11 Steps to Buying A NYC Apartment – The Ultimate Guide
Step 1: Find a Broker You Can Trust
Finding an agent whose personal and professional values align with yours is the real secret to success.
If you’re a first-time home buyer in New York City, your most important partner in this process will be your real estate agent. Finding a smart, tenacious agent is important, but finding one whose personal and professional values align with yours is the real secret to success.
A word of caution – don’t choose an agent purely from whoever happens to be available on Street Easy. Meet them and dig deeper!
You’ll need to both like and trust your agent so that when challenges inevitably arise, you can know they’ll have your best interests top-of-mind.
Look for someone who has experience in both favorable and challenging markets, has stellar negotiating skills, and has done enough deals to be able to answer any questions that may arise.
When meeting a prospective agent, ask lots of questions! You’ll be working with them for at least 90 days, so it’s worth investing some time in the relationship upfront.
Getting to know your potential broker will help you make the right choice and, if there’s chemistry, kick off a productive working relationship. For example:
What motivated you to pursue a career in real estate?
How long have you been in the business?
How many buyers are you currently working with?
Do you work alone or are you part of a team?
On average, how many apartments will you show a prospective buyer before they make an offer?
What’s your experience in the neighborhood I want to live in?
Can you connect me with a past client?
How do you like to keep in touch – email, text, or phone?
How will you advocate for me if I run into any issues along the way?
How would you describe your negotiating style?
If I choose to work with my own lender, how will you coordinate with them?
How much time will I have to review documents before I must sign them?
Step 2: Determine Budget & Build Your Team
Determining a Budget for an NYC Apartment
Determining your budget is essential to the buying process – whether you’re financing the purchase or not. This is especially true in New York City where post-purchase liquidity and DTI (debt-to-income) ratios have a stronger weight than in the rest of the country. While you might be able to put less than 20% elsewhere, in NYC it’s unrealistic.
One of the best ways you can ensure you only fall in love with apartments you can actually afford is to work with a seasoned, experienced real estate agent. We can help you determine your DTI (debt-to-income ratio), post-purchase liquidity, the maximum purchase price that you’ll likely be approved for, what level of monthly fees you can afford, etc.
It’s especially important to work with an expert if you are not a W-2 employee.
Even if you’re paying cash, it’s important to work with a seasoned professional – since many of the higher-end co-ops have separate income requirements that only brokers are familiar with, it can really pay off to work closely with an experienced agent that you trust.
Financing A NYC Apartment Purchase
Once you’ve settled on your budget, and if you want to pay for your purchase with a mortgage, it’s time to find a lender – and you don’t want just anyone you find online.
You’ll want to work with someone who is intimately familiar with the nuances of purchasing in NYC since the financial requirements can be so much stricter compared to the rest of the country. Your broker can usually provide great referrals, but we’d be happy to send you ours as well after a budget discussion – just reach out!
One other note – if your credit score is below 680, it can be very difficult to get a loan, regardless of your other assets.
A Great Real Estate Attorney Is Essential
Now you have a budget and (if financing) a lender, the next person to contact is an attorney. New York City transactions are immensely complicated, and working with a qualified NYC-specific real estate attorney is one of the most important aspects of a smooth deal. We can’t underscore this enough – they need to be strictly real estate attorneys, not someone who does it every once in a while.
This is not an area to have a family member or friend who practices other types of law step in to save a little bit of money – you want the best of the best. Again, your agent should be able to provide great referrals, and we are always happy to share ours as well if we work together.
Step 3: Decide Between Co-op / Condo
Apartments in most prewar buildings will be long-established co-ops, while those in many postwar buildings and new construction will be condos.
Unless you’re in the market for a single-family townhouse, you’ll have two choices as a home buyer in New York City: a co-op or a condominium.
Broadly speaking, apartments in most buildings built before World War II will be co-ops, while those in many postwar buildings and new construction will be condos. Each has its advantages and disadvantages, which we’ll cover below.
Want to learn more? Check out our article Co-ops vs. Condos in NYC: Which is Right For You? or watch the video!
NYC Co-ops: What You Need To Know
For decades the cooperative housing model dominated the city’s real estate industry. Even today, they make up about 70 percent of Manhattan’s inventory. And for all intents and purposes in NYC, co-ops are ‘regular’ real estate…but there are some differences you need to know about.
