Buyer’s Guide

Buyer’s Guide


Our Sales guide provides our New York City clients, who wish to buy quality New York City apartments, coops, condos or commercial properties within their budget, with quick and general guidelines to follow. The Sales Guide or Buyers Guide offers our clients with useful information about buying property. See sections on Standard Fund Requirements, General Closing Procedures, Typical Questions Answered, Suggested Mortgage Company Links and Real Estate Terms Defined.

 

Standard Fund Requirements

The Budget

      : Location, size, amenities, building type, school locations and nearness to public transportation are crucial to determining what a property will cost. We suggest that buyers review financing options to determine what amount of money they can put toward a deposit and then determine what they can afford for a monthly mortgage payment. Some people may want to see if they pre-qualify for mortgage status in order to know what budget they will be working within.

Type of Property

      : The next thing to determine would be the type of property you’d like to buy. Would you like an apartment, condominium, coop or commercial property?

Apartment Purchase

      : For apartment purchases there is no approval process, besides normal financial inquiries. Buyers are entitled to have complete control over any renovations they wish to make. Maintenance costs are the sole responsibility an owner and with this the owner gets total control over maintenance and repairs. Transferring deeds or reselling an apartment do not require approval. The size of a property can vary according to a budget and location of the property.

Condominium Purchase

      : Condo owners buy the apartment and also own a percentage of the common building areas, i.e. entrance areas, hallways and recreational areas etc. The condominium is considered real property; because of this fact, owner’s have the right to do use the property any way he/she sees fit. Owners are subject to pay property taxes which can either be escrowed into a part of a monthly mortgage payment or which are paid annually as an expense. Monthly maintenance fees are generally paid to the building’s condominium association.

Coop Purchase

      : Buying a coop is tricky, but Sommerlyn Associates’s team of qualified agents can help. When purchasing a cooperative apartment the purchaser is really purchasing shares in a cooperation. The shares correspond to the units in which you live. coop fees include a monthly mortgage payment and maintenance fees for the building. Maintenance fees are sometimes high but both mortgage payments and maintenance fees generally result in higher tax deductibles.

Estimated Fees:

Cooperative Apartment:
For Seller:
Broker Fees:

      Are typically 6%. Fees vary according to property size and amount of marketing

Attorney Fees:

      Approximately $1,500

Managing Agent:

      $450

Flip Tax:

      Consult Managing Agent

Stock Transfer Tax:

      $.05 per share

Move Out Deposit Fee:

      $1,000

New York City Transfer Tax:

      1.00% of price up to $500,000 1.425% of entire price when it exceeds $500,000

New York State Transfer Tax:

      0.4% (.004) of price

Payoff Bank Attorney:

      If seller has mortgage $30

UCC-3 Filing Fee:

      If seller has mortgage $350

For Purchaser:
Own Attorney Fee: Approximately $1500
Bank Fees/Application/Credit/Appraisal/Bank Attorney/Miscellaneous Fees:

      $1,600

Short-Term Interest:

      One month max*

Move-In Deposit:

      $1000

Managing Agent or Co-op Attorney Fee:

      $600

Lien Search:

      $300

Maintenance Adjustments:

      One month tax

Mansion Tax:

      1% of entire price when price exceeds $1,000,000

*Prorated for month of closingCondominium/Townhouse:
For Seller:
Broker Fees:

      Are typically 6%. Fees vary according to property size and amount of marketing

Attorney Fees:

      Approximately $1,500

Managing Agent:

      $450

Move Out Deposit Fee:

      $1,000

New York City Transfer Tax:

      1.00% of price up to $500,000 1.425% of entire price when it exceeds $500,000

New York State Transfer Tax:

      0.4% (.004) of price

Miscellaneous Title Company Fees:

      If seller has mortgage $200

For Purchaser:

      Approximately $1,500

Bank Fees:

      Points 2%

Application/Credit/Appraisal/Bank Attorney/Miscellaneous Fees:

      $1,600

Short-Term Interest:

      One month max*

Real Estate Tax:

      Escrows 2-6 months

Recording Fee:

      $200

Mortgage Tax:

      1.75% of mortgage on loans under $500,000 or 1.875% of entire amount on loans over $500,000

Fee Title Insurance:

      Approximately $450 per $100,000

Mortgage Title Insurance:

      Approximately $200 per $100,000

Miscellaneous Title Charges:

      $300

Managing Agents Fee:

      $250

Adjustments:
Common charges:

        One month max*

Real Estate Taxes:

        1 to 6 months

Mansion Tax:

        1% of entire price when price exceeds $1,000,000

*Prorated for month of closing
*Expect to pay eight months Real Estate Taxes. These taxes are combined between seller as an adjustment and escrow established by lender.
*Note: When purchasing condos from a sponsor, the purchaser will be required to pay New York City and New York State Transfer Taxes; see above for amounts.
*Also, buyers are required to pay sponsor’s attorney’s fee; this fee is approximately $1,000.
Multi-Family Residential/Commercial Property
For Seller:

Broker Fees:

      Are typically 6%. Fees vary according to property size and amount of marketing

Attorney Fees:

      Approximately $5,000

New York City Transfer Tax:

      1.425% of price up to $500,000 2.625% of entire price when it exceeds $500,000

New York State Transfer Tax:

      0.4% (.004) of price

Payoff Bank Attorney:

      If Seller has mortgage – $350 Miscellaneous $200 Transfer Security Deposit T.S.D.

For Purchaser:
Own Attorney Fee:

      Approximately $5,000

 

      Bank Fees: Points 2%>

Application/Credit/Appraisal/Bank Attorney/Miscellaneous Fees:

      $5,000-$10,000

Short-Term Interest:

      One month max*

Mortgage Tax:

      2.75% of entire amount on loans over $500,000

Real Estate Tax:

      Escrows 2-6 months

Fee Title Insurance:

      Approximately $450 per $100,000

Mortgage Title Insurance:

      Approximately $200 per $100,000

Miscellaneous Title Charges:

      $1,000

Adjustments:

    Rents* T.B.D. Real Estate Taxes 1-6 months *Prorated for month of closing