Page 1 of 18 1234511 ... LastLast
Results 1 to 15 of 259

Thread: Buying a new construction condominium

  1. #1
    http://tinyurl.com/2ag28z Front_Porch's Avatar
    Join Date
    Jul 2006
    Location
    Manhattan 90210
    Posts
    1,413

    Default Buying a new construction condominium

    Hey everybody!

    Propose a new thread, a sticky, called "buying a new construction condominium"

    to deal with issues like what to ask a sales office, what offering plans and amendments are, how late you should expect delivery of your unit to be, what a 421(a) is, etc.

    This could go in either Q&A or in "New York Real Estate"

    Came to mind because the discussion of offering plans and amendments and charges on the Platinum thread would be of general interest to new buyers, if they could find it.

    What think?

    ali r.
    {downtown broker}

  2. #2

    Default

    I think this is a great idea. I am making this a sticky and placing in Real Estate. Start posting!

  3. #3
    http://tinyurl.com/2ag28z Front_Porch's Avatar
    Join Date
    Jul 2006
    Location
    Manhattan 90210
    Posts
    1,413

    Default Are prices on new construction condos negotiable?

    This is always one of the big questions buyers have -- on older condos and co-ops, we generally see "flexibility" in pricing -- it would generally not occur to a buyer to be embarrassed to offer less than full asking price on an older building.

    But the question comes up, does it work that way on a newer building?

    And the answer is, sometimes: there are times when developers demand full asking, and times when they will cut you a break.

    Ilyce Glink, who is a national personal finance expert, wrote a great column about this. I am prohibited for copyright reasons from reproducing the whole column, but if you're interested, follow the link below:


    http://www.thinkglink.com/Negotiating_New_Condo.htm


    ali r.
    {downtown broker}

  4. #4

    Default Projected close dates vs. real closing dates

    Here's another question on new construction: how much "optimism" is typical when the sponsor tells prospective buyers when the closings are expected to start?

    I would guess this varies quite a lot, and I would expect there to be a wider range the earlier in the construction process. But by the time the building tops out -- or by the time the exterior is mostly complete -- shouldn't they have a pretty darn good idea? I have been unpleasantly surprised by the delays on my own condo. Should I have known to just add 3 to 6 months to their estimate, even at such a late stage?

  5. #5

    Default

    I was wondering the same thing. My surmises would suggest that it's simply on a case by case basis (building by building, actually). Things to consider after a building tops out are high detail finishings and import (or import quality) materials for the units, lobbies, etc. I think delays in the deliveries of these materials and the labor that goes into installation and re-installation, if necessary, probably plays a big role in completion timing.

    Anyone else want to chime in?

    Quote Originally Posted by zarzapan View Post
    Here's another question on new construction: how much "optimism" is typical when the sponsor tells prospective buyers when the closings are expected to start?

    I would guess this varies quite a lot, and I would expect there to be a wider range the earlier in the construction process. But by the time the building tops out -- or by the time the exterior is mostly complete -- shouldn't they have a pretty darn good idea? I have been unpleasantly surprised by the delays on my own condo. Should I have known to just add 3 to 6 months to their estimate, even at such a late stage?

  6. #6
    http://tinyurl.com/2ag28z Front_Porch's Avatar
    Join Date
    Jul 2006
    Location
    Manhattan 90210
    Posts
    1,413

    Default

    In my experience, just adding on three months doesn't hurt.


    Part of what has happened in NYC is the construction boom -- the suppliers that the developers are counting on are stretched pretty thin, and the developers, building two buildings each, can't necessarily see that big picture.

    ali r.
    {downtown broker}

  7. #7

    Default

    Yes I think sponsors are generally pretty optimistic and underestimate how much time it will take to get the TCO....

    Also, if you have the flexibility, you should try not to be the first to close as buildings take a while to settle down and become good places to live. The first few months the building will still be like a construction site and there will be tons of dust everywhere...once the construction (and renovations) have died down I would suggest getting an industrial cleaner to come in and clean the vents so you dont have dust re-circulating throughout your apartment.

