The old adage, "Pricing it right, sells" is still a favorite in my book. This past year has seen slow condominium sales in the Columbia, SC market. I am sure I am not alone in this.
One of my clients, The Gates at Williams Brice (www.thegatesatwb.com) understood this concept. The Gates is a luxury condominium project that completed construction in July 2007 with a total of 158 units. Within the first year, the developer was able to successfully pay off the mortgage debt. The initial price point was $220K-$260K.
By January of this year, we had 42 remaining units. In order to stimulate sales and closeout the project, we held a highly publicized builder closeout event. The new average pricing for the remaining units came in at $158K. This pricing is very competitive compared to what average pricing runs for a regular DOWTOWN residence in this market. We then offered additional incentives just for the Closeout Event. The result? 20 units contracted!
With 22* remaining units, the same pricing is being offered, and the developer is giving up to 6% in additional incentives* to the buyer on top of the reduced pricing. Incentives are per lender approval. Limited number of incoming producing units also available.
As a result of our success, competing projects surrounding The Gates are now following suit with reduced pricing as well. Current owners of The Gates are happy to know that they will not have to worry about residing in a project with developer owned units for another couple of years. The developer is happy to be able to move on to another project. My sales team and I are happy to be on our way to closing out the units!
This is just another example of how effective pricing can spur sales---even in a slower market.
If you have an investor looking for a turnkey investment, or if you know of someone looking to purchase in downtown Columbia, SC be sure to check out The Gates at Williams Brice first. By the way, we are also offering a 4% co-broke!