Laura Peery is a Global Real Estate Advisor with expertise in the Richmond and Chesapeake Bay areas of Virginia. Before working as a realtor, Laura had a career as a behavioural health counselor, spending her time focused on helping others, including active duty military veterans, get their lives back on track.

Laura understands what’s involved in buying and selling a home and uses her previous training along with her real estate expertise to help put her clients at ease during a traditionally stressful time.  Her knowledge of the market and relaxed approach helps keep her clients happy. 

What inspired you to pursue a career in real estate?

I was a therapist for a number of years and wanted a change.  Since real estate is a career where people are making huge and stressful decisions, I figured my previous career would make me a good fit for the field.  I am a good mediator and therapist and this allows me to help people make the important, albeit stressful, decisions involved in buying and selling real estate. 

Tell me about how you got started in the industry?

I have been in the business for six years.  After I took the real estate exam, I joined a brokerage that was family owned, and the same company where I had bought two of my homes.  Their core values aligned with my own,  they had just joined the Sotheby’s brand, so it was a no-brainer for me to become a part of this team. 

What aspects of the real estate business excite you most? Why?

My speciality is representing sellers.  I am hands on from the beginning through to the end of the process, and enjoy working towards the first showing (which is online) and making sure the home looks fantastic both online and in person. I enjoy making sure that things look great aesthetically and consider that part of my brand.  Over the past year or two I’ve had the opportunity to work with more buyers and have been able to help them strategize through competitive situations where they are up against multiple offers, to help them get the best possible deal. I love finding negotiation points along the way to help put them in their dream home.

What is the most rewarding/challenging thing about working in real estate?

Easily the most rewarding thing is the relationships that I have with my clients.  The most challenging aspects of the job have helped me sharpen my game to help create an efficient process that everyone is happy with. Since buying and selling your home can be very stressful, this is where my therapist training comes in handy, giving me an intimate knowledge of what’s going on behind those stresses.

What’s the best way for someone to explore a potential neighbourhood?

Walk the neighbourhood, drive around, go on the weekend when people are out and about, see what it’s about, and get a feel for the vibe to see if it’s right for you. You can explore an area online but you won’t get the same sense unless you go out and experience it for yourself.  

Where do you live and what do you love most about living there?

I live in Windsor Farms, a neighbourhood in Richmond Virginia that I’ve called home for 27 years.  It’s the oldest formalized neighbourhood in Richmond with a lot of interesting history, and architecture.   The neighbourhood has older homes and was built in the 1930s, which I love. I also enjoy the convenience of being close to all the local highways and only 20 minutes away from the airport. 

Why did you decide to be a part of the Exceptional Agent Network of Sotheby’s Agents (EAN)?

The EAN is a great way to get to know other colleagues within the brand.  The quality and calibre of their business is similar to mine and what I aspire to be. It’s a group of like-minded professionals who are ready and willing to share best practices. I used a member of the EAN as a resource because it’s filled with  people who understand the business but aren’t your direct competitors.  

Recently I used the EAN to speak to people who had experience in real estate relating to a vineyard property. I connected with people within the brand and was able to get valuable feedback including what questions I should be asking. Thanks to the information I gained from my EAN network I am bringing the vineyard listing to market this spring. I couldn’t have gotten that without the network from the EAN. I know how to market and leverage my brand, but being able to call in on my EAN friends, I’m able to fill spaces where I might not have as much knowledge. The people in the EAN network are giving and able to share without hesitation because we are all in different markets.

Dev Parikh: Berkeley, California | Richard Silver: Toronto, Ontario | David Gemme: Lake Tahoe, California | Shawn Woof: Muskoka, Ontario | Andy Stephenson: Victoria, British Columbia | Laura Peery: Richmond, Virginia | Mckinzie Casey: Denver, Colorado | Paul Ybarbo: San Francisco, California

How did you become an expert on Virginia’s luxury home market?

