8 Essential Questions About Pre-Sale Homes in Surrey

Thinking about buying a pre-sale home in Surrey? You’re not alone. With the region growing rapidly and new developments springing up in key neighborhoods, many homebuyers and investors are looking at presales in Surrey as an appealing option. But before you sign on the dotted line, it’s important to know what you’re getting into. Here are eight essential questions to ask if you’re considering presale condos in Surrey or any kind of pre-sale property.

1. What Is a Pre-Sale Home?

A pre-sale home (also called a “pre-construction” or “off-plan” property) is a unit you agree to purchase before it’s built. In Surrey, developers often offer these homes during the planning or early construction phases. Buyers typically pay a deposit and agree to complete the purchase when the building is finished—often a few years down the road.

Pre-sales are popular in hot markets like Surrey because they let buyers lock in a price early, potentially benefiting from market appreciation.

2. Why Should I Consider Buying a Pre-Sale in Surrey?

There are several reasons to consider pre sale Surrey properties:

• Affordability: Pre-sale prices are often lower than market rates for completed homes.

• Customization: You may be able to choose your floor plan, finishes, and other details.

• Time to Save: Since completion is usually 1-3 years away, you have more time to save for your mortgage or sell your current home.

Plus, Surrey is a rapidly developing area with ongoing infrastructure improvements, making it a prime spot for future growth.

3. What Are the Risks of Buying a Pre-Sale?

While presales in Surrey can offer great value, they aren’t risk-free. Delays in construction, changes in the market, and financial issues with developers can all pose potential problems. There’s also the risk that the finished product might not meet your expectations. That’s why it’s crucial to work with a trusted real estate agent and buy from reputable developers with a strong track record.

4. How Much Is the Deposit for a Pre-Sale Condo?

Typically, deposits for presale condos in Surrey range from 10% to 20% of the purchase price, paid in stages. For example, you might pay 5% at signing, 5% in 6 months, and another 5% a year later. This staged payment structure gives you time to arrange financing without committing the full amount upfront.

5. What Should I Know About the Developer?

The reputation of the developer is one of the most important factors when buying pre-sale. Look into their past projects, how well they were received, and whether they were completed on time. A reliable developer will also be transparent with buyers and keep you updated throughout the construction process.

At SkyLiving, for example, you can explore a variety of presale Surrey listings from reputable developers with solid track records of delivering on promises.

6. Can I Sell My Pre-Sale Contract Before Completion?

Yes, in many cases you can assign (or sell) your pre-sale contract before the home is completed. This can be beneficial if your circumstances change, or if the market has gone up and you want to lock in a profit. However, not all developers allow assignments, and some may charge a fee. Always check the terms of your agreement before committing.

7. Will I Need a Mortgage Right Away?

One of the key advantages of pre sale homes in Surrey is that you usually don’t need a mortgage until the property completes—sometimes two to three years after purchase. This gives buyers time to improve their financial situation, save for a larger down payment, or lock in a better mortgage rate closer to completion.

It’s still wise to speak with a mortgage broker early in the process to make sure you’ll qualify when the time comes.

8. What Additional Costs Should I Be Aware Of?

Beyond the deposit, consider the following:

• Closing costs: Legal fees, property transfer tax (unless you qualify for an exemption), and other administrative charges.

• Strata fees: Monthly fees that cover building maintenance and amenities.

• GST: Pre-sale homes are subject to the federal 5% GST. Some buyers may qualify for rebates depending on the price of the home and their intended use.

A real estate agent familiar with presales in Surrey can help you estimate total costs and avoid surprises at closing.

Final Thoughts

Buying a pre sale home in Surrey can be an exciting and rewarding experience, especially if you’re looking for flexibility, affordability, and long-term value. Whether you’re a first-time buyer, an investor, or someone looking to customize their future home, the key is to ask the right questions, work with experienced professionals, and do your due diligence.

Want to explore current presale condos in Surrey or chat with a local expert? Visit SkyLiving to browse listings and learn more about the opportunities available in this fast-growing market.