Co-op apartments are owned by a corporation that owns the building the apartment is in. When you buy a co-op apartment, you’re actually buying shares in that corporation. Those shares give you a proprietary lease to a particular apartment. In other words, you don’t own the apartment, you own shares and lease the apartment from the corporation.
But this isn’t like a regular lease with a landlord – while the building definitely has some oversight into what you do to your apartment, you are free to paint, wallpaper, etc. as you see fit. The co-op’s board will need to give approval for larger renovations, like ripping out and replacing flooring or renovating a bathroom, but smaller items are left up to you.
You’ll be required to have at least 20 percent of the purchase price to serve as a down payment (though it is very often much more than that). Shareholders pay a monthly maintenance fee to cover building expenses, including real estate taxes. Approval is granted by a board of directors, and all prospective buyers must submit a detailed board package that includes financial and personal information, including references, tax returns, and bank statements. The board requires an interview and dictates policies on pets, renovations, who you can sell to, and if/when you can sublet.
Overall, co-ops are great if you are looking for your primary residence and/or love pre-war features. There are many nuances (too many to mention here!) so if you have more questions about co-ops just reach out. We’d be happy to help!
NYC Condos: What You Need To Know
In contrast to purchasing co-ops, condos are real property and you will be given a deed just like in the rest of the country. Besides owning the apartment, you also own a small percentage of the building’s common elements, such as the halls, lobby, gym, etc. Each individual apartment also gets a separate tax bill from the city, and there are monthly common charges for the building’s expenses.
Financing and subletting terms can be more flexible in a condo than in a co-op – meaning if you want to purchase in the name of an LLC or as a pied-a-terre, you can. There is still an approval process to purchase a condo and you’ll still need to submit a thorough package, but it doesn’t require an interview.
Condos are great if you are looking for a secondary residence or pied-a-terre, want to purchase in the name of a trust/LLC/etc., or if you love modern post-war features and architecture. Again, there are many nuances between condos and co-ops to consider, and we’d be happy to walk you through them – just give us a call.
Looking for a quick overview of what post-war apartments are like? Watch this episode covering:
What defines a post-war building?
Interior and exterior construction styles
Ceiling heights
East vs West Side
Balconies vs. terraces
Amenities
Differences in air conditioning
Efficiency vs. space
Room sizes
New development vs. Postwar
What About New Developments?
If you’re seeking a glassy, modern apartment with the latest bells and whistles, you may find new construction the most appealing. Nearly all new construction buildings are condos, and while the purchasing process is similar to a resale condo, there are some differences.
The closing process for a new development condo can be longer and more complex than a resale condo. Construction progress, obtaining necessary permits and certificates of occupancy, reaching the required sales threshold, and finalizing the building’s amenities can all impact when you’ll be able to close and move into your new home.
It’s not uncommon for the closing period in a new development condo to take several months to a year or more, depending on the stage of construction and the developer’s timeline. Below are some general guidelines:
Pre-construction Phase: In this phase, you typically sign a contract to secure the unit before construction begins. The timeline from contract signing to closing can be quite lengthy, often ranging from a few months to a couple of years, depending on the project’s scope and progress.
Construction Phase: Once the construction begins, the timeline for closing is contingent upon the completion of the building and obtaining the necessary approvals. Delays in construction or unforeseen circumstances can potentially extend the closing timeline.
Building Completion and Occupancy: After the construction is completed, the building needs to receive a certificate of occupancy (CO). The CO confirms that the building meets all the required codes and regulations for occupancy. The closing typically takes place after the CO is obtained.
Keep in mind that these timelines are just rough estimates, and they can differ based on factors like the project, developer, market conditions, and other variables.
Other Considerations
Outside of co-ops and condos, there are many sub-types of apartments: maisonettes, land leases, garden apartments, floor-through apartments, etc.
Step 4: Determine Your Wants / Needs
The ‘perfect’ apartment probably doesn’t exist – no matter your list of wants/needs. That’s why it’s a good idea to take some time to gain clarity about what you really need, and what would just be nice to have.
There are three main categories most New Yorkers consider:
Space and layout (How many bedrooms and bathrooms? Home office? Outdoor space?)
Amenities and Features (Doorman? Fitness Center? In-Unit Laundry? Elevator? Central Heat/AC?)
Transportation (How far to the nearest station? Can you walk to your daily needs, or do you need another form of transportation?)
Two of the biggest pain points we hear are around laundry and HVAC. As usual, there are too many nuances to cover in an overview article like this, but we have dedicated episodes for each, linked below!
