Tips For Purchasing Pre-Construction Property In Seattle

Seattle is famous for having a strong real estate market. However, with countless of new projects that are coming up daily, choosing the right preconstruction property to purchase can be overwhelming

Most investors opt for preconstruction townhomes and condos for two major reasons: the appreciation potential of the property as an investment and the desire of possessing and living in a new property. Most people view preconstruction properties as being a more affordable alternative for acquiring a detached house.

When purchasing pre-construction properties, investors should deliberate on the capital appreciation potential and cash flow of rental fee in their calculations. If what you want is cash flow, then a pre-construction house that will be complete in one year is better than one that will be ready in the next 3 to 4 years. This is because you will start earning profits sooner from a property that is close to completion than one that is in its initial opening and building event. Other additional tips to keep in mind are:

Choose the right builder

Selecting the best builder is an essential step in acquiring a pre-construction property in Seattle. Be sure to check the reputation of the builder from the past projects that he/she has handled. Confirm the experience level in the field and on whether the builder has any pending lawsuits filed against them. It is best to walk around the projects the builder has worked on and inquire from the homeowners regarding their experience with him/her. The quality of the construction and a compatible relationship matters a lot.

Look for the best financier

Different lenders will offer varying mortgage conditions. Therefore, it is best to compare different financiers in order to choose one that suits your needs. You can opt for commercial lenders or get the best hard money lenders in Maryland. Your builder may also try to convince you to use his/her approved financier. However, you have a right to choose your own preferred lender.

Consider the closing costs

Most of the closing costs are usually estimates. Therefore, they have the potential to escalate as the possession date approaches. Therefore, be considerate to adjustments and remove or get a cap on some items in advance. This is because you will get large charges that are suddenly needed for mortgage discharge fees, deposit verification fees, development fees and charges for hooking up electricity meters and gas. Ensure that you set aside at least 1.5% of the purchase price or get personal loans from private lenders to cater for these expenses.

Sign an agreement of sale and purchase. Signing this agreement will take the property off the market and you will have a guarantee of the terms and price at the purchase time. You will be required to have a deposit cheque. Be sure to read the contract as it will spell out the selling conditions as well as what you will be getting.

Crowd funding in the modern sense of real estate investment is basically about investing in properties by pooling funds from people and institutions that want to earn on property deals.