Buyers

As we begin working together you'll have lots of questions. Questions like 'Why are maintenance charges in a co-op so high? What are closing costs for a townhouse? What's the difference between a co-op and a condo anyway? How's the market?' At our first meeting I'll answer your questions and we will discuss what type of property fits best with your needs and budget. If you're planning to live in the space for a long time your needs will be different than if you're planning to sell after a few years. By understanding your requirements and plans I'm in a better position to help you find your new home.

We'll also discuss the other players on your team. If you're financing you'll need to speak with a mortgage professional (see step 2). You'll also need to engage an attorney. For this you'll want to make sure you choose a real estate attorney who has experience in closing the type of property you plan to purchase. You typically won't need your attorney until you have an accepted offer but it will make your offer stronger if you choose one now. It will also give you peace of mind when you have an accepted offer because you won't be scrambling to choose one. There are attorneys that I work with regularly and I can provide you with their details.

At this meeting, I'll also provide you with three forms. The New York State Disclosure Form states I represent you as the buyer and explains what that means in a legal sense. In some instances I may become a dual agent designated to represent you and we will discuss the instances in which that would happen. The second form is the New York State Housing and Anti-Discrimination Form. This form explains my obligations to you in reference to the Fair Housing Laws, and your rights under those laws. Both of these forms are required by the State of New York.

I will also provide you with a Buyer Representation Agreement. This agreement outlines the duties I will perform for you during your search for a new home, so that you know what to expect. As a buyer, you receive a number of benefits from using an agent, sometimes at no cost. Real estate agents work on a commission basis, and commissions are fully negotiable. Buyer’s agents can accept commission payments from the seller, the buyer, or both. The Buyer Representation Agreement outlines the cost for my services, which are paid at the time of closing. Because all of the work is done prior to receiving any payment, I work only with buyers on an exclusive basis so that I can best serve them.

You know how much money you make but are you familiar with the cost of ownership? This is the step where you find out what you qualify for, the associated monthly and closing costs, and what you may need to work on in anticipation of a purchase. A licensed mortgage banker and/or broker will help you with this process.

Rates are usually within a certain range and don't typically vary much from bank to bank other lending criteria can. Some banks will not lend in particular buildings for a variety of reasons. Sometimes they've already loaned to too many existing owners in the building and they won't do another because they need to keep their lender concentration below a certain level. Another reason could be that there are too many units still owned by the sponsor or too many being rented out by owners. At this stage you don't know which property you will ultimately fall in love with and the specific characteristics of that building so although you receive a prequalification from one lender you may end up using a different one later. You still need a letter now.

You don't want to waste time looking at property that is above your budget. Your mortgage professional will be able to run different scenarios based on your income, assets, and the current interest rate to advise you of the payments and required down payment at different levels of borrowing. From these numbers, you'll know what your budget is and what the limit is for common charges and taxes or maintenance charges as well as the cash you will need at closing.

Another important reason to obtain the preapproval letter now is that you will need to present this letter when making an offer. Obtaining it now means you're ready when you find something. If the market is moving quickly this is especially important. If there are multiple offers, submitting yours in a timely manner with a preapproval is essential. Finally, there may be a blip on your credit report that you're unaware of, or an incorrect assumption about your purchase scenario or costs. Learning about it early allows you time to try and remedy it and work things out before finding your dream home.

There is no shortage of listing sites. Individual agency websites, paid advertising sites, and sites that group listing details in one easy-to-use place can all be used to gather information. The easiest way for us to collaborate is to use the Compass.com website. As a real estate technology company Compass pulls listing data from a number of sources. It uses data from all members of the Real Estate Board of New York and their database. It also pulls information from MLS system in Brooklyn.

An advantage to using the Compass website as the primary source of identifying properties is that they can easily be placed into a Collection. This tool enables us to keep track of what you'd like to see, or have seen already. I can set up a search for you, or you can set one up yourself. Any search can be linked to the Collection, and new search results can be added or removed at any time by any person who has access to the Collection. You can make comments or ask questions right on each listing. You can also request appointments right from the Collection. That streamlines communications so that as time goes on we can easily reference what you like or didn't like about a property, and track the evolution of your home search.