Step 5: Settle on Location
Buying a home in New York City means buying into a borough, a neighborhood, a block, a street, and a building.
Now that you’ve settled on your budget, wants/needs, co-op/condo, and you have your team in place, there’s one last puzzle piece to nail down: location.
If you’re thinking of purchasing a property in NYC, you’ve probably lived here for a while and have an idea of what your dream neighborhood would be. But if you’re working within limitations that make that neighborhood unlikely, it’s good to have a backup plan.
There are five points to consider when setting your sights on an NYC neighborhood:
Consider your personal vibe
Finding your dream apartment is only half the battle; stroll the streets of its neighborhood at different times of day to get a sense of the energy of the place. A neighborhood that’s library quiet during a Sunday morning open house may be
markedly less so on Monday morning—or Friday night. And keep in mind that a neighborhood’s nightlife is a concern both for people who want to dance till dawn and for people who want to get a good night’s sleep.
Consider your commute
How will you get around? Where’s the nearest subway station and what trains stop there? Try simulating your commute on a weekday morning. Yes, that’s a task, but one that’s worth the effort. A recent study found that New York City residents have the longest average commute in the nation – more than six hours each week – so getting a clear picture of your commute commitment can sour (or sweeten) your neighborhood crush.
Consider your family’s educational needs
Determine how many schools are in the neighborhood and how they’re doing. The nonprofit GreatSchools.org maintains a searchable database of public and private school information, including rankings based on test scores, student progress, and equity (which amounts to a school’s ability to serve students of varying ethnic and socioeconomic backgrounds).
Consider your leisure expectations
Is there a public park around the corner? How about a playground or a dog run? Libraries, theaters, sporting facilities, and dining options matter – coffee shops and bookstores, too. And while it’s true that New York City’s greatest cultural institutions are rarely more than a subway ride away, having one in walking distance can be life-changing. Now’s the time to explore.
Consider the green
Even in the most urban of urban neighborhoods, trees matter. And the New York City Department of Parks & Recreation maintains a sprawling interactive website where it documents the location, species, and trunk diameter of 680,000 street-side trees (park trees are excluded) across all five boroughs – so it’s easy to get a map-level sense of a neighborhood’s green potential.
Step 6: Go See Properties
Finally the fun part! Now that you’ve determined your broker, team, budget, property type, wants and needs, and location, it’s time to go see properties!
One thing we always tell buyers is this: everyone has a certain number of properties that they need to see before they will be emotionally ready to put in an offer. Some people might be okay with moving forward after only seeing one apartment, while others need to see quite a few more.
Throughout the search process, your agent will help you tweak your criteria based on your feedback on properties that you’ve seen. It’s okay if these change over time – sometimes you won’t know what is really a want or a need until you’ve seen several apartments.
Step 7: Make An Offer
With your property of choice finally found, it’s time to make an offer. Your real estate broker will help you evaluate the market by reviewing recent sales data and comparable listings, work with you to put together attractive terms, and then put it all in writing.
Any strong offer will include the following:
Proposed purchase price
Any contingencies
Desired closing date
An earnest money deposit (usually around 10%)
It’s normal to have a bit of negotiation between your broker and the seller’s broker – if the sellers provide a counteroffer, consult with your broker to figure out your next steps.
Step 8: Accepted Offer
Once your offer is accepted, both your real estate attorney and the seller’s real estate attorney will review the document. There are usually about 5-10 days where you will have an accepted offer, but not a signed contract.
An offer just outlines the purchase price and terms, forming the basis for negotiations. A signed contract on the other hand includes all the terms and conditions of the sale including purchase price, contingencies, closing date, and other relevant details.
Once the attorneys have negotiated any remaining terms, your transaction will move from an accepted offer (not legally binding) to a signed contract (legally binding). Only a few more steps until closing!
Step 9: Board Application, Interview, and Approval
Because of all of the work that your broker and team will do before you have a signed contract, the board application and interview process (if you’re in a co-op) are really formalities – though important ones.
In a condo, your broker will submit the package to the building, and unless they use their right of first refusal (which is exceedingly rare), you’ll skip ahead to step 10.
In a co-op, however, you’ll need to submit your board package and also attend an interview.
Board interviews can happen in-person or virtually and are all about presentation – the co-op board just wants to make sure that you’ll fit in with the existing tenant shareholders, that they won’t face any additional risk by allowing you to purchase in the building, etc.
