Pre-Sale Homes: Here’s What You Need to Know

If you’ve been browsing the real estate market in Vancouver lately, chances are you’ve come across the term pre-sale more than once. Pre-sale homes (also known as pre-construction) are properties sold by a developer before they’re built or completed—essentially, you're buying a future home based on floorplans, renderings, and showrooms.Sounds exciting, right? It definitely can be. But like any real estate decision, it comes with its pros and cons. Let’s break it down.

The Pros of Buying a Pre-Sale Home

1. Brand-New Construction with Modern Features 

Pre-sale homes are built with the latest design trends and energy-efficient systems. That means clean finishes, smart layouts, and fewer immediate maintenance worries.

In B.C., all new homes come with a mandatory 2-5-10 warranty:

• 2 years on labour and materials
• 5 years on the building envelope
• 10 years on structural defects
  It’s peace of mind that’s hard to beat.

3. Lock in Today’s Pricing
You’re buying at today’s market value for a home that’ll complete in 1–3 years. If the market rises by the time it’s finished, you’ve gained equity before even moving in.

Because completion is often years away, buyers have more time to budget, save, or plan out their finances compared to buying a move-in-ready home.

5. Customization Options
Depending on the developer and stage of construction, you might be able to choose your colour scheme, flooring, cabinetry, or appliance upgrades—making it feel more like “yours.”

6. Staggered Deposit Structure
Instead of coming up with your full down payment immediately, deposits are usually spread out over months. Common structures are 5% on contract, then additional increments over time.

The Cons of Buying a Pre-Sale Home

1. You Can’t Physically Walk Through It
What you see is a showroom or a virtual tour, not your actual unit. While floorplans and mockups help, there’s still some imagination involved—and that’s not for everyone.

2. Construction Delays
Delays are common in the pre-sale world. Weather, permitting issues, or supply chain problems can push your move-in date months (or even years) beyond what was originally promised.

3. Mortgage Rates Could Go Up
You don’t lock in your mortgage until closer to completion. If rates go up, your monthly payments might be higher than you originally budgeted for.

4. 5% GST Is Added on Top
Unlike resale homes, pre-sale homes are subject to 5% GST on the purchase price—and that’s not usually included in the list price. It’s an important cost to factor in.

5. Developer Risks
There’s always a level of risk with a pre-sale. Projects can be delayed, changed, or even cancelled. That’s why working with a reputable developer is crucial.

6. Market Risk
If home prices drop between the time you buy and when it completes, your unit could be worth less than what you paid. That’s a risk some buyers are comfortable with—others, not so much.

Final Thoughts

Buying a pre-sale home in Vancouver can be a smart move—but it’s not for everyone. If you're looking for flexibility, a modern design, and time to plan financially, it can be an excellent opportunity. But if you’re risk-averse or need a place to move into soon, it may not be the best fit. 

As always, make sure you do your homework, read the fine print, and work with a realtor who’s experienced with pre-sale purchases. Not all projects are created equal, and having someone who can guide you through the process can make all the difference.

Have questions or want to explore upcoming pre-sale projects in Vancouver?

 I’m just a call or message away.

- Tazmeen Woodall