How it Started
The beginning of this story goes back to Spring of 2019. My husband and I were ready to buy and had started the process of casually looking. We looked all around DC and even in Alexandria. We looked at new condos, old row homes, and everything in between. Based on our price point, lifestyle, and must-haves, we began to realize that a condo would be the best option for us. We also realized that we would like to stay in SE DC. As luck would have it, a brand new condo building was in the works right down the street from our current rental. It seemed like the perfect fit. We went to the sales office as soon as sales started and signed a purchase agreement. What ensued was a two year journey that ultimately ended with us backing out of the agreement and continuing to rent.
Before I spill the tea on the transaction (or lack there of,) I think it’s important to give more background about why we chose to buy pre-construction.
Why New Construction?
Low Maintenance
As a lover of old homes, friends and family were shocked when I told them we had committed to new construction. As much as I love old homes, I am also practical. Home is very much my sanctuary and I didn’t want to spend weekends doing home projects. I know the surprise expenses that come with old homes. I wanted to spend money on fun things when we moved like furniture and art, not a major appliance. In this home, everything was not only brand new but under warranty. I also didn’t feel prepared for the overall responsibilities of maintaining a single family home like yard work, security systems, etc.
Easier Transaction
Buying new construction also seemed like an good way to avoid DC’s ultra competitive market. I knew the excessive amount of time and emotional toll it would take to secure a home the more traditional route. The thought of spending every weekend running to homes and crafting offers made my head spin. By getting in the building early, we were able to pick our floor plan and our finishes. I knew exactly how much it was going to cost. There were no bidding wars, escalation clauses, or days of anxious waiting. I even preferred the builder’s contract which simply gave you two weeks to do your due diligence and back out if needed. The entire process was a breeze and actually fun.
The time between meeting at the sales office and securing our unit was only a few weeks. By early April 2019, we had finalized our purchase agreement, done a hardhat tour of the property, and put down a 5% deposit. The bank would hold our deposit and we could apply it towards closing. To be clear, we didn’t make an additional payments while we waited for the unit to deliver. The building was very much a shell at this point but we felt lucky just to have SOMETHING in DC. We believed in the vision and were excited to for our projected move in date that Fall.
Better Deal
By committing so early on in the project, we got a great deal. When buildings like this first come online, they usually offer lower prices. This makes sense because buyers are taking a certain amount of risk by not actually seeing the unit before they commit. As the building started to come together, prices started to go up. Units similar to ours were going for tens of thousands of dollars more than what we were paying. Again, we felt so lucky to have secured a condo and were willing to wait based on the price we paid.
Next week I will share more about all the things we learned during the almost two years we waited for the project to deliver.
