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Here are some of the steps I take when advising clients on a new built.
1. 𝘙𝘦𝘴𝘦𝘢𝘳𝘤𝘩 𝘵𝘩𝘦 𝘥𝘦𝘷𝘦𝘭𝘰𝘱𝘦𝘳: Find out who is behind the project. I have a list of my favorite well researched developers and those who I have flagged due to faulty projects and shoddy work. Is this a seasoned developer or are they new? What other projects have they worked on etc.⠀
2. 𝘙𝘦𝘴𝘢𝘭𝘦 𝘔𝘢𝘳𝘬𝘦𝘵: Check the developers past projects in the resale market. Is there a high turnover rate? Did the homeowners try to get out soon after they bought? How is the project selling years later?⠀
3. 𝘐𝘯𝘵𝘦𝘳𝘯𝘢𝘭 𝘵𝘦𝘢𝘮: Is this developer outsourcing the construction team? How many projects is the construction team working on at once? If it's more than one project that can be a red flag.⠀
4. 𝘋𝘦𝘭𝘢𝘺𝘴: Has there been any delays? If so, find out why - I sometimes get one answer from the broker and another from one of the construction workers. If that’s the case it's a red flag.
5. 𝘔𝘢𝘵𝘦𝘳𝘪𝘢𝘭𝘴: If you are able to visit the project during the hard hat phase assess what kind of materials they are using. Does the project feel well built? Is it an organized construction site or does it look like a mess?⠀
6. 𝘈𝘵𝘵𝘰𝘳𝘯𝘦𝘺𝘴: If I have not heard or worked with a developer I turn to my trusted attorneys to provide more insight. Attorneys hold a wealth of knowledge and they often know when a building or developer is having financial issues amongst others issues.
7. 𝘛𝘩𝘦 𝘥𝘦𝘷𝘪𝘭 𝘪𝘴 𝘪𝘯 𝘵𝘩𝘦 𝘥𝘦𝘵𝘢𝘪𝘭𝘴: Don’t overlook the small details. Are the cabinets aligned, do they open and close with ease, are the floors aligned, are there gaps anywhere?⠀I once showed a brand new $3.5m property to a buyer who was ready to submit an offer but after I spent 20 minutes inside I started noticing where the developer cut corners. He tried masking this by beautifully staging the place but my keen eye did not miss what I consider to be red flags.
Keep in mind if there are visible issues on the surface there are probably bigger issues behind the walls.⠀I know I said I only had 5 steps but I realized my process is a bit longer 🙂 If you’re considering buying a new built and have any questions please do not hesitate reach out.⠀