Manhattan, the Big Apple” is one of the nation’s most best loved cities. If you are from other state or other country, to search an apartment in New York City may seem a bit overwhelming at first time. Therefore, to understand the process, learning about the current market, terminology will be very important in order to help you to find your next perfect home.
While this 5 tip for purchase real estate in Manhattan wills guiding you the knowledge of what to expect.
1) How much Manhattan Real Estate can you afford? It is a very important question asks yourself before start to search your next home. To get a pre-approval for a mortgage from your lender or mortgage broker before your search in order you become a more attractive candidate when you find the home you like. There is about 20% to 30% price different between condo and co-op. And the average price for condominiums is from $851 to $1,205 per square foot. The price per square foot is depending on location, apartment and building condition, size and building amenities, etc.
2) Choose the right neighborhood & right apartment for you also is one of the important considerations when you purchase a home in Manhattan. Manhattan is a very unique universe of its own, where has different construction buildings (pre-war, post-war, townhouse, brownstone & new construction) and different entertainment in the area. If you do your homework or heir a profession real estate broker, the process will flow much more smoothly, and you will get the home that suits your lifestyle.
3) What is co-op? There are 85% of the building are co-op. It is the most comer buying option in New York City today. Co-op is buildings owned by corporations with the residents as shareholders. To purchase a co-op, the purchaser will receive a proprietary lease on an individual unit and the right to use the common areas. The benefit to purchase the co-op is lower initial purchase; control your own living space. The disadvantage to purchase the co-op is stringent co-op board and restrictions on the sublease.
4) What is condominium? Condominium is a property developed for co-ownership. Condominium is considered real property. The owners hold a fee simple deed to their individual condo unit. In the common area, all residents use and own as tenants in common. The benefits are easy approval, flexibility in financing options, low maintenance fee, and leasing freedom. Disadvantages are high price and legal responsibility.
5) Purchase process for condo and co-op are very similar. After you make an offer, the negotiation processes begin. The seller may counter you offer. Only when a “meeting of the minds” occurs, the agreement fulfills. Then the seller’s attorney will prepare a contract of sale, and your attorney will begin to examine the financial condition of the building in which you wish to purchase. When your attorney satisfies the contract of sale, you will be asked to sign the contract and 10% of the purchase price of deposit will require. This money will be held in the seller’s attorney’s escrow account until closing. Another important thing has to mention is until all the parties have signed the contract, and been delivered, the seller can still accept another offer. If you need a mortgage, the loan application process begins. You also will receive board requirement and application materials. The materials including: application, a financial statement signed by a CPA, 2 or 3 year of tax return, bank statement, letter of personal, financial, professional reference, the contract of sale, loan document, etc. The process is quite different between condo and co-op, from building to building. For co-op, you will be invited, which to be board interview by either board or an interview committee. After approval by the board, you start to plan for a closing. The entire process can move quickly in a condo and assuming about 60 days. However the co-op process is more involved around 60 to 90 days is normal.
I had the privilege and pleasure to work with Avi Voda, Founder and Executive Vice President of The Voda Group at Prudential Douglas Elliman. The Voda Group has been the top, award winning sales team at Prudential Douglas Elliman since 2003. Now I co-broker with Top Brokers in Prudential Douglas Ellimen.We pride ourselves as specialists in condominium and co-op sales in Manhattan. If you have any question about Buy or Sell real estate in Manhattan, contact me directly Diana Wu at 516-320-0231 (cell) or email me at diana.wu@elliman.com. I would provide a free analysis of your property and your real estate goal. I also discuss our marketing strategy with you.
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