New York City is currently one of the most lucrative real estate markets across the globe.  Which means obtaining property in Manhattan is not an easy process, even for relatively seasoned buyers.  However the difficulty is without doubt worth the rewards, as owning property in Manhattan is an amazing/sound investment for both the present and future.

 

At Homestead New York our agents are well versed in all aspects of the Buyer’s market, as well as simultaneously committed to making sure you have a thorough understanding of all stages of the process—from the creation of a Board Package/Application to the Final Closing—we will provide you with all the knowledge necessary to make the best possible investment.

 

Our Buyer’s Guide is designed to give you a basic overview of the steps you will encounter during the course of purchasing your property. In New York City, buying policies do fluctuate (at least somewhat) from building to building, but in general this is a standard “Blue-print” for what you should expect as a prospective buyer.

 

Focusing Your Search

 

Whether you are purchasing property exclusively as an investment, or likewise intend to use it for personal housing, our agents will help you become a competitive prospective buyer.

 

Together we will go over your exact needs, using these priorities to create a focused and efficient search for your unique situation. We will isolate the neighborhood(s) that best fit your buyer’s profile, keeping in mind your personal real estate requirements, in terms of: space, financial capabilities, proximity to desired amenities, school systems, building type, transportation, etc.

 

 

Co-ops/Condominium

 

One of the first decisions a prospective buyer in NYC needs to make is what sort of building is the best fit for their investment purposes.  In Manhattan there are two main options.  Our agents will aid you further in determining where you will be the most competitive applicant.

 

Co-ops

Co-ops are the primary building type in Manhattan, and function much like a

corporation.  Buying into a Co-op means that rather than purchasing an apartment

as a singular unit, you are instead buying a “share” of the building at large. 

 

All of the buildings expenses, such as: its mortgage, maintenance, security costs, and staff salaries are split amongst the corporation’s members (i.e. you and your

fellow apartment owners).

 

Monies owed, from share-holder to share-holder, are determined based on varying

factors, which often include: Where an apartment is located within the building

(I.e. what floor/if it is in the rear or front), and how many of the building’s

apartments an individual owns.

 

            All persons in possession of property within a Co-op are automatically on its

board of directors, and are subsequently responsible for creating/enforcing

building guidelines (such as rules on subleasing), as well as approving/declining

new buyer applications.

 

If you decide to purchase into a Co-op, make sure you are apprised of its

particular regulations before you submit your application, to make sure you are

fully comfortable with its policies.

 

 

Condominiums

            Unlike purchasing property in a Co-op, buying within a condominium means that

you do own your apartment outright, and hence are thereby responsible for all

taxes on the property.

 

Similarly to holding shares in a Co-op, persons owning property within a

Condominium are also required to pay maintenance fees monthly, must adhere to

the policies set by the Condominium’s Board of Directors, and must also be

approved as a buyer by said board.

 

Condominiums, in general, are less stringent than Co-ops in most facets,

specifically in terms of allowing prospective applicants to utilize outside

financing (i.e. obtaining a mortgage or loan).

 

 

 

 

Make an offer/Negotiate

 

Once you have decided upon a property our agents will help you settle upon your initial bid, and subsequently submit it to the seller.  More likely than not said seller will commence the negotiation process by offering a counter bid, a this point you will need to obtain the services of a seasoned New York City real estate attorney.  Homestead New York works with several such well respected property lawyers, and will be happy to connect you with the most appropriate negotiator for your given situation      

 

 

 

 

 

Signing a Contract

 

Once you and the seller have agreed upon an acceptable offer, the seller’s attorney will draw up a contract, for your attorney, and you will in turn sign said contract and submit it for execution.  The contract is contingent upon buyer approval from the building’s Board of Director’s. 

 

 

Creating your Board Package/Buyer’s Application

 

Though the documentation required for potential buyers does vary slightly depending on the building type you wish to purchase in, you should be prepared to provide the following paperwork.

 

Professional Verification

            -A professional reference letter on official letterhead, which discloses your

current salary, must be provided

            -At times further employment verification is required (via copies of pay stubs or

other such tangible documentation)

-Copies of your tax returns from at least the past three years

-You will more likely than not, also be asked to provide a record of your pertinent employment history

 

Personal Verification

            -A personal reference letter on official letterhead (if possible) must be provided

 

Financial Verification

            -A financial reference (generally from your banking institution) on official

letterhead, which fully discloses your level of fiscal stability/fiscal history (via supporting documentation), must be provided.

 

-A credit check will be performed, before submitting your application, make sure to review your credit report, and clear up any outstanding debts.

 

-Copies of recent bank statements (the exact number varies from building to building)

 

-If you are planning on taking on a mortgage of loan, it is important to have the pre-approval paperwork prepared before submitting your application.  (Please visit our mortgage guide/calculator for pertinent information on this process)

           

 

Our agents will be fully available to assist you in collecting all of these necessary documents, as well as the ensuring successful completion of your competitive application.

 

 

The Board Interview

 

Often the stage following the submission of your prospective buyer’s application (specifically in a Co-op situation) will be to undergo an interview with the Building’s Board of Directors.  This is generally thought of as an occasion for your candidacy to be further scrutinized, which to be fair is the primary purpose of this meeting.

 

However the interview is also a great opportunity to assert yourself as a desirable buyer, as you will be given a change to discuss your application, and subsequently highlight its strong points.

 

 

Homestead New York, will ensure that you enter this interview fully prepared, and confident in your ability to impress even the most fastidious of Building Boards. You will be coached on how to handle the wide range of personal and financial questions that could feasibly be posed, well in advance of the set interview date.  We will help you turn this potentially stressful step in the buying process, into an asset for your application, providing you with the “bargaining” tools necessary to assert the desirability of your candidacy.

 

 

Closing

 

 

Roughly 1-2 weeks after you receive board approval, a date for closing will need to be scheduled.  This date is generally set by the managing agents(based upon the schedules of the buyer’s lawyer, seller’s lawyer, and banking institute).

 

The closing process entails a final inspection of the real estate, the completion of pending financial transactions, and the creation of an official deed/title for your property.

 

Homestead New York will go over all closing costs with you, and ensure that this last step of the buying process runs smoothly and efficiently.