NEW CONDO MARKET SHOWING LIFE
Why the change? A number of developments have not presold enough units (70+%) for banks to advance construction financing and if they pull the plug, developers could lose big. Time is running out and they have to make those last few sales quickly. The problem is that these new projects are already priced above the resale market. One option, to cut sale prices is not available, as all the previous buyers in the project would also demand price reductions and this would jeopardize the whole project.
The solution is to offer a variety of non- price bonuses. Developers who would not negotiate a thing are now open to just about anything. Depending on the project, you can get a free parking spot ($25,000), lockers ($5,000), free upgrades ($'000), no condo fees for two years ($9,000+), capping of closing costs, and so on!
How do you find out what developers are offering, and what you can negotiate? That's where a Realtor can help. Many buyers do not know that Realtors can represent them and will have their best interests in negotiating. The salesperson on site of course works for the developer.
The Toronto Condo Market never fails to surprise - that's why it is one of the largest in North America.