New Construction: When is the Listing Price Not the Listing Price?
I’ve recently spent a lot of time working on homes that are brand new construction both from the Buyers and Sellers end. This poses two unique propositions that I’d like to discuss.
As some of you may have heard, new construction has been struggling in recent months due a lot to the unpredictability of the HST imposed July 1, 2010. In marketing of brand new Nanaimo real estate this poses an issue. There really is no standard for listing new homes for sale and the requisite pricing of these homes. Some homes are being marketed including this tax. But it’s important to know that there are rebates that operate on sliding scales and are very difficult to calculate. These prices can
This makes it very difficult for a buyer looking for a home on REALTOR.ca or some other avenue to accurately compare prices of certain homes in new areas. Is the home brand new? Is HST applicable? How big is my rebate? Who is going to pay the rebate amount? And we’re not talking about peanuts here. On a $300,000 home the gross HST is 12% which is $36,000. Your regular home buyer is going to get over half of that rebated back. So some buyers think the home is $300,000 and some think it’s $336,000 when, in fact, both are probably incorrect. still not include some HST if a buyer doesn’t qualify for rebates for various reasons.
The other major factors affecting pricing on new construction in Nanaimo are the extras or inclusions. These can include:
- Landscaping
- Window Coverings
- Appliances
- Fencing
- Finishing the Basement
- Bathroom Mirrors
- Closet Organizers
- Garage Doors
mattscheibel
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