My Articles | About Us | Contact Us | Advertise With Us | Search   
 
News, Tips & Offers delivered to your inbox

ABOUT US | VIEW ALL FEATURED ARTICLES | VIEW ALL TOPICS | VIEW ALL REGIONS | DM MOBILE | DM BLOG

Pre-Construction Condos: How the Process Works Illinois

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

Local Companies

Wells Fargo Reverse Mortgages
312-919-4749
511 W North Ave
Chicago, IL
AAA Reverse Mortgage Specialists, Inc.
815-893-7324
PO Box 631
Spring Grove, IL
Fox Valley Mortgage
630-347-6321
11291 Devon Lane
Huntley, IL
Advanced Mortgage
(309) 676-1334
416 Ne Saint Mark Ct Ste 201
Peoria, IL
Alliance First Mortgage
(309) 687-5050
3622 N Knoxville Ave
Peoria, IL
Wells Fargo Financial Illinois, Inc
(309) 688-9405
4517 Rockwood
Peoria, IL
Integrity Mortgage Services, Inc.
(309) 692-2840
3020 W. Willow Knolls Drive
Peoria, IL
OPEN MORTGAGE LLC
815-690-8000
15130 S RT 59
PLAINFIELD, IL
Eagle Mortgage Brokerage Inc
(309) 686-7676
2020 W War Memorial Dr Ste 303
Peoria, IL
American Mortgage Lending Inc
(309) 688-5568
3709 N Sheridan Rd Apt B
Peoria, IL

provided by: 

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.

Published on July 17, 2007

Read full article at realestate.com

Featured Local Company

Wells Fargo Reverse Mortgages

312-919-4749
511 W North Ave
Chicago, IL
Read more about Pre-Construction Condos: How the Process Works

