Date: May 12, 2015 Location: Jay Suites - 31 W 34 Street, 7th Floor
Buyer & Seller Event
RES Manhattan & RES Brooklyn NY Licensed Real Estate Broker
31 West 34th Street, Ste 8002, NY, NY 10001 t: 212.206.9082 f: 718.873.2394
resnewyork.com
Co-ops vs Condos
Condominiums (condos) Real property, owner receives a deed
Cooperatives (co-ops) Personal property, own shares in corporation and receive proprietary lease to specific unit
Individually assessed & taxed
Easier process to buy, sell & lease
Investor & second home friendly
One resident’s actions do not threaten the entire building
Less supply, especially by neighborhood
Higher purchase closing costs due to mortgage recording cost & title insurance
Higher supply - roughly 75% coop vs condo in NYC
Can be slightly less expensive than comparable condo
Lower purchase closing costs (2%-4%)
Less investors, more stable pricing in down markets
Higher owner occupancy rates, less renters
Stricter purchase & sublet policies
Board approval process for sales & leases
Many co-ops have mortgage on building & land
default and over-leverage risk
Purchase Timeline (60-120 days)
Week 1 • Get pre-qualified w/
mortgage broker or banker
• Determine price range you can afford & discuss ideal buying criteria with your RES agent
• Determine strategy with your RES agent and begin viewing listings
Week 2 • View properties with
your RES Agent
• Other pre-offer preparation with your RES agent
• Choose a real estate attorney
Week 3 • Negotiate offer &
acceptance
• Transaction memo to Buyer & Seller attorney
Week 5 • Execute contract and
fund 10% deposit
• Begin working on loan application (if applicable)
• Prep & submit condo board application or begin working on board package for co-op
Week 4 • Contract negotiation
Week 6-10 • Appraisal
• Loan application
• Prep & submit condo board app (or begin co-op app)
• Loan commitment
• Closing for cash purchases
Week 10-14 (if co-op)
• Submit co-op app (if applicable)
• Co-op approval
Week 10-12 (or 14-16 if co-op)
• Bank & attorney closing closing preparation
• Final Walk-through
• Closing
Market Overview - Inventory Shortage
Market Overview - Bidding Wars
Illustration by Mark Nerys, NY Magazine, Published May 16, 2010
Setting Yourself Apart
Step 1 Assemble Your Team • Mortgage Broker • Real Estate Agent • Attorney
Step 3 Be Patient
• Don’t rush to accept • Best overall buyer,
not nec. best price • Expedite contract
Step 2 Be Prepared
• REBNY Financial • Documents ready • Terms & Timeline
Step 3 Offer Presentation
• Be Aggressive • Flexible Terms • Inspection
Step 1 Assemble Your Team • Real Estate Agent • Attorney
Step 2 Be Prepared
• Repairs • Staging • Pricing • Showings
Buyer Tips
Seller Tips
Rent vs Own
Owning
Accumulate Equity
Tax Benefits
Predictable payments
Home ownership & Community
Long-term commitment
Property maintenance
Requires significant up-front capital
Tied to location
Less up-front capital required
Flexible and short term
Not responsible for maintenance
Sometimes lower monthly cost
No equity accumulation
Subject to landlord or market rent increases
More transient community in rentals
Renting
Thank You
Illustration by Mark Nerys, NY Magazine, Published May 16, 2010