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A developer’s reputation is important. What is their track record for first-class construction with a high level of craftsmanship? Developers always claim to deliver ‘luxury homes’, yet the quality gap of construction and design between different new buildings can be pretty wide. We can help you evaluate the quality of build, and level of finishes. We’ll do that based on what’s important to you. Are you a kitchen person or a view buyer? Oh snap, you want both! Unlike a resale with one or two units available at any given time, we can often show you multiple units in the same building and offer you some interesting choices.
Will you get what you paid a premium for? Buyers will often look at finishes in a showroom or model home, rather than in a finished apartment, and buy off a floor plan, rather than a walk-through of the actual unit you are buying. It is a leap of faith that the finished unit will match your expectations. Closing time frames with new developments are somewhat fluid, and the purchase agreements are written in favor of the sponsor to allow for delays. Peter helps clients see beyond the slick sales office presentations to discern the differences, and evaluate the genuine value of what’s being being offered to his customers.
Well, when you walk into a sponsor’s sales office you will be talking to a broker who works for the Sponsor. That agent’s responsibility is to obtain the highest sales price possible for the Sponsor; and will ask you to sign a mandatory ‘NYS Real Estate Agency Disclosure’ form that says so. Don’t you deserve professional representation too? Let Peter set-up that very first visit to the sales office.
Sponsors are never casually testing the waters. They actually need to sell and can be notoriously tough to negotiate with. Peter’s advice is never step into a sponsor’s sales office on your own. Bring us. That’s where Peter’s experience can make the difference between a great acquisition, overpaying, or missing an opportunity on a home that you love. Your representation matters.
In the past, we’ve been able to obtain better deals for our clients. We will negotiate on your behalf for the best terms and incentives. We are often able to gain access to the best unreleased premium units for our clients too (not every unit is marketed simultaneously). It depends a lot on the temperature of the market and the uniqueness of that particular unit. Contact us with your questions. We will answer them. You are invited to book a complimentary new development buyer’s consultation. We want to be on your real estate team.
Consider how this fits— you are buying the one time right to be the first person to live in a brand new luxury home. It will come with a modern aesthetic, a high level of craftsmanship, the latest technologies, home security features, more energy efficient systems for temperature control, and top-of-the-line appliances. Many will feature fine cabinets and other millwork, custom lighting fixtures, with gorgeous stone and tile finishes. Everything is negotiable, but ground-up new condos do attain premium prices. Construction in NYC is expensive, and you’ll often find them being built in already pricey locations, or along the edges of them. These tend to be neighborhoods that developers bet will have strong demand for new premium product.
Is buying one of the priciest new homes in the neighborhood the right fit for you? Our experience is that for buyers, new developments will often hold their value and appreciate quicker than existing homes. You’ll get the original appliance warranties, and New York statutory law protects buyers of new construction by recognizing a “Housing Merchant Implied Warranty” which compels developers to assure against defects for one year from the purchase; most mechanical systems are covered for two years, and major structural defects for six years.
If you’re moving into a new building, we counsel our customers to be patient and flexible. There might be construction delays, supply chain issues, a backlogged NYC Department of Buildings (DOB), or other speedbumps. These are not uncommon and even to be expected within reason, but your move-in date can’t really be firmed up until a Certificate of Occupancy for your apartment clears with the DOB. Negotiating an opt-out clause if your apartment isn’t ready for move-in within an extended period of time (an outside delivery date) may offer you some protection if the sponsor does not perform as promised; but be prepared for a somewhat soft target date. Before your closing, we will walk through the property with you and note any minor details which may need to be addressed. It should it should be delivered perfectly, with no chips, dents, squeaks, or dings. The sponsor will generally be allowed to correct issues within 30 days after closing.
Because of the historic strength of NYC real estate, new condos are popular investment assets too. The ability to buy a condo and lease out the apartment at the high end of market rents, is attractive to an investor seeking a portfolio diversified with real estate. As smaller real estate investment assets, NYC condos are considered by many as relatively safe. As a professionally managed property, it is easier for a non-resident landlord to operate it, as opposed to the maintenance and upkeep of an entire building.
As you get focused on a particular new development, you’ll want to understand if many units in the building have been bought-up by investors who then likely rent them out. With a more transient profile a building can feel less intimate. Banks are also more cautious about lending in buildings with low owner occupancy, as underwriters see investors as riskier. That can mean higher interest rates, and more limited mortgage options.
Building sponsors will often ask for you to pay for things as a buyer, which a resale owner would traditionally pay for when they sell an apartment. These usually include the property transfer taxes and sponsor’s legal and bank fees; and are out-of-pocket, not rolled up into the mortgage. New York State and City Property Transfer Taxes are a hefty $18,250 out of pocket for every $1 million of sale price up to $3 million, tack on another quarter point on sales above that. You will be asked to contribute into the building’s ‘working capital fund’. Contract deposits scheduled above the standard 10% escrow are not uncommon; as are paying for the seller’s and his bank’s attorneys. We negotiate these complex closing requirements, and shift who pays for what, to deliver in your favor as much as possible. The temperature of the market will color a sponsor’s tolerance for discounts and incentives. Peter’s job is to be like a thermometer—reading the market’s heat, the local inventory, and how unique features of a particular unit like a wrap-terrace or multiple exposures will affect price. We have the guidance to structure deals that work for you.
We sell real estate, not your data
Search for new development homes here on comitini.com with a free account, and contact us early in the buying process with your questions. We add value to every client we represent. Is Peter the right fit for you? You’re invited to use the button below to book a free new development buyer’s consultation with Peter, without any obligation. Don’t walk into a developer’s high-pressure sales office without the representation that you deserve. We can help.
Licensed Associate Real Estate Broker
Licensed Associate Real Estate Broker
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