As the year winds down, there’s now a rush among the well-heeled crowd to close deals on residential properties in order to beat the tax increases that could take effect on New Year’s Day, the Wall Street Journal reported. Though year-end rushes aren’t uncommon, the Journal said, adding fuel to the fire this year are potential tax increases on real estate, for example, that are in play as politicians work to steer clear of the fiscal cliff.
Some homebuyers have reportedly found significant discounts by consenting to pay all cash for their deals by the end of this month. On the other hand, other deals were constructed to fall apart if they don’t close by midnight on Jan. 1.
One challenge to closing by the end of the year: Building management companies that oversee the closings for boards of exclusive buildings are now backed up. “The hot ticket in town at the end of the year is getting a closing schedule at one of the top managing agents,” Meredyth Smith of Sotheby’s International Realty told the Journal.
Douglas Elliman’s Dolly Lenz said that the city’s most selective co-op boards — from Park Avenue to Central Park West — are cooperating. She said she’s working on several deals in which sellers are offering discounts of $100,000 to $300,000 if the deal closes before year’s end.
And it isn’t just uptown. Robert Dvorin of Town said he’s representing buyers who got discounts downtown after agreeing to close before the ball drops and Champagne bottles pop. [WSJ] — Zachary Kussin