I have a specialty in Richmond and the nearby counties, but my other area of expertise is in the Northern Neck of Virginia where many people have secondary homes near Chesapeake Bay on the waterfront. There’s so much waterfront in Virginia, and it’s about an hour or two away from many people’s primary homes, making it the perfect location for weekend homes, summer and vacation homes, or a place to retire. 

I have a home in the area and discovered there was no other luxury brand with a presence there, and homes are being listed primarily by local realtors. Since the housing issues of 2007-2008, sellers are looking for ways to have their properties attract the most buyers, and this is where my expertise comes into play. Until recently it has been a buyer’s market in the area, although this has begun to shift, as people are selling their secondary homes, so they rely on my help to have their home show best. Buyers tend to care more about getting a beautiful view more than what county their secondary home is in. Today I have a heavy presence in the area and people have even nicknamed me “the river queen” because of my knowledge of the waterfront area. I get a lot of referrals within the area, and I’m contacted by people remembering the work I have done with other nearby homes.  

One of Laura’s Listings – 220 Middle Quarter Lane Henrico, Virginia

What professional accomplishments are you most proud of?

I am proud that I am one of the top sales leaders in my brokerage after only being in the business for such a short period of time. I love travelling within the brand and meeting people around the world.  

Last year I had a client, a couple, who wanted to sell their house in Richmond, buy a smaller place in Richmond, by a secondary property on the river, and rent a place for a month during the process.  It was a domino effect of transitions but being able to navigate a seamless group of transactions like this was a real accomplishment. They rented a house that I owned; we completed four different transactions within a month of each other. They were thrilled with the entire process and end result, and I was happy to manage that.

What would you say are some of the most important things a person should consider when buying a home?

Location is the primary factor because you can always make changes within a home, but that land where that dirt is can’t be changed. You need to live in a location that will meet your needs in terms of: where your children go to school, where you work, proximity to the airport, or whether it’s wanting green space – making sure that your home meets your lifestyle needs. Secondly, they should make sure they have a realtor they trust representing them to help look out for their interests and to help get the best deal possible on their purchase. People use doctors, carpenters, and lawyers for their expertise, and it’s no different in the world of real estate.

If you need good advice in other locales please contact us. Here is a map of our Exceptional Agent Network of Sotheby’s Agents and we will make sure you are referred to the best!

EAN map

In a housing market like Toronto, where prices are so high and continuing to rise, most people are simply priced out of the market for the average house. This is especially true for first-time buyers. But what about the idea of buying a starter home to get into the real estate market earlier and take advantage of the rising market?

As the name implies, a starter home is a below-average property that you plan to live in for the next 3-6 years or so, and then sell for hopefully a nice profit so you can move into a more permanent home. A 2015 study by Genworth Canada showed that 50% of first-time buyers see their first home as a starter home, from which they plan to move out of within 10 years.

Celia Alves

Celia Alves, a Sales Representative at Sotheby’s International Realty, who has experience working with young buyers, provides more context about starter homes in Toronto specifically:

Starter homes in Toronto as you can imagine are very much in demand. They are usually in need of a cosmetic face lift and are priced competitively. We have seen a great number of first-time clients move just outside of the Toronto core to areas such as Scarborough, Brampton, Orangeville, Richmond Hill, Markham, and Oshawa. A large segment of the first-time home buyer’s market has also been condominiums.

This article will go into further detail about types of starter homes, what you need to consider before buying, and whether or not they makes sense for your situation.

Types of Starter Homes

In general, there are four types of starter homes:

1. Attached homes
2. Condos
3. Fixer-Uppers
4. Homes in less desirable areas

Attached homes are homes with at least one wall shared with another home, hence the lower price. That includes townhouses and semi-detached homes.

Condos are getting more and more popular in Toronto. Jenelle Cameron, a Toronto-based realtor, says that the majority of her clients are buying studio condos for their first home. According a torontostoreys article, supply for condos was 6,500 on average between 2012-2015, but in 2019 supply was only 3,000. One reason for this decline is because many owners who have relocated to a larger house chose to keep their condo and rent it out, thereby limiting supply and driving up prices.

