If you are thinking of buying a new apartment in Manhattan here’s how you can get the best deal in this current market that is favoring buyers.
The Price – This is your most obvious opportunity. Many properties are about 10% overpriced; however, some sellers that price just right for the market. You need to do your homework. You can be more aggressive when buying a new development because you’re dealing with a professional seller instead of an owner of a resale apartment. Properties that are more likely to offer the most considerable discount are large, expensive apartments where developers overpaid for the land and building, and the prices aren’t in line with the current market. Looking to buy a resale apartment? Then keep your eye out for these clues that a seller may be very interested in a pricing negotiation.
1. The number of days on market.
2. Changes to the listing broker.
3. Falling prices in the comparables.
Other negotiable items are closing costs, flip taxes and common charges. Closing costs items like transfer fees, attorney fees are being negotiated particularly in new development. These are valuable discounts so don’t forget about them when in negotiations. In some cases developers are willing to pay several years of common charges. There are new condos where the developers are willing to pay city and state transfer fee.
Flip taxes in co-ops and condos that have them are also more negotiable. This is an item I see more in play. It becomes just a function of price. Finishes & other perks can be negotiated, but you can’t ask for a customized new condo. Closing credits, a discount a buyer gets at the closing is another tactic. For sellers, my best advice is to have your broker take you on a tour to see the comparables so that you will know the market value of your apartment.
Contact me if you have questions on how to negotiate in this market!