360axis 88.com - Floors, Financing, Benchmarks - all bring deals in the high rises

There is a reason why certain units in some new condo buildings are better priced than others. It's of course due to square feet, higher floors, floor plan functionality, views etc. - but what many people don't realize is the impact of construction and resale financing on pricing. Few lenders - especially in today's tight lending marketplace - are willing to lend on a new construction condo building that is not yet 50% sold. This means requiring new purchasers to use limited financing sources, higher down payments and harder qualifications. Once a building hits the 50% sold benchmark, then many lenders jump in to offer loans on the remaining units - this accessibility to financing then boosts sales activity and sales prices. Developers also deal with the structure of their construction loans. For a premier high rise twin tower development in San Francisco, the developer was under pressure to sell out the first tower in order to pay off the construction loan that was nearing default. Once the loan was paid off, then the special deals went away, the developer was more financially sound and the prices went up on the remaining units. These forces are common place in new developments - and far more evident in a slow market with the additional dearth of financing. A strategy is to sell off the lower floors at a discount - sometimes even without profit - and to expect far better pricing on the upper floors once financing and momentum take hold. So... when and what to buy? There are deals out there, let us guide you.