Negotiation on condo deal - waive transfer tax vs concessions
Started by 212CondoDude
almost 17 years ago
Posts: 54
Member since: Jan 2009
Discussion about
This is for a NEW DEVELOPMENT so the buyer is technically supposed to pay the transfer tax. My question is: If there is work to be done in new condo and the seller is offering concessions off the sales price. Is it better to ask the seller to pay the transfer tax in a new development rather than give a credit to the buyer? I'm asking because the concessions don't cover the transfer tax so I would... [more]
This is for a NEW DEVELOPMENT so the buyer is technically supposed to pay the transfer tax.
My question is:
If there is work to be done in new condo and the seller is offering concessions off the sales price. Is it better to ask the seller to pay the transfer tax in a new development rather than give a credit to the buyer?
I'm asking because the concessions don't cover the transfer tax so I would rather get that paid by the developer. I'm wondering if the developer paying the transfer tax would offer them a write off on their sale? making this type of agreement more advantageous to both sides.
That way I would get more of a concession.. and they could write it off rather than just give me a credit at closing.
Anyone think that a developer would consider/ be on board with that logic? or am I totally off base here.
Thanks
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Response by pjc
almost 17 years ago
Posts: 175
Member since: Dec 2008
I don't know if there is any write-off advantage to the Developer. But one reason a Developer might prefer to pay the transfer tax on your behalf, rather than drop the sales price, would be to make it look like they sold the unit at a higher price (important if they are trying to sell other units in the building). So, yeah, I think it might make sense for them to pay your transfer tax instead of giving a price concession.
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Response by soph
almost 17 years ago
Posts: 55
Member since: Jan 2009
Most new developments are willing to pay ALL the closing costs up to 5% right now (not just the transfer taxes) so I don't think you should have to choose b/w 2 incentives- you should ask for & get both. Just out of curiosity, which building? I can check to see if any brokers in my office did a deal there recently & let you know what the developer gave them in terms of incentives.
sophia.anzaroot@elliman.com
I don't know if there is any write-off advantage to the Developer. But one reason a Developer might prefer to pay the transfer tax on your behalf, rather than drop the sales price, would be to make it look like they sold the unit at a higher price (important if they are trying to sell other units in the building). So, yeah, I think it might make sense for them to pay your transfer tax instead of giving a price concession.
Most new developments are willing to pay ALL the closing costs up to 5% right now (not just the transfer taxes) so I don't think you should have to choose b/w 2 incentives- you should ask for & get both. Just out of curiosity, which building? I can check to see if any brokers in my office did a deal there recently & let you know what the developer gave them in terms of incentives.
sophia.anzaroot@elliman.com