How to Make an Offer on a Co op Apartment in NYC

How does one submit an offer co-op apartment
in New York City? We will demystify this topic in the following
video. I’m Nick at Hauseit and we are the largest
buyer agent commission rebate company and for sale by owner company here in the city
of New York established in 2014. Visit our website to learn
about ways to save up to 2% as a buyer in the city and ways to save up to 6% if you
happen to be selling an apartment as part of your purchase as well. Submitting an offer on a co-op apartment in
New York City is fairly straight forward. The offer itself is submitted via email. Usually by your buyers agent and it consist
of the following items. Your deal terms, namely your purchase price,
contingencies, the % down, anticipated closing date as well as your REBNY financial statement
which tells the listing agent and the seller a bit about your finances, your income, you
assets and your liabilities. You’ll need a pre-approval letter if your financing. You’ll need attorney contact information highly
recommended but not required. You’ll also need to include proof of funds.
If you’re buying a property all cash, you’ll probably want to show enough money to cover
the whole purchase. If you’re financing you may just want to show
10% of the offer price and liquid assets. The purpose of the proof of funds and the
attorney contact information is to convey a large degree of seriousness and credibility
when it comes to your offer in the eyes of the seller. More specifically your offer being compared
to another offer that might not have proof of funds or attorney contact information will
give the listing agent the reason to think that you are much more prepared, ready to
mobilize expeditiously towards a signed contract. Your buyers agent can walk you through all
of these documentation but if you do need a copy of we say a REBNY financial statement,
we do have those on the you can download PDF and excel templates whenever
you prefer. We generally suggest that you actually start
preparing these various offer documents at the beginning
of your search, and the reason being is that even in a turbulent market properties that
are highly desirable in price to sell tend to sell quickly, so you’ll want to be one of
the first movers, there’s always an advantage to being somebody whose more prepared than
other buyers in the room. The offer submission process for a condo and
a co-op are substantially similar. The only main differences is usually when
a condominium you don’t necessarily need to include the REBNY financial statement. Many listing agents for a condominium simply
ask you to fill and submit a offer form which memorializes the deal terms of your offer
and also has a previated financial statement contain there in so you usually only need
that REBNY financial statement with the co-op but if your search doesn’t comes as condos
as well there’s no harm in including your REBNY financial statement along with your
offer. Arguably, it would make you appear even more
so as a credible and legitimate buyer and that could in theory will sold on the seller
being more favorable as it relates to the way they approach you and perhaps they’ll
just simply allow you to pay less money than the other person who doesn’t feel as prepared
in terms of the offer tax and all of the things we’ve touched upon this video. From the time you’ve submitted your offer, it
usually takes a day or so to hear back from the seller with an update. In some cases it can take many days if it’s
holiday or the seller’s travelling it could be a week or more and the typical negotiation
usually takes anywhere from a few days to a week. Now if you’re submitting an offer on a very
desirable property and there’s a bidding war, usually in that case the listing agent will
call for best and final offer submission process during which all of the bidders will submit
their best and final offer terms and it’s a lot more a straightforward process in the
sense that you submitted and that’s pretty much it and then you wait to hear back. A normal negotiation bilaterally between the
buyer and the seller is very nuance and it can very dramatically based on the personalities
involved. Not only the seller and the buyer’s nature
but also the personality of the listing agent for example. Final note if you’re buying a co-op, it’s important
to remember that buildings have varied financial requirements for applicants but as a general
rule of them, your debt to income ratio for a co-op in the city will need to be anywhere
between 25% and low 30’s and you’ll also need roughly 1 to 2 years of post closing liquidity. If you’re receiving a gift for you purchase
or if you have a unique purchasing structure such as a guarantor co purchasing or parent’s
buying for children please do also remember to have your buyer’s agent reconfirm that
your proposed purchasing structure is permitted for the building you’re submitting an offer
on. Last but not least, do remember that the majority
of buyers in the city are represented by buyer’s agents. The reason for this is because the commission
structures in New York CIty are generally fixed. And what that means if the buyer goes without
a buyer’s agent the listing agent usually collects all of that commission and the seller
doesn’t save any extra money by way of the buyer not being represented. Therefore, having a buyer’s agent is essentially
a free service that’s built into the purchase price. Your typical buyer agent will give you a box
of chocolates or a bottle of wine as a token of gratitude. But we suggest you go a bit further. Your typical buyer’s agent gonna earn 2% to
3% on the purchase so why not receive some of that back? In fact you can, through a buyer agent commission
rebate also known as a Hauseit Buyer Closing Credit. Save up to 2% on your purchase of a co-op in
the city, co-op buyer closing costs are actually around 2% so through the buyer agent commission
rebate concept, you can actually significantly reduce if not completely eliminate your buyer
closing costs. We hope you enjoy this video, I’m Nick at
Hauseit. Visit our website to learn
about ways to save as discussed. If you’re looking to just come up with an
estimate as to your buyer closing cost, we got you covered as well. We have a very nice closing cost calculators
for buyer’s interactive free to use, it will show you all the closing cost, you can print
it out, email it to your friends and also download as PDF. Thanks again for watching and we’ll see you
on the next one.

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