Pre-construction properties refer to real estate, such as condos, homes, and other properties that have not yet been constructed but are available for purchase. Typically, developers sell these properties, and they have already been planned or broken ground.
Although it may seem counterintuitive to buy a property before it is built, purchasing a pre-construction property offers several advantages over buying existing or brand-new real estate. One of these advantages is that pre-construction properties often have a lower initial value, which can lead to a higher return on investment upon completion. Additionally, pre-construction real estate has strong potential for appreciation, allowing investors to benefit from market appreciation while the property is being built.
Depending on the location, a pre-construction property may provide an early and valuable foothold in a potentially lucrative future market, such as a developing oceanfront area or fast-growing downtown district. Homebuyers can also enjoy the opportunity to start fresh with a brand-new, untouched residence.
However, purchasing a pre-construction property comes with legal and financial risks, regardless of the benefits or real estate goals. Therefore, it is crucial to have an experienced real estate lawyer to assist you before making your acquisition.
The Possible Pitfalls Of Pre-Construction Properties
When purchasing a pre-construction property, negotiations will likely take place, covering important matters such as purchase price, payment terms, and escrow. These negotiations may also involve discussing upgrades or additions to the property, which can affect the overall cost and timeline for closing. Your real estate lawyer from Azure Brio Associates will have the necessary experience and knowledge to guide you through these negotiations, as they are a critical stage in the transaction. They will work diligently to protect your interests, identifying potential liabilities and strategies to minimize them. If needed, they will also prepare, review, and negotiate the contract to ensure you have all the information necessary to make informed decisions and protect your interests.
Timing is an important factor in all real estate deals, and it becomes even more crucial when dealing with Pre-construction Properties due to the possibility of construction delays that could impact your plans. It is important to consider this possibility during negotiations and in the contract, and our attorneys will provide necessary safeguards and streamlined communication with builders to ensure a smooth process.
In addition, it is essential to conduct a thorough background check on the developer or builder to assess their reliability and reputation. This includes checking for any previous lawsuits, code violations, or other concerning issues. At Azure Brio Associates, our trusted attorneys will work to minimize the risk of entering into a contract with potential legal or structural issues, and provide a clear understanding of the liabilities and benefits of the available options.