1. Find An Agent.
Look for a licensed real estate agent who is knowledgeable about the neighborhoods you’re considering and is an expert in the process, with a proven track record.
2. Get Pre-Approved.
Before beginning your search, you should get pre-approved by a mortgage banker for a loan (unless you are all-cash buyer). Your Compass agent can connect you with a trusted mortgage banker to determine your ultimate buying power.
3. View Properties.
Attend viewings and open houses spanning a range of areas and property types. Work with your agent to narrow down your search.
4. Make An Offer.
Reach an agreement with the seller on price and terms. Once you have seen a home you like, you can put in an “offer,” which is a non-binding agreement to pay a certain price for the property. Your Compass agent will advise you on negotiation strategies throughout this process.
5. Conduct Due Diligence.
Analyze the contract of sale as well as building financials and board minutes with your attorney. It is best to work with an attorney who specializes in NYC co-op and condo sales.
6. Sign Contract and Put Down Deposit.
You will sign the contract and put down a deposit of 10% of the purchase price.
7. Complete Loan Application.
Your bank will schedule an appraisal of the property, and you will submit all necessary financial paperwork as part of the loan process.
8. Prepare Your Board Package.
This co-op or condo application process requires detailed financial documents, reference letters, and your mortgage documents. If you are purchasing a co-op, an interview with the board will be required before approval.
9. Receive Board Approval.
After your interview with the co-op board, you will receive official approval to become a shareholder in the corporation. If you are you purchasing a condo, the board will issue a “waiver” of their right of first refusal. No interview will be required at a condo.
10. Bank Issues Clearance to Close
11. Schedule Closing.
The attorneys will coordinate a closing date with building management and the bank.
12. Final Walk-Through with Your Agent.
You and your agent will inspect the property before closing to make sure all appliances are in working order and that the apartment is being delivered per the contract terms.
13. Closing.
Congratulations, you are now a home owner!
