Does Mattamy’s New Price Protection Policy Actually Benefit Buyers?
Have you ever heard of 'Price Protection' for a new home? Well Mattamy Homes just launched what might be a game-changing policy that says if the price of your property drops after you buy, they’ll refund you the difference. Sounds like a dream in this market, right?
"On paper, it’s a great concept. It’s meant to give you peace of mind so you don't worry about the market crashing before you close. If the price goes down, you get compensated for it. Simple, right?
But you have to look at the fine print – here is what the policy actually says:
I’m not a lawyer, but I interpret this as the policy only triggers if Mattamy lowers the price of the exact same floor plan, called the exact same name, in the exact same phase of the development. It has zero to do with the actual resale market. If houses across the street drop $100k in value, you get nothing."
This means the developer is 100% in control. They aren't going to just lower the price and write you a cheque. Instead, they can just call the next set of houses a 'new phase.', reconfigure the floor plan slightly, or just give it a new name. Or, they keep the base price the same but give ‘design credits' or 'free upgrades' to new buyers, which is essentially a discount for them, but technically not a price drop for you.
Don’t get me wrong Mattamy is a good builder but this is just a clever marketing tool to get you to sign today, please don't mistake it for real market price protection. Always read the terms and conditions of your contract before you sign or use an experienced real estate agent like me to help you with the purchase.
What do you think? Is this real protection or just a sales tactic?
Kyle Dovigi
Real Estate Broker | CondoMillionaire.com
Anyone can become a Condo Millionaire - it all starts with one.
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