Some real estate firms also feed listings to sites like Streeteasy, Trulia and Zillow. These sites make money by charging agents to advertise themselves. An agent can purchase the designation "Neighborhood Expert" or "Building Expert" without ever having done a deal in that particular neighborhood or building. An agent can also purchase a zip code so that they are advertised next to the listing of another agent. That can make it appear that they are in some way affiliated with the listing, although there is no requirement that they know anything about the property. While these sites do have some interesting tools, they are not the most reliable source of listing data.
When you've identified the properties you'd like to see in person you can request an appointment through the Collection or email me with the day(s) and time(s) that you're available to see it, or let me know if you plan to attend the open house. This will help expedite our viewings.

While collaborations about identifying listings will be mostly online we'll also be speaking regularly and visiting property together.

One of the best ways to see properties, especially in the beginning of your search, is to visit open houses. These are typically held on Sundays. By attending an open house, you can get a sense for the overall market and make the most efficient use of your time by seeing multiple properties in one day.

We'll start by attending a few open houses together, either in person or via video chat, so that I can provide guidance on the type of things you'll want to look for while in the space. Your primary purpose while visiting property is always to try to imagine how you would live in the space and if it feels right to you. Of course you may have questions. Some of the most common are 'What's included in the common charges or maintenance?' 'Is there a tax abatement?' 'Can a washer/dryer be put in?' 'How old is the roof?' These are all things I will research independently when you decide that you like a space so don't feel that you need to ask any questions at all.

I can't be with you for every open house that you attend but I will coach you so when I'm not there you'll know what to look for and what to ask (if anything). At each open house there will be a sign-in sheet where the seller's agent asks you to write your name and contact details. Most sign-in sheets will also ask if you're working with a broker. You should sign in with your name and then enter my name as your broker, using my phone number and email address. If you use your own contact details it is likely that you will be contacted by each broker from the open houses you visit, which can take up a lot of your time. If you decide to make an offer on that property later, the listing agent will recognize me as your representative at the stage where I become most valuable to you, when making an offer.

There are two instances when individual appointments (see step 5) will be preferable to open houses. One is the luxury market where apartments and townhouses are often only shown by appointment. The other is in new construction because the representation policies for new constructions or conversions are usually different than resales. Most developers require me (your buyer's broker) to be present at your initial visit.

As you narrow down your search and decide that you'd like more of your Sundays back to enjoy other things in life it's likely that we will start seeing listings more often by making individual appointments. These are most likely to be during the week in the evenings. I will always schedule these appointments for us and attend most appointments with you, either in person or via video chat.

For some properties, most likely larger apartments and townhomes where there are tenants or the sellers have children in residence, it may be difficult to obtain evening appointments. For these properties evening appointments may only be offered for second visits, once you have attended an open house and developed an interest in a given property. As such, we are likely to use a combination of open houses and appointments.

Individual appointments are also the best way to see new construction projects. There are a lot of questions specific to new construction and some additional considerations. It is typically easier to see the specific unit(s) that you're interested in and get answers to questions during an individual appointment. In addition, the representation policies for new constructions are usually different from resales and most developers require me, as your broker, to be present at your initial visit.

As we see more listings and attend open houses you will think of new questions and develop a more specific list of priorities. I'm always available to discuss your impressions, ask questions on your behalf, research a building that you like and answer any questions you have along the way. At this stage, you'll be attending most open houses on your own, and I'll still be setting up the individual appointments and attending those with you. No matter how you see the apartment we will maintain regular contact. We'll communicate in person, via phone, email, and adding comments to the Collection. The dialogue will be open and ongoing.

One of the most exciting parts of the purchase process is when you find something that you like and decide you want to make an offer. When we reach this stage I can provide you with information on previous sales in the building, and nearby. I will also check the previous sale(s) of the property, and help develop a negotiating strategy based on what you would like to pay for the property and the current market conditions.

Offers have two components - price and terms. Every transaction is a little different. If you make a strong monetary offer but want to delay closing for some reason (bonus money coming in to make more of a down payment, lease expiration, etc.) the seller may like your number but not your terms. Or perhaps the seller wants to close right away but may need the option to stay in the home after closing (post closing possession). These are all things that we discuss to structure your offer to make it as strong as possible based on the conditions.

Once we have decided on the price and terms you'd like you'll complete the offer form, which gives the seller a snapshot of your qualifications. I will submit the offer on your behalf together with the preapproval letter from your mortgage broker or banker.

There are many ways that sellers and the brokers who represent them handle offers and negotiations. Each negotiation is a little different. If yours is the only offer they may negotiate individually. If there are multiple offers there may be a call for "highest and best" or they may just decide to take the highest offer initially presented. No matter how the negotiations evolve I will be there to develop a strategy, advise you through every step, and handle communication until we reach a price and terms that are acceptable to you and the seller.

