As we saw yesterday in my video tour with Tricia Fox, Trump International Hotel & Tower Chicago is just one example of a new high-rise with lots of unsold inventory competing against aggressively priced resales. This topic came up in my conversation with Coldwell Banker agent Jenny Ames, who wrote about the resale environment at Trump for her own blog in early January.
Along with people who closed on their homes and listed them for resale, some buyers who haven’t closed are attempting to sell their contracts through connections within the real estate market. Since they can’t list their contracts on the MLS, they’ve in effect created an “underground” market within the tower, Ames says.
I am a complete novice/idiot/uniformed when it comes to new construction. But something seems strange/fishy that flippers are able to under cut the developers by 20% or more at the Trump. I understand what Ms. Ames is talking about for Trumps bank might not allow the developer to price lower. But the flip side of this be, after all the pre construction/flippers buyers sell at a lower price would lower the comps and a buyer for the higher priced developer unit be declined a loan based on the assement?