BUYER'S GUIDE TO PURCHASING A HOME IN NEW YORK CITY - AgentFire Spark Sites
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B U YE R ’ S G UI DE TO PURCHASING A HOME IN NEW YORK CITY
Ja c o b Wo o d Licensed Associate Real Estate Broker 111 Fifth Ave New York, NY 10011 917.232.0803 Jacob.wood@elliman.com Possessing an exemplary work ethic, ideal from real estate attorneys and mortgage interpersonal skill and unyielding eye for bankers to cable guys and licensed movers, detail has enabled Jacob to amass the in order to ensure you’re taken care of from enviable track record of having closed over start to finish. 100 transactions his seven years in Manhattan real estate. Having earned a Jacob's flexible and innovative strategies reputation among both his clients and are second to none. By delving deeply into colleagues as a doggedly determined your desired home, building, neighborhood, worker and aggressive negotiator, as well as and lifestyle, Jacob is able to uncover that of a polished and friendly professional, inventory no other agent will have access Jacob prides himself on his ability to to, and put together options you wouldn't provide guidance to clients of all needs, conceive of otherwise. Jacob is available from a 1031 exchange or investment day and night to answer any questions you property to a resale and subsequent new might have about your dream home, or the home purchase. Jacob also has at the constantly evolving New York real estate ready a network of reliable professionals, market.
CONTEN T
1 GETTING STARTED
3 PURCHASING JOURNEY
5 CO-OPS & CONDOS
7 TOWNHOUSES
8 REAL ESTATE TERMS
9 CLOSING COSTS FOR
CONDO APARTMENTS
10 CLOSING COSTS FOR
CO-OP APARTMENTS
11 CLOSING COSTS FOR TOWNHOUSES
& SINGLE FAMILY PROPERTIES
12 NEW YORK STATE MANSION TAX
Do ugl a s E ll i m a n Re a l Es t at e B uy e r ’ s Gui d e
G ET T I N G
STA RT E D
Do ugl a s E ll i m a n Re a l Es t a t e B uy e r ’ s Gui d e G e tti n g S ta r te d 1
★★★★★ Highly likely to recommend 05/02/2019 – Justin DeMaris Bought a Cooperative home in 2019 in Noho, New York, NY Local knowledge: ★★★★★ Process expertise: ★★★★★ Responsiveness: ★★★★★ Negotiation skills: ★★★★★ My wife and I met Jacob in a slightly unusual way – he was the seller’s agent on the other side of the table from us at the first apartment we tried to buy. We were immediately impressed by his breadth of knowledge, both about the specific unit we were looking at, the market overall and the purchasing process. We did not end up purchasing that unit because Jacob managed to get a higher price than we were willing to pay from another buyer, but we were completely swept off our feet by his ability to remain both professional and amicable to us while at the same time representing his own client’s interests to the fullest and promised ourselves that if we had an opportunity, he was exactly the person we wanted in our corner in the future. He was leagues above the other agents we had worked with so far. He became our agent in our attempt to continue our search and we grew to rely on his network of fellow professionals across bankers, lawyers, inspectors, movers, contractors, cleaners, painters, and every other nook and cranny of the industry that we needed. We very quickly found our new favorite property and Jacob guided us through the process of negotiation, board package prep, coop approval and the closing. I cannot recommend him enough and we are incredibly happy with our new home. Seriously, Jacob is the real deal. I wish I could give ten stars on every aspect.
Tips for Buying in New York City
The constantly evolving New York City real estate market presents numerous challenges for buyers.
With these challenges in mind, I’d like to share with you some key information in order to help you
become better prepared in your search for a new home:
Market Overview
Here are some important facts about the market to help you understand how the New York City
residential real estate business is not like most other places:
1. There are about 1,283,000 total owner-occupied housing units in the five boroughs, with
around 18,000 (1.4%) for sale at any given time.
2. Of the roughly 1,283,000 owner occupied housing units across the five boroughs of New
York City, around 319,000 are single-family townhouses, 620,000 co-ops, and 320,580
condos.
3. Total New York City coop, condo, and single-family townhouse sales in 2018 were
30,853, 12% less than 2015 and 22% greater than 2009.
4. There is no MLS in Manhattan. All agents who are members of the Real Estate Board of
New York (92% of NYC’s 30,000 agents) have access to all other REBNY agent’s listings.
There is also no comprehensive, consumer-facing listings database for the NYC market.
For this reason, it’s best to develop a trusted, working relationship with a buyer’s agent.
5. There is no binder system in NYC either. An accepted offer is simply a handshake until a
contract is fully executed and returned to the buyer’s attorney, along with the contract
deposit. Hence a deal can easily be ‘gazumped’*.
Pre-Approved Mortgage
A pre-approval on a mortgage is expected along with any offer. Any mortgage banker will
produce a credit check and verify your income, assets, retirement funds and liabilities using your
tax returns, bank statements, pay stubs as verification in order to determine your borrowing
potential. A pre-approval letter may be issued that specifies your borrowing power and price
range. Many listings agents request pre-approval letters before granting viewings. For this reason,
it’s best to get mortgage pre-approval before beginning your search in earnest.
