Buying new developments in New York City has its perks; buyers can enjoy brand new appliances, brand new building and quite possibly the best amenities the developer/sponsor has to offer.
However there are also pitfalls and common problems buyers run into when they enter into contract with the developer. Below are the 10 most common things buyers should be aware of when purchasing new developments!
1. Sales progress
Agents will not disclose their sales progress to the public unless it is going very very well. But the problem is, even if the building is not selling, the agent will most likely say that it is.
Ofcourse, being one of the first buyers in a building isn’t always a bad thing, the buyer enjoys more options, better pricing and often times more negotiability. However, the sales progress will affect the buyer’s decision, the sales price and the likelihood of obtaining mortgage, therefore the buyer can and should ask a few additional questions to assess the situation.
- “Has the offering plan been declared effective?”
An approved offering plan means the building has officially sold over 20% and is now declared effective by the Attorney General. Usually the on-site brokers will not lie about the status of the offering plan as it is a yes or no question.
- Ask for the availability of a few more lines and units
For a serious buyer, asking about the different “line” and units in the same building will shed some perspective on the building. If everything is available, maybe the sales is not as far along as the sales claimed to be.
- Ask your agent
Your agent most likely has been visiting the building more than a few times and knows the general impression of the new development already. If all his/her clients like the building and have gone through the availability of more than 5-10 units per client, odds are, your agent knows how well it is going.
2. Will it be delayed?