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1. Identify a buyer’s broker. Typical time frame: varies. The first step is to find a trusted New York City real estate broker that knows intimately knows the market and real estate purchase process. TopAgentGuide.com can help by providing objective reviews and profiles of New York City’s top real estate brokers, sorted by the neighborhoods, languages, and niches in which they specialize. Having a top professional representing you removes much of the risk and stress of buying a home. Top 10 reasons to hire a top real estate agent.
2. Seek pre-approval for a mortgage. Typical time frame: same day to two days. You must know how much you can spend before you can spend it.
3. Find an apartment and place an offer. Typical time frame: varies. Some buyers need to see many possible choices before making a decision, while others need only see a few. When you have found the right property, your agent will convey your offer to either the seller’s agent or to the seller directly. Offers are made verbally in New York City. The seller may “counter” your offer thereby beginning the negotiation process in which both parties agree upon price, terms, and closing date.
4. Negotiate. Typical time frame: one day to two weeks. This depends on the buyer and seller. Some transactions move quickly and some don’t. It’s always a good idea, however, to keep momentum going. Remember that there is more to negotiate than price alone. What will the closing date be? Would a longer closing be more attractive or does the seller have the desire to close quickly? What personal items will remain with the apartment? In New York, for instance, all appliances typically remain, but do the window air conditioners? What about the curtains? Ask about everything and remember it is all part of the negotiation.
5. Sign the contract. Typical time frame: two days to three weeks. All property transactions in New York City require a real estate attorney. Your real estate agent can assist you in finding experienced attorneys. Once negotiations are complete, the seller’s attorney will begin preparing a contract of sale during which time your attorney will begin his/her due diligence. Your attorney will review the contract, read the co-op or condo’s financial statements and bylaws, review the building’s offering plan, read the board meeting minutes, etc. Once your attorney feels comfortable with his/her findings, you will be invited to sign the contract and submit a deposit of approximately 10% of the purchase price. The contract is then forwarded to the seller for signature. The 10% deposit is held in the seller’s attorney’s escrow account until closing. There is no reason a contract cannot be signed relatively quickly. Remember to manage your attorney if things aren’t moving quickly enough. Until the contract has been delivered and signed by all parties, the seller can still entertain and accept other offers. If you take too much time, you could lose the apartment.
6. Apply for a mortgage. Typical time frame: three to nine weeks. You have already prequalified, identified the property and signed a contract. Now is the time to apply for a mortgage. Receiving a commitment letter from the lender can take anywhere from three to nine weeks. It is important to use a reputable mortgage broker or banker and, once again, manage the process.
7. Complete the board package. Typical time frame: three to nine weeks. Your TopAgentGuide.com agent will supply you with the board requirements and application materials. Board packages typically contain: an application, financial statements signed by a CPA and all back-up materials, tax returns, bank statements, letters from bankers, accountants and employers verifying all claims, letters of personal and business reference, the contract of sale, and a bank commitment letter (if you are financing). When your package is finished, your agent will forward it to the Managing Agent. Once the Managing Agent determines that your application is complete and all credit checks are approved, your package will be forwarded to the Board of Directors. No application will be accepted by a Managing Agent unless it is complete. While co-op and condo packages look similar, the process is quite different. For co-ops, once your package is submitted, the Board will review your application. If your application meets initial approval, you will be invited to be interviewed by the Board or by an interviewing committee. This can sometimes take time to schedule; some buildings move more quickly than others. In the case of a condominium, there is generally no formal interview. Your application will be reviewed, and if all required materials are included and in order, an approval is typically granted. The entire process can move quickly in a condominium, and assuming a loan can be secured in a timely fashion, the process can move from contract to closing in about 60 days.
8. Interview with the Board. Typical time frame: 30 minutes to an hour. The board interview is a business meeting and should be treated as such. Each cooperative has its own way of handling new applicants: some co-ops meet on a monthly basis and you must wait until their scheduled meeting; some meet on an as-needed basis; some don’t meet at all in August or December because of holidays and vacations; etc. Do everything possible to make yourself available. It will seem to you that all of this is on “their” terms, but, for better or worse, this is how the process works. Try to keep emotion out of the process. If you are approved, you should hear within one to two days after your interview. Occasionally it can take longer. How to pass a board interview.
9. Schedule the closing. Typical time frame: one to two weeks. Be flexible! There are many moving pieces to this process and many aspects that are simply beyond your control. Assuming all parties are “ready to go,” however, the closing can generally be scheduled for one to two weeks after board approval.
10. Close. Typical time frame: varies. Attend the closing, sign the paperwork, and pick up the keys!
Auction Marketing
on Jan 19th, 2010
@ 1:51 pm:
So happy that I discovered your site . Looking forward to learning more about you.
I work with a Real Estate Auction company in Alabama. Check out my link. I am always looking to expand my network. Thanks again!