NYC Developer Hunts for Homebuyers Squeezed by Borrowing Costs
Extell Development is employing an incentive to attract buyers spooked by this year’s more than doubling of borrowing costs.
A bedroom at a home in One Manhattan Square.
Photographer: Evan Joseph/M18PRA New York real estate developer is trying a different tactic to sell apartments at a time of skyrocketing borrowing costs: an offer to pay down the buyer’s mortgage rate.
Reducing a buyer’s potential borrowing costs — an incentive used by homebuilders this year as the market has shifted — is a more unusual perk for New York City’s competitive housing market. But Extell Development is seeking to spur sales at two of its buildings, One Manhattan Square and Brooklyn Point, by offering to buy down consumers’ mortgages rates by 2 percentage points annually during the first three years of their loans.