Seller’s Guide

STANDARD INFORMATION

Price: Correctly and the appraisal and price of your home are crucial to attract and secure buyers. At InRealEstate, we train our staff to accurately price apartments with benchmarking and robust data to support their recommendations. We also recommend that you enlist the services of an appraiser to ensure that you receive the highest possible price for your property. An InRealEstate agent can help you find an accredited and experienced evaluator to evaluate your property.

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Property Type: Due to New York's vibrant real estate market, the process of selling your home will vary depending on the type of property you own. For most co-ops and condominiums, you'll need to contact your executive officer to find out the rules and regulations governing the sale of a property in your building.

 

Documentation:

The apartments, first and foremost the most attractive, can be sold quickly in New York. 

To ensure your property leaves the marketplace in a timely manner, prepare all documentation before entering the marketplace. Get your building's financial statements, questionnaire, application, common fee schedule, and maintenance increases from the Records Management Officer and keep them handy. 

This will avoid wasting time when the purchaser is interested.

 

Direction and projections: In real estate, initial impressions are everything! To make sure to sell your apartment for the optimum selling price quickly, make sure that your apartment is in the best possible condition showing. When a purchaser sees a property, he should be able to imagine living there. InRealEstate agents are there to assist vendors in the process of maximizing the aesthetics of their property. Nevertheless, it is never too early to start thinking about the process of directing.

 

Here are some suggestions to promote the attractiveness of your apartment when shoppers come to see it:

Use the illumination to display with affection the best rooms and the best angles of your apartment.

Organize the space and keep it clean.

Remove large pieces of furniture that make your apartment smaller.

Investment in new devices. Everybody's into stainless steel.

Paint walls, make minor repairs, and rehabilitate floors as required.

Repair damaged items.

Clean mirrors.

Take photos of the test results. InRealEstate agent can help you photograph your house and can even refer you to a talented photographer to help you.

 

Building:

The auction process is often just as exciting and intense a time for salespeople as is the case when you must ensure that you accept the best and most reasonable tender. However, this also means you are approaching the conclusion with a buyer. As a rule, the buyer's first offer is made through your realtor or co-broker, as well as a presentation of the buyer's qualifications.

The offers without a signed contract are not legally binding. You have the authority to accept or oppose any offer when negotiating. If you get offers from several prospective buyers, it is a good idea for you and your agent to find a strategy to obtain the best price and conditions for the most qualified buyer. The tendering process ends when you and your agent agree on a purchaser and enter into an agreement regarding the price, terms, and closing date. In New York, a sales agreement is entered into through a lawyer. Your lawyer will prepare the present agreement and submit it to the buyer's lawyer for review.

 

Estimated Fees:

Cooperative Apartment:
For Seller:
Broker Fees: Are typically 6%. Fees vary according to property size and amount of marketing
Attorney Fees: Approximately $1,500
Managing Agent: $450
Flip Tax: Consult Managing Agent
Stock Transfer Tax: $.05 per share
Move Out Deposit Fee: $1,000
New York City Transfer Tax: 1.00% of price up to $500,000 1.425% of entire price when it exceeds $500,000
New York State Transfer Tax: 0.4% (.004) of price
Payoff Bank Attorney: If the seller has a mortgage of $30
UCC-3 Filing Fee: If the seller has a mortgage of $350For Purchaser:
Own Attorney Fee: Approximately $1500
Bank Fees/Application/Credit/Appraisal/Bank Attorney/Miscellaneous Fees: $1,600
Short-Term Interest: One-month max*
Move-In Deposit: $1000
Managing Agent or Co-op Attorney Fee: $600
Lien Search: $300
Maintenance Adjustments: One month tax
Mansion Tax: 1% of the entire price when the price exceeds $1,000,000

 

Condominium/Townhouse:

