SF: Esprit Park Guaranty and Pricing for 1BRs
With a large number of new condominium units slated to come online in SF in the next 12 months or so, one can’t help but feel a bit nervous that developers may have to slash prices in order to move all of their inventory. A price reduction on perfectly comparable units could be a disaster for anyone under contract at pre-slash prices. Though developers tend to hold prices steady and instead offer incentives when trying to move units, outright price reductions are not totally unheard of. To address the concern, Esprit Park announced the following guaranty today:
When you purchase a home in our community, we will assign one or more similar properties in the project to your purchase contract. Should any of those assigned homes reduce in price or be sold at a lesser price than originally listed, we will reduce the price of your home as well by the same percentage amount prior to your close of escrow. No questions asked.
It would be interesting to read the fine print on this offer and would be nice if it included the value of any incentives offered as well as outright reductions, but the concept seems like a good one.
In the same release, Esprit also announced a $635k starting price for 1 bed 1.5 bath units. No word yet on pricing for the larger units.
Red said:
Well, at least it takes some of the risk out of it. I don’t understand why anyone would buy a condo right now; there are lots of nice condos for rent at far less than the cost of purchase, and if you rent there is no risk of loss due to falling prices, or from the costs of selling if you have to move. Values are very unlikely to go up much soon, if you have to sell the realtor alone costs you 6% = $38,000. (oops, ok, maybe not, this is redfin).
And there are a lot of new condos coming on the market – oh, my….
November 16, 2007 7:04 PM