If you have had your eye on new construction, now might be the best time to buy. New construction, gut renovations, townhouses turned condos, all of these projects takes months if not years to complete. As we all know, the market has shifted drastically over the last few months leaving developers in a much different market than the one they started in. Here are some opportunities I see for buyers:
Better Financing
Read the remarks on new construction listings. It seems like every seller is offering some kind of incentive. Incentives are ranging from access to lower rates, to help with closing. These offers will only become more competitive the longer the property sits on the market.
Better Product
Renovating or building a property takes a long time. Developers are in a sticky situation because many of them designed and built properties with 2021 buyers in mind. Many developers started projects a year ago, designed a $1M properties, and will now need to bring those same properties to market at a lower price to remain competitive. Alternatively, they may come to market at the price they envisioned but the property will likely sit on the market. This is where buyers have the upper hand. Buyers now have access to a high-end products that need to be off-loaded at a lower price.
Better Choices
If you are interested in a building with multiple units for sale, compare all of the units regardless of price. If the unit you like is over your budget, make an offer that aligns with your budget. With the shift in the market, more sellers are going to be willing to make a deal and you could end up with a premium unit for a bargain price.
Pictured: a new development in Petworth offering subsidized mortgages as low as 5%