Regional Articles
- Pre-Construction Condos: How the Process Works Addison IL
- Pre-Construction Condos: How the Process Works Algonquin IL
- Pre-Construction Condos: How the Process Works Alsip IL
- Pre-Construction Condos: How the Process Works Alton IL
- Pre-Construction Condos: How the Process Works Arlington Heights IL
- Pre-Construction Condos: How the Process Works Aurora IL
- Pre-Construction Condos: How the Process Works Barrington IL
- Pre-Construction Condos: How the Process Works Bartlett IL
- Pre-Construction Condos: How the Process Works Batavia IL
- Pre-Construction Condos: How the Process Works Belleville IL
- Pre-Construction Condos: How the Process Works Bellwood IL
- Pre-Construction Condos: How the Process Works Belvidere IL
- Pre-Construction Condos: How the Process Works Bensenville IL
- Pre-Construction Condos: How the Process Works Berwyn IL
- Pre-Construction Condos: How the Process Works Bloomingdale IL
- Pre-Construction Condos: How the Process Works Bloomington IL
- Pre-Construction Condos: How the Process Works Blue Island IL
- Pre-Construction Condos: How the Process Works Bolingbrook IL
- Pre-Construction Condos: How the Process Works Bourbonnais IL
- Pre-Construction Condos: How the Process Works Bridgeview IL
- Pre-Construction Condos: How the Process Works Buffalo Grove IL
- Pre-Construction Condos: How the Process Works Calumet City IL
- Pre-Construction Condos: How the Process Works Carbondale IL
- Pre-Construction Condos: How the Process Works Carol Stream IL
- Pre-Construction Condos: How the Process Works Carpentersville IL
- Pre-Construction Condos: How the Process Works Champaign IL
- Pre-Construction Condos: How the Process Works Chicago Heights IL
- Pre-Construction Condos: How the Process Works Chicago IL
- Pre-Construction Condos: How the Process Works Cicero IL
- Pre-Construction Condos: How the Process Works Clarendon Hills IL
- Pre-Construction Condos: How the Process Works Collinsville IL
- Pre-Construction Condos: How the Process Works Country Club Hills IL
- Pre-Construction Condos: How the Process Works Crete IL
- Pre-Construction Condos: How the Process Works Crystal Lake IL
- Pre-Construction Condos: How the Process Works Danville IL
- Pre-Construction Condos: How the Process Works Decatur IL
- Pre-Construction Condos: How the Process Works Deerfield IL
- Pre-Construction Condos: How the Process Works Dekalb IL
- Pre-Construction Condos: How the Process Works Des Plaines IL
- Pre-Construction Condos: How the Process Works Dolton IL
- Pre-Construction Condos: How the Process Works Downers Grove IL
- Pre-Construction Condos: How the Process Works East Moline IL
- Pre-Construction Condos: How the Process Works East Peoria IL
- Pre-Construction Condos: How the Process Works East Saint Louis IL
- Pre-Construction Condos: How the Process Works Edwardsville IL
- Pre-Construction Condos: How the Process Works Effingham IL
- Pre-Construction Condos: How the Process Works Elgin IL
- Pre-Construction Condos: How the Process Works Elk Grove Village IL
- Pre-Construction Condos: How the Process Works Elmhurst IL
- Pre-Construction Condos: How the Process Works Elmwood Park IL
- Pre-Construction Condos: How the Process Works Evanston IL
- Pre-Construction Condos: How the Process Works Evergreen Park IL
- Pre-Construction Condos: How the Process Works Fairview Heights IL
- Pre-Construction Condos: How the Process Works Franklin Park IL
- Pre-Construction Condos: How the Process Works Freeport IL
- Pre-Construction Condos: How the Process Works Galesburg IL
- Pre-Construction Condos: How the Process Works Glen Ellyn IL
- Pre-Construction Condos: How the Process Works Glendale Heights IL
- Pre-Construction Condos: How the Process Works Glenview IL
- Pre-Construction Condos: How the Process Works Godfrey IL
- Pre-Construction Condos: How the Process Works Granite City IL
- Pre-Construction Condos: How the Process Works Grayslake IL
- Pre-Construction Condos: How the Process Works Gurnee IL
- Pre-Construction Condos: How the Process Works Harvey IL
- Pre-Construction Condos: How the Process Works Harwood Heights IL
- Pre-Construction Condos: How the Process Works Hazel Crest IL
- Pre-Construction Condos: How the Process Works Highland Park IL
- Pre-Construction Condos: How the Process Works Hinsdale IL
- Pre-Construction Condos: How the Process Works Homewood IL
- Pre-Construction Condos: How the Process Works Jacksonville IL
- Pre-Construction Condos: How the Process Works Joliet IL
- Pre-Construction Condos: How the Process Works Kankakee IL
- Pre-Construction Condos: How the Process Works Kewanee IL
- Pre-Construction Condos: How the Process Works La Grange IL
- Pre-Construction Condos: How the Process Works Lake Bluff IL
- Pre-Construction Condos: How the Process Works Lake Villa IL
- Pre-Construction Condos: How the Process Works Lake Zurich IL
- Pre-Construction Condos: How the Process Works Lansing IL
- Pre-Construction Condos: How the Process Works Lemont IL
- Pre-Construction Condos: How the Process Works Libertyville IL
- Pre-Construction Condos: How the Process Works Lisle IL