Fixer-uppers require you to do some repairs and possibly renovations. These costs can be very expensive, time consuming, and emotionally draining, so think carefully before buying a fixer-upper, especially for your first home purchase!

Homes in less desirable areas refer to areas far away from the city center, where most people work, or areas that are more run-down.

What to Consider Before Buying a Starter Home

There are four major considerations when it comes to buying a starter home:

1. The housing market in that area
2. Your time horizon
3. Your needs
4. Your alternatives

If you hope to profit off of a starter home, it’s very important that the housing market is rising. Historically, Toronto’s prices have soared, and most believe that prices will continue to rise, especially over the long-term. That being said, no one can predict the future with 100% certainty, so there’s always the risk that prices may stagnate or decline, and that risk increases the shorter your time horizon is. That brings us to the next point: time horizon.

Experts recommend to buy a starter home with the mindset of keeping it for at least 5 years. The main reason is that it generally takes 5-7 years just to break-even with the transactions costs of buying and selling, as well as all the expenses of home ownership. Additionally, the way mortgage payments work is that in the beginning, you’re mainly paying off interest rather than the actual debt, so you’re building very little equity. However, in a market like Toronto’s, many people have sold their starter home after just 3 years and reaped significant profits. It depends on how fast prices are rising, which again, is hard to predict.

Another consideration is your needs. As mentioned previously, starter homes will likely be much smaller, far from the city centre, or be in more run-down neighbourhoods. If you are planning to have a family soon and you want to buy a starter home, you might end up having to move within a few years and losing money on that starter home. Or if you hate commuting, if might be better to just continuing renting near your work. And that brings us to the last point: alternatives.

Aside from using your savings to take out a mortgage and to a starter home, how else could you use that money? One option is to continue renting and putting any extra savings into other investments. Low risk and low return investments include GICs, bonds, and mutual funds. Higher risk investments with potentially higher returns include stocks and index funds. Another option purchasing a cottage and renting it out. This torontolife article highlights many cases of people who wanted to buy a home in Toronto but couldn’t afford it, so they ended up buying a cottage and renting it out as a way to save up money.

Does it Make Sense for Me to Buy a Starter Home?

Given all the above considerations, it might make sense for you to purchase a starter home if

1. You’re in a soaring housing market.
2. Your time horizon is at least 5 years (although you could sell sooner if a good opportunity arises).
3. You actually find a starter home that suits your needs for the next 5 or so years.
4. You don’t like your other alternatives.

You might be thinking, “Wow, those are some high requirements!” Yes, and that’s because purchasing your first home and getting a mortgage is a very big deal.

Alves gives three major pieces of advice:

We advise our first-time clients to look at properties in up-and-coming neighbourhoods that may need some TLC (tender loving care) or properties that other buyers may have over looked. Another tip is to look for a property that may allow the opportunity for a secondary suite to generate rental income and help offset the mortgage. Thirdly, look for a house with potential to add on or add up so that it can be a longer-term home. This may be important because we have noticed that clients who have outgrown their first home and are looking to move to a bigger home continue to face similar competition and affordability hurdles.

She also gives a couple stories from her clients:

A client who purchased a pre-construction condo lived in it for a few years while she was single and was able to build her real estate portfolio that way.  Once she got married, she was able to take the equity from her condo and invest it into a larger townhouse closer to where she ideally wanted to be.  Another client bought their first starter home and decided to use it as an investment property.  They bought a ‘fixer upper’ where they were able to renovate it so they could live in the lower level while renting out the top floor for more money to essentially live for free.

Buying a starter home is a great way to get into the rising Toronto real estate market as early as possible. But it’s also extremely important that you don’t rush. If you’re not sure whether buying that particular starter home is a good idea for you, then chances are, it’s better you don’t do it. In the mean time, you can continue to rent and put away savings in a low-risk investment while continuing to search for a good starter home.

