Eric Zipkowitz, a partner in Tarter Krinsky & Drogin’s Real Estate Practice Group, was quoted in the Real Deal article "Weak new development sales spur buyer guarantees." The article addressed the national price protection program that gives buyers of new condominium units a qualified price guarantee to sell their unit at the original sale price on the 10th anniversary of the purchase.
Under the program, a financial firm based in Manhattan takes 20% of the sales price, which has to be either paid by the developer or added as a higher cost to the buyer. Mr. Zipkowitz said that he thought the developer would bear most of the cost. “It is a wonderful marketing gimmick,” he said. “I think there will be success from sponsors with lots of units to move….”
Eric does not foresee significant demand for the guarantees in New York City, where most buyers typically own their units for five or six years and would balk at paying a premium for a 10-year guarantee. However, he said that foreign buyers might be interested because they tend to invest for the long term.
To read the full article, click here.
|Zipkowitz, Eric Partner||Partner||212.216.8088|