Opting for new construction
Whether to buy an existing home or a newly constructed or renovated home is yet another decision to make during the home-buying process. If you decide to go with new construction or renovation, a real estate t consultant can be a powerful advocate in your corner as you negotiate upgrades, a move-in date and other terms with the developer.
Below are some basic pointers to prepare you for the journey ahead.
The developer’s representative and your real estate consultant
The ultimate goal of the sale office on any new development is to sell you a home within that particular development. His or her role is to provide a wide range of information to help you in your decision-making, within that particular project.
A real estate consultant experienced in new construction will be able to help you wade through all the data and point out the downsides and upsides of each line item. Your consultant can also look out for your interests in reviewing the pluses and minuses of different new development projects as well as the reputation and experience of various developers.
It's all about timing
Market conditions greatly dictate a developer’s incentive to make a deal you cannot refuse. When a developer has inventory on his hands, his carrying costs start adding up. When this happens, a developer might be more amenable to strike a favorable deal, whether it's throwing in upgrades or taking a bit off the asking price. A real estate consultant can help you know when market conditions are right for these benefits.
A word about paying up
While there are always exceptions, most developers require a deposit when a purchase agreement is signed. They also require that the buyer pay for any upgrades prior to closing. If you back out prior to closing, unless the agreement states otherwise, you will lose that money. Make sure you understand every detail in the developer’s contract before signing it.
