Buying Guide

Choosing your next home or investment can be an exciting and overwhelming process. In New York City, you have an array of options and various factors to weigh into your decision. We’re here to provide those vital dynamics which will enable you find the perfect new living space.

KNOWING WHEN TO BUY

You should always know if you are about to engage in a buyer’s market or a seller’s market. In a buyer’s market, inventory is high and demand low, thus giving the upper hand to the buyer. In a seller’s market, inventory is low and demand is high, which may result in bidding wars, in which prospective purchasers may have to offer above asking price to knock out competitors.

If you find yourself in a seller’s market and have ample time, we would advise you to wait for the market to fluctuate. If time is of the essence your EZ NYC representative will create a comparative market analysis so you are able to make a reasonable offer.

CHOOSING THE RIGHT TYPE OF PROPERTY

Prior to this journey, you should identify the type of property best for you. Types of properties include but are not limited to: Co-op, Condo, Townhouses, etc. Each of these types of properties presents different advantages, and some may be more suitable for you than others. It is important to determine which type best fits your needs as it will help you narrow your search and save time. For a description of the various types of properties in New York City, check out our list here.

LOCATION

As the old saying goes, it’s all about location, location, location! This is the one of the most important factors in choosing your new home or investment property. You want to make sure you buy in a neighborhood that is accessible to your specific needs. This may be a specific subway line, a school for your children, or a park for your pet. Location and accessibility has an immense impact on price and value appreciation. Prices in certain neighborhoods can be inflated or prone to major appreciation. Consult with your EZ NYC representative for such information to find out which neighborhood best matches your criteria. No matter where you choose to purchase a property, get familiar with all the options New York City has to offer.

POLICIES, AMENITIES & FEATURES

Do you have any pets? Would you need bike storage in the building? Are you purchasing a pied-a-terre or co-purchasing with your child? The answers to these questions are essentials you should convey to your EZ NYC representative in your initial conversation to make the search more efficient.

WHAT CAN YOU AFFORD? FINANCING?

Will you be buying in full cash or considering financing? If you are planning to finance you will want to consult with a mortgage broker. To choose the right mortgage broker for you, consult with your EZ NYC representative for a list of reputable brokers that we have closed successful transactions with. Check out our recommended references list here.

The purpose of your mortgage broker is to provide you with a pre-qualified and pre-approval letter. They will be able to analyze your financial scenario and what you can afford. This prevents placing yourself in any unnecessary financial burden. These documents will outline how much the mortgage company would lend you based on a background and financial check. Doing this firsthand will save much time and set you apart from other buyers planning to finance. Prospective sellers will feel more secure and often require these documents alongside your offer.

HIRING A LAWYER

 An experienced New York City real estate attorney is a must-have in the buying process. They can review contracts, offering plans, building financials, board minutes, and title search. They perform thorough due diligence and can find merits that do not meet the eye at first glance. Reach out to your EZ NYC representative to receive a list of reputable NYC attorneys that we have worked with in the past and closed successful transactions with. Check out our recommended references list here.

MAKING AN OFFER

 Once you’ve identified the property that feels right for you, it’s time to make an offer! Consult with your EZ NYC representative about what the appropriate offer will be. They might recommend proposing an offer below asking price depending on the current market conditions, this will commence the negotiating process. If the property is receiving multiple offers, you would be advised differently depending on that particular scenario. When a seller is presented with multiple offers, it commences a bidding war which may result in the accepted offer being over asking price.

 If negotiating, your initial offer might be accepted, or—most likely—-tackled with what’s called a “counter-offer” by the seller. This is a price proposed by the seller that is above your offer but still lower than the initial asking price.

 Once your offer is accepted, a deal sheet will be created with all personal information and will be delivered to both attorneys to begin their due diligence.

APPLICATION PROCESS

Once the due diligence has been completed by your attorney and a contract has been signed with 10% down, depending on type of property you purchase (Co-op or Condo) you may need to provide documentation for the “Board Package”. This is necessary in order to be approved by the board of the building. Transferring ownership of a co-op usually requires the consent of the building's board while the transfer of a condo usually does not. Regardless of the type of property you are applying to purchase, board packages must be assembled.

Typical Documentation Required for a Board Package:

Financial statements, Tax Returns, Bank Statements

Letters from bankers, accountants and employers verifying all claims

Letters of personal and business reference

Loan Approval & Commitment Letter Issued from Bank (if you are financing)

Seller & Buyer Signed Contract

Escrow Deposit

THE CLOSING TABLES

Once you’re approved by the board, you will find yourself finally at the closing table!

Prior to executing the sale, you will have a walk-through of the unit the very same day. This is when you visit the unit once again to make sure the unit is in the condition you will soon agree to purchase.

Once at the closing table, you will be present alongside your EZ NYC representative, your mortgage broker (if applicable) and go through and sign various documents with your real estate attorney. Last but not least, you will receive your new deed and keys. Congratulations!