Which New Construction Closing Costs are Negotiable in NYC Real Estate?

Which New Construction Closing Costs are Negotiable in NYC Real Estate? Full blog post: https://www.hauseit.com/new-construction-closing-costs-nyc/

I’m Nick at Hauseit, based here in NYC. Check out our website https://hauseit.com to learn how to save money if you’re buying or selling real estate here in New York. We’ll discuss how to handle a job change during the co-op board approval process in the following video. So let’s get started!

NYC Buyer Closing Cost Calculator for New Construction Condos: https://www.hauseit.com/new-development-closing-cost-calculator-nyc/

Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/

The negotiability of new construction closing costs in NYC varies by development as well as general market conditions. But in general, the most commonly negotiated closing costs for new construction condos include New York City and New York State Transfer Taxes as well as sponsor attorney fees.

Less commonly negotiated sponsor closing costs include the residential manager unit contribution and the working capital contribution. In very rare instances, a developer might be so motivated that they’ll agree to cover non-sponsor closing costs, including the Mansion Tax, and perhaps the Mortgage Recording Tax in special situations.

A particularly motivated developer may also be willing to provide some form of credit cover a number of months or possibly years of common charges or taxes. Other common ‘freebies’ developers have been known to offer include a free storage cage, a bike storage rack, a free parking spot or a gym membership.

Finally, a developer may also be willing to make limited customizations to a unit. Or, they might agree to an alteration credit to cover the upgrades requested by a purchaser as part of a negotiation, such as a custom closet build-out or wiring for motorized shades.

If you’re buying a new development in NYC, be sure to check out Hauseit’s free and interactive buyer closing cost calculator which is available at www.hauseit.com. This calculator gives you an itemized breakdown of all buyer closing costs so you can better understand the big picture when it comes to negotiating a new development.

Now before you get your hopes up, we want to reiterate that it is customary for a purchaser to pay all sponsor related closing costs in NYC. Please do not assume based on this video that you’re guaranteed to receive any or all of these concessions while negotiating a new development purchase in NYC.

Most if not all of the major concessions and freebies we’ve mentioned are really only offered by developers on the most expensive condos, typically north of $3 to $5 million dollars.

For a typical new development condo in NYC around $1 million or less, most developers will only agree to cover Transfer Taxes and sponsor attorney fees, if even that.

The good news is that you can further reduce your buyer closing costs by working with a buyer’s agent who agrees to give you back a portion of the commission paid to them by the developer. Here at Hauseit, we offer this service through our Buyer Closing Credit Program. Visit hauseit.com to learn more, or feel free to email us at team@hauseit.com or give us a call at (888) 494-8258 to discuss further.

So to reiterate, the negotiability of a specific new development and apartment is determined by market conditions and how the building is performing relative to its sales targets. There may be zero negotiability on a popular new development with only a few units remaining. This could mean little or no flexibility on the price itself and no willingness on the part of the sponsor to cover any of the buyer’s closing costs.

If, on the other hand, a developer has hundreds of unsold units and market conditions are poor, their starting offer may include covering all sponsor related closing costs and perhaps several years of common charges.

An experienced buyer’s agent can help you evaluate market conditions and strategically negotiate all components of a new development transaction, including the purchase price, closing costs and other possible incentives such as a storage unit or a parking space.

So there you have it! We hope you enjoyed this video, and if you did, please like, subscribe and leave us a comment. We’d greatly appreciate it. And if you’re looking to buy or sell, check out hauseit.com to learn how to save money. I’m Nick at Hauseit, and we’ll seen you on the next video!

Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/

Save 6% When Selling in NYC; https://www.hauseit.com/agent-assisted-fsbo/
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Hauseit LLC, Licensed Real Estate Broker
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