Cell: 604-855-2521 |

Let's say you want to buy a new house, but you have to sell your house first? You have few options and here they are...

Option 1: Put an offer on the new home with a "subject to the sale" of your old house.
Pros: Safe, no risk.
Cons: You will have a tough time negotiating good terms for your new house since this subject is too complex. The builder will still market the house you want and if a better offer comes in, your offer may get bumped.

Option 2: You can trade your house if the builder is in the financial position to do so. (Just like trading in your car.)
Pro: Clean, no hassle selling your old house, quick move-in.
Con: The builder won’t pay you the market value since he will have to sell your old house and there are some costs attached with that, and they do not like losing money.

Option 3: Compromise between option 1 and option 2
Negotiate with the builder to give you a guaranteed trade in price but you would reserve the right to try to sell it yourself in the next 60 days or so.
Pro: No risk. You are moving regardless of what will happen. You can start packing. There is a chance that you will get more money for your house than the builder would pay you.
Con: I can’t think of any.

I hope this will help you. Email me for a list of builders who are currently offering the option to trade.

Please reply with any comments on this.
Kind Regards,

Tibor Bogdan

Read



What is a pre-sale?

Example scenario: When the developer intends to build an apartment building and applies for financing, the bank will grant financing under certain conditions. One of them will likely be a certain percentage of pre-sales the developer will need to secure before receiving the funds.
It is common practice for a developer to approach several real estate investors and offer them an opportunity to purchase units of the non-existent building at a discounted price, and on good terms.

Once the number of pre-sales is accomplished, the developer goes ahead with the construction, which will likely take two years or longer to complete. During construction, their marketing team offers the remainder of the units for sale at market value to the public.

If you are a RE investor, you know that it is preferable to be buying at the pre-sale prices, not market value prices.

The question is, how do you get the invitation to buy a pre-sale?
In the past many years, investors have made substantial income by buying at wholesale prices and selling at retail prices even before they needed to complete their purchase. I saw many of them lining up and sometimes even camping overnight in front of the sales center to get a chance to buy at lower prices, but not everyone was lucky enough. You needed to be well-connected to get an opportunity, and you had to act fast.

Today is a bit of a different story. Several projects in the Lower Mainland and Fraser Valley offer really good prices and incentives to secure a unit now and complete the purchase two or three years later. The list of incentives varies from one project to the next. Besides attractive prices, you can get low deposit amounts (5-15%), low or no assignment fees, free updates, a mortgage rate buy-down program, extra parking and more.

A month ago, I helped a few of my clients purchase a presale in Surrey that sold out in 2 days, and I know of another good developer that will be offering a few units for sale as well.

If you would like to know more about these opportunities, I would encourage you to call or email me, and I’ll be happy to send you details on those projects.
 
Kind regards,
 
Tibor Bogdan
Century 21 Creekside Realty Ltd.
45428 Luckakuck Way #190, Chilliwack, BC V2R 3S9
cell: 604-855-2521
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