Brokers speculate on Wall Street bonuses

New York /
Dec.December 10, 2010 01:30 PM

88 Morningside (left) and 2280 FDBWall Street bonuses can have a huge impact in the real estate industry and this year is no exception, as brokers and developers speculate over whether bonuses may come early so that recipients can avoid potential tax increases. Since the recession, bonuses have been up and down. Some sellers, particularly developers of new condominiums, have already seized on the early-bonus scenario, according to the New York Times. A recent press release from the developers of 2280 FDB, a new condo in Central Harlem, said buyers “anticipating big holiday payouts this year” could receive 10 percent of their bonus amount — up to $25,000 — in concessions if they signed a contract on selected apartments before Dec. 20 and closed before Feb. 28. But over at 88 Morningside, a new development also in Central Harlem, buyers who do not get a bonus can get a $10,000 discount if they sign a contract between now and Jan. 31 on a one-bedroom apartment. Whatever the outcome, bonuses are a “hook surrounding something everyone understands,” and a smart marketing tool, said appraiser Jonathan Miller of Miller Samuel. But Miller also advised sellers to remain cautious, regardless of what happens with the size of bonuses or the tax breaks. [NYT]


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