What Happens If Your Presale Condo Is Worth Less at Completion?

If you bought a presale condo in 2021 or 2022, you might be getting close to completion day. And you might be hearing some scary news — that your unit could be worth less today than what you agreed to pay. You are not alone. This is happening across Metro Vancouver, Surrey, Langley, and the Fraser Valley right now in 2026. Let's break down what this actually means, what your options are, and how to handle it. Why Are Presale Condos Worth Less Right Now? When you signed your presale contract a few years ago, the market was hot. Prices were at their peak. Since then, a few things have changed. Interest rates went up sharply. Buyer demand slowed down. And a wave of new inventory hit the market at the same time. Vancouver now has over 5,400 completed but unsold condo units — close to an all-time record. That means your unit might appraise for less than your purchase price. This is sometimes called being "underwater" on your presale. What Does This Mean for Your Mortgage? Here is where it gets real. When your presale is ready to complete, your lender will order an appraisal. If the appraised value comes in lower than your contract price, your lender may not give you the full mortgage you need. For example, say you bought at $650,000 but the appraisal comes back at $580,000. Your bank will only lend based on $580,000. That means you need to come up with the difference — in this case, $70,000 — out of pocket. | Scenario | Purchase Price | Appraised Value | Extra Cash Needed | |----------|---------------|-----------------|-------------------| | Small gap | $550,000 | $520,000 | ~$30,000 | | Medium gap | $650,000 | $580,000 | ~$70,000 | | Large gap | $800,000 | $680,000 | ~$120,000 | These numbers are based on what buyers are seeing across Metro Vancouver right now. What Are Your Options? You have a few paths depending on your situation. 1. Complete the purchase anyway. If you can cover the gap or have a bigger down payment saved, this might still make sense — especially if you are planning to live there long-term. Real estate in the Fraser Valley has always recovered over time. 2. Negotiate with the developer. Some…

This article is part of the PresaleProperties.com BC real estate guide library. It is intended for buyers comparing presale condos, townhomes, assignments, deposits, completion timelines, neighbourhoods and developer incentives across Metro Vancouver and the Fraser Valley.

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