Presale property is attracting more attention then before.
The market of presale properties has interest from several types of buyers. From first time home owners, down sizers to investors.
What are a presale properties?
A developer will sell units in a building before it is completed. The buyer will be asked to put down a deposit of 5% to 10%, depending upon the developer. Presale units can take anywhere from 1 year to 5 years or more to complete.
Why presale?
There are multiple reasons presale properties can work for a person wanting to purchase a unit.
Financial Considerations
Flexibility – For the first time home owner, it gives time to get the down payment together. Down sizers have the opportunity to get their current home ready for sale.
Investing – buying at todays prices knowing the investment will increase in value.
Easy of Mind
Less hassle – new buildings have less problems than older buildings. You are less likely to deal with an out of service elevator!
If you have decided not to move into your home you have options. You can sell your home or rent it. New properties are always in demand regardless of whether you are selling or renting.
Contact Geoff when you have any presale questions!
What is the difference in market versus assessment value. What are the calculations based on? In a hot market, like we are in now, these values can look vastly different. Let’s take a look the bases of market value versus assessment value.
Original Bathroom
Assessment Value
The assessment is taken in July of the previous year. This assessment will be used by the City to determine your taxes and is a generalization.
Property size
View
Additions
Location
Age of property
Sales prices from homes in your area
Updated and maintained.
Market Value
Lot size, is the lot flat, on a flood plain, on a rocky mountain?
Property size, number of bedrooms, bathrooms, floor plan
View, is the home looking at industrial park or a beautiful view of the city
Locations, it is a desirable location, easy access to transit, freeways, highways
Age of property, new, old, update, regular maintenance
Sales of homes comparable in your area from the past 3 months
New, roof, air conditioning, hot water tank, appliances
Market value assessment is much more specific and current. The trends and sales of comparable houses in the area during the past 3 months are used. Based on this the value can be quite different than the assessment value.
Example
Looking at two houses both the same age, neighborhood, square footage, floor plan, and lot size. Now, the first has not even maintained the lot, or the home itself. And the second house, immaculate lot, home is well maintained, updates in kitchen and bathrooms, new flooring throughout, new upgraded appliances.
The assessed value these two properties would be similar. And market value on the other hand, would see them very differently. Market Value is ever changing. And for that reason, when buying or selling your home talk to your Realtor. They can do a Market Assessment for you. Having access to the most up to date information is crucial when buying or selling a home. Never go it alone!
