How much discount can I get as an ALL CASH buyer (FAQ #3)?
Manhattan is a city full very successful entrepreneurs and high earning top executives of many industries. In this big city, many buyers pay for their property all cash without needing a mortgage. In today's market place, we are seeing many sales are all cash in all price range.
From out of town parents buying for children all cash one/two bedroom units at $1M-$2M range to successful business people investing over $8M all cash, in today's market place, over 75% of our buyers are all cash and serious buyers. All cash buyers work with us because we always able to negotiate ideal price or terms for our buyers in this extremely competitive housing market.
Many of our all cash buyers ask us how much discount can they get since they are paying all cash? There is no short answer to that question, the % of discount from asking price of the property will determine on several factors:
- Location of the property: Many of our buyers prefer to buy condos in highly desirable neighborhoods such as near Central Park, Union Square, TriBeCa, West Village or Prime locations that is very close to transportation or universities. These neighborhoods are some of the most 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. If a well 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, so at that point, the seller will entertain and accept likely the highest price offer if all offers are cash.
-Time frame of the offer: If the property is a new construction and it is completed ready to move in, then the condo can close within 10 days if all parties are available. 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 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.
On the other hand, 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.
Eileen Hsu 許雅嵐 (email: EHSU(@)elliman.com)
Our team specialize in Manhattan New York Condominiums, townhouses, and condops.