nyc BLOG estate

nyc BLOG estate

New Development Resales: A Real Good Deal

If you're looking for new construction you might save thousands of dollars by buying a resale in a brand new building. When a buyer purchases a condo or coop in a new development directly from the sponsor(developer)the buyer is usually required to pay New York City and New York State transfer tax.

When buying from a sponsor in a coop,(unsold shares) the transfer tax is not only the amount of the sale price but the portion of the underlying mortgage allocated to the shares associated with the unit being purchased.

In resales seller's pay transfer taxes. NYC transfer tax is 1.425% of sale price above $500,000.

New buildings usually start selling pre-construction about 2 years before the the building is ready for occupancy and the units close. Often the best lines sell out early. By the time the building opens there are usually a few resales. Either units never lived in purchased by flippers or a unit that might be for sale because of personal reasons.

If you missed out on a building you like during pre-construction sales buying one of the first resales in a new development has some advantages. In addition to not paying transfer taxes and other possible sponsor related closing costs you can have more instant gratification. You get to physically see the apartment, the fixures and the view in person. In pre construction you buy off a floor plan and brochures.You don't always get to see the building or the apartment you are purchasing. You don't have to tie up your 10%-15% deposit for a year or more.

Interested in New construction consider the advantages of a resale. If you would like to receive new construction listings by email including resales click here.

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