Pre-construction - advice on buying....

[bacheloroflaws]

I'm looking at a pre-construction unit in a development, and am wondering - are prices negotiable? The building has sold fairly well (80% or so after several months)....should I just assume that I have to pay sticker price, or is it worth putting in a lower offer?
Any insights appreciated.

 

[rbtaylor]

I'm looking at a pre-construction unit in a development, and am wondering - are prices negotiable? The building has sold fairly well (80% or so after several months)....should I just assume that I have to pay sticker price, or is it worth putting in a lower offer?

Popular products don't generally lower their prices -- why would they? They have 2 to 3 years to sell the remaining 20%. Keep in mind the developer doesn't get their money until the building is registered after everybody is moved in.

They might give you 1% in the adjustments portion of the contract to make you feel that you got a great deal by capping some adjustment fees; but that's it. Adjustments are essentially a "you didn't get a decent lawyer" tax.

 

[shmoopie nhi]

Depending on the builder, you may be able to ask for upgraded finishes. But it sounds like the project has been selling well, in which case, builders are reluctant to offer such incentives and even more reluctant to sell below sticker price.

Something else to consider - if the floorplan you're looking at hasn't sold well, you may be able to wrangle something out of them. But if you're looking at a popular layout, odds are in the builder's favour that they can sell for asking price. Essentially, the thinking is if you don't buy it for x dollars, someone else will.