For Seller:
Broker Fees: Are typically 6%. Fees vary according to property size and amount of marketing
Attorney Fees: Approximately $1,500
Managing Agent: $450
Move Out Deposit Fee: $1,000
New York City Transfer Tax: 1.00% of price up to $500,000 1.425% of entire price when it exceeds $500,000
New York State Transfer Tax: 0.4% (.004) of price
Miscellaneous Title Company Fees: If the seller has a mortgage of $200

For Purchaser:
Approximately $1,500
Bank Fees: Points 2%
Application/Credit/Appraisal/Bank Attorney/Miscellaneous Fees: $1,600
Short-Term Interest: One-month max*
Real Estate Tax: Escrows 2-6 months
Recording Fee: $200
Mortgage Tax: 1.75% of mortgage on loans under $500,000 or 1.875% of entire amount on loans over $500,000
Fee Title Insurance: Approximately $450 per $100,000
Mortgage Title Insurance: Approximately $200 per $100,000
Miscellaneous Title Charges: $300
Managing Agents Fee: $250

Adjustments:
Common charges: One-month max*
Real Estate Taxes: 1 to 6 months
Mansion Tax: 1% of the entire price when the price exceeds $1,000,000-

Pro-rated to the closing month.

Plan to pay an eight-month property tax. These taxes are combined between the vendor by way of adjustment and the escrow set by the lender.

Note: when buying condos from a developer, the buyer will have to pay both New York and New York transfer taxes; see above for amounts.

Additionally, buyers are required to pay the developer's legal fees, which are approximately $1,000.

 

Multi-Family Residential/Commercial Property

For Seller:
Broker Fees: Are typically 6%. Fees vary according to property size and amount of marketing
Attorney Fees: Approximately $5,000
New York City Transfer Tax: 1.425% of price up to $500,000 2.625% of entire price when it exceeds $500,000
New York State Transfer Tax: 0.4% (.004) of price
Payoff Bank Attorney: If Seller has a mortgage – $350 Miscellaneous $200 Transfer Security Deposit T.S.D.

 

For Purchaser:
Own Attorney Fee: Approximately $5,000
Bank Fees: Points 2%>
Application/Credit/Appraisal/Bank Attorney/Miscellaneous Fees: $5,000-$10,000
Short-Term Interest: One-month max*
Mortgage Tax: 2.75% of the entire amount on loans over $500,000
Real Estate Tax: Escrows 2-6 months
Fee Title Insurance: Approximately $450 per $100,000
Mortgage Title Insurance: Approximately $200 per $100,000
Miscellaneous Title Charges: $1,000
Adjustments: Rents* T.B.D. Real Estate Taxes 1-6 months 

 

GENERAL CLOSING PROCEDURES

 

What is a closing?

A closure is when the buyer gives money to the seller in exchange for the ownership and title of a particular property. This exchange transfers ownership and title to the property and obliges the vendor to sign other documents, including an instrument. That usually happens at the bank prosecutor's office. The parties present shall be the seller, the bank agent, the real estate brokers, the seller's agent, the buyer's agent, and the nearest title.

 

General Closing Costs Defined:

Additional Fees: 

Sometimes borrowers are charged extra fees. Some of these include Wire Fees, Tax services, Survey Costs, Flood Certification, Settlement Charges, Messenger Fees, Sub-Escrow Fees, and Transfer Tax.

 

Appraisal Fee: 

Fees are charged to assess whether a property is of sufficient value to support a loan. A qualified appraiser will review the ownership and generate a report.

Attorney Fee: Fees paid to the lawyer representing you in the purchase of real estate (some fences require you to pay bank or condo attorney fees, sponsor fees for the sponsoring lawyer may be required. Fees vary depending on the type of ownership and the dollar value of the ownership.

 

Receiver: (Taxes, Insurance) – In this case, the money is on a mortgage for conditions such as taxes and insurance, etc.

 

Origination Fee/Points: 

Depending on the type of loan and rate chosen by the mortgage applicant, he/she will be able to pay points. 1 point is equivalent to 1% of the total loan amount.

