A Story About Overpaying for Reginas New Construction Homes

Are you paying fair market value for a newly built home in Regina?

How would you know?


Let me tell you a story… 

I had a very sad experience a while ago that got me thinking about how important it is to use a Real Estate Agent even when buying Regina’s new construction homes. I’m not here to bash the new construction industry, but as a real estate agent with access to comparable data & sales it really irks me when people are paying 20-30% more for a new home than what the same home is selling for on the resale market. 

I met with a young couple who bought a townhome in Regina from one of our well-known builders. They paid $265k for this property in 2016, when Regina’s new construction home industry was well on its way down. I did a market analysis on the property for them in late 2019 and at that time, the most recent sale for a townhome like theirs was in the 180k range. So they were owing far more on the mortgage than what the properties similar to theirs were selling for. 

Statistically, we know that townhomes in Regina have dropped approximately 16% in the last 3 years. 

Let’s do the math, if they paid $265K in 2016 and the unit they bought is now worth $180K, that would be a 32% decrease in market value. Which is not what we are seeing, which means that they paid probably 15% more than they should have to the builder. Yuck. 

This is a perfect example of why it’s so important to have your own representation even when your buying Regina’s new construction homes. The builder will never share with you what the resale values of the same property are during your purchase and if you don’t do your own due diligence, you could end up significantly overpaying like this young couple did. It’s unfortunate. If they had spoken to any realtor before they bought, they would have been cautioned otherwise. 

 

Contact Me

If you are considering buying a newly built home in Regina, I would be happy to provide you service and ensure you are getting a great home at the right price. I am always available to chat; you can give me a call at 306-552-7047 or fill out my online contact form

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