Buying

How much do you have available to spend? How much can you afford? ~50% of all transactions in NYC are completed with mortgage financing. In you go this route, consult your mortgage banker/broker to help determine your budget, and obtain a mortgage pre-approval letter. This letter will indicate the amount the bank is likely to lend you, it will be required in your offer presentation to show that you are a qualified, serious buyer.

This should be the most enjoyable step of the entire process (other than moving in!). An experienced, knowledgeable broker will save you a substantial amount of time and effort by only presenting properties to you that match your specific criteria. They will have already addressed essential questions about each building’s policies, location, comparable listings and recent pending and closed sales. Most buyers see 10 to 30 properties before feeling ready to purchase. Be sure to explore the neighborhoods and keep an eye out for necessities like public transportation, schools and grocery stores. 

In New York City, after agreeing on terms negotiated by their agents both the buyer and seller then engage the services of their own respective transaction attorneys for execution of the Contract of Sale. The seller’s attorney issues a contract to the buyer’s attorney, along with all necessary documents pertaining to the building’s financials, meeting minutes, by-laws and legal structure. The buyer’s attorney reviews all due diligence materials, and both lawyers negotiate any changes to the contract. Once the buyer’s lawyer is comfortable with the contract, the buyer/s sign the contract and issue a 10% deposit which is held in the seller’s attorney’s escrow account until closing. Once the signed contract is received with the 10% deposit, the seller/s signs too, thereby fully-executing the contract. Contingencies in the contract can include mortgage financing, board approval, closing dates, etc. Legal transfer of ownership occurs upon closing.

Each building’s purchase application will be very particular about what is required. Most boards require full disclosure of your financial assets and income, including supporting documentation, current salary, the past 3 years of tax returns, credit history, and personal and business reference letters. Buyers who are unwilling to divulge this information are in a better position to purchase a condominium, although many condominiums require much of this information too. If you are not financing, this part of the purchasing process could take 2-4 weeks.

In the board package, your broker will strive to present you in the most appropriate manner for your specific building. Once the board package is reviewed, fine-tuned and duplicated, the package is then submitted to the building’s managing agent for further review and distribution to the board members.

Upon board approval, the managing agent, lawyers, banks and title company coordinate a mutually agreeable closing date, time and location. Your attorney will advise you of where to be, when and with what. Your agent will schedule a walkthrough of the property on the evening before or morning of the closing, to determine if any credits are due to you at closing. Properties are usually delivered ‘as is,’ broom-swept and with working appliances. At the closing, the buyer pays the additional down payment amount, bank fees, taxes, lawyers fees, and signs various documents that legally transfer ownership of the property. The process ends with handshakes, congratulations, and keys to your new home.