Special Risks to Buying a New Construction Home in NYC: https://www.hauseit.com/special-risks-to-buying-a-new-construction-home-in-nyc/
Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
There are many risks to buying a new construction home in NYC besides being expected to pay transfer taxes and attorney fees on behalf of the sponsor.
In this Hauseit tutorial video, we will discuss the special risks to buying a new construction apartment in NYC.
Since you’re buying, you may also be interested in estimating your buyer closing costs in NYC using Hauseit’s interactive closing cost calculator available at www.hauseit.com. You can also save money on your purchase by requesting a Hauseit Buyer Closing Credit.
Additional Closing Costs When Buying New Construction
Sponsors typically expect the buyer to pick up a substantial portion of the sponsor’s closing costs in a new development purchase. This typically includes the seller’s NY State and NYC transfer taxes as well as the sponsor’s attorney fees.
You may also have to pay upfront for the superintendent’s apartment if the building will have a live-in super. If the building decides to get a mortgage to purchase the super’s apartment from the sponsor, then instead of an upfront closing cost you may simply have higher common charges. Either way, this is an additional front-loaded cost to buying new construction as you don’t really get it back when you sell.
Sponsor Control of the Board
Most offering plans will stipulate that the sponsor relinquishes control of the board after 90% of the units are sold, or within 5 years of the first closing. This is market standard, and it means that buyers of new housing developments will at a minimum be able to take control of their building within 5 years.
However, it’s important to carefully peruse this section of the offering plan because some sponsors may try to sneak in additional language that lengthens their hold on the building. Some condo offering plans will stipulate that the sponsor will control the board as long as the sponsor owns at least one unit in the building.
Understated Common Charges and Taxes
A key risk to buying a new construction home in NYC is that advertised monthly common charges and real estate taxes will typically be lower than reality. There are a couple of reasons for this.
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.com
Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
There are many risks to buying a new construction home in NYC besides being expected to pay transfer taxes and attorney fees on behalf of the sponsor.
In this Hauseit tutorial video, we will discuss the special risks to buying a new construction apartment in NYC.
Since you’re buying, you may also be interested in estimating your buyer closing costs in NYC using Hauseit’s interactive closing cost calculator available at www.hauseit.com. You can also save money on your purchase by requesting a Hauseit Buyer Closing Credit.
Additional Closing Costs When Buying New Construction
Sponsors typically expect the buyer to pick up a substantial portion of the sponsor’s closing costs in a new development purchase. This typically includes the seller’s NY State and NYC transfer taxes as well as the sponsor’s attorney fees.
You may also have to pay upfront for the superintendent’s apartment if the building will have a live-in super. If the building decides to get a mortgage to purchase the super’s apartment from the sponsor, then instead of an upfront closing cost you may simply have higher common charges. Either way, this is an additional front-loaded cost to buying new construction as you don’t really get it back when you sell.
Sponsor Control of the Board
Most offering plans will stipulate that the sponsor relinquishes control of the board after 90% of the units are sold, or within 5 years of the first closing. This is market standard, and it means that buyers of new housing developments will at a minimum be able to take control of their building within 5 years.
However, it’s important to carefully peruse this section of the offering plan because some sponsors may try to sneak in additional language that lengthens their hold on the building. Some condo offering plans will stipulate that the sponsor will control the board as long as the sponsor owns at least one unit in the building.
Understated Common Charges and Taxes
A key risk to buying a new construction home in NYC is that advertised monthly common charges and real estate taxes will typically be lower than reality. There are a couple of reasons for this.
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.com
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