How to Buy a Home
New York City is one of the most diverse and competitive real estate markets in the world, and we understand that making the decision to buy a home here can be a particularly overwhelming experience. From mastering the difference between condos and co-ops, to planning for closing costs, to approaching the board approval process, there’s a lot to learn.
​
That’s why we’ve created this buyer’s guide— to set you on the right course to owning a New York City home of your own.
APPRAISAL
Assessment of the property’s market value, typically done for the purpose of obtaining a mortgage.
COMMON CHARGE
Monthly maintenance fee paid by condo owners. Property taxes are not included in the common charge.
​​More
1
Choose Your Neighborhood and Budget
Whether you are considering to buy your first home, or looking to add more assets in your investment portfolio, location is always the first priority when it comes to real estate properties. And decide on your budget based on your financial status and planning so you know where to start with.
2
Find an Agent
Look for a licensed real estate agent who is knowledgeable about the neighborhoods you’re considering and can help guide your search.
3
Get Pre-Qualified
Before beginning your search, your first step is to get pre-approved for a mortgage loan (unless you will be paying in cash for the full price of your home). Your Compass agent can connect you to a mortgage broker. Based on your income and credit history, the mortgage broker will determine how much the bank will lend you, which will help you determine the price range
for your search.
4
Visit Properties
Attend viewings and open houses spanning a range of areas and property types. Now is the time to consider your ideal home’s location and amenities. While condos do not generally require board packages or interviews, you will need to present a purchase application that shows you are financially qualified to purchase the apartment.
5 \ Negotiate
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 home. If your offer is lower than the list price, the seller will likely return with a “counter offer” price, which you can choose to accept, reject, or make another offer. Your Compass agent will provide advice on pricing throughout.
6
Review
​Analyze the contract of sale, building financials, and board minutes with your attorney. It’s best to work with an attorney who specializes in New York City co-op and condo sales. Your attorney’s job is vital to protecting your interests, and they have an incredible amount of paperwork to review on your behalf. Therefore, you want to select an attorney who is familiar with these transactions.
7
Sign Contract and Put Down Deposit
When contract review is done by your attorney, you will sign and put down the deposit. Then contract will be sent to the seller to countersign. Once contract is fully executed, you and the seller will both keep a copy.
8
Complete Loan Application
Organize an appraisal with your bank.
9
Prepare Your Board Package
Co-ops are run by a board of directors, who will require a board package in order for you to purchase an apartment. A board package generally consists of financial documents including tax returns, bank statements, mortgage commitment from your bank, and letter of reference. After reviewing your package, the board will set an interview date. Your Compass agent will help prepare your board package as well as prepare you for your interview.
While condos do not generally require board packages or interviews, you will need to present a purchase application that shows you are financially qualified to purchase the apartment.
10 \ Board Approves the Purchase (Coops)
Co-ops are run by a board of directors, who will require a board package in order for you to purchase an apartment. A board package generally consists of financial documents including tax returns, bank statements, mortgage commitment from your bank, and letter of reference. After reviewing your package, the board will set an interview date. I will help prepare your board package as well as prepare you for your interview. While condos do not generally require board packages or interviews, you will need to present a purchase application that shows you are financially qualified to purchase the apartment.
11 \ Bank Issues Clearance to Close
12 \ Closing Scheduled by Attorneys
13 \ Final Walk-Through with Your Agent
14 \ Closing. Congratulations, you are now a home owner!
