May 1, 2008
The Potrero Update: 85% Sold And Offering 12 Months Paid Mortgage
According to a plugged-in tipster, The Potrero has moved roughly 25 units over the past five months (~5 per month) and is now 85% sold with 25 condos left to move. And as of today, the sales team is offering twelve months of paid mortgage payments on any of the remaining units (versus only six months on one-bedrooms earlier this year).
The Potrero Sales Team is proud to announce an unbelievable, limited-time incentive - No Mortgage Payments for 1 Year* on any of our 25 remaining homes! This offer starts May 1st and must end June 15th, so don't miss the chance to take advantage of our attractive prices and this special incentive.
A bit of the fine print: first mortgage only with a maximum loan to value of 80%. No word on what happens if you're currently in contract but haven't already closed (although we can probably guess). And once again, don't forget to adjust those future median sales price and comp calculations accordingly (as they'll be overstated by somewhere around 6%).
∙ A New Incentive At The Potrero: Six Months No Mortgage Payment [SocketSite]
∙ The Potrero (451 Kansas) Update: Now 70% In Contract Or Closed [SocketSite]
First Published: May 1, 2008 1:16 PM
Comments from "Plugged In" Readers
Just lower the asking price!
Posted by: satchelfan at May 1, 2008 1:32 PM
And once again, don't forget to adjust those future median sales price and comp calculations accordingly (as they'll be overstated by somewhere around 6%).
Yeah just cut out all those Realtor fee's right -- then it's a GREAT deal - but wait - no Realtor fee's, no Realtor's, no Realtors, no one paying astronomical prices to advertise on this blog, no advertising money, no Socketsite anymore. What a conundrum and hence the problem with this blog. Critical of the very industry that allows you to sit in your throne and cast judgement.
[Editor’s Note: We’re estimating the value of the incentive (12 mos. paid mortgage) at around 6% of the sales price. Hence, recorded sales prices will be effectively overstated by...6%.]
Posted by: Coach A at May 1, 2008 2:32 PM
Are they providing the financing too? I can't imagine arm's length lenders in today's environment being crazy about funding 80% of this "purchase price".
Posted by: scott.h at May 1, 2008 2:53 PM
Not a bad deal. 600k mortgage is over 3k/month so you basically save well over 36k. Who gets the deductions though?
Posted by: missionbayres at May 1, 2008 2:58 PM
This is not a good deal. Last time I checked (sometime in the last 2 weeks), the remaining 2-bedrooms were pricing out between $800-$1000/square foot.
Even with the incentive, the units are overpriced.
Posted by: PessimisticBear at May 1, 2008 3:21 PM
I'm sure you can always negotiate the mortgage incentive versus listing price. For example, push for a lower listing price and negotiate for a 6-months paid mortgage incentive instead of their 12-months paid mortgage offer. Whatever the case maybe, the offer gives you another tool to use during negotiations.
Posted by: SC at May 1, 2008 3:41 PM
"I'm sure you can always negotiate the mortgage incentive versus listing price."
Don't count on it. Incentives allow developers to hide reductions and maintain comps/prices in the building/area. Keeps those who have already purchased happier and doesn't tip their hand for any future negotiations.
Posted by: Michael at May 1, 2008 4:10 PM
My real estate agent spoke with them and said that the incentive could be used in any combination toward mortgage payments, unit price, interest rate buy-downs, and/or HOAs.
The savings packages start at 22k (for studios) and extend to 47k (for the 3 bdr townhome) and depend on the South Building unit prices.
There are some North Building units left too and, although the mortgage incentive does not apply to them, the sales agent said they have more flexibility with those.
Posted by: Baraka at May 1, 2008 6:46 PM
This is a terrible deal. I would rather have them discount the price by 36k. That way, my properties taxes will be lower by $500.00 a year. Also, the units are grossly overpriced.
Posted by: Steve at May 1, 2008 11:13 PM
I agree, I think just cutting the price would be a better deal. It seems that they could retract the no mortgage deal at anytime and it is sort of nebulous.
Posted by: San Mateo Home Sellers in Trouble at May 2, 2008 12:00 AM