A new 32-unit development in Chicago is attracting a lot of interest these days due to its unique pricing strategy of absolutely no bargaining. The strategy for the Renaissance project has been named “pricing integrity”.
Units at the new development range in prices from around $250,000 to $350,000, and there are absolutely no discounts to be had as far as this price goes. This is a big difference from most other developers, who have been forced to offer huge incentives or slash prices to try and tempt investors in.
Instead, the developers at Renaissance aim to offer a different financial incentive, assisting with closing costs. But when it comes to negotiating on the price, they are standing firm.
Chicago real estate development consultant Hasani Steele says that instead of following everyone else and offering huge discounts, they are more focused on educating buyers on what they are getting for their money and why the price is justified.
“Some buyers find it appealing,” says Steele. “I say to people, this is what the price is. I explain to them that what they are buying is not only a condo, but a partnership with the other investors in the building. ‘It’s like buying into a vision’, I tell them.”
Steele says he realizes that back in the days of the housing boom, the pricing integrity strategy simply wouldn’t have been viable.
“People didn’t care back then, all they wanted to do was flip it or rent it out,” explained Steele. “But this is different, because people are getting emotionally attached to it. If people love something, they will buy it at any price.”
The unique strategy actually seems to be working out okay. Currently, just three units remain from the 32 that were up for sale at the beginning.