The Buying Process

Buying an apartment in Manhattan can be a daunting task, but with the right knowledgeable and personable broker, the experience can become fun, enlightening and rewarding. Here are the steps you should essentially expect:

1. Choose a Real Estate Agent - Ask your family or friends for a personal referral. If no one can provide a name, then call several agents by looking at listings in the specific area where you’d like to live. They are usually the most knowledgeable about their respective areas. Choose the agent you feel the most comfortable with and work with that agent exclusively. Your loyalty to your agent avoids confusion and duplication of effort while securing a partnership that works on your behalf no matter how long it takes. At BARAK Realty, unlike other realty companies, you’ll have the services of the whole team of brokers as well as the agent you choose. Your agent will guide you through the entire process.
2. Talk to a Mortgage Broker - Your agent at BARAK can recommend someone. Before looking at properties, you should get an idea of what you can afford. That will make the process less time-consuming for you. Based on your financial profile, a mortgage broker can quickly determine what you can spend on your new property. There is no cost or obligation to you for this service until you actually apply for a loan.
3. Look at Properties - Most buyers look at an average of 25-35 properties prior to making their purchase. Your BARAK broker will schedule as many appointments as possible at places that meet your criteria. Keep in mind that some apartments have limited showing times, and that the best properties get snatched quickly. Try to be as flexible as possible.
4. Make an Offer - Once your broker finds you the right property, get ready for the thrill of buying. Offers are made verbally in New York City. A bid or offer will be placed through your BARAK agent to the seller or the listing agent. The seller may make a “counter offer” and begin a negotiation process until an agreement is reached about the price and terms. Your BARAK agent will report back to you at every stage.
5. Retain an Attorney - Brokers in New York City do not prepare contracts. You must hire a real estate attorney. It is important to hire an experienced attorney who specializes in the laws of New York City real estate. Your attorney will review the contract, the property financial condition, the board minutes and the building’s by-laws.
6. Sign the Contract - Once your attorney concludes that the contracts and property conditions are satisfactory, you will be ready to sign the contract. At this point, you will generally deposit 10% of the sales price into the sellers’ attorney escrow account. Remember that until the seller has counter-signed the contract, he/she is still free to entertain and accept other offers.
7. Gather your Financial Documents and References - For both your loan application and your board application, you will need to supply financial qualifications. Most common are 2-3 years of tax returns, bank and investment statements, business references, and personal reference letters. Your BARAK agent will help you though the process.
8. Obtain Financing - Your BARAK agent will help you to supply your financial information as required by your bank. Your bank will review your qualifications, appraise the property, and issue a “bank commitment letter.”
9. Submit Board Package - Once your package has been completed, a BARAK Realty manager will review it prior to submission. Only then will your package be submitted for board review. Expect review time to last 2-6 weeks.
10. Meet the Board of Directors (coop only) - The managing agent will schedule an interview for you to meet the board. Some boards meet only once a month, so try to make yourself available when your BARAK agent tells you that the time has come. This board interview is a serious matter and should be treated as such. You should arrive promptly and dress appropriately. Answer only the questions you are asked without volunteering extra information. BARAK will train you and guide you through this process. Board decisions can be given immediately or take up to 1-week from the interview date.
11. Schedule a Closing - Once you receive your board approval, you are ready to “close.” Typical time from board approval to closing is 10-14 days to account for late paperwork and filings, and the need to coordinate everybody’s schedule. Make sure to get the exact check information from your attorney --and give yourself enough time to obtain certified or bank checks. When it’s over, we’ll celebrate. Don’t forget to pick up your keys!

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