Buyer’s GUIDE

Standard Information

In New York City’s diverse real estate market, buying a home can be a particularly overwhelming experience. This overview details all the basic information, from properties to fees, that buyers should be familiar with.

Standard Information

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 prequalify 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 Century 21 Metropolitan’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:
    Broker’s Fee: Typically 6%
    Buyer’s Attorney: $1700+
    Credit Report Fee: $50 – $100/applicant
    Lead Based Paint Disclosure Fee: 0 – $50
    Move-In Deposit: $500 – $1,000 (usually refundable if no damage)
    Mansion Tax: 1% of entire purchase price where price is $1,000,000 or more.MORTGAGE CLOSING COSTSNYC Mortgage Tax:
    – If mortgage < $500,000: 1.80% – If mortgage > $500,000+ on 1-3 family residential dwelling: 1.925%
    – Mortgage on all other property over $500,000: 2.80%
    Bank Fees: $350-$750
    Application Fee: $350
    Processing Fee: $330
    Appraisal Fee: $300-$1,500 (depending on sales price)
    Bank Attorney: $650
    Lien Search: $250-$350
    UCC-1 Filing: $100
    Recognition Agreement Fee: $200+ADDITIONAL REAL ESTATE EXPENSES
    – Miscellaneous Co-op Charges: Vary by building
    – Maintenance Adjustment: Pro-rated for the month of closing
    – Short Term Interest: Equal to interest for balance of month in which you close
  • Condominium/Townhouse:
    Buyer’s Attorney: $1700+
    Application Fee: $350
    Processing Fee: $330
    Credit Report Fee: $50-$100/applicant
    Lead Paint Based Disclosure Fee: $0-$50
    Move-in Deposit: $500-$1,000 (usually refundable if no damage)
    Mansion Tax (if prices over $1 million): 1% of purchase price
    Real Estate Tax Escrow: 2 to 6 months
    Recording Fees: $250-$750
    Municipal Search: $350-$500
    Fee Title Insurance: approximately 0.5% of purchase priceMORTGAGE ASSOCIATED FEES (If Applicable)
    Origination, Points: 0-3% of loan
    Application, Credit Check: $500+
    Appraisal Fee: $300-$1,500 (depending on sales price)
    Bank Fee: $750
    Bank Attorney: $650
    Mortgage Tax: 0.8%
    Mortgage Title Insurance: Approx. $130 per $100,000
    Of Mortgage amount NYC Mortgage Tax:
    -If mortgage <$500,000: 1.80% -If Mortgage >$500,000+ on 1-3 family residential dwelling: 1.925%
    -Mortgage on all other property over $500,000.00: 2.80%

    ADDITIONAL REAL ESTATE EXPENSES
    – Common Charge Adjustment: Pro-rated for the month of closing
    – Real Estate Tax Adjustment: Pro-rated depending on when the tax is collected
    – Miscellaneous Condominium Charges: Vary by building
    – Short Term Interest: Equal to interest for balance of month in which you close

    NEW DEVELOPMENT DIRECT PURCHASES FROM SPONSOR
    For new development condominiums, the purchaser generally pays the NY and NYC
    Transfer Taxes normally paid by the Seller.