Frequently Asked Questions
Common questions, uncommon response.
At First Chase, we understand our customers’ needs to have a range of services at their disposal throughout the life of the relationship. So, much like a concierge at one of our premier properties, we work hard to keep a long list of dependable people on call to make your experience seamless — and to help maximize your returns.
Q: What is “Pre-construction Real Estate”?
A: Pre-construction sales are those real estate transactions that are initiated prior to a particular project being built. Below is a Q&A that will help explain the process and define the benefits:
Q:What are the benefits of buying in the pre-construction phase?
A: Pre-Construction prices are generally lower than those of existing properties so you not only have great growth potential, but you may also experience a huge equity gain upon signing of the contract.
Q: Why do developers discount condo unit prices for Pre-Construction buyers?
A: Pre-construction prices are discounted so that buyers have an incentive to purchase something they cannot see, touch or feel. Sky and paper are harder to sell than concrete and steel, so the developers may discount prices to attract early buyers.
Q: Why do developers sell Pre-Construction rather than just build and sell at retail?
A: Developers sell pre-construction (even at a lower price) because they usually need pre-sales in order to secure financing. In fact, lenders may require that 50% - 80% of a project be sold prior to ground-breaking.
Q: Can I use retirement funds/accounts to invest in Pre-Construction?
A: The answer is likely yes . A self-directed IRA is one way to invest in real estate by using retirement dollars.However, you will want to consult a retirement/tax professional.