Chris Robinson gives us 4 tips for when buying pre construction properties.
- Do you research on the builder. You want to ensure they have a good track record of completing projects on time, and haven’t run into many legal issues.
- Be aware of hidden costs during closing. One often overlooked fee is development charges, and if they’re not uncapped, it could affect the amount you pay at closing significantly
- Have majority of the down payment ready when you go to sign the contract. Even though it’s layered 5%, the time in between to save 5% is not that much. On a $700,000 property, $35,000 is a lot to save in a couple months. So you want to have 10-15% (usually 20%) down payment handy right away.
- Patience. Many pre construction properties, be it condos or freeholds, can experience delays, and builders are not as responsive as you may like, so you want to be flexible and adaptable to the situations.
Watch Chris' #TipTuesday video on our Instagram here