The Globe’s Kimberly Blanton is out with a story today about how developers are offering up incentives to boost sales, now that the market has cooled and condo inventory has risen.
Keep in mind, the story is about getting incentives from developers. Your average seller isn’t going to be so eager to negotiate, even now (which is why sales have slowed – buyers want lower prices, sellers want it all). Some of that’s logic – the developer has a pool of condos to sell, and has to get rid of a bunch, all at once, plus his necessary profit on the deal probably allows for some “slippage” in price.
I had a client who bought at Parris Landing, one of the properties mentioned in the article. He was able to get a year’s worth of condo fees paid by the developer, plus some other nice incentives rolled into the package. Parris Landing was also offering a $3,000 broker incentive. I had a problem with that, because it puts a buyer’s agent in a tough position – am I giving my client the best advice if I’m getting a little money on the side? – so I gifted $2,000 back to my buyer (and kept a $1,000 for myself (hey, I gotta make a living)), and we were both happy.
Buyers these days should certainly push for lower prices, or at least some major upgrades in the finishes in any new construction.
(Oh, in the article, one buyer ends up buying two units at 15 Beacon, instead of one, because the developer slashed $30,000 from the purchase price of a second unit. Here’s the deal – you do the same sort of thing at any development in town (preferably $1 million+), and I’ll slash 50% off my 2nd commission, okay?)
Complete article: Developers throw in extras to seal condo deals: Cash incentives, fee waivers offered – By Kimberly Blanton, The Boston Globe