Are you thinking of buying in a new condo building in this buyer centric market. Here are essential questions you need to ask in order to minimize the risks of buying in a new development:
1. What’s the exact plan for the building?
To find out have your attorney carefully review the offering plan.
2. What’s the outside date?
If a building isn’t completed by its scheduled date then you can usually get your down payment back.
3. What is the developer’s track record?
Google the sponsor as well as the development firm to see what other buildings they completed and level of buyer satisfaction.
4. Any closing costs I should know about?
Some developers pass on unexpected expenses to buyers. These are listed in the offering plan.
5. Is the price negotiable ?
Sales in 2018 fell sharply on new development.Best way to negotiate is educate yourself and comps to use to support your price.
6. How about concessions?
These don’t affect price but the can save you money. Examples are items such as closing costs, transfer taxes, mansion taxes ,free storage.
7. What building extras am I willing to pay for?
Some new buildings over the top amenities to attract buyers. Make sure that these amenities are important to you because you will be paying for them in your monthly charges.
8. If the building comes with a tax abatement, when does it expire?
Usually they last 10 years. Find out how much taxes you will be paying when the tax break
9. What does the model look like?
You will be able to see the quality of the finishes.
10. Does the design fit my lifestyle?
If you rarely cook then a sleek small galley kitchen is fine not so if you have a family. Look at the layout and lighting.
11. Can I get a mortgage?
It is possible however banks typically don’t issue loans until 51% of the units are sold.
12. When can I move in?
It could be 12-18 months. You will get a target date however there could be unexpected delays.
13. What kind of retail will the building have?
Important to know so you don’t get stuck with noise or an unpleasant surprise.
14. Who are the neighbors?
Empty lots, then find out how it will affect your quality of life.
15. What are the heating & cooling systems?
HVAC units stick out into a room. They can be quiet and efficient or noisy?Some super luxe condos have systems that are true central systems.
16. What about the soundproofing between apartments?
Additional layers of sheet
rock take care of this.
17. What’s the experience of the residents so far?
Try to visit a building in the evening and meet people in the amenity spaces.
18. Can I rent out my condo?
Some developers prohibit renting out your apartment until a year after closing.
19. Are there any special restrictions?
Some buildings make you own for certain amount of time in order to discourage flippers who would be competing with the sponsor.
20. What is the best way to conduct my walk-through?
Hire an inspector who will walk through with you with a punch list to check off what is missing or needs repaired.