How long does it take to close on a co-op apartment in New York City? We will
demystify this topic in the following video. I'm Nick at Hauseit, we are the
largest for sale by owner and buyer agent commission rebate company here in
New York established in 2014. Visit us at www.hauseit.com to learn about
ways to save money when buying and selling real estate in New York City. So
how long does it take to close on a co-op apartment in New York? Well the
immediate answer is that it takes around three months from the time that you are
in contract. However there is a tremendous amount of uncertainty and
variability when it comes to this timeline primarily because the specific
timeline of each building varies depending on who the managing agent is
and who the individual board members are. Furthermore, the timeline can be
prolonged or shortened based on the actual season time of year when you
submit an application, but as a general rule around three months is a reasonable
assumption for you to make as you plan your life in terms of your current
rental and how to move into your new place. If you've just started your search
and you're thinking when will I be able to move into an apartment that I have
yet to submit an offer on, a better assumption is perhaps around six months.
Figure a few months for your search and around a month to submit an offer,
negotiate work with your attorney on the buyer due diligence and the purchase
contract itself and then of course once you're in contract managing that
three-month timeline to closing. The specific components of the time length
of closing for a coop pretty much starts with the signed contract. Now once you
have a signed contract the first thing you need to do if your financing is
apply for a mortgage. Doing this takes around three weeks four weeks you know a
lot of it varies on how busy the underwriters are what time of year it is
where interest rates are, etc. but as a general assumption you'll have around
three weeks during which you can begin preparing components of your co-op board
application. The idea being that once you receive the commitment letter from your
bank in three to four weeks time you'll be able to simply just slot that into
your co-op board application which is largely complete
and submit that immediately. Keep in mind that most contracts purchase
contracts will stipulate that as a purchaser you need to submit the board
application within some period of time after receiving the commitment letter
and usually that's around five days or it could be five business days. Once you
submit your co-op board application it usually takes around four weeks to
hear back from the board. The board will usually come back with a request for an
interview of course if they're happy with what
they see but it is possible that the board could just reject your application
outright deny you the opportunity for the interview itself. Keep in mind that
that four week estimate on hearing back from the co-op board is nothing more
than an estimate. In some cases we've seen it take 12 weeks and in other cases
it's taken a week it really depends on the type of building the particular
board members, how they operate who the management is and also whether
it's a big or a small building. From the time you complete your interview it
usually takes about a week to hear back as to a decision and thereafter if
you're approved figure one to two weeks to close. So just to recap again three to
four weeks to get your commitment letter then four weeks approximately to hear
back from the coop regarding your application a week or so to coordinate
the interview and one to two weeks thereafter to actually close on the
apartment. So as a general approximation three months is usually how long it
takes to close on a co-op apartment in New York City from the time you are in
contract. If you are looking to buy a co-op in New York, we'd love to hear from
you. You can actually save up to 2% on your purchase by working with
a Hauseit affiliated buyer's agent and requesting a Hauseit Buyer Closing
Credit so to learn more about that visit our website www.hauseit.com, spelling is below.
We also have some great calculators as well, so if you want to figure out what
your buyer closing costs might be we have a calculator for that you can type
in your purchase price property type how much you're financing and it will
actually generate a nice and itemized output of all of your closing costs. You
can print it, email it, send it to a friend so it will give you a lot of
information to help you plan your purchase going forward here in the city.
Thanks so much for watching and we'll see you on the next one!