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What does Pre-Construction mean?

What does Pre-Construction mean in real estate?

Introduction: What is Pre-Construction?

In the world of real estate, acquiring property in the pre-construction phase is a great opportunity to invest in an upcoming building project at a lower price than when construction is finished.

Buyers who purchase in the pre-construction phase are also the first to take advantage of any incentives offered by developers for being an early purchaser. These incentives can include options such as discounted prices, upgraded finishes, and upgrades on appliances.

When buying during pre-construction, it’s essential that your agent take you through all of the steps involved because there are many differences between purchasing a resale home and a new build.

There are three phases of any construction

If you’re looking to invest in real estate, it’s important that you understand the three phases of construction.

The second phase—the actual construction of the buildings—is where investors like you can offer funding on a construction loan basis. These loans will provide cash to contractors as they complete each stage of development, including purchasing materials; hiring subcontractors; and acquiring permits, inspections, bonds, titles, insurance policies and more. These are things that are needed before ongoing draws can be made from the loan to pay for labor costs and other expenses associated with completing each phase of construction.

The third phase

What is a pre-construction phase in Real Estate?

The pre-construction phase is the period of time when a developer sells units to buyers before the actual construction begins. The pre-construction phase is also referred to as “before ground-breaking” which means before construction has officially begun.

During this stage, many developers provide purchasers with floor plans and renderings of what the project will look like.

The most important factor in a pre-construction purchase is how much trust you place in the developer’s reputation for building high-quality homes and ensuring that your project will be completed in a timely fashion with minimal issues or delays.

Buying real estate in the Pre-Construction phase.

When buying real estate in the pre-construction phase, a builder will sell homes that are either almost built or under construction.

The process of purchasing pre-construction real estate can seem intimidating at first, but with the help of an experienced real estate agent, it doesn’t have to be.

Pre-Construction is a great time to get involved in real estate, and can be very advantageous.

If the thought of getting involved sounds daunting, don’t worry. Pre-Construction properties are a great way to get started in real estate investing due to multiple reasons:

  • Properties are available at a lower price.
  • You can add personal touches and make upgrades to your new home/property.
  • There is enough time to sell your current property and earn some extra income while searching for your dream home/property.
  • Investing in Pre-Construction gives you enough time to save up for the down payment, closing costs, etc., or even apply or refinance your mortgage, (if not already done).

Benefits of buying real estate in the Pre-Construction phase

For the savvy buyer, purchasing a home during the Pre-Construction phase comes with many benefits.

  • You are able to get involved before prices go up. In many cases, buyers who purchase early in the preconstruction phase are able to secure units at lower prices than those who purchase later on in the process.
  • You get to choose from the best available units. If you’re buying preconstruction you have a better shot at getting a unit that has the features and views you want, as opposed to buildings that may be more dated or have less desirable finishes.
  • You can choose floor plans that best suit your needs. This is one of the best advantages for a preconstruction buyer: you can shop around and find floor plans that fit your lifestyle—whether it’s an open concept living area or a larger master suite with a walk-in closet.
  • Additionally, you have time to customize things like your kitchen cabinets when you build new, so they’ll fit exactly how you want them to!

How to Buy pre-construction in Mexico

Buying a home can seem like an intimidating venture, but purchasing pre-construction in Mexico is a great way to get started.

In many cases, buying pre-construction means focusing on finding the right property before it’s built. This gives you access to asking all of those questions that will ensure that your property will be finished right and meet all of your needs.

Before diving into a Mexican real estate project use the help of a real estate agent, note that there are some things that we recommend checking out first.

They will help you find the perfect pre-construction property in one of the most popular places in Mexico: Riviera Maya.

Once you’ve found the ideal location for your new home, compare prices between different developers in town. We strongly recommend avoiding going with the first builder who wants to sell a house; instead do research online with your real estate until you’ve got a match.

Caribe Luxury Homes offer you a qualified and trained real estate agent to buy a pre-construction property in Riviera Maya

Caribe Luxury Homes real estate agents are available to assist you with any questions and help you buy a pre-construction property in Riviera Maya.

Our real estate agents are more than ready to assist you with your needs for pre-construction property. The real estate agents at Caribe Luxury Homes live in Playa del Carmen and have seen the development of many condominiums and houses throughout the region.

The Caribe Luxury Homes real estate team is here to guide you through the entire process of finding, reserving and closing on a pre-construction property in Riviera Maya Mexico.

Click here to read: Pre-Construction Purchase Agreements in Mexico: What You Need to Know

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