Bradenton Developer Initiates Aggressive Sales Promotion In Attempt To Unload Unsold Luxury Units, Keep Prices Propped Up

In Bradenton, Florida, buried in an article in the Bradenton Herald is a description of an aggressive sales promotion reportedly being used by a local condo developer with the view to unload the rest of his unsold luxury inventory, and at the same time keep market prices propped up:

• Instead of lowering the sales price of units at The Promenade that go for $360,000-$700,000, [real estate broker Becky] O'Steen said the developer is offering an alternative cost relief. O'Steen said some new buyers may be eligible for a promotion in which the developer will pay the buyers' mortgage payments, property taxes and association fees for three years. To qualify, O'Steen said buyers must be able to secure a mortgage with 20 percent down and pay any closing costs associated with the mortgage. O'Steen said the promotion has already sparked some interest among buyers and realtors.

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• In the long run, O'Steen said the developer wanted to protect property values. "It helps keep the property value up for three years," O'Steen said. "That's the responsible thing to do. You want to keep the comparables up for sure, you don't want to hurt the property value of the building."(1)

For more, see Promenade condos scarcely populated (Though sales are stalled, residents have faith luxury condos will avoid fall).

(1) I always thought that mortgage lenders and real estate appraisers had to factor in the value of any sales rebates and other buyer incentives when determining the sales price/market value of property involved in a real estate transaction.