Why buy pre-construction?

by Ruth Lorenzen

Buying pre-construction has its pros and cons.

What does buying pre-construction mean? It means that you are buying something before it is constructed.

Advantages

• New construction means "new". No worries about what someone else has done to your home before you occupy it (smoke, molds, etc.)
• You can often purchase a wonderful home at an excellent price because you most often will be able to lock in the price long before the property is purchased. This often means that you have instant equity when you finally close on the property.
• Sometimes the deposits are very low so and you are investing in a property that will appreciate by the time you buy it. Investors can sometimes sell their new condo units for a nice profit just months after buying it.
• Sometimes you can select the finishes in your new home: carpeting color and type, tile colors, paint colors, kitchen cabinets (styles and colors), and many more items.

Disadvantages

• You often can't see the building in person before you need to purchase it (or reserve it). Sometimes you can see a model; usually you will be able to see artists drawings of the proposed buildings.
• You have to put down money to reserve your unit long before you can occupy it, so your money is tied up for a while.
• Since construction costs vary over time and available materials change at suppliers, what you thought you were buying in the beginning may not be exactly what you get in the end since most builder's contracts allow for substitution of similar materials.

In all, pre-construction is usually a very good deal. If you're not in a hurry to move into your new home, you can get some very nice property for excellent prices.

Contact me if you'd like to see some of the pre-construction properties available for purchase in Pinellas County.

--Ruth Lorenzen

© 2007 Ruth Lorenzen. All rights reserved.