Despite the decline in sales activity over the past few months, home prices remain relatively higher than normal, as the market is still adjusting. However, one sector of the market where you may be able to secure discount pricing and concessions is new developments. Buying in the early stages of a new development does have potential risks, but it also has its benefits in terms of discounted pricing and/or concessions.
Developers typically are looking to sell a certain percentage of units right out of the gate so they can pay back their loans. This is when buyers can usually secure better pricing if they purchase as soon as sales open during the early project stages. The challenge, of course, for anyone looking to move in by a certain date is potential construction delays. With that said, buyers should do their research on the developer ahead of time, examining their track record, and also have a contingency plan, should the project not pan out. It is also helpful to speak with a real estate professional who is familiar with new developments and other factors that might impede any progress.
It is also important to set expectations that discounts may not be as significant as one might think, even in the current market. Yet keep in mind that developers are usually open to negotiating. Also worth noting is new developments are reeling in buyers by offering perks—and not just your everyday run-of-the-mill incentives. These extravagant perks include everything from private yacht club memberships to luxury cars as a way to sweeten the deal.
Known as the real estate capital of the world, you can always expect new developments to be going up in Manhattan. If this is something you would like to explore further, please reach out. Meanwhile, here is a listing of new developments currently on the market.