Buying a new construction condominium

[bigkdc]

one thing i would look for is to see if past buildings have had tons of resales within the 1st year after opening. if the resales are at a discount then that is a horrible sign as it means something has likely gone wrong in the building. another thing you can do is just call a broker in that city and ask them some questions about that building vs others. i have always found that brokers love to talk shop and will tell you a lot and you may get some good/bad anecdotes

[ekartash]

when buying a pre construction you dont get to see all the ameneties being built until after you move in. if the developer promises a pool, lounge, fitness center, and this is in the offering plan, what happens if it is never built? can this happen? after you close, you own the apartment. what happens if they are unable to get the permits, or run out of money?

[Front_Porch]

Buyers should be generally aware that a drawing of an apartment is not an apartment . . . in the same way that a personal ad is not a date.

You are seeing a gussied-up presentation of what you are going to get. This doesn't mean you won't like what you get, it just means you need to be aware of what specific exaggerations might take place.

Specifically, in the new buildings coming out, I have seen two.

1) Overexaggeration of common areas. We are not seeing, as the poster feared above, a promise of a pool that does not become a pool. However, I did see a recent building which promised a reasonably large common roof space . . . while a visit to said roof confirmed that that area was crowded with mechanicals! caveat emptor.

2) A complete fantasy of what will be out the window. Partly this is because they don't change the renderings for each unit in a new building, so that cute picture of the tops of the skyline and watertowers is also used to market the second floor. Unfortunately, sometimes the sky's not the limit.

ali r.
{downtown broker}

[muziqgod]

On Saturday, we looked at a new construction/conversion and decided to go back the next day to proceed with a particular unit. Credit was checked, applications and paperwork all printed and we received the offering plan. I had intended on speaking with a lawyer today to get this moving right away. However, after flipping through the plan before going to bed, I noticed that the floor plan had slightly different dimensions (smaller, of course) and the architect's measurements were from the outside wall, not halfway through the wall like we had been told. While our measurements weren't that far off, a few of the 1 bedrooms had a bit more of a discrepency (all in the living/dining room). From everything I've read, it isn't uncommon to have the final measurements even more off, but this made us feel slightly uneasy and that the place was already shrinking.

Is it common for the dimensions in an offering plan to be different than the real estate firm's floorplans that they give you when showing a unit or listed on their site?

The other thing that keeps bugging us is currently we rent a 1 bedroom that is just under 700 sq ft in a "luxury" (non-luxury) building and have our floor plan which pretty much matches up to the interior wall dimensions. This new unit is just under 800 sq ft, but the bedroom is the same sq footage and the living room/dining room is also the same sq footage. It has an open kitchen which adds some useable space, but we currently have a long hallway. What I am getting at is that if it is 100 sq ft more and all of the liveable space is identical but the new building is measuring to the outside wall, we started feeling like we wouldn't exactly have any more square footage.

We're 1st home buyers, so certainly any advice or comments are appreciated! But from comments I've read here, if something doesn't feel quite right....

--Stefanie

[Peteynyc1]

^^^ I went thru a similar situation when I bought my pre-con. The floor plans that were shown in the sales office were actually quite different than what was shown in the offering plan, but the offering plan was in fact much more favorable. I was not even sure if there was a door between the bedroom and the living room based on what was shown on the website and materials given out from the sales office. When doing measurements for window treatments, I was told by the sales office directly to use the offering plan dimensions. When I finally did move in I was happy to find that the dimensions from the offering plan were just 1 inch off, and in my favor in one width. I found the rooms to be larger than I envisioned when I actually entered the rooms of my one bedroom (787 sq ft). I think an optimal layout has so much to do with it. The fact I have many windows all around gives the feeling of it being alot bigger as well and should definitely be taken into consideration.

[bigkdc]

On Saturday, we looked ....
--Stefanie

As mentioned earlier, I would do as much research as you can on the developers. Find out their previous buildings and which brokers had experience with the original sales (preferable representing buyers) and call them. They will talk to you and it will be easy to tell how the brokers feel about the situation.

[muziqgod]

As mentioned earlier, I would do as much research as you can on the developers.

That's another thing. I went to do research on the developer and there wasn't anything. I checked here, curbed, real deal, etc. Nothing on google came up about them except for this building (and their own site which wasn't easy to find - and was under construction). It's one of the big firms selling the conversion, but when we went on sunday and I asked more about the developer I was told that they are relatively new as a unified developer but have all worked on great projects. I asked if there was anything notable since I read all the sites and he said he could shoot me an email with some (didn't receive).

I guess it's pretty clear that we should go with our gut...

Thanks for the feedback!

[lofter1]

Now that you're moving on you can tell us who this questionable developer is ...

[muziqgod]

Now that you're moving on you can tell us who this questionable developer is ...

Anybody hear of Integrated Capital?

I'm guessing this is their website since it seems to be the only company with that name looks to be remotely related to real estate and not investments/capital: www.integcap.com
I'm not bashing them or the project, I was just surprised to find nothing else about them beyond the building we looked at. And the onsite agent even said "we only work with reputable developers and turn down more projects than we accept." I guess it's the little things that add up and create doubts!

[Front_Porch]

There are eight entities called "Integrated Capital" that are registered with the New York Department of State, so it's difficult to tell if that's the right one or not.

ali r.
{downtown broker}

[Front_Porch]

Since there is so much backing-and-forthing on the timing of new construction purchases, I would like to remind buyers of two factors that they would face in any building:

1) move-ins typically need to be scheduled. While it is possible, if you are doing a handshake deal, to move in before you close, there could be potential legal problems and it is NOT recommended.

When buyers hear that, they sometimes think, "oh, I'll move in the minute I close and get my keys."

Just be aware your building may feel differently -- it may not allow moves on weekends, or may need you to schedule the use of its freight elevators.

Check in with your building a couple of weeks before you want to move in to make sure that you can actually do it then.

2) Some people like to refinish their floors. While modern design sensibilities aren't like the "bowling alley" floors of the '80s, you still might end up sanding (which takes a day); staining (which takes a day); and putting down up to three protective coats of poly-urethane (which take a day each to dry).

If you are planning on treating your floors, allow yourself a week to do it, before you wreck the finish with your cat and your couch.

ali r.
{downtown broker}

[sevenrivera]

I'm looking at purchasing a new construction (in particular, I'm thinking about the Loft 14 apartments at 135 w. 14th) and the developer is The Vintage Group. I've been doing some homework on them, but there are several companies in various fields called the Vintage Group. Has anyone had any experiences with them (apparently they have been around since 1992)?

[bigkdc]

^^^ Don't know them but it is also important to figure out the names of the principles and check their history as developers (never know if someone has done bad stuff under a difference corporate name)

[Front_Porch]

Sevenrivera --

First, Bigkdc is right, you absolutely should check out the principals in a development company as well as the development company. You can do this using a reputable broker, but at your price point ($3MM) you may feel broker's replies are somewhat distorted by thoughts of a fat commission.

I would therefore recommend hiring a reputable local real estate lawyer now, even before you make an offer. For around $1,500, you will have an advocate for your needs who can give you the straight skinny on all the local players. That lawyer can then assist you through closing -- wherever you buy.

Second, there's an entire thread on these 14th Street lofts:

http://wirednewyork.com/forum/showthread.php?t=9829

You might especially enjoy poster "seven" (no relation, I assume) who has some comments on leaks.

Regards,

ali r.
{downtown broker}

[seven]

135 West 14th is actually next door from my building, and it looks SOOOO much better than 133 West 14th. I'm closed now and once i will fix that stupid flashing i probably will be happy, but 135 is just a much nicer building