 Photo by Denys Nevozhai on Unsplash Buying a home in New York City is a fast-paced and competitive process. If a property is priced well, it sells quickly. To ensure you’re ready to make a strong offer when you find the right condo or co-op, you need to be prepared from the start. Here’s a guide on how to make an offer in NYC and the essential documents you’ll need. Be Prepared from the Start Many buyers start their home search casually, only to fall in love with a property and then scramble to gather the necessary documents to make an offer. To avoid this, it's important to have everything ready from the beginning. Understanding the asking price and market value will help you make a fair and competitive offer. Key Documents and Steps for Making an Offer in NYC 1. REBNY Financial Statement The REBNY Financial Statement is crucial for any offer in NYC. This document outlines your assets, liabilities, income, and overall financial picture. Preparing this statement can take some time, so it's best to start early. Home sellers often review this statement as part of their decision-making process. 2. Mortgage Pre-Approval, Pre-Qualification Letter, or Proof of Funds Having a mortgage pre-approval or pre-qualification letter is essential before you start your property search. It shows sellers that you are a serious and capable buyer. If you're planning to pay in cash, a proof of funds document will suffice. This ensures that you won’t be delayed waiting for bank approval while other buyers are making offers. 3. Real Estate Attorney An experienced real estate attorney can make the home buying process much smoother. Most attorneys charge a flat fee, payable only if the deal is completed, so don’t hesitate to ask questions. If you don’t have an attorney, your real estate agent can recommend one. 4. Estimated Closing Costs NYC closing costs can be substantial and often catch buyers off guard. Discuss these costs with your attorney or agent to get an accurate estimate. The NYC mortgage recording tax is a significant portion of these costs, especially for condo purchases. 5. Contract Deposit & Down Payment In NYC, you typically need to put down at least 20% of the purchase price, with an initial contract deposit of 10% when signing the contract. Some buildings and mortgage companies may accept less, but higher down payments are generally seen as stronger offers. 6. Post-Close Liquidity (Co-Ops Only) Co-op boards often require buyers to have at least two years’ worth of maintenance and mortgage payments in post-close liquidity. It’s also wise to estimate your debt-to-income ratio. For co-ops, a ratio under 30% is preferred, with some more stringent boards requiring 25% or lower. Consult Professionals Real Estate Agent A knowledgeable real estate agent can help you determine the value of a home, navigate negotiations, and understand the market dynamics. Their expertise is invaluable in making a competitive offer. Mortgage Lender Working with a mortgage lender early in the process ensures you understand the down payment requirements and have your financing in order. This distinction is crucial to differentiate the down payment from the contract deposit. Conclusion The New York City real estate market is highly competitive. By being well-prepared and educated about the process, you increase your chances of successfully purchasing your dream home. Start gathering your documents and consulting with professionals early to make a strong and compelling offer when the right property comes along. If you have any questions about the NYC home buying process, please contact our team leader Colin O'Leary at 646-300-2012.
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New York City's real estate market offers two main housing options: condos and co-ops. 🏢 Each comes with unique advantages and challenges, so understanding their differences is essential when making a decision. Condos: Owning a condo means you acquire your unit outright while sharing common areas with other residents. This option offers several benefits:
Co-ops: In a co-op, you buy shares in a corporation that owns the building, rather than purchasing real estate directly. Key features include:
Key Differences to Consider:
Which is right for you? It depends on your lifestyle, finances, and long-term goals. Whether you're looking for flexibility, investment potential, or affordability, understanding these factors will help you make the best choice for your needs. For personalized advice and to explore your options, contact us at 646-300-2012 for a free consultation.  Photo by Courtney Cook on Unsplash Summer in New York City is a time of vibrant energy and endless possibilities. From outdoor adventures to cultural experiences, the city offers a plethora of activities to suit every taste and interest. Whether you're a local resident or a visitor exploring the Big Apple, here are 10 fun things to do in NYC this summer that will make your experience truly memorable.
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Berkshire Hathaway HomeServices Fillmore 4717 Avenue N, Brooklyn, NY 11234 Colin R. O'Leary Founder & Team Leader Call/Text: 646-300-2012 [email protected] |
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