Austin Schuster and the Austin Schuster Group guide our clients through the entire purchase process. We work to reduce the complexity and make it as smooth as possible.
Here's how it works:
Seek pre-approval for a mortgage:
The most important consideration is how much you wish to put down. Condominium apartments require at least 10% down while Cooperatives require at least 25% down. Your mortgage broker can help you determine what is the best scenario for you.
Find your home:
The average home seeker sees 10-20 apartments before deciding on one.
Make an offer and negotiate:
Most apartments are negotiable. Make sure you inquire about any assessments, fixtures, appliances, before making an offer.
In almost all New York City real estate sales transactions the seller's attorney will draw up a contract for the buyer's attorney. Once the buyer's attorney performs his/her "due diligence"- reading the buildings minutes, financial statements, etc, the buyer will sign the contacts and forward a 10% deposit and contracts to the seller's attorney for countersigning. The contract is binding only after both parties have signed.
Apply for a mortgage:
Mortgage applications cannot be processed without an executed signed contract. If you are financing, the board requires that you include a commitment letter from the lender as part of your board package/condo application. This letter is typically the last item needed to complete the package.
Complete the Board Package
or Condominium Application:
Unlike Condominium apartments, Cooperative apartment buildings require board approval before a closing can take place. The Board of Directors for the Coop demand full financial disclosure. Most Boards
request a detailed financial statement of net worth with supporting documentation, employment verification, credit history, reference letters and tax returns, among other items. If this is something a purchaser does not feel comfortable with or is unwilling to disclose he/she should buy a Condominium. However, there are cases when buying
a coop does not require approval from the board. This
is usually when a purchaser buys from a Sponsor. Your agent can discuss this option in detail with you. When buying a Condominium apartment the potential purchaser needs to fill out a Condominium Application. Although there is additional information like a Coop package there is less scrutiny and the purchaser will not have to be interviewed by the Board.
Submit the Board Package or Condominium Application:
Once completed by the buyer's real estate agent, the agent will then forward the necessary copies to the managing agent for the building. The managing
agent will inspect the package/application to make
sure it is complete.
Meet the Coop Board:
The Coop board typically meets once a month. However, every Board is different. Almost always the meeting is held in the evening on a weeknight. Please keep in mind that although a interview is granted, this does not assure approval.
Receive Board Approval:
The managing agent will alert the seller's
broker on approval.
Once approval has been granted, the managing agent and lawyers for the buyers and sellers will coordinate a time and date for the closing.
The following guide will give you general closing costs associated with the purchase of a cooperative or condominium. Please note that these are estimates and that potential buyers should consult their real estate attorney or financial advisor for specifics.
|Buyer’s Attorney:||Consult your attorney|
|Appraisal Fee:||$300-$1,500 (depending on sales price)|
|Credit Report Fee:||$9.80 single/$14.60 joint|
|Tax Escrows:||2 to 6 months|
|Mortgage Tax:||1.80% of amount of mortgage on loans under $500,000; or 1.925% of amount of mortgage on loans of $500,000 and over|
|Fee Title Insurance:||Approx. $450 per $100,000 of sales price under 1m - + 15% on 1M or more|
|Mortgage Title Insurance:||Approx. $130 per $100,000 of mortgage amount|
|Mansion Tax:||1% of entire purchase where price is $1,000,000 or more|
|Common Charge Adjustment:||Pro-rated for the month of closing|
|Real Estate Tax Adjustment:||Pro-rated depending on when the tax is collected|
|Miscellaneous Condominium Charges:||Vary by building|
|Short Term Interst:||Equal to interest for balance of month in which you close|
|Buyer’s Attorney:||Consult your attorney|
|Appraisal Fee:|| $300-$1,500 (depending on sales price)
| Credit Report Fee:
||$9.80 single/$14.60 joint|
|Mansion Tax:||1% of entire purchase price where price is $1,000,000 or more|
|Miscellaneous Co-op Charges:||Vary by building|
|Recognition Agreement Fee:|| $200+
| Maintenance Adjustment:
||Pro-rated for the month of closing|
|Short Term Interest:||Equal to interest for balance of month in which you close|