4 Solid Tips On Buying Pre-Construction Condos

A pre-construction condo is much like purchasing a futures contract in the stock market. While you can purchase these properties for a low price, you are buying them hoping the prices will go up over time. If you are considering investing in pre construction condos for sale, here are some useful tips you need to follow to buy the best one for your needs.

Reputable developers:

Before buying pre-construction condos, you should always research the developer. Try to find out about their past projects and what kind of amenities are included. Also, compare the price and location with those of similar units. Then, make an informed decision. If you feel that the price is too high, you can always cancel the contract and get a refund of your deposit.

Cooling-off period:

Whenever you offer to buy a pre-construction condo, you have the right to cancel it if you don’t like it. You can do this if the changes that have been made have yet to satisfy you, if your mortgage rate has yet to be approved, or if you find a better deal. Generally, a ten-day cooling-off period applies.

Dealing with delays:

When buying pre-construction condos, it’s essential to understand how to deal with delays. Although a typical delay is three to eight months, delays can be much longer. Projects take three to four years to complete, and delays can occur for various reasons. Although delays can be frustrating, they can also be beneficial. You can often negotiate a rebate from the builder if you can handle the situation well.

One way to deal with delays is to build flexibility into the contract. You can always negotiate a later delivery date or cancel the contract and reinvest your deposit. It’s a good idea to have flexibility with your purchase date, but be sure to negotiate an out-of-contract cancellation clause. You want to avoid getting stuck in a situation where your unit isn’t ready.

Finding a good deal:

You’ll need to research the developer and their previous projects when looking for a pre-construction condo. This way, you’ll be able to compare square footage, amenities, and location. Also, you’ll be able to find out what comparable units in the building are selling for and whether the price is reasonable for the area. Finally, you’ll want to be patient during the construction process. The construction process has ups and downs, so you must be prepared to deal with these problems.