Sounds pretty amazing right? I'm sure when you first read the title you probably thought that there must be a catch right? No. I actually just got my client ratified at the Yale Condominiums for $64K below list price!
How is this possible? Well, they're not going bankrupt; investors aren't bailing; so how did I save my client $64K? A combination of things. The combination of the market, credit freeze, condo conditions, and my understanding of the developer's business model is how this happened. We've heard over and over that how the market is crashing with no end. We experienced pretty significant decline in real estate prices in the DC area. Initially, sellers were still clinging on to hope that the prices will rebound. Unfortunately, the prices didn't rebound like everyone hoped. And by the time sellers were willing to offer steep discounts, the credit market tightened up. All these things really caused real estate agents to accept the current reality of lower prices.
Next, along with the market condition, the timing was really good. As of now, the developers at the Yale Condominiums sold a little over 70% of available units. They really want to get this number up to 75% so that they can officially call this building a Condominium. Until this occurs, DC won't allow the building to be officially a Condo. So, if you were interested in the Yale, then timing couldn't be better.
Finally, with some research and several conversations, I was able to determine the seller's position. You see, builders and developers aren't like individual home owners, where emotion comes into play during negotiation. For developers, everything is based on a financial model - the cost of holding a number of units, cash available through alternative financing for their future projects, and projected income and losses. So, if you can understand what the developer's position is, then you can figure out their yes/no decision point is and how to negotiate properly. Of course, my extensive knowledge in finances and business model really helped me through this. Still, such helpful information isn't easy to find; the Yale Condo provided enough information for me to determine their stakes. I'll be honest though, I did get lucky because I understood the seller's position almost too well.
And these three things all came through together to help save my client $64K! If you're interested in the Yale, then I suggest you consider them now!
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