Co-op boards do have the right to reject your application, therefore blocking your ability to purchase the apartment you have in mind, but it is rare. You can mitigate your risk of rejection by working with an experienced broker, having all your financial ducks in a row, and only answering questions that the board asks – don’t volunteer information that you don’t need to.
Now that you have approval from either the condo or the co-op board, it’s time to coordinate your closing! Usually, closing happens within two weeks after board approval, so be prepared to make room in your schedule.
Step 10: Final Walkthrough
Typically right before attending the closing, you and your broker will visit the apartment for a final walkthrough to make sure that everything is as it should be.
Things to look for depend on the apartment and the terms of your contract, but in general, you’re making sure that appliances that should be there are still there and there aren’t any huge damages.
If there’s an issue at the final walkthrough, the brokers and attorneys get back together to figure out what happens, but it’s rare – the seller has every incentive to make sure that the apartment is ready for closing.
Step 11: Closing
Finally, it’s time to close! Your closing might be in-person, but after the upheaval that 2020 caused, it’s not uncommon to carry closings out virtually.
Your attorney, the seller’s attorney, both brokers, and a myriad of other parties will be at the closing, making sure all the I’s are dotted and the t’s are crossed.
This is also the time that closing costs are paid – so be prepared to either wire the money (work closely with your lender and broker to avoid wire fraud), or bring a cashier’s check.
Closing costs are way too big of a topic for an overview article like this, but in case you’d like to learn more, we’ve written two incredibly in-depth articles – one for co-ops and one for condos.
Once the closing is complete, you’ll be given the keys to your new apartment, and you are done! Take time to enjoy your new space and make it yours – congratulations!
12 Steps to Selling A NYC Apartment
Step 1: Initial Conversations With Agents/Brokers
What to Ask A Prospective Seller’s Agent
When you’re enlisting the assistance of an agent in selling an nyc apartment —and signing a contract of exclusivity with them—it’s essential to have a good feeling about the relationship. After all, you will be spending plenty of time working together over the next few months, and there may be moments of stress now and then.
Our best advice is to interview several agents and thoroughly vet them. We’ve included a few questions you can ask below:
How long have you been working as a real estate agent in NYC? Experience matters in a market like New York City. This is especially true if it’s a buyer’s or a seller’s market since each come with their own benefits and difficulties. Look for an agent who has a solid track record and a deep understanding of the local market conditions, trends, and regulations. Our team has a combined experience of 40+ years with $1B+ in sales volume, and we stay on top of current market trends in our monthly Manhattan real estate statistics podcast.
How many listings do you currently have? Consider how many listings a particular agent has compared to other agents – you don’t want someone with too many or too few. Also take into account the size of their team, the quality of the listings (look for picture quality, typos in the listing description, etc.), how often they host open houses, etc. Lastly, take a look at how many listings the agent has in contract. Ideally you’re looking for someone with top-notch pictures, attention to detail, and a healthy number of listings for the current market climate. You can see an up-to-date view of our listings here.
How do you determine the listing price for properties you sell? Pricing your property correctly is crucial for a successful sale. An experienced real estate agent should have a solid understanding of market comparables, recent sales in your neighborhood, and current market conditions to help you arrive at an appropriate and competitive price. They should also want to see the condition of your home before they give you a price.
Which co-op or condo boards have you worked with in the past? Have you worked in my building? If you’re selling a co-op or a condo (which, if you’re in NYC, you most likely are), it’s crucial to work with an agent familiar with the unique challenges and requirements of these properties. Ask about the agent’s experience working with your building or those similar to it.
How often will we be in touch? Clear and regular communication is essential in a successful seller-agent relationship. Ask the agent how they plan to keep you informed about showings, offers, and any developments in the selling process. Discuss your preferred communication methods and ensure they align with the agent’s approach. You should never have trouble getting in contact with your agent.
What’s your marketing plan? A solid marketing plan for selling an NYC apartment includes advertising, online listings, and a calendar of open houses—both for prospective buyers and for other brokers. Ask about the agent’s approach to marketing, including their use of professional photography, videography, online listings, open houses, and targeted advertising. The agent should have a comprehensive plan to showcase your property’s unique features and reach a wide audience. You can see examples of our photography and videography here, and our social media presence here.
Can you provide me with references or testimonials from past clients? Ask for references or testimonials from previous sellers to gauge the agent’s professionalism, communication skills, and overall client satisfaction. Speaking to past clients can give you valuable insights into their experience working with the agent. You can see our Google Reviews here.
