Buyers
Simplifying your next home purchase in New York City
Buying a property in New York City may seem overwhelming at first. Like any investment, however, it takes due diligence, patience, and prudent planning.Step 1: Know your budget
Determine how much you want to put down as a down payment and what your monthly expenditures are. Monthly expenditures may include:Step 2: Understand the closing costs
Closing costs vary depending on whether you are purchasing a condominium or co-operative.| Co-Op | Condo | |
| NYC Real Estate Attorney Fees | Depends on attorney | Depends on attorney |
| Credit report fee | ~$100 |
~$100 |
| Mansion tax | NYC |
1% of purchase
price |
| Origination costs (points) | 0-3% of loan |
0-3% of loan |
| Application and credit check | At least $500 |
At least $500 |
| Appraisal | At least $300 |
At least $300 |
| Bank Attorney | At least $500 |
At least $500 |
| UCC -1 Filing | NYC |
At least $50 |
| Recognition Agreement Fee | At least $200 |
NYC |
| Lien Search | At least $350 |
NYC |
| Maintenance Adjustment | Prorated for month
of closing |
NYC |
| Mortgage Recording tax | NYC |
1.8 - 1.925% of
mortgage |
| Title insurance, search, and recording fees | NYC |
~.5% of purchase
price |
| NYC RPT Tax | NYC |
1% - 1.425% of
purchase price; $4 per $1,000 of purchase price |
| NYS transfer tax | NYC |
$1,500 |
sources: NY Department of State; instant NEW YORKER analysis and research.
Fees listed are for illustrative purposes only. Always check with a attorney prior to signing a contract.
Step 3: Pre-approval for a mortgage
Contact a NYC based mortgage broker to understand your qualifications.Step 4: Find a NYC real estate attorney
New York City real estate is highly specialized and it is critical you identify a NYC based real estate attorney that will take the time to guide you through the process of buying a new home. Since real estate attorneys make their money on the closing, it is to their incentive to move you along the process as quickly as possible. So make sure you do your research carefully and choose a attorney that is attentive to your individual needs.Step 5: Do your homework
Research the internet before you view apartments. Learn up on the different neighborhoods in Manhattan, their school districts, and nearby transportation. Make a checklist of what amenities you must have and what you can live without - including parking, views, building and unit amenities, sunlight, and space.Step 6: Communicate with your "relocation advocate"
Once you have completed all the prep work it is time to work with a broker who will take you out on appointments, assist you in putting together your mortgage application and board package (for co-ops), and securing your desired apartment.As in all other professions and industries, brokers all possess their unique strengths and weaknesses. Instant NEW YORKER relocation advocates can help you find the broker that has the right skill sets to assist you in your purchase. We have nothing to gain in referring you to the 'wrong" broker since we don't get paid unless you close.
Step 7: Negotiating and closing on your chosen property
Once you have found the apartment you want to purchase, there are several steps you must take to close on the apartment. These steps depend on a variety of factors, including whether the apartment is a co-op or condo. Your broker and real estate attorney will guide you through the rest of the process.Typical steps include:
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