Buyer’s Guide
So you have decided to buy a home here in New York City. The rules are different
here than in other places. For the inexperienced the differences may be overwhelming.
Adina Equities is here to help. Your Adina Equities agent will help you to
determine which type of apartment is right for you, help you to chose a neighborhood,
find the perfect apartment, educate you regarding real estate prices, and accompany
you every step of the way until you have the keys on your hand.
Steps to Purchasing an Apartment
1. Come prepared. Get you mortgage pre-approved.
You need to know what you can spend before you can spend it. Many sellers
won’t even consider your offer unless you can present the pre-approval to
prove that you are serious. Condominium apartments generally require at least
10% down. Cooperative apartments generally require at least 20% down.
Pre-approval consists of a borrower applying for a mortgage without having secured
a specific property. An actual loan commitment will be obtained later. Coming prepared
with your pre-approval will also help you to win bidding wars, make all-cash offers
with confidence, get to the co-op Board faster, close sooner. We will help make
the process as quick and simple as possible so that you can begin your search with
confidence. In most cases we can have the pre-approval in your hand within
1 - 2 business days.
2. Find your dream home. The average person sees
20-25 apartments before deciding on one. As an Adina Equities client you get
first access to our fabulous exclusives. If we don’t have the perfect
apartment for you, you can bet that we have access to it. Our contacts are
extensive and our database includes nearly every apartment for sale in Manhattan.
Your Adina Equities agent will help focus your search and show you only apartments
that mach your needs. We are thorough in our research, we are educated in
this process, we are professionally outstanding in every way, and we won’t
stop until we find the home you are looking for.
3. Negotiate. We've found you a property
you want to own. Now it’s time to negotiate. Everything is negotiable
so inquire about assessments, fixtures, window replacements, air conditioners, rugs,
floors, curtains, appliances, working fireplaces, washer dryers, etc. Your
Adina Equities agent will submit your offer, negotiate effectively on your behalf,
and communicate with you every step of the way. Negotiations can usually be
accomplished within 3 days to 2 weeks.
4. Sign a Contract. By law, an attorney
must represent you in the transaction. The seller's attorney draws up the contract
for the buyer's attorney. The buyer's attorney investigates the property’s
readiness for sale by reading minutes, checking financial statements, verifying
deeds, etc. The investigation, called “due diligence” usually
takes 3 – 7 business days. If the buyer’s attorney deems that
the property is saleable, he or she will advise the buyer to sign the contract and
returns it with a 10% deposit. The seller, next, executes the contract (makes
it complete or binding) by signing it. The contract may be contingent upon
the buyer’s ability to sell another property, obtain financing, or obtain
Board approval.
5. Apply for a mortgage. Now that the contract
is executed, it is time to apply for a mortgage. Mortgage applications cannot
be processed without an executed contract. If the mortgage is approved, the
bank issues a commitment letter to the purchaser. It takes approximately 60
days to receive a commitment letter.
6. Complete a Board Package or Condominium Application.
Although the application materials can be similar for cooperative and condominium
buildings, the actual process is quite different. The required materials typically
include: an application, a financial statement signed by a CPA, supporting documents
for your financial statement, three years of tax returns, bank statements, letters
of personal and financial reference, letters of professional reference, the contract
of sale, and the mortgage commitment letter (if financing). Taken together,
these documents are known as the Board “package.” When your package
is complete your Adina Equities agent will forward it to the condo or co-op’s
managing agent for review. If the managing agent determines that it is in
order and that your credit is acceptable, he or she will forward it to the condo
or co-op’s Board of Directors.
In the case of a cooperative, the Board will review your application and if it meets
initial approval, you will be invited for an interview. You will normally receive
the invitation to interview within 1 – 4 weeks after submitting the application.
The interview is a vital part of the application. Even the most qualified
candidates may be rejected based on the Board interview. Your Adina Equities
agent will help prepare you for the interview.
In the case of a condominium, there is generally no formal interview. Your application
will be reviewed, and if all required materials are included and in order, an approval
is typically granted. The entire process can move quickly in a condominium,
and assuming a loan can be secured in a timely fashion, one can move from contract
to closing in about 60 days.
7. Meet the Co-op Board for an Interview.
Co-op Boards typically meet once a month, and some Boards do not meet in August.
Generally, interviews are conducted on weekday evenings. The interview does
not guarantee approval. We will help prepare you for the interview.
A typical Board interview lasts 30 minutes to one hour.
8. Schedule a Closing. The managing agent
will schedule the closing, which usually takes place in the managing agent’s
office. A representative from the bank will be present to handle the transfer
and the mortgage. Other people who will attend the closing include: your Adina
Equities Agent, your real estate lawyer, the seller’s lawyer, the bank’s
lawyer, and a title closer. The closing usually takes place 1-2 weeks after
the Board grants approval.