As a New York City real estate lawyer who has helped (and occasionally discouraged) hundreds of clients buy new condos over the past decade, I can tell you that purchasing new construction is riskier than buying an apartment in an established building.Risks range from obtaining a mortgage, to getting what you pay for, to closing on time, to the possibility of debilitating construction defects.
Buying a home is a complicated process, and buying new construction is both similar and different to existing homes. Some of the similarities regard the purchase process, while the differences can be found largely in negotiations, research on the builder, and looking towards the future for the new community neighborhood plans.
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Tips For Buying a New Construction Home. Many home buyers are unaware that the option of new construction home may available to them. It might be because they have seen the million dollar plus showcase new homes that they think the price is out of their reach or they might be thinking it is too much work and hassle to get the house setup in terms of selecting all the features.
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Buying "new construction" is a bit different from buying a previously-owned home. For one, because there is no previous homeowner, you don’t have to deal with a seller’s emotional tie to the property, which typically influences the negotiating process.
Buying Houses and Condominiums under Construction. You will usually need to put down a sizable deposit, perhaps up to 10% of the final price. Since you must wait for the home to be finished, that money is tied up for a longer time than with an existing home purchase. Weather delays and other project concerns can drag the process out,
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