This is a very important question, as many new developments have sprung up over the years, particularly in parts of the city south of Market Street. The answer is yes, it is okay to buy in a new development, but keep in mind the following tips:
The area south of the financial district has seen rapid condo inventory growth.
1) Always bring an agent. You have to have your agent with you during your first visit to any given sales center if you plan on using one. Very few developers will allow you to visit alone, and later come back with an agent to represent your best interests. This is a developer custom that has evolved over the years, because like all sellers, they pay your agent’s commission. Fortunately, having an agent represent your interests costs you nothing.
2) Why use an agent? There are countless reasons, but an important one with regard to new developments is that good agents know how soft prices are at each development. Some make concessions, some are taking low offers (in some cases VERY low offers) and some are throwing in goodies such as hardwoods and appliance packages. Conversely, some are not making any concessions. A good agent will know what’s going on at each development and how to get you more for your money.
3) Above and beyond negotiation, another thing a good agent will do for you is keep you away from developments that are fledgling or are headed for big trouble. There are developments (both new and existing) that I wouldn’t let my clients touch with a ten-foot pole. Mismanaged HOA’s, annual budget deficits, lots of REO’s, poor construction quality, and law suits are just the tip of the iceberg. Beware the agent that says all these developments are perfectly good investments. They’re not.
Four more great tips if you continue reading –> Read the rest of this entry ?
