Is it wise to buy a condo during pre-construction?

Question

I went to a sales office in an exclusive business development to inquire about an ad I saw for a luxury condo. The sales agent of course tells me that it is good to get in early because the builder does not have an exact price for the market due to current construction. Everything seems on the up and up, but I am curious if it is a good move. She told me that the price that I am getting is a very good deal because the condo is not complete and after the builder is finished with the project, the unit will surely increase in price.

Answer 1

If you can get a good deal on it, DO IT, just do research on what the other people above said, check out other condo prices in the same area, schools, shopping, among other things. Usually you can get a heck of a deal early at a jobsite or buying the last model homes.

Answer 2

This is certainly true where I live (D.C.). Condos are going up all around and the best time to get in is during pre-construction. I would wait a few weeks to see whether the condos are selling and if, so how fast they are moving. If they don't move fast enough, the builder may throw in some incentives like closing cost assistance or upgraded amenities. You could also ask them for these things before signing a contract. It never hurts to ask. Also, if you currently own a place, aske them if they offer a "guaranteed sale" program. Some builders work with real estate agents who will guarantee the sale of your home within a specified period at a specific price range or they'll buy it from you at the promised price. This gets you an assurance of equity to put down on your condo.

One thing to be wary of when purchasing a condo is the association fees and the by-laws. Those fees could run upwards of a few hundred dollars a month and the by-laws could be really restrictive (one place I looked at made you rent a garage for your motorcycle - no on-street parking!). Overall, a condo is a good investment, especially in major metropolitan areas where housing is at a premuim - think, Chicago, LA, Boston, NYC etc. Houses sell faster, followed by townhouses, then condos - that's something to keep in mind too. Good luck!

Answer 3

The prices of condos and subdivisions usually go up when they get closer to completion. But be on the look out to make sure your community gets fully built.

A realtor could help you and looking around the area and pulling price info on similar condos in the immediate area.

There are some condos near me that have a few built but waiting to sell them before they build any more. Its been nearly a year and they haven't sold one.

Answer 4

yes. BUT you do have to do your research. The area,how much the other condos are selling for, what kind of amenities they will have compare to the other ones...etc....yes because the market most likely will go up,BUT again we don`t know.In Chicago area i`ve got friends that build condos and they sell below then expected...IT IS THE BUYERS MARKET!
But again....number one rule in real estate:LOCATION
if you think that`s your ideal location...GO AHEAD!

Answer 5

it extremely is extremely no longer undemanding to foretell the marketplace. Values ought to bypass up, yet in addition they ought to come tumbling down. If i ought to are waiting for those issues, i may well be rich for particular. I artwork for a builder so it extremely is a pair issues i can inform you. it extremely is totally no longer likely which you would be waiting to barter cost and enhancements. additionally, with new shape many circumstances the builders run into unpredicted hiccups with the development technique. some closings are not on time quite a few months because of fact of inspections, allowing, water meters, shoddy workmanship by subcontractors, etc. it extremely is going to likely be lots greater handy to barter with a builder who's attempting to sell off inventory properties if there are any on your section. The builder I artwork for in basic terms decreased abode expenses by 30-50% on inventory residences they're attempting to get rid of. it extremely is in Florida the place the marketplace is in somewhat a droop top now.