We are almost 80% sold, of which over 80% of those buyers are owner
occupied. The common areas are finished and so are all of the units. The
developer is in a healthy cash position. This creates stable prices and a
feeling of “safety” to many of the people who are purchasing there.
That’s probably a significant reason WHY it’s selling!

Getting back
to the great deal… if you put an offer in for new construction/rehabbed
buildings under 20% below list, odds are they will not accept your offer. Of
course it’s ok to start there as long as you keep your expectations in
check regarding the final price. There’s a reason many of these builders
are holding out on their prices, they can’t go any lower.

Simply put- any
builder in their right mind will give the project back to the bank before they
come to the closing table w/ a check, period. Now, for those who really want
the steal; caveat emptor (buyer beware). If you do find a distressed property that you like make sure to do your
homework!

Issues such as back due monthly assessments and unfinished common
areas can come back to wrap themselves in the form of a big (and costly) gift. Great
deals can be found in these buildings but remember that their value takes
longer to return as well.

By keeping your expectations in check, you can push
the builder to the edge of profit and still be comfortable purchasing a home
you love in a building that’s not riddled with short sales and
foreclosures.