So if you are a buyer looking for a good deal what are your options?
Consider a re-sale:
Sellers are very motivated to sell and if they purchased 1 or 2 years ago you may be able to negotiate a great price. Since building costs have gone up so have new construction condos. Only owners of re-sales have the ability to sell for what they paid for the unit and guess what? They are selling for little or no profit……….even losing money just to get the financial burden off their back. A Realtor can give you information like how long a property has been on the market and how much they paid.
For instance: A 2/2 condo was listed for 214K, there were about 15 other condos in the same complex all listed for around the same price. This unit had been on the market 124 days. Can you say motivated??? My buyer asked me to find out what the owner paid and offered the exact same price. After negotiations the price was settled on at only 5K more than what they originally paid for the condo in May of 05′.
Things to watch out for when buying new:
How long does the developer have to finish building? Most new construction contracts state that the builder has 2 years to complete construction and close. All builder contracts are written by the builder so be sure to read all the fine print.
Engage a Realtor who knows new construction. Builders compensate Realtors so it won’t cost the consumer to have representation. Most Realtors will know where the new projects are located and can show you any of the properties and provide comparable sales data. They can also assist in negotiating pricing and incentives. Newly constructed condos and condo conversions are listed at today’s prices so it’s best to view all your options before making a decision.
If a builder doesn’t meet their contract quota what happens to your new dream condo? Many projects have not realized their quota within the timeframe allocated by the bank for financing. They are now ditching the project and giving back deposits. If you are buying a new condo conversion or new construction find out if they have reached their quota and if they are ready to close.