Buying a brand-new home is a dream most people harbor in their hearts. Most people prefer buying an already lived-in home due to the hassle and commitment to construct a house from scratch.
Condos and move-in-ready homes emerge as a good opportunity for people to move into their dream home or even look at it as an investment opportunity. In cities like Cincinnati, New York, Miami, Los Angeles, etc., the real estate market grows by leaps and bounds.
But before you invest in any such property, it would be better to take cognizance of a few things. Here they are:
Past projects of the builder
Who is the builder? And what are their past projects?
Before you invest your hard-earned money in any property, it would be wise to investigate the builder. Research the past projects of the construction company. Visit the sites and check physically.
It might not be possible to physically visit the site if you invest in a project in another city. In this case, use the internet to your rescue. For instance, you can easily research the past projects of any construction ccompany in Cincinnati sitting in New York, London, Brisbane, or any other city for that matter.
Invest in the project only if you are satisfied with its quality.
The reputation of the construction project
Your real estate agent will give you a detailed account of the developer’s reputation and the project. Or, you can also meet the neighborhood residents to know about the same.
Find out if there is any controversy related to the project? Is there any issue with design or zoning? What is the value of the project in the market? It’s necessary to reflect on these factors if resale is on your mind.
The best way to gauge the project’s reputation is by knowing the current status of its penthouse.
Penthouses are money-making machines for builders and dream units for buyers. Most buyers readily invest in penthouses. If the project’s penthouse is already sold out at a high price, you can take it as a reputable project.
Status of other homes
It is another trick to determine the reputation of the project. If the community or building is sold out, it is a good sign. Also, it indicates that the builder is eager to sell the remaining homes, so you can use it as an opportunity to fetch the best deal.
However, if most of the units are still unsold and the buyer faces a tough time selling them, it is a possible red flag. There could be a not-so-pleasant reason for the unsold units that you should know.
Consider the developer concessions
You will need the help of an agent to understand the financial aspect of investing in a new development property, as it is the most complicated aspect of buying a property.
Apart from paying the purchase price, you will have to deal with additional costs and fees, such as mansion taxes, state and city transfer taxes, closing costs, etc. These costs could add up to 5% or more to the total cost.
Before investing in a property, it is essential to understand all the costs and fees involved. Moreover, you will have to hire a home inspector to evaluate the property at your expense. However, if you are buying an apartment, you might not need a home inspection.
The bottom line
Buying new construction is a luxury. However, you need to exercise caution and understand the intricate details of the process.
With the guidance of a real estate agent and these tips, you can turn your dream of buying a new property into reality.