If you’re thinking of buying a pre-sale in Squamish and have some questions about what’s available and what the process is, then this guide is for you!
There are numerous pre-sale opportunities available in Squamish with approx. 3,500 additional housing units already approved for Squamish’s downtown core. Squamish is one of the hottest real estate markets in the province with lifestyle driven individuals and families migrating north from the Lower Mainland making up the majority of the buyers in Squamish right now.
In this guide you will learn everything there is to know about buying a pre-sale in Squamish whether as a primary residence, investment or recreational property.
Pre-purchase stage
Finding out what’s for sale
Finding out what’s for sale and what’s coming up is the first step when wishing to purchase a pre-sale. With so many developments at different stages, it’s hard to know the current inventory on the market, and what’s coming up soon. The District of Squamish’s development showcase map is a great resource to see current and future projects and where they sit in the way of approvals. You can also stay up to date with development news by signing up for our monthly development updates. For a current list of new developments see here.
Getting to know the community
You may know Squamish well, or you may only be familiar with it in passing on your way up to Whistler. Either way, having an understanding of the community, where new developments are taking place and what the real estate market is doing, is important in the pre-purchase stage. Most of the new developments are happening in downtown Squamish however there are also pockets of new construction happening in the Tantalus area, University, North Yards and around Brennan Park.
To get a lay-of-the-land and a briefing on where development is taking place, you can book a complimentary tour with Move to Squamish and we will show you around.
Work with a real estate agent or the developer?
Will you work with a real estate agent when buying your pre-sale or directly with the developer and their sales and marketing team? Although there is nothing wrong with working with the developer, when choosing to work with a local real estate agent you not only get unbiased representation of all development projects; your best interests are always represented throughout the transaction (and not the developers).
When working with an agent you will have a local expert helping you find the right pre-sale opportunity, have a professional to look over all contracts and paperwork, and have someone to walk you through each stage of the buying process. There is typically no charge to work with a real estate agent when buying a pre-sale.
Getting qualified
It’s important to have an understanding of what you can afford before signing the dotted line. A quick mortgage pre-approval will give you the confidence to enter into a pre-sale contract having a good understanding of what your repayments will look like down the road, and what the interest rate environment may be like when it’s time to start paying off your loan.
Rebates and entitlements
There are a handful of rebates and entitlements available for qualifying buyers purchasing new construction in British Columbia such as the Newly Built Home Exemption and the First-time Home Buyer’s Program. For additional programs see here.
Purchase stage
Securing a unit
By the time you get to the purchasing stage you likely have a good idea of the type of unit you are hoping to buy. Typically at this stage you will have access to floorplans, and will know at least the starting price point for each unit type. Each developer launches pre-sales slightly different; however, we are commonly seeing unit preferences being submitted, where buyers indicate two or three preferred units. Of course, the contract is not signed before full details such as price, deposit amount and disclosure statements are reviewed to the buyer’s satisfaction. When working with a real estate agent you will be guided and advised through this purchase process.
The deposit
The first deposit is typically due upon contract signing (usually 5 percent), or after the 7-day rescission period (see below for more on this). We are commonly seeing a 20 percent deposit as standard with pre-sales though some developers have lesser deposit structures for buyers who are not able to put down 20 percent. This can sometimes be negotiated depending on the developer and the stage of sales. Deposits are usually paid via bank draft or wire transfer.
Fees and expenses
Besides the deposit, there are other fees and expenses to be aware of. Property Transfer Tax, which is payable upon completion is one percent of the first $200K and 2 percent on the balance up to $2Million (full details here). GST of 5 percent of the sale price is payable on all new construction in BC at completion time. Legal fees should also be factored in, these can cost around $1,000 and are payable at completion time.
Typically building inspections are not done on new construction, instead a deficiency walk-thru will be conducted with deficiencies listed and addressed. Lenders may impose loan fees and mortgage insurance must be considered if less than 20 percent is being paid as a down-payment. For a full list of fees and expenses to expect when buying a home see here.
The contract and important documents
There are several documents that must be reviewed and signed when purchasing a pre-sale.
Purchase Agreement– The purchase agreement is the contract which outlines details of the buyer and the vendor, the purchase price, unit (or strata lot) details, the deposit schedule, and terms of the contract.
Disclosure Statement and amendments- The disclosure statement is a very important document which outlines information about the development, the developer, the strata, the construction process, phasing and much more. This document must be read and signed to form part of the contract. As the development progresses amendment documents will be published which also require signatures from the buyer.
Floorplan/ floorplate- As part of the documents you will need to sign a floorplan, site-plan and or floorplate to form part of the contract.
Upgrades- If upgrading your unit (appliances, features, etc.) a document outlining upgrades and any additional costs will need to be signed.
Rescission Period
It is important to know that when buying pre-sales in British Columbia buyers are privy to a 7-day rescission period as per the Real Estate Development and Marketing Act. This period gives buyers enough time to thoroughly review all documents, seek legal advice if desired, and ‘cool off’ after making the initial purchase decision. Buyers are able to be released from the contract for any reason during this rescission period and require notifying the developer within 7-days if they do not wish to proceed with the purchase. Here is a legal description of the recession period and buyer’s rights.
Post-purchase stage
The waiting game
Once the contract documents are signed and the first deposit(s) are paid, the waiting game begins. Here in Squamish we are typically seeing about two years between initial pre-sale launch and completion (move in day). During this time the only thing you need to remember are when subsequent deposits are due; this is stipulated in the contract. Amendments to the disclosure statement will also need to be reviewed and signed as they are published.
Assigning a contract
If for whatever reason you are unable to complete and take possession of your unit, the option of assigning your contract may be possible. This involves transferring the contract to another person who would then assume all the same legal responsibilities as you with regards to the purchase. There is often a fee to assign the contract (around 2 percent is common), and other stipulations such as the developer needs to be sold out and assigning can’t take place too close to completion date.
Deficiency Walk-thru
A few weeks before it’s time to get possession of your new home a deficiency walk-thru will be scheduled. This is a buyer’s opportunity to walk through the home with a representative of the developer to assess the construction quality and make note of any deficiencies in the construction. Most deficiencies are then dealt with before possession however some are documented and reviewed one year later at the follow-up deficiency walk-thru.
Having a real estate agent or someone familiar with the construction process attend a deficiency walk-thru with you is a huge advantage to ensure all deficiencies are picked up and rectified.
Last words…
There are so many exciting projects coming up in Squamish over the next decade. Having an experienced real estate agent represent you in finding the perfect home or investment will ensure your needs and requirements are met, and that your best interests are taken care of throughout the purchase process.
Move to Squamish is a mother-daughter real estate team with 30 years of experience selling real estate in Squamish and a combined 60 years of living in the Sea to Sky corridor! Having helped numerous buyers secure pre-sale condos and townhomes in Squamish, Meghan and Nanci would be happy to assist you in finding the perfect home here in Squamish.
To work with Move to Squamish when buying a pre-sale in Squamish, contact Meghan and Nanci and let’s get the process started.
- DUPLEX FOR SALE: 38035 Sixth Avenue & 38033 Seventh Avenue - December 5, 2019
- Squamish Real Estate Stats | March 2019 - April 14, 2019
- Buying Pre-Sale or Re-Sale | Weighing up the Pros and Cons - April 14, 2019