Property Grunt

Tuesday, April 25, 2006

A hint of fear from a developer

The Grunt recently heard on the wire that a very well known development in Chelsea is offering the following deal.

50% of the commission will be immediately given to brokers after the contract is signed and deposit is cleared. Upon closing, the broker will get the rest. The entire commission is 3%.

This is just an incentive provided by this developer to direct as much traffic to their building and I think it is also indicates their concern about the current state of the market. This particular developer needs to unload their inventory before the s**t really hits the fan and they are left holding the bag.

With interest rates, oil prices and other chaotic influences I would not be surprised if more developers utilize other means to sell their apartments. In fact I expect bonuses to be shelled out by developers to entice to brokers in bringing buyers to their buildings.