We receive a lot of inquiries from buyers in regards to purchasing a new construction condo in Boston. Many prospective buyers wonder if buying a condo pre-construction is a wise financial decision. Each opportunity is unique and, because each opportunity is unique, the risks and rewards are different for each new development.
In a competitive market such as today’s real estate market where a larger pool of buyers exist compared with the amount of inventory on the market, it can be challenging and frustrating to buy a resale condo. Many of our buyers put in offers on many homes and condos prior to actually winning and purchasing. It’s quite common in the Greater Boston real estate market for a Seller to receive multiple offers within the first week of marketing a home.
Since the real estate market is so competitive, new construction developments in areas such as South Boston, East Boston, Somerville and Cambridge can offer an opportunity for a buyer to purchase during the pre-sale marketing phase of the development. What we mean by pre-sale is the period in time during which a developer will offer buyers to purchase prior to the official marketing launch.
This opportunity is good for a few different reasons…
- Buyers have the ability to select which floorplan works best for their lifestyle
- Little to no competition to purchase
- Purchase prior to the general market knowing about the opportunity to purchase and potentially purchase at a discount
Developers offer pre-sale purchasing opportunities for a variety of reasons…
- Prior to going to the open market, developers like to have a certain percentage of the units under agreement to showcase the developments desirability.
- Developers like to implement a “rolling-launch” marketing strategy. This means that from the first sale through the last condo sold at a new development, the developer will typically try and implement multiple price increases during the pre-sale time frame. In order to create a rolling launch, the developer will sometimes price inventory slightly below perceived market value in order to sell the first phase of units
We believe that for certain buyers, these pre-construction opportunities could be the right fit for prospective buyers in this competitive real estate marketplace. Contact The Gollinger Team of Coldwell Banker for additional information on upcoming developments.