At Van Geest Group, we’re big fans of modern homes, whether they’re custom structures or new builds. With updated finishes, sleek designs, and no skeletons in the closet from previous owners, there’s a lot to love about buying a new home in Ontario.
However, not all new homes are created equal, and there are a few things you need to watch out for if you’re planning on purchasing a new home. Between where you want to buy your new home, which developer has constructed it, and the terms and conditions of your purchase, a lot of things can end up going south with what seems to be a relatively safe new build purchase.
So if you’re planning on buying a new home in Ontario, follow our guide below outlining some of the key fundamental details you should be keeping top-of-mind ahead of moving into your brand new home.
Research The Developer
The all-important first bit of homework you as a new home buyer in Ontario must do is research your home’s developer. Between the developer themselves, the construction teams they rely on, and their previous track record on new build projects like yours, the more you know about who is building your new home, the better.
Research them online and see what their overall unbiased reputation is while also seeking out any homeowners who currently live in structures completed by your developer, preferably within your neighbourhood.
The Ontario Builder Directory is a fantastic resource for researching new build developers’ licenses and qualifications too. Information about your potential developers’ recent projects and whether or not they’ve made any legal claims on them over the past 10 years can be essential in determining whether they earn your business or not.
Get a Home Inspection
Just as you would when buying any piece of real estate in Ontario, it’s crucial you receive a thorough home inspection on your new property before moving in. This will ensure that once your new home is completed, everything has been constructed up to standard and is in-line with your purchase agreement.
Your initial home inspection before you take possession will be with the developer and/or builder present and is called the Pre-Delivery Inspection (PDI). The PDI is a mandatory clause for all new homes under warranty and is followed by a second home inspection one year from the initial walk-through, intended to highlight any defects or major issues cause by natural wear and tear.
Following that walk-through, there is one last home inspection which takes place at the seven-year mark, before the warranty of your new home expires.
Although the first home inspection is done via the developer/builder, it’s recommended you outsource an additional qualified home inspector to accompany you during your second and last inspections. These new build home warranties are in place to allow for multiple years of weathering and natural wear, offering you insight as to the integrity of your home’s construction.
This is to protect you from things like cracking foundations, walls, or faulty electrical work that can only become evident months after moving in.
Hire a Qualified Realtor®
When buying a new home directly from a development company, it isn’t strictly required to enlist the help of a Realtor®, however, we strongly recommend it. Sure, it might save you some commission fees right up-front, but it’s a qualified Realtor®’s job to protect your best interests throughout any real estate transaction, which includes doing their due diligence on every aspect of your purchase.
If you aren’t all too familiar with the process of buying a new home in Ontario, it’s especially important you seek the help of a qualified real estate professional that has guided multiple clients through these types of transactions before. Whether you’re buying a new home or a resale, you always want to ensure your best interests are protected at all times.
Use a Real Estate Lawyer
Additionally, a qualified Realtor® will have a large network of trustworthy professional connections for you to utilize over the course of your new home purchase, including a real estate lawyer. When it comes time to finalize the Agreement of Purchase and Sale, ensuring your own legal protection is verified by an expert is of the utmost importance.
Trust us, you do not want to be bound to a nightmare purchase agreement that legally entails you to accept terms and conditions that are not in your favour. Even when dealing with developers that come with the highest of reputations, things can get messy — and once you’ve signed your purchase agreement and finalized the sale, there’s not a lot you can do to fight back.
Are you interested in taking the next steps towards buying a new home in Ontario? Start by getting the right help from a qualified team of real estate professionals that have guided countless clients through the process before. Contact us here to begin your new home purchase.
