What Is a Decorating Allowance in a Presale Purchase?
When you’re buying a presale home in North Vancouver or West Vancouver, you might hear your agent or the developer's team mention a “decorating allowance.” But what is it really—and why do developers use it?
Let’s break it down.
Disclaimer: This article is for general information only and does not constitute legal or professional real estate advice. Always consult your REALTOR® and other licensed professionals before making buying decisions.
A Decorating Allowance Is (Usually) a Hidden Discount
A decorating allowance is a credit applied to your purchase at closing. It’s often positioned as a budget for upgrades or interior finishes—but in practice, it’s typically a way for the developer to give you a financial incentive or price reduction without changing the official sale price of the unit.
For example, if you’re buying a presale condo in North Vancouver listed at $1,000,000, the developer might offer a $25,000 “decorating allowance.” You still sign a contract at the $1M price, but at completion, that $25,000 is credited back to you, reducing your effective purchase price to $975,000.
Why Developers Offer It — But Don’t Advertise It
When developers are still actively selling homes in a building, they want to protect the perceived value of the remaining units. Publicly lowering prices can cause other buyers to ask for similar discounts, slow future sales, or impact appraisals.
Offering a decorating allowance lets them:
- Show the unit as sold at full price
- Maintain consistent pricing across the project
- Quietly offer incentives in slower markets or to serious buyers
What Buyers Should Know
If you’re buying presale in North Vancouver or West Vancouver, and a decorating allowance is offered, ask:
- Is this a true budget for upgrades, or simply a price credit?
- How will it appear on the contract? It may be reflected in the Statement of Adjustments at closing.
- Does this affect your deposit structure, tax calculations, or financing? (Consult your lawyer or mortgage broker to be sure.)
Even though the term “decorating” is used, you may not need to spend it on finishes. In most cases, it's just a credit back to you.
Final Thoughts
On the North Shore, presale incentives such as decorating allowances are often used as quiet deal sweeteners in the presale market. Whether you’re negotiating for a new condo in Lower Lonsdale, an upscale townhome in Ambleside, or a mixed-use development near transit hubs, understanding this tactic can help you make a more informed—and strategic—purchase.
Have questions about buying presale in North Vancouver or West Vancouver? We’re happy to walk you through your options and help you get the best value possible.