First Hand Experience: Developers Becoming “Negotiable!”

Yesterday I accompanied a VIP buyer on a series of appointments to some new development projects in the West Village, Soho, and Tribeca areas.
The on-site agents, showing us the property, echoed one sentiment again and again: “if you are interested in any of the properties, you should make an offer.”
In this cooling market, where supply seems to be greater than demand, some developers are considering offers below the asking prices and also offering concessions for closing costs. Not to mention the perks that some are also putting on the table like 255 Hudson, which is offering membership to its neighboring Classic Car Club.
The concessions and perks are completely understood when you cruise the neighborhood and see four new buildings in a one block area. How are all of these new units going to be absorbed in a market where buyers believe their is still room for prices to decline? That remains to be seen.
For buyers who have been waiting to be in the driver’s seat, buckle up and grab the wheel… your time is now.
It is imperative that I do mention here that some of the new developments, like the Philip Johnson-designed 330 Spring (which was his final project before his death in January at 98 years old) and the “hotel-like” 40 Mercer (whose sales office is actually in the Mercer Hotel) have sold a majority of their units. The latter project only has seven of 40 units available, and all for approximately $2,000 per square foot.
So buyer beware… prices have become a “bit” negotiable in many of these projects. Of course, if you offer 30% below the asking price shouldn’t count on signing a contract anytime soon… but it is refreshing to know that you can make an offer below the asking price that will actually be entertained by many of the developers.