At the end of the day, a seller’s broker should be:
An excellent educator on both the current market climate and the usual selling process
An objective advisor that can take the emotion out of the transaction
A marketing specialist with a great track record of selling properties similar to yours
A stellar negotiator that will always have your best interests in mind
A great listener – they should take your concerns to heart and remember your priorities
Remember, choosing the right seller’s agent is a critical decision that can significantly impact the success of your sale. Take the time to interview multiple agents, compare their responses, and select the one that best aligns with your goals, needs, and preferences. If you’d like to get to know our team better, click here!
Step 2: Sign the Listing Agreement
When selling an NYC apartment, it’s common practice to sign an exclusive listing agreement with a broker. The contract, which typically runs six months or longer, spells out exactly how your apartment will be marketed, what access your broker will have to your place (and when), and how much your agent will be paid for her services.
Here are six basic terms you need to know about listing agreements:
Commission
A percentage of the sale price, defined in the listing agreement, is paid to the agent by the seller at the closing table. NYC real estate commissions are typically 5-6%, especially on apartments up to $2M or so. The commission is usually split between the seller’s agent and the buyer’s agent, but this can vary. Also, you get what you pay for, so be wary of agents that are offering rates below what you usually see.
Exclusivity
An exclusive agreement will spell out the terms of the contract and state that your agent now has the sole right to sell your property for the duration of the agreement.
That means the commission will be paid even if you find a buyer yourself.
Exclusivity can actually be further broken down into Exclusive Right to Sell and Exclusive Agency. Exclusive Right to Sell is the most common and comprehensive type of listing agreement, and it makes sure that whoever brings the buyer, the agent is entitled to a commission upon a successful sale.
Exclusive Agency, on the other hand, means the seller retains the right to sell the property independently without paying a commission to the agent. However, if the agent finds the buyer, they are entitled to a commission. Exclusive Agency agreements are very rare in Manhattan, but they do happen every once in a while.
Marketing
When signing an exclusive listing agreement, it’s important to discuss how the apartment will be staged and advertised, how showings will be handled, and when open houses will take place.
Agent’s Responsibilities
The listing agreement should outline the specific responsibilities of the seller’s agent. These may include marketing the property, conducting showings, managing inquiries, negotiating offers, coordinating inspections, and guiding you through the closing process. Ensure that the agreement clearly defines the agent’s scope of work and any additional services or resources they will provide.
Protection Clause
For any exclusive agreement, this piece of the contract protects the seller’s interests. It also protects the agent or broker (and guarantees his or her commission) for a certain period of time after the expiration date. This is important if, for example, a prospective buyer brought in by the agent during the agreement period reappears and makes an offer after the agreement has expired.
Terminations and/or Withdrawal Clauses
Listing agreements should include provisions for termination or withdrawal. These clauses outline the conditions under which either party can end the agreement before its expiration. Common termination reasons include a breach of contract, dissatisfaction with the agent’s performance, or a change in circumstances. Review these clauses carefully and consult with legal counsel if necessary.
Timing/Duration
Most exclusive agreements run for a term of six months. If your apartment hasn’t sold by the end of that period, it’s time to have a sit-down with your agent to discuss fresh strategies (and, perhaps, revised pricing). From there, you can re-up the agreement or decide to part ways. It’s important to carefully consider the duration based on market conditions, the agent’s marketing plan, and your personal circumstances. Be aware that terminating the agreement early may incur penalties or obligations.
Remember, the listing agreement is a legally binding contract, so it’s crucial to thoroughly read and understand its terms before signing. Choose a reputable and experienced seller’s agent who can guide you through the agreement and ensure a smooth selling process.
Step 3: Pre-Listing Preparations
If you’re interested in selling an NYC apartment for the highest price possible in the shortest amount of time, you’re probably going to need to do a little light work on the apartment itself before you list. Now is not the time to do significant renovations (unless you’ve discussed it with your broker/agent), but there are a few polishes we encourage our clients to put on before the photographer and videographer show up.
Make Necessary Repairs
We’re all familiar with the little quirks that don’t really affect your day to day life in your apartment, but are in need of fixing. If one of your doors is missing a doorstop and it bumps the wall behind it, get that fixed. If you’ve got a cracked lightswitch plate, swap it out for a new one. Repair any scratches or dings in your drywall. Fix the toilet that runs unless you jiggle the handle just so. Refinish dingy hardwood floors. Put a fresh coat of paint in every room. Try to look at your place through the eyes of a buyer – these issues may have faded into the background for you, but we promise your potential buyers will take notice if you don’t take care of them.
