Buying/Selling Guide

Buying Guide Selling Guide

SELLING GUIDE:

The selling process typically includes the following:

Home Preparation and Marketing for Sale

  • We will provide comprehensive and tailored advice and service in order to best prepare, list, and market your property

Bidding and Negotiation

  • We will present you with all offers made by prospective purchasers along with their qualifications
  • We will accept or counter offers at your direction as part of the negotiation
  • We will work closely with you to establish and execute a sale and negotiation strategy which ensures the best and most qualified buyer at the optimal price for your needs
  • The conclusion of the process will result in agreement upon price, terms, and closing date
  • You and the buyer will engage New York real estate attorneys to prepare and review a contract of sale

Going to Contract

  • Once you have an accepted offer we will enter the contract stage
  • While your attorney prepares the contract of sale, the buyer’s attorney will request certain key due-diligence items from you and your buildings managing agent, generally including:
    • Statement of building’s financial condition
    • Building by-laws
    • Proprietary lease/offering plan
  • Upon approval and agreement of the buyer’s attorney, the contract of sale is signed by the buyer. Upon signing the buyer also typically presents a deposit of 10% of the sale price.
  • The contract and deposit are forwarded to your attorney, who will obtain you signature
  • The buyer’s deposit is usually held in your attorney’s escrow account until the closing date.

Board Approval

  • We will present the buyer with the board requirements, which often include:
    • Application
    • Financial statements
    • Tax returns
    • Personal and financial reference letters
    • Contract of sale
    • Bank financing documents if applicable
  • The buyer’s agent will compile the board package and send it to us for review. Once we have confirmed that everything is in order, they will distribute copies to the members of the board
  • Upon review, the board may ask for additional information. It may also turn the buyer down. Once the board is satisfied with their review they will arrange to interview the buyer. NOTE, condominiums normally do not require interviews. If all goes well, official approval will be relayed to us by the building’s managing agent

Closing

  • After board approval, the final step is scheduling a convenient closing date for all parties involved. Immediately prior to closing the buyer’s agent will schedule a walk through to make sure all is in order at the property. Barring anything specified to the contrary in the contract, all fixtures and appliances that are scheduled to be conveyed with the sale should be in good working order

ESTIMATED SELLER CLOSING COSTS (VARIES BY DEAL – ALWAYS VERIFY WITH ATTORNEY AND MANAGING AGENT):

Co-Op Sellers

  • Broker’s fee
  • Seller’s attorney: ~$3,500
  • NY City transfer tax: 1% of sales price for sales up to $500,000, 1.425% of sales price for sales in excess of $500,000
  • NY State transfer tax: $2 per $500 of sales price
  • Possible flip tax which may be paid by buyer or seller
  • Managing agent fee: ~$600
  • Stock transfer tax: $0.05 per share
  • Move-out deposit or fees: ~$1,000
  • Payoff bank attorney (if seller has mortgage): ~$500
  • UCC=3 filing (if seller has mortgage): up to $100 per loan

Condo and Townhouse Sellers

  • Broker’s fee
  • Seller’s attorney: ~$3,500
  • NY City transfer tax: 1% of sales price for sales up to $500,000, 1.425% of sales price for sales in excess of $500,000
  • NY State transfer tax: $2 per $500 of sales price
  • Miscellaneous title company fees (if seller has mortgage): ~$450
  • Move out deposit or fees: ~$1,000
  • Managing agent fees: ~$500
  • Possible Flip tax

 

BUYING GUIDE:

The buying process typically includes the following:

Bidding and Negotiation

  • We submit an offer on your behalf to the seller’s real estate broker along with your qualifications
  • Seller may accept or counter your offer as part of the price negotiation
  • If your final offer is accepted, the conclusion of the negotiation process will result in agreement upon price, terms, and closing date
  • You and the seller will engage New York real estate attorneys to prepare and review a contract of sale

Going to Contract

  • Your attorney will conduct due diligence by requesting certain key documents from the seller/building managing agent, which will generally include:
    • Building by-laws
    • Proprietary lease/offering plan
    • Building financial statements
  • Following your attorney’s review and approval, you will sign the contract of sale. Typically a 10% deposit is included with the contract of sale
  • Contract and deposit are forwarded to the seller’s attorney for the seller’s signature. Generally your deposit is held in the seller’s attorney’s escrow account until the closing date

Board Approval

  • The seller’s real estate agent will provide us/you with the board requirements and approval forms, which often include:
    • Application
    • Financial statements
    • Tax returns
    • Personal and financial reference letters
    • Contract of sale
    • Bank financing documents if applicable
  • We will assist in compiling the board package in any way helpful
  • Upon completion, we will present your board package to the building’s board of directors
  • Upon review, the board may ask for additional information. It may also turn you down. Once the board is satisfied with their review they will arrange to interview you. NOTE, condominiums normally do not require interviews. If all goes well, official approval will be relayed to us by the building’s managing agent

Closing

  • After board approval, the final step is scheduling a convenient closing date for all parties involved. Immediately prior to closing we will schedule a walk through for you to make sure all is in order in your new property

ESTIMATED BUYER CLOSING COSTS (VARIES BY DEAL – ALWAYS VERIFY WITH ATTORNEY AND MANAGING AGENT):

Co-Op Buyers

  • Buyer’s attorney: ~$3,500
  • Bank fees, if applicable (application, credit reports, appraisal, bank attorneys, etc.): ~$2,500
  • Mansion tax: 1% of purchase price for purchases in excess of $1 million
  • Lien search and UCC Filing: $425
  • Managing agent or co-op attorney: $750
  • Move in deposit and/or fee: ~1,000
  • Possible flip tax which may be paid by buyer or seller

Condo and Townhouse Buyers

  • Buyer’s attorney: ~$3,500
  • Bank fees, if applicable (application, credit reports, appraisal, bank attorneys, etc.): ~$2,200
  • Mortgage tax: 1.8% of mortgage loan amount for loans under $500,000 or 1.925% of mortgage loan amount for loans over $500,000
  • Mortgage title insurance: $200 per $100,000 (if financing)
  • Title insurance fee: approximately $450 per $100,000
  • Mansion tax: 1% of purchase price for purchases in excess of $1 million
  • Miscellaneous title charges: $500
  • Managing agent fee: $500
  • Note, when purchasing in a new development form a sponsor the purchaser is normally required to pay New York City and New York State transfer taxes as well as the sponsor’s attorney’s fees
  • Possible Flip tax