What To Watch Out For Buying Your Dream Home In the Carolinas
We're all very well aware that the housing markets everywhere have been in a free fall tumble!
Some markets have been hit harder than others. North Carolina and South Carolina did not experience the hyper-growth of Arizona, California and Florida. They grew at a steadier, even pace. Consequently, real estate in the Carolina's has not seen the drastic price corrections of those areas. The resort areas like Hilton Head, Myrtle Beach and Wilmington have probably seen the biggest price corrections in the Carolina's. Especilly if you bought a condominium.
The wild speculation and "flipping" of properties to make a cool $100,00 overnight, prevalent at the height of the market in 2005, has stopped.
However, something else has all but stopped also, construction of new and existing projects!
This has now created a very treacherous situation for people who have already bought in planned communities, or are thinking of doing so.
I can't tell you when the market will be at its lowest point or when it will comeback, no one can.
However, I can tell you what you must watch out for!
Because of the real estate slowdown, many communities for the age groups of 50 and over, have either not been finished or not been started.
The lure of most of these communities is their amenity rich environments. They have gyms, golf courses, restaurants, walking trails, pools, tennis courts, health spas, clubhouses, etc. They're based on creating a resort, country club atmosphere.
In today's housing downturn, many of these communities haven't even finished the infrastructure of roads, water and sewer, lighting, paving, sidewalks and drainage, let alone the luxurious amenities they promised buyers.
So…..What to do?
Well, there are several things you must do. First of all, research the financial strength of your developer. I don't care how big they are. I want to know how liquid they are. How many projects are they building at once? Will they be able to get through an economic downturn and finish your community?
I don't even care what their track record is, because in an economic downturn, even the best of them walk away if they have to.
One way to make sure your community gets finished is to find out when the developer is allowed to use buyer's deposits. Also, and most important, find out if performance bonds have been posted and for what amounts. These bonds guarantee completion of work in the amount of the bond.
Ask the developer for a schedule of completing the infrastructure and amenities in the community, and see if it's reasonable or not. Find out how they will be maintained after completion.
Today is a time when you must do extreme due diligence to protect your investment. Make sure you talk to the local residents.
I wouldn't want to see you end up owning a beautiful lot in North Carolina or South Carolina overgrown with weeds, because the developer has never finished what they promised!
Read "28 Things You Must Know When Choosing A Planned Community", for more insider tips to protect your investment.
Have you already had a bad experience with a developer? Find out what options you have. Click the "comments" button below and share your story.
