Timeline Guide for Purchasing
GimmeShelterNYC's Time Line Guide for Purchasing:
Here are the steps you'll take to find and close the apartment of your
dreams:
Seek pre-approval for a mortgage:
Typical time frame: 1 - 2 days
You must know how much you can spend before you spend it.
Condominium apartments require at least 10% down; cooperative
apartments generally require at least 25% down. However, every building
is different. 15% of Manhattan's buildings are condominium buildings and
the other 85% are cooperatives.
Find an apartment:
Typical time frame: 3-6 months
Depending on what you are looking for, the length of your search will vary.
The average person sees 20-25 apartments before deciding on one.
Internet-savvy buyers save time by doing their 'homework' before their
search. The average number of apartments viewed before buying by our
internet buyers is 4-5.
Negotiate on the Apartment:
Typical time frame: 3 days to 2 weeks
Everything is negotiable so inquire about assessments, fixtures, window
replacements, air conditioners, rugs, floors, curtains, appliances, working
fireplaces, washer dryers, etc. Apartments are delivered 'swept clean'.
Sign a Contract:
Typical time frame: 1-3 weeks
Generally, in a sales transaction, a New York City real estate attorney
represents each buyer and seller. The seller's attorney draws up the
contract for the buyer's attorney; the buyer's attorney does 'due
diligence'-reading minutes, financial statements of buildings etc. The
buyers sign the contract and forward the contract with a 10% deposit; the
sellers execute the contract. Possible contingencies: Financing, Board
Approval, closing dates. (See our list of closing costs associated with
buying and selling condominiums and cooperatives.) The quicker the
contract can be signed, the better. A contract is binding only after both
parties sign it.
Apply for a mortgage:
Receive Commitment Letter from Lender.
Typical time frame: 6 - 9 weeks
Mortgage applications cannot be processed without an executed contract.
If an apartment is being financed, the board requires a commitment letter
from a lender. These letters are generally the last items to complete a
board package/condo application.
Complete a Board Package or Condominium Application:
Typical time frame: 3 - 9 weeks
Cooperative apartment buildings require board approval before a closing
can take place. Condominiums require an information packet to be
completed before a closing can take place. In order to review a potential
purchaser, the Board of Directors for a Coop demand extensive
information in a Board Package. Most Boards request the following
information: full financial disclosure (net worth) with supporting
documentation, employment history, current salary, personal and business
references, tax returns for the previous 3 years, credit history, etc.
If a
purchaser cannot or does not want to supply this information, he/she
should buy a condominium. Board packages/Condo applications are given
to potential purchasers to fill out after a contract has been executed.
If
there is no financing, it usually takes about 2-4 weeks to gather the
information for the board condominium application.
Submit Board Package or Condo Application for the managing
agent's review:
Typical time frame: 1-4 weeks
After the buyer's real estate agent completes the Board package, he/she
will forward the package to the managing agent of the building. The
managing agent will inspect the package to ensure it is complete. The
package will then be forwarded to the Board of Director's of the Coop.
After the Board reviews the package, they will decide if they would like
to
meet the potential purchaser.
Meet the Co-op Board for an Interview:
Typical time frame: 30 minutes - 1 hour
Coop Boards typically meet once a month, and some Boards do not meet in
August. Every Board is different, but generally a Board Meeting will be
held
in the evening on a weeknight. Although a board interview may be granted,
this does not guarantee board approval.
Receive Approval from Board:
Typical time frame: 1 day - 1 week after board interview
The managing agent will generally alert the seller's broker whether a
potential purchaser has passed the board.
Schedule a Closing:
Typical time frame: 1-2 weeks after board approval
Managing agents generally set the date for closings, and lawyers for
sellers and buyers coordinate with the appropriate banks on available
dates and times.
Typical Time Frame from the time an apartment is found, to the time an
apartment closes: 3-5 mos.