Key New York Real Estate Corp.

What is the difference between a Coop and a Condo?

Owning a Condo is like owning a home, you take title to an actual piece of real estate or real property. Each owner pays property taxes to the city and common charges to the Board of Managers for their individual units. Real estate taxes are tax deductible; however, common charges are not. Traditionally, Condos did not have an approval process, however in recent years have implemented an application process. Most Condo policies towards subletting are considerably more lenient than Coop policies. By allowing the right to sublet, Condominiums are often the best choice for investors.

Cooperatives or Coops comprise approximately 75-80% of New York City’s real estate market. When you purchase in a Coop you are really purchasing shares of stock in the corporation that owns the building. That corporation will then issue you a Proprietary lease giving you the right to occupy the apartment. As a shareholder you will pay a monthly maintenance. Maintenance covers the upkeep of common areas, staff salaries, managing agent fees, as well as payment of real estate taxes and interest on any underlying building mortgage.

Should I work with more than one agent at a time?

Working with one agent that you feel comfortable with will save you time. In Manhattan, all of the available listings are shared by all brokers. As a result your Key agent can schedule an appointment and accompany you to see any property in the city that matches your criteria. All of the agents at Key New York are familiar with the process of buying an apartment and with all of the different and unique neighborhoods.

How long should it take to find my dream home?

The average first-time buyer will find a home in one to two months. However, since it is the job of your Key New York agent to match your needs with the available inventory, don’t be surprised if you find something sooner.

What will I need to present to a Coop Board?

Generally, Coop Boards require a purchase application, a financial statement with back-up documentation, letters of personal reference, financial letters of reference, a letter from a present landlord, employment verification, business letters of reference, copies of your last two years tax returns and permission to run a credit check.

Will I need to hire a real estate attorney?

YES. IN New York both the buyer and seller need to be represented by a real estate attorney. If you don not have one, your key New York agent will recommend several to you. Whether you use your own or one of the several with whom Key New York have developed trusting relationships with. The most important factor is that the attorney be familiar with the process of buying a Coop or Condo in Manhattan.

What questions should I ask about schools?

You want to know how the state ranks the school, test scores, sports programs gifted and special programs. You will also need to know what school district the neighborhood you are looking in is assigned to. The city is divided into 32 districts, each of which has charge of elementary and middle schools within its boundaries. Each district makes the student assignment policy for the schools it governs.

When should I begin looking into financing?

Right now!! Frequently, sellers and their representatives will not show you an apartment until they know that you have been pre-approved for a mortgage. In the rapidly moving sales market, it’s best to be prepared ahead of time. If you would like the names of several Mortgage Professionals that Key New York has developed working relationships with your agent can provide them for you.

Can I renovate a Coop?

Each Coop Board has their own policies when it comes to renovations by a shareholder. Generally speaking, you will need to fill out an “alteration agreement” which will describe the exact work that is being done. The Board will review the agreement prior to giving the ok to proceed.

How much money do I need to put down?

When purchasing a condominium you will be required to put down a minimum of 10% of the purchase price. When purchasing a Coop the requirements vary. Normally, the coop board will require a minimum of 20% of the purchase price as a down payment. However there are many coops that require more. If this is a concern, please have your Key sales agent speak to the building’s managing agent to get the exact percentage of the required down payment.

How long should I expect it to take from accepted offer to signed contracts?

Typically the process should take 7-10days. Your Key New York sales agent will be in constant communication with all of the participants of the deal to assure that things progress and to handle any issues that could potentially arise

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