Forum Archive: Posts by: bklyn11238

I wonder if you can help to offer some advice. My husband and I have been looking for an apartment for the last 18 months. We finally found something that we feel fits all of our criteria, except it’s a new condo development which is currently less than 20% sold.
 
We have read Brownstoner and various press over the last year or so – and are educated about the risks of purchasing a new construction home – however we are still considering it.  The layout, space, and location really fit our needs.

What is worrying us is:
1)      The development is just under 20% in contract. There are no sales records posted online yet as closings will begin in December. We are concerned that if we are early to buy, that prices will drop significantly for future sales.
2)      The developer will be releasing another identical complex of buildings in the summer just behind these buildings. (Another 50 odd units.) This is on a less desirable block so we assume the prices will be lower and we’re afraid the extra inventory will flood the market.
3) We will have trouble finding a non-FHA loan that will allow us to close with less than 50% under contract.
4) New Construction stigma? We used to have a strong aversion to new constructions but have since come around a bit. Do you think the attitudes towards new constructions are changing?
 
If any new development owners are free to chat, we would really appreciate some advice.  
 
Do you regret having purchased early?
Did the prices/values for the other units in your building decrease after you bought?
Any other drawbacks?
 
We started out thinking we would buy in a pre-war or even purchase a 2 family brownstone with a rental but, we’re looking for a lot of space to start a family and can’t afford anything in the neighborhood where we want to live.
 
Thanks in advance for your advice!

So, after losing a bid for a condo and being priced out of another one in the same complex (which is still for sale but holding out for $50k more to cover their renovations) I am at a loss. I love the layout and location of this one condo complex (and the HOA fees can’t be beat). In this market, I was thinking that people may be simply holding off on selling their places, waiting to see when the upturn begins. It is likely that other units in the condo complex may be considering selling, but are waiting for the right moment and may be afraid there are no buyers out there for them.

Would it be completely insane, and creepy to make a little flyer and say “If you are considering selling your condo, please be in touch. We are a couple pre-approved for a mortgage and are seriously interested in purchasing in your complex this fall. We’ve lived in the neighborhood for years and are waiting for the right opportunity to join your community. Please be in touch if you’d like more information (insert email address and phone #).”

Not sure if there’s a way to track down the main contact information for the HOA board, which might be another way to go about this and find out. Otherwise, we’d be slipping flyers under doors.

I know, not quite the usual way to go about it – but given the economic climate – we could be waiting for a long, long time to get into one of these condos.

What do you think?

Despite reading in the Times that prices are down it seems to me that the decline in sale price hasn’t really effected the Clinton Hill / Ft Greene market as drastically. I recently put a bid on a condo that went into competition and sold for 25k over asking price. At a second place, the sellers are holding out for a price that is 50k over what they paid for their home in 2008. Aside from brand new luxury Condos which, I am uninterested in, there seems to be a lack of inventory and asking prices are not, “bottom of the market”. In the 400k to 550k range, you’d think there would be more opportunity for 2 bedrooms. I was hoping to get a steal in a buyer’s market but find myself competing over scraps at prices above my means.

So, what kind of market are we in?

After speaking with my lender, they suggested that I only get pre-approved for the amount of the offer I wish to make. I did this, and then found out there was a competing offer. I’d like to now make an offer which is a bit higher than my pre-approval amount.

Will showing a pre-approval amount $18k lower than the offer I am submitting hurt me?

What do people usually do in this situation? We were advised not to get approved for above the asking price as it would hurt us in negotiations.

We are also interested in offering on another property if this one falls through. The other property would be quite a bit more expensive than the current pre-approval amount. The difference between the offer and the pre-approval letter would be $45k.

Do people just get a new pre-approval letter for each property they want to bid on? My lender says no, and that ‘everyone knows’ a pre-approval amount doesn’t necessarily reflect the max of what you can afford – and you can just explain to the sellers agent that you have the savings to cover the difference between your pre-approved amount and the asking price.

Your help please! I don’t want to lose this apartment!