JULY 21, 2016

Five Costly Mistakes New Condo Buyers Make (and Tips to Avoid Them)

Shopping for a new condo in Toronto? Choosing the wrong builder or development or not fully understanding what you’re buying can cost you time and money (and your sanity). 

So, regardless of where you’re at in your condo shopping journey, it’s never too late to take a step back and learn from the mistakes of condo buyers gone before.

Read on for five of the common mistakes people make when buying new condos and get tips on how to avoid making these mistakes yourself.

#1. Failing to research the builder’s history and reputation.

You’ve probably seen the media headlines and heard horror stories about condo projects gone bust and buyers losing deposits.  While these scenarios don’t happen often, it still pays to do your research on a developer’s history and reputation before buying a new condo.

Tip: Get a snapshot of the builder’s status and performance by researching them online using Tarion’s Ontario Builder Directory.  Tarion will show you how many projects the builder you’re considering has built, how many warranty claims have been out and the status of their license to build in Ontario.  These are all good indicators of a builder’s credibility and stability.

#2: Overlook the details of the building amenities.

A building’s amenities are an extension of your living space and should make you feel comfortable and align with your needs and priorities, so don’t overlook the details. If you don’t swim, perhaps a building with an Olympic sized pool isn’t the right fit. But, if you love to run 5k on the treadmill to burn off energy after a long day at work, you’ll want to know what the gym is like. Is it going to be in the corner of the basement with no natural light, or will you be jogging with a beautiful view of Toronto’s city skyline? These things matter.

Tip: When you’re at a condo sales centre or researching online, make sure to look closely at amenity drawings because making sure the amenities are aligned with your needs and preferences is key to maximizing the value of your condo investment.

#3: Get blinded by fancy finishes.

If you’re looking at a condo development that claims premium or upgraded finishes such as granite countertops, high-end appliances, and so on, make sure you get a clear understanding of what that actually means. There are no “real” standards when it comes to finishes; they vary from building to building and developer to developer. Being diligent when evaluating the quality of the materials and finishes to understand what you’re buying will ensure you’re not overpaying for finishes that are marketed as premium but fall short on quality.

 Tip: Take the opportunity to make a physical visit to “touch and feel” at the condo sales centre and ask the sales representatives whether the finishes you’re seeing in the presentation suite are standard or upgraded.

#4: Fall for “green” claims that aren’t valid

There are so many benefits of buying and living in a green building, including:

• safeguarding the well-being of future generations by choosing environmentally sustainable building design and performance in construction

• cost savings generated by high performance equipment, lighting, windows and insulation to reduce energy and water consumption

• better air quality by using zero or low emitting materials and ventilation systems designed to deliver fresh air either directly to suites on a continuous basis

Before investing in a building because of its green technology and design, its important to make sure the builder’s eco-friendly claims are legitimate and live up to high standards of environmental responsibility.

Tip: Ask the builder if the building will meet Leadership in Energy and Environmental Design (LEED) standards. LEED certification provides independent, third-party verification that a building, home or community was designed and built using strategies aimed at achieving high performance in key areas of human and environmental health.

#5: Focusing only on the move-in, not the long-term experience

Customer care isn’t something condo shoppers typically think about as they evaluate their options, but it is important as it ensures purchase satisfaction for the long haul. Even if you’re buying from one of the top, highest-rated condo builders in Toronto, understanding whether or not the building you’re buying has a solid management company that meets the highest standards of customer care, accountability and reliability in place will go a long way to enhancing the harmony of your lifestyle far beyond your move-in date. Plus, it’s nice to know that if you have a question about the building or your suite, you have a trusted, caring team available to help you out at no extra charge or hassle.

Tip: Ask about the service promise that the builder adheres to and ask questions like “If something in my suite (my washing machine or air conditioning unit, for example) needs maintenance in the future, how long will it take for my maintenance request to be acknowledged?” The answer you want to hear is one business day. Anything longer than that may be a red flag that the service level may not be up to par.