Presale dangers ahead: A declining market could expose buyers to significant risk

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 48 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 92%

France Nouvelles Nouvelles

France Dernières Nouvelles,France Actualités

If preapproved for a mortgage at a lower rate, some buyers will be dealing with the extra cost of a mortgage at a much higher rate

. And if the lender now values the unit at less than the purchase price, the borrower may no longer qualify for the mortgage amount. That would mean the buyer would have to find the money to make up the difference in value, or try to sell the unit, known as an assignment sale.

“Think of the thousands of presale agreements that are coming up for closing this year,” says Ron Usher, real estate lawyer and general counsel for the Society of Notaries Public of B.C. Mr. McFadyen says that most buyers do not do their due diligence on obtaining full mortgage approval in advance, safeguarding against the unexpected.

“If completions in 2023 will be at, or near, highs, and slower market conditions persist, I would anticipate lower-than-average completion totals in future years,” Mr. Greiner said. In the U.S., there’s less risk for the buyer but more risk for the developer, says Bob Rennie, who’s marketed many condos in Seattle.

This is not one of those years, Mr. Rennie says. He cites immigration levels and pent-up demand for housing that is less than $1.5-million, which is 80 per cent of sales on the Multiple Listings Service. He figures buyers will act as soon as there’s a small rate drop.

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 5. in FR
 

Merci pour votre commentaire. Votre commentaire sera publié après examen.

France Dernières Nouvelles, France Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Canadian luxury real estate entering 'buyer's market': Report - BNN BloombergCanadian luxury real estate may be shifting into buyer's market conditions this year, according to a new report from Sotheby's International Realty Canada, as prices readjust from pandemic-related upheaval.
La source: BNNBloomberg - 🏆 83. / 50 Lire la suite »

Posthaste: Luxury real estate enters buyer's market as prices come back down to realityCanada\u0027s luxury real estate market cooled significantly last year, setting 2023 up for a buyer\u0027s market as prices come down. Read more.
La source: calgaryherald - 🏆 64. / 52 Lire la suite »

Foreign buyer ban will likely put further squeeze on rental market, experts sayFederal rules aimed at making homes more affordable for Canadians may prevent temporary residents from buying residential property in urban areas Would these be the same 'experts' who have been saying for the last 15 years that astronomical house prices and sky high rent are actually, somehow, good? Nah Who are these loser experts? These experts have been wrong on everything…
La source: globeandmail - 🏆 5. / 92 Lire la suite »