How does one submit an offer co-op apartment in New York City?
We will demystify this topic in the following video.
I'm Nick at Hauseit and we are the largest buyer agent commission rebate company and
for sale by owner company here in the city of New York established in 2014.
Visit our website www.hauseit.com to learn about ways to save up to 2% as a buyer in
the city and ways to save up to 6% if you happen to be selling an apartment as part
of your purchase as well.
Submitting an offer on a co-op apartment in New York City is fairly straight forward.
The offer itself is submitted via email.
Usually by your buyers agent and it consist of the following items.
Your deal terms, namely your purchase price, contingencies, the % down, anticipated closing
date as well as your REBNY financial statement which tells the listing agent and the seller
a bit about your finances, your income, you assets and your liabilities.
You'll need a pre-approval letter if your financing.
You'll need attorney contact information highly recommended but not required.
You'll also need to include proof of funds. If you're buying a property all cash, you'll
probably want to show enough money to cover the whole purchase.
If you're financing you may just want to show 10% of the offer price and liquid assets.
The purpose of the proof of funds and the attorney contact information is to convey
a large degree of seriousness and credibility when it comes to your offer in the eyes of
the seller.
More specifically your offer being compared to another offer that might not have proof
of funds or attorney contact information will give the listing agent the reason to think
that you are much more prepared, ready to mobilize expeditiously towards a signed contract.
Your buyers agent can walk you through all of these documentation but if you do need
a copy of we say a REBNY financial statement, we do have those on the www.hauseit.com you
can download PDF and excel templates whenever you prefer.
We generally suggest that you actually start preparing
these various offer documents at the beginning of your search, and the reason being is that
even in a turbulent market properties that are highly desirable in price to sell tend
to sell quickly, so you'll want to be one of the first movers, there's always an advantage
to being somebody whose more prepared than other buyers in the room.
The offer submission process for a condo and a co-op are substantially similar.
The only main differences is usually when a condominium you don't necessarily need to
include the REBNY financial statement.
Many listing agents for a condominium simply ask you to fill and submit a offer form which
memorializes the deal terms of your offer and also has a previated financial statement
contain there in so you usually only need that REBNY financial statement with the co-op
but if your search doesn't comes as condos as well there's no harm in including your
REBNY financial statement along with your offer.
Arguably, it would make you appear even more so as a credible and legitimate buyer and
that could in theory will sold on the seller being more favorable as it relates to the
way they approach you and perhaps they'll just simply allow you to pay less money than
the other person who doesn't feel as prepared in terms of the offer tax and all of the things
we've touched upon this video.
From the time you've submitted your offer, it usually takes a day or so to hear back from
the seller with an update.
In some cases it can take many days if it's holiday or the seller's travelling it could
be a week or more and the typical negotiation usually takes anywhere from a few days to
a week.
Now if you're submitting an offer on a very desirable property and there's a bidding war,
usually in that case the listing agent will call for best and final offer submission process
during which all of the bidders will submit their best and final offer terms and it's
a lot more a straightforward process in the sense that you submitted and that's pretty
much it and then you wait to hear back.
A normal negotiation bilaterally between the buyer and the seller is very nuance and it
can very dramatically based on the personalities involved.
Not only the seller and the buyer's nature but also the personality of the listing agent
for example.
Final note if you're buying a co-op, it's important to remember that buildings have varied financial
requirements for applicants but as a general rule of them, your debt to income ratio for
a co-op in the city will need to be anywhere between 25% and low 30's and you'll also need
roughly 1 to 2 years of post closing liquidity.
If you're receiving a gift for you purchase or if you have a unique purchasing structure
such as a guarantor co purchasing or parent's buying for children please do also remember
to have your buyer's agent reconfirm that your proposed purchasing structure is permitted
for the building you're submitting an offer on.
Last but not least, do remember that the majority of buyers in the city are represented by buyer's
agents.
The reason for this is because the commission structures in New York CIty are generally
fixed.
And what that means if the buyer goes without a buyer's agent the listing agent usually
collects all of that commission and the seller doesn't save any extra money by way of the
buyer not being represented.
Therefore, having a buyer's agent is essentially a free service that's built into the purchase
price.
Your typical buyer agent will give you a box of chocolates or a bottle of wine as a token
of gratitude.
But we suggest you go a bit further.
Your typical buyer's agent gonna earn 2% to 3% on the purchase so why not receive some
of that back?
In fact you can, through a buyer agent commission rebate also known as a Hauseit Buyer Closing
Credit.
Save up to 2% on your purchase of a co-op in the city, co-op buyer closing costs are actually
around 2% so through the buyer agent commission rebate concept, you can actually significantly
reduce if not completely eliminate your buyer closing costs.
We hope you enjoy this video, I'm Nick at Hauseit.
Visit our website www.hauseit.com to learn about ways to save as discussed.
If you're looking to just come up with an estimate as to your buyer closing cost, we
got you covered as well.
We have a very nice closing cost calculators for buyer's interactive free to use, it will
show you all the closing cost, you can print it out, email it to your friends and also
download as PDF.
Thanks again for watching and we'll see you on the next one.