Can I get more discount if I pay ALL CASH to buy NYC condo?
We work with Chinese and International buyers are all cash from local United States and/or international buyers. New York city is a great city full of very successful business men/women with and high income producing career such as finance, fashion, culinary and more.
In our own experiences, we are seeing 75% of our own sales are all cash in all price range.
Many out of town parents buying for their son or daughter ALL CASH with no mortgage, one/two bedroom units at $1M-$2M range to some international or foreign investor VIP investing over $8M all in cash.
Based on our sales in year 2011 and so far 2012, about 75% or more of our buyers are all cash with no financing needed, serious and motivated buyers. All cash buyers prefer to work with us because we are experienced and can negotiate ideal price or terms for our buyers in this highly competitive Real Estate market.
Buyers we work with asks us often: How much discount can they get since they are paying all cash? To be specific, here are several factors determined the amount (%) of discount a cash buyer can receive.
The neighborhood and location of the condo: Buyers that interested in high demand and popular neighborhoods such as near Central Park, Union Square, TriBeCa, West Village or convenient locations that is easy to commute or travel to universities. These neighborhoods are internationally well known neighborhoods in Manhattan, therefore, there are many other buyers also on the market seeking the perfect home in those neighborhoods, there will always be more buyers than housing inventory in these specific neighborhood. When and if a fair priced condo comes up on the market and it is in move in condition, there is a good chance that there will be multiple offers in place and other all cash offers, therefore, the seller will entertain and accept likely the highest price offer if all offers are cash.
Closing time frame: 1) For brand new construction and it is completed built, finished, ready to move in, if all parties (buyer, seller, attorneys) are available and funds are ready, then 10-14 days may be possible. 2) If the condo is a resale, that you are buying from a private seller not developer, with an all cash offer, the closing can take place 30-45 days. If the seller is motivated, they will be looking to close as soon as possible, this means if you are all cash, and your funds are ready, then there is a good chance of negotiating with seller an ideal price since it is an all cash and can close as soon as possible.
Terms of the offer: This sometimes apply to some new construction condos. Some new construction condos in Manhattan sometimes will offer buyers’ incentives. Some of the buyer incentives perhaps are giving buyer a gift card to a home decorating store or other form of gift cards, some will offer paying off part of the closing cost, this all depends on how the new construction condo is selling, if they are selling well, then most likely there will not be any incentive. With these incentives, they also count as part of the ‘discount’, even if the discount is not directly off the sales price, it is still a good way to receive some perks if the developer is motivated.
We also have a list of motivated seller listings that will entertain all cash offers and provide more price flexibility.
Many all cash buyers work with us because we are able to protect our buyers’ interests and negotiate many favorable terms for our buyer, our all cash buyers are always delighted with our savvy negotiation skills and refer their friends and families to us.