New Condo Construction

This depends on how hot the market is where you are looking to buy. In general, inventory is tight and there is more demand than supply with new developments, especially in hot areas. I went into contract on my Williamsburg condo March 2012. At that time I was able to negotiate a 5% discount from the ask price. However, the market is vastly different a little over a year later.

Bidding wars are more common than significantly negotiated discounts. However, I do not know the area you are referring to. Generally speaking, well built new developments in attractive and even "up and coming" areas seem to move units fast in this current environment.

GL. I think you have to be ready to offer close to asking price in this market in NYC.

Thanks. With new construction I would assume if you bid/sign an offer to purchase,the apt would be yours. That is, it's not like a re-sale where you bid and hope your the highest bidder?

As rlr says it depends a bit on the area. Now a lot of places have these open houses for new developments and they get multiple offers. And even if lingering a bit the agent would still have to take an offer to the developer.

I had same experience as rlr in Bburg where there was, once upon a time room to negotiate, but that went away. Brokers usually tell you within about 3 seconds what is negotiable in any case.

I actually went back and forth with the Sponsor until we both felt like we had a price we could agree to (fortunately, no one else appeared to have been offering a price more attractive than mine and I had the help of two good realtors in the negotiation process). There was quite a bit of back and forth between the Seller/Sponsor and I (my realtors). In fact, I even went back to negotiate on the transfer taxes, which are the responsibility of the Buyer, not the Seller, in a NEW DEVELOPMENT.

I was happy the Sponsor paid $10,000 out of the $15,000-16,000? I was supposed to pay in transfer taxes for my new condo.

>In fact, I even went back to negotiate on the transfer taxes, which are the responsibility of the Buyer, not the Seller, in a NEW DEVELOPMENT.

That's just what you've been led to believe.

rlr - Is that the "law" that the buyer is required to pay the RETX or just another cost they pass onto the buyer.

LKING4APT,

That is the requirement that I was given in various closing costs calculators. See these links as examples (note the different costs with NEW DEVELOPMENTS OR WHEN SELLER IS THE SPONSOR):

http://www.triplemint.com/triplemint/condo_closing_costs/

http://www.buyandsellmanhattan.com/how-to-manhattan-apts/what-are-the-closing-costs-for-a-nyc-condo/

Also, this link:
http://www.levelgroup.com/resources/closing-costs-for-condos-and-townhouses

Note the following in the above link:

"For Sponsor Sales and New Developments, purchaser usually pays the following:

NYC Real Property Transfer Tax

1% of the total purchase price if $500 K or less
1.425% of the total purchase price if over $500 K

NY State Real Property Transfer Tax
0.4% of the total purchase price

Sponsor’s Attorney Fee
$1,500 +"

- purchaser usually pays -

The transfer taxes are generally accepted to be the responsibility of the Buyer for New Developments or when buying from a Sponsor. Though I was told by a RE attorney at a later point in my negotiations that the transfer taxes might be more negotiable than the price for the condo.

Yes price can be negotiated- as well as closing costs and apartment finishes (especially if the new development is not 100% finished). Also take into consideration the size of the development and the reputation of the developer. If it's a small development with a relatively inexperienced developer you could be left holding the bag for any and all problems- so factor that into your offer.

I would definitely get an experienced buyer's broker first of all, will save you money. For example, are you aware of all of the special risks involved: https://www.hauseit.com/special-risks-to-buying-a-new-construction-home-in-nyc/

Also, play around with new construction closing costs: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/

And yes, some of the sponsor costs like transfer taxes are negotiable

Come on JR. It is a 5 year old thread. Be a little more honorable in promoting Hauseit. Just buy some ads in Streeteasy and pay them some money. Who owns Hauseit anyway? Who is the CEO? The website does not show any ownership or management.