In places with no or weak laws regulating condo conversions, negotiating with the converter is an important tactic. Concessions won this way are nothing to be sneezed
at. They might include lowering the sales price for all units, paying moving costs and relocation bonuses, extending time for tenants to move, or even reserving
some units for low- and moderate-income tenants.
Negotiating for concessions is actually another term for squeezing the converter’s profits. It’s possible — even though many of the concessions listed above are quite costly to the developer — since speed is one of the important factors in the most lucrative forms of conversion. The converter’s objective is to sell all the units in a building as quickly as possible and move on, tying up borrowed capital as briefly as possible. So substantial concessions often will be made simply to avoid delays.
