Buyers Peter Mancini February 18, 2025
Buying a home in Brooklyn? You’ve saved up, crunched the numbers, and found the perfect brownstone, condo, or co-op. But then, out of nowhere, a massive financial surprise hits—one you never saw coming.
It happens all the time. Just ask them. They thought they did everything right when purchasing their stunning Boerum Hill condo—until their first property tax bill arrived.
💰 Expected: $223/month
😱 Reality: $1,500/month
And that was WITH a tax abatement already lowering their bill by a third!
Brooklyn real estate is full of hidden costs that can wreck your budget if you’re not prepared. Here’s what every buyer needs to know before signing on the dotted line.
Many buyers fall for low estimated tax numbers—especially in new developments. Here’s why that’s a huge mistake:
🔹 Initial tax estimates are often based on land value, NOT the finished property. Once the city reassesses, your bill can double—or worse.
🔹 Tax abatements are temporary. That “low” tax bill you saw? It can shoot up the moment the abatement expires.
🔹 Gentrifying neighborhoods get reassessed fast. The Real Deal reports that tax assessments in Brooklyn’s hottest areas jump dramatically within the first few years of ownership.
📌 Buyer Tip: Don’t just ask what the taxes are now—ask what they will be in 2-5 years. I help my clients uncover the real numbers so there are no nasty surprises.
If you’re buying a Brooklyn co-op, your monthly payment includes:
✔ Property taxes
✔ Building maintenance
✔ Utilities (in some cases)
Sounds simple, right? Wrong.
🔸 Co-op boards can raise maintenance fees anytime. Increases happen for building repairs, rising property taxes, and overall costs.
🔸 Special assessments can cost thousands. If a building needs a new roof or lobby renovation, every shareholder gets a bill.
🔸 Tax changes affect your payment. If the city reassesses the building, your maintenance fees go way up—even if nothing else changes.
📌 Buyer Tip: Ask for five years of financials before buying in a co-op. I’ll help you break down the numbers so you know exactly what you’re walking into.
Buying a condo? Your common charges are separate from property taxes—but they can still be a hidden money pit.
💸 Why condo fees increase:
🔹 Unexpected building repairs (like HVAC or plumbing overhauls)
🔹 Management fees & insurance hikes
🔹 Inadequate reserve funds leading to special assessments
Even worse? Some condo buildings don't disclose future expenses upfront. That “affordable” common charge can double overnight.
📌 Buyer Tip: Always check the building’s reserve fund. If they don’t have enough money for repairs, owners will be footing the bill.
Dreaming of a Brooklyn brownstone? Owning a townhouse offers independence—but it also comes with serious financial responsibilities.
🏚 Hidden costs of owning a brownstone:
🔹 Landmark restrictions can make renovations extremely expensive.
🔹 Two identical homes can have completely different tax bills based on past renovations.
🔹 Utility costs are much higher than condos or co-ops—you’re on the hook for everything.
📌 Buyer Tip: Don’t assume all brownstones cost the same to maintain. I help buyers calculate true carrying costs before they commit.
Most Brooklyn buyers only look at interest rates, but here’s what they don’t consider:
💰 Bank fees & closing costs – Loan origination, title insurance, and mortgage tax add thousands to your upfront costs.
📉 Rate adjustments – Many lenders offer teaser rates that increase after closing.
📑 Co-op & condo financing rules – Some buildings require higher down payments or board approvals, making financing tricky.
📌 Buyer Tip: Work with a real estate pro (like me!) who can connect you with mortgage lenders that actually understand Brooklyn properties.
Brooklyn real estate is competitive—but the biggest mistake buyers make is not knowing the real numbers before they buy.
🔍 I help buyers uncover the true costs of any property—before they sign.
✔ Want to make sure your dream home won’t turn into a financial nightmare?
✔ Need help decoding co-op, condo, or brownstone expenses?
📩 Let’s talk! DM me, call 📞 917.916.5126, or email 📧 [email protected].
📺 Watch my latest video on hidden costs: https://youtu.be/wl9AGihevIQ
I’m Peter Mancini with Pen Realty—helping you make smart real estate moves with A Signature Experience.
🔥 Tag a friend who’s buying in Brooklyn so they don’t make these mistakes!
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By Peter Mancini, Licensed Real Estate Broker Pen Realty
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By Peter Mancini, Pen Realty | REBNY & BNYMLS Member
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