Buyer's Guide

1. Pre-Purchase Planning

Your home search should begin with an initial consultation with a real estate agent. During this meeting, you’ll discuss what you’re looking for in a home and be introduced to the terms of your potential working relationship through the Buyer’s Representation Agreement, which is required for anyone working with a Buyer’s Agent in New York City.

• Determine your Budget and Savings: How much cash do you have available to make a purchase? In NYC, you’ll typically need at least 10–20% of the purchase price in cash to buy. Will you be getting a mortgage? A good agent can recommend trusted mortgage banks to help calculate what you can afford and estimate your monthly payments. You can also use this handy mortgage calculator to get a rough estimate.
• Don’t forget to account for additional costs, such as the Mansion Tax for purchases over $1M and closing costs. Co-ops often require significant liquid post-closing cash reserves (e.g., 1–2 years of carrying costs, including maintenance and mortgage payments).
• Create a wish list: Define your “must-haves” (e.g., number of bedrooms, transit access, natural light) and “deal-breakers” (e.g., no pets allowed, no elevator). This will help your agent target properties that meet your needs.

3. Get Mortgage Pre-approval

This step is essential before viewing properties if you plan to finance your purchase, as it provides a clear idea of what you can afford. A pre-approval can be obtained relatively quickly from a mortgage banker or broker, and your agent will need it to submit any offers on your behalf.

4. Prepare Financial Documents

Before submitting offers, gather all necessary documents for your agent and lender. The list may vary by purchase, but it’s generally helpful to have:

• 2 years of tax returns / W-2s
• Recent pay stubs
• Bank and asset statements

For an apartment purchase, your agent will use this information to prepare the REBNY financial statement, which is required when submitting an offer.

6. Make an Offer

Work with your agent to determine a fair market price based on comparable sales (comps) and current market demand.

• Submit Offer Documents: Prepare a strong, non-binding offer package, which often includes your REBNY Financial Statement and pre-approval letter.
• Negotiate Price and Terms: Work with your agent to finalize the price and terms, including any contingencies, such as financing.

7. Getting in to Contract

The seller’s attorney will draft the contract of sale.

Due diligence: For an apartment, the attorney will review the building’s offering plan, finances, and board meeting notes, as well as communicate with building management to identify any potential red flags. For all properties the attorney will review public records through city databases and title searches for violations or open permits. In NYC, inspections typically occur during this stage, before contract signing.

Attorney Review: Once both parties have reviewed and negotiated the contract, the buyer will sign and place a 10% contract deposit into escrow, held by the seller’s attorney. After these funds have been received, the sellers will countersign and the fully executed contract will be distributed to both parties.

10. Final Walkthrough 

A day or two before closing, a final walk-through is scheduled to ensure the home is in the same condition as when you signed the contract and that any agreed-upon repairs have been completed. During this visit, appliances and outlets should be tested, and faucets and plumbing run to check for leaks or defects.  The listing agent will make sure that utility accounts remain open through the walk-through to ensure everything can be tested. Prior to close, you can also arrange for the accounts to transfer to your name the day after closing for a smooth transition.

11. Closing

Once all requirements have been satisfied to complete the transaction, the attorneys will schedule a closing. At the closing, you will sign all final documents, pay the balance of the purchase price, and the remaining closing costs. After these are complete, you get the keys. Congratulations!