The prospect of shopping for a new construction residence can be quite daunting, but the rewards of owning a brand new home out-weight the disadvantages if you know the potential pitfalls. The following are important considerations: Overall Dollar Budget, Location, Cost Per Square Foot, Finishes, Upgrades, Parking and Delivery Date, Get the Right Ad Information’s from appropriate websites such as My Classified Ads
Overall Dollar Budget
The best way to establish a budget is to determine how much money you will need as a down payment and how much money you will need as a down payment and how much you feel comfortable spending, based on your gross income, for monthly payments. Remember that the real estate taxes are generally included in your monthly mortgage payment and should be calculated at a minimum of 2% of the purchase price.
Location
Check out locations, you may want to consider less developed areas of the city. Such areas are typically less expensive than those in more developed areas.
Cost Per Square Foot
When purchasing new construction, the favored method of comparing value is cost per square foot. This is the method used by developers to initially price their developments. With the cost per square foot in mind, you will be able to compare different properties on an equal basis and determine whether you are purchasing at a favorable price.
Finishes
You will need to carefully examine which finishes and appliances the developer has included in the base price versus which are considered upgrades. Note that the more expensive finishes such as granite and marble are not usually included in the base price of a one-bedroom unit.
Upgrades
If you keep in mind that many new construction units are not ready for occupancy for a year or two, you will understand the importance of having all upgrade costs in writing as part of the initial contract – at today’s prices rather than at costs calculated at inflated prices one or two years later.
Parking
Since parking spaces have dramatically increased in value, you should seriously consider purchasing a space whether or not you currently own a car. Without parking, the later sale of a unit may be more difficult than that of a comparable unit for which parking is included in the price.
Delivery Date
Although your contract will specify a delivery date, provisions in the contract will often allow the developer to deliver your unit much later than the specified date without penalty. If this is an important issue to you, you should keep in constant contact with your Realtor during the construction process as delivery dates can be delayed for as long as a year and, in rare occasions, even beyond that. You should also speak with your attorney and incorporate terms into the contract so that your interests are protected in the event this should occur.
Working With A Realtor
Purchasing a new construction residence can be a rewarding experience and a wise investment. But there are definitely nuances involved in purchasing new construction, including the track record of the developer, the number of “flippers” purchasing in the project, and the percentage of sold units.
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