With mortgage rates higher than they have been in well over a decade, many potential buyers are hesitant to go on the market for a new home. In an effort to lure buyers, a growing number of sellers are attempting to sweeten the deal but with an interesting twist.
When mortgage rates spike, price cuts usually follow for an obvious reason. When fewer people buy homes, surplus grows, and prices decline as supply outpaces demand. In the current market, this historical pattern has yet to play out. It took a few years to recover from a backlogged supply chain at the height of the pandemic, which simultaneously slowed the completion of new developments. More recently, as available development sites become more limited and scarcity keeps prices high, there has been little impetus to introduce significant price cuts. As a result, sellers and developers are increasingly looking for other ways to attract buyers, primarily in the form of lavish gifts.
In this article:
Sponsor-paid transfer taxes or closing costs
In most cases, sellers rather than buyers pay transfer taxes on sales. However, if you’re buying a new condo or a sponsor unit in an existing coop or condo, you will also be on the hook to pay transfer taxes as a buyer. Given that local and state transfer taxes typically add tens of thousands of dollars to one's purchase, this alone dissuades many buyers from purchasing sponsor units.Moreover, closing costs can add up. With that in mind, the sponsor of The West Residence Club is covering closing costs on all new contracts signed by the end of 2026.
Common charges
In luxury condos, the sticker price and closing costs aren't the only high fees. Owners are responsible for monthly common charges. With that in mind, a growing number of new developments are offering to cover common charges for one year or longer. This is one of the more popular types of incentives, and buildings offering it may be seen below.It must be noted that unlike at co-ops, where property taxes are included in monthly maintenance fees, condo owners are responsible for two sets of fees: common charges and taxes. However, sponsors have taken notice of that, too. At South Slope boutique condominium 218 23rd Street, the property taxes quoted in the listings reflect a 5-year $60K tax concession offered by sponsor.
Interest points
Given the current market, there is likely no gift in higher demand than a lower interest rate. In an innovative scheme, a few developers have started to help out potential buyers by buying down their mortgage rates for a set time. Others work with preferred lenders who can provide lower rates exclusively for buyers in the buildings. This is another popular type of incentives, and a selection of buildings offering it may be seen below.Memberships
In a real estate market where luxury services are in high demand, it is no surprise that developers are increasingly including memberships to help lure in potential buyers. For example, at One Wall Street, buyers also receive a complimentary membership to luxury gym Life Time, which has an outpost in the building. At the recently sold-out 520 Fifth Avenue, buyers received complimentary memberships to Moss, the private club in the base of the building. And in Brooklyn, one enterprising seller at Boerum Hill condominium The Hendrik is offering a one-year membership to Bathhouse, a nearby spa, with the purchase of the two-bedroom home (details below).Gift certificates
Both on the rental and buying side of the market, gift certificates have long been used as an incentive to close deals when the market is in a slump. For example, at the height of the pandemic, 505 West 43rd Street offered a home office package that offered $10,000 for a virtual consultation with designer Andres Escobar and new furnishings, equipment, or decor for a home office.Bikes, luxury cars, and mopeds
There is nothing new about transportation incentives. In 2018, several rental developments in the East Village and Lower East Side attempted to attract renters by offering free memberships to CitiBike and car-sharing services. A year later, Sutton Place condominium The Revere offered new buyers a choice of common charge rebates or use of a Class A Mercedes. Finally, some sponsors have chosen to offer parking spaces as incentives.Taylor Swift concert tickets
In 2023, the most surprising giveaway to entice potential buyers has likely been a set of coveted tickets to Taylor Swift's Eras tour. In this case, however, the gift was a one-and-done publicity stunt designed to create a buzz around the launch of sales at The Huron in Greenpoint.Whether or not developers' and sellers' growing list of gifts will be enough to help activate sales over the coming months is yet to be seen, but one thing is sure. Although relatively low inventory and steady prices haven't created the conditions necessary for a classic buyers' market, in 2023, everyone is looking for sellers, suggesting that more lavish gifts may be forthcoming over the coming two quarters.
