The Charleston: Time for a lowball???

Everything is negotiable. Especially in this re climate. Tell them that you are willing to pay 20% less than asking price if they pay all closing costs and see what happens. Then negotiate up to asking price but have them pay all closing costs. I have a feeling 70k of closing costs won't deter them from taking your 1.4 million!

the charleston has been on the market for ages, there were some price reductions but the price reductions were down to their original listing levels. LCOR has the chelsea stratus sales to worry about too which aren't exactly selling with ease. the location of the building is extremely poor. interior of the apts look quite good but quality of things are not that great relative to others around, btw the worst i have seen is the sky house. i would push them hard.

lupus1,

Out of curiousity, what did you think was so poor about Sky House. Layout or quality of contruction/finishes on the interior.

Thx.

Colgin

Charleston won't drop the price much lower than their offering plan (original price of 2006/07)
They will pay for all closing fee if you offer what they are asking.

I actually offered 1.25 on a line which was listed at 1.31 Their broker called me crazy and I backed away. 4 weeks later, the price dropped to 1.25 (original price)...his loss but oh well, i found a place for under 900/sqf brand new.

My guess is, if thye can't get what they had originally listed for, they will rent them out.
But You can get them to pay all closing and taxes, sponsor attorney fees.

lupus1,

stratus has no worry as its completion date is still far. Their location is rather extremely good.
Charleston on the other hand, is completed (closing started 4months ago)and bleeding $.

Colgin,

sky house was actually the first place i looked at. the thing that bothered me most was the quality and lack of taste in the bath room, this was the one thing that stood out. they did however let you change the bathroom flavor between shit green or public toilet. building itself from pictures i have seen to date looks like it is being held up by a cement pillar and has taken a large amount of criticism.

ba294, congrats on the 900/sqft. i do wonder if they will rent these out though. i suspect they will have to give up a lot of value through renting just because they aint brand new when someone rents them, assuming they do want to eventually sell them. i can only believe they might be somewhat rational in the process. stratus is an interesting one. they presumably complete in may and 40% of the building sold up in the first month or so of offering. but since then i would say from looking at streeteasy they have probably sold 1 every two weeks. you are probably right but i think with the number of new buildings in chelsea those extra 50 waiting to be sold might take some doing.

I looked at Chelsea Stratus back in October. Did not love their finishings and their sales people were kind of pathetic. Could at least partially explain the slow sales.

I doubt if this is always true, but I have heard that some brokers won't push a lowering of price because it decreases their commission. To the extent that this is true, it could be that it will change as the market becomes softer and more competitive.

The Charleston's location is awful -- and I actually am fine with Murray Hill. Seems they're hoisted -- and hosed -- by their own "LOCATIONLOCATIONLOCATION!!!!" petard.

The Charleston's location is a matter of Opinion. I love Murray Hill, hence that is why I am considering it. I started the thread to try and get some opinions on how to negogiate.

gluck 75

I have also looked at the Charleston and really like the place. They are positively trying to close the place out. They have very few left. What line did you like? My guess is they will not do much on the price since many have been reduced almost 15% but might have a chance on the closing costs. If you are not using a broker they should be willing to lop 3 or 4% off the price since they have to pay that to a buying broker. Good luck.

E line...

I happen to think they have a lot left.

Please tell me any info you have...

I like the E Line

The last time I checked 10E and 11E were still available. The E line is my favorite also. These units have been priced dropped almost $200,000. Feel bad for the early buyers who paid considerably more for lower floors.

Nice views and very quiet. Tunnel exit street is a little scary but it will not affect you if you are not on like the 2nd or 3rd floor for the E line. Oh, I think 2E is available. Very large terraces but again too low.

Calla the sales office and have them fax you an availability list. It may give you more insight even though it may not be complete.

I called the sales office either...

Salesperson: I have 2e available only
Me: Well you showed me 6e on Saturday and said that available
Salesperson: Well that hasn't been released. But...if you want to buy it I can release it.
Me: What else hasn't been released?
Salesperson: I can get you 16e
Me: Is that all
Salesperson: That should give you enough of an idea for now

So they've reduced by 15% -- but 15% of what? Their ask. And that's all it is: an ask. It's like MSRP v. invoice on a car. Broker's ask = MSRP, which I never, ever pay and I hope you don't, either.

gluck: sorry, was not dissing your choice, should have clarified that some lines have a not-so-nice location (as csn indicated). I like MH very much. And you'd be near the delectable el parador...

Jerkstore...forget the El Parador!!!

Pio Pio just opened on the South Side of the street...which is awesome.

No offense was taken from your earlier post.

Let me ask you...if you were going to ask them to pay all of your closing costs...what would you bid on and apartment asking 1.415?