Mortgage Contingency When sellers have a choice of buyers, they are likely to choose the one who offers the most straightforward contract. A contract that is not contingent on the buyer obtaining financing is particularly attractive. If you plan on taking out a mortgage for your purchase and offer a no- financing contingency, it is wise to not only obtain a pre-approval for financing, but forward the building’s financial documents to the bank as well for approval. Buyers also have the option of waiving their appraisal contingency, protecting themselves if the building is ultimately deemed not financeable by lenders, while allowing the seller to protect themselves from an inaccurate appraisal. Financial Statement When your candidacy is being evaluated, cooperative and condominium boards will scrutinize both your offer and your financial condition. Therefore, during the bidding process you will be asked to submit your financial statement to the seller’s broker. Your broker will advise you to prepare this in advance and should give you a format to follow that includes your assets, liabilities, and sources of income. Other Documents to Prepare Co-op and condo boards require that the buyer have both business and personal reference letters. After having gone into contract, we’ll talk more about how to specifically tailor these to the building in question. You’ll also draft a cover letter to the board of directors, giving some introductory, background information on yourself and / or your family. Sellers may ask for verification of income and assets along with any offer as well. Lastly, establish a relationship with a real estate attorney and have their contact information ready when you submit your bid. Multiple Offers A bidding war can ensue with multiple offers when two or more buyers compete for the same property. This process sometimes drives the price beyond the seller’s original asking price before one buyer emerges victorious. I’ll help you devise strategies for handling these situations when they occur. *Gazumping is a term used in the UK and Australia when a seller (especially of property) accepts a verbal offer of the asking price from one potential buyer, but then accepts a higher offer from someone else. It can also refer to the seller raising the asking price at the last minute, after previously verbally agreeing to a lower one. In either case, the original buyer has to either offer a higher price or lose the purchase. There is a common misconception that you are 'gazumped' if you agree to buy a property for less than the asking price and then another buyer agrees to pay more than your lower offer.
PURCHASING
J O UR N EY
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.
Do ugl a s E ll i m a n Re a l Es t a t e B uy e r ’ s Gui d e Pu r c h a s i n g J o u r n e y 3
★★★★★ Highly likely to recommend 10/24/2018 – Belde190 Bought a Cooperative home in 2018 in West Village, New York, NY Local knowledge: ★★★★★ Process expertise: ★★★★★ Responsiveness: ★★★★★ Negotiation skills: ★★★★★ I had a fantastic experience purchasing my first home with Jacob by my side. Given I had only been a resident in the US for two years when I embarked on purchasing a home, it was critical I had a broker with local knowledge, expertise, and patience. Jacob’s combination of first rate local knowledge, market expertise and composed persona made for an excellent home buying experience. I would highly recommend him. ★★★★★ Highly likely to recommend 08/06/2018 – jwwebman Bought a Cooperative home in 2018 in Greenwich Village, New York, NY Local knowledge: ★★★★★ Process expertise: ★★★★★ Responsiveness: ★★★★★ Negotiation skills: ★★★★★ Jacob assisted me with a home purchase in the West Village/Greenwich Village in the winter/spring of 2018. During my search, most brokers/agents sent me the same inventory that I could find myself on the internet; however, Jacob was able to source this apartment for me based on his local knowledge. Once we found the apartment, Jacob was an invaluable resource every step of the way which was crucial for me as a first time buyer. Could not recommend more highly!
KEY MOMENTS IN YOUR JOURNEY
1 PRE-APPROVAL 6 LOAN APPLICATION: If financing, you should move
forward with your loan application and schedule an
2 PROPERTY SEARCH appraisal with your financial institution.
3 OFFER NEGOTIATION: Once you’re ready to buy, 7 COMPLETE APPLICATION: You will receive these
your agent will communicate your offer to either the requirements and materials from your agent, which
seller’s agent or to the seller directly. The seller may typically include: an application, a financial statement
counter your offer, which opens a negotiation process signed by the purchaser or a CPA, all requisite support
that will eventually lead to a meeting where price, terms for your financial statement, two to three years of
and closing date will be agreed upon. tax returns, bank statements, letters of personal and
financial reference, letters of professional reference,
4 CONTRACT REVIEW: You’ll want to be represented the contract of sale and bank documents (if financing)
by an attorney that is familiar with New York City real indicating that your loan is in place. Your Douglas
estate during this stage. They should examine the Elliman agent will assist you in this process. In the case
contract of sale and by-laws and financial condition of of a co-op, if your application meets initial approval,
the building to conclude it’s satisfactory before allowing you will be invited to be interviewed by the board or an
you to sign the contract. interviewing committee.
5 SIGN CONTRACT: At this time, you will usually 8 BOARD APPROVAL
be required to present a deposit. The contract, plus
the deposit, will then be forwarded to the seller for 9 BANK SUPPLIES CLEARANCE TO CLOSE
a signature. This money will be held in the seller’s
attorney’s escrow account until closing. It is important 10 CLOSING SCHEDULED
to note that until all parties have signed the contract
and it has been delivered, the seller can still entertain 11 FINAL WALK-THROUGH AND CLOSING
and accept other offers.
