If you read Crain’s or the Wall Street Journal, you probably know that Donald Trump is having a tough time selling off the final 30 percent of the homes in his Trump International Hotel and Tower, and to make matters worse, flippers, who have been listing units at lower prices than the developer, have been undercutting his sales.
How are Trump’s problems affecting buyers though? Coldwell Banker agent Jennifer Ames offers some insight on her blog:
It is very hard to get financing to close on units in the building. Lenders are demanding exceptional credit and high down payments. Buyers who expected to be able to close with a minimum down payment cannot borrow enough today to close. Another challenge is that the units are not always appraising for their contract price.
Buyers are concerned that their homes might now be devalued because of rampant flipping, and Ames notes that “for buyers who bought later in the selling cycle, their contract price may be higher then the asking price of comparable units available on the re-sale market today.”
According to Ames’ Jan. 5 post, 62 condos and 52 hotel condos are currently listed for sale on the MLS, and another 27 condos are currently listed for rent. Prices for the condos range from the $570s to $9.64 million, and the average price of a hotel condo is $1.16 million, according to Ames.
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