Not sure how to begin the purchase process? Here’s a step by step guide for home buyers in New York City:
Make a list of all of your criteria by order of importance. This will help your Bond agent find properties that fit your budget and match as many of your requests as possible.
Your agent will research our extensive listings database and will arrange viewings of properties that fit your criteria and budget.
New York City may be the fastest moving real estate market in the world. Therefore, offers from mortgage pre-qualified buyers are often taken more seriously than those awaiting mortgage qualification. Obtaining a pre-qualification letter is an easy, cost-free service provided by banks or reputable mortgage brokers that give the seller comfort in your ability to purchase their apartment.
Making an Offer
Once you have found your perfect property, your agent will submit a written offer on your behalf. This letter will include offer price, the name and contact information of your New York attorney, and your personal information such as income, financial qualifications and any other information that will make you a stronger candidate.
After negotiations are complete and the seller accepts your offer, your Bond agent and the seller’s agent will prepare and distribute a “deal sheet” that provides the required information to both parties’ attorneys and brokers and conveys the agreed-upon terms for the preparation of the sales contracts.
Contract of Sale
The seller’s attorney will draft a contract of sale and forward it to your attorney for review. Once you sign it, it will be sent with a deposit check (typically 10% of the purchase price – please note this is only a guideline and a seller may require a different amount) to the seller’s attorney who will hold the deposit in escrow until the closing of sale. Once the seller signs the contract, it is deemed “fully executed” and binding. This process may take one to three weeks, depending on terms and review of the offering plan and board minutes by your attorney, called “due diligence.”
This process may take 45 or more days to complete, therefore it is important to contact your bank or mortgage broker immediately after having a signed contract. Lenders will require a “fully executed” contract with the application.
Preparation of the Board Package
Your Bond agent will assist you in the preparation of your Co-op or Condo Board Package, craft the board application, provide copies to the management company and help you with any other requirements.
Board Interview (This applies to Co-op sales only)
You will be contacted for a scheduled interview with the Board of Directors. Notification of their decision will be given in 48 to 72 hours. Your attorney will coordinate the closing once the board has given purchase approval.
Your Bond agent will accompany you to inspect the property prior to the closing of sale. This inspection is important to verify all is working properly in the apartment and the seller has or is moving out as agreed. Important things to inspect are appliances, faucets, plumbing, light fixtures, outlets, etc.
The Closing of Sale
Closings are normally held at the office of the managing agent with your attorney, the seller and seller’s attorney, the lender’s attorney, a representative of the management company’s transfer department and both real estate agents in attendance.
This article was contributed by BOND New York, the fifth largest residential real estate agency in Manhattan with seven offices and over 500 agents. To read more about NYC living go to: www.bondnymagazine.com