Do ugl a s E ll i m a n Re a l Es t a t e B uy e r ’ s Gui d e Pu r c h a s i n g J o u r n e y 4Making an Offer When making a formal offer to purchase, there are several additional terms other than price the seller may be willing to consider. Below is a list of these terms, and how to leverage each in order to make our offer more attractive to sellers: 1. Offering price and financing contingency: Nearly half of all NYC real estate transactions are ‘all cash’. If paying cash is an option for you, although you wish to take advantage of favorable financing terms, you may close with cash and take out a loan against your home equity after closing, or waive your financing contingency and commit to closing in cash if, for whatever reason, you’re not able to secure financing. If you cannot commit to paying cash at closing, waiving your financing contingency may still be an option if your bank has loaned in the building recently and your pre-approval is completely current. If purchasing in a building where your bank has not loaned recently, you may elect to waive your appraisal contingency only, protecting yourself if you can’t secure financing, and allowing the seller to protect themselves in the event that the property appraises inaccurately. 2. REBNY financial statement: All offers in NYC must be submitted with a completed and signed REBNY financial statement. The statement need not be accurate to the nearest dollar or corroborated with bank statements, simply an accurate picture of your income, assets, and liabilities. The more forthcoming we are on the REBNY financial statement, the more attractive our offer will be to sellers, especially in a coop. 3. Mortgage pre-approval: All offers in NYC which include financing must be submitted with a current mortgage-preapproval, not a pre-qualification. Mortgage pre-approvals from a large and reputable financial institution with as few contingencies as possible will be most attractive to sellers, especially in a coop. Because different income and tax scenarios can greatly impact mortgage pre-approval, you should get pre-approved by your lender of choice before beginning your search in earnest. 4. Closing schedule: A flexible closing schedule that can accommodate a seller who needs to close quickly, or one who needs to wait a few months to close, can greatly improve the attractiveness of our offer. 5. Links to professional resumes and letters of introduction: The informal employment confirmation that comes with a link to your professional resume can make a seller more comfortable with your offer. When competing against other buyers in a multiple-bid scenario, a letter of introduction highlighting your favorite aspects of the apartment, building, and neighborhood can put you over the top. 6. Attorney contact information: Providing the seller your attorney’s contact information with your offer sends the message that you are motivated, educated on the process, and organized. It also allows contract negotiation and due diligence to begin immediately upon acceptance of your offer.
Off Market Purchase Opportunities A unique and valuable resource I provide to my buyers is access to ‘off-market’ properties, those not found on any brokerage’s website, or any aggregate site such as StreetEasy. Below is an explanation of different types of ‘off-market’ listings, and how I arrange access for us: Off-Market Sellers: Once we sit down and get a thorough sense of what you’re looking for, we can zero in on specific floor plans in specific buildings that are a good fit for us. I will then draft letters to the specific owners of these homes, letting them know I have a qualified and motivated buyer interested in making them an offer. I actually do about 15% of my buyer- transactions in homes generated by these letters! Non-REBNY listing agents: The Real Estate Board of New York is an organization to which over 90% of the 30,000 practicing real estate agents in New York City belong. It mandates that all members of REBNY must agree to co-broke their listings with one another, and that buyer-broker commissions must be fully disclosed and payable by the seller. If searching further out in Brooklyn or Queens, we will likely run into one of the small number of agents who are not members of REBNY. These agents are under no obligation to co-broke their listings with us, and under no obligation to share with me any details on the commission they’ve negotiated with their seller. These agents tend to work for smaller, less sophisticated, less scrupulous brokerages, and to have a buyer-agent protecting your interests when negotiating with them is paramount. Their sellers tend to have bargain-shopped when choosing a listing agent, and their homes tend to be marketed poorly, advertised at a price below (in some cases well below) market value. These listings can represent excellent opportunity for a buyer. For-sale-by-owner listings: FSBO sellers have elected to sell their homes themselves rather than hire a professional listing agent to act in their best interests while marketing and negotiating the sale of their property. FSBO sellers tend to make decisions based purely on cost savings, with little knowledge of or regard for the sales process. They are not bound by any industry or State law. For this reason, it is paramount to have a buyer-agent representing your interests when negotiating with a FSBO seller and attempting to close on a FSBO-represented property. FSBO listings sell for, on average, 16% less than comparable, professionally marketed homes, and therefore represent an excellent opportunity to purchase a home below (sometimes well below) market value. Expired listings: Expired listings were marketed by another listing agent, or marketed FSBO, and did not sell. They are now off the market, however the seller would most likely still consider offers. Sellers of expired listings may not necessarily be in a hurry or highly motivated, and therefore may not offer cost savings relative to currently listed properties, however, they present an excellent opportunity to expand our choices if we’ve exhausted all on-market inventory.
CO - O P S &
CO N D O S
COOPERATIVE BUILDINGS CONDOMINIUM BUILDINGS
Co-op buildings are more common in New York City than in On average, 25% of available New York City apartments
other parts of the country. Approximately 75% of available are in condominium buildings. When you buy a condo in
New York City apartments at any given time are co-ops. New York City, you get a deed as if you were buying a house
— this categorizes these units as “real” properties, unlike
Individual tenants do not “own” their apartments as they co-ops. Condos are the preferred choice for those with
would in the case of “real” property. Rather, co-ops are assets held outside of the United States or for buyers
owned by an apartment corporation and individual unit who are interested in greater ownership flexibility.
