Buying in a new development often means evaluating finishes in a showroom or model home, rather than in the finished unit itself, and relying on floor plans instead of walkthroughs. It requires a leap of faith that the final product will meet your expectations. Additionally, closing timelines can be fluid, and purchase agreements are typically written to allow for delays in favor of the sponsor. Peter helps clients see beyond the polished sales presentations, discerning the true value of what’s being offered and ensuring you get what you pay for. When you purchase a new development, you're buying the onetime right to be the first person to live in a brand-new luxury home. These properties often reflect a modern aesthetic with high craftsmanship, the latest technologies, advanced home security, energy-efficient temperature control systems, top-of-the-line appliances, custom millwork, and beautiful stone finishes. While everything is negotiable, ground-up new condos typically command premium prices. Construction in NYC is costly, and these developments are often situated in already expensive locations or in areas that developers anticipate will have strong demand for premium properties.

When you walk into a sponsor’s sales office, you'll be speaking with a broker—one who works for the sponsor. That agent's primary responsibility is to secure the highest sales price for the sponsor, and they'll ask you to sign a mandatory ‘NYS Real Estate Agency Disclosure’ form that clearly states this. Shouldn’t you have professional representation too? Let Peter arrange that crucial first visit to the sales office for you. Sponsors are serious about selling, which is a good thing. They can also be tough negotiators. We can make the difference between securing a great deal, overpaying, or missing out on a home that you love. Your representation matters. We have a track record of securing the best deals for our clients. We might know about unreleased premium units that aren’t marketed simultaneously with the rest of the building, which are often held back and released in stages based on market conditions, and their unique features. Have questions? We’re here to answer them. You’re also invited to book a complimentary new development buyer’s consultation. We want to be a key part of your real estate team.

So, is investing in one of the priciest new homes in the neighborhood the right choice for you? Here are a couple of thoughts sometimes overlooked in the excitement of seeing these often spectacular homes. Our experience shows that new developments will often hold their value and appreciate faster than older existing homes. Additionally, you’ll gain real benefits from original appliance warranties and protections under New York State law. Ask your real estate attorney to explain the “Housing Merchant Implied Warranty” that ensures developers will:
1. Address defects for one year from purchase.
2. Cover most mechanical systems for two years.
3. Protect against major structural defects for six years.

When you start looking, you'll find buildings at various stages of completion, and different projected delivery dates. Some may be ready immediately, while others could take up to a year to deliver. That raises some obvious questions for many of our clients about timeframes and living plans. Do they have property they expect to sell, for example? When moving into a new building, we encourage an approach to the process with patience and a flexible mindset. While construction delays, supply chain challenges, or the city’s Department of Buildings backlogs can occur, they are usually manageable—it’s part of the process. Rest assured, your move-in date will be confirmed as soon as your apartment receives its Certificate of Occupancy from the DOB. As we approach closing, we’ll conduct a thorough walkthrough of your new home to ensure it’s delivered in perfect condition—no chips, dents, squeaks, or dings. Should any minor issues arise, the sponsor typically addresses them within 30 days after closing, ensuring your new home meets your highest expectations.

Given the historical strength of NYC real estate, new condos are also popular as investment assets. The opportunity to purchase a condo and lease it out at the high end of market rents is particularly appealing to investors looking to diversify their portfolios. NYC condos, being smaller investment properties, are often viewed as relatively safe. Additionally, their professional management makes them easier to maintain for non-resident landlords compared to the upkeep required for an entire building. As you narrow your focus on a particular new development, it's important to consider how many units in the building have been purchased by investors who may rent them out. Buildings with a higher percentage of rental units can feel less intimate due to a more transient population. Furthermore, banks tend to be more cautious about lending in buildings with lower owner occupancy rates, as they perceive investor-owned units as higher risk. This can result in higher interest rates and more limited mortgage options. Understanding these dynamics will help you make a more informed decision about your investment.

When purchasing a new development, you may face higher closing costs compared to a resale. Building sponsors often shift costs to the buyer that a seller would typically cover in a resale transaction. These costs usually include property transfer taxes and the sponsor’s legal and bank fees, which are out-of-pocket expenses that aren’t rolled into your mortgage. In New York State and City, property transfer taxes can add up to $18,250 per $1 million of sale price up to $3 million, with an additional quarter point for sales above that amount. Additionally, you may be asked to contribute to the building’s ‘working capital fund.’ It’s not uncommon to see contract deposits higher than the usually standard 10% escrow, as well as being responsible for the seller’s and their bank’s attorney fees. Our goal is to negotiate these complex closing requirements, shifting costs where possible to benefit you. The market’s current conditions play a significant role in a sponsor’s willingness to offer discounts or incentives, and Peter’s expertise is key to navigating these factors—gauging the market’s temperature, local inventory, and how unique features like a wraparound terrace, views, or multiple exposures impact pricing. We’re here to guide you in structuring deals that work in your favor.