Whether you are interested in looking at New York apartments for sale in Manhattan as a first time Real Estate buyer, or you are aiming to move to a larger space, it is understandable that you may have unanswered questions. Some points to consider include whether to shop for apartments for sale in Manhattan with a New York Real Estate Broker, or on your own, focus on pre war co-ops as opposed to new development condos in New York, and when is the right time to gather the financial records necessary to submit with a board application. The following questions are the ones we are asked on a regular basis:
Q) "How much does it cost to shop for New York apartments for sale in Manhattan with a Buyer's Specialized Real Estate Broker?"
A) It costs the buyer absolutely nothing... The seller is the one who pays the commission at the time of closing. Even if a buyer looks on their own, and negotiates directly with the seller's Real Estate Agent, the seller is contractually obligated by law to pay the entire commission.
Q) "Since New York Real Estate Agents work with buyers for free, how and when do they get paid?"
A) Upon the purchase of a New York apartment, the seller pays the entire commission to the "Seller's" Real Estate Broker. The amount is usually 6% of the agreed-upon purchase price of the apartment. This amount is then shared between the Seller's Broker and the Buyer's Broker in what is known as a "co-broke" agreement.
Q) "Can I save money if I look at New York apartments for sale in Manhattan if I look on my own, without a broker?"
A) The short answer is no... a commission is always paid by the seller to their Seller's Broker whenever apartments in NYC are advertised and sold by a Seller's Broker. Since the sellers almost always have a broker working for them, as a buyer, it is more likely to cost you time and money, if you do not have your own New York Real Estate Agent.
Q) "How can I tell if the Broker represents the seller?"
A) When you search ads in the NY Times, online, etc., to view New York apartments for sale in Manhattan, those ads have been placed by the Seller's Real Estate Broker. keep in mind that while the Seller's Broker will be friendly, accommodating and cordial, they are always working for the seller, with the seller's best interests in mind, not yours.
Q) “What is the difference between the various types of New York apartments for sale in Manhattan,including condominiums, co-ops, and cond-ops?”
A) When you buy a condo in New York City (Manhattan), you are purchasing your own property, complete with a deed and a portion of common space in the building. Investors prefer condos in New York City because they offer considerably more flexibility to sublet. Condos in New York City generally require proof that one has obtained adequate financing and can afford the monthly common charges. When you buy a coop, which is short for co-operative housing project, you are actually purchasing shares in a corporation. Most co-ops do not own the land that the building occupies, but instead has a land lease. A condop is a coop with much more lenient ownership requirements set forth by the board. This type of New York apartment ownership is much less common. With all coop and condop ownership, including pre-war coops in Manhattan, you have a leasehold interest in your apartment, but you don't actually own your unit. In all cases, a board package will have to be assembled, carefully prepared and submitted for review by the building's board before a purchase can take place.
Q)"What is a pre-war apartment?"
A) A pre-war apartment refers to a New York apartment that is in a building that was built before World War Two. Most pre-war New York apartments for sale in Manhattan were originally set up as coops, and include the majority of upscale New York City addresses. Residents who purchase pre-war co-ops in Manhattan do so in order to live in a white-glove building that also maintains a certain level of exclusivity. Pre-war co-ops typically impose strict guidelines that include a thorough background check, minimum income requirements and sometimes an all-cash purchase. Some pre-war coops require prospective buyers to show monthly earnings equal to or more than four times their monthly expenditures, including mortgage, monthly maintenance, outstanding loans, alimony and child support payments. All of this can take several months before an in-person interview is granted by the co-op board.
Q)"Should one approach buying a New York apartment based strictly as an investment, or is it okay to let emotions influence the decision?"
A)Purchasing a home is one of the biggest financial investments anybody will make during his or her lifetime. This is especially true when considering that New York apartments for sale in Manhattan, and some of the surrounding boroughs, sell for more than $1,000,000. The process often stirs up conflicting emotions, which is why it is beneficial for buyers to have a New York Real Estate Broker who specializes in representing buyers. A good Broker/Agent will save you time, and recognize what moves you emotionally, to help you focus your New York apartment search on the criteria that is most important to you on an emotional and financial level. At the same time, your Buyer's Real Estate Agent will be protecting you from the pitfalls associated with negotiating and purchasing a New York apartment.
Q) "With so much info out there, why not try to go it alone and get a Real Estate Agent when I’m ready to bid on a New York apartment?"
A) It is important to keep in mind that the New York Real Estate industry is a highly specialized one. Similar to brokers who invest in stocks, bonds and commodities, New York Real Estate Agents have tools that are not available to the general public. If you had an income tax question, would you attempt to deal with it without the help of a CPA? If you face a major legal situation, would you attempt to handle it without a qualified attorney? Even attorneys know it is foolish to represent themselves, and most seek their own counsel when facing their own legal situation. Because there are so many risks associated with making an investment in Real Estate, it is unwise to start the process without proper representation, protection and advice.
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Hire Real Estate Brokers To Get Them The Highest Price Possible... You Should Have Your Own Buyer's Specialized
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It is important to understand that when a buyer looks at New York apartments for sale in Manhattan, the units found on the Internet, in the NY Times, etc., are being advertised by the Seller's Broker.The Seller's Real Estate Broker is contractually obligated by New York Real Estate Law to work for and negotiate on the behalf of the seller in order to sell their property for as much money, and to make the best deal possible for the seller, not you, the buyer.
Note: As of January 1, 2011, the Department of State made it mandatory for Licensed New York Real Estate Brokers and Agents to properly disclose their role as either the Seller's or Buyer's representative. For more information about these new disclosure rules, Click Here to visit the Department of State (DOS).