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.
Do ugl a s E ll i m a n Re a l Es t a t e B uy e r ’ s Gui d e C o - o ps & C o n d o s 5★★★★★ Highly likely to recommend 10/24/2018 – davidsahin77 Bought and sold a Cooperative home in 2018 in Upper East Side, New York, NY Local knowledge: ★★★★★ Process expertise: ★★★★★ Responsiveness: ★★★★★ Negotiation skills: ★★★★★ Jacob Wood is an exceptional real estate broker. After working with another agent who was unable to find me a home I liked at a price that worked for me Jacob was recommended to me by my real estate attorney as an agent who would listen, and who had experience working with small business owners like myself. Jacob immediately found multiple homes that could work for me, and negotiated multiple offers at once to get me the best deal. I ended up paying well below the asking price for a sunny studio in a luxury building, within walking distance to my work… the exact type of home I said I wanted when I began my search. I couldn’t recommend Jacob highly enough as the ideal broker to help buy a new home Yuksel Sahin Celebrity Hairstylist Manhattan New York.
CO-OP CONDO
COST Generally, more attractive. Generally, more expensive.
APPROVAL The board interviews all prospective
owners, and has the right to approve or
No interviews are required
Application is not as rigorous
PROCESS reject any applicant. as the co-op board process.
Be prepared to put down at
Be prepared to put down at least 20% of
FINANCING the purchase price, plus closing costs.
least 10% of the purchase
price, plus closing costs.
MONTHLY Maintenance fees based on the number of
shares the tenant owns (typically dictated
Common charges (services
and amenities shared by condo
FEES by apartment size and floor level). residents) and property taxes.
Shareholders can deduct their portion of
TAX the building’s real estate taxes and their
Real estate taxes are
deductible, but common
BENEFITS proportionate share of the interest on the
building’s mortgage.
charges are not.
Must be approved by
SUBLETTING Board of Directors.
Typically permitted.
Board will need to approve
SELLING the new buyer.
Can be sold at will.
Do ugl a s E ll i m a n Re a l Es t a t e B uy e r ’ s Gui d e C o - o ps & C o n d o s 6Typical Co-op Requirements
1. 25 – 35% debt to income ratio: For example, if your housing payments and any other fixed
monthly expenses, like car loans or student loans, are $10k per month, a 25% DTI would put
your adjusted gross income at $480k per year.
2. 12 – 24 months of mortgage and maintenance payments in post-closing liquidity: For
example, if your total monthly carrying costs for your new home are $10k per month, 24
months of post-closing liquidity would mean $240k in cash, stocks, bonds, and/or mutual
funds left over post-closing.
If the above requirements don’t work for your personal circumstances, you can usually
receive a gift from family to help make the reserve requirements. Or, you can co-
purchase with someone so that combined totals meet the above requirements. Coops
routinely accept applicants who fall short of one requirement if their overall financial
position is secure.
3. A FICO score above 700.
4. Some co-ops do not allow pieds-a-terre (owners using the property as a vacation home) or
co-purchase with parents. Some co-ops that allow co-purchases will want the person
actually living in the apartment to be able to afford the monthly carrying costs on their
own.
5. Many Park Ave, Madison Ave, Fifth Ave, Sutton Pl, and Beekman Pl co-ops require the
purchaser to have at least half the purchase price left over in liquid assets post-closing.
Many of those buildings prefer all-cash purchasers.
6. Most coops will turn down non-US citizens unless you have significant liquid assets in the US,
have a social security number, and pay taxes here, and/ or have a long work visa. If you’re
a non US citizen who doesn’t fit this profile, you’ll want to purchase in a condo.
* Some buyers are hesitant to purchase in coops, due to high-profile disputes among eccentric
board members and shareholders in tony East Side buildings throughout the 80s and 90s. Board
members are themselves shareholders, who don’t wish to damage their own resale value with a
reputation for running an unreasonable board. Only 6% of coop board applications result in
board turndowns, and a disproportionate number of turndowns occur is situations where the
seller was a FSBO or the buyer didn’t use their own agent. If you’re not planning to rent out your
property immediately upon purchase, don’t have credit / background report issues, and qualify
financially, you’ll want to seriously consider purchasing in a coop, as they typically sell for 25%
less than comparable condos, and make up nearly two-thirds of the Manhattan housing stock.TO W N H O US E S
TOWNHOUSE
Defined as a multi-story urban home, usually attached, property, particularly regarding renovations, subleases or
that’s built close to the street and scaled similarly to the additions. However, it’s important to research the zoning
buildings surrounding it. Often times, they are multi-unit laws for these same reasons.
homes. They are sometimes renovated into a single unit
While you won’t pay monthly common charges or
or can be used as rental units for additional income. A
maintenance fees as you would for condos and co-ops, you
Brownstone is a type of townhome, recognizable by the
are 100% responsible for all repairs and general upkeep.
reddish-brown sandstone of its façade.
