The Off Putting Side of New Developments

Since the beginning of time, the real estate broker has been referred synonymously with used car salesmen. I personally detest this analogy and strive to be in a different class, but nonetheless stereotypes begin from somewhere. It is true that I have experienced this myself but more often than not it is at a new development project.

It is true that some of these agents are accommodating, smart, warm and very good at their job. But some of these ON SITE AGENTS do share a "used car salesman mentality", just think about it! The product is there all they have to do is show it and let you take a test drive. However in the case of the apartment building this is where the irony lies. You do not drive your home a few hours a day. You live there. Make sure it works for you!!!

A typical experience is you enter a sales office and are greeted at the door by a receptionist who asks you to register yourself as the buyer. You then state your name and price range and wait with some bottle of water with a logo of the building on it for your turn. Now if you don’t have an appointment and are with a broker you might as well just go home, if you are alone somehow they find a way to squeeze you in????

After the paperwork is done, the on site agent emerges with a folder and a smile. He or She will take you in to “experience” this FABULOUS new environment. However, you must do this by imagining floor plans, elevations and views “coming to life.” If lucky you will also be looking at a full scale mock up of a bathroom and a kitchen. Then you sit down and pick from the available floor plans your new home. If the building is “ACCESSIBLE” you will then be given a hardhat and a waiver to sign and go into the construction site. The wheeling & dealing now begins with hopes and promises that are met but usually on a different time scale. Amenities, Celebrities, and Views OH MY! Then the pressure begins for you to “BUY NOW, Leave a deposit…take it home for a week and let me know.”…or “see ya, you better take it now because it will be gone tomorrow!”

I recently had someone go back to a building with the intent to BUY a $1.475 Million Dollar Two Bedroom. He wanted to see it one more time and we were practically thrown out. They told us, "Sorry we don't show you the space a second time!" I have shown apartments 10 times before someone buys it. That is your prerogative as a buyer. DEMAND IT! Do not let some agent bully or boss you into a financial decision. Stand up for what you need and want!

All this "fun" aside, New Development markets do have merit. They indeed offer exciting opportunities to buy. They are very attractive to the first time buyer or investor. More than 95% of all new construction is being built as condos, first time buyers can fore go the challenges and anxieties of dealing with cooperative boards.

BASIC NEW DEVELOPMENT TIPS:
1. Look into the developer. What other buildings has he done? Is he local? What is his rep? Check out some of his developments. Talk to the tenants, see what they think.
2. Check out outstanding tax/building code violations via the various NYC GOV databases. Look at the postings re: Tribeca Space on StreetEasy for nightmares in this area.
3. Read every page of the offering plan. They are legal docs that offer good insight into what the sponsor/developer has to deliver to the owners, how your shared costs are calculated and other risks.
4. During construction watch the site, just as you would if you were building your own house.
5. Ask who the other buyers are. Buyers or flippers? Does the ratio fit with your comfort level?
6. Get a good RE lawyer -- they can walk you through what you need.
7. KNOW YOUR CLOSING COSTS AND TAX SCHEDULE- This is where the hidden amounts can drive you over the edge and into the poorhouse.