- Pre-Construction Condos: How the Process Works Lockport IL
- Pre-Construction Condos: How the Process Works Lombard IL
- Pre-Construction Condos: How the Process Works Loves Park IL
- Pre-Construction Condos: How the Process Works Machesney Park IL
- Pre-Construction Condos: How the Process Works Matteson IL
- Pre-Construction Condos: How the Process Works Mattoon IL
- Pre-Construction Condos: How the Process Works Maywood IL
- Pre-Construction Condos: How the Process Works Mchenry IL
- Pre-Construction Condos: How the Process Works Melrose Park IL
- Pre-Construction Condos: How the Process Works Midlothian IL
- Pre-Construction Condos: How the Process Works Mokena IL
- Pre-Construction Condos: How the Process Works Moline IL
- Pre-Construction Condos: How the Process Works Morris IL
- Pre-Construction Condos: How the Process Works Morton Grove IL
- Pre-Construction Condos: How the Process Works Morton IL
- Pre-Construction Condos: How the Process Works Mount Prospect IL
- Pre-Construction Condos: How the Process Works Mundelein IL
- Pre-Construction Condos: How the Process Works Murphysboro IL
- Pre-Construction Condos: How the Process Works Naperville IL
- Pre-Construction Condos: How the Process Works New Lenox IL
- Pre-Construction Condos: How the Process Works Niles IL
- Pre-Construction Condos: How the Process Works Normal IL
- Pre-Construction Condos: How the Process Works North Chicago IL
- Pre-Construction Condos: How the Process Works Northbrook IL
- Pre-Construction Condos: How the Process Works O Fallon IL
- Pre-Construction Condos: How the Process Works Oak Forest IL
- Pre-Construction Condos: How the Process Works Oak Lawn IL
- Pre-Construction Condos: How the Process Works Oak Park IL
- Pre-Construction Condos: How the Process Works Orland Park IL
- Pre-Construction Condos: How the Process Works Palatine IL
- Pre-Construction Condos: How the Process Works Palos Hills IL
- Pre-Construction Condos: How the Process Works Park Forest IL
- Pre-Construction Condos: How the Process Works Park Ridge IL
- Pre-Construction Condos: How the Process Works Pekin IL
- Pre-Construction Condos: How the Process Works Peoria IL
- Pre-Construction Condos: How the Process Works Plainfield IL
- Pre-Construction Condos: How the Process Works Prospect Heights IL
- Pre-Construction Condos: How the Process Works Quincy IL
- Pre-Construction Condos: How the Process Works Riverdale IL
- Pre-Construction Condos: How the Process Works Rochelle IL
- Pre-Construction Condos: How the Process Works Rock Falls IL
- Pre-Construction Condos: How the Process Works Rock Island IL
- Pre-Construction Condos: How the Process Works Rockford IL
- Pre-Construction Condos: How the Process Works Rolling Meadows IL
- Pre-Construction Condos: How the Process Works Romeoville IL
- Pre-Construction Condos: How the Process Works Roscoe IL
- Pre-Construction Condos: How the Process Works Roselle IL
- Pre-Construction Condos: How the Process Works Round Lake IL
- Pre-Construction Condos: How the Process Works Saint Charles IL
- Pre-Construction Condos: How the Process Works Schaumburg IL
- Pre-Construction Condos: How the Process Works Skokie IL
- Pre-Construction Condos: How the Process Works South Elgin IL
- Pre-Construction Condos: How the Process Works South Holland IL
- Pre-Construction Condos: How the Process Works Springfield IL
- Pre-Construction Condos: How the Process Works Streamwood IL
- Pre-Construction Condos: How the Process Works Streator IL
- Pre-Construction Condos: How the Process Works Sycamore IL
- Pre-Construction Condos: How the Process Works Taylorville IL
- Pre-Construction Condos: How the Process Works Tinley Park IL
- Pre-Construction Condos: How the Process Works Urbana IL
- Pre-Construction Condos: How the Process Works Vernon Hills IL
- Pre-Construction Condos: How the Process Works Villa Park IL
- Pre-Construction Condos: How the Process Works Waukegan IL
- Pre-Construction Condos: How the Process Works West Chicago IL
- Pre-Construction Condos: How the Process Works Westchester IL
- Pre-Construction Condos: How the Process Works Westmont IL
- Pre-Construction Condos: How the Process Works Wheaton IL
- Pre-Construction Condos: How the Process Works Wheeling IL
- Pre-Construction Condos: How the Process Works Wilmette IL
- Pre-Construction Condos: How the Process Works Wood Dale IL
- Pre-Construction Condos: How the Process Works Woodridge IL
- Pre-Construction Condos: How the Process Works Woodstock IL
- Pre-Construction Condos: How the Process Works Zion IL
Related Local Events
REIT School: Analyst Training in Real Estate Securities
Dates: 6/24/2009 - 6/24/2009
Location: Hyatt Regency O'Hare
Rosemont, IL
View Details
Illinois Real Estate Development & Finance
Dates: 6/18/2009 - 6/18/2009
Location: Renaissance Chicago Downtown
Chicago, IL
View Details
Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin
Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History
Articles.DirectoryM.com | Search | About Us | Contact Us | Mobile | Blog | En Español
Copyright © BET Information Systems, Inc. All rights reserved.