Home Buying in 60605>Question Details

Jp, Home Buyer in Chicago, IL

How readily will a developer that is closing out a new construction condo high-rise give a closing credit or?

Asked by Jp, Chicago, IL Sun Feb 10, 2008

reduce the price, especially if it is a new landmark-to-be type building?

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Answers

3
I don't know all the facts of this project and who the developer is, but as a general rule they will discount price and give closing cost credit REGARDLESS of whether your unit closes out the project. The reason is there is a glut of condos on the market right now. They are more apt to give credits than lower the price, since the final price will be reflected in public records and used by future buyers to get a better deal.
The best answer is to have your buyers agent research past sales and then you will see how much the developer took off list for similar units (or if they all sold for full price you probably know to go for credits instead). I hope this helps. Good luck!
1 vote Thank Flag Link Sun Feb 10, 2008
It's hard to tell. Some developers want to "get done and move on" so they are open to negotiations while others feel that they don't have to since they most likely don't have to pay the monthly interest on the remaining units as the construction loan has most likely been paid off. It truly depends on each developer as well as the actual development.
Your best bet is to identify the unit you like and then have an agent help you negotiate. An experienced agent with a lot of background in representing buyers and sellers of new developments is a skilled professional worth using. You have nothing to loose by submitting a contract.

Best of luck

Vicki
0 votes Thank Flag Link Thu Apr 24, 2008
Jp

It's difficult to say without knowing more about the particular development and the specific unit itself. Sometimes there's no rhyme or reason why certain units sell before others. I've sold units in projects that we thought would take longer to move but ended up selling first and units we thought would go quickly ended up taking longer just because the right buyer hadn't appeared until then.
If a unit is one of the very last available you need to take into consideration why that's the case. If previous buyers bypassed the unit in favor of others, you may be getting into something that could be difficult to resell at a later date (views, size, floorplan). Alternatively, it may be a great unit that was initially overpriced and is now at current market levels. The developer may be more negotiable depending on current circumstances especially if they're looking to get involved in another project and move on quickly from the last remaining units.

Ultimately, you never know what the answer will be until you put an offer in writing for a specific unit and receive a counter-offer. If you don't like what the developer will sell it to you for or the credits provided, move on.

Good luck, Ken.
Web Reference: http://www.KDRchicago.com
0 votes Thank Flag Link Mon Feb 11, 2008
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