$900K & No Shower Door...What Gives!
About 15 months ago, a buyer (and friend) of mine put down a deposit for an 787 sq ft one bedroom, 1.5 bath apartment at The Link, an El-Ad Properties development (El-Ad is also the developer for the Plaza).
A week before the closing, we went in for the walk-through to find that the sinks were misaligned, the painting wasn't finished, two outlets weren't working, and there was a plethora of other small problems. When we walked into the bathroom, we noticed that there was no shower door or shower rod. We were told, "This line doesn't have them."
The sales office bathroom had a shower door! The website shows a shower with a shower door! The offering plan doesn't say anything about the "A" line NOT having a shower door. There ensued a week-long battle between both sides' attorneys about who was responsible for paying for the shower door. In the end, my client had to pay to have a shower door installed because the developer refused to pay for it.
As I visit more and more new developments, my eye has become trained to look for the tiniest details. Many new development bathrooms no longer include towel bars, toilet paper holders, or shower doors! More and more frequently, I am finding that developers are cutting these out of their apartments, most likely to cut construction costs and keep their price per square foot lower.
How ridiculous is it for someone to pay $1,150/sq ft (15 months ago!) for a "new luxury condo" and not have a shower door or even a shower rod!? Here are some tidbits I have noticed with clients buying new developments.
On the positive side, I was thrilled to go to Maison East and Rutherford Place today and see that they do actually have toilet paper holders and towel bars. Maison East actually includes the washer/dryers - not just a washer/dryer hook up.
So what is a buyer to do?
TOES SAYS:
1. When buying in a new development, your attorney will read the offering plan, but to be on the safe side - you should read it also!
2. If the sales office says the building will be ready in the early spring, assume they mean the late summer. I have yet to see a building be ready earlier than what buyers/brokers are told.
3. If you get to your walk-through and find that the apartment still has work that needs to be done, schedule a second walk-through to make sure everything on the "punch list" has been completed. Postpone your closing date until everything on the punch list is complete if you have the luxury of doing so. Hopefully by delaying the closing you will expedite the process of getting things done.
4. Consider buying one of the apartments that was used as a model.
5. Assume that the hallways, lobby, fitness center, roof deck, and any other amenities will be completed at least 6 months later than when the building says they will be completed.
6. When buying off of a floor plan for a building that is not even in the ground yet, assume that the common charges being quoted to you are lower than what they will end up being when you move in. It is in the developer's interest to low ball the projected budget for the building to make the common charges look attractive to potential buyers.
In general, I love new developments and after the "dust settles," so do my clients. Young Wall Streeters in particular don't want to deal with the hassles of a co-op and they don't want to gut renovate an existing apartment. They want a gorgeous, never-lived in product. When you move into an apartment that has been lived in, there will always be something that needs to be renovated or fixed. Since the elevators, lobby, and other amenities are brand spanking new in a new development, you wont have to worry about assessments or common charge increases for any major capital improvements any time soon; unless of course there was shoddy work done that demands a redo.
By going into a new development purchase with reasonable expectations and a checklist of things to keep an eye on, you will have a much better experience! Best of luck in your search!
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Comments (7)
I think something that I am trying to deal with on new development condos is coming up with all the details and items that the offering plan is vague. When I talked to the developer and broker they say "oh, there will be dimmer switches, or the doors to the rooms will be solid wood vs. hollow."
I never thought about the bathroom shower door, toilet paper holder, towel rack or closet doors.
Any ideas on items that should be specified?
I am going to try to have a list to put in a rider in the contract.
Posted by jt | March 16, 2007 10:23 AM
I think buyers are spoiled and shouldnt expect toilet paper holders, towel racks or shower doors with their hundreds of thousands of dollars! I mean, cmon now, you cant have it all! You know in Prague the toilet paper is like high school sandpaper and you have to pay a nickel to use a public toilet.
I also think the sky is green, the oceans are yellow, the sun is red, and that UrbanDigs doesnt know what hes talking about.
Posted by Noah | March 16, 2007 10:55 AM
I have to admit I've very attracted to new developments (for the very reasons stated here), but it seems very non-negotiable right now due to increasing demand and a LOT of potential headaches in year 1. (Construction, repairs, tax abatement scares, etc.) Supposedly and I don't know if it will remain true, you can make some bucks after the dust settles for all your heartache.
Posted by spaceboy | March 16, 2007 1:57 PM
Rutherford Place may have toilet paper holders and towel bars, but it does not have finished common areas throughout the majority of the building. The hallways are all concrete floors, unpainted walls and piles of two x fours sitting in the hallways. It's a joke.
Posted by Vonvon | March 16, 2007 6:43 PM
anyone know of a good contractor to install things like shower curtains, and toilet paper holders, closets etc?
Posted by chris | March 17, 2007 4:27 AM
I had customers who closed at the Link in January and have had nothing but problems with Elad-- broken bathroom tiles, no hot water, broken heaters, water damage to the floor-- and when management has been contacted to rectify these issues, they've been told anything from "that's not our top priority right now" to "we'll get to it eventually but we have issues finishing other apartments right now." !!!! It's worth pointing out that these problems have occurred due to the ongoing construction within the building. My take-away lesson here was try to negotiate as late a closing in a new construction bldg as possible, so that you might avoid many of these "growing pains" that come with moving into an active work in progress.
Posted by Jesse | March 17, 2007 7:27 PM
Does anyone have a recommendation on how to find someone reliable to hire as a walk through consultant so that the punch list is complete?
First time buyer in a new construction building.
Posted by Dan | September 11, 2007 4:10 PM