 

Prepaid Interest: 

This amount is used to pay interest payable from the financing date to the end of the current month.

 

Recording/Transfer Fees: 

This covers the cost of changing ownership in the county's official registers.

 

Title Insurance and Search:

Fees are charged for title research and insurance fees. A title search serves to verify that the seller is the true owner of the property sold and that he is entitled to sell it. Title insurance provides protection to a lender in the event of a lien or other issues related to the title of the property in question that was not disclosed when the sale took place.

 

Time Until Closing: 

Generally, sales take between 3-5 months to close depending on various factors. The most common factors affecting closing include mortgage & financing, condo/coop board approval, and negotiation.

A contract of sale is a legally binding agreement between a purchaser and a seller in which each party gives consideration, (bargains for an exchange) to define the terms of the sale.

NOTE: Sometimes there are other fees that may be charged. This generally occurs when the property is a condo or coop. Our brokers will be happy to discuss these with you.

 

Contract:

The contract is typically the most important part of a real estate transaction. At this point, the seller and buyers’ attorneys will negotiate the best terms for their clients. While the seller’s attorney prepares the contract of sale, the buyer’s attorney will exercise due diligence by asking for certain key paperwork from you or your managing agent. 

 

These typically include:

A statement of the building’s audited financials

The building’s by-laws

Proprietary lease or offering plan and amendments.

With the approval & agreement of the buyer’s attorney, the contract of sale is signed by the buyer. At the signing, the buyer typically presents a deposit of 10% of the sale.
The contract and deposit are forwarded to your attorney who will obtain your signature.
The buyer’s deposit is usually held in your attorney’s escrow account until the closing date. Normally, any interest earned follows the principal.

Your real estate agent presents the buyer with the building’s board requirements and application forms, which may include:

Tax Returns

Bank Statements

Brokerage Statements

Bank Financing Documents

Signed Financial Statements

Contract of Sale

Professional Reference

Personal & Financial Letters of Reference

The buyer’s agent compiles the board package and then sends it to your agent. They will review it prior to submission to the building’s managing agent, who will present it to the building’s board of directors. Upon review, the board may or may not ask for additional information. A Co-Op may turn down a buyer. If not, the board will arrange to interview the buyer. Generally, condominium buyers are not interviewed.

With the board’s approval, the final step is the closing. This usually occurs in the office of your building’s managing agent or seller’s attorney office. All parties involved will agree upon a set date. It is best to allow for a potential delay of up to 30 days from the closing date specified in the contract. On the day of the closing, you will be expected to provide a photo ID and evidence of ownership: proprietary lease/stock certificate (cooperative) or deed (townhouse or condominium).

 

FREQUENTLY ASKED QUESTIONS

Standard Requirements

What is the cost of InRealEstate broker fee?

 

InRealEstate does not charge for information provided by the website, nor do we charge for viewing apartments or rental properties through our brokers. Clients pay a broker’s fee ONLY if they rent a property through InRealEstate. If the property is a NO FEE apartment, you will not incur a broker's fee.

Unfurnished apartments: 

With a 1–2-year lease, InRealEstate usually charges 15% of annual rent.Furnished/Short Term rental fees: Please call or email for our discount pricing. 

 

When should a perspective renter begin an apartment or property rental search?

Potential renters should begin their search 4-6 weeks prior to an anticipated moving date. Apartments are not usually ready more than 6 weeks ahead of a lease starting date.

 

What are Rent Stabilized apartments?

 

Rent stabilized buildings and/or apartments are buildings whose rent is regulated by the City of New York and the State of New York. Rent increases are only about 2-4% annually. Once a renter secures a rent-stabilized apartment, they have a right to renew a lease agreement indefinitely. A lot of brownstones, townhouses with more than 4 units, and older tenement/elevator buildings in NYC fall into this category. These types of buildings are owned and operated by small to medium size landlords/management companies.

