Timeline for Purchasing a Condo, Apartment, Co-op, Flat, or Townhouse in Manhattan

Now is the time to invest in Manhattan real estate. Don’t be put off by the seemingly daunting task of going through the many steps of buying a new home. Knowing what you are getting into and being prepared make the process not only easy but enjoyable.

Listed below are the appropriate steps to take to ensure you will find the perfect home in Manhattan:

• Seek pre-approval for a mortgage. You will need 1 to 2 days for this. It is very important to 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.
• Find an apartment. Searching for an apartment can take from 3 to 6 months depending on what you are looking for. The average potential buyer sees 20-25 apartments before deciding on one. Much time can be saved by those who do their own research on the internet before the physical search begins. The average number of apartments viewed by our internet buyers before buying is 4-5.
• Negotiate on the Apartment. Negotiation can take from 3 days to 2 weeks. Everything is negotiable so inquire about fixtures, window replacements, air conditioners, rugs, floors, curtains, appliances, working fireplaces, washer dryers, etc. Apartments are delivered ‘broom clean.’
• Sign a Contract. The typical time frame for this is 1 to 3 weeks. In NYC buyers and sellers typically each have their own attorneys representing them. The seller's attorney draws up the contract for the buyer's attorney and the buyer's attorney performs ‘due diligence’ which includes reading building’s board minutes, financial statements, etc. in order to determine whether there are or may be any hidden problems or expenses in the building. If the buyer is satisfied after “due diligence” is performed, he or she signs the contract and his/her attorney forwards it with a 10% deposit to the sellers who then execute the contract. Contract contingencies include obtaining financing and board approval. The quicker the contract can be signed, the better. A contract is binding only after both parties sign it.
• Apply for a Mortgage and Receive Commitment Letter from Lender. This process can take a number of 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. Allow yourself ample time for this step. 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 co-op demand extensive information in a Board Package. Most Boards request 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. Those who do not want to supply this information should consider investing in 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 Review by the Managing Agent. You must allow 1 to 4 weeks for this. The buyer's real estate agent will help complete the Board package and 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 co-op. 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 board interviews takes from 30 minutes to 1 hour. Co-op boards typically meet once a month. Although a board interview may be granted, this does not guarantee board approval.
• Receive Approval from Board. You will most likely receive notification from the board about the status of your acceptance in less than 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. Closing dates are specified in the contract of sale, but may have to be adjourned if the board has not given its approval by the contract date. 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 months

Contact Alfred Real Estate and get started on purchasing your Manhattan dream home today.





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