From a plugged-in tipster living at 74 New Montgomery:
[I] attended an HOA meeting [at The Montgomery] last night and the developers announced they had sold 55 units (out of 107) and that 13 have gone into escrow since the recent price decrease…so the price drops did a pretty good job stimulating interest, nearly 20% bump in sales in a very short time.
From the sales office via another:
As you know, The Montgomery is the only development in San Francisco to offer all brokers a generous 4.5% commission. To further show our appreciation, we are pleased to announce the extension of this unsurpassed offer. The Montgomery’s 4.5% broker commission now expires on May 31, 2009*.
And an editorial comment from said another as well:
This demonstrates one of the continuing pervasive problems that contributes to the real estate problem…Instead of decreasing prices, some developers think they can drive traffic by raising broker fees, but this just wastes more cash by diverting it to unproductive hands.
The recent sales results are likely a combination of the two (price cuts and commission). And perhaps some hands do become more productive when “generously” motivated than one might think (or hope).
∙ A Plugged-In Reader’s Perspective On The Montgomery And Its Cuts [SocketSite]