FAQs
You Asked, We Answered
Can I finance a pre-construction property?
Generally speaking, pre-construction contracts do not have financing contingencies within them. Most pre-construction sales require putting 40-50 percent down at different milestones on the project. Developers or the team marketing the project will often partner with one or two lenders as the project nears completion and get them to offer financing for some or all of the remaining amount due on the project. If you are curious about financing a portion of a pre-construction property, feel free to reach out and we will connect you with a lender who can answer your questions in more detail.
Why should I use a realtor for my pre-construction search?
Just like a search for a new home, there are many nuances to each new development. You want to make sure you know what you are buying and that you are not going to end up buying a unit that backs up to the parking garage of another new development in two years -- it happens! While most developers are great and want to do their best to deliver on their promises, they can often embellish the details and overlook objective shortcomings that are obvious from the outside looking in. We are here to help be that objective advisor in these situations.
What is the most important thing I should look for in a new development?
The answer to this is very subjective. A few of the important things to note are, estimated HOA fees, rental restrictions, appliance packages and timeline. The importance of each point varies based on each buyers end goal with the property. If you are buying to run a short term rental business then rental restrictions are very important, if you are buying for a personal residence then amenities and programing may be extremely important. Our job is to help identify those important factors for you based on your needs and help match you with the perfect property.
That unit was $X,XXX,XXX when we viewed the project 2 months ago and now it's what?
While we are ALWAYS going to advocate for our customers and get them the best pricing possible, new development pricing and availability can be volatile. This is especially true in the "pre-sale" or "friends and family" stages. Initial pricing is often very attractive on projects as developers look to shore up reservations so that they can get the best finance deals from their lenders. While the pricing change from this phase to the general sales phase may be the most noticeable, prices and availability can really change at any time. With that said, if we are working with a sales person on a deal they will usually give us a fair heads up about price changes. Moral of the story - if you are looking for the best possible price on new-developments, stay informed and jump on a unit as soon as you find one that works.
Are pre-construction condos a guaranteed win?
While I would love to tell you yes, this simply is not true and, again, it is very subjective. If a win means that you will flip your unit for a profit right at closing - the answer is not always yes, there are a multitude of macroeconomic factors that go into condo pricing and its nearly impossible to forecast them 3-5 years in advance. If a win means that you will get the customized condo that you have always dreamed of, the answer is closer to yes - as long as you understand the variables that are written into the contract, buying in pre-construction gives you a great chance to get a brand-new dream condo a favorable price. There are far too many scenarios to consider to say that pre-construction is a guaranteed win, however, you generally get a newer product delivered at a future date at todays pricing which is one of the greatest benefits of buy in a new development.
Can you manage our properties for us?
While we don't have a property management wing, we can certainly assist in getting your investments leased up and connect you with a reputable property management company.
What is a typical timeline for a new development?
A timeline from start to finish really depends on the complexity and size of the project. From the first pre-sale phase of an average 40 story building until completion could land in the 3-5 year range. For larger or more complex projects, you are in the 5-7 year range and for smaller or more basic projects you could be looking at 2-4 years. Keep in mind that you can generally purchase units at any point in the timeline (assuming there is inventory) but prices tend to get higher towards completion date. Additionally, you may have the ability to purchase a unit with immediate delivery from time to time. If you are looking to put your money to work right away, or move in tomorrow there are usually a few developer units leftover after completion - click here to get more info on available units in recently completed projects.