Only about 2% of available residential properties in New
When you purchase a townhouse, you own both the York are townhomes, which creates a competitive market.
structure itself and the land. It has its own roof and may Working with a knowledgeable agent will give you an
have a garage or private yard included. You’ll most likely advantage over other buyers.
have more freedom and flexibility with how you treat your
Do ugl a s E ll i m a n Re a l Es t a t e B uy e r ’ s Gui d e To w n h o u s e s 7★★★★★ Highly likely to recommend 03/08/2017 - MrsNelthorpe Bought a Miscellaneous home in 2017 in Sutton Place, New York, NY. Local knowledge: ★★★★★ Process expertise: ★★★★★ Responsiveness: ★★★★★ Negotiation skills: ★★★★★ This is my second time purchasing an apt with Jacob in Manhattan and he has consistently been a great source of information and a joy to work with throughout the years. Our purchase would not have been possible without his help throughout every aspect of the process from our initial search to our offering to our financing to our closing. I recommend him without hesitation.
R EAL
E STAT E
T ERM S
APPRAISAL Process of determining a property’s market value.
CLOSING COSTS Expenses over and above the price of the property, paid at the closing.
COMMON CHARGES Monthly charges paid by condo owners that cover the cost of shared
building amenities.
CONTRACT OF SALE A legal agreement between a buyer and seller that outlines the terms
of purchase or transfer for a property.
CO-OP BOARD A group of residents elected to represent all shareholders within
a co-op building. The board determines the rules of the building,
addresses building issues and reviews new buyer applications.
FINAL WALK-THROUGH A property inspection that takes place a few days before closing so
that the buyer can ensure the space’s condition is true to what is
specified in the contract.
IN CONTRACT An offer has been made and accepted on a property. The buyer has
paid a deposit and both seller and buyer have signed the offer. The
listing is no longer available on the market unless the deal falls through.
MAINTENANCE FEE Monthly charges paid by co-op owners to cover operating expenses
of the building, including taxes, insurance, etc.
MORTGAGE Loan that a bank or lender gives you to buy a house. A mortgage
payment is made up of principal, interest, taxes and insurance.
PRE-APPROVED Written statement from your bank or lender confirming that you are
approved for a specific loan amount.
PRE-QUALIFIED An estimate of the loan amount you will likely be pre-approved for.
Do ugl a s E ll i m a n Re a l Es t a t e B uy e r ’ s Gui d e Re a l E s t a t e Te r m s 8Additional Professional Recommendations
Mortgage Bankers: If your bank is advertising favorable rates, or if it is personally advantageous
for you to keep your loan with a bank where you already do business, it is important for your
banker to be experienced with the Manhattan real estate market. Regardless of your preferred
financial institution, I likely have a relationship with at least one of their bankers. It’s important to
use a banker who does the bulk of their business in local coop and condo transactions. Simply
asking for a mortgage banker from your financial institution without taking a personal reference
may result in being given a banker in upstate New York who isn’t familiar with the New York City
purchase process, and may not even know what a coop is! The below are excellent:
1. Peter J Malman, Chase
(914) 774-6272, peter.j.malman@chase.com
2. Zack Tolmie, Citibank
(212) 559-2666, zack.tolmie@citi.com
3. Ryan Pratt, Wells Fargo
(347) 866-9983, Ryan.Pratt@wellsfargo.com
4. Julie Teitel, Citizens Bank
(917) 648-1388, Julie.Teitel@citizensbank.com
5. Glenda Winter-Irving, Bank of America
(917) 941-0516, Glenda.winter-irving@bankofamerica.com
Attorneys: The bulk of New York City real estate transactions are conducted by a relatively
small circle of real estate attorneys. To have one of these attorneys conducting your
transactions is paramount. They charge a rate of roughly $3000 and are worth every penny.
Attorneys are the last place to bargain shop when pricing a real estate transaction. To be
represented by an attorney of low quality, or by an attorney who does not do the bulk of
their work in New York City real estate transactions, can easily derail an entire transaction
and cost you your opportunity to purchase a home. The below attorneys are among the
best, and make my clients their first priority due to the amount of business they receive from
me.
1. Daniel M. Churgin, Sutton Sachs Meyer PLLC
(908) 279-5555, daniel@ssm.law
2. Alan J. Lustrin, Lustrin Tetelman Adler, LLP
(516) 729-8538, alustrin@ltllp.com
3. Lina M. Viviano, Romer Debbas LLP
(646) 327-3995, lviviano@romerdebbas.comGeneral Contractor & Architect: If you’re purchasing with plans to renovate, choosing a
general contractor and/or architect who is familiar with the process of renovating in New
York City is of utmost importance. Renovating in a vertical housing structure is a categorically
more complicated and bureaucratic process than doing so in a single family home. Low
quality work can be much more expensive than any money saved when bargain shopping.
1. Rob Stevenson, KBRNY Inc.
(646) 229-6866, rob@kbremodel.com
2. Mark Bearak, AIA
(212) 321-0101, mark@dtlsarc.com
Home inspectors: When buying a townhouse, or a coop / condo in a building with fewer than
ten units, it may be advisable to get a home inspection. Home inspections are not typically
done in coop or condo purchases in buildings greater than ten units, since any latent defect in
the apartment is typically the responsibility of the seller, and any defect beyond the walls of the
apartment is typically the responsibility of the building.
