Thinking about buying a new condo? Read This...

Nothing says Caveat emptor like new construction, which is why doing your homework can make the difference between happily-ever-after and a short sale two years later.

Here are some things you should know if you're buying new:

You must have a mortgage contingency which is a clause in the contract allowing you to get your deposit back in the event you can not get financing.

Look into the reputation and body of work of the sponsor (developer).

Closing costs can mount up to thousands of dollars. In today's market buyers should not hesitate to ask the seller to contribute to those costs.

Negotiate, Negotiate, Negotiate. Ask for the moon and don't be surprised if you get it. There is a glut of new construction on the market and developers with heavy construction loans are trying anything to move property.

Make sure that the developer has sold close to or more than 50% of the apartments. With out that, you cant close and there is no guarantee that the project will ever sell out.

Its a great time to buy and a great time to get some deals on brand new construction but...Caveat Emptor!!!