Condo Developers Sweeten The Bait

KSI Services, whose properties include Midtown Reston Town Center, said its condos are a good value. It is focusing on displaying well-furnished models for units still under construction instead of reducing prices.

"Before, we didn't have models because the units were sold out before you even had a chance to look at a model. People purchased based on floor plans and brochures," said Jamie Gorski, KSI's chief marketing officer. "Now, if I'm selling just off of brochures and floor plans, people can walk down the street and buy something else" that's ready for move-in.

No matter what their situation, most developers are courting the real estate agent community they once shunned, promising lavish perks for those who come through with buyers.

"At one point the builders wouldn't even let us bring the clients we were representing," said Charlene Lois Schaper, an agent at Long & Foster in Old Town Alexandria. "Now they're offering us bonuses, paying us commissions and serving us lunch."

Schaper now has a sheaf of fliers she's received from developers. One from Toll Brothers, for example, recently promised a 3 percent commission for the first sale, a 4 percent commission on subsequent sales and a $5,000 bonus on nearly completed condominiums at the Belmont Country Club in Ashburn.

Another firm dangled a "fantastic getaway for two adults" at the One&Only Ocean Club in the Bahamas for those who sell units at the Turnberry Tower in Arlington. "The more homes you sell, the more lavish and exciting your One&Only Ocean Club vacation becomes," according to the brochure.

Real estate experts say that consumers need to be aware that the real estate agents handling their transactions may be earning more than the ordinary commissions. Savvy consumers inquire about any additional perks and try to get some value out of the additional compensation themselves, said Dave DeSantis, vice president of sales and marketing at PN Hoffman, which is marketing the Alta, Chase Point and Union Row in the District, and Carlyle Square in Alexandria.

"Consumers end up asking for the [agents'] incentives," DeSantis said. "Technically, if your real estate agent gets money or a lease or some other perk, that's a financial element of the transaction that should be disclosed."

PN Hoffman recently began dealing with agents for the first time in several years and offering them commissions, not freebies. When the market was super-hot, many companies saw no need to compensate agents because buyers were lining up outside their doors on their own.

The marketing spree aimed at consumers and agents is more a sign of the changing market, DeSantis said.

"If you had come in two years ago and tried to offer less than the asking price for one of our condos, we would have been polite about it, but we would have said: 'Sorry, there is somebody right behind you willing to offer full price,' " DeSantis said. "Now, it's no secret we're willing to entertain offers."