Case Study: Madison Place – Madison, NJ

Madison Place is a boutique collection of 35 luxury condominiums within walking distance of Madison, NJ’s picturesque downtown. Within minutes, you can be at your favorite coffee shop, restaurant or boutique—or on the train with a direct line to Manhattan. One, two, and three-bedroom condominiums are offered in this Silver LEED Certified building, with each residence assigned two under building parking spaces. The site is a designated redevelopment area having previously been a vacant public school, which was razed. Prices range from the upper $500’s to over $1.2 Million.

The Challenges:

  • Total cost of ownership was a common objection. Market oversupply of estate homes resulted in lower market values for many prospects’ current single-family homes. The 12/2017 Trump tax legislation capping real estate tax deductions across all of one’s homes at $10k created an unprecedented obstacle, with most prospects owning multiple homes. As a result, many prospects were ambivalent to buying a move-down home in NJ or moving to a lower-tax state.
  • The builder had an ironclad policy of “no changes/customization”, instead offering 5 designer selected finish packages in purchase price.  Buyers scaling-down from $1M+ custom homes often objected. The Sales Team sold the builder’s quality orientation, luxury finishes that were standard but upgrades elsewhere, and flexibility for purchasers to customize homes post-closing. They painted a scenario that buyer closed on Monday, brought in contractors (closet customizer/custom painter) during the week, and moved in on the weekend – turnkey and seamless.

The Strategy:

  • The project was conceived, designed, tested, marketed and sold with an age-targeted buyer in mind. We successfully captured these buyers by asking and giving them what many of today’s move down buyers want – a new, move-down home in a vibrant, walkable downtown location at a price point and home size of 70-80% of their previous home.
  • These stylish homes are adorned with the amenities and features that today’s buyers desire and expect in a maintenance-free, luxury lifestyle, without over-the-top onsite lifestyle amenities that increase monthly HOA and total cost of ownership. State-of-the-art appliances, beautiful flooring and upscale finishes are what truly distinguish Madison Place.
  • Community is targeted to affluent local market area move down buyers. A two-person sales team was put in place; an experienced new homes Sales Manager, and Sales Associate who is a native of the municipality and could reinforce and personally attest to the wonderful quality of life the town offers. The Sales Team emphasized benefits of staying local and the municipality’s relatively low NJ tax rate.
  • Sales were by appointment, emphasizing the community’s exclusive nature. The Sales Team set back-to-back appointments with qualified prospects, creating urgency.

The Results:

  • Sold out
  • 60% prospect appointment to contract conversion rate

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