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How To Be Successful When Buying A Pre-Construction Condo

Interestingly enough, the on-line Oxford Dictionary defines success as the accomplishment of an aim or purpose. Variations in purpose and objective are likely depending on the location. The properties of Eighty-Seven Park are a commendable goal for two reasons if none other. The first is their superior design, newest and best technology, which includes the use of hurricane-resistant glass panels instead of so much concrete. The standard is being set here.

One of the biggest reasons to buy one of our pre-construction condominiums is that getting as much as possible what one wants is easier before than after the residence is built. Negotiating with the builder is easier before construction than during or after if there is a particular feature or floor plan change a buyer wants. Negotiating the price and the terms of the purchase is easier before construction begins than after.

Because of the materials and design popularity and Miami’s already international business environment, its highly desirable location, a pre-construction purchase is a way to avoid the disappointments or hassles of a competitive market.

One has to admit there is a sort of Noah’s Ark element in a pre-construction purchase especially if the buyer is not local. No one knows absolutely what there will be until one sees it.  There is always the possibility, though usually improbable, the project will be shut down and deposits refunded. The closer a buyer is to the construction site the easier a preview is.  The ability to follow the raising of a building is a satisfying sentiment be it a home, a school, an office, or a worship center.

Not only that, but the pre-construction negotiations are typically more favorable because the builder wants to jump-start the project and create curiosity so he is willing to offer incentives to pre-construction buyers.

For a pre-construction purchase, especially for an investor, the tax benefits begin when the building does and they only increase when the loan is switched to a mortgage after construction is complete.

A piece of land available for building is rarely perfectly symmetrical and almost never ocular. For a community of stand-alone homes, that means not all the individual plots are the same size or shape. Buying pre-construction means the buyer has a better shot at getting the most desirable plots.

For a high-rise building of condominiums the opportunity is similar.  Height and view are often the most desired residence characteristics. The buildings are designed, though, to offer options.  So to keep the building within its outer parameters, the inside varies with the number of bedrooms or the size of outside living space, size of inside rooms, and other options that vary.  Here at Eighty-Seven Park, everyone will enjoy the breath-taking views of the water and the area. Some will view it straight-on while others will view it from the side of the building facing away from the water.

As an investment buyer there is one detail of which to be aware. If there is a certain feature sought because it will be expected to be more attractive to renters and not because one is buying the space for his own family, then there are opportunities still to exploit the pre-market prices for those who bought pre-construction yet want to re-sell once construction is complete. The risk is options may be limited as to the type of units up for re-sale after pre-construction closing.

Another way to do everything possible to ensure the purchase is everything wanted is to hire a realtor whose appetite for the immediate commission does not supersede the willingness to invest in a longer-term relationship and, therefore, take the time do the negotiations with the developer that often take time but that will most benefit the buyer in the long-run.  Sometimes those negotiations are also a matter of knowing whom to consult further up the ladder, pun unintended.  One bargaining chip an investor has over a buyer for himself is the promise of rental business to the real estate agent for the property once the property is available.

Speaking of renters, know the developer contract well. The lawyer in investment purchases is a lot like the inspector to one buying for himself.  There are pros and cons to renting a new property.  Some renters may like the idea of penetrating the construction hymen, if you will. Others may be hesitant to be in a situation where he or she is working out the kinks as a renter, particularly if the developer is slow to make repairs and quick to place defects on the shoulders of the owners. They do not want to be caught in the middle as a renter while the developer and buyer duke out the responsible party.

The old cliché about location is still true. Investment buying differs from flipping properties. Aside from the obvious that one property is newly constructed and the other newly renovated, buying a pre-constructed property with intent to rent means buying a property people will want to rent because of where it is and the latter making it a property people will want because of what it is.

We at Eighty-seven Park are committed to providing buyers what they want. Call us.