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New Condo Incentives?

argos

argos

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I'm wondering what are some things that buyers can bargain with the builder. I've never encounter a reduce in the purchase price but i have seen amendments for Free One Year Free Maintenance and/or Free Upgrades. Any others?

If i walked into a sales office where they have unsold units, what are some of the common things i can bring up that they may consider?
 
Some are willing to negotiate, some aren't.

I've walked up to Pier 27 and they said without an agent, they would throw in a locker and I think 1% discount but can't afford to give me free parking.

I've also tried to walk into West Harbour City sales office without an agent. The sales person wouldn't budge. I asked if there's any special offers and she said there's already a lot of upgrades (hard wood floor, stainless steel appliance, etc).
 
X the Condo is offering a 10K incentive...can't remember the details, but its applied to the (inflated) purchase price plus price of parking and locker.

I suspect the incentives game will soon become more competitive as the market is slowing down. It would not surprise me if new pre sales activity have ground to a halt since the credit crisis. Unlike the mls resales market, its difficult to get data on pre-sales activity...
 
Monarch is offering some incentives on a few of their condos. 1 per cent off purchase price, and a year's free maintenance. It is getting (mildly) competitive out there.
 
You won't get too many incentives, they'll play the delaying game and keep delaying it until the market improves in 2010-11.... heck they don't even have to break ground until years later if they want. The consumer protection is one big joke.
 
There are some signs of cracks in the foundation, but nothing drastic yet.

Fly condos was offering a free parking spot on units over 625 sq ft at a broker's event they had this week.

Overall though, I haven't seen anything too exciting. These little 1% off and $10,000 cash back type promos are always available, they are nothing new or indicative of a slowdown or desperation to sell from the developers. I think what we will see is that they will just stretch out their sales cycle and/or cancel projects. The cost of land and the cost of building isn't going down any time soon.

Yes, there are several recently launched projects that are like 20-40% sold out whereas if they had launched 6 months ago they would be 60-70% sold. Increasing inventory will put downward pressure on prices, but so far the consumer has not seen much of a difference.

my 2 cents from the ground...
 
ebardoun said:
Message from Freed Developments


http://www.itracmedia.com/itracemailpage.aspx?tpid=bfb1a04f-a679-4fe1-a920-059ca8ad28a5
Click to expand...


I don't understand how 455 Adelaide can be 98% sold of 103 Unit Residential Condominium, yet still have 7 or 8 units still for sale according to its' website ???


Really makes one question the "% sold" claims made by developers. :confused:


On a side note, the pricing is comparable to other projects that are further west on King West, and he has better architecture IMO.
 
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argos said:
I'm wondering what are some things that buyers can bargain with the builder. I've never encounter a reduce in the purchase price but i have seen amendments for Free One Year Free Maintenance and/or Free Upgrades. Any others?

If i walked into a sales office where they have unsold units, what are some of the common things i can bring up that they may consider?
Click to expand...

Haven't walked into any builder offices recently but was reading in the papers other day about some developers offering free cars, trips, and other barter items to try and "stand out". This cross promotion theme in my opinion can only last so long before Kia (the ones offering the free cars), travel cos, and whoever they got to cross promote their projects decide to pull the plug on this moribund patient and call it a day. That's just an observation and opinion from an outsider. Anyone have insider knowledge on how developers are trying to survive and tactics used ??
 
About those free cars and vacations. I've seen them around too but those aren't for ordinary buyers. They're for the rich. All those units they're offering with these incentives cost over a million dollars. About 2 months ago, I got email add offering free benz but the apartment was 7.4 million with 8000 sq ft. or something. In the magazine, I saw Daniels offering free plane trip to France. Their units cost over 1 million.
 
AKS said:
About those free cars and vacations. I've seen them around too but those aren't for ordinary buyers. They're for the rich. All those units they're offering with these incentives cost over a million dollars. About 2 months ago, I got email add offering free benz but the apartment was 7.4 million with 8000 sq ft. or something. In the magazine, I saw Daniels offering free plane trip to France. Their units cost over 1 million.
Click to expand...

Here's the article I read:

http://www.thestar.com/article/530671

Nothing outrageous, projects were in the 300-400K range and it wasn't benz, it was Kia which fits in with the target market. The fact that you point out higher end projects are doing the same just reaffirms to me that developers of all market segments seem to be getting desparate and when their cross promoting partners decide to pull the plug, they got nothing but price to negotiate.
 
I suppose house sales work differently than condos. There's always been incentives for buying condos. Back in 2004 Cityplace selling N2 was giving away 42" LCD tv (but that's cuz they hiked up the price). During VIPs there's usually some incentive like some cash discounts or free upgrades. After they hike up the price they might tack on free maintenance, free trips or cash discounts which equates to null value or more expensive than if you had bought it earlier during the first wave of sales at VIP. But that's been happening for years.

I don't know too much about house sales but a long time ago when I was looking into purchasing a house, there were seldom any incentives. You take it or leave it.
 
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monarch waterscapes incentive

If you go to Waterscapes with a broker/agent, they are offering 2% off or 2 years free maintenance for all units. Parking and locker inclusive for most units.
 
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