Are you torn between the excitement of a brand‑new condo and the certainty of getting keys in a few weeks? In South Boston, both routes can work well, but each asks you to balance timing, deposits, and risk differently. You want clarity, not guesswork, so you can choose the path that fits your budget and move‑in plan. In this guide, you’ll learn how pre‑construction and resale stack up on timelines, deposits, contingencies, finishes, warranties, pricing, and financing in South Boston. Let’s dive in.
South Boston condo landscape
South Boston is a high‑demand neighborhood with strong transit access, proximity to downtown and the Seaport, and a steady pipeline of new condo projects. You’ll see everything from renovated triple‑deckers to modern mid‑rise buildings. That mix shapes your options for customization, timeline, and budgeting. It also affects how lenders underwrite condo projects and how condo associations are set up under Massachusetts law.
Timeline: move‑in timing
Pre‑construction
- Typical schedule: about 12 to 36 months from contract to completion for small to mid‑size projects. Delays can happen due to permitting, supply chains, weather, or financing.
- What this means for you: you need flexibility. Plan for interim housing or a rent‑back if you have a home to sell. Lenders may limit how long a rate can be locked.
- What to verify: estimated completion, remedies if the project is delayed, and whether staged closings or interim occupancy are planned.
Resale
- Typical schedule: about 30 to 60 days from purchase and sale to closing, depending on your financing and attorney review.
- What this means for you: timing is more predictable, which helps if you are coordinating a sale, lease end, or school year.
- What to verify: standard contingency timelines and any seller needs that could shift the closing date.
Deposits and escrow
Pre‑construction
- Deposit structure: often staged deposits totaling about 10 to 20 percent, with payments due at milestones like signing, foundation, or framing.
- Refundability: contracts are specific. Some deposits become non‑refundable after certain stages, and assignment rights (reselling your contract) may be limited or require a fee.
- Escrow: deposits are typically held in a trust or escrow account. Confirm who holds the funds and under what conditions you can get them back.
Resale
- Deposit structure: commonly about 5 to 10 percent total, held in escrow by a broker or attorney.
- Protections: if you include inspection and financing contingencies, your deposit can be refundable under those terms.
- Verify: deposit amount, escrow agent, and exactly when funds would be at risk.
Contingencies and inspections
Pre‑construction
- Inspections: you usually do not get a full home inspection during construction. Instead, you have a final walkthrough and a punch‑list process near closing.
- Financing: some developers allow a financing contingency, but lenders may hold final approval until the project reaches key milestones or meets investor guidelines.
- Assignment: rules vary. Some projects prohibit assignment, others allow it with approvals or fees.
- Verify: inspection rights, walkthrough procedures, punch‑list timelines, financing contingency language, and assignment rules.
Resale
- Inspections: you can order a home inspection and, if applicable, test for lead paint, radon, or other environmental issues. Buyers often have 7 to 14 days for inspections and negotiations.
- Financing and appraisal: common and more straightforward given clear comparable sales.
- Verify: which inspections are allowed, expectations for repairs, and contingency dates.
Finishes and upgrades
Pre‑construction
- Choices: you often select from packages for cabinets, counters, flooring, and fixtures. Early buyers typically get the most options and upgrade paths.
- Pricing: upgrade costs, allowances, and deadlines are outlined in the contract. Changes after deadlines usually are not allowed.
- Verify: selection deadlines, included standards versus paid upgrades, and whether allowances cover all materials and installation.
Resale
- Condition is known: what you see is what you buy. You can plan renovations on your timeline and budget after closing.
- Verify: permits for past work, age and condition of systems, and recent updates.
Warranties and protections
Pre‑construction
- Coverage: developers often provide written warranties. It is common to see shorter coverage for finishes and systems and longer protection for major structural items, but terms vary by project.
- Process: know exactly how to submit a claim, who manages it, and deadlines for reporting issues.
- Verify: what is covered or excluded, who administers the warranty, and whether structural coverage is insurance‑backed.
Resale
- Limited seller warranties: in most cases you rely on inspections and disclosures. You can consider a third‑party home warranty at closing.
- Verify: transferable manufacturer or installer warranties on systems or appliances.
Pricing and value drivers
Pre‑construction
- Pricing strategy: early presales can be positioned as value relative to finished phases, but they carry development and timing risk. Prices can adjust during construction based on market conditions.
- Comparables: value can be harder to assess before delivery since the best comparable sales may not exist yet.
- Carrying costs: watch for initial condo fee adjustments at turnover and the possibility of early special assessments if budgets shift.
Resale
- Pricing clarity: list prices reflect current comparable sales and appraisals are more straightforward.
