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Pricing New Construction

Started by will
almost 18 years ago
Posts: 480
Member since: Dec 2007
Discussion about
It is usually the case that sposors/sellers will not negotiate on prices for new construction. Is the primary reason the publicly available nature of similarly situated units, all available at roughly the same time, and the general desire not to make any individual or across the board adjustments? Adjustments in a downward direction might be particularly problematic for existing purchasers. I suppose it is not that uncommon for market price increases or bidding wars. Just was curious if there is anything else at work, or other motivations for not negotiating, other than the obvious.
Response by northsider
almost 18 years ago
Posts: 28
Member since: Oct 2007

A lot of developers will not lower the price outright. It has been my personal experience that they are flexible for anywhere between 2%-4% of the sales price so long as you are without a broker. The way that they can lower the price without angering others who have already purchased is by giving you the discount as "credit at closing", so when the unit sells it is recorded at its original price and then they credit certain closing costs which usually add up to between 2 and 4 % of the transactions (i.e. sponsor attorney fees, title transfer taxes, manager's unit etc.) Especially in this market, I think developers are desperate for whatever they can get.

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