Negotiating

[matt]

I am pretty new to this, but with the slowing market, would I be able to negotiate anything extra at the sales office new condo developments? Or does this not really happen? I was thinking something like lower price, extras, etc. Thanks in advance!

 

[nodoubtguy]

I got them to throw in an upgrade to hardwood floors in the bedrooms.....

 

[Mercury]

You may be able to negotiate extras, but it depends on the development. Some will not budge an inch. Some will throw in extra upon extra because they're not moving units as fast as they want or they're just feeling generous.

Hardwood floors are a good thing to ask for. You may be able to get "upgrade" (higher-quality) materials written in at no charge. Some places will pay your closing costs (not lawyer's fees, though). Basically the answer is that it depends and there is no set rule.

 

[Solaris]

while you can get perks / upgrades for free, I believe new condo sales office do not negotiate on the unit selling prices

 

[Observer Walt]

^ I think you'll find that's so. Prices are pretty much "non-negotiable". The timing of the down payment installments is not negotiable either, as this will probably be written into the developer's agreement with their construction lender. However, many sales offices may be willing to negotiate upgrades, particularly if you are buying a model which hasn't been moving quickly.

 

[cdr108]

If you're interested in a new development and the builder is not willing to budge on price or freebie upgrades, consider getting a buyer's agent, who will give you a kick-back on their commission.

Talk to the prospective RE agent first and MAKE SURE they put it in writing for you. Some RE agent are willing, some not. Considering they aren't doing much work with a new build except tagging along with you to 'represent' you.

 

[Mercury]

The timing of the down payment installments is not negotiable either, as this will probably be written into the developer's agreement with their construction lender.

I know from first-hand experience that the Amacon Eden/Eve/Elle development in Mississauga offers some room for negotiating the deposits. But then they're kinda high to begin with (15% within 120 days, another 10% at occupancy).

 

[Observer Walt]

Mercury, you are right that it's a pretty accelerated schedule of payments. It's interesting to hear that you were able to negotiate on this.

Amacon is following the same policy at Parkside Village (15% within 120 days). I don't know how it has impacted sales. I do know that the two buildings released so far have been selling pretty quickly.

 

[ducati0000]

I havent seen any price reductions at all...free upgrades and maybe a free locker is what most will offer...payment terms and deposit terms is getting flexible though.

 

[cabbagetowner]

it never hurts to ask!

 

[onfence]

Bump on this: what can a prospective buyer expect to be able to negotiate off of a new condo in this period of the economy? Would 10% off retail price be laughed at or 5%? I think that 2% off is very doable so wondering if I could get more. I will be negotiating myself w/o a buyer agent.

 

[PinkLucy]

As posted previously, you're not likely to be able to negotiate on price -- perks/extras, yes, price probably not.

 

[onfence]

As posted previously, you're not likely to be able to negotiate on price -- perks/extras, yes, price probably not.

For me it's different, I suppose? I confirm that I can have some leeway on price but wondering if I can get more than 2% off in this economy? What would still be considered reasonable? Asking for 5%, 10% off?

 

[UrbanVigor]

When I purchased my unit at Market Wharf, I was able to get hardwood floors throughout at no extra charge and that appeared to come rather easily.

I was also able to get the *final* deposit extended but they, too, have very accelerated deposit terms. Initially, all deposits within 270 days. They were very strict on the dates of the first 3 deposits, but the final deposit got extended to 365 days. Still very tight.

As for pricing, usually they take the current state of the economy into account. They may offer a price less 3%, but that's usually a marketing ploy.