Timeline Guide for Purchasing
Here are the steps you'll take to find and close the apartment of your dreams:
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 - Industry Standard
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. However, it is absolutely possible to fly in and find your apartment over a weekend or a 2-3 day period while seeing 25 apartments.
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 does 'due diligence'-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.
Complete a Board Package or Condominium Application
Typical time frame: 3 - 9 weeks
Cooperative apartment buildings require board approval before a closing can take place. Condominiums require an information packet to be completed before a closing can take place. In order to review a potential purchaser, the Board of Directors for a Coop demand extensive information in a Board Package. Most Boards request the following information: full financial disclosure (net worth) with supporting documentation, employment history, current salary, personal and business references, tax returns for the previous 3 years, credit history, etc. If a purchaser cannot or does not want to supply this information, he/she should buy a condominium. Board packages/Condo applications are given to potential purchasers to fill out after a contract has been executed. If there is no financing, it usually takes about 2-4 weeks to gather the information for the board condominium application.
Submit Board Package or Condo Application for the managing agent's review
Typical time frame: 1-4 weeks
After the buyer's real estate agent completes the Board package, he/she will forward the package to the managing agent of the building. The managing agent will inspect the package to ensure it is complete. The package will then be forwarded to the Board of Director's of the Coop. After the Board reviews the package, they will decide if they would like to meet the potential purchaser.
Meet the Co-op Board for an Interview
Typical time frame: 30 minutes - 1 hour
Coop Boards typically meet once a month, and some Boards do not meet in August. Every Board is different, but generally a Board Meeting will be held in the evening on a weeknight. Although a board interview may be granted, this does not guarantee board approval.
Receive Approval from Board
Typical time frame: 1 day - 1 week after board interview
The managing agent will generally alert the seller's broker whether a potential purchaser has passed the board.
Schedule a Closing
Typical time frame: 1-2 weeks after board approval
Managing agents generally set the date for closings, and lawyers for sellers and buyers coordinate with the appropriate banks on available dates and times.
Typical Time Frame from the time an apartment is found, to the time an apartment closes: 3-5 mos.
