My Offer Was Accepted! Now What?
A: Just because you have an accepted offer, doesn't mean the apartment is now yours! In fact, the selling broker was probably given specific instructions to continue to show and market the apartment until a signed contract is received by their attorney. Read this post if your new to real estate and looking to buy a property without the assistance of an agent.
When an offer is accepted, both the seller's attorney and the sellers broker will begin to work on getting all necessary documents to the BUYER's attorney. Generally a 5-business day period is given to the buyer's attorney before a signed contract and 10% deposit is handed in. After all, there must be some time restriction as competition is greater in New York City when compared to other markets.
A rule of thumb for buyers: GET A NEW YORK CITY BASED ATTORNEY BEFORE YOU SUBMIT ANY OFFER
(ask a current nyc homeowner that you know for a refferal)
OK, so the transaction goes something like this: The asking price was $550K, you submitted an offer of $525K and it was accepted. Congratulations! Now enough celebrating and make sure your attorney is ready to review the documents; Contract of Sale, 2-Years Building Financials & Offering Plan. If your attorney DOES NOT receive these doc's from the seller's attorney within 3 business days, then I would put time pressure on the seller and threaten to retract your bid. There is no reason other than, 'going behind your back', for these documents to take longer than 3 business days to get into your attorney's office. This is not the suburbs and there is always the chance that someone else has submitted a higher or better offer