My girlfriend Lila (who already has an excellent post about The Cleveland) and I went to visit The Cleveland in person today. It was late in the day, raining, and we had just finished up visiting another project. Still, we learned some valuable information and got to see the room layouts in person. I have to say that they look bigger in person than one imagines from the floor plans.
After coming back home, we again went over the numbers we had gathered about The Cleveland, looking for some more patterns or discrepancies. Comparing the price of identical floor plans on the resale market to that which the builder is selling, we found something that makes perfect sense but still made us quite peeved. The two prices are identical!
- Let us compare units 513 and 506, identical floor plans on opposite corners of The Cleveland. Looking at the sales history for unit #513 and the asking price for unit #506, we see that unit #513 sold for $394k in early July, and was then resold for $467k. The price the builder is asking for #506? $467k! Yet obviously anyone could have gone there back in July and bought it for around $394k.
Normally this would seem like common sense behavior, if you sell something for X, and the guy next store can sell it for X+1, you need to raise your price, you are selling too low. But this is not the situation with condos right now, instead I would argue that the $467 price was inflated by a bubble and that the original price should still hold true.
The lesson here is to always do your research and to be an informed buyer.