#ilny

Coordinate all your monies into banking account asap

there is a “seasoning” timeframe if applying for financing. Google “seasoning funds” :)

discuss any possible gift money needed from relatives/friends. Even if you don’t need the money, get the gift anyway to strengthen your co-op board application. make sure to double check the gifting tax threshold.

keep in mind your application offer date and bank statement for the same month. That’s something you will need to share and be transparent with everyone throughout the process.

consolidate your finances into as few bank accounts as possible to minimize hassle explaining during mortgage due diligence by the bank.

typically only 10% of the down payment will be out of your account to secure the offer. The rest of the downpayment will remain in your bank account for co-op and financing proof, and out of your account upon closing.

Shop around for best bank mortgage financing rates

obtain your pre-approval letter from a bank, any bank really, to get the ball rolling

1-3 business days turnaround to obtain pre-approval letter

make sure there is no credit freeze on your SSN which is not harmful but will delay your bank application process to unfreeze and reapply.

obtain pre-approvals from a few banks around the same time to avoid adverse credit pull dings

don’t overthink rates and fees quoted by the bank as it is not advisable to lock in rates early for co-op purchases, due to rate expiration dates extension fees, and these rates could change during your final signing date.

pay closer attention instead to the working relationship you have with your banker, timeliness, which negate any slight 0.01%-0.02% difference in rates.

Don’t feel guilty working with more than 1 real estate agent

The seller will be paying for the buyer’s real estate agent fee usually, so this is complementary help

Alternative online listings like Prevu and Yoreevo offer fee rebates 

A good agent will have solid experience in packaging a stellar co-op application package

A good agent will be able to advise on less known complications like electricals and plumbing needing an upgrade (**extra costs and hassle to take into account) when reviewing property

Research real estate attorneys to represent you

I was quoted $2k-$4k range by real estate attorneys for a ~$500k straightforward co-op purchase in downtown Manhattan

I’ve been told here’s the running rate in NYC 2021:

Standard transaction: $1,500 to $2,750

Luxury transaction: $2,500 to $4,000

Complex transaction: Greater than $4,000

Pricing is always negotiable

Some offered to have fees 50% at signing, 50% at closing. Some 100% at closing

If lacking recommendations, head to https://a836-acris.nyc.gov/ , search for common co-ops you are looking at, and the property record copies display lawyer contacts for those properties

Good to have a backup in case your seller is using the same real estate  attorney for the transaction (which happened to me!)

Co-op due diligence

Watch out and keep in mind co-op maintenance fees, there is always, always a potential for increase

Watch out for rental fees and other misc. co-op fees that could incur down the line which could make it harder to offload your property in the future

You can request for co-op house rules and bylaws before you extend your offer, ask your real estate broker to get a copy for ya!

If looking to renovate/remodel your apartment potentially, grab a copy of the alteration agreement as well. This is a good indicator of how stringent/lax your co-op might be to your future plans here.

Properties sold under “sponsored listings” don’t require co-op board approval