Gluck - the reason for the sales agent's bitchiness on the phone is that they don't want you to know that they are having trouble selling the units and that there is now a glut of unsold sponsor units. I would bid 1.315 and ask to waive all the closing costs. They may be getting desperate, but I'm really just guessing. There are now unlived in resale units in the building on the market.

Thanks Mel...thats what I am hoping

Gluck75,
They won't take the offer with 1.315mil...I recently tried 1.25 on 1.31 but flatly denied and called me crazy.

You could be right, ba294. On the other hand, I think your 1.31 was dropped to 1.25 last month!

I actually think they are priced pretty well now. I am more concerned with having the developer pay my closing costs.

ba294...what line were you bidding on?

Mel,
I know and I was little bitter about it. They could've gotten what they are asking now
it was 5E
I also like the E line

gluck75,
you shouldn't have any problem with closing cost.

Have them pay for transfer taxes, sponsor attorney fee, mansion tax and 10k towards your closing cost

Im better there are at least 5 E Lines left.

I want them to pay title also.

10k towards your closing cost should cover your title, app fees, and mortgage tax

i am financing 85 or 90 percent, so my mortgage tax alone will be 25000

any negoiating power on closing costs if you agve a deposit a year ago but have not closed yet?

I was looking at Charleston too. I do not see other new developments reducing the prices across the board. Is the price reduction purely influenced by supply/demand and does not reflect any financial problems the developer may have? Other new developments are holding their prices firm and I do not see how the other developments are that better than Charleston.

Charleston Sales: Runnin' Wild?
(AP) For those tracking the 34th Street development, the fact that The Charleston was thought up down in Carolina is not news. And while other nearby developments might have certain amenities lacking at this sleek tower -- allowing some resident to dance and some to prance -- the developer will tell you there's nothing finer than the Charleston, Charleston.

"Lord how you can shuffle," the group's website gushes toward visitors in a dazzling flash animation. "Ev'ry step you do leads to something new, man I'm telling you -- it's a lapazoo." Sen. Charles Schumer, an ardent backer of the building and who keeps a residence elsewhere in Manhattan, sees it as further progress in the strong expansion of the city's residential market.

"Buck dance, wing dance, will be a back number," the New York Democrat said when asked by reporters on Capitol Hill. "But the Charleston -- the new Charleston -- that place is surely a comer."

Still, a number of industry analysts acknowledge that, as the weather has turned, so, too, has slight cooling entered the Manhattan market.

"Sometime, you'll visit it one time," offered Cecil Mack, real estate analyst at Deutsche Bank. "The condo called Charleston, made in South Caroline."

dont worry - I bet gluck wont pull trigger!

MORE COWBELL!!!

Doogie,
If you already signed a contract by putting down the deposit, you have no leverage. I assume you were already conditionally approved for mortgage.

He still has leverage...he hasn't closed yet, and im sure he has a "no finance contingency"...

If they won't help him out, he could simply "fail to get financing" which I would imagine isn't aall that tough in this environment.

Patience please. Most developers will not start significantly reducing the price until the building is complete and other units have closed. Once that happens, the developer will have to consider the cost of maintaining the units (interest payment on development loans) versus selling the unit. For example, the developer needs to consider if $1MM today is better than waiting for $1.1MM six months from know. Other factor is the overall real estate market. For example, Charleston might have been able to sell all the units during strong Spring 07 market if they were a bit more reasonable with the price. They probably had a optimistic view of the market, and wanted more. The downturn starting in August 07, and the market has changed. I would wait 1 or 2 months after until other units on the floor closed before negotiating hard with the developer. For example, if they started closing the 3rd floor, and there are still units available on the 3rd floor, then the developer would likely negotiate as the units on the 3rd floor are ready to close but lack buyers.

An excellent point Jimmy. Several units are closed and some units are now even popping up for resale...which is a terrible sign for the developer...

no financing contigency is usually upon application with certain company.
He was approved at the time of the contract so the only way out is to prove that he was denied of mortgage and he needs to reapply for one.

Just because units are showing up for resale does not mean there is a problem with the developer. This building has a pretty high percentage of investors. Many bought at the beginning and are trying to flip. Not so easy in this market.

It doesnt't matter what the reason is...the result of investors flipping their units while the developer is still trying to sell out, is a big negative for the new unit pricing.

one thing for sure is that the resale condos won't be priced cheaper than the original offering plan for 2 years. This means the prices won't drop at all on these units.

It can't help. But your point above is another reason to negotiate using the 70g in closing costs.

lets hope those flippers used very exotic loans combined with very unrealistic appreciation expectations!

Yes Bugelrex!!! Yes!!!