My husband and I are thinking about putting a down payment on a pre-construction condo in Chicago (the South Loop). This will be our first home, so we just want to make sure we’re making a good decision. Is it a good time to do this? Should we be able to negotiate price/upgrades at all? How likely is it that the building will be finished when they say (right now they’re saying fall 2008)? Is it likely that the value of the unit will appreciate much by the time the building’s finished? I know this is a lot of questions, but I’m a first-time buyer! Thanks for the help!
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{ 3 comments… read them below or add one }
are you looking at the 235 vanburen building?
It’s really hard to predict the market. Values could go up, but they also could come tumbling down. If I could predict these things, I’d be rich for sure.
I work for a builder so here’s a couple things I can tell you.
It’s very unlikely that you’ll be able to negotiate price and upgrades. Also, with new construction many times the builders run into unexpected hiccups with the building process. Some closings are delayed several months because of inspections, permitting, water meters, shoddy workmanship by subcontractors, etc.
It will be much easier to negotiate with a builder who is trying to unload inventory properties if there are any in your area. The builder I work for just lowered home prices by 30-50% on inventory homes they are trying to get rid of. This is in Florida where the market is in a bit of a slump right now.
Buying pre construction is general a lot cheaper than after construction is complete. I know that in new york and florida prices shoot up after construction. Also you get first dibbs on layouts and prices. Everyone else is limited on layout and price. There might be a delay is completion. For that I would research the developer and see if there reputation is up to par. Find out if there are any restriction with selling or renting the property. Find out if there are any tax abatements to take advantage of.
Good Luck
Broman