Buying a Newly Built Condominium?
There are vital issues to consider when buying a newly built condo:
- Not all condo developers are created equal
- It is safer to buy in a complex that has been completed, or is close to completion
- If not complete, there is no assurance that the developer will complete it. You may be trapped in a partially completed project.
- Are there any lawsuits filed against the developer? If so, it may cause the developer to declare bankruptcy, leaving problems unresolved.
- Some developers cut corners to save time & money. This may lead to poor construction and construction defects.
- If the condo project is incomplete, the developer is involved in a lawsuit, inferior construction materials were used, or there are construction defects, the complex may develop a bad reputation. The Condo’s reputation will affect future market values and the ability to sell your unit.
- Determine if assessments are artificially low in order to increase sales? If so, insufficient cash may lead to a special assessment
- The cost may be lower than a resale if the developer isn’t paying real estate commissions
- A warranty on the construction is usually available
- The condo is probably built with the latest features
- You may be able to pick your own colors & countertops
Check on the Developer:
- Are their other condominium developments sold out?
- Do they have a good reputation?
- How are they rated by the BBB?
- How long have they been in business?
- Talk to other condo owners and see if they’re happy or have any construction issues