One strategy effectively used by developers to move otherwise stagnant inventory is that of the “loss leader”. They price one or two units in a building below market to generate interest, traffic and press, all of which can help in the selling of the remaining units in the development. As a result, buyers attracted by value get acquainted with the building and may even get into bidding wars over those specific units. Buyers will recognize this strategy because the units will likely be some of the first available in the building when sales begin, or when sponsor representation/strategy, changes. The price per square foot will typically be much lower than comparable apartments in the building and the units will likely not be on prime floors or boasting the best floor-plans; price will be the key factor. The sponsor is betting that, after losing out on the initial opportunity of the below-market apartments, buyers will opt for any of the remaining apartments.
The key is to recognize these opportunities when they arise while remaining disciplined about your original purchase intention. So many buyers out there come across such deals, pass them up (either because they unrealistically thought they could negotiate further or were not quite ready in the process to pull the trigger), and then compare all future properties to those past prices. Mistake. Do not anchor yourself on these door-buster prices as you evaluate remaining inventory or other comparable properties.