new condominium projects
selling prior to construction
Thomas S.
O'Rorke REALTOR® Licensed
Real Estate Broker FLORIDA MISSISSIPPI
Gulf
Shores, Alabama Direct
Line • 251-981-1221 Cell
• 251-942-7089 Fax
• 251-955-3203 Email
• Tom@BeachBuys.com Welcome
to beachbuys.com The most
comprehensive real estate web site on the Alabama gulf
coast. Let me help you find your dream
property. Development
of the standard condominium in the beach environment of
old is vanishing. The typical one, two or three bedroom
condominiums are no longer being offered in great
numbers. The past few years, even months, have seen land
coast soar. With little undeveloped land and the land
that is available selling at extreme prices, developers
have built larger and ever more luxurious units in order
to justify this high land cost. The preconstruction
"deals" of yesterday may still be available but the
stakes are significantly higher. Instead
of putting up say, 10% to 15% earnest money on a $300,000
condominium you must now put up 15% to 20% on a
$!,000,000 condominium. This is a down payment that would
be difficult to walk away from. In
the past if you wanted to resell or "flip" your
preconstruction unit and found that several other buyers
in that building wanted to do the same, you often found
you could not sell it as quickly as you might like. This
wasn't a huge obstacle, you just furnished the unit and
rented it until it sold. The rental income nicely helping
to carry its cost until the sale closed. Times have
changed, the hard fact is, prices have come down, not
risen. We are now in a BUYERS' MARKET. Buying
preconstruction to flip is extremely risky and not
recommended Even
considering all of the above, purchasing a condominium
prior to the commencement of construction of the building
or possibly sometime prior to its completion, can be a
very smart way to enter our local market if you are
buyinmgit for your own use and/or as a rental property.
It is not however, without other disadvantages.
Often
a buyer will see a building under construction and
inquire on-site about a purchase. Thinking he or she is
truly getting in on the "ground floor" and buying at the
lowest possible price, a sale is made. Later the buyer
discovers that the unit was a resale or a flip. Someone
else had originally contracted for the unit, hoping that
the price would go up enough prior to completion to allow
him or her to sell it for a nice profit, never having had
to close on the property. Know exactly what you are
buying before you sign anything. If
you are buying for your own use, not as a flip, remember
to factor in the cost of furnishing the preconstruction
unit. While it will come with all appliances including a
washing machine and a dryer, the new owner must buy the
furnishings and the window treatments. In most cases you
must also wait about one year for the building to be
built. How
about positive's? Are there any? Very much so. You are
getting a spanking new product and it will be furnished
exactly the way you want it to be furnished. In most
cases you will have a much broader selection of units
within the building and therefor have a better chance of
getting just the floor you want. SEA
WATCH - PHASE II....
is on hold pending the market up-turn. Click on the link
below to learn about this outstanding
complex. Sea
Watch... a
one-of-a-kind condominium on The Gulf of
Mexico, Perdido Key, Florida Condos
• Condo
Worksheet
• Sales
• Special
Buys
• Home
Page
• Homes
& Land Development
& Commercial
• Boaters
Only
• Preconstruction
• Area
Map
• Mortgage
Info
• 1031
Exchange
PRECONSTRUCTION
coming...
