Vancouver Presale vs. Resale: Pros and Cons

Shopping for a condo or townhome in Greater Vancouver? You will quickly face a fork in the road: buy a presale – a home purchased from a developer before it is built – or buy resale, an existing home you can walk through today. Both paths can lead to a great purchase, but they suit different buyers. Here is how they compare.

The case for presale

Presales let you lock in today’s price for a home that completes in two to four years, with deposits typically spread out – often 15 to 20 percent in total, paid in installments. You get a brand-new home with modern finishes, a 2-5-10 home warranty and no bidding wars. For buyers who need time to save or to sell their current home, the long runway is a genuine advantage.

The risks of presale

You are buying from floor plans: layouts, views and finishes can differ from your imagination, and there is no home inspection. Completion dates slip. If the market dips before completion, your lender’s appraisal may come in below the contract price, leaving you to cover the gap. New homes also attract 5% GST, and BC’s assignment rules add tax complexity if you plan to sell the contract before completion. Developer reputation matters enormously – research their track record on past projects.

The case for resale

With resale, what you see is what you get: walk the unit, test the water pressure, meet the neighbours, and review years of strata minutes and depreciation reports before committing. Possession can happen in weeks, not years. Negotiation is possible, subject clauses for inspection, financing and document review protect you, and there is no GST on the purchase price of a used residential property.

The drawbacks of resale

Competition for the best resale units remains fierce in many segments, and older buildings can bring special levies, upcoming major repairs or histories worth scrutinizing in the strata records. You may also inherit dated finishes – budget for renovations if the kitchen still screams 1994.

Which should you choose?

Choose presale if you value new construction, can handle uncertainty and have time on your side – especially if you need the deposit runway to save while prices are locked in. Choose resale if you want certainty, an inspection and a faster move, or if you are buying with the minimum down payment and cannot risk an appraisal gap. Many buyers end up comparing both; an agent active in presale and resale can run the numbers side by side for your situation.