 

Why should I work with InRealEstate to find a rental?

 

Prospective renters seek out InRealEstate service for two reasons:

First, our clients want to find the best deals coupled with the most value they can afford. They understand InRealEstate agents will save them considerable money in the long run. They understand that we offer a variety of services, covering all aspects of their property search. Our clients understand that even though they might be able to find ‘No Fee’ apartments, our brokers work extremely hard to negotiate the lowest possible monthly rent payments. This amounts to long-term savings that renters who don’t use InRealEstate probably would not get. Second, our clients want to save the time and energy that gets wasted when trying to find and close on a property in NYC’s dynamic real estate market. The process can be very frustrating without much result. Our clients come to us in order to utilize the guidance, knowledge, and experience of our licensed brokers. Our management team brings over 50 years of combined NYC real estate excellence to the table. Our clients benefit by saving money, time, and effort.

 

What does ‘No Fee’ mean?

A lot of the apartments prospective renters see listed as ‘No Fee’ via the internet or advertised in newspapers use a flat fee agency. Prospective renters cannot get information about these properties without first paying a flat fee to these agencies. The fee is supposed to give the renter access to the agency’s database. Fees can range from $50-$250, even though these agencies are not legally allowed to charge more than $15 for their services. Very few agency subscribers rent their apartments this way. A lot of these agencies provide almost no support service to clients. They have little or no staff and they operate basically as internet-information agencies. Therefore, they cannot possibly provide the expertise of a licensed broker. Be wary of information obtained in this manner as the information tends to be unreliable and outdated.

 

Is it possible to find a ‘No Fee’ apartment?

Sometimes landlords/management companies or brokers offer rental properties or apartments for ‘No fee’ (meaning no broker fees or rental application fees). These ‘deals’ tend toward being some of the most expensive apartments on the market. Most ‘No Fee’ apartments are found in high-rise, doorman buildings or newly constructed buildings. Generally, ‘No fees’ are offered because of the sheer size of a building. These apartments are priced fairly and not great deals, but they are not bad ones either. Sometimes InRealEstate represents certain landlords/management companies or buildings that offer ‘No Fee’ apartments. These tend to be in luxury/doorman buildings and are priced at $2000 per month and up. In this instance, the fees are paid by the landlord/management company. In this case, InRealEstate passes on the savings to clients and provides all our services to you free of charge. Not all ‘No fee’ properties are found in doorman buildings. Sometimes landlords/management companies of elevator or walk-up buildings will advertise apartments as ‘No Fee’ on the web or in newspapers. Generally, these apartments are not good deals because landlords avoid additional costs and charge the tenant higher monthly payments. Fairly priced properties with a broker’s fee would probably cost LESS money than a ‘No Fee’ apartment in an elevator or walk-up building.

 

Does having a pet make it more difficult to find an apartment?

 

Having a dog narrows the selection of properties down to 15% of what is currently available on the market. Cats tend not to be as much of a problem. Clients tell your broker about pets to save time and money.

 

What other types of apartment buildings are there in NYC?

 

There are rental buildings, co-ops, and condo buildings.

 

Rental buildings: Usually full service, modern, doorman buildings; rents are generally high but are at market level. Annual rent increases might be considerable, depending on market conditions. These buildings are managed by big corporations trying to maximize profit. Century 21 Metropolitan has access to these listings as well as more affordable more economically priced rental properties. We have access to most of the rental listings in the New York City Area.

 

Co-op and condo buildings: These are also usually full-service buildings. Units are owned by individual owners who are not very familiar with market conditions. It is possible to get good deals in co-ops or a condo building. The drawback is that new tenants might have to meet with the co-op or condo board. This process can take over a month and requires the applicant to undergo rigorous screening. Many co-ops do not allow lease renewals. This means more apartment hunting after the first term of your lease.