In this blog post, I cover and comment on The Real Deal’s recent article that discusses the incentives being offered by Developers to South Florida Condo Buyers.
The article discusses how for the past six months, due to the COVID-19 pandemic and over-supply of condo inventory, Condo Developers in South Florida have begun to offer more Buyer incentives. The article mentions the following Buyer incentives:
- Furniture packages;
- Homeowners associations fees for a year or two;
- Free parking;
- Reimbursement for the cost of a flight to Miami to visit a project;
- Lease to own programs;
- Gift/discount cards;
- Interest on deposits;
- Honoring pre-COVID-19 foreign exchange rates; and
- Increased Broker commissions.
This is unequivocally consistent with what I have seen in my own practice and with clients. In addition to those mentioned in The Real Deal article, I have also recently helped negotiate for clients:
- Price reductions;
- Closing credits;
- Certain unit upgrades and/or modifications;
- Waiver of certain closing fees;
- Waiver of initial Association contributions;
- Waiver of other Association related fees and/or assessments;
- Development Fee waivers or reductions;
- Additional parking rights or spaces;
- Additional storage rights or spaces; and
- Extended and enhanced post-closing punch list repair rights.
If you are a serious Buyer looking for a luxury condominium in South Florida, there is definite leverage and negotiating power on these Buyer incentives. I would recommend reading The Real Deal article and reviewing the bullet points above so you are aware of all the possible incentives you may be able to negotiate for. Do not be hesitant to discuss these with any Seller/Developer.
The above is a basic introduction to the possible incentives you may be able to negotiate for if you are a condo Buyer in South Florida. Every situation is different and demands the proper attention and handling to navigate these uncertain times. If you are a buyer or related real estate professional and want to discuss any of the above or have a similar situation and would like to discuss with an attorney, please do not hesitate to contact me.
To read the full article in The Real Deal, please use the following link: https://therealdeal.com/miami/2020/09/14/anything-and-everything-is-negotiable-incentives-for-condo-buyers-mount-in-miami/?utm_source=internal&utm_medium=widget&utm_campaign=feature_posts
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