Buying a Condo in New York, New York: What to Know Before You Make an Offer

A condo in New York City is real property. When you buy a condo, you receive a deed to your individual unit and an undivided interest in the building's common areas. That is fundamentally different from buying a co-op, where you purchase shares in a corporation that owns the building and receive a proprietary lease granting you the right to occupy your unit. This distinction has practical consequences for financing, taxes, subletting, and how much control the building has over your purchase.

You Own Real Property

Because a condo unit is real property, it has its own tax lot and its own property tax bill. You can finance it with a conventional mortgage, and lenders treat it much the same way they treat a single-family home loan. You also receive a title insurance policy, and the transaction is recorded with the New York City Register. None of that applies to a co-op purchase, which is a personal property transaction.

The Condominium Board Has Limited Power Over Your Purchase

Condo boards in New York City cannot reject a buyer the way a co-op board can. Most condo buildings have a right of first refusal, which means the board can choose to purchase the unit themselves at the same price and terms you negotiated rather than allow the sale to proceed to you. In practice, boards rarely exercise this right because it requires the building to come up with the purchase price. The practical result is that buying a condo involves no board interview and no lengthy board application package, which is a significant difference from the co-op process.

Common Charges vs. Maintenance Fees

Condo owners pay common charges each month, which cover the building's operating expenses and contributions to the reserve fund. Unlike co-op maintenance fees, common charges do not include any portion of a building-wide mortgage or underlying real estate taxes, because each unit owner pays their own property tax bill separately. Common charges in Manhattan condos typically run from around $1 per square foot per month in older, less amenity-heavy buildings to $3 or more per square foot in full-service new developments with doormen, gyms, pools, and concierge staff.

For a broader comparison of how co-op and condo fees and closing costs stack up against each other, see the breakdown on closing costs for co-ops vs. condos in New York City published here on this site.

2. What Buying a Condo in New York, New York Actually Costs

Price ranges for condos in New York City vary enormously by borough, neighborhood, building age, and amenities. Understanding the full cost picture, including purchase price, closing costs, and ongoing monthly expenses, is essential before you start touring units.

Purchase Price Ranges Across Manhattan, Brooklyn, and Queens

In Manhattan, the median condo sale price as of September 2026 sits in the range of $1.4 million to $1.6 million, though studios in neighborhoods like Washington Heights or Inwood can be found closer to $400,000 to $550,000, while new construction in Tribeca, Hudson Yards, or the Upper East Side routinely trades at $3 million and well above. Brooklyn condos, particularly in neighborhoods like Williamsburg, DUMBO, and Greenpoint, have seen sustained price growth and now frequently trade between $900,000 and $2 million for two-bedroom units in newer buildings. Long Island City in Queens has a substantial inventory of newer condo towers, where two-bedroom units generally range from around $900,000 to $1.4 million depending on floor, views, and building amenities.

If you are exploring newer condo inventory in Queens, the guide to new residential development projects in Long Island City covers what has been completed and what is still under construction as of 2026.

Closing Costs You Should Budget For

Condo buyers in New York City face a set of closing costs that are higher than in most other states. The mortgage recording tax alone, which does not apply to co-op loans because there is no real property mortgage being recorded, adds a meaningful cost. For loans under $500,000, the rate is 2.05% of the loan amount. For loans of $500,000 or more, it rises to 2.175%. On a $1.2 million loan, that is roughly $26,100 owed at closing.

Additional buyer closing costs typically include: New York State transfer tax paid by the seller but sometimes negotiated; title insurance, which runs roughly 0.4% to 0.5% of the purchase price; mansion tax on purchases at or above $1 million, starting at 1% and rising on a graduated scale to 3.9% for purchases above $25 million; attorney fees generally between $3,000 and $5,000; and building-specific fees such as move-in deposits and working capital contributions, which vary by building. Total buyer closing costs on a financed condo purchase in New York City commonly run between 3% and 5% of the purchase price, sometimes higher on new development.

Ongoing Monthly Costs After Closing

After closing, a condo owner in New York City carries three recurring costs that a co-op owner does not face in the same way: a separate property tax bill, common charges, and their mortgage payment. Property taxes on condos in New York City are assessed under Class 2 residential rules and can be substantially lower than what you might expect based on market value, particularly in older buildings. New development condos often benefit from a 421-a tax abatement for a fixed number of years, which can meaningfully reduce the monthly tax burden during the abatement period. Always confirm the abatement expiration date and model what your taxes will look like once it expires.

3. How to Evaluate a Condo Building Before You Buy

The unit itself is only part of what you are buying. The financial health and governance of the building will affect your quality of life, your resale value, and your ability to get a mortgage. Buyers who skip building due diligence are the ones who end up surprised by large special assessments or financing problems down the road.

