Here are some basic steps in purchasing a Manhattan apartment for the first time.
1- Decide on a Manhattan neighborhood
2- Get a pre approval
3- Co-op or condo?
3- Find a buyer broker
Also I would add to choose your real estate attorney well. Usually your buyer broker can help you with that. A real estate attorney usually chages around $2500 or so but some that do excellent work can be found for as little as $1700 depending on the price range of the property.
Additionally, beyond getting the pre approval make sure that the bank will finance in the building that you choose. Some buildings have sponsors that still own more than 10% of the shares(co-ops) or the apartments(condos) or a higher than usual percentage of tenants. This can complicate financing and is an area very often overlooked by many real estate brokers. This as a buyer can cost you time and money and add stress. So vet the building with your lender to avoid all of that! What are your tips for a first time buyer?
For many first time buyers of NYC co-ops, it can be an education to really understand what it means to buy as well as live in a NYC co-op. Here are some examples of differences between a co-op and condos which are closer to what most buyers are familiar.
1- Co-ops limit financing typically to 80% of the value of the property. So if you purcharse a co-op for $1million you can normally finance only $800k. Some co-ops will allow even less financing or no financing at all as is the case on some select buildings on Fifth avenue on Manhattan’s upper east side. Condos in some cases will allow as much as 90% loan to value. So a $1million condo can be purchased in some cases with as little as $100k down.
This 2 bedroom 1.5 bathroom cooperative offering will be coming to the market shortly. It has been undergoing a renovation for the last several months so I thought you might like to see some pictures. Let’s start with the before pictures of the apartment and in another post, I will walk you through the after pictures.
This apartment is directly across from Riverside Park which you can see from the lovely common roof deck.