Condominium Closing Costs Cooperative Closing Costs

Buyers guide:

Home ownership is still very much a part of the American dream but one that mandates homework. Some legwork and considerable effort on your part will ensure a smooth process. At Shalev Marketing, we know New York. It is our specialty. We speak this city's many languages, and we speak the most important one of all: the complicated language of this great city's real estate market. The Shalev Marketing Buyer's Guide is intended to help you understand this language and prepare you for the process.

Prepare yourself for the buying process;

Strengthen your credit: Pay off credit cards, resolve any credit disputes or delinquencies, and cancel unused cards. Your credit rating takes into account both how you use the credit you have available and whether your available credit is too high for your income
One of the first decisions that you need to make as a buyer; is what sort of building is the best fit your investment purposes. In Manhattan there are two main options. Co-op, Condo or a Condop. Our agents will aid you further in determining what will be the best fit for your needs.
Simplify your search by defining the area you'd like to live in. Do research - it's important that you know your neighborhood. Look at prices, home design, proximity to shopping, schools and other amenities
Work with a mortgage professional on pre-qualifying for a mortgage.

Work with your Shalev Marketing agent and determine what is most important to you in finding your new home. Spend the time discussing the different options and once you have made clear your requirements; our agent will walk you through the exciting process of finding you new home. Mind you finding the apartment you want is only half of the process.

Plan ahead! The NYC market moves fast and requires the buyer (as well as his or her support team of real estate agent, attorneys, and financers) to be prepared. Before you make your offer, have the following package ready, as it will be required at a later point in every buying transaction:

Financial statement of your net worth signed by a CPA
Support for the statement, including:
Tax returns from the past three years
Bank statements
Letters of personal, financial, and professional reference (verifying your employment, salary, and fiscal health)

Make your offer.

This will be presented by your agent to the seller or his or her representative. A seller may reply with a counter-offer; this is the start of the negotiation process.
Once the negotiation process is complete, retain the services of a real estate attorney. Choose someone who knows the NYC market well. Your attorney will determine the financial profile of the building, will Review the contract of sale, and will assist you with forwarding the down payment to the seller.
At this point, you will complete the application for the co-op or condo and will send it along with your financial package, to the building’s board. You may be called to interview in person with the board. Upon approval, you will begin the closing process. This will involve another inspection of the property with your real estate agent, final financial transactions, and your receipt of a title, deed, or stock certificate.

Definition of Terms

Cooperatives (coops) are apartment buildings owned by a corporation. You do not own your apartment/s in exactly the same way that you would a condominium or home. When you purchase an apartment in a coop building you become a shareholder - this entitles you to a "proprietary lease" The number of shares you own depends on the size and floor level of your apartment. As a shareholder you share the responsibility in the maintenance of the common areas; such as the lobby, Laundry-room and hallways. Coop owners pay a monthly a maintenance fee which includes property, water and sewer taxes; any underlying mortgage, and salaries of the building staff.

Cooperative ownership is the most common form of apartment ownership in New York City.

As a shareholder you will have control over who buys into the building, whether pets are allowed in the building; types of improvements to the building and other issues concerning the building.

There are three times as many co-ops as there are condominiums in Manhattan, so a coop apartment that is similar in size and layout to that of a condominium is likely to be much more affordable.

Condominiums (Condos) are buildings containing units that are individually owned and have joint ownership in the common areas. The common areas may include building structure, grounds, hallways, elevators, recreation areas, etc. Each owner is responsible for upkeep of their unit, and also pays a monthly fee (common charges) toward the costs of the common areas i.e. Lobby, Entrance-way, Elevators and Hallways.

Ownership of a Condo unit offers greater flexibility than a coop; such as renting and selling of the unit.

Cond-ops Appeared on the market about 10 years ago, and is described as a residential Cooperative where the ground floor is a commercial unit/s. These are typically owned by an outside investor or the original sponsor of the building. The residential units are a separate entity and operate under the guideline of the cooperative. Many times people will refer to Cooperatives that operate under Condominium rules as "Cond-ops". This is not accurate although you will hear this quite often

The term Cond-op is frequently misused, so be sure to ask how the term is being used when you hear i

This may seem overwhelming, especially for the first-time buyer, but we are here and we are committed to helping you with every step of the way. We will also assist you in identifying other professionals, like attorneys, mortgage brokers or even movers who will help you secure your NYC co-op, condo, or cond-op of your dreams!