New York Real Estate: Low Priced Luxury Condos A Hit In The Big Apple

According to NY Times, low-priced luxury condos and broker commissions are now offered in hopes to sell more New York City properties.

Compass firm president Leonard Steinberg noted that these real estate trends have become more apparent compared in the past three years. According to Steinberg, it brought a lot of misconceptions especially in the property price ranges during the first six months of 2015.

Some of these wrong expectations are that most real estate sellers don't know the huge differences between existing homes and the newly built ones in NYC.

“If I can see that building from my window, surely mine should cost the same or close,” Steinberg said. “Unfortunately, that’s not how it works.”

The outlet reported that 1,040 out of 5,120 properties in the Manhattan area, which is equivalent to 20 percent of the entire listings, had lowered their asking prices last year. It was said that the house price cuts have increased exponentially in 2015 than the 520 homes in 2014.

Moreover, Brown Harris Stevens president Hall F. Willkie said overpriced homes have no place in the industry. He also explained the importance of having "interesting" offers. Wilkie said that there are a lot of details that should be put in consideration to boost up sales. Some of these details are the "size, location, condition and features like outdoor space, prewar characters," as reported by the outlet.

There are still realty agents who are oblivious to this important idea so the companies offer high-end incentives to brokers as well that ranges from gift certificates and sales commissions.

Meanwhile, the experts said that the customers are the ones who have an advantage of the price cuts. A lot of the low-priced real estate properties in New York have caught the attention of customers as brokers continued to give out cheap options for them including the luxurious types.

“Buyers are in less of a rush and they’re coming back two, three, four times,” Rutter of Stribling said. “Whenever they have more choices, it’s a little bit more difficult.”

According to City Realty, as reported by NY Times, high-end Manhattan apartments that are priced for more than $10 million have reduced their selling price. To alleviate this issue, Toll Brothers president Davin von Spreckelsen said that the brokers can go “through price amendments” and “one-off negotiations with buyers."