Many people may not realize what their options are when trying to sell a condo that they purchased during a pre-construction sale. How would people know until now, when the buildings in Channelside, Harbor Island, and Downtown Tampa are all starting their closings. There’s no telling how many people invested in the big Real Estate boom, purchasing units expecting to make big bucks in the Tampa Real Estate Market.
We are now going to experience foreclosures and defaulting of contracts in the areas that became over saturated in condo construction. Our blogsite has been receiving hits over the past month with searches pertaining to “how to get out of a real estate contract” and “are condos good investments”. This suggests that people are trying to get out of their contracts, finding out they can’t, and then defaulting.
It was customary to put down 10% of a purchase price for a pre-construction project. So figure 300K on the low end=$30K. Are people really willing to loose that much money or will they take the chance that they can re-sell for a profit or break even?
Recently, my Real Estate partner Michelle Jordan was contacted by a former co-worker who is in such a position. He purchased a pre-construction condo in the Channelside area due to be completed sometime this year.
It was purchased for investment purposes and he was curious what his options were when it comes time to sell. This particular “new project” (which will have 392 units in it) still has 40 plus units for sale by the builder.
When he decides to sell, he will more than likely be competing directly with the builder and will have to price it competitively. This could mean selling it for less than his original purchase price. At this point, it’s possible he may be out the money he put down as well as the closing costs. He also has to keep in mind that all the other investor/owners who close on their units may be be putting theirs up for sale as well.
With at least a years worth of inventory and the influx of other new condos coming to the market, along with with a shortage of buyers to go around, owners will have to carefully weigh their options. Keep it and move in, sell or rent it. Either way, it’s more important than ever to consultant a professional.
For questions regarding the Tampa Real Estate Market, please feel free to contact Realtors, Michelle Jordan (813) 695-5677 or Rae Anna Conforti (813) 784-7744. Prudential Tropical Realty
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