Buying a CO-OP Apartment in Manhattan, NYC
Purchasing an apartment in a co-op in Manhattan can be challenging, as co-ops typically request a lot of information from buyers, which may be unfamiliar to them. To assist with this process, I have created a guide to help navigate it.
Step 1
Getting Pre- Approved
Ready to make your first NYC purchase? Are you selling your current apt and planning on buying another one? Make sure to get a pre-approval first!
It will help you with finding the apartment of your dreams within your budget and will show brokers and homeowners that you are serious, willing and able buyers. A pre-approval is one of a few documents needed to submit when making an offer.
Step 2
Needs vs Wants
We all have a budget, or even if we don't, we have things we absolutely need in our home and others that we can do without. A great example to that would be a fireplace in the apartment. In Manhattan, it is by far not common to have a working fireplace in a coop/condo unit. Many times, it has nothing to do with the budget but just the architecture and other city regulations. The key here is to have a general idea of our wants and needs and as we go along in the process.
Step 3
Working with a R.E. agent
There are many advantages and almost no disadvantages to working with a real estate agent. Whether you are a home seller or home buyer, you want a professional on your side that will guide you through the process. Provide you with accurate CMA's specifically to your apt. size and type. Negotiate on your behalf, know how to menuver the very many aspects of a Coop board, DOB if needed, lawyers, lenders, etc.
Step 4
Make an offer
Making an offer can be the thing that will determine whether you are going to get that home or not. The price, as well as the various contingencies can either get an owner to agree or shy them away from your offer. Watch this episode as it will give you a deep insight into the psychology of making an offer.
Step 5
Negotiate Terms
This is where your attorney will negotiate with the other side's attorney the contract of sale. Make sure to go through the home a few times, ask if any of the furnishing is staying and make sure to mention it to your broker. In Manhattan, it's typically as-is / where-is condition but not always.
Step 6
Sign contract
The day has come to sign the contract and submit the deposit. Make sure you have 10% of the purchasing price ready to be wired to the seller's attorney escrow account at the time of signing the contract. Remember that in NYC, AALL PARTIES HAVE TO SIGN + DEPOSIT HAS TO BE PAID IN ORDER TO BE FULLY "IN CONTRACT". Up until that time, and owner has the abslute right to accept another offer.
Step 7
Financial Approval
If you are financing this is where you're going to start working rigoursely on getting the commitment letter. Typically, the contract of sale give you 5 weeks to do that. If you need more time you can ask for extension but it is up to the seller to agree.
Step 8
Board Package
As you work on getting your financing in order you will also need to get your board package going with your real estate agent. This goes to condo and coops. Where-as condo packages are easier to deal with, co-op packages extensive and are far more elborate. Make sure to allow enough time for these.
Step 9
Board Interview
Your broker will prepare you for the board interview and make sure that you have the right answers for anything that comes along. Just be yourself, answer directly to the point, and make sure to say good things about the building and the apartment. After all, you chose it and the board members are going to be your neighbors.
Step 10
Closing day
It's finally here! The closing day! Expect to see the bank rep, both lawyers, brokers, and both parties. If financing is involved it can take a bit longer. Your lawyer will direct you to prepare all of your certified checks but also bring your personal checkbook just in case. Congratulations for buying/selling your home!!