Step 1—Choose your real estate broker.
Your broker will walk you through the following: determining your budget; pre-approval if you’ll need financing; understanding basic real estate definitions and distinctions; establishing a timeline for your purchase and the criteria for your search; identifying every goal you hope to achieve with this purchase. Brokers' relationships in the real estate community can be of infinite value in making your transaction a smooth and successful process, so take your time to find the right broker.
Step 2—Search for your new property and assemble your team.
Your broker will survey the market to identify opportunities that meet your unique objectives, compile short-listed properties in an easily digestible format for you to identify what you'd like to see, and tour each selected property with you. While you and your broker are searching for the right property, you will also want to compile all the other members of your team—a real estate attorney, a mortgage broker, a property inspector, et cetera—so you're ready to go when you find the right place. Consult your broker for a full list of necessary team members for your transaction, as well as recommendations.
Step 3—Prepare and negotiate an offer.
Once you find a property that meets your criteria, it's time to submit an offer. You and your broker will determine the terms of your offer, and then your broker will prepare the offer and deliver it to the seller. The seller may accept the offer or counteroffer, at which point you'll negotiate back-and-forth until you both agree on all terms of the deal. Your broker will walk you through the best strategy for negotiating on the particular property you choose. It's important to use all the tools at your disposal in negotiations—price, the timeline for closing, contingencies, board approvals, et cetera.
Step 4—Contract review and loan application.
With all terms agreed on, your real estate attorney will negotiate and determine the terms of the contract of sale with the seller's attorney, prepare the contract, and conduct due diligence on the building. Simultaneously, you'll finalize the details of your loan and get a commitment letter from your mortgage company. After this is done, you will be given approximately a week to review and sign the purchase agreement and hand over your deposit.
Step 5—Submit board package.
If you are buying a resale and not directly from the sponsor, then you'll need to complete a board package. Your broker will walk you through the application, guiding you in compiling all necessary materials. Condo and condop packages are generally less involved, while co-op packages are much more intensive and generally require an interview component.
After your board package is approved, you'll do a final walk-through and then close on the property. Do a victory lap. You're now the proud owner of New York real estate.
Managing Agent Fee
Credit Report Fee
Lead-Based Paint Disclosure Fee
Working Capital Contribution or Flip Tax
If purchased directly from Sponsor
NYC Real Property Transfer Tax
NYS Transfer Tax
Sponsor Attorney Fee
Resident Manager Unit Contribution
1% of purchase price when $1 million and over
$3,000 & up
$500 - $1,000 (usually refundable if no damage)
$250 - $750
$250 - $500
$50 - $100 per applicant
$0 - $50
0.5% - 2% of sale price (may be payable by seller and/or negotiable)
Varies and sometimes paid by the seller
1% of purchase price if $500,000 or less | 1.45% if over $500,000
0.4% of purchase price
$3,000 & up
Please note that the above are only estimates. Consult your attorney and/or mortgage broker to confirm closing costs for your specific transaction.