Essential First Time Home Buyer Tips for NYC

As a first-time home buyer, it’s important to understand how the offer process works in New York City, which is quite different from most other states. In New York City, offers are typically submitted by email, either by the buyer or the buyer’s agent.

When submitting an offer, it’s common to include a personal financial statement and/or a mortgage loan preapproval letter. These documents help demonstrate your financial capability to the seller.

Once the offer is submitted, there may be some back-and-forth negotiation on the price. However, it’s important to note that once the seller accepts your offer, it is considered a gentleman’s agreement on the price and general terms.

After the offer is accepted, the buyer enters the due diligence phase. During this phase, the buyer has the opportunity to conduct an inspection. It’s important to disclose your intention to do an inspection when making the offer. The buyer’s attorney will also review important building documents, such as the original offering plan, financial statements, and board meeting minutes.

Throughout the due diligence process, the attorneys on both sides will negotiate the purchase contract. This contract outlines the specific terms and conditions of the sale.

Once all parties are ready and the contract is fully executed by both the buyer and the seller, the deal becomes binding. It’s important to note that before the contract is fully executed, either party can back out of the deal.

As a first-time home buyer in NYC, it’s crucial to work closely with your real estate agent and attorney to navigate the offer process and ensure a smooth purchase.

Remember, buying your first home is an exciting milestone, and understanding the unique aspects of the New York City real estate market will help you make informed decisions throughout the process.

Are Inspections Required in NYC?

In New York City, the commonality and necessity of property inspections can vary greatly depending on the type of property you are purchasing.

Condo and Co-op Purchases

• Not Typically Required: Inspections are not commonly conducted in NYC for condo and co-op purchases.

• Reasons for Limited Inspections:

  • Partial Ownership: Buying a condo or co-op means partial ownership of a larger building, often comprising hundreds of units. Due to this shared ownership, individual liability for common elements (like an old boiler) is relatively minor.

  • Building Restrictions: Often, buildings may not permit inspectors to examine shared systems or structural elements, such as the building’s boiler.

• Exceptions:

  • Ground Floor Units: Inspections might be more relevant for ground floor units, particularly for issues related to vermin or insects.

  • Top Floor Units: Top floor units could require inspections for potential roof leak issues.

Single-Family Houses and Townhouses

• Highly Recommended or Mandatory: Inspections are quite common and arguably essential for single-family homes and townhouse purchases.

• Full Responsibility: When purchasing these types of properties, you are responsible for the entire structure.

  • Thorough Inspection Needed: It’s crucial to understand the condition of the entire property, including the roof, internal structure, and other critical aspects.

• Scope of Inspection:

  • Visual Inspection: Generally, inspectors conduct a visual assessment. They are not expected to open up walls or make invasive checks.

  • Advanced Techniques: Some inspectors might use tools like infrared scanners to detect hidden issues such as water leaks or moisture within walls.

It’s important to consider that an inspector’s role is to provide a professional evaluation of the property’s visible condition. For single-family houses or townhouses, where the buyer’s responsibility encompasses the entire property, a comprehensive inspection is key to making an informed purchase decision. For condos and co-ops, the necessity of an inspection might be less due to the nature of shared building responsibility and restrictions on assessing communal areas.

Getting a Commission Rebate from Your Buyer’s Agent

1. Understanding Commission Rebates: Learn how commission rebates work, why they’re offered, and how they can benefit you as a buyer.

2. Negotiating the Rebate: Tips on how to discuss commission rebates with your buyer’s agent and what factors can influence the rebate amount.

3. Legal and Tax Implications: Understanding the legalities and tax implications of receiving a commission rebate in NYC.

Choosing a Real Estate Attorney with NYC Real Estate Experience

1. Why Specialization Matters: The importance of having an attorney who specializes in NYC real estate due to the unique laws and regulations.

2. Finding the Right Attorney: How to search for and select an attorney with the right experience and a good track record in NYC real estate.

3. Role of the Attorney: Detailed insight into what an attorney does in the NYC home buying process and how they can help navigate complex situations.

Being on Top of the Mortgage Loan Approval Process

1. Preparation for Application: Guidance on how to prepare for your mortgage application, including credit score management, document organization, and understanding your budget.

2. Navigating the Approval Process: Steps of the mortgage approval process, from application to receiving the offer, including how to address potential roadblocks.

3. Final Steps Before Closing: What to expect after loan approval, including final verifications, closing timeline, and preparation for the actual closing day.