New development condos with sponsor incentives
222 East Broadway
11 availabilities from $935K - $3.95M
3-year common charge exemption for a limited time
11 availabilities from $935K - $3.95M
3-year common charge exemption for a limited time
222 LES Tower + Lofts, #20B (Corcoran Sunshine Marketing Group)
16 West 40th Street
5 availabilities from $1.9M - $14.5M
Pay no common charges for 12 months
5 availabilities from $1.9M - $14.5M
Pay no common charges for 12 months
The Bryant, #PHS (Corcoran Sunshine Marketing Group)
100 East 53rd Street
9 availabilities from $1.595M - $29M
Two years of common charges paid by sponsor on contracts signed by 12/31/26
9 availabilities from $1.595M - $29M
Two years of common charges paid by sponsor on contracts signed by 12/31/26
Selene, #58A (Corcoran Group)
218 West 103rd Street
5 availabilities from $1.495M - $3.999M
Three years of common charges paid by sponsor on contracts
5 availabilities from $1.495M - $3.999M
Three years of common charges paid by sponsor on contracts
The Rockwell, #11E
$1,940,000 (-3%)
Broadway Corridor | Condominium | 2 Bedrooms, 2 Baths | 1,117 ft2
The Rockwell, #11E (Toll Brothers Real Estate Inc)
100 Claremont Avenue
11 availabilities from $1.2M - $3.995M
Free parking license with purchase for a limited time
11 availabilities from $1.2M - $3.995M
Free parking license with purchase for a limited time
Claremont Hall, #36B
$2,995,000
Morningside Heights | Condominium | 2 Bedrooms, 2.5 Baths | 1,514 ft2
Claremont Hall, #36B (Corcoran Sunshine Marketing Group)
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480 Kent Avenue
11 availabilities from $1.125M - $4.85M
Two years of sponsor-paid common charges
11 availabilities from $1.125M - $4.85M
Two years of sponsor-paid common charges
One Williamsburg Wharf, #21D (Serhant)
1411 Bushwick Avenue
2 availabilities from $625K - $645K
Down payments as low as 5% and mortgage rates as low as 5.625% are available through our preferred lenders for those who qualify
2 availabilities from $625K - $645K
Down payments as low as 5% and mortgage rates as low as 5.625% are available through our preferred lenders for those who qualify
Bushwick Avenue Lofts, #3C (THE BRACHA GROUP)
625 New York Avenue
9 availabilities from $540K - $1.495M
Adjusted pricing + 1% mortgage rate buydown (rates as low as 5.375%)
9 availabilities from $540K - $1.495M
Adjusted pricing + 1% mortgage rate buydown (rates as low as 5.375%)
Calvert House, #3H
$1,225,000
Prospect Lefferts Gardens | Condominium | 2 Bedrooms, 2 Baths | 1,225 ft2
Calvert House, #3H (Corcoran Group)
30-55 Vernon Boulevard
17 availabilities from $560K - $1.735M
Two years common charges covered by sponsor
17 availabilities from $560K - $1.735M
Two years common charges covered by sponsor
NuSun Vernon, #6P (GLOBAL REAL ESTATE VENTURES GROUP LLC)
28-08 21st Street
5 availabilities from $625K - $1.05M
Complimentary private storage unit with purchase; limited quantities available
5 availabilities from $625K - $1.05M
Complimentary private storage unit with purchase; limited quantities available
Twenty8, #PHA (Nest Seekers LLC)
NYC listings with special incentives
199 Mott Street, #PH1
$6,995,000 (-6.7%)
NoLiTa/Little Italy | Condominium | 3 Bedrooms, 3 Baths | 3,088 ft2
199 Mott Street, #PH1 (Conquest)
One Sutton Place South, #11C
$4,500,000 (-9.9%)
Beekman/Sutton Place | Cooperative | 4 Bedrooms, 4.5 Baths
One Sutton Place South, #11C (Brown Harris Stevens Residential Sales LLC)
One Domino Square, #22E (Compass)
The Brooklyn Grove, #17I
$2,400,000 (-4.9%)
Downtown Brooklyn | Condominium | 3 Bedrooms, 2 Baths | 1,582 ft2
The Brooklyn Grove, #17I (Nest Seekers LLC)
125 Schaefer Street, #TH (Compass)
One Manhattan Square, #21H
$2,185,300 (-1.6%)
Lower East Side | Condominium | 2 Bedrooms, 2 Baths | 1,156 ft2
One Manhattan Square, #21H (Keller Williams NYC)
34 West 74th Street, #PHB (Douglas Elliman Real Estate)
Southgate, #9DE (Douglas Elliman Real Estate)
The Hendrik, #3J (Compass)
88 & 90 Lex, #402
$1,325,000 (-5.4%)
Flatiron/Union Square | Condominium | 1 Bedroom, 1 Bath | 800 ft2
88 & 90 Lex, #402 (Corcoran Group)
The Aldyn, #1810
$1,275,000 (-8.9%)
Riverside Dr./West End Ave. | Condominium | 1 Bedroom, 1 Bath | 732 ft2
The Aldyn, #1810 (Compass)
The River Arts, #6B (Serhant)
15 Saint Marks Place, #6B (Manhattan Boutique Real Estate Inc)
75 Wall Street, #37K
$1,050,000 (-10.6%)
Financial District | Condominium | 1 Bedroom, 1.5 Baths | 826 ft2
75 Wall Street, #37K (Platinum Forbes Global Properties)
The Capri, #35C (Corcoran Group)
The Antoinette, #1B/C2 (Brown Harris Stevens Residential Sales LLC)
150 East 61st Street, #16D (Compass)
19 North Henry Street, #3A (Serhant)
Midtown Manor, #8E (Howard Hanna NYC)
240 East 46th Street, #7G
$689,000
Turtle Bay/United Nations | Condominium | 2 Bedrooms, 1 Bath | 750 ft2
240 East 46th Street, #7G (Compass)
1173 Rogers Avenue, #5-CC (REAVIS DEVELOPMENT MARKETING LLC)
435 East 65th Street, #3E (Douglas Elliman Real Estate)
Contributing Writer
Cait Etherington
Cait Etherington has over twenty years of experience working as a journalist and communications consultant. Her articles and reviews have been published in newspapers and magazines across the United States and internationally. An experienced financial writer, Cait is committed to exposing the human side of stories about contemporary business, banking and workplace relations. She also enjoys writing about trends, lifestyles and real estate in New York City where she lives with her family in a cozy apartment on the twentieth floor of a Manhattan high rise.
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