Do I get more Discount as an All Cash Buyer buy NYC Condos?
New York Real Estate is very competitive market place and it is a city full very successful professionals with high income, along with entrepreneurs of many industries such as finance, fashion, culinary and etc. We are seeing many sales are all cash in all price range. Many of our buyers are all cash buyers from local market or international buyers.
Majority of our qualified buyers are out of town parents buying for their son or daughter all cash one or two bedroom units at $1M-$3M range to international or foreign investor buyers investing over $8M all in cash.
To get a better idea, about 92% 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.
Another common question that asked are 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.
LOCATION LOCATION LOCATION: Many buyers interested in popular neighborhoods such as near Central Park, Union Square, TriBeCa, West Village or convenient locations that is easy to commute or travel to universities. Mentioned neighborhoods are internationally well known neighborhoods in Manhattan, 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.
TIMING: If the condo is a brand new construction and it is ready to move in, then the condo can close within two weeks if all parties are available. On the other hand, if the condo is a resale condo, 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: 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.
If you are flexible on your neighborhood preference, we do have a list of condos that have very motivated sellers that would be willing to entertain and negotiate with reasonable All cash offers.
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.
If you are an all cash buyer and would like to discuss how we can maximize your all cash offer, contact us today at EHSU@elliman.com or call (917)837-8869.