Buyer's Guide

The process of buying an apartment in New York can be a daunting task, but with the right support of an experienced agent, the experience can become enlightening, rewarding and even fun. Here are the steps you should nomally expect:

1.) Talking to a Mortgage Professional- Before looking at properties, you should get an idea of what you can afford. Based on your financial profile, a mortgage professional can quickly determine what you can spend on your new property. There is no cost or obligation to you for this service until you actually apply for a loan.


2.) Retaining an Attorney- Brokers in New York City do not prepare contracts. You must hire a real estate attorney. It is important to hire an experienced attorney who specializes in the laws of New York City Real Estate. Your attorney will then review the contract, the property financial condition, the board minutes and the building’s by-laws.


3.) Looking at Properties- Most buyers look at an average of 15-30 properties prior to making their purchase. We will schedule as many appointments as possible at places that meet your criteria. Please keep in mind that some apartments have limited showing times, and that the best properties get snatched quickly. Try to be as flexible as possible, when we suggest viewing a property.


4.) Making an Offer-Once we find you the right property, get ready for the thrill of buying. Offers are made verbally in New York City. A bid or offer will be placed through us to the seller or the listing agent. The seller may make a “counter offer” and begin a negotiation process until an agreement is reached about the price and terms. We will report back to you at every stage.


5.) Signing the Contract -Once your attorney concludes that the contracts and property conditions are satisfactory, you will be ready to sign the contract. At this point, you will generally deposit 10% of the sales price into the sellers’ attorney escrow account. Keep in mind that until the seller has counter-signed the contract, he/she is still free to entertain and accept other offers.


6.) Gathering your Financial Documents and References- For both your loan application and your board application, you will need to supply financial qualifications. Most common are 2-3 years of tax returns, bank and investment statements, business references, and personal reference letters. Don’t worry, we will help you though the process.


7.) Obtain Financing- Your bank will appraise the property, review your qualifications and issue a “bank commitment letter”.

8.) Submitting Board Package-Once your package has been completed, we will review it prior to submission. Only then will your package be submitted for board review. Expect review time to last anywhere from 2-6 weeks.


9.) Meeting the Board of Directors (Co-op only) -The managing agent will schedule an interview for you to meet the board. Some boards meet only once a month, so try to make yourself available we make you aware that the time has come. This board interview is a serious matter and should be treated as such. Answer only the questions you are asked without volunteering extra information. We can train you and guide you through this process. The board decisions can be given immediately or may take up to one week from the interview date.


10.) Scheduling a Closing– The typical time from board approval to closing is 7-14 days to account for filings and late paperwork, and the need to coordinate everybody’s schedule. Once you receive your board approval, you are ready to close the deal. Make sure to get the exact check information from your attorney, and give yourself enough time to obtain certified or bank checks. When that’s all over, you’re done! Enjoy your new home!

Closing Costs

The following closing cost guide is designed to give you the general perspective of costs associated with the purchase or sale of a cooperative, condominium or townhouse property. Please note that the Closing Cost below are only estimates and that a potential buyer and sellers should consult their real estate attorney or financial advisor for specifics.

Closing costs below are only to be used as a guide.

Co-ops

For the Buyer :
Your Own Attorney: Typically start at $1500
Points: 0%-3% of loan amount (optional, but your rate can come down)
Application Fee: $300-$350
Bank Attorney: $500-$750
Appraisal Fee: $300+ (depending on sales price)
Underwriting Fee: $350
Judgment & Lien Search: $250-$350
UCC-1 Filing Fee: $20-$100
Move in Deposit: $500+ (sometimes refundable)
Short Term Interest: up to 1 month (depending on closing date)
Maintenance Adjustment: up to 1 month (depending on closing date)
Mansion/Luxury Tax: 1% of purchase price if $1,000,000 or more
Miscellaneous Co-op Charges: Vary by building

Condos

For Buyer :
Your Own Attorney: Typically start at $1500
Points: 0%-3% of loan amount (optional, but your rate can come down)
Application Fee: $300-$750
Bank Attorney: $500-$750
Appraisal Fee: $300+ (depending on sales price)
Underwriting Fee: $350
Misc Fees: $300
Managing Agent Fee: $300
Tax Escrows: 2-6 months
Mortgage Tax: 2.05% of loan amount for loans under $500,000. 2.175% of loan amount for loans exceeding $500,000.
Fee Title Insurance: Approx. $450-$650 per $100,000 of sales price under 1M, +15% on $1M or more
Mortgage Title Insurance: $250-$500 per $100,000
Move in Deposit: $500+ (sometimes refundable)
Short Term Interest: up to 1 month (depending on closing date)
Common Charges Adjustment: up to 1 month (depending on closing date)
Real Estate Tax Adjustment: 1-3 months (depending on closing date)
Mansion/Luxury Tax: 1% of purchase price if $1,000,000 or more



Townhouses & Family Homes

For Buyer :
Your Own Attorney: Typically start at $1500
Points: 0%-3% of loan amount (optional, but your rate can come down)
Application Fee: $300-$750
Bank Attorney: $500-$750
Appraisal Fee: $300+ (depending on sales price)
Underwriting Fee: $350
Misc Fees: $300
Processing Fee: $300+
Tax Escrows: 2-6 months
Mortgage Tax: 2.05% of loan amount for loans under $500,000. 2.175% of loan amount for loans exceeding $500,000.
Fee Title Insurance: Approx. $450-$650 per $100,000 of sales price under 1M, +15% on $1M or more
Mortgage Title Insurance: $200-$500 per $100,000
Move in Deposit: $500+ (sometimes refundable)