Deep Clean Everything
Before you consider selling an NYC apartment, it’s imperative that you give the apartment a very deep clean. Windows should be washed, inside and out, so nothing distracts from the view. Make sure cobwebs and dust are swept out of every corner and crevice. Polish any wood built-ins until they sparkle. Make sure you bathrooms and grout lines are pristine. Degrease every inch of your kitchen and make sure you don’t miss the inside of appliances like the oven or microwave. Again, potential buyer’s eyes are much keener than most seller’s eyes and we want to present the most enticing version of your home.
Declutter Each Room (& the Closets)
One of the keys to selling an NYC apartment quickly is to make sure your space is an attractive blank slate. It needs to have mass appeal to draw multiple offers – even if that means you remove your personality from it a bit. Take down family photos and replace them with generic artwork. Pack up any collections you may have.
If you have pets or children, get creative with storing away their numerous toys so the floor is clear and uncluttered. If a room feels overcrowded & tiny because of your massive antique wardrobe, store it elsewhere. Remember to organize and neaten your closets, because folks will open everything.
When there’s less evidence of the people that used to live there, potential buyers find it much easier to imagine their own lives and belongings in your home.
Stage It
There are various methods of staging a home that incur various levels of cost and commitment, but we promise you that in order to secure the highest offer in the shortest time frame, you’re wise to stage your Manhattan apartment somehow.
We often include light staging in our services when we take on the role of seller’s agent, but not every agent in Manhattan does. This includes our tried and true methods to balance the light in every room and make your spaces feel open and functional. We ask that you keep your apartment staged throughout the marketing and showing step of the sales process.
Depending on your budget and needs, we may recommend professional staging (a low-effort and high-cost option) or virtual staging (a low-effort and low-cost option) instead. Please listen to or watch our podcast about the ins and outs of staging in order to learn more. In general, it’s crucial to curate your home and present it in the best possible light (literally and figuratively) in order to close a deal you can be satisfied with.
Photography & Videography
Once your home is in tip-top shape, we swoop in with our professional photographers and videographers to create all the necessary material for digital and print marketing. These photos and the video will be most of your potential buyer’s first impression of your apartment. We also produce the most accurate floor-plan possible. The preparation of all these marketing materials is vital. Potential buyers rely heavily on video in particular to get an idea of how each individual room in your apartment flows together. Excellent photography and videography can drastically widen the funnel of buyers who come through your door to get an in-person walkthrough.
Step 4: Listing Goes Live
Website Launch
The first step to selling an NYC apartment is listing it on Elliman’s website as well as The GVC Team website (see our current listings here). This is where the photography, videography, marketing copy, building information, pricing information, etc. come together to tell the story of your home. GVC also distributes the listing through REBNY’s hub to all the other residential real estate brokerages in the city.
Email Marketing
Once we have an active listing to link to, we distribute your listing to our exclusive mailing list of brokers and buyers alike. This marketing email includes photographs, videos, and information about the listing.
Social Media Marketing
In addition to putting the listing on multiple sites and distributing emails, we also promote all our active listings on a number of social media channels. The professional photography and videography features heavily in our social feeds.
We keep our active listings in the front of our audience’s minds with engaging content in order to keep showings coming long after the first open house ends.
Step 5: Showings/Open Houses
Be Available
After the listing is launched and our marketing push begins, your role as the seller boils down to one thing: being flexible. Every member of our team will be familiar with your apartment as we all make a point to attend the photo/video walkthrough. All we really need from you is to vacate the apartment when we have showings scheduled. If you have a second residence or family you can stay with, that’s fantastic. Another option, if you have friends in your building, is simply to pop over to visit them for a bit while folks tour your home. Remember, if you have pets please take them with you when you give us space to work our magic!
We will of course be extremely communicative with you before, during, and after showings or open houses. Although there’s a certain amount of disruption that comes with this step in the process, we try our hardest to minimize and mitigate it as much as possible.
Seller’s Agent Due Diligence
While we are assembling all the info for your listing and spending time in the apartment in order to conduct showings, we keep an eye on what’s happening in the building. We want to make sure we have up to date and accurate information about potential upcoming assessments or renovations in public areas, etc. We distribute this information amongst our entire sales team so that no matter who is showing your apartment, they can answer tough questions from potential buyers with ease.