1. Rick Weisfeld, Old House Inspection Company Inc.
917.731.0556, rweisfeld@verizon.net
Interior Designers: Furnishing a home when moving to NYC for the first time, or when upgrading
to a larger space, can be overwhelming! Spruce Design NYC has flexible packages, from
making the most out of what you currently own, to freshening up your furnishings with new
pieces, to starting from scratch.
1. Katie, Spruce Design NYC
513.827.5140, spruceupwithkatie@gmail.comCLOSING COSTS
TYPICAL ESTIMATED CLOSING COSTS:
CONDOMINIUM APARTMENTS
FOR THE PURCHASER
Buyer’s Attorney Consult your attorney
Bank Fees $750–$1,000
Application Fee $350–$650
Processing Fee $330–$500
Appraisal Fee $500–$2,000
Credit Report Fee $45–100+
Bank Attorney $650–$1,000
Tax Escrow 2–6 months
Recording Fees Appr. $1,200-$1,700
Nassau Deed Fee - $200 verification fee + $355 per block
Verification Fee - $355 per instrument, per block
Suffolk Deed Fee - $200 per lot per document
Verification Fee - $200 per instrument, per lot
Mortgage Fee - $300 per mortgage or mortgage type document
Recording Fees - NYC &
Appr. $250–$750
Westchester
Fee Title Insurance Variable by transaction
Mortgage Title Insurance Variable by transaction
Municipal Searches $350–500
Flip Tax Varies building to building, consult your agent
MORTGAGE TAX ADDITIONAL EXPENSES
PROPERTY TYPE MORTGAGE TAX MORTGAGE TAX MORTGAGE Maintenance Adjustment Pro-rates for the month closing
New York City Nassau, Suffolk, TAX Equal interest for the balance
Dutchess and Yonkers Short-term interest
Orange Counties of month in which you close
2.05% (0.25% paid by
Residential Condo Unit
lender; 1.8% by
up to $499,999.99
mortgagor)1
2.175% (0.25% paid by
Residential Condo Unit
lender; 1.925% by
$500,000 and up
mortgagor)1 1.05%1 1.8%1
Commercial Condo Unit
2.05%2
up to $499,999.99
Commercial Condo Unit
2.8%
$500,000.00 and up
*Mansion Tax is paid by purchaser on transactions that are 100% residential and the purchase price is $1M or above.
1
Minus $30 for 1-2 family
2
Four family residence requires mrt to be calculated at the commercial rate
This closing-cost guide is designed to give you the general costs associated with the purchase or sale of a condominium property. Please note that these are estimates and that potential buyers and sellers should
consult their real estate attorney or financial advisor for specifics. Kindly note, we do not represent that these art the entirety of potential costs, but are only to be used as a guide. All transfer and filing fees are
subject to change by government agencies in each location.
Do ugl a s E ll i m a n Re a l Es t a t e B uy e r ’ s Gui d e Cl o s i n g C o s ts : C o n d o s 9CLOSING
COSTS
TYPICAL ESTIMATED
CLOSING COSTS:
CO-OPERATIVE APARTMENTS
FOR THE PURCHASER
Buyer’s Attorney Consult your attorney
Bank Fees $550–$1,000
Application Fee $350–$650
Processing Fee $330–$500
Appraisal Fee $500–$2,000
Credit Report Fee $45–100+
Bank Attorney $650–$750
Lien Search $350–$450
UCC-1 Filing Fee $20 - $40 in all counties except for Nassau
UCC-1 Filing Fee (Nassau) $340 ($40 to file + $300 per block)
*Mansion Tax is paid by purchaser on transactions that are 100% residential and the purchase price is $1M or above.
ADDITIONAL EXPENSES
Miscellaneous Co-op Charges Varies by building
Recognition Agreement Fee Approx $250
Flip Tax Please check with building
Maintenance Adjustment Pro-rates for the month closing
Equal interest for the balance
Short-term Interest
of month in which you close
This closing-cost guide is designed to give you the general costs associated with the purchase or sale of a condominium property. Please note that these are estimates and that potential buyers and sellers should
consult their real estate attorney or financial advisor for specifics. Kindly note, we do not represent that these art the entirety of potential costs, but are only to be used as a guide. All transfer and filing fees are
subject to change by government agencies in each location.
