The Complete Guide to Buying a Pre-Construction Condo in 2023
Buying a pre-construction condo comes with it many advantages. Part of which is better pricing vs a project ready to be on lease almost immediately. Regardless of condo design, the pre-construction condo does come with some risks. Risks like construction variances, delayed completion, and some others.
Still, getting a condo apartment in 2023 is a good idea. It remains one of the trending spots in recent years to live in. An excellent condo interior design makes it all the more attractive.
Buying a pre-construction condo in 2023 is a great idea. Regarding modern condominiums, getting condo mortgages can be challenging for some. In the same vein, a few can get it easy. Regardless, knowing what to do is as important.
This is why you should seek professional help always. S3DA Design firm has one of the best sets of real estate experts. Always on hand to offer you the best advice. Especially when it involves modern condominiums, condo mortgages, and more.
This article though helps give you an insight into buying a pre-construction condo in 2023. As a complete guide, it tells you the things you should watch out for to make things easier. Here are a few of those things;
Things to Watch Out For When Buying a Pre-Construction Condo
Developer’s Reputation:
When buying a pre-construction condo, the developer’s reputation is vital. It plays a huge role in the quality of the product and how authentic the deal will be as well. A developer with a huge reputation to maintain always comes out on top with the best deals.
A well-known developer has a brand and equity to protect. A small-time developer can abscond with the funds with ease. Most especially should things go sideways.
There have been past events of shady condo apartment sales from small-time developers. They often never end well.
Always ensure you deal with trustworthy developers. This will save you unnecessary stress and unwanted court cases as well.
Expect Construction Delays:
Don’t always fall for believing the exact completion dates stated earlier. As long as it involves construction, be prepared to wait at least twice the expected duration. That means, don’t be in a haste to move in. With most pre-construction condo purchases, there is little certainty when it comes to the move-in date.
Resist the urge to sell your former home before due to desperation of trying to move into your new home early. The exact time frame is a bit hard to line up most times. Sometimes you can have little or no say in when your condo design is well-executed.
Take Advantage of the Schedule A Pricing:
One of the biggest benefits of buying a condo apartment in the pre-construction stage. You can get the lowest prices available by being early. Compared to when it’s been finished with the condo interior design as well.
Developers have milestones to meet and what to do so as early as possible. They wish to show progress. This leads to more flexibility when dealing with early buyers.
The early pre-construction buyers tend to take advantage of the Schedule A pricing. In simpler terms means the lowest pricing available on the market to the public.
Outside Date Negotiation:
As earlier said, construction can sometimes take much longer than you expect. In such cases, you can expect your deposit to be held down for some months to years even. That’s where this option comes in.
You can decide on your lawyer negotiating a date into the buy contract. This date permits you to cancel the contract if the condo isn’t finished by a certain date. This date is an ‘outside date’.
Such terms mean you can cancel the contract and get your money back. That is if the construction completion goes way past time. If there’s a market downtown, this comes in handy. You can get your money back and re-deploy it on another modern condominium or into the market.
Negotiate Contract Deposits:
In a regular resale deal, the contract deposit of the buy price is often 10%. Sometimes it can increase to 20% as the completion of the project draws closer.
It’s quite fortunate that like every other thing in real estate, the contract deposit amount is negotiable. Especially when it is a weak real estate market where the developers are very much eager to negotiate.
Always Negotiate Closing Cost:
There’s always more room for negotiation when buying a pre-construction condo in 2023. If the market is weak, then it even becomes easier. This is because developers are trying to keep lenders happy and offload inventory.
There are a lot of fees to be paid by new construction buyers. It involves transfer taxes, sponsor’s attorney fees, and much more. During the normal re-sale transaction, these are paid by the seller.
In this case, you can negotiate these extra closing costs and more. You can also negotiate closing costs like the buyer’s mansion tax.
Final Thoughts:
Buying a pre-construction condo apartment in 2023 is ideal. One of the best deals you can make in real estate. The market is growing every day and it’s always best to catch things early and at the best prices.
Make your research before you indulge in any deals. You can always seek professional help and advice on proceedings. This will help lighten the load and give you a clearer insight into this.
For much more on this, contact S3DA design firm experts for more.