Why do developers offer properties at a discount?
A. The main way we secure discounts on the properties we offer is to sell in bulk. We commit to sell a number of properties for the developer and as such are able to negotiate a discount on the properties for our clients. Developers are also much more likely to offer discounts as they are in business to build and sell property. Unlike an owner occupier who may be emotionally attached to selling his property for the highest possible price and who may be in a chain situation, developers need to sell property to stay in business. For example developers will often offer discounts for off-plan sales to generate capital to fund a future development. For lenders to lend to a developer on a project the developer may have to sell a number of unit’s off-plan to secure the funding. The best way to get some off plan sales is through offering discounts. The developer will often discount the first few properties at this stage simply to ‘prime the pump’. It is often easier, quicker and safer for deve
