Sellers Offer Incentives – Cars, Cash, ‘Price Drop Guarantees’

“I drove by a new development in North Van over the weekend called the Kimpton. They’re offering crash insurance – a $100k price-drop guarantee.”
crabman at VCI 5 Nov 2012 6:20am [This story also headlined at VCI 7 Nov 2012. Visiting the Kimpton website, one is rewarded with walls of muzak, but no ‘guarantee’ info. Fortunately, ‘Not much of a name’ at VCI has done some work on this: “Just called the Kimpton’s sales office to get clarification on how the price drop guarantee works. The $100,000 gets paid into trust and at the end of the two year period, an appraiser is brought in to value the property. If the value drops (ya, like it won’t) you get refunded that amount by up to $100,000. Oh, and apparently today is the last day for this promotion and guess what…there will be a “blowout sale” this weekend to move the final five units. I was told that five sold last week so I should hurry and buy. Funny how there were only four units left prior to putting up the price drop guarantee on the sign.” -ed.]

“Just received an e-mail from Bosa (this is the new building in false creek) and seems like all the developers started to promote cash credits or other price guaranties. This is what it says :
$5,000 credit on all One Bedroom Homes
$7,500 credit on all Two Bedroom Homes
$10,000 credit on all Larger Two Bedroom Homes
They started selling in May but apparently must be having a hard time with current pricing so giving some discounts maybe will push a bit faster.”

piklishi at VCI 7 Nov 2012 7:07am

“There are other schemes too. Care to help me formulate a list? Here are some to start:
– “Fire sale” prices, a giant weekend sales push well below market price
– 2 for 1 deals (buy a condo, and get another condo in Ohio for free)
– Developer pays your mortgage and strata fees for the first year”

jesse (YVRHousingAnalyst) at VCI 7 Nov 2012 9:56am

And, of course, let’s not forget:
“A brand new 2012 FIAT 500 Pop is a present to you if you purchase 2575 W7th Ave!”
Philip Chan, realtor selling a Kits townhome he owns, Oct 2012

17 responses to “Sellers Offer Incentives – Cars, Cash, ‘Price Drop Guarantees’

  1. I wonder if the appraiser is the developer’s brother in law….

  2. Many new developments are offering a special low interest for 1-3 years. Actually a subsidy from the developer, but the effect is the same. Balloon rate mortgage sound familiar?

  3. Desperate measures for desperate times.

  4. 4SlicesofCheese

    I wonder if the owners at woodwards are budgeting for having to pay for strata fees once that returns.
    I am sure they have, but what is an extra 200-500/month anyways?

    • How about: “You won’t pay the strata fees for 3 years, and neither will we, then you can pay the special assessment when the building starts to fall down in 3.5 years.”

  5. Real Estate Tsunami

    In Richmond, on Shell Road and Steveston is a 25 unit Townhouse complex. After about 2 years, 14 units remain unsold.
    Now they are giving away a 2012 Honda Civic and Net HST.

    • This is developed by Mukhtiar Sian. He has more on Williams rd by 3 rd.

      • Real Estate Tsunami

        How can he carry so much unsold inventory for so long?
        Even with the low interest rates. Somebody must be taking a bath.

    • Who wouldn’t want to buy a home and raise a family on a busy arterial with cars whizzing by at 80 km/h? Silly buyers ; )

  6. Just like buying a 3 for 1 sale on underpants at Loblaws…..gotta move some inventory!

  7. “Luxury concrete residences.” Ooooh!

  8. “Now they are giving away a 2012 Honda Civic”
    Sales are slow BUT selling prices are not falling.

  9. Speaking of crash insurance and ‘other schemes’….

    “The individuals that are committing these scams are preying upon their emotions and possibly their beliefs.” – Const. Brian Montague, VPD

    [CBC] – Scammers prey on Vancouver Chinese seniors

    …”Const. Brian Montague said that since last June, seven elderly Chinese women have been approached on the street and told they were being followed by a ghost or evil spirit and that one of their children would die.

    Montague said that in each case, a group of Cantonese-speaking Asians convinced the seniors that for $20,000 in cash and valuables they’d be given a lucky jade bracelet* or a bottle of blessed mystical water* to remove the bad luck.”…

    [NoteToEd: * – or a Condo & Fiat500/HondaCivic?]

  10. Pingback: Agree To Buy A Condo; Earn Money! | Vancouver Real Estate Anecdote Archive

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