Tuesday, November 14, 2006

Chicago New Construction

Two particular incidences happended to me yesterday concerning new construction/new conversion properties.

First, one of my clients expressed she is probably more comfortable buying a re-sale condo or a totally finished unit in a new development/new conversion.

Second, I received an email yesterday from another Realtor in my network offering pre-construction prices on a new development. This was unique in the sense that they were offering the first two contracts on the development at a flat $50K savings from what they'll hit market at. Plus, they are throwing in a parking space that will be marketed at $35K.

Now, who would bite on this? I might. The reason is, I'm comfortable with the process (read: ups and downs) of being the first one in at a development. I am also comfortable with "buying off a floorplan". I get to pick my finishes, unit location, parking location etc... But, I also may close late, will have to stay on top of the sales agent and developer, help form the initial condo board, and deal with construction of other units when my place is done earlier.

So, after some research, the $85K off looks like it will end up a good deal for the area of the development. And the timing would be right for my next move. I would simply reserve my condo, work out the contract deals and wait. Again, choosing the best placed unit in a development is key... otherwise, you may like the location of the development but are left with specific units with no view.

As for my client, we have explored this avenue and she is not comfortable after viewing new, but unfinished developments. So, we will wait for a finished product or awesome re-sale to come on the market.

By the way, I find out about deals like the one above every week.

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