Negotiating Price on a new build condo

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bikechuck
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Negotiating Price on a new build condo

Post by bikechuck » Sun Mar 18, 2018 6:02 pm

I would like to sell my house and purchase a condo. I was wondering if developers ever negotiate price on new developments or if it is pretty much take it or leave it pricing. The place I am looking is approx 70% sold so I doubt if there is much wiggle room but I do not want to be a chump.

chevca
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Re: Negotiating Price on a new build condo

Post by chevca » Sun Mar 18, 2018 6:09 pm

In my experience, new build is pretty much take it or leave it. If you don't want to pay the asking price, someone will likely soon come along that will.

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unclescrooge
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Re: Negotiating Price on a new build condo

Post by unclescrooge » Sun Mar 18, 2018 6:12 pm

Highly dependenton location, and existing supply.

That being said, it never hurts to ask.

stan1
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Re: Negotiating Price on a new build condo

Post by stan1 » Sun Mar 18, 2018 6:19 pm

You might have better luck getting an upgrade allowance instead of a price reduction. I'd try both, you never know.

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fortfun
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Re: Negotiating Price on a new build condo

Post by fortfun » Sun Mar 18, 2018 6:28 pm

bikechuck wrote:
Sun Mar 18, 2018 6:02 pm
I would like to sell my house and purchase a condo. I was wondering if developers ever negotiate price on new developments or if it is pretty much take it or leave it pricing. The place I am looking is approx 70% sold so I doubt if there is much wiggle room but I do not want to be a chump.
If you have approved/good financing, make an offer. Walk away if they don't accept. They will likely give you a call in a few days. That's what I did on my new house. As someone else stated, will likely depend on supply and demand.

donall
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Re: Negotiating Price on a new build condo

Post by donall » Sun Mar 18, 2018 8:08 pm

Developers almost never decrease the price. Their bank proforma depends on a certain selling price. In addition, a lower selling price can affect future sale prices. You can definitely negotiate for upgrades. Of course it never hurts to try to negotiate on price.

randomguy
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Re: Negotiating Price on a new build condo

Post by randomguy » Sun Mar 18, 2018 8:20 pm

donall wrote:
Sun Mar 18, 2018 8:08 pm
Developers almost never decrease the price. Their bank proforma depends on a certain selling price. In addition, a lower selling price can affect future sale prices. You can definitely negotiate for upgrades. Of course it never hurts to try to negotiate on price.
It depends on the situation. If the market has collapsed (see 2009-10) while the building is only half sold, they will reduce prices to close up the development. Normally though I will agree that prices tend to be pretty sticky but they have carrying costs like any seller and they want to unload ASAP in certain situations

bberris
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Re: Negotiating Price on a new build condo

Post by bberris » Mon Mar 19, 2018 4:28 pm

A reduced-price sale will affect appraisals on future sales, which will affect future buyers ability to finance. New build appraisals magically come in at the price that was paid. But even magic has its limits.

WhyNotUs
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Re: Negotiating Price on a new build condo

Post by WhyNotUs » Mon Mar 19, 2018 5:36 pm

+1
stan1 wrote:
Sun Mar 18, 2018 6:19 pm
You might have better luck getting an upgrade allowance instead of a price reduction. I'd try both, you never know.
I own the next hot stock- VTSAX

GibsonL6s
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Re: Negotiating Price on a new build condo

Post by GibsonL6s » Mon Mar 19, 2018 5:53 pm

I would use a title company or real estate agent to pull the comps to see what the recorded sales actually are if possible for similar units.

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