Do ugl a s E ll i m a n Re a l Es t a t e B uy e r ’ s Gui d e Clo s i n g C o s ts : C o - o ps 10CLOSING COSTS
TYPICAL ESTIMATED CLOSING COSTS:
TOWNHOUSE & SINGLE-FAMILY HOMES
FOR THE PURCHASER
Buyer’s Attorney Consult your attorney
Bank Fees $750+
Application Fee $350+
Processing Fee $330+
Appraisal Fee $500–$2,000
Credit Report Fee $45–100+
Bank Attorney $750–$1,000
Tax Escrow 2–6 months
Mortgage Recording Fees Appr. $1,200-$1,700
Nassau Deed Fee - $200 verification fee + $355 per block
Verification Fee - $355 per instrument, per block
Suffolk Deed Fee - $200 per lot per document
Verification Fee - $200 per instrument, per lot
Mortgage Fee - $300 per mortgage or mortgage type document
Recording Fees - NYC and Westchester $250–$750
Fee Title Insurance Variable by transaction
Mortgage Title Insurance Variable by transaction
MORTGAGE TAX
PROPERTY TYPE MORTGAGE TAX MORTGAGE TAX MORTGAGE
New York City Nassau, Suffolk, TAX
Dutchess and Yonkers
Orange Counties
Single Family Residence 2.05% (0.25% paid by
$499,999.99 and below lender; 1.8% by mortgagor)1 2
Single Family Residence at 2.175% (0.25% paid by
$500,000 and up lender; 1.925% by mortgagor)1 2
1.05%1 1.8%1
Commercial Properties and Vacant Land
2.05% 2
$500,000.00 and under
Commercial Properties and Vacant Land
2.80%
$500,000.01 and up
*Mansion Tax is paid by purchaser on transactions that are 100% residential and the purchase price is $1M or above.
1
Minus $30 for 1-2 family
2
Four family residence requires mrt to be calculated at the commercial rate
This closing-cost guide is designed to give you the general costs associated with the purchase or sale of a condominium property. Please note that these are estimates and that potential buyers and sellers should
consult their real estate attorney or financial advisor for specifics. Kindly note, we do not represent that these art the entirety of potential costs, but are only to be used as a guide. All transfer and filing fees are
subject to change by government agencies in each location.
Do ugl a s E ll i m a n Re a l Es t a t e B uy e r ’ s Gui d e Closing Costs: Townhouse & S i n gl e Fa m i l y H o m e s 11NEW YORK STATE MANSION TAX Mansion Tax (1% of purchase price) is paid by the purchaser on transactions that are 100% residential and the purchase price is $1M or more. In the five boroughs of New York City, the rate increases based on the sales price as follows: PROPERTY PRICE MANSION TAX RATE $1,000,000 - $1,999,999 1.00% $2,000,000 - $2,999,999 1.25% $3,000,000 - $4,999,999 1.50% $5,000,000 - $9,999,999 2.25% $10,000,000 - $14,999,999 3.25% $15,000,000 - $19,999,999 3.50% $20,000,000 - $24,999,999 3.75% $25,000,000 or more 3.90% Do ugl a s E ll i m a n Re a l Es t a t e B uy e r ’ s Gui d e New York S ta te M a n s i o n Ta x 12
N ew York State
D E P A R TME N T O F ST AT E
Division of Licensing S ervices
P. O . Box 22001 C ustomer S ervice: (518) 474-4429
Albany, N Y 12201-2001 www.dos.state.ny.us
New York State Disclosure Form for Buyer and Seller
THIS IS NOT A CONTRACT on terms acceptable to the buyer. A buyer’s agent has,
without limitation, the following fiduciary duties to the
N ew York State law requires re al estate license es who
are acting as agents of buyers or sellers of property to buyer: reasonable care, undivided loyalty, confidentiality,
advise the potential buyers or sellers with whom they full disclosure, obedience and duty to account. A buyer’s
work of the nature of their agency relationship and the agent does not represent the interest of the seller. The ob-
rights and obligations it cre ates. This disclosure will help ligations of a buyer’s agent are also subject to any specif-
you to make informed choices about your relationship ic provisions set forth in an agreement between the agent
with the re al estate broker and its sales agents. and the buyer. In dealings with the seller, a buyer’s agent
Throughout the transaction you may receive more than should (a) exercise reasonable skill and care in perfor-
one disclosure form. The law may require e ach agent mance of the agent’s duties; (b) deal honestly, fairly and
assisting in the transaction to present you with this dis- in good faith; and (c) disclose all facts known to the agent
closure form. A re al estate agent is a person qualified to materially affecting the buyer’s ability and/or willingness
advise about re al estate. to perform a contract to acquire seller’s property that are
If you ne ed legal, tax or other advice, consult with a not inconsistent with the agent’s fiduciary duties to the
professional in that field. buyer.
Disclosure Regarding Real Estate Broker’s Agents
A broker’s agent is an agent that cooperates or is engaged
Agency Relationships by a listing agent or a buyer’s agent (but does not work
Seller’s Agent for the same firm as the listing agent or buyer’s agent) to
A seller’s agent is an agent who is engaged by a seller to assist the listing agent or buyer’s agent in locating a
represent the seller’s interests. The seller’s agent does this property to sell or buy, respectively, for the listing agent’s
by securing a buyer for the seller’s home at a price and on seller or the buyer agent’s buyer. The broker’s agent does
terms acceptable to the seller. A seller’s agent has, with- not have a direct relationship with the buyer or seller and
out limitation, the following fiduciary duties to the seller: the buyer or seller can not provide instructions or direc-
reasonable care, undivided loyalty, confidentiality, full tion directly to the broker’s agent. The buyer and the sel-
disclosure, obedience and duty to account. A seller’s ler therefore do not have vicarious liability for the acts of
agent does not represent the interests of the buyer. The the broker’s agent. The listing agent or buyer’s agent do
obligations of a seller’s agent are also subject to any spe- provide direction and instruction to the broker’s agent
cific provisions set forth in an agreement between the and therefore the listing agent or buyer’s agent will have
agent and the seller. In dealings with the buyer, a seller’s liability for the acts of the broker’s agent.
