction and relationships with both builders and listing brokers in this niche market give our buyers a huge advantage when looking for new construction and pre-sale opportunities. Contact us today to see how we can help you.