Step 6: Field Feedback or Offers
What the Buyer’s Agent Has to Say
First things first, after any showing, we reach out to the buyer’s agent in order to get honest feedback from them about what their buyers thought about the apartment. As trusted advisors for our clients, the general perception of the apartment is a crucial data point for us to keep in mind as we continue to market it. All feedback is valuable and actionable for us in some way – whether it’s a “no”, “maybe”, “not yet”, “yes, but”, or outright “yes!” from potential buyers.
As we gather feedback, we’ll make note of any repeated points that come up and tailor our advice to you, the seller, to fit those common themes. Outlying comments may factor into our advice as well, but generally the repeat feedback is the most valuable because it represents a larger segment of the current buyer pool.
Fielding Offers
Now for one of the most exciting aspects of selling an NYC apartment – fielding offers. It’s important to engage with even lowball offers at some level, no matter what you personally think or feel about it. Courtesy in your responses can sometimes lead to pleasant surprises during negotiations – if we reject “too low” offers bluntly we may never know what price those buyers were willing to come up to.
As we navigate what we hope are multiple offers on your property, it’s crucial that you make an effort to remove your emotion from the process. You are going to feel differently and likely more strongly about this apartment than any other party involved. Our guidance takes your feelings into account, but we will always make our recommendations based on what we feel is truly the best outcome possible under the given circumstances of the market.
We do our best to ensure that our sellers’ expectations are realistic for the market they are in at the time of listing. The last thing we want is for you to feel blindsided or disappointed by the results of your showings and open houses.
Negotiations
While sometimes selling an NYC apartment is simple, more often than not, some level of negotiations are required – and things can quickly get complicated.
It is possible that a potential buyer makes an offer you are completely satisfied with and all you have to do is accept it, but often the initial offer is just opening a dialogue between parties. That dialogue is the negotiation process.
An absolutely vital component to a successful negotiation is whether or not your agent can qualify the buyer. Anyone can make an offer that looks enticing – but it’s our job as the seller’s agent to make sure the buyer has dotted their i’s and crossed their t’s financially speaking.
The board of your building will vet your buyer thoroughly, especially in a co-op purchase, but it’s best for us to do so prior to signing any contracts in order to ensure the transaction makes it to closing day swiftly and with as few bumps in the road as possible.
Additionally, this is where your broker’s experience in both Manhattan and the neighborhood you’re in come into play. The more knowledgeable your real estate expert is about comparable recent sales and trends within the block or building, the better able they are to negotiate on your behalf and get you the best sale price possible.
Step 7: Accepted Offer
Assembling the Transaction Sheet
Once both parties have agreed to the terms of the sale, we enter the transaction sheet and paperwork phase of the process. The listing agents compile those terms and the buyer and seller’s relevant information into the transaction sheet, which is distributed to both parties’ attorneys.
Due Diligence
Once the transaction sheet arrives, the attorneys can begin their due diligence on the building and title. This step is essentially the attorney signing off on the transaction saying it’s fair and there are no potential issues with the title.
Our job as the listing agent is to make the relevant information as accessible as possible and to facilitate communication between the buyer’s attorney and the managing agent of the building. The more efficiently and effectively we can navigate the buyer’s due diligence, the quicker we can get the contract assembled.
The two attorneys (buyer and seller) will then enter their own negotiations with the goal of a fair contract for both sides of the transaction in mind. Your attorney will share the contract details with you at a high level but you likely will not see the full contract until they’ve come to a mutual understanding.
Step 8: Contract Signed
Executing the Contract
After the attorneys agree on the contract, they will present it to their clients. If everyone agrees to the terms, the buyer will sign the contract first and submit the 10% contract deposit. The sellers will then countersign the contract and return it to the buyer’s attorney. The seller’s attorney will place the contract deposit into an escrow account until closing.
Until all of the above steps are complete, the contract is not legally binding. This means either party can walk away right up until both signatures are dry. We always want our clients to make well-informed decisions, but there is a sense of urgency we ask for at this stage of the sale. Dragging your feet can lead to the buyer’s feet getting cold.
Step 9: Buyer Board Package/Mortgage Application
As the seller at this step in the sale process, you don’t have much to do! As your agent, we will keep tabs on the progress of your buyer through the assembly of their board package. And of course, we’ll update you along the way.
Mortgage Approval
The responsibility for guiding the buyer through the mortgage process usually falls on the buyer’s agent. That said, if there is any way we can assist in moving the application along, The GVC Team always does so, in order to make sure our sellers transact successfully. Most building boards require a commitment letter from any lender involved in the sale, so securing this letter is the final piece of the puzzle needed in order to submit the board application.