Where does luxury meet value in downtown Toronto real estate? You may not expect it to be the building formerly known as Trump Hotel and Residences, but indeed, it is the St. Regis Toronto. The tumultuous and even controversial history of the building has, if anything, contributed to the great price for such luxurious property.

Currently, the condominium units are going for about $1,200 per square foot, whereas comparable luxury units are up to $1,700 a square foot. Jim Burtnick, Senior Vice President of Sales at Sotheby’s International Realty, states that the St. Regis Toronto is now:

the best value in 5 star hotel and condo residences.

The Rough History

In case you aren’t familiar with its history, construction started as the economy went into the 2008 recession. It went through many struggles until finally opening in 2012 as the Trump International Hotel and Tower Toronto. It was and still is the third tallest skyscraper in Canada and the tallest mixed-use building in Canada. The hotel portion of the building occupies floors 2 to 31, and the condominium residence units are on floors 32 to 57.

—-> Read more: St. Regis Residences: When Life Gives You Lemons, Make Lemonade

After opening, sales were sluggish. By mid-2017, 74 out of the 118 residences were still unsold. The building was also getting negative publicity for its affiliation with Trump, who had just restricted people from primarily Muslim countries from entering the US.

In June 2017, JCF Capital bought the property from The Trump Organization, believing that the property had bright prospects under the right management. JCF partnered with Marriot to bring to Canada its first St. Regis, a brand synonymous with wealth and luxury. The hotel portion of the building was bought by InnVest Hotels LP, who invested $20 million in upgrades. For a little over a year, the building was being redesigned and upgraded, and it finally opened as St. Regis Hotels and Resorts on November 28, 2018.

An Overlooked Gem

During the opening, fashion icon Jason Wu, who is best known for designing the dresses of Michelle Obama, announced that it’s “a new era of glamour arriving in the city with the opening of the St. Regis Toronto.” Is this an overstatement? You can decide for yourself.

Let’s start with the condominium units. They are brand new with a modern design, featuring Italian hardwood flooring, solid wood doors, steam showers, and pot lights. The units range from 1,500 square ft. to a massive 12,000 square ft, and all units feel extremely spacious with 10.5 foot coffered ceilings.

311 Bay Street #3405 available for sale

311 Bay Street #3405 available for sale

Units also feature large windows with breathtaking views of the city on both sides, and are provided with top-end appliances.

311 Bay Street #3405 available for sale

311 Bay Street #3405 available for sale

St. Regis residences get access to international standard 5-star amenities, including a pool, gym, spa, bar, and the award-winning Louix Louis restaurant.

Photo by Marriott.com

Photo by Marriott.com

They also purchase the benefits of hotel clients, including laundry, housekeeping, and room service. Some of the higher-end suites on the top floors even get private elevators, free valet parking, and a $20,000 allowance to spend at any St. Regis location around the globe.

Louix Louis restaurant

Next is the building’s the design. During the rebranding, the building’s interior was redesigned by DesignAgency to be more much airy, open, and inviting than the previously dark and heavy ambience. The 31st floor, the top of the hotel portion of the building features a stunning, 18.5 ft ceiling-wide mural. Given its proximity to other major attractions like the CN Tower and the Scotiabank Arena, this building is worthy of tourist visits too!

Speaking of location, the St. Regis Toronto is located at the heart of downtown, on the border between the financial district and the entertainment district. This means residents get all the luxury and convenience of the St. Regis brand while also living at the heart of this vibrant city. There are also many top-quality restaurants all around the area, along with quick access to the PATH for shopping and entertainment. Everything residents need is within a walking distance!

Photo by Marriott.com

St. Regis Lobby by Marriot.com

Finally, the St. Regis management nurtures a community environment for residents, who are mostly young professionals and young families working in the area; many even have children. The management team will organize resident-only events like wine tastings in its residential lobby, providing great opportunities for the residents to connect with their neighbors.