Reading the Financials and Reserve Fund

Your attorney will request the building's financial statements, budget, and reserve fund balance as part of due diligence. A healthy reserve fund is one that is adequately funded relative to the building's age, size, and anticipated capital expenditures. Buildings that have been deferring maintenance or drawing down their reserves to keep common charges artificially low are a warning sign. Look for audited financials prepared by an independent CPA, not just internally prepared statements. If the building has pending litigation, that will also appear in the financials and can affect your ability to obtain financing.

The National Association of Realtors has published a helpful consumer guide to understanding condo ownership that explains what documents to review and what questions to ask about the association's financial health before you commit.

Understanding the House Rules and Bylaws

Every condo building in New York City has house rules that govern how owners and tenants may use their units and the common areas. These rules cover things like whether short-term rentals through platforms like Airbnb are permitted, pet policies, noise restrictions, renovation procedures, and move-in and move-out protocols. If you intend to rent your unit, confirm that the building allows subletting, how many times per year, and whether there is a minimum lease term. Many buildings require leases of at least one year. Some buildings in newer developments are more permissive; older condos can be more restrictive.

Checking the Offering Plan and Any Amendments

Every condominium in New York State was created through an offering plan filed with the New York State Attorney General's office. The offering plan is the founding document of the condominium and describes the building, the units, the common elements, the budget, and the rules. Amendments to the offering plan are filed over time as material changes occur. For new development purchases, you will be buying directly off the offering plan. For resales, your attorney will review the plan and all amendments to identify anything that affects your unit or the building's structure. This review is not optional; it is one of the most important parts of condo due diligence in New York.

4. The Mortgage Process for Condo Buyers in New York

Getting a mortgage on a condo in New York City is generally straightforward, but the building itself must meet lender guidelines, not just the borrower. This is a step many first-time condo buyers do not anticipate.

Warrantable vs. Non-Warrantable Buildings

Fannie Mae and Freddie Mac set guidelines that determine whether a condo building is warrantable, meaning conventional lenders can sell loans on units in that building into the secondary market. A building becomes non-warrantable when it fails to meet those guidelines, which can happen if more than 35% of units are investor-owned, if a single entity owns more than 10% of the units, if the building has significant pending litigation, if commercial space exceeds certain thresholds, or if the HOA is not properly funded. Non-warrantable buildings can still be financed, but you will typically need a portfolio lender, and the interest rate and down payment requirements are higher. Some new construction buildings in New York City are non-warrantable during the initial sell-out period when the developer still owns a large percentage of units.

The Mortgage Recording Tax and What It Costs You

New York State and New York City both impose a mortgage recording tax on loans secured by real property, which means condo mortgages are subject to it while co-op loans are not. The combined rate in New York City is 1.8% for loans under $500,000 and 1.925% for loans of $500,000 or more, with the lender typically paying 0.25% and the borrower paying the remainder. On a $1 million mortgage, the borrower's share comes to approximately $16,750. This is a meaningful line item that needs to be in your closing cost budget from day one.

For a detailed explanation of how this tax works and why co-op buyers are exempt, see the full mortgage recording tax guide published here.

5. The Contract and Closing Process for New York City Condos

The path from accepted offer to closing on a condo in New York City typically takes 60 to 90 days for a financed purchase, though new development closings can take longer depending on construction timelines and the sponsor's schedule. Understanding each stage prevents surprises and keeps the transaction on track.

Attorney Review and the Contract of Sale

In New York City, real estate transactions are handled by attorneys, not title companies acting as escrow agents. After an offer is accepted, the seller's attorney drafts the contract of sale and sends it to the buyer's attorney for review. The buyer's attorney reviews the contract, the building's financials, the offering plan, the house rules, the meeting minutes, and any pending litigation or assessments. This due diligence period typically takes one to two weeks. Once both attorneys are satisfied, the buyer signs the contract and delivers a contract deposit, typically 10% of the purchase price, which is held in the seller's attorney's escrow account until closing.

Timeline from Accepted Offer to Closing

After contracts are signed, the buyer applies for their mortgage if they have not already done so, and the lender orders an appraisal and conducts its own review of the building. The condo board then reviews the application package, which is typically far less involved than a co-op application, and issues a waiver of its right of first refusal. Once the lender issues a commitment letter and the board waiver is received, the transaction moves toward scheduling a closing. Condo closings in New York City are typically held at the office of the buyer's title company or lender's attorney.

What Happens at the Closing Table

At the condo closing, the buyer signs the mortgage documents and the deed is transferred from seller to buyer. The title company records the deed and mortgage with the New York City Register, and title insurance is issued. The buyer delivers the balance of the purchase price, typically by wire transfer, and pays all closing costs. Keys are handed over at or shortly after closing. Unlike co-op closings, there is no managing agent present and no stock certificate or proprietary lease to transfer. The transaction is cleaner in that respect, though the closing costs are higher.

For a broader look at how New York City real estate prices and market conditions are shaping decisions right now, the 2026 New York real estate market guide covers pricing trends, inventory, and timing across the city's major markets.