Prices drop, developers offer incentives as Vancouver condo market cools off

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How things have changed: One developer is offering a $100,000 bonus to encourage presale buyers to complete their contracts.

When the Vancouver real-estate market was hot, presale condo buyers lined up overnight to snap up units at new projects and many people could profit by selling their contract on to another buyer.

The seller seems willing to lose hundreds of thousands of dollars — considering the transfer fee, realtor commissions and any negotiations with a buyer — to avoid having to complete the purchase of the condo, said Sutton Group West Coast agent Ian Watt. Recently, Westbank Corp. notified over 30 presale buyers at its Vancouver House project in downtown Vancouver, which is to be completed this summer, that they would not be allowed to assign their units to new buyers, and asked them to remove their listings from the MLS.

The unit was recently listed for assignment at $11.888 million and then reduced to $10.888 million, before Westbank said it would no longer allow assignments, meaning the original buyer must finalize the deal with the developer for $4.25 million.

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