Is buying a pre-construction condo on Long Island right for you? Buying a pre-construction condo means you are buying a condo that is not yet built.
Here are some thoughts before you make this purchase, presented as a courtesy by Long Island Realtors® Lawrence “Larry” and Sheila Agranoff:
Buying Without A Model
At the very beginning with pre-construction, there are no models to view. You may have to make this purchase by just looking at the plans. It can be difficult. Not everyone is savvy enough to picture what the final community will look like.
The HOA Fees
The Homeowners Association fees in new construction may be lower when you purchase. That’s partly because they are estimated in advance of the condo being built, and some costs or changes can effect the actual final fees. Don’t be surprised if condo fees in the pre-construction stage increase when the project is completed.
Builders of new construction will give an estimated completion date, but we have seen that this rarely happens. Builders may have to delay the finished condo for all types of reasons and your move-in date may be postponed indefinitely, The actual time of the delays can vary so you should have the ability to be able to wait, and wait, and wait.
Expect The Unexpected
We were working with relocation buyers and they only wanted new construction. In fact, they only wanted pre-construction condo communities. They purchased it sight-unseen from a trailer on the site, and asked the builder’s rep to help them choose a unit. Although we advised them that this agent worked for the builder and not for them the buyers, they listened to his recommendations.
No such a good idea. Remember the agent at the sales center works for the builder, and their job is to get the best price and conditions for the builder, not the buyer. In the end, the unexpected happened and they cancelled the contract as they were advised that the unit they wanted was being given to the builder’s sister and they would have to choose another location.
Choosing Your Location From The Site Plan
Choosing a site can be tricky. Looking at a community site plan can be confusing to many. A buyer we were working with told us about an experience she had prior to meeting us. The builder’s sales representative advised her that the site they chose was a prime location. It was going to be right next to the clubhouse. What the agent neglected to tell them was that the waste treatment facility for the grounds was going to be in their backyard view. She cancelled her contract and called us.
Don’t get us wrong, buying a pre-construction condo can be exciting…as long as you do your research. Working with experienced Realtors® like Lawrence & Sheila Agranoff on Long Island, instead of using the builder’s agent, is the best way to be successful in this journey.
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