There is no doubt in my mind the VUE has a large potential market circling the building and wanting IN. I find that amazing given the low number of closings and the disastrous economic news of late, but I still get the sense interest is high. The showstopper? Price! The units are overpriced; simple as that. Get the prices right, and we’ll begin to light up sales on the Register of Deeds site, which currently sits at a paltry 18 units.
I know the blog has made proposed solutions before, and had no luck, but we received a letter from a very interested Vue condo buyer who had the following list of suggestions to share in a letter to the blog:
- Renegotiate with the 200 buyers to today’s market price. Nobody wants to take a loss, but with the interest on loans, operating costs disproportionately on the developer, it’s perhaps best to take the loss now. I bet you could make a deal on 50 to 100 units.
- Consider renting units on some floors. Getting more units filled will add to the buzz of the place. When we went to look at units there was nobody there – not the cool, vibrant scene it could be.
- Consider a guarantee – if the value of the unit doesn’t go up X% in two years, you get a rebate – or free condo dues until the unit achieves the target price. The developer is already at risk if the units don’t appreciate in value so this idea gets people into the units, creates a buzz and the buyers don’t take all the risk of further declines.
- Consider upgrades or free condo fees as an incentive. I would pay a full price if my operating costs were assured to be little or nothing for some years.
- Take contingent offers based on the sale of current residences. Most people won’t buy until they can sell what they have.
While none of these ideas are good for the developer, they could spark a trend.
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