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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

That depends on many things.  In California, most condo projects end up in litigation.  When that happens it is hard to sell.  The upside is that the prices tend to go up as each new phase is released.  Many things must be considered in this purchase.  

Feb 04, 2020 09:00 AM
Rainer
317,275
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

$10000 without interest for maybe two years - to build in a year seems ambitious. A buyer might be able to secure the best view unit; but no deal. The developer knows which units have premium views and they will manipulate who gets those. Is it high rise? Might be some value in flying a drone to see what the proposed view might be... deal probably no

Feb 04, 2020 09:53 AM
Rainmaker
1,722,500
Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

There are usually bonuses but you never know if it will be worthwhile if they miss the completion date. You'll normally get the lowest price after like phase 1. I don't like the idea they've got 10K. What if you don't want to put that much down? 3% in my area is totally doable.

Feb 04, 2020 09:27 AM
Ambassador
2,570,322
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 Who is holding that $10K?  Use a real estate attorney to draft the paperwork.

Feb 04, 2020 04:42 PM
Rainmaker
5,571,826
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

completion 2021? be early in that mix.... secure a price and just wait.... you could sell the p/s and make money....in this market, new home prices can easily jump.... there's no inventory!!  I had a condo complex and raised the prices $10k after I had a deposit on each one...that first buyer had $100k in equity very fast!!!! the builder let me make the decisions and I ran with it....he built as fast as he could to close them!!!  LOL that was fun.

Feb 04, 2020 03:32 PM
Rainmaker
888,357
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Here on the coastal side of the Tampa region, pre-construction condo's are often sold three times before completion. Each delivering piece of the pie to the owner.

Feb 04, 2020 09:24 AM
Rainmaker
1,898,009
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I'd tell any clients that they need a legal advisor to look things over Peter Mohylsky, Beach Expert 

Feb 04, 2020 06:30 PM
Rainmaker
2,641,192
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Absolutely profitable providing the developer is reputable. You get location choice, pricing, boasting rights and the chance to watch your casa built!

Feb 04, 2020 02:09 PM
Rainmaker
5,582,491
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Peter,

I don't think there are deals available. And $10,000 is way too much.  A

Feb 04, 2020 12:38 PM
Rainmaker
849,550
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Sometimes. Many builders offer pre-construction deals to get projects kick started.

Feb 06, 2020 10:34 AM
Rainmaker
644,838
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Santa Clarita & Aliso Viejo

If I were 100% sure that I'd get the money back if I decided against buying it there would be no problem or concern.  It's like buying a lease option in which the buyer gets the home at today's price and if the price rises they buy but cancel if it drops.  Except there is no loss except interest.

Feb 05, 2020 07:31 PM
Rainmaker
6,603,283
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Your need to have a lot of confidence in the developer.

Feb 05, 2020 09:59 AM
Ambassador
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I have one that just put $11K down on a new place as well and sadly, because of our low inventory, they are left to buy new construction, even when they would prefer a resale. 

While buyers are doing this all over the map, I can't help but be reminded of those who lost in a BIG way with new construction in the 2008 recession.

Feb 04, 2020 08:04 PM