As one of the top milton real estate agents, I’ve been keeping a keen eye on how pre-construction and resale real estate markets have been competing for sales over the last year. And, if you’ve been eyeing a new-build condo, you would have found developers dangling “incentives you’ve never seen before,” and it’s tempting. However, recent headlines underscore why caution is warranted.
Take the case of One Bloor West in downtown Toronto: a court has ordered the cancellation of 314 of 329 presale contracts because the project was deemed unviable. Buyers will get their deposits back, but only after complex creditor proceedings.
Three things every buyer should consider before diving into a presale purchase:
- Project completion is never guaranteed
When you buy presale, you’re betting on the developer finishing the building, delivering on quality, timing, amenities, etc. In One Bloor West’s case, despite signing contracts in 2017-2018, most didn’t get the unit they paid for. - Your deposit may be at risk
Even though this case ended with buyers recovering deposits, the court specifically noted: “buyers do not always get their deposits back when a developer goes bankrupt.” That’s a risk many buyers don’t fully internalize. - Resale offers immediacy and visibility
Buying a resale home or condo means you can see what you’re getting, the product exists, you can inspect it, you can evaluate the neighbourhood, condition, maintenance, and work within a defined timeline. With a presale, you’re buying a promise. If the market shifts, construction costs rise, or the developer’s financing falters, your ideal outcome may change.
What this means for you as a buyer
If you’re in a strong buying position, have a long-term horizon and are comfortable with risk, a presale might still make sense. But if your priority is stability, certainty and avoiding surprises:
- Consider resale inventory in your desired neighbourhood (you’ll actually see the product).
- Don’t let “amazing incentives” blind you to bigger risks.
- Ask about the developer’s track record, financial health, percentage of units sold, timeline, and contingency plans if things go off-plan.
- Make sure you’re comfortable with timelines, delays, and cost-overruns.
At the moment, with a healthy resale market and many established homes/condos available, buyers have real alternatives. Unless you’re confident and well-advised, resale may offer you more peace of mind than chasing a “deal” on a new build. Follow these smart house hunting tips, and you’ll be well on your way to a successful decision.
How common are presale cancellations?
More common than most people think. Rising construction costs, interest rates, labour shortages, and stalled financing can all derail a project. Even well-known developers can cancel or significantly delay builds.
What are the biggest risks of buying presale?
The project may be delayed by months or years
The final unit may differ from what you expected
Fees and closing costs may increase
Amenities and layouts may change
Worst-case: the project could be cancelled altogether
Are “incentives” on new-builds a red flag?
Not always — but incentives often appear when sales are slow or costs are rising. It usually means the developer needs cashflow and is trying to push inventory. It’s a signal to ask more questions, not an automatic deal-breaker.
Is buying presale ever a good idea?
Yes. Presale can be great for buyers who:
want a brand-new unit
are comfortable with long timelines
are okay with risk
don’t need to move immediately
have a strong financial cushion
But it’s not ideal for buyers who want certainty around price, timing, or quality.
What’s the biggest advantage of buying resale instead?
Certainty. You get:
a real, finished product
a defined timeline
the ability to inspect the unit
a clear picture of the building, neighbourhood, and maintenance
fewer unknowns
Resale eliminates most of the variables that make presale risky.
Should I talk to a real estate agent before buying presale?
Absolutely. An experienced agent can help you:
review the builder’s history
compare presale vs. resale value
evaluate risks
negotiate incentives
understand contract fine print
determine if the project fits your long-term goals
Going in without representation puts all the risk on the buyer.
