The written agreement sets the terms
A discreet property search in New York City begins with a written buyer-representation agreement that spells out whether the relationship is exclusive, how long the search will run, what the brokerage earns, and whether the buyer owes a shortfall if the seller pays less than the agreed compensation. The agreement should also state whether the broker may contact owners, private networks, attorneys, family offices or listing agents, and how properties introduced before or after termination are handled.
There is no citywide standard retainer, minimum commission or hourly rate for off-market searches. Compensation depends on the property, the services selected, and any amount offered by the seller. A brokerage may quote a flat retainer, a percentage of the purchase price, or a hybrid structure, but those terms are firm-specific and must appear in the signed agreement.
Off-market channels vary by brokerage
A broker conducting a discreet search may tap private client networks, reach out directly to owners, consult attorneys, developers, family offices and property managers, or work broker-to-broker. No industry-wide list of off-market channels exists, and the gathered sources do not establish a typical success rate or inventory share for unlisted properties.
Discreet does not mean exempt from disclosure, agency, fair-housing, anti-discrimination or licensing rules. It means the buyer's identity and search parameters are shared selectively, not that the transaction escapes regulatory oversight.
The pied-à-terre surcharge adds a new line item
New York's non-primary-residence surcharge took effect July 1, 2026 and runs through June 30, 2031. The charge is calculated on the Department of Finance market value—the figure printed on the annual Notice of Property Value—not on assessed value, purchase price or mortgage amount.
For condos and co-ops during Phase 1 (fiscal years 2026–27 through 2027–28), the surcharge is 4 percent of market value when that value falls between $1 million and $3 million, 5.25 percent from $3 million to $5 million, and 6.5 percent at $5 million and above. The rate applies to the full market value once the threshold is crossed, not only to the amount above it. Houses and one-to-three-family properties face lower rates—0.8 percent from $5 million to $15 million, 1.05 percent from $15 million to $25 million, and 1.3 percent at $25 million and above—but the same flat-rate structure.
A condo valued at $2 million owes $80,000 a year. A co-op at $4 million owes $210,000. A townhouse at $6 million owes $48,000. Those bills arrive January 1 each year and sit on top of regular property tax; abatements and exemptions do not offset the surcharge.
Exemptions hinge on primary residence
The surcharge does not apply if the property is the primary residence of the owner, an immediate family member—spouse, child, sibling, parent, grandparent or grandchild—or a tenant holding a 12-month arm's-length lease. Primary residence is determined as of the January 5 taxable status date preceding the fiscal year, not by how many days the owner spent in the unit during the year.
For the first surcharge year, DOF mailed initial notices by August 30, 2026. The deadline to apply for an exemption was October 13, 2026. Owners who received a notice and believe the property qualifies for exemption had 30 days from the notice transmission date to appeal. The City extended the original August deadline twice—first to September 18, then to October 13—but that window has now closed for fiscal 2026–27.
Conquest data show 24,000 units above the threshold
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll finds roughly 24,000 residential units citywide with market values above the surcharge thresholds. Most are primary residences and owe nothing; the figures represent exposure, not a forecast of what the City will collect.
Manhattan holds 16,709 condo and co-op units and 3,356 houses above the threshold. Brooklyn accounts for 3,311 houses and 649 condos and co-ops. The Bronx, Queens and Staten Island together add fewer than 150 units. Among Manhattan condos and co-ops, ZIP 10013 (Tribeca) leads with 1,751 units over the threshold, followed by 10022 (Midtown East) with 1,245 and 10021 (Upper East Side) with 1,368. Median market value in those ZIPs runs $1.4 million to $1.6 million, putting most units in the 4 percent bracket.
Another 4,400 condo and co-op units sit within $100,000 of the $1 million threshold. A modest DOF revaluation in the next roll could push them into surcharge territory.
What to watch
Phase 2 begins July 1, 2028. DOF will revalue condos and co-ops using comparable sales, and the rate schedule will shift toward the lower house brackets—0.8 percent, 1.05 percent and 1.3 percent—with a higher threshold. The Comptroller projected roughly $500 million a year in surcharge revenue, but actual collections depend on how many units remain non-primary and how many owners successfully claim exemptions.
For buyers conducting a discreet search, the surcharge is now a fixed annual cost that does not fluctuate with occupancy or rental income. A $3.5 million condo carries a $183,750 surcharge every year it remains a second home. That figure belongs in the pro forma alongside maintenance, taxes and insurance, and it makes the primary-residence exemption—or a qualifying tenant—worth engineering from day one.
Conquest's free DOF market-value and surcharge estimator shows whether a property falls above the threshold and what the annual bill will be. The tool pulls from the same July 2026 roll DOF uses to calculate the charge.
Frequently asked questions
Is my NYC apartment subject to the pied-à-terre tax if I don't live there full-time?
The surcharge applies unless the property is the primary residence of you, an immediate family member (spouse, child, sibling, parent, grandparent, or grandchild), or a tenant holding a 12-month arm's-length lease as of the January 5 taxable status date. Primary residence is determined on that date, not by how many days you spent in the unit during the year.
How much is the pied-à-terre tax on a $2 million condo in NYC?
A condo valued at $2 million by the Department of Finance owes $80,000 a year under Phase 1 (fiscal years 2026–27 through 2027–28), which applies a 4 percent rate to the full market value. The surcharge sits on top of regular property tax and is not offset by abatements or exemptions.
Does the NYC pied-à-terre surcharge apply to the purchase price or the assessed value?
The surcharge is calculated on the Department of Finance market value—the figure printed on the annual Notice of Property Value—not on assessed value, purchase price, or mortgage amount. DOF revalues properties periodically, and the surcharge rate applies to the full market value once the threshold is crossed.