Submitting the Board Package
We are extremely well-versed in the ins and outs of putting together pristine board packages that represent our buyers well. Typically, this experience proves more relevant when we are representing the buyer in a transaction. However, there are some cases where the buyer’s agent is a little greener than us or a buyer has particularly complex financials, and in those transactions we are happy to share our expertise to benefit our sellers.
We usually work on the mortgage application and the board package concurrently, so that once the commitment letter from the lender comes in, the board package is ready to be submitted to the managing agent. They will screen it first, and then send it on to the building board for review.
Step 10: Board Interview/Condo Waiver
One incredibly important thing to keep in mind when selling an NYC apartment is that the board of your building can take as long as 2-8 weeks (or longer) to review the buyer’s application. This is why thorough preparation and thoughtful presentation in the previous step are so important – to eliminate as much back and forth about the application as possible.
Co-op Board Interviews
After the co-op board reviews the buyer’s application and they decide they wish to move on to the interview step in the process, the interview often happens within a week. As with the board package, the buyer’s agent will typically prepare the buyer for the interview.
Again, we check in with the buyer’s agent to make sure everyone feels good about the interview ahead of time. If the buyer’s agent reports any uncertainty, we do our best to help them mitigate that.
To avoid surprise denials at this stage in the process, those steps early on where we qualify and vet the buyers beforehand are key. Because of that groundwork, it’s rare for us to get anything but an approval at this stage.
Condos and the Right of First Refusal
As with co-ops, the managing agent reviews the application first, then sends it along to the board for review. However, the next steps are substantially different. The condo board does not necessarily need to approve a buyer, they are simply reviewing the application and terms of the transaction to decided whether or not to exercise the right of first refusal.
The right of first refusal is a clause in condominium bylaws that gives the board the right to deny a pending transaction – if they agree to purchase the unit at the same price the buyer and seller have agreed upon. Most average condominium bylaws allow 30 days for the board to issue or waive the right of first refusal. It’s rare for condo boards to exercise that right, but it can happen.
When you hear back from the condo board or the window specified in the bylaws runs out without a response, the transaction can move on to the final steps.
Step 11: Final Walkthrough
What A Final Walkthrough Is
One of the last hurdles in selling an NYC apartment is the final walkthrough. A final walkthrough is conducted by the buyers and their agent, where they look over your now empty apartment and agree to accept it as is or ask for repairs/concessions for necessary repairs.
In other markets across the country, the property is inspected before closing and the buyers make their requests based on the opinion of the home inspector. In New York City, apartments typically convey in “as-is” condition. This means that all appliances, lights, and built-in electronics are to be in working order, floors are to be broom-swept, etc. before the final walkthrough takes place.
Preparing for Your Final Walkthrough
Leading up to the final walkthrough, we have a few tasks we consider standard issue.
First, change all the lightbulbs and make sure all the outlets and light switches are in working order. Next, run ALL the appliances to ensure they still run normally – especially if the apartment has been empty for some time. We recommend you get your apartment professionally cleaned. Additionally, if you or your movers caused any damage in the moving process, we recommend addressing those repairs before the walk-through.
All of our recommendations stem from this question: How would you like to see your new home at the final walkthrough? Sparkling, well-lit, and operational are a great place to start.
Step 12: Closing
What A Final Walkthrough Is
One of the last hurdles in selling an NYC apartment is the final walkthrough. A final walkthrough is conducted by the buyers and their agent, where they look over your now empty apartment and agree to accept it as is or ask for repairs/concessions for necessary repairs.
In other markets across the country, the property is inspected before closing and the buyers make their requests based on the opinion of the home inspector. In New York City, apartments typically convey in “as-is” condition. This means that all appliances, lights, and built-in electronics are to be in working order, floors are to be broom-swept, etc. before the final walkthrough takes place.
Preparing for Your Final Walkthrough
Leading up to the final walkthrough, we have a few tasks we consider standard issue.
First, change all the lightbulbs and make sure all the outlets and light switches are in working order. Next, run ALL the appliances to ensure they still run normally – especially if the apartment has been empty for some time. We recommend you get your apartment professionally cleaned. Additionally, if you or your movers caused any damage in the moving process, we recommend addressing those repairs before the walk-through.
All of our recommendations stem from this question: How would you like to see your new home at the final walkthrough? Sparkling, well-lit, and operational are a great place to start.