In an effort to draw in new buyers without lowering prices, Toll Brothers is offering to pay buyers' taxes on two new developments in Manhattan.
CNBC reports that the builder, which has a premium “City Living” line of condos, has a deal that will pay mansion and transfer taxes, which amount to 2.5 percent of the purchase price. Given that these are for multimillion dollar properties, the discount can come out to as much as $250,000.
"They're trying to pull out all the stops before they have to lower the price," said Jonathan Miller of Miller Samuel, a New York-based real estate appraisal and consulting firm. "Much like with rentals, they're doing everything they can to protect the asking price, so it doesn't damage the units that haven't sold."
Manhattan’s luxury condo market is flooded with new construction. The supply of condos for sale rose 34 percent at the end of 2016 compared to 2015, but the median sales price dropped 44 percent during that time frame.