The Future of St. Regis Toronto

Currently, there are a few remaining choice suites available starting in the mid-$1 million range and up to the low $3 million range. Compared to other 5-star hotel/residences in the city (e.g., Ritz-Carlton, Shangri-La, Four Seasons), St. Regis suites are by far the most well finished and the best value.

311 Bay Street #3405 available for sale

311 Bay Street #3405 available for sale

Yet given its past, the building is currently off the radar of many agents and prospective buyers. But with the recent rebranding and remodelling, it won’t be long before the realtors and the general public awaken to this luxurious opportunity in the heart of the city.

Jim Burtnick comments:

The early birds will enjoy the windfall that current exists until the rest of the population wakes up to this hidden gem.

So, contrary to popular belief, there are still a few “deals” to be had in Toronto luxury real estate. You just need to know where to look (or have a realtor who knows)!

If you’re looking for a unit at St. Regis residences, contact us for more info or have a look at Unit #3405 which is available for sale!

The holidays are just around the corner and Toronto is ready. Every year, you can enjoy amazing Christmas decorations around the city and we’re not talking about the lights at the Nathan Phillips Square. Torontonians love their Christmas decorations and some of the decorations people put up on and around their homes are definitely eye-catching. See for yourself!

Moving is a big deal – an average move can take anywhere from eight to 22 weeks from the start of preparation to unpacking your last box. If you’re selling your home and want to get the best possible price, experts agree that it’s best to declutter, donate, pack, purge, and store items you won’t need.

A study by the National Association of Realtors revealed that,

Eighty-three percent of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.

In addition to this the same study showed, “Twenty-eight percent of sellers’ agents said they staged all sellers’ homes prior to listing them for sale” and the most common rooms to be staged included the living room, kitchen, master bedroom, and dining room.

—> Read more: Redecorating Your Home Before the Sale: 2 Pine Ridge Drive Case Study

Specialists like your realtor, a professional stager, and a storage company can help you save time and money by helping make the staging portion of your journey a seamless stepping-stone in the moving process.

Staging not only involves positioning your furniture just so, it can also involve removing items from the home, renting new items for display, and finding somewhere to store the items while your home is on the market.  That’s where experts like Leslie Kellen, Director of Operations Partner, at XYZ Storage come in, having offered Torontonians storage solutions that work for over 20 years, including their highly popular mobile storage options. Here’s how it works.

Figuring Out What You’ll Need

Storage doesn’t just start when you’re showing your home, it can also be a great way to keep items safely out of the way during a renovation or keeping out of season, or seldom used items like tools, hockey equipment, or holiday decorations from cluttering up your staged home. Leslie says how much you’ll need to store, completely depends on the individual and what is in the home:

For example, empty nesters may have some art and sofas and not a lot more,  while young families with kids tend to have a lot more items that need to be stowed away.

Leslie estimates that those with family members and all their things at home should expect to store around 20 to 40 percent of what’s in their home, whereas empty nesters may only need storage for five to 10 percent of their belongings.

Those downsizing their homes may need longer term storage and tend to use their storage space like another closet or garage, keeping their unit forever.

Leslie also adds that freelance professionals or those with home or limited office storage space will often rent a storage unit to house items like tools, trade show display items, professional records, signage, and more.

How Long Am I Going To Need Storage?

How long you’ll need storage depends on how long the staging process takes, how long the home is on the market, along with when and where you’re going. Leslie suggests for a robust real estate market, like in Toronto, the storage needs could be as short as 30-60 days or significantly longer.  He adds,

This is a good reason to use mobile storage.  That way everything packed up during the storage process can simply be delivered and unloaded at your new home.

A major piece of advice Leslie has to offer is that things, particularly in terms of renovations and moving, often take longer than anticipated so budget for needing extra time.

