Buying A New Development Condo in Brooklyn
Buying a New Development Condo in Brooklyn: What to Know Before You Commit
My last apartment was purchased in a small new development, and it was a very different experience from a resale- I personally felt both positives and negatives. This overview will give you an honest take on both sides from my perspective as a homeowner and real estate agent.
Brooklyn’s skyline and sidewalks continue to evolve, with sleek new condominium developments rising in neighborhoods from Williamsburg to Downtown Brooklyn and beyond. The high-rise buildings might get the press, but you’ll also see the green construction barriers for smaller four to eight-story buildings throughout the boroughs. The amenities may vary, but the process is similar in any style of those buildings. Buying a new development condo in Brooklyn offers modern design, luxury amenities, and the excitement of owning a never-lived-in home — but it also comes with unique considerations that are different from a resale.
1. Understand What “New Development” Really Means
A new development condo refers to an apartment being sold directly by the developer, sometimes before or during construction. In 2025, most new construction is sold when a building is close to being finished and there is at least one model unit ready to show. Some larger buildings will pre-sale, but it is more common that you can walk the space prior to putting down an offer.
With new development, the entire building has either been converted or constructed. A conversion takes place when the building exists before, and the owner converts all of the apartments to a condo (and likely renovates the interior as well). New construction is when the entire building is built from the ground up. This is different than a sponsor sale, which I describe in detail below.
All of these key elements are described in an offering plan. Offering plans are what the owners of buildings file with the New York State Attorney General to officially create real property, aka the condominiums, that can then be sold to clients. When you look at new development, you will hear the terms offering plan and sponsor a lot. Offering Plan timelines run independently of construction timelines, but a sponsor cannot start to market or sell the building until the state has approved the offering plan. When I look at buildings that are under construction, it usually takes 6-12 months for an offering plan to be fully approved after submittal.
Real Estate Dictionary Terms:
Offering Plan: Legal document that defines the terms of your apartment purchase- boundaries of common element purchase, responsibilities of individual owners vs management, etc.
Sponsor: The owner (and likely developer) of the unit or building for sale. They are the owner, but the role is a bit different for a sponsor versus the average owner.
2. Key Considerations for Buyers
a. Review the Offering Plan
Every new development in New York City must have a state-approved offering plan. This document outlines everything from the building’s design to your rights as a buyer, projected maintenance fees, and closing costs. It’s essential to review this carefully — with your attorney — before signing a contract.
b. Factor in Closing Costs and Taxes
New development purchases often come with higher closing costs, including NYC and state transfer taxes, sponsor attorney fees, and sometimes special assessments. These are standard, but there can be opportunities to negotiate depending on market conditions. If you’re aware of the costs, you’re in the best position to be able to negotiate.
c. Consider the Building’s Timeline and Amenities
Many new developments offer top-tier amenities — from landscaped rooftops to gyms and lounges — but these features might not be operational immediately upon closing. Check what will be ready when you move in, and what’s still under construction.
d. Research the Developer and Building Team
Before you sign, review the developer’s track record — including past projects, quality of finishes, and any history of construction delays. A seasoned real estate agent familiar with Brooklyn's new developments can provide valuable insights here.
3. New Development Positives for Buyers
Apartments are delivered in immaculate condition. All buyers have the opportunity to do a walk-through and ensure the apartment is in perfect working order. This is in comparison to the “as is” condition for resale, where there is no guarantee of excellent condition.
New Development timelines can be more flexible. If you currently own a home, juggling the two timelines can be tricky. When a building is not ready to occupy, you can buy a bit more time to enable the transaction, and you do not have to carry two properties at once.
If you act early, you get the pick of the litter of floor plans and amenities. When the building first starts selling, you can have your pick of options at times.
Have an opportunity to have a say in the building from the start. There are always decisions about trash, common space, personnel that need to be made in any building. If you’re there from the start, you will have an opportunity for your voice to be heard.
4. Timelines for New Development
Buying a new development condo usually follows a longer timeline than buying a resale. Here’s how it typically works:
Making an Offer and Negotiating (1-2 weeks)
Once you choose your unit, you will make an offer for price, closing terms, closing cost terms, and contract deposit (can vary if there is a longer timeline.Due Diligence with Attorney & Contract Signing (1-2 weeks)
Your attorney will review the offering plan and contract terms to ensure everything is in order before you’re fully committed. Once you’ve agreed to everything, you will execute the contract and be “in contract.” A typical contract deposit in New York City is 10% which is accompanied by a signed contract. There is a chance this could vary more or less with new construction if timelines are further out.Construction Phase (Months to Years)
If the building is still under construction, you’ll wait until a Temporary Certificate of Occupancy (TCO) is issued by the city. During this period, developers will provide periodic updates on progress. This can be a benefit if you want time to sell an existing property. It can be frustrating because the timeline is out of your control.Closing and Move-In (Upon TCO Issuance)
Once the TCO is granted and the condo is declared effective (meaning a certain percentage of units are in contract), closings begin. You’ll complete your final walkthrough, sign closing documents, and receive your keys.
4. Why Work With an Experienced Buyer’s Agent in the Process
Having a Brooklyn real estate agent who understands the intricacies of new development purchases can be invaluable. They’ll:
Compare projects and understand leverage points with sponsors.
Guide you through offering plan review and timelines.
Help you understand value — both now and for future resale potential.
Identify projects before public listings potentially: if you review my blog, I have early access to many offering plans before they are listed publicly.
5. Closing Costs
Purchasing in a new development can have closing costs that are more expensive than a resale, which I’ve outlined below. The key to these is to make sure to ask these questions ahead of time so you are not caught off guard.
Transfer Taxes: In a resale, the seller pays both city and state transfer taxes. In a sponsor sale, these are paid by the buyer unless negotiated otherwise. These run between 1.5% and 2.25% depending on the purchase price of the home.
Sponsor Attorney Fee: Many sponsors will have the buyers pay for their closing attorney. This is a fixed fee of $2,000-$5,000, depending on the types of services they’ve retained.
Reserve Fund Contributions: When a building is new, they do not have the reserve funds to maintain the building. Every buyer is asked to contribute to ensure a strong financial start to the project. These vary, but I would expect at least 2 months' capital contribution at the start.
6. Sponsor Units vs. New Development
Sponsor units are individual sales in buildings that were converted to Co-Op or Condo in the past. I’ve seen these in buildings converted in 1988 or in 2006. They happen because at the time of conversion, the renters in these units were uninterted or unable to purchase in the condo or co-op. The sponsor had to honor the terms of the lease, and more than likely, the tenants were in a rent-stabilized apartment. When the tenant or the tenant's family no longer occupies the unit, the sponsor will make updates to the unit to prepare it for sale. The sponsor sales can be a great opportunity to acquire a brand new apartment in an older building. For a Co-Op, sponsor sales do not require board approval. These do have the same transfer tax and closing cost contributions.
7. New Development Risks for Buyers
To me, the risks are the other side of the coin to the positives- it’s considering both sides of the equation.
Timeline- if you’re trying to time a lease renewal, an uncertain timeline for a TCO can be challenging.
New Construction- if the apartment has never been lived in, there are always surprises.
You’ll need to participate more- the building is getting set up for the first time and will require a bit more legwork, especially in a smaller building.
The Bottom Line
Buying a new development condo in Brooklyn can be a rewarding investment and lifestyle choice. With the right preparation, professional guidance, and clear understanding of the process, you can navigate the complexities confidently — and secure a home that’s perfectly suited to Brooklyn’s vibrant future.