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| Time Line Guide for Purchasing |
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Typical Time Frame from the time an apartment is found, to the time an apartment closes: 3-5 mos. Here are the steps you'll take:
Seek pre-approval for a mortgage:
Typical time frame: 1 - 2 days
You must know how much you can spend before you spend it. Condominium apartments require at least 10% down; cooperative apartments generally require at least 25% down. However, every building is different. 15% of Manhattan's buildings are condominium buildings and the other 85% are cooperatives.
Find an apartment:
Typical time frame: 3-6 months
Depending on what you are looking for, the length of your search will vary. The average person sees 20-25 apartments before deciding on one. Internet-savvy buyers save time by doing their 'homework' before their search. The average number of apartments viewed before buying by our internet buyers is 4-5.
Negotiate on the Apartment:
Typical time frame: 3 days to 2 weeks
Everything is negotiable so inquire about assessments, fixtures, window replacements, air conditioners, rugs, floors, curtains, appliances, working fireplaces, washer dryers, etc. Apartments are delivered 'swept clean'.
Sign a Contract:
Typical time frame: 1-3 weeks
Generally, in a sales transaction, a New York City real estate attorney represents each buyer and seller. The seller's attorney draws up the contract for the buyer's attorney; the buyer's attorney performs 'due diligence,' i.e., reading minutes, financial statements of buildings, etc.The buyers sign the contract and forward the contract with a 10% deposit; the sellers execute the contract. Possible contingencies: Financing, Board Approval, closing dates. (See our list of closing costs associated with buying and selling condominiums and cooperatives.) The quicker the contract can be signed, the better. A contract is binding only after both parties sign it.
Apply for a mortgage:
Receive Commitment Letter from Lender.
Typical time frame: 6 - 9 weeks
Mortgage applications cannot be processed without an executed contract. If an apartment is being financed, the board requires a commitment letter from a lender. These letters are generally the last items to complete a board package/condo application.
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