Presale vs Resale Homes in Vancouver: Which Is Right for You?

Buying your first home in Vancouver is exciting, but it comes with a big question: should I buy a presale or resale home? Vancouver’s market offers both brand-new presale condos and townhomes, as well as resale properties (homes that are already built and previously owned). Each option has its own financial perks, lifestyle benefits, and risks to consider. In this casual yet informative guide, we’ll compare presale vs resale condo Vancouver options to help you decide which route fits you best. We’ll break down the money matters, day-to-day lifestyle factors, and even touch on real-life scenarios and current market trends. Let’s dive in!

What’s the Difference? Presale vs. Resale Explained

Before weighing the pros and cons, let’s clarify what “presale” and “resale” mean in Vancouver real estate:

Presale Homes (Pre-Construction): These are homes you purchase before they’re built or completed. You usually buy from a developer based on floor plans and renderings. It’s kind of like buying in the future – you secure a unit now, often with a smaller down payment schedule, and take ownership years later when it’s finished. Presales in Vancouver commonly refer to condos or townhomes in new developments.
Resale Homes (Existing Properties): These are homes that are already built and have been lived in (or at least completed). You buy from the current owner and can see and touch the actual property before purchasing. In Vancouver, this could be a condo, townhouse, or single-family home that’s on the market. When you buy resale, the home is move-in ready once the sale completes.

In short, a presale is buying something to-be-built, whereas a resale is buying something that exists right now. This core difference affects everything from your finances to your move-in timeline.

Financial Factors: The Cost of Presale vs Resale

For most first-time buyers, money is a huge factor. Let’s compare the financial side of presales and resales in Vancouver:

Deposit & Down Payment:
- Resale: You generally need 5%–10% down if the purchase price is under $1M. An initial deposit (often around 5% of the price) is typically due within a week of an accepted offer.
- Presale: Usually requires a series of deposits to the developer, totaling 15–25%. These are paid in installments over months or years during construction. So while the overall deposit might be higher, it’s spread out over time.
Mortgage Timing:
- Presale: You won’t need a mortgage until the project completes (1–3 years down the road).
- Resale: Your mortgage begins as soon as you close on the property (usually 1–3 months after making an offer). This means you have to be prepared to start making mortgage payments right away.
Price and Negotiation:
- Presale: Prices are often set by developers with less room for negotiation, though developers sometimes offer incentives.
- Resale: The price is typically negotiated between buyer and seller. You may be able to get a better deal or include conditions like repairs or credits.
Taxes and Closing Costs:
- Presale: Subject to 5% GST on top of the purchase price. However, you may qualify for the Newly Built Home Exemption for the Property Transfer Tax (PTT) if the home’s under certain thresholds.
- Resale: You don’t pay GST on resale homes, but you do pay PTT unless you qualify for the first-time buyer exemption (for homes up to a certain price).
Appreciation or Market Changes:
- Presale: Lock in today’s price and potentially benefit from market appreciation by the time of completion, but risk if the market dips.
- Resale: Pay current market value. Less speculation about future prices, but you don’t get the “free” appreciation if the market rises before completion.
Carrying Costs and Fees:
- Presale: No mortgage payments during construction, but your deposit is tied up. Maintenance fees may be unknown or set low initially.
- Resale: Mortgage payments and strata fees start immediately. However, you can review the building’s history of maintenance fees and assessments.

Financial Takeaway:
If you’re tight on funds and need to start with a smaller down payment, resale might be more accessible. If you can manage a larger deposit over time and are comfortable waiting (and hoping the market stays strong), a presale can be a great long-term strategy.

Lifestyle and Convenience: New Home vs. Move-In Ready

Move-In Timeline:
- Resale: Move in right after closing—ideal if you need a place soon.
- Presale: Wait 1–3 years or longer for construction. Great if you have time or want to plan ahead.
Being the First Owner:
- Presale: Everything brand-new, plus a 2-5-10 year warranty on defects. Possible customization options.
- Resale: The home may have some wear and tear, but what you see is what you get. Often no surprises about the actual space.
Home Features and Customization:
- Presale: Modern layouts, new appliances, opportunity to choose finishes.
- Resale: Existing features may be outdated, but you can renovate after closing if you want.
Neighbourhood and Community:
- Presale: New building, evolving community—could be exciting or uncertain.
- Resale: Established neighbourhood, known amenities, and you can see the community vibe before buying.
Convenience Factors:
- Presale: Construction delays are possible. You’ll keep renting or living elsewhere until completion.
- Resale: Faster process—search, buy, move in.

Lifestyle Takeaway:
If you prefer immediacy and certainty, resale is your go-to. If you want the latest features, warranties, and don’t mind waiting, presale offers that new-home glow.

Risks and Considerations

Financing Risk:
- Presale: You’re committing to a future mortgage rate and your financial situation might change over the next few years.
- Resale: The timeline is shorter, so less chance of big financial surprises by closing.
Market Risk:
- Presale: If the market dips, you might be stuck paying above the unit’s value. If it rises, you benefit.
- Resale: You pay the current market price; what happens afterwards is standard market fluctuation.
Construction and Completion Risk:
- Presale: Delays, possible project cancellation, or changes to floor plans.
- Resale: Check for building condition and strata documents for any red flags.
Legal and Contractual Details:
- Presale: Developer contracts can be complex. You often have a 7-day rescission period to review.
- Resale: Standard purchase agreements, with opportunities to add conditions like inspection and financing.
Strata Fees and Bylaws:
- Presale: Might start low and increase after the first year. Bylaws can change once the strata is formed.
- Resale: Known strata history; you can see past fee increases and existing bylaws.

Risk Takeaway:
Presales involve more future uncertainty (market swings, financing changes, construction timelines). Resales offer immediate transparency but may have older-building issues or higher initial maintenance costs.

Vancouver Market Trends

When interest rates are high and the market is slower, both presale and resale can offer unique advantages:

Presale: Developers might offer incentives or flexible deposit schedules if sales are slow.
Resale: You could have more negotiating power in a balanced or buyer’s market.

Always keep an eye on current market conditions. Are there a lot of new projects launching? Are developers offering special promotions? Are resale listings plentiful or scarce? These clues can point you to the best value at the time.

Should I Buy a Presale or Resale Home?

It depends on your:

Budget and Down Payment – Smaller down payment favors resale; presale may need 15–20%.
Timeline – Need a home now? Resale. Comfortable waiting? Presale.
Risk Tolerance – Avoid uncertainty? Resale is predictable. Okay with waiting for potential gains? Presale.
Preference for New vs. Existing – Love that fresh, customizable home? Presale. Happy with a lived-in home that might be more affordable? Resale.

Final Thoughts & Next Steps

In the end, there’s no one-size-fits-all answer. Both presale and resale can be great ways to own property in Vancouver. If you’re a first-time buyer, weigh the pros and cons carefully.

Want more guidance on Vancouver presales?
Stay on top of new developments, market updates, and expert tips by signing up for our PresaleHomes.ca newsletter. Whether you choose presale or resale, knowledge is your best friend in Vancouver’s dynamic market. We’re here to help you make the choice that fits you and your future best.

Happy home hunting!

Presale vs Resale Homes in Vancouver: A First-Time Buyer’s Guide