Buyers and Sellers

Buyer’s Guide To Purchasing In New York City

Buying real estate in New York City is different from buying real estate in any other city in the country. At KG Properties of New York, we are here to guide you every step of the way to make the process as smooth, profitable and even enjoyable as possible. One of our experienced agents will help determine which type of apartment is suitable for you, assist in neighborhood selection, and educate you regarding real estate prices.

New York City comprises mainly cooperative and condominium apartments along with a smaller number of private townhomes. It is important is understand the differences among the types of apartments you will find in Manhattan.

When working with buyers we break down the process into Five Stages:

Stage 1 – Preparation

• Create a Plan
• Arrange Financing
• Hire an Attorney
• Prepare Finances and Down payment

Stage 2 – Property Search and Offer 

• Find the Right Property
• Make an Offer

Stage 3 – Contract Negotiating and Signing

• Negotiate Contract Terms
• Sign Contract with Seller
• Prepare Board Package for Approval

Stage 4 – Bank Approval and Building Approval

• Receive Financing Approval
• Co-op or Condo Approval

Stage 5 –Closing

• Close on Property

Download Buyers Guide

SELLER’S GUIDE TO SELLING IN NEW YORK CITY

Market Research

• Know what has sold in your building over the last few years.
• Review the comparable market analysis with your broker so you are educated about value.
• Determine the best time of year to bring your property to market with your broker. You want to be competitive and maximize your exposure.

Building Financials

• Flip Tax: Find out if your building has one and who pays it.
• Mortgage: Know the amount of the mortgage on the building and its terms.
• Reserve Fund: Know what is in the building reserve fund as it relates to cash on hand.
• Special Assessments: Ask if there are any special assessments planned.
• Approved Lenders: Find out the banks that have approved the building for lending. This is very helpful for perspective purchasers.

Structural – Building and Apartment

• Construction: Know if there is any planned in the near future before or after you sell.
• Structural: Ask when the roof and mechanicals were last replaced or updated.
• Renovations: Be aware of any renovations that may hinder a potential purchaser from renovating the apartment.
• Legal: Tell your broker if there are lawsuits or bed bug issues and how they are being dealt with.
• Equipment: Make sure all your appliances including windows, plumbing, and electrical are in working order.
• Leaks: Be prepared to discuss any leaks that may have occurred because the buyer’s attorney will ask it to be disclosed in a rider.

Board Package

• Managing Agent: Make sure the managing agent knows that you are selling your property to be in compliance with any building rules on marketing, etc.
• Transfer Cost: Confirm the amounts of associated transfer cost and who pays them.
• Financials: Get the last two years of financial statements, offering plan and amendments as the broker will need to give them to the buyer.
• Alteration Agreement: Get a copy of the alteration agreement from the managing agent for the buyer to review in case they plan to do a renovation.

Personal Finance*

• Loan Balance: Get the amounts of your loan payoffs and who you are writing the check to.
• Capital Gains Taxes: For a single individual there is no tax on gains up to $250k and a married couple is $500k in gains. Speak with your accountant for a more in-depth explanation.

*Discuss with your broker and banker if you need to sell in order to buy. That may mean you will need a bridge loan, a holdover agreement, or a lease back.

Preparing to List

• Minimize: The easiest way to prepare your property for sale is to pack up and store clutter, clean out closets and cabinets and minimize the amount of furniture in each room. It will help to define the space and make it feel larger.
• Organize: Once you have minimized, you should organize all the remaining furniture and accessories to give the property a lived in feel but make it look like a show piece.
• Glamorize: Finally, a fresh coat of paint or newly buffed floors can make a world of difference when it comes to presentation. Everything should look clean and updated.
• Staging: When your budget allows, hiring a professional stager can drastically increase your chance of selling quickly and at the highest and best price. We are visual creatures and pretty always wins!

Download Sellers Guide

Closing Costs

This guide is designed to give you the general costs associated with the purchase or sale of a cooperative, or condominium in New York City. Please note that all amounts are estimates and that potential buyers and sellers should consult their real estate attorney or financial advisor for specifics.

For The Purchaser: Co-operative & Condominium Apartments

• Own Attorney: $2,500 + up
• Managing Agent & Building Fees: $250 – $1,000 – will vary by each building
• Credit Report Fee: $50 – $100 per applicant
• Lead Paint Disclosure Fee: $0 – $50
• Move-In Deposit: $500 – $1,500 (usually refundable if no damage)
• Mansion Tax: 1% of purchase price when over $1 million

Mortgage Associated Fees

• Origination Costs: points 0 – 3% value of loan
• Application, Credit Check, etc: $400 + up
• Appraisal: $250 – $1,500 (depending on sales price)
• Bank Attorney Fee: $500 + up
• UCC-1 Filing: $50 + up
• Recognition Agreement Fee (co-op): $200 + up
• Lien Search: $250 – $350
• Title Insurance, Title Search & Recording: Approximately .5% of purchase price

Purchasing In New Construction

• NYC Real Property Transfer Tax
• -1% of purchase price up to $500,000
  -1.425% of purchase price over $500,000
• NYS Transfer Tax: .4% (.004) of purchase price
• Sponsor’s Attorney Fee: $2,500+
• Contribution to Working Capital: Typically 2 months of common charges

For The Seller: Co-operative & Condominium Apartments

• Own Attorney: $2,500 + up
  Co-op Attorney (if co-op): $450 + up
• NYC Real Property Transfer Tax
• -1% of purchase price up to $500,000
  -1.425% of purchase price over $500,000
• NYS Transfer Tax: .4% (.004) of purchase price
• Flip Tax (if applicable) Determined by the co-operative: Typically 1 to 3% of the purchase price
• Stock Transfer Stamps (co-op): $.05 per share
• Managing Agent & Building Fees: $200 – $750 – will vary by each building
• Payoff Bank Attorney (if applicable): $450 + up
• Move-Out Deposit: $500 – $1,500 (usually refundable if no damage)
• Broker Commission: 6% of Sales Price
• E Tax Filing (ACRIS): $50
• UCC-3 Filing Fee (co-op): $100

***Please note that we do not represent that these are the entirety of potential costs, but are only to be used as a guide.