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Pre-Construction Condos: How the Process Works for downtown Austin condos

Perry  Henderson Austin REALTOR®: Real Estate Brokerage in Austin, TX

When you buy a home that's not built yet, there can be setbacks before you move in. Here are steps to buying a pre-construction condo

Pre-construction condos are units that have been proposed by a developer, but have not yet been built. When you purchase a pre-construction unit, you are putting money down before construction begins.

Buying a pre-construction condominium can be a great opportunity, but you should proceed with caution. Because you are buying into something that does not yet exist, there is greater potential for unforeseen problems and setbacks before you move into your home. By understanding the risks and planning carefully, you can avoid complications and come out a winner.

Advantages

The main advantage to buying into a condominium development before construction starts is that you often get a lower price than if you buy when construction is complete. The reason for this is that developers typically need pre-construction sales of 50 percent to 90 percent of the units in a development before they can borrow funds to begin construction.

Pre-construction condos can also get you in on the ground floor of an investment that will appreciate. The market value of pre-construction units generally increases during the one to three years it takes to build a development, so your unit may be worth more than you've paid for it before you set foot in the place. In addition, you can often choose from a variety of finishes and flooring options, allowing you to customize your home.

How the process works

There are several steps to buying a pre-construction condo. They can vary from developer to developer, but the basic components are:

1. Reservation agreement
You give a deposit (usually between $5,000 and $10,000) to reserve the unit and set the price (although the builder can reserve the right to change the price in the contract). The deposit is held in escrow and you can cancel the agreement at any time with a full refund.

2. Condominium documents
When a development is approved for construction, the developer submits condominium documents (including budgets, association rules, unit descriptions, materials and other important information) for approval by the state. Once the documents are approved, they are sent to you for review. Read them carefully to make sure that you will be comfortable living by the association rules.

3. Right of rescission
Once you receive the condominium documents, you have a 15-day period to decide whether you would like to proceed into a binding contract. If you don't, you can exercise your right of rescission and withdraw with a full refund.

4. Hard contract
If you don't withdraw, you'll provide the balance of the required down payment, usually 15 to 20 percent of the purchase price, and sign a binding contract agreeing to purchase the condominium. You generally have seven days after that to cancel. This is your last chance to walk away with no penalty.

5. Closing
When construction is nearly finished, the developer will issue you a Certificate of Occupancy. A closing date is set when you will hand over the balance of the purchase price and sign the final documents. If all goes according to plan, your closing will coincide with your move-in date, and you will be ready to enjoy your new home.

SXSW This week in Austin Texas

Alan & Michele Kirkpatrick: Real Estate Agent in Round Rock, TX

SXSW in Austin Texas

The A-List

A week long of A-List Artists in Film and Music. Austins version of Sundance and Woodstock all rolled into a week long celebration downtown.

Tift Merritt

Want to see Movie Stars? Just head downtown you will probably run into a few.

Enjoy some great food and even attend the chocolate festival. Yummy!

Want to look at the calendar of events? Click the picture below and check it out.

Austin Texas Real Estate

904 West Ave, Austin, TX 78703 - Mixed use condo conversion

Perry  Henderson Austin REALTOR®: Real Estate Brokerage in Austin, TX

904 West Ave, Austin, TX 78703 is a 28 unit mixed unit property with the following options for a savvy buyer. The seller is asking $3.7 but depending on the terms, I'd offer between $3.4 and $3.9 mil.

1. Buy and Hold. Proforma rents at 30K per mth.

2. Covert to 26 residential and 3 commercial properties

3. Buy and convert to commercial condos

Row Row Row your boat.

Alan & Michele Kirkpatrick: Real Estate Agent in Round Rock, TX

Join the Austin Texas Rowing Club.

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It is great Excercise and great fun! Lake Austin is a great place to Learn. Outdoor living is a big part of living in Austin Texas.

Heart of Texas Regatta 2006

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Rowing is a great way to get or stay in shape, because the rowing motion involves more muscle groups than almost any other sport (wrestling and cross country skiing are possible exceptions). That means you burn more calories and create more lean muscle mass in a shorter amount of time. Rowing is a low impact sport and easy on the joints.

So give it a try! It.s Great fun! Row Row Row your boat.

Austin Texas Real Estate

Austin Profiles: 2nd Street District in Downtown Austin

Ki Gray - Austin Real Estate: Real Estate Agent in Austin, TX
The 2nd Street District in downtown Austin has grown rapidly, and Austin is reaping the benefits. Besides the nightlife bar scene of 6th Street, and a smattering of shops on Congress Avenue, downtown Austin lacked a hub for shopping, eating, and entertainment that the 2nd Street District is now providing with a vengeance.

Cashing in on Austinites’ love for being outdoors, and its close proximity to the Zilker hike and bike trail, the 2nd Street District is pedestrian oriented, with wide sidewalks, and open air store fronts and outdoor seating at many of the restaurants.

Locals and tourists alike will find a business that appeals to them. Established local eateries, such as Austin Java Café and Jo’s Coffee, mix and mingle with a few fun chains and other local establishments, to suit any taste bud. People-watching from an outside table provides limitless entertainment before heading to the next shop.

Several fine home furnishings and décor shops line the street. Austin’s branch of Design Within Reach carries licensed mid-century classics, while Finch is filled with beautiful homey items for the Dwell Magazine lover. IF + D brings flooring, furniture, and more from international designers such as Tord Bjoonte, as well as equally beautiful pieces from local creative craftsmen Brian David Johnson, Holly Everett, and Fisterra Studios.

The emergence of more downtown attractions has affected parts of the Austin real estate market, which provide proximity to downtown. The first part of the market affected is the downtown Austin condos which have been popping up in recent years. Also several downtown Austin neighborhoods like Clarksville and Barton Hills which are in biking distance to downtown have also seen more interest from buyers due to their proximity to downtown.

Austin was recently listed as the 7th most dog friendly city in the country by Men’s Health magazine, so man’s best friend wasn’t left out from the 2nd Street District’s design. For the past two years, 30 of Austin’s best architects, builders, and designers gather on 2nd street for what’s become known as Barkitecture. The talented group comes together to create innovative, and amazingly designed, dog houses that are auctioned off, with proceeds going to local animal advocacy groups. Also, the Lofty Dog store caters to those canines living the downtown lifestyle.

Clothing boutiques dot the 2nd Street District. Many shops, like Girl Next Door and Shiki Style carry women’s fashion from up and coming clothing designers. Cowboy Cool puts a western twist on primarily contemporary men’s clothes. After a day of shopping in the sun, it’s nice to wind down at Sage Salon, or Milk and Honey Spa, with a relaxing couples massage.

With newly built condominium complexes springing up downtown, and more on the way, the 2nd Street District can now be just steps from the front door. Block 21, at the corner of Lavaca and 2nd Street, will soon house the new W Hotel and Residences, the new Austin City Limits taping studio, as well as additional retail space, which will surely only add to the excitement and continuing evolution of Austin’s 2nd Street District.

Ki helps buyers looking for homes in Austin real estate market (mostly central). Buyers who are looking for a home in Austin can start looking for homes on their site using the Austin MLS. Ki also posts regular updates on the Austin market on his Austin real estate blog.