Sheldon Salnick

Hi Home Buyer,

Based on the information you have provided, I believe the builder is open to negotiating with you. My first suggestion is to obtain a realtor to represent you who knows the area and has experience in new construction. I would also suggest that you develop a negotiation strategy with the realtor respresenting you before you put in an offer.

In the current market, where loans are more difficult to obtain, an all cash offer with a closing in two weeks should allow for a maximum price reduction. You do have to keep in mind that using this strategy puts you at risk should you not be able to get a mortgage after you close so it is critical for you to do your due diligence upfront with an excellent mortgage broker and also discuss an alternative course of action with the realtor. In addition, I would make it a point of having an independent appraisal done as well.

The realtor should also compare new construction costs per square foot in the area to help you determine what price you should offer. Note, basements, finishes and mouldings do play a role in the cost of the home construction. So if these are exceptional, be prepared to not get as big a discount but I would probably start with 10% below the asking price once all the information is obtained.

Good luck, remeber you are in a buyer's market and this developer, based on the information outlined should be real motivated. - Tue Jul 15 2008, 13:03

Yes, there is definitely a difference between a garden unit and a gound floor unit. A gound floor unit is not below grade and therefore has better light . A garden apartment is more apt to have issues with heating/air conditioning. Humidity can be a problem. In addition, resale is typically better with a ground floor unit vs a garden.

If given a choice between a garden and a ground floor unit you are probably better off buying the ground floor one if concerned about resale. - Tue Apr 22 2008, 10:39

Hi Jason,

Before you purchase a garden apartment, I would suggest you consider a number of the apartment"s features that will ultimately determine if you can more readily resell the unit. Ceiling heights for a gardens play a big role in resale. When given a choice, a ten foot ceiling garden unit feels a lot less like a garden apartment then one with eight foot ceilings.

The amount of light and the size/ number of windows should also be considered. In addition, where is the entry way? Is it part of the main entrance? And another critical consideration should be the need for a good heating and air conditioning system. Depending on how below grade, the condo could have a problem with humidity in the summer and heat during the winter. I strongly recommend that you have a knoweledgeable inspector who specializes in heating and air conditioning check out the property before you purchase the unit. - Tue Apr 22 2008, 10:11

2520 Lakeview is slated to be a premier building and the east views of the building will be the most spectacular in the city. The finishes are also awesome. With the dollar down to all time lows, this could be a great investment for a person living in London. I would however check out the ramifications of buying in this building as an investor if that is your intention.

Note, it is highly unlikely that your investment will be cash flow positive and that in three or four years the initial assessments will be the same as quoted. Also, keep in mind that you should anticipate 2% of the purchase price for real estate taxes. And do not forget, some newer buildings in the city have instituted rules that allow only a certain number of tenants. There are risks but if you want to live in the building, I believe this building will ultimately be a winner.

General Electirc, one of the premier United States conglomerates is providing financing for this building so you know there has been some real thought about developing and construction. - Sat Apr 12 2008, 14:44

Sounds like a great idea but before you consider fractional shares with others, I would first check out the condo docs as well as the original property report. Keep in mind, this approach to owning a condo may be considered a "no no" based on rules and regulations of the association.

Also, keep in mind that condominium buildings have move in and move out fees and some fees are rather high. Many condo boards review the purchaser's contract and interview the perspective owner. Your idea of fractional ownership may also be a problem for a mortgage company so I believe you may have some major obstacles to overcome. - Sat Apr 12 2008, 14:26