New York First Home Buyers

Buyer’s Guide

To purchasing a home in new york city.

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Welcome Home

New York City is home to one of the world’s most exciting real estate markets. With the help of this guide, you’ll learn the nuances that make New York City’s real estate process so unique and gain an edge in the market.

When you’re ready to take the next step, our top-performing agents will be here to help you determine which neighborhood offers the character and amenities you desire, which type of property suits you best and how to negotiate the best deal. All the resources and influence we’ve gained as the #1 brokerage in New York City will empower your real estate buying experience.

Getting Started

Banks use credit scores to evaluate the risk of lending to individuals. If you know you’ll need to borrow money from a bank to finance your home, learn your credit score as soon as possible and work to boost it as needed. Websites like Credit Karma will provide your credit details without damaging your score.

You’ll typically be expected to put down at least 20% of the sale price upfront, plus additional closing costs. Your real estate agent will be able to provide you with a complete breakdown of these associated expenses.

This can easily be done over the phone with your bank or mortgage professional. A loan officer will ask you about your income, assets, debts and projected down payment. They will then determine the amount you’ll most likely qualify for based on the information you’ve provided.

After prequalification, you’ll want to work with a lending institution to receive a written “good-faith” estimate of the amount you’ll be able to borrow. This step requires an in- person appointment and a possible fee. You’ll be expected to submit more information, such as pay stubs, bank statements, tax returns and other financial documents. Once you receive your pre-approved loan statement, it is normally valid for 60 days.

Purchasing Journey

The purchase process for a condo or townhouse can move, as long as a loan can be secured in a timely fashion. In such instances, a sale can move from contract to closing in about 60 days. However, the co-op process is more involved and often takes longer — 60 to 90 days, or longer, is not unusual.

Co-ops & Condos

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Cooperative Buildings

Co-op buildings are more common in New York City than in other parts of the country. Approximately 75% of available New York City apartments at any given time are co-ops.

Individual tenants do not “own” their apartments as they would in the case of “real” property. Rather, co-ops are owned by an apartment corporation and individual unit owners are “shareholders,” which entitles them to a long- term proprietary lease. Co-ops are traditionally stricter when approving a buyer whose funds are not in the United States.

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Condominium Buildings

On average, 25% of available New York City apartments are in condominium buildings. When you buy a condo in New York City, you get a deed as if you were buying a house — this categorizes these units as “real” properties, unlike co-ops. Condos are the preferred choice for those with assets held outside of the United States or for buyers who are interested in greater ownership flexibility.

Co-op

Generally, more attractive

Condo

Generally, more expensive.

Co-op

The board interviews all prospective owners, and has the right to approve or reject any applicant.

Condo

No interviews are required Application is not as rigorous as the co-op board process.

Co-op

Be prepared to put down at least 20% of the purchase price, plus closing costs.

Condo

Be prepared to put down at least 10% of the purchase price, plus closing costs.

Co-op

Maintenance fees based on the number of shares the tenant owns (typically dictated by apartment size and floor level).

Condo

Common charges (services and amenities shared by condo residents) and property taxes.

Co-op

Shareholders can deduct their portion of the building’s real estate taxes and their proportionate share of the interest on the building’s mortgage.

Condo

Real estate taxes are deductible, but common charges are not.

Co-op

Must be approved by Board of Directors.

Condo

Typically permitted.

Co-op

Board will need to approve the new buyer.

Condo

Can be sold at will.

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Townhouses

Defined as a multi-story urban home, usually attached, that’s built close to the street and scaled similarly to the buildings surrounding it. Often times, they are multi-unit homes. They are sometimes renovated into a single unit or can be used as rental units for additional income. A Brownstone is a type of townhome, recognizable by the reddish-brown sandstone of its façade.

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When you purchase a townhouse, you own both the structure itself and the land. It has its own roof and may have a garage or private yard included. You’ll most likely have more freedom and flexibility with how you treat your property, particularly regarding renovations, subleases or additions. However, it’s important to research the zoning laws for these same reasons.

While you won’t pay monthly common charges or maintenance fees as you would for condos and co-ops, you are 100% responsible for all repairs and general upkeep. Only about 2% of available residential properties in New York are townhomes, which creates a competitive market. Working with a knowledgeable agent will give you an advantage over other buyers.

Real Estate Terms

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Contact Details

Anil Jintoorkar

Phone

(516) 669-5615

Email

[email protected]

Address

575 MADISON AVE., 3F NEW YORK, NY 10022 Customer Focused and Result Driven with a Boutique Approach

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