BUYING A NEW CONDO?

Buying a new condo can be exciting.  However, if you are buying in a development that is still under construction, there are vital facts to consider.  Most buyers “love it” after seeing it and sign on the bottom line.  Here are the pros and cons about buying a new condo.  One of the most important considerations is the developer.

 

You may be shocked!

 

  • Not all condo developers are created equal!
  • When buying a new condo, it is safer to buy in a complex that is complete, or very near completion.
  • If not complete, there is no assurance that the developer will finish it.  You may be trapped for years in a partially completed project.
  • Check the public records.  It is a good sign if the developer has no lawsuits.  If there is a lawsuit, it may cause the developer to declare bankruptcy, leaving problems unresolved.
  • When buying a new condo unit, have it inspected by your own independent inspector.
  • A condo built today might not be constructed with the same quality of materialsas those used in past developments.
  • Some developers take “shortcuts” to save time, which may lead to improper construction.  Have your independent inspector look for this before buying a new condo.
  • If the condo project is not near completion, if the developer has a lawsuit, if inferior construction materials were used, or shortcuts were taken, the complex may develop a bad reputation.  You may not be able to sell your condo without a significant financial loss.

 

What’s the good news?

 

  • When buying a new condo unit, the cost may be lower than a resale unit because the developer may not be paying real estate commission.
  • If you are buying at a reduced price and the development is successful, yourinvestment appreciates quickly.
  • You get a warranty on the construction of the condo unit for a specified period of time.
  • Maintenance fees that are set by developers and paid by the owners are usually low in order to increase sales.
  • The developer may be providing services for free, which will also keep the maintenance fees low.

 

Check out the developer’s track record!

 

  • Are the other properties the developer built completely sold out?
  • Does the developer have a good reputation?
  • Are there any Better Business Bureau reports about the developer—good or bad?
  • How long has the developer been in business?
  • Talk to some of the condominium’s residents to see if they are happy with the developer’s performance or if they’ve had any construction issues.

 

Will you love it?

 

Many owners are very happy that they bought a new condo unit.  There is nothing quite like living where no one has lived before.  Everything is spotless and fresh.  Newly constructed condominium units also tempt purchasers because they usually have the latest styles and features.  If the unit is not yet constructed, and you buy from looking at model units, you will probably be able to pick out your own styles and colors.

 

When buying a new condo, do your homework.  If you like the advantages a new condominium unit offers, you can minimize your concerns and maximize your enjoyment.

 

 

CLICK ON THE “BOOKS” LINK TO PURCHASE
“CONDO BUYING & OWNERSHIP MADE SIMPLE:
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