Knowing that things don’t always happen on schedule is why XYZ Storage provides storage that is prorated to the day. People don’t need it in a perfect 30-day cycle. A lot of storage companies will charge for 4 weeks and not a month, so you’re paying for 28 days on 4-week cycles and that pricing isn’t a true month. This is why we have straight forward pricing, but if you move out before, we offer a refund.  We are the only company in Canada that offers this.

Why Mobile Storage Makes Sense In Toronto

Mobile storage is useful for both homeowners and real estate professionals. Often stagers have set furniture that they store in mobile units to be delivered to homes as needed. Time is saved because you can have more than one container and divide your belongings accordingly, and the choice of having items delivered through mobile storage allows for people to save cost on, or avoid having to book movers altogether.

Mobile storage allows you to have a container delivered to you when you need it. The container can be dropped off at your home for a few hours or days. Live in a condo? Not a problem, your mobile delivery can be booked for the short period of time you have access to the loading dock and then is taken away at the end of the timeslot.

Mobile Storage offered by XYZ Storage

Picking The Right Storage Location

People who are moving may wonder if they’re better off booking a storage unit near their current home or their new one.  Thankfully, Leslie has some advice,

If you’re using storage because you’re moving and have things staged, but you might still need to access seasonal items, you’ll want it to be close to your current home, so you won’t have to drive very far. On the other hand, if you’re going to be looking at using it as long-term storage and won’t be coming and going prior to the move it makes sense to put it near their new home. Those who use mobile storage then can have it transitioned to a standard storage system near their new home.

What To Pay

Units at XYZ Storage start as low as 25 dollars a month with these small units being perfect for storing luggage or offseason sporting equipment.  Full-sized garage spaces are over 300 square feet and can fit the contents of an entire home. Mobile storage units are 5 feet (width), 8 feet (long) X7 feet (height) and start at around $150 per month for one container, with the more containers you rent, the less expensive the container, with drop off fees at an additional price. Keep an eye out and call for specials. Leslie notes,

We have seasonal specials, specials for students, dorms, and those in student housing because we know we have a huge influx of students needing storage for the summer, as well as for those taking extended periods of time travelling.

Getting Started With Storage

Storage centres like XYZ Storage offer both traditional and innovative options at all six of its facilities.  This includes packing and moving supplies, truck rentals, mobile self storage, as well as advice on solutions that will work best for you and your family.

Leslie understands that the needs for storage can be emotional saying,

When someone needs storage it’s usually either for something really exciting like marriage, school, a new home or job opportunity. On the other end of the spectrum it can be for something difficult like having to move a family member into assisted living. So, we’re not just offering storage we’re also providing advice.

With detached homes being so expensive in Toronto, many are looking towards condos as a more affordable option. But even for condos, demand exceeds supply, including for pre-construction units. Many buyers are enticed by the prospect of a new condo and being the first to live there. But imagine if you purchased a pre-construction condo unit, and one day, you suddenly find out that the project is cancelled! What do you do?

—> Read more: Pre-construction vs Resale: Which Condo Should You Buy?

You might be wondering, “What are the chances that my pre-construction project will get cancelled? Very unlikely right?”

According to a Zoocasa article, 23 condo projects were cancelled from 2012 to 2017. Another article by Toronto Storeys noted that 12 buildings (4,202 units) were cancelled in 2018. That’s much higher than 2017, at 1,678 units, and 2016, at just 379 units.

How’s 2019 looking so far? Well, according to an article from LowestRates, three pre-construction condo projects have been cancelled as of April 2019.

So the short answer is that it’s highly unlikely for your pre-construction condo to get cancelled, but it’s still possible, and the risk is increasing.

This article will go over why developers might cancel a condo project, what you can do, and how to mitigate your risk.

Why Might a Pre-Construction Condo Project be Cancelled?

