Connected Realty Group

Sales Guide


In the event that this is your first real estate purchase in New York, it is highly advisable that you read through the information listed below; this will make the journey to finding your perfect home or investment a much easier and efficient one. It is important that you understand the difference between a COOPERATIVE and a CONDOMINIUM and that you pick the type that is most suitable for you.

1. Whether it is a seller’s market or a buyer’s market, it is always highly recommended that you secure pre-approval for a mortgage unless you are purchasing the dwelling without financing.. The time frame for approval can be as quick as 48 hours. The primary benefit to getting pre-approved is that in the event your dream deal materializes, the seller will be able to see you are pre-approved. By making the seller feel comfortable with your ability to obtain financing quickly, he or she will be immediately more prone to accept your offer.

Condominium apartments require a minimum of 10% down while most cooperative apartments require a minimum of 25% down. However, these figures are estimates, and many buildings require different down payment procedures. Keep in mind that the majority of New York City buildings are cooperatives.

2. After securing pre-approval for financing, the next step is to explore what is available in the marketplace with your real estate professional and find an apartment. Today's technology enables us to streamline our search in an efficient manner geared towards fulfilling your interests. However, it is still beneficial to go out with your agent for a few personal showings so that you form a common frame of reference. This process enables your agent to sense exactly what you like and dislike, ultimately saving your time.

3. Upon finding the apartment, loft, or townhouse you want, we then begin the negotiation process. The time frame for this process varies from a day to a few weeks, depending on the availability of the parties involved and the complexity of the negotiations. In today's market, the price is not the only thing that is negotiable. It is crucial to cover all variables and aspects of the transaction, including assessments, fixtures, window replacements, air conditioners, rugs, floors, curtains, appliances, working fireplaces, washer dryers and so forth.

4. The next step is to sign a contract. The time range for this phase is between a couple of days to several weeks, depending on the complexity of the transaction. In most cases, it is extremely important that both the buyer and seller are represented by New York attorneys, experienced specifically in New York City real estate transactions. It is customary for the seller's attorney to draw up a contract of sale and forward it to the buyer's attorney so he or she can thoroughly protect the interests of the buyer, which is known as "due diligence". The attorneys then negotiate anything in the contract deemed necessary. Once the "due diligence" and negotiation process are completed, the buyer's attorney authorizes the buyer to sign the contract. The contract is then forwarded to the seller's attorney with 10% of the purchase price as a deposit. Once received, the funds are placed in an escrow account by the seller’s attorney until the contract is countersigned, which makes the contract fully executed. There may be some contingencies built into the contract. Financing or mortgage contingencies enable the buyer to withdraw from the sale in the event he or she is unable to secure financing. In all cooperatives and some higher end condominiums, board approval is a contingency.

5. The next step entails applying for a mortgage and receiving a commitment letter from the lender. This can take anywhere from several weeks up to a couple of months. The mortgage application cannot be processed without an actual executed contract. Most condominium and cooperative boards require the commitment letter as part of the board package, provided the transaction is financed.

6. At this point, your real estate agent assists the buyer in preparing the cooperative board package or a condominium application. The board package and the condominium application must be completed and submitted to the managing agent to be presented to the board before a closing can be scheduled. Typically, the board package for a cooperative is much more extensive and usually asks for full financial disclosure, including; an asset and liability statement, a net worth statement, employment history, current position and compensation, tax returns, credit history, and personal and financial reference letters. Some luxury cooperatives also inquire after educational history and affiliations with social clubs. (If you are not comfortable submitting this type of information, then a cooperative purchase will probably not be the most suitable option for you. The condominium application is typically less detailed and is less invasive.)

7. Upon completion of board packages and their submission to the buildings managing agent, the managing agent verifies that all information is in proper order and then forwards it for review by the co-op/condo board. In many cooperatives, the board will then request an interview with the prospective purchaser.

8. Once approved, all that is left is scheduling the closing date. The closing occurs within a week or two of approval. The managing agent of the building will set the date, and the attorneys will coordinate with the involved parties.

It is also extremely helpful to understand the closing costs associated with purchasing and/or selling a condominium or cooperative


All information furnished is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and is submitted subject to errors, omissions, changes of price or other conditions, prior sales, or withdrawal without notice.
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