“The incentive is to get in before prices usually rise.”
Buying a condo in new construction can be risky but it does have many advantages:
• Circumventing the competition; this will allow you to have more options
• Developers are often more flexible and willing to make concessions or give incentives to early buyers.
• The best deals tend to come around in the first phase. Prices in new construction start off on the lower end and then gradually ramp up as the building gets built and the units get sold.
• It’s very likely that within the period from contract signing to closing, the value of your condo will have gone up considerably.
• You never pay the full amount until the day you close, and the initial deposits are in installments. Most condominium developers request an initial deposit ranging from 10 – 30 percent, paid in 2 or 3 installments.
• People who sell when the project is completed are making money on their initial deposit while the total value of the condo appreciates.
Buying a condo when it’s an idea or a hole in the ground has its risks, your deposit is on the line and there is always the uncertainty that the project will be completed, but an experienced agent can help you identify sound projects.
Also, there are buyers that think they’ll get a better deal if they buy directly form the developer’s sales team and this is a big mistake. An agent like me can negotiate on your behalf, help you chose the right unit, and recommend a good attorney to represent your interests.
I specialize in new construction, and I am constantly researching new buildings, their developers, and the economic activity that surrounds them. I have sold several units in new buildings like One Park, Bayso, The Vue, Payne Park and The Art House in St Petersburg FL and my services have been of great help to my clients.
If you are interested in learning about new developments in the area, please email me at AndreaOBrien@michaelsaunders.com