Pre-Construction Purchasing

With the magnitude of post-construction condo profits no longer a sure thing, some folks may want to take some more time to fully evaluate whether it's right for them. 

Here are some things to keep in mind when buying a condo as you drive past a construction site:

• What is the builder's track record at completing projects on spec and on time?
• What is the marketing company's track record at communicating with buyers throughout the sales process and before closing?
• What will the unit feel like?  How can you evaluate the floor plan as realistically as possible?
• What upgrades are appropriate and how are they priced?
• Should you lock your interest rate? Lock it sooner and pay for the costs or lock it later when the construction is closer to completion or not lock it at all?
• How is the unit priced in light of a market trends and other projects in the pipeline?
• How will you time selling your current property and close on the new one?
• How prepared are you for the project finishing 6 months late?
• What is the developer's reputation for handling pre-closing punch list and post-construction defects?

Hope this helps!

-Wendy

Technorati Tags: Seattle condos, Seattle real estate, Pre-construction condos advice, pre-sale advice, Real estate 101

Comments

[Jim VanderMeer]

You provided lots of good questions. How about some answers or at least a hint at how to find them?

[George]

I think the answer to almost all of them is it depends. If you don't know where to begin, you should probably find someone who can help you (friend, relative, Realtor, etc.).

[Wendy]

If you have the time, most of the questions can be answered by good old fashioned research and analysis. Obviously, you can work with a Realtor who has expertise in these kinds of things and have them find out all the answers for you. You can also talk to friends who have purchased pre-sale on their own, read blogs and forums that discuss specific projects in your town, and read some books on real estate investments and mortgages. The biggest hint I can give is talk to as many people as you can, visit as many projects as you can, and remember the sales center is there to sell.