April 30, 2025
Buying your first home in New York City is exciting—but it’s also full of hidden costs and rookie mistakes that can turn your dream purchase into a financial headache. As a realtor who's guided plenty of first-time buyers through the NYC maze, here are the top five things I see people overlook again and again:
1. Maintenance Fees Aren’t Optional
That dreamy one-bedroom in a doorman building might look affordable at first glance—but check the monthly maintenance. Co-ops in particular come with fees that cover everything from building staff to property taxes, and they can run high.
Don’t just budget for the mortgage; factor in those monthly fees too, or you’ll end up stretched way too thin.
2. Closing Costs in NYC Hit Different
Unlike other cities, closing costs in NYC can sneak up fast—especially if you’re buying a condo or new development. Between attorney fees, title insurance, transfer taxes, and mansion taxes (yes, even on apartments that don’t feel mansion-y), you’re easily looking at 3-5% of the purchase price.
On a $700K apartment, that’s up to $35K—cash you need to have on hand.
3. Skipping the Building’s Financials
You wouldn’t buy a business without seeing its books, so don’t buy into a building without reviewing its financials. A poorly run board or low reserve funds can spell major trouble down the road, like surprise assessments or crumbling infrastructure. Always have your attorney look these over.
4. Assuming You Can Rent It Out Later
Want to house-hack or keep the unit as an investment someday? Not so fast. Co-ops usually have strict rules on subletting, and even some condos have limits. If rental flexibility is part of your long-term plan, make sure the building actually allows it before you sign anything.
5. Underestimating the Timeline
NYC real estate doesn’t move like the rest of the country. Between co-op board approvals, lawyer reviews, and lender delays, the process can take months. If your lease is ending soon or you’re trying to time a move perfectly, build in buffer time—or prepare for a lot of stress.
Buying in NYC isn’t impossible—but it does require planning, patience, and the right team around you. Keep these five points in mind and you’ll be in a much stronger position to make a smart, informed purchase.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
