August 2023: Something New in the City

3 min readAug 15, 2023

Here’s the Story:

If you’re one of those people who revels in that “new car smell” when you’re driving off the lot, you might also be the kind of person that sees the appeal of being the first to own a brand-new piece of real estate. Since the process of acquiring a new development condo is quite different from buying resale, there are a few things you’ll need to keep in mind.

Down to the Nitty-gritty:

Essentially, when buying a new development, everything centers around the timeline for the condo’s completion and availability for occupancy. As opposed to the typical three-months-until-closing rule found in resale, buyers of new developments will often have to wait up to eighteen months. Before buyers can close and move in, the developer must submit an offering plan to the New York State Attorney General, obtain a certificate of occupancy, and get 15% of the units under contract so that the offering plan can be declared effective. With all these moving pieces, sometimes developers face unexpected delays and the timeline for closing shifts. Another tricky issue is financing. Since banks won’t offer mortgages to buyers until 15% to 50% of units are under contract, sponsors favor all-cash buyers at the beginning of the sales process.

What’s the Takeaway?

While the timeline and contingencies may seem intimidating to some buyers, you can use it to your advantage. If you’re an all-cash buyer looking at a larger development, your negotiating power is highest at the pre-construction phase when the sponsor is trying to secure that first 15%. They may offer incentives like covering transfer taxes or offering free storage. If you’re a financed buyer, your best move is to wait until the end of a sellout when the developers are trying to get rid of those last remaining units. Whenever you jump in, know that with a little patience, at the end of the rainbow is a new development waiting for you to make it a home.

The Gabriele Moment

There’s nothing like Greece with its iconic ancient buildings, uniquely blue Mediterranean waters, and (of course) its fantastic food and fascinating culture. My family and I spent an amazing week exploring all that Greece has to offer, hiking up to the Acropolis in Athens, and ferrying between the gorgeous islands of Santorini and Milos. After getting enough sun and feta cheese to last us a lifetime (or at least until our next visit!) we are heading home to Brooklyn, relaxed and ready for these last few weeks of summer.

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