Pre-construction homes available in 55-and-over Beechwood community in Moriches
New units, which range from $649,000 to over $800,000, are additions to an established 55-and-over community of 350 homes. Credit: Beechwood / Country Pointe Preserve Yaphank
Buying a home pre-construction is like shopping from a catalog: Choose among several available models, make the payment, await delivery.
Embroiled in bidding wars, house hunters across Long Island often find themselves frustrated; but pre-construction sales, though not without their own challenges, may present an alternate route for some.
"You at least get a house," said RCG Mortgage owner and founder Andrew Russell. "I say that because, some people want to buy a house, and they just can never get an accepted offer because the market is so crazy."
In Moriches, Beechwood Organization founder Michael Dubb is in the middle of the presale period for a group of condominiums called Beechwood at the Waterways.
"When you're selling presale, you are appealing to a smaller group of buyers, who have the imagination and the technological expertise to use the digital tools and all of the tools we give them to understand what's coming," said Dubb, who founded the Beechwood Organization in the mid-1980s and now runs the company with his son.
This current project features four models. The new units, which range from $649,000 to over $800,000, are additions to an established 55-and-over community of 350 homes built by a different builder, Dubb said.
"There's a difference between when somebody puts their home up for sale, and buying in a condominium," Dubb said. "A condominium has an offering plan, and the offering plan is basically the bible."
In the "bible" are a budget for expenses, rules and regulations of the condominium and pricing. According to Dubb, if the builder wants to change the pricing — as will happen after presales — the attorney general's office must sign off on an amended plan.
Pre-construction prices are generally the lowest a consumer will see, Dubb said.
"Prices sometimes, over the course of a job, can go up as much as 20, 25%," he said.
Banks are more comfortable funding construction when they see sales on the books, Dubb said. But for buyers, it can be hard to imagine the finished product.
Dubb said his company facilitates visits to Beechwood Organization's other job sites to see furnished models — and sometimes to speak with residents living on other sites or in other sections.
"In our sales offices, when we're pre-selling, we put samples out of everything," Dubb said.
This might include countertops, plumbing fixtures and flooring, he said.
As a mortgage professional, though, Russell notes there are complications involved with a pre-construction sale. A mortgage is not finalized until the home closes, and some related documentation expires after four months, he said. This means a client might qualify for a mortgage upon deciding to buy, but has to qualify again when the house is ready.
When working with new construction clients, Russell said he stresses the "don't do's."
"Like, don't change your job, don't get a car without telling us, don't forget to pay your bills," he said. "Don't change a thing. And if you're going to change anything, reach out to us first."
Arielle Dollinger joined Newsday as a staff reporter in 2022. Previously, she covered local and national news as a freelancer for The New York Times, Newsday and other outlets.
