Seattle is undergoing an extraordinary condominium construction renaissance with up to 49 new mid- and high-rise buildings proposed by 2010 adding over 10,000 housing units. Realistically, not all will be built but many will which will provide homeowners and investors incredible pre-construction presale opportunities.
Generally the presale process is composed of four distinct phases - Reservation, Examination/Contract, Construction and Closing. Though some developers are utilizing a lottery process.
Reservation -A reservation is the initial offering to the public. The developer will provide preliminary floor plans, renderings and pricing. A deposit is required which can range from $10,000 to 10% of the purchase price.
Examination/Contract - During this phase the developer will provide a public offering statement with final renderings, pricing, by-laws, convenants and so forth. If the buyer elects to purchase, the reservation will be converted to a purchase & sale contract.
Construction - The developer begins physical construction of the project.
Closing - Upon completion of the project, the transaction will close similar to any other real estate closing. The loan will be funded, the buyer will pay the remainder of the down payment (if any) and do a walk-through.
For more in-depth information about the presale process, continue reading the full article at Seattle Condos And Lofts.
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