A pre-construction condo project might get unexpectedly cancelled for a variety of reasons. The three most commonly stated reasons are

1. Failing to sell enough units
2. Failing to secure financing for the project
3. Delays in getting the required approvals for building and planning

These reasons are typically stated in that long purchase agreement that the purchaser didn’t want to read but signed anyway. Always read before you sign.

In Toronto specifically, failing to sell enough units usually is not the reason for cancellation given the high demand. If a developer were to cancel, it’s probably due to failure to secure financing or approvals for building and planning. In a Toronto Storeys article, Pauline Lierman, Director of Market Research at Urbanation, states that

All [GTA condo] projects that cancelled in the last year [2018] had more than 80% of the units sold. The biggest factors are cost and financing.

What can you do?

You are entitled to get your money back. The first thing you can do is ask for your money back and refer to the relevant laws.

According to Ontario’s Condominium Act (section 82 and section 19 of O. Reg. 48/01), if a vendor (developer) cancels a project, they are obligated to refund of monies paid by the customer, plus interest. The Condominium Act sets an interest rate of 2 percentage points less than the Bank of Canada rate. In practice, the Bank of Canada interest rate has been less than 2% since 2008, so buyers actually get 0% interest.

You should also know about Tarion, which is an organization created by the Ontario government for the purpose of providing home warranty protection. Every condo unit purchase also has a Tarion Addendum to the agreement. This Addendum states that if the vendor cancels, then they have to refund all money paid by the purchaser, including any money paid for upgrades and extras, within 10 days of the cancellation.

While you are entitled to get your money back, vendors have resisted in past cases. The Condominium Act also requires the vendor to put all money (deposits, upgrades, and extras) received by purchasers into a trust fund. If, for some reason, the vendor is unwilling to return the deposit, then the purchaser can contact the trustee (usually a lawyer) and make a claim to get the deposit back.

If, somehow, the money is no longer in a trust, then purchasers can turn to Tarion Warranty Corporation, and they will return your deposit up to $20,000.

If you’ve lost money over that $20,000, then unfortunately, it will be very difficult to get it back because the vendor most likely owes money to the bank and the municipality, and they have priority to the developer’s assets over purchasers. One option in this situation is to join a class-action lawsuit with other buyers against the vendor.

For further help, customers can call Tarion’s customer service team toll-free at 1-877-9-TARION (1-877-982-7466), or by email to .

—> Read more: Can You Sell a Pre-Construction Condo? Yes, but…

How can you mitigate your risk?

Researching your developer before signing that purchase agreement is key to mitigating the risk of losing your money.  Frank Farhangi, a Broker at Sotheby’s International Realty Canada, gives the following advice:

An experienced developer with a great brand and reputation has more to lose by cancelling a project than a new developer. Do your homework on Google and check for customer reviews or any news publications mentioning the developer.

You can also look up the developer in Tarion’s directory of builders. Once you find their profile, you can see if they’ve had any cancellations in the past. As Farhangi said, large builders that have been around for a long time have a lower risk of cancellation.

In addition to searching Tarion’s directory, you can also search if your developer has any liens. A lien is when a previous creditor claims interest in one of the developer’s assets, hoping to get repaid for a previous debt. A developer with liens is riskier than one without liens. You can search if a developer has any liens on Service Ontario’s website. It costs $8 to search a year within the past 25 years. It may be worthwhile to search the past 3 years, which would cost $24. 

Farhangi also recommends the buyer to ask targeted questions to the agent: 

Ask your agent to provide you with a list of the other projects the developer completed recently. Check to see if there are any pending lawsuits or class actions by the purchasers against the developer. Question if the zoning of the project as it is being presented has already been approved by the municipality. If the project has been on the market for a long time and has a lot of inventory without sales momentum, that might be a project to steer clear of.

When you are talking with a sales representative, keep in mind that they are biased and it’s their job to treat you well and try to sell you the condo unit. But should any problems occur, purchasers are down on the list of people trying to get their money back from a bankruptcy filing. It’s worth saying again: Make sure you research their track record before singing the purchase agreement!