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Why would a sponsor/builder pay for the condo maintenance cost for the first year? Have they just added that

cost to the price? And if so, why bother? Kind of a cheesy ploy, no?
Sun May 4 2008, 07:40 - New York - Home Buying - 4 answers
 
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Marcelino
Home Buyer
in 10010
Marcelino, Home Buyer in 10010 in 10010
Answers (4)
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Paul Macapag… was FIRST TO ANSWER
It is better for a sponsor to negotiate or give a brake on something other than the actual sales price.
Reducing the sales price affects the pricing of the other units in the building. In a strong market it could point to the building not selling too well , which is definitely something to be careful about. Today it is also reflective of a market that is slowing down or staying flat so the building is not selling as well as the sponsor wishes for due to that. Combination of the two.......
Simply an incentive to a buyer - one way to save on the cost over a period of time.

Thu May 8 2008, 19:45
Web Reference: http://www.bellmarc.com/agents/profile.asp?id=BOH
 
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In condos, it's called a common charges. They're willing to pay them, because it's not reflected in public documents and sales figures. If the price of the condo isn't negotiated downward, then it's better for the sponsors as others may be less likely to negotiate the cost of the unsold units.

Mon May 5 2008, 05:31
 
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Paying condo dues/maintenance for the first year is a typical incentive that builders will offer in a slower market. This will often be part of a larger incentive package, although they may not make the rest of the potential incentives known to the general public. Ploy? Not really... you'll find that most construction is priced similarly to the resale homes in the area, and the builders just have deeper pockets to get their properties to move faster. Many builders will require you to use their in-house lender in order to qualify for these additional incentives, so be sure you know the rules. Bring a realtor with you to your first visit to the builder so they can help negotiate the pricing and as many incentives as possible for you.

Sun May 4 2008, 12:50
Web Reference: http://SantaClaritaRealEstateBlog.com
 
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FIRST ANSWER
Hi Marcelino,

In a way you are kind of right. It is a ploy. I have seen developers pay for things like maintenance, Give away storage units, spaces in bike rooms, and even pay for a certain % of closing costs. Sponsors have tipically been very greedy in the new development side and any time they are willing to give soemthing up, no matter how small, I think is a great thing.... If you can, don't just settle for that, see if you can get more. I have been able to negotiate some pretty amazing deals lately.

Sun May 4 2008, 08:35
Web Reference: http://www.elliman.com/pcm
 
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