If you’re in the market for a home, you may or may not have considered looking to buy a new development or new construction home in New York. These are homes for sale by a builder or developer and are brand new homes where you will be the first to occupy, meaning they are not previously owned by anyone. Learn more about taking the new development route to buying a new development home in New York and avoid the stress with these five insider tips.
1. Get in Early when Buying a New Development Home in New York
New development homes are usually decked with over-the-top amenities to attract potential buyers. While construction is happening, you won’t be able to see the actual apartment you are purchasing, instead there is usually an off-site sales office with life size examples so you can get an idea of what the finished product will look like. In New York, some developers or sponsors will have a showroom or a model apartment in the building that allows you to step onto the premises to get a feel of the location and building amenities itself.
While these all give you an idea of your potential new property, buying a new development home in New York will involve some creativity and vision to make it a reality.The Real Estate Rebate Team can help provide guidance on the best fit for all your needs and help you get your commission rebate at closing.
Since you are in the early stages of the process, it’s actually the best time to consider buying a new development home in New York as it provides you more benefits than you know. Such as:
- Allows you the opportunity to choose the nicer unit and discover more apartments available than what is listed.
- More availability which gives you priority to choose exposure, finishes and a unit on a higher floor.
- Potentially lower price as developers are eager to get a few contracts signed in order to attract further sales and show lenders’ progress.
- Buying a new development home at “Schedule A” pricing or better. Schedule A is a listing of all apartments in the building and is not public information. Usually, Schedule A is only released once an offer has been accepted and is provided along with the offering plan at closing.
- Minimal bidding wars, if any. Once you make an offer, the developers won’t entertain other buyers for the same unit unless something falls through with the contract.
- Typically, there wouldn’t be a board approval required when buying a new development home so closing can be quick and simple.
2. Buy a New Development Home off-the-plan
Many new development homes are sold at a premium price to the market, however if you get in early and buy off-the-plan, you may be able to buy at “Schedule A” pricing, which is the lowest price possible.
Off-the-plan properties are usually not completed at time of purchase and are still under construction. Though it may seem risky to buy something you haven’t really seen, as long as you do your due diligence, your investment will be well worth it. With top amenities and finishes, if you get in early and purchase Schedule A pricing, you can maximize your return on investment in property value if you plan to resale later down the road, especially in New York.
Furthermore, you’ll be the first to live in the space since it’s an off-the-plan property and the exclusive benefit and personalization is well worth it. Choosing the Real Estate Rebate Team when buying a new development home can provide you the full suite of services, expertise, and commission rebate.
3. Find an Expert Broker when Buying a New Development Home in New York
When buying a new development home in New York, there are many things to take into consideration such as the building architecture, building types, location and floor plan, amenities and more. Particularly in New York, having a dedicated and experienced broker agent can help you through the process and has access to information you won’t be able to find on your own.
In most instances, developers or sponsors will not give you a discount for buying a home without a broker as this can affect their bottom line. New York developers or sponsors will know you’re a serious buyer and willing to negotiate when you have representation from an established broker. Remember that the seller or developer pays the broker’s commission so it’s no risk to you to take advantage of the opportunities a buyer broker can provide. Such as:
- Ability to secure the off-the-plan listings and new developments that are not yet available to the public or on the market.
- Secure “Schedule A” pricing, floor plans and unreleased units not available allows you to pick the best unit in the building.
- Ability to get a showing prior to the new development hitting the market.
- Industry connections and knowledge to navigate buying a new development home.
- Ability to negotiate and advocate on your behalf.
- Negotiate concessions (perks or bonuses developers will give to a buyer).
- Offer advice and guidance on buying a new development home.
- Offer referrals to established and experienced real estate attorneys to execute contract of sale, offering plan and closing costs.
- Get cash back and save on your new home with a commission rebate with the Real Estate Rebate Team
When working with the Real Estate Rebate Team, we walk you through each step of the process ensuring you are informed to make the right decisions and earn your commission rebate at closing.
4. Negotiate when buying a New Development Home in New York
In most real estate transactions, everything is negotiable. Many developers or sponsors are more willing to negotiate on upgrades, finishes and closing costs as these are privately negotiated items to get the deal done. They are less willing to budge on price as this can affect other sale prices for other units in the building.
Choosing an experienced New York broker with industry experience can ensure your voice is at the closing table so it’s definitely worth asking for everything you want. They are skilled at negotiating and will work hard to get you everything you want. From closing cost fees like transfer tax and attorney fees to custom closets and built-ins storage, depending on the demand of the units in the building, some developers may be willing to pay a higher commission which can mean higher commission rebates back in your pocket.
The Real Estate Rebate Team can negotiate on your behalf to get you your price and even the down payment so that you go into closing confidently and receive your commission rebate at the closing table.
5. Buying a New Development Home in New York Closing Process
Offering plan. Prior to selling, the developer or sponsor must secure an approved offering plan by the New York State Attorney General which describes the development in detail. The offering plan outlines all aspects of the development including materials used and details to protect buyers from any surprises. This holds the sponsor accountable if they do not deliver as promised. Working with an experienced attorney can carefully review this during closing paying close attention to uncommon provisions and costs.
Closing Costs. In New York, you can expect the closing cost to include items such as the developer or sponsor attorney and working capital contributions, transfer taxes and reserve-fund requirements when buying a new development home to name a few. Along with your typical closing process, there will be a final walkthrough with a “punch list” where you will notate all the items you want fixed or repaired prior to closing. You can confirm these have been completed at your final walkthrough.
Timeline. It is very common to have listings go up before the construction has even started in New York and in some cases, all the units are entirely sold out before the building is even complete. There are several delays, inspections and approvals that may occur until the building receives a “certificate of occupancy” which deems the building is ready to be occupied by tenants or buyers. Though that may push back timelines and expectations, once the building is complete, you can close and move in pretty quickly as there is no board approval process.
It’s critically important to have a solid New York real estate team, agent and attorney who can accompany you to ensure all documentation is accurate before you sign. Once that’s taken care of, Congratulations! You’ll receive your commission rebate with the Real Estate Rebate Team and the keys to begin settling into your new home.
