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The Pearl Residences is an eight-storey condominium proposal situated along the 1600-block of Store Street in downtown Victoria's Old Town district.
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It depends. But the developer will not drop their price by 15% Not even close.What, approaching the dev and saying we want to buy five, give us 15% off? How realistic is that, Mike?
Matt.
It’s better financially to just negotiate the realtor fee to be slashed from the purchase price, or completely done away with. Even that’s relatively rare. Some developers will entertain upgrades to get your business but a discount in this market is unrealistic. Having said that I have heard of groups buying 15-20 units, but that’s 15-20 units, and that’s enough volume to have a serious discussion with the developer, but it won’t be a 15% drop or even 10%.
I also think it’s dangerous to play such games if you’re not a sophisticated player, and if you don’t know what you’re doing you can lose your deposit when it comes time to close on the deal in 24 months (or whatever). PK walks away with a few grand off his unit, you just lost $25k because you can’t close the deal. Or you close the deal, but need to immediately sell, and your profit margin isn’t enough to cover the GST, realtor fees, credit fees, and legal costs.
^ those are exactly the thoughts I was having. I'm not sure i'd want to partner up with a bunch of strangers and I'd be getting a lawyer to look over anything which costs extra too.
Currently the deposit structure of this development is 10% down at signing and 10% in a prescribed period of time - that’s ridiculous to tie up that much money in my opinion. We can collectively negotiate that down to a lesser down payment that will allow you to access an appreciating asset for a minimal out of pocket cost.
You're going to have to take this sort of stuff off of this forum.
I don't want VV associated with any investment schemes where words like "we can collectively negotiate that down" for an "appreciating asset" at "minimal out of pocket cost" are used to describe your idea of a sure-thing investment.
You don't know what this developer will negotiate with you, you have no control over this asset appreciating or depreciating, and minimal out of pocket cost is relative to each individual person's financial situation. Whatever the case, you still have to complete on 100% of the purchase price at closing, pay all of the accompanying closing costs, and do so within a few days after completion. This is not a walk in the park and can set people up for financial ruin.
In my experience, and I have been doing this a long time, is to have a working relationship with developers with whom you've done business with before. Being a repeat purchaser in good standing and with whom the developer has a good working relationship with is beneficial just like it is with any business. But by no means are you going to get deep discounts or special favours, but you may be able to negotiate upgrades and a down payment to help you make the purchase viable.
As far as the Pearl is concerned, I have been looking at this project for about a year but decided instead to go with a couple of pre-sale projects in Vancouver (all sold out now). It would take a 10-20 percent price cut for me to buy at Pearl so for me that is my market price.
It depends. But the developer will not drop their price by 15% Not even close.
It’s better financially to just negotiate the realtor fee to be slashed from the purchase price, or completely done away with. Even that’s relatively rare. Some developers will entertain upgrades to get your business but a discount in this market is unrealistic. Having said that I have heard of groups buying 15-20 units, but that’s 15-20 units, and that’s enough volume to have a serious discussion with the developer, but it won’t be a 15% drop or even 10%.
I also think it’s dangerous to play such games if you’re not a sophisticated player, and if you don’t know what you’re doing you can lose your deposit when it comes time to close on the deal in 24 months (or whatever). PK walks away with a few grand off his unit, you just lost $25k because you can’t close the deal. Or you close the deal, but need to immediately sell, and your profit margin isn’t enough to cover the GST, realtor fees, credit fees, and legal costs.
Sounds like a lot of dicking around for a few grand then. Interesting though.
Matt.
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