- Negotiation: you may have leverage based on inspection findings or days on market.
South Boston drivers
- Proximity to transit, the Seaport, views, parking, and building amenities can move prices meaningfully. Association reserves and assessments also affect long‑term value.
Financing and project approval
- Lenders review condo project eligibility. Newly formed or small projects might not meet conventional investor standards right away, which can require a larger down payment or a portfolio loan.
- If you are buying pre‑construction, speak with your lender early about project eligibility and rate‑lock options tied to the projected delivery date.
- Your loan terms, including private mortgage insurance, depend on down payment and lender policy.
Certificates, title, and closing
- Developers can typically close units only after required documents are recorded and certificates of occupancy are issued. Many buildings close in phases.
- Ask whether interim occupancy is allowed before a certificate of occupancy is in place and what fees apply if that option exists.
- Title insurance is standard. Make sure your attorney confirms the legal description of common areas and any phased components of the condominium.
Governance and condo documents
- For both options, review the master deed, declaration, bylaws, rules, budget, and insurance summary. Understand reserving, maintenance responsibilities, and rental rules.
- For pre‑construction, review developer control provisions, the initial budget, and reserve assumptions. Confirm how long the developer can control the association.
- For resale, request recent budgets, meeting minutes, any reserve study, pending litigation, known special assessments, and delinquency rates.
Decision guide: which path fits you
Consider pre‑construction if:
- You have flexible timing for move‑in over the next 12 to 36 months.
- You want to pick finishes and enjoy modern systems and layouts.
- You are comfortable with higher staged deposits and project risk.
- You can navigate financing if the project is not yet approved by conventional investors.
- You see potential upside if the market strengthens during construction.
Consider resale if:
- You need predictable occupancy in the near term.
- You want full inspection rights and clearer disclosure of condition.
- You prefer established association budgets and comparable sales.
- You want conventional financing options with fewer project variables.
Common buyer profiles
- On a fixed schedule: resale usually fits best.
- Seeking new finishes with less wait: look at recently built resales or newly completed buildings.
- Investor mindset and comfortable with risk: pre‑construction can work if you plan for deposits, timelines, and alternative financing.
Due diligence checklist
Documents and verifications
- Purchase and sale agreement with the complete deposit schedule and refund triggers.
- Condominium documents: master deed, declaration, bylaws, rules, budget, insurance, and any reserve study or pro forma.
- Developer disclosures: construction timeline, walkthrough and punch‑list process, warranty terms, and standard finishes versus upgrades with deadlines.
- Project history: learn about the developer’s prior projects and warranty performance.
- Financing: written confirmation from your lender on project eligibility and your pre‑approval terms.
- Assignment policy: whether you can assign the contract before closing and what it costs.
- Permits and certificate of occupancy status.
- Association items for resale: budgets, minutes, special assessments, rental policies, and any litigation.
- Parking, storage, utilities, and what the condo fee includes.
Budget planning
- Potential interim housing if pre‑construction is delayed.
- Finish upgrades and change orders.
- Early association expenses at turnover and the possibility of special assessments.
How to move forward
- Engage an experienced real estate attorney and lender before you sign anything for a pre‑construction unit.
- For pre‑construction, confirm deposit handling, refund language, warranty coverage, and the selection timeline for finishes.
- For resale, schedule inspections quickly, review association documents, and align your closing with your financing milestones.
Ready to compare live South Boston options, tour new releases, or review condo documents together? Connect with John Dolan for local insight, developer‑level guidance, and a plan that matches your timing and budget. Schedule a consultation or get your instant home valuation.
FAQs
What is the typical pre‑construction timeline in South Boston?
- Expect about 12 to 36 months from contract to delivery, with possible delays tied to permits, supply chains, and phased closings.
How do deposits differ for new builds versus resale condos?
- Pre‑construction often requires staged deposits totaling about 10 to 20 percent, while resale deposits are usually about 5 to 10 percent held in escrow.
Can I inspect a pre‑construction condo before closing?
- You typically do not do a full home inspection during construction, but you will have a final walkthrough and a punch‑list process before closing.
What warranties come with a new South Boston condo?
- Developers usually provide written warranties that cover finishes and systems for a limited term and may offer longer structural coverage, with exact terms defined in the contract.
Will financing be harder for a newly built condo project?
- It can be. Lenders review project eligibility, so some new or small projects may require a larger down payment or portfolio loan until they meet investor standards.
What condo documents should I review before buying?
- Review the master deed, declaration, bylaws, rules, budget, insurance, reserve information, and for resales the recent minutes, special assessments, and any litigation.