Hopefully the building you've fallen in love with has great financials, fantastic neighbors, solid construction, and good maintenance practices. Or the house you love is free of violations, termite damage, and has a new roof. The beauty is that before you sign the contract and put any money down you get to find out for yourself.

We'll start by doing a home inspection where you can find out not only if everything is in good working order in your space, but also the building systems as a whole. If you are purchasing a co-op or condo you'll also review the building financials with your attorney, take a look through the offering plan and, if available, read the board minutes so that you really know what's going on in the building. If everything looks good we'll move on to the next step, signing the contract.

The due diligence looks great. They got rid of the exotic pet-keeper who would have been your next door neighbor years ago, and the roof is only two years old. Or something like that. Now you're ready to sign the contract and put down the deposit. You'll speak or meet with your lawyer and give them a check, typically for 10% of the purchase price. This is held in an escrow account until closing. Once you've signed, the seller's attorney has the seller sign and you are officially in contract. You can breathe a sigh of relief before moving on to your mortgage paperwork.

Now you can really get the paperwork started. If you're applying for a mortgage you'll provide your mortgage broker or banker with the fully executed contract. They will start to process your paperwork and do their own research on the building or house. Just like you had to be qualified at the beginning of this process, the building or house too must be eligible for financing.

The bank is going to need your tax returns, your bank statements, your pay stubs, and more. If you're purchasing a co-op or condo we'll meet to go over the board application and discuss the documents that will be required for that. There will be many; it will feel invasive but it is unavoidable. Rest assured all your future neighbors have done the same thing. I'm here to make it as painless as possible and present the documents in the best possible way to that the process is as smooth as it can be.

In a co-op once the application has been reviewed you may be invited for any interview. We'll review the most common questions and what to expect.

In a condo once the application has been reviewed you may be invited for an interview, or they may simply issue a waiver of the right of first refusal. That means that they have chosen not to exercise their right to purchase the unit and you can continue to move forward to closing.

We're at the home stretch! The bank still likes you and now they like the building or townhouse too. Your future neighbors like you, the bank underwriter likes your paperwork, you've been approved by the board and cleared to close. Now you get to see your soon-to-be home once again. We're looking to make sure that everything is in the same condition it was when you last saw it (just empty if it's a resale and there's no post-closing possession, or with punch list items complete if it's new construction). If something has changed or it's not what it was, or is supposed to be according to the contract I'll help you document it and review with your attorney how to remedy the situation. Fortunately, this seldom happens and things are typically the same as they were when you signed the contract.

Welcome to your closing! This may be held virtually, or in person. You can also choose to have your attorney close by power of attorney and not attend at all. Regardless of the specifics here's what happens.

Your attorney is there. If you're financing the bank is there with all the documents. The seller's attorney is there. The seller and their agent may also be there. If you're purchasing a house or a condo the title closer has hopefully arrived as well. If you're purchasing a co-op there will be a representative of the co-op or managing agent there as well. If someone essential is missing, don't worry, they're all coming.

About 15 minutes after the start: If it's in person your attorney will have you signing documents and should be giving you a brief explanation of each one. They’re making a pile for someone to make copies so you will have your own copies of everything. If it is a virtual closing your attorney will be speaking with the seller's attorney, and the bank, reviewing everything to make sure everything was signed as it should be.

About 30 minutes after the start: If it's in person and your bank attorney arrived on time you're well into signing your mortgage documents now. The most important, as your attorney will tell you, is the note. The terms need to be as they were in your commitment letter. If something is not as it should be the attorneys will work together to make it as it needs to be. Don't look too closely at the amortization table. If you do just take a few deep breaths.

About 45 minutes after the start: By now your hand is cramping (if in person) and you're excited. You're almost to the home stretch. Your attorney, the bank attorney, the seller's attorney, and the title closer or co-op representative are going over the final numbers. Checks are starting to be distributed and figures double checked.

About an hour after the start: This is the home stretch. If the bank is waiting for the wire to hit everyone is relaxed and telling stories about their previous deals or closings and things that went wrong and how it got fixed. If the wire has hit you may be waiting for someone to make photocopies. If your closing is virtual it's long over by now. In person, you'll be given keys, if virtual arrangements will be made for you to receive the keys. You'll expect champagne and confetti but it won't be there because nobody likes their conference room to get that messy. So yes, all you have after this whole long process is a small closing gift from me and a new home to call your own. Congratulations!