My post on 235 Van Buren’s concrete raised some questions about the viability of purchasing a condo “in the raw.” Mortgages aside, under what circumstances would a developer go for this sort of thing?
I put the question to Alan D. Lev, president of Belgravia Group and the Home Builders Association of Greater Chicago.
“It’s not without its pitfalls,” he told me today. “We’ve allowed it sometimes, but really only on higher-end, really expensive units.”
Buying raw causes headaches for developers and lenders: appraising the value of the unit, getting a new construction permit – not to mention the wear and tear on a newly built property caused by the interior contractors.
It’s not unheard of, says Lev, and it’s certainly reasonable to expect credit for the developer for any construction elements declined by the buyer. But the bottom line is that it complicates the already complex process of purchasing a home.
I purchased a condo in a gut rehab. I begged the developer to sell it to me just gutted and outfitted with basic plumbing (since the whole building shares it). There are a lot of issues, especially with permits, inspections and certificate of occupancy . Not to mention banking, loans, and price.