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Understanding Pre Construction condo and Fees
People are our considering buying preconstruction condos because housing prices are increasing. Preconstruction condos are those units in real estate projects that are under construction. Resale triplex for sale are those housing units, which people are using to live in older buildings and now they want to sell it.
A preconstruction fee structure can be a little more complicated to understand. In this article, we will discuss about common deposits and fees, which buyers need to know before finalizing the purchase deal.
Deposits and down payments
In most of the cases, preconstruction condos require a higher amount as down payment, this is in comparison with the resale condos. If you are purchasing a resale unit, then the down payment norm is 5%. On the other hand, while purchasing a preconstruction unit, you need to pay 20% or more in down payment.
This may be difficult for many buyers to deposit 20% in down payment. This is the reason real estate developers have different offers to facilitate the buying process. You need to understand their deposit structure. They design the instalment plan to simplify the down payment. A typical deposit structure may look like this.
- $ 5000 as initial payment
- 5% of the remaining amount within 30 days
- Another 5% in 90 days
- Next 5% you have to deposit within 180 days
- Last 5% at the time of occupancy
This payment structure will facilitate a buyer to arrange the down payment. If you want to buy your dream house in near future, then it is advised to consult a real estate agent. He will let you know about limited offers, triplex for saleand prelaunch offers that you will find even friendlier.
Closing costs
Closing costs are those expenses that buyers have to pay. These expenses are levied between the inaugural offer and the day of closing. These costs include land transfer taxes, inspection fees, legal fees and others fees as well. It is advised for a prospective buyer to save additional 5% of the purchase price as reserve fund to help cover these costs. In case of a preconstruction condo, this percentage may get even higher.
While buying a new condo, you may pay additional fees, including;
- Development fees
- New constructed home warranty plan
- Assignment fees
- Occupancy fees
Itis advised to take the help of a lawyer during cooling off period. Your lawyer will check the agreement of purchase and sale for incurring costs. It is good to use a real estate lawyer who has experience in the same field.
A preconstruction fee structure can be a little more complicated to understand. In this article, we will discuss about common deposits and fees, which buyers need to know before finalizing the purchase deal.
Deposits and down payments
In most of the cases, preconstruction condos require a higher amount as down payment, this is in comparison with the resale condos. If you are purchasing a resale unit, then the down payment norm is 5%. On the other hand, while purchasing a preconstruction unit, you need to pay 20% or more in down payment.
This may be difficult for many buyers to deposit 20% in down payment. This is the reason real estate developers have different offers to facilitate the buying process. You need to understand their deposit structure. They design the instalment plan to simplify the down payment. A typical deposit structure may look like this.
- $ 5000 as initial payment
- 5% of the remaining amount within 30 days
- Another 5% in 90 days
- Next 5% you have to deposit within 180 days
- Last 5% at the time of occupancy
This payment structure will facilitate a buyer to arrange the down payment. If you want to buy your dream house in near future, then it is advised to consult a real estate agent. He will let you know about limited offers, triplex for saleand prelaunch offers that you will find even friendlier.
Closing costs
Closing costs are those expenses that buyers have to pay. These expenses are levied between the inaugural offer and the day of closing. These costs include land transfer taxes, inspection fees, legal fees and others fees as well. It is advised for a prospective buyer to save additional 5% of the purchase price as reserve fund to help cover these costs. In case of a preconstruction condo, this percentage may get even higher.
While buying a new condo, you may pay additional fees, including;
- Development fees
- New constructed home warranty plan
- Assignment fees
- Occupancy fees
Itis advised to take the help of a lawyer during cooling off period. Your lawyer will check the agreement of purchase and sale for incurring costs. It is good to use a real estate lawyer who has experience in the same field.
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