Buying a Condo

Where are you looking? Condo closing costs are significantly higher than co-ops as they are real property. If you are buying new dev, you can also expect to pay the transfer taxes and developers Attorney fees. You do not need an agent, but if you are unfamiliar with the process, having one can be very helpful.

As stated in another thread, I have two condos on the upper east side that I am selling. If this area interests you, drop me an email at miscusenyapple@yahoo.com I am not a broker.

There is no board approval with buying a condo. Condo boards will require sign-off on your renovations. Whether W/D is allowed is really up to whether or not the building's plumbing can handle it.

A broker can theoretically help you negotiate, but remember, they are getting a fee and their interest is to get a deal done.

Re: timing, condo boards typically have the right of first refusal on any sale. That means the seller gives the board a copy of the contract, along with any other info about the buyer the board "may reasonably require." The board then has a fixed period (e.g. 30 or 45 days) in which to waive its right to buy on the same terms as the contract. I don't know how often boards actually exercise that right, or how often they approach that time limit before deciding not to.

I'm in the market for a condo and I am not using a broker. A broker may be helpful in finding apartments (possibly even before they are listed) and guiding you in pricing, but with all though tools available on the internet you should be able to figure things out on your own. I approached a few brokers in Open Houses and inquired about using them as buyer's brokers, and once I showed them all the research that I've done and all the listings that I found they tell me that they didn't have much else for me (I'm searching in Williamsburg). Also, you should be comfortable doing your own negotiating. I've put in offers for 3 different condos in the past year, and walked away. I was comfortable putting in a lowball offer and comfortable to just say no. It really isn't an uncomfortable process. All 3 times I was treated with respect.

So be prepared to search for an apartment, schedule your own appointments, figure out comparables and recent selling prices, negotiate and find financing.

The timeline for purchasing a condo varies. For a new condo development they need to have their Certificate of Occupancy and have at least 50% under contract for banks to finance. So even though you sign a contract it may take months before closings commence. If the condo already has a CO and financing is available for the building then the time line is as follows: Negotiate a price (days), negotiate a contract (weeks), secure financing including inspections and appraisals (weeks), then schedule closing (weeks). In established condos there is a board approval process but it is no where near the same kind of process as a coop.

Thanks everyone for all your help! It definitely makes me more comfortable about doing this on my own….may be stressful at times but hopefully well worth it.
gcndo – I’m looking in UWS, thanks for the offer….I’ll let you know if I decide to switch over to the eastside. =)

Thanks everyone for all your help! It definitely makes me more comfortable about doing this on my own….may be stressful at times but hopefully well worth it.
gcndo – I’m looking in UWS, thanks for the offer….I’ll let you know if I decide to switch over to the eastside. =)

Thanks everyone for all your help! It definitely makes me more comfortable about doing this on my own….may be stressful at times but hopefully well worth it.
gcndo – I’m looking in UWS, thanks for the offer….I’ll let you know if I decide to switch over to the eastside. =)

sorry, it's posting it automatically multiple times...streeteasy, please help?

Lookpied, are you looking at new construction or older lofts?

If you have time to go to open houses and search listings, you will find that you can do a better job than any broker can do for you. Use the fact that you have no broker as a negotiating point. You are saving the buyer probably 2-3%.

If you find a unit you like, research the building. Check Acris for history and closing comparables in the same building, etc, etc.

LoftyDreams,
We've mainly been looking at new construction simply because that's the majority in Williamsburg. There is not much resale and they tend to be more expensive or not quite in the location we like.

three words to be aware of:
Mortgage recording tax

NYCbuyer,

Lots of good advice above. To address your specific qs:

* I don't think you need a broker as long as you're willing to do the legwork yourself (negotiation, research, comps, etc.). And as has been said, having someone else do that is not quite free.

* Process is similar, minus the whole board thing. The bidding process is much less formal as well. It may go slightly faster with a condo, simply because you don't have to wait for the board to find a time to meet and deliberate.

* Financing can be different, so you should check with your lender, but it shouldn't be drastic. Many condos require less of a downpayment, but I don't think many people are getting away with 10% these days, and I'd suggest you put more down anyway. There is also a mortgage recording tax with condos, but you may be able to get sponsor/seller to cover this.

* In general, much more freedom to renovate, but each condo board will have its bylaws, so you have to go over them carefully so you know what to expect.

Good luck!

NYCbuyer2009, what size condo are you looking for on the UWS?

I'm looking at appx 800SF, established condos as it could be difficult to get financing for new developments/conversions.