preconstruction?

What is the deal with buying a house preconstruction? Are there still closing costs? Is the price listed the final price or do you have to pay more for the construction?
TIA

Re: preconstruction?

Yes, there are still closing costs and usually the price of the house is very ummm "bare bones". For example - it will not include high end appliances, tiled backsplashes, hardwood floors, & will have bottom of the line cabinetry / countertops in the kitchen.

For the most part, if you want a lot of the nicer things in your house, it will be an "upgrade" which usually translates into $$$$$$. That's where the builders get you & make a lot of their $$$$$$!

Re: preconstruction?

Re: preconstruction?

Message edited 1/17/2007 8:50:46 AM.

Re: preconstruction?

we bought preconstruction in a high rise building - usually iin high rise you get a better deal by buying earlier

we had to pay 10% at contract and then 5% 4 moths later- all sat in escrow and got a nice interest check back at closing

we paid for one upgrade - and had to pay for that at contract time - we could have had that adjust the purchase price of the unit but we did not do it. - we'll just keep the recept for the sale of the condo later on

we used wells fargo for our mortgage because they give free rate locks for 9 months if you get an adjustable rate mortgage - just have to give a 1% deposit on the mortgage that is applied to our closing costs - and we were able to drop the mortgage rate 60 days before closing because rates fell but the rate would not go up