Are Pre-Construction Prices Negotiable? Yes but there is a BIG but.
One of the most common questions I get asked about preconstruction projects is “is the price negotiable”? While it’s always worth asking, 99.9% of the time, the answer will be no. Unless the developer has a reason they need to clear out inventory, they have no incentive to discount the price. Typically, they will offer other incentives like lower and more extended deposits before cutting prices. Think about it though - if the developer agrees, that might not be a project that you even want to be investing in because this usually signals trouble (project is not selling, developer finances are in trouble, etc).
Here are general rules to follow:
1) If the project has been on sale for less than 4 months, there will be no discount
2) If the deposit is 10% or less, there will be no discount
3) If units are regularly selling, there will be no discount
4) If the developer just changed the incentive plan, there will be no discount
In fact, for an active project, I have never been able to negotiate a discount. The only time I have been successful is when a random unit became available, long after the building was sold out. These are typically units that a previous buyer could not provide the next deposit for, and they defaulted on the unit, and the developer is reselling it. The developer doesn’t want to deal with this one-off unit, they have moved their staff and resources on to the next project a long time ago, and may consider dropping the price a tiny bit to get rid of this headache. These are RARE situations and might happen once a year.
So, while it never hurts to ask, never expect a price discount on a pre-construction property.
Contact Me if you want to be added to my notification list for when opportunities like this come up.