Price Reductions-Be Careful What You Read

Careful what you read.

When a condo project advertises that it is reducing or cutting its prices by 50% this is not a true reflection of the overall pricing strategy.  As transparent as we want these projects to be, there is no way that they will show the public how they intend to sell their entire inventory.  A campaign that suggests a building is reducing prices by 30-50% is simply a marketing ploy to capture the public interest. At the end of the day, the market will dictate when the units sell and for how much.  It is simply supply and demand and the perception of value vs. cost.  Condos sell on momentum.  Developers and their sales teams are motivated and need to get you in the door to view their product.

Here are a few suggestions I would give you to ensure that you are not “sold” on these extraordinary reductions:

  • View as many units as possible
  • Ask the sales team how they are pricing the same units on different floors (i.e.  What would it cost me to move up to the 14th floor from the 12th?)
  • Ask for a floor plan and a cost per square foot for each unit (example…$500,000 / 950sf = $526psf)
  • Ask to see the units with the largest amount of reductions (within your price point).  This will allow you to see if those units were reduced due to potential issues (i.e…..Site plan, functionality, poor views, quantity, square footage etc….)
  • Don’t by into the usual sales tactics.  There is still plenty of inventory to choose from.  Take you time and make a great decision.

As always, if you have a questions, please feel free to e-mail me at info@urbanimg.com