A Buyer's Guide to New York City
Purchasing a home is one of the most important decisions you will make in your life, with many personal and financial aspects to consider. The real estate market in New York City is like nowhere else in the world. Because of the unique challenges you will face during your search, your choice of broker is key. The right broker should have confidence to inform you about the current market trends, knowledge to guide you toward well-informed decisions about your purchase, and the attentiveness to consider your needs and desires throughout the process. They also bring a network of top real estate professionals that are essential to completing the transaction successfully.
1. Make a Wish List
List all of your desired criteria, ranking them in order of importance, to help your Hecht Group agent find properties within your price range that match your needs.
2. Prequalify for a Mortgage
Obtain a prequalification letter from the bank or mortgage broker of your choice. It is a free and easy service, and offers from prequalified buyers are taken more seriously than those without mortgage qualification.
3. View Properties
Your Hecht Group agent will conduct extensive research and schedule viewings of properties that fit your criteria.
4. Make an Offer
Your Hecht Group agent will submit a written offer on your behalf once you have found the perfect property. This letter will include offer price and the name of your attorney in New York, as well as your income and financial qualifications to demonstrate your strength as a candidate.
5. Prepare a Deal Sheet
After negotiations are complete and the seller accepts your offer, your agent and the seller's agent will prepare a deal sheet. This document provides the required information to both parties' attorneys and brokers and contains the agreed-upon terms for the sales contracts.
6. Execute the Contract of Sale
The seller's attorney will draft a contract of sale, then provide it to your attorney for review. Once you sign it, it will be sent with a deposit check (typically 10% of the purchase price) to the seller's attorney. The deposit is held in escrow until the closing of sale. Once the seller signs the contract, it is considered to be fully executed and legally binding. This process may take up to 1 month, depending on how long it takes for the attorneys to review the offering plan.
7. Apply for a Mortgage
A mortgage application may take 1 to 2 months to complete, so it is vital to contact your bank or mortgage broker immediately after the contract is signed. A fully executed contract must be included with the mortgage application.
8. Prepare the Board Package and Board Interview (If Required)
Your agent will help you to prepare and submit your co-op or condominium board package. For co-op sales, you will be interviewed by the Board of Directors and receive their decision within 48 to 72 hours. Your attorney will coordinate the closing once the board has given approval.
9. Inspect the Property
Your agent will accompany you on a walk-through to inspect the property prior to the closing of sale. During the inspection, it is important to verify all is working properly in the property, including appliances, fixtures, plumbing, electricity, and so forth.
10. Close the Sale
Closings are typically held with your attorney, the seller and seller's attorney, the lender's attorney, and both real estate agents in attendance. Once complete, you will have the keys to your new home!