Buying a Condo Apartment in NYC – The Complete Buyer’s Guide (2019) | Hauseit New York City
Guide to buying a condo in New York City Buying a condo in New York City is a more straightforward process compared to buying a co-op apartment. uying a condo means that you are purchasing real property instead of shares of a corporation, which is the case if you are buying a co-op in New York City. While buyer closing costs are higher for condos than for co-ops, condos are a more flexible form of ownership. Condos are more valuable because they have fewer subletting restrictions, and unlike for co-ops, there is virtually no risk that a condo building will reject your application to buy an apartment. So, what are the first steps to buying a condo in New York City? The first thing you should do before you begin your apartment search is to do thorough research on everything related to buying a condo in New York City. Here are some topics which you should familiarize yourself with: Buyer Closing Costs Condos have additional closing costs compared to co-ops which include a mortgage recording tax of 2.05% – 2.8% as well as title insurance. Buyer’s Agents Have you researched the role of buyer’s agents? Have you researched the role of buyer’s agents? Working with an experienced buyer’s agent can increase your chances of a successful deal. Better yet, you can save thousands on your purchase by requesting a legal and tax-free buyer broker commission rebate. To request a rebate, head over to www.hauseit.com Financing Considerations Has a mortgage banker or broker reviewed your financials? Even if you don’t want to pull your credit yet, having a mortgage professional review your income and assets can help you accurately determine how much condo you can afford in New York City. This is especially important if your income has gone down recently or if you are self-employed. So, what happens when you find an apartment and want to make an offer? You will typically be asked to provide the following items when submitting an offer on a condo in New York City: • Offer price, percentage down and targeted closing date • Any contingencies, such as a mortgage or Hubbard contingency • Pre-approval letter, if you are financing • Attorney contact information Once you’ve agreed to a deal with the seller, your attorney will begin due diligence and start negotiating the contract with the seller’s attorney. It typically takes one to two weeks to have a signed contract from the time your offer has been accepted. What happens once you are in-contract to buy a condo in NYC? Having a signed contract means that you can begin work on your mortgage application. It usually takes two to four weeks to receive a mortgage commitment letter. Most condos in NYC also require buyers to complete a purchase application. While co-ops can reject buyers at will, the only way a condo can reject a buyer is if the building agrees to exercise its right of first refusal and purchase the apartment under the same transaction terms as your deal. A condo typically has 30 days to waive its right of first refusal and permit you to close on the apartment. For more New York City Real Estate insider tips and tricks, subscribe to our channel and visit our blog and forum at www.hauseit.com.