  8. #8

    Default

    When do you pay the 10% down for a new development? During closing or when you decide to take the offer? I assume you pay the fees and taxes during closing right? Thanks.

  9. #9

    Default

    Quote Originally Posted by poorsod View Post
    When do you pay the 10% down for a new development? During closing or when you decide to take the offer? I assume you pay the fees and taxes during closing right? Thanks.
    You pay the downpayment (normally 10%) when the offer is made and accepted and the sale goes "into contract." You probably also have to pay your attorney a portion of their fee at this time. Then you pay the balance as well as the closing costs (fees, taxes, rest of attorney's fee, etc) at closing.

    Some places (like 10WEA where I am buying) have an additional downpayment before closing -- our sponsor is requiring 20% down of which 10% was paid when the sale went into contract and 10% about 6 months later.

  10. #10
    http://tinyurl.com/2ag28z Front_Porch's Avatar
    Join Date
    Jul 2006
    Location
    Manhattan 90210
    Posts
    1,413

    Default

    Quote Originally Posted by poorsod View Post
    When do you pay the 10% down for a new development? During closing or when you decide to take the offer? I assume you pay the fees and taxes during closing right? Thanks.
    Some new buildings will ask for 5% at contract and 5% at closing -- since it varies from building to building, look at it as a perfectly legitimate question to ask when you're being shown around the sales office.

    Some buyers like the more general, "if we like a particular unit, how do we move forward?" because then the sales office/listing broker will tell you what it takes to get into contract, what they want to see down, etc.

    ali r.
    {downtown broker}

  11. #11

    Default imagine people buying pre construction

    that has to be nuts .
    they lie about square footage and your stuck in a closet.
    in some places they count sq footage through the brick;and even pipe areas behind walls right through to the neighbors wall.

    The sheffield does that but its a renovation. That building is having problems other than that issue though

  12. #12

    Default

    in many cases you can go up into the building while under construction and see your actual space. yes there is some risk in pre-construction about how things will come out but that is why it is important to do your research on the developer and the quality of their past projects

  13. #13

    Default

    can't stress this strongly enough!

    Quote Originally Posted by bigkdc View Post
    but that is why it is important to do your research on the developer and the quality of their past projects

  14. #14
    http://tinyurl.com/2ag28z Front_Porch's Avatar
    Join Date
    Jul 2006
    Location
    Manhattan 90210
    Posts
    1,413

    Default

    Along with looking at a developer's track record, it is worth asking what concurrent projects they are involved in.

    Elad, for example, had a strong record going into the Link and the Grand Madison -- but now residents of the Link say they are experiencing delays in their closings. It's possible that these are caused by the developer's working on multiple projects ... try and feel your developer out to anticipate this kind of problem.

    ali r.
    {downtown broker}

  15. #15

    Default Closing Costs

    This has the potential to be a very helpful thread. I hope people with recent experience will comment here about what to expect.

    This post linked below over at Triple Mint lists some of the closing costs to expect when closing on a new construction condo.

    Closing Costs

Page 1 of 18 1234511 ... LastLast

Similar Threads

  1. A rash of bridge construction
    By Edward in forum New York City Guide For New Yorkers
    Replies: 7
    Last Post: April 25th, 2010, 09:13 AM
  2. Rosa Parks Condominium in Harlem
    By Edward in forum New York Real Estate
    Replies: 4
    Last Post: August 11th, 2003, 11:16 AM
  3. Atlantic Terminal & 12 Metrotech Center Construction
    By Gulcrapek in forum New York Skyscrapers and Architecture
    Replies: 5
    Last Post: March 7th, 2003, 04:24 PM
  4. South Brooklyn construction - short
    By Gulcrapek in forum New York Skyscrapers and Architecture
    Replies: 5
    Last Post: November 17th, 2002, 02:14 PM
  5. AOL Time Warner Center Construction Pictures
    By Edward in forum New York Skyscrapers and Architecture
    Replies: 11
    Last Post: October 27th, 2002, 08:19 PM

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  


Google+ - Facebook - Twitter - Meetup

Edward's photos on Flickr - Wired New York on Flickr - In Queens - In Red Hook - Bryant Park - SQL Backup Software