--- title: New Development versus Re-sales- Top 5 Differences to Know description: NYC New Construction Condo Development- Top 5 Differences you need to know! image: https://www.atnyc.com/hubfs/Blog/Windows_1155x833.jpg --- - - - - - S [![atnyc-blog-logo.png](https://www.atnyc.com/hs-fs/hubfs/IL_blog/atNYCblog-logo.png?width=203&name=atNYCblog-logo.png "atnyc-blog-logo.png")](https://www.atnyc.com/blog)  For The Savvy Real Estate Player - [home](https://www.atnyc.com) - [opportunities](https://www.atnyc.com/opportunities-blog) - [blog](https://www.atnyc.com/blog) - [BUYING](https://www.atnyc.com/blog/topic/buying) - [SELLING](https://www.atnyc.com/blog/topic/selling) - [RENTING](https://www.atnyc.com/blog/topic/renting) - [INVESTING](https://www.atnyc.com/blog/topic/investing) - [MARKET TRENDS](https://www.atnyc.com/blog/topic/market-trends) - [NEIGHBORHOOD NEWS](https://www.atnyc.com/blog/topic/neighborhood-news) - [HOT PROPERTIES](https://www.atnyc.com/blog/topic/hot-properties) # New Development versus Re-sales- Top 5 Differences to Know ![](https://www.atnyc.com/hubfs/IL_blog/author_name_icon.png) [Hagay Azoulay](https://www.atnyc.com/blog/author/hagay-azoulay) Jun 25, 2015 7:47:00 PM [New Development](https://www.atnyc.com/blog/topic/new-development), [Buying](https://www.atnyc.com/blog/topic/buying) New construction versus traditional re-sale transactions have many similarities, however there are some differences in the details of some specific items.  Below are fees and processes not uncommon to traditional sales transaction but with some adjustments specific to new construction.  Read on.   **Difference #1- Transfer Taxes** When purchasing a sponsor unit (first purchaser of the unit ever), the buyer is typically responsible for paying the transfer taxes.  Buyers can include them in the cost basis of the property which will be important if and when they sell the home, as it is the figure used to determine the taxable gain. ***NYC and NYS transfer taxes equate to 1.825% of the total sales price.***   **Difference #2- Mansion Taxes** Mansion taxes in NYC are equal to 1% of the sales price for homes selling over $1 million.  This is not unique to new developments.  ***However, one consideration to note is that when the mansion tax is calculated, the transfer taxes will be included in their purchase price.*** **Difference #3- Sponsor’s Attorney Fees** In addition to your responsibility for your own attorney fees, purchasers are (typically) liable for covering the expense associated for the sponsor’s attorney’s fees.   ***Ask this specific question so you ensure you know all of your closing costs.*** **Difference #4- Project Pre-Approval** The same way a buyer gets “pre-approved” from a lender, condominiums do as well.  Each bank has different requirements when assessing mortgage options in a new development.  ***Therefore seek out the building’s “preferred lenders” who have pre-approved the project and are a direct link to confidently secure a loan!*** **Difference #5- Board Application & Approval** The nice thing about purchasing from a sponsor directly is that the arduous board application process, in many instances, gets bypassed.  It is discretionary though so depending on the sponsor, they may request an application.  ***At a minimum, usually required is a financial statement and evidence of funds. In addition, you do not need to await board’s approval!! *** [![](https://www.atnyc.com/hubfs/IL_blog/blog-prev.png)PREVIOUS POST](https://www.atnyc.com/blog/buying-brand-new-top-5-benefits-everyone-agrees-on) [Next Post![](https://www.atnyc.com/hubfs/IL_blog/blog-next.png)](https://www.atnyc.com/blog/15-reasons-to-use-a-real-estate-broker) - Latest posts - Popular Posts ### JOIN THE NEWSLETTER Thanks for Subscribing! [![New Call-to-action](https://no-cache.hubspot.com/cta/default/473008/d8efb74f-8bce-4489-bff7-9af9937fca5c.png)](https://cta-redirect.hubspot.com/cta/redirect/473008/d8efb74f-8bce-4489-bff7-9af9937fca5c) ### Topic - [Buying (7)](https://www.atnyc.com/blog/topic/buying) - [New Development (3)](https://www.atnyc.com/blog/topic/new-development) - [Renting (1)](https://www.atnyc.com/blog/topic/renting) ## Leave a reply. Your email address will not be published. Required fields are marked \* REPORTS ## Curious how the NYC Real Estate Market is Performing? Check out the 4Q16 Condo, Coop, Luxury and New Development market stats from experts Miller Samuel.  You'll find these benchmarks useful when assessing the overall market. [![DOWNLOAD PDF](https://no-cache.hubspot.com/cta/default/473008/8465cf6d-7509-4728-a9d0-b2ace5efc7b0.png)](https://cta-redirect.hubspot.com/cta/redirect/473008/8465cf6d-7509-4728-a9d0-b2ace5efc7b0) ### Recent Posts [Read more](https://www.atnyc.com/blog/URL_PLACEHOLDER) Or share the good things: ## ![](https://www.atnyc.com/hubfs/IL_blog/hero-timestamp.png)  ## ![](https://www.atnyc.com/hubfs/IL_blog/timestamp.png)  ![Windows_1155x833.jpg](https://www.atnyc.com/hs-fs/hubfs/Blog/Windows_1155x833.jpg?width=1155&name=Windows_1155x833.jpg "Windows_1155x833.jpg") ### About us: We are a creative and experienced team, keep on problem solving. We prepare ourselves to face any objections specific to your home, head-on, rather that reacting to them.  - [![fb_icon_footer](https://www.atnyc.com/hubfs/IL_blog/fb_icons_footer.png)](https://www.facebook.com/hagay.azoulay.1) - [![twiiter_icon-footer](https://www.atnyc.com/hs-fs/hubfs/IL_blog/twiiter_icon-footer.png?width=35&name=twiiter_icon-footer.png)](https://twitter.com/atNYC_) - [![g_footer](https://www.atnyc.com/hs-fs/hubfs/IL_blog/g_footer.png?width=35&name=g_footer.png)](https://plus.google.com/103509728645600526198) - [![pinterest_icon_footer](https://www.atnyc.com/hubfs/IL_blog/pinterest_icons_footer.png)](https://www.pinterest.com/atNYC_/) - [![linked_icon_footer](https://www.atnyc.com/hubfs/IL_blog/linked_icons_footer.png)](https://www.linkedin.com/pub/at-nyc/a7/7b7/948) ### LATEST FROM OUR BLOG: ![pen_icon_footer](https://www.atnyc.com/hs-fs/hubfs/IL_blog/pen_icon_footer.png?width=16&name=pen_icon_footer.png)[Visit our Blog](https://www.atnyc.com/blog) ### LATEST PROJECT [241 WEST 107TH STREET](https://www.atnyc.com/241west107thstreet) ![flicker_icon_footer](https://www.atnyc.com/hs-fs/hubfs/IL_blog/flicker_icon_footer.png?width=15&name=flicker_icon_footer.png)[View stream on flickr](https://www.flickr.com/photos/134420258@N08/) ### atNYC on TWITTER: ![chat_icon_footer](https://www.atnyc.com/hs-fs/hubfs/IL_blog/chat_icon_footer.png?width=16&name=chat_icon_footer.png)[Follow us on Twitter](https://twitter.com/atNYC_) - [![logo_footer](https://www.atnyc.com/hs-fs/hubfs/IL_blog/logo_footer.png?width=78&name=logo_footer.png)](https://www.atnyc.com/) - ©2015 All Rights Reserved - [![address_icon_footer](https://www.atnyc.com/hs-fs/hubfs/address_icon_footer.png?width=17&name=address_icon_footer.png)26 West 17th Street, New York, NY 10011](https://www.google.co.in/maps/place/26+W+17th+St,+New+York,+NY+10011,+USA/@40.738394,-73.993937,17z/data=!3m1!4b1!4m2!3m1!1s0x89c259a2c60d68af:0x5f811b6af4fbaf7f) - [![mobile_icon_footer](https://www.atnyc.com/hs-fs/hubfs/IL_blog/mobile_icon_footer.png?width=16&name=mobile_icon_footer.png)212-321-7150](tel:2127276126) - [![mail_icon_footer](https://www.atnyc.com/hs-fs/hubfs/IL_blog/mail_icon_footer.png?width=24&name=mail_icon_footer.png)team@atnyc.com](mailto:team@atnyc.com)