agent should (a) exercise reasonable skill and care in per-
formance of the agent’s duties; (b) deal honestly, fairly Dual Agent
and in good faith; and (c) disclose all facts known to the A real estate broker may represent both the buyer and sel-
agent materially affecting the value or desirability of ler if both the buyer and seller give their informed con-
property, except as otherwise provided by law. sent in writing. In such a dual agency situation, the agent
will not be able to provide the full range of fiduciary du-
Buyer’s Agent ties to the buyer and seller. The obligations of an agent
A buyer’s agent is an agent who is engaged by a buyer to are also subject to any specific provisions set forth in an
represent the buyer’s interests. The buyer’s agent does agreement between the agent, and the buyer and seller.
this by negotiating the purchase of a home at a price and An agent acting as a dual agent must explain carefully to
D O S-1736-a (R ev. 11/10)both the buyer and seller that the agent is acting for the of the real estate broker. With the informed consent of the
other party as well. The agent should also explain the buyer and the seller in writing, the designated sales agent
possible effects of dual representation, including that by for the buyer will function as the buyer’s agent represent-
consenting to the dual agency relationship the buyer and ing the interests of and advocating on behalf of the buyer
seller are giving up their right to undivided loyalty. A and the designated sales agent for the seller will function
buyer or seller should carefully consider the possible con- as the seller’s agent representing the interests of and ad-
sequences of a dual agency relationship before agreeing vocating on behalf of the seller in the negotiations be-
to such representation. A seller or buyer may provide ad- tween the buyer and seller. A designated sales agent can-
vance informed consent to dual agency by indicating the not provide the full range of fiduciary duties to the buyer
same on this form. or seller. The designated sales agent must explain that
like the dual agent under whose supervision they func-
Dual Agent with Designated Sales Agents tion, they cannot provide undivided loyalty. A buyer or
If the buyer and seller provide their informed consent in seller should carefully consider the possible conse-
writing, the principals and the real estate broker who quences of a dual agency relationship with designated
represents both parties as a dual agent may designate a sales agents before agreeing to such representation. A sel-
sales agent to represent the buyer and another sales agent ler or buyer may provide advance informed consent to
to represent the seller to negotiate the purchase and sale dual agency with designated sales agents by indicating
of real estate. A sales agent works under the supervision the same on this form.
This form was provided to m e by Jacob Wood (print nam e of license e) of Douglas Elliman Real Estate
(print nam e of company, firm or brokerage), a licensed re al estate broker acting in the interest of the:
( ) S eller as a (check relationship below) ( X ) Buyer as a (check relationship below)
( ) S eller’s agent ( X ) Buyer’s agent
( ) Broker’s agent ( ) Broker’s agent
( ) Dual agent
( ) Dual agent with designated sales agent
F or advance inform ed consent to either dual agency or dual agency with designated sales agents complete s ection below:
( X ) Advance inform ed consent dual agency
( X ) Advance inform ed consent to dual agency with designated sales agents
If dual agent with designated sales agents is indicated above: -- is appointed to
represent the buyer; and -- is appointed to represent the seller in this transaction.
(I) (W e) acknowledge receipt of a copy of this disclosure
form: signature of { X } Buyer(s) and/or { } S eller(s):
print:
sign:
D ate: D ate:
D O S-1736-a (R ev. 11/10)RECENT PURCHASES
570 Broome St 12A 438 East 12th St 4U 241 West 108th St 6A 211 West 10th St 2A 245 West 104th St 2A
Sale Price — $1,675,000 Sale Price — $1,690,284 Sale Price — $1,685,000 Sale Price — $999,000 Sale Price — $1,100,000
Soho 1 bed / 1 bath East Village 1 bed / 1 bath Manhattan Valley 3 bed / 2 bath West Village 1 bed / 1 bath UWS 1 bed / 1 bath
189 Schermerhorn St 100 West 12th St 2A 24-16 Queens Plz 425 East 51st St 5E 304 West 75th St 4H
20C South
Sale Price — $850,000 Sale Price — $990,000 Sale Price — $782,071 Sale Price — $715,000 Sale Price — $599,000
Downtown Brooklyn 1 bed / 1 Greenwich Village 1 bed / 1 bath Long Island City 1 bed / 1 bath Turtle Bay 1 bed / 1 bath UWS 1 bed / 1 bath
bath
EQUAL HOUSING OPPORTUNITY.
515 East 79th St 3F 50 Third Ave 1D 55 West 84th St 4 59 West 88th St BF 77 Bleecker St 619
Sale Price — $930,000 Sale Price — $800,000 Sale Price — $865,000 Sale Price — $$685,000 Sale Price — $729,000
Upper East Side 2 bed / 1 bath Boerum Hill 1 bed / 1 bath UWS 1 bed / 1 bath UWS 1bd / 1 bath Greenwich Village loft
© 2019 DOUGLAS ELLIMAN REAL ESTATE.
Jacob Wood
Licensed Associate Real Estate Broker
O: 212.206.2833 | M: 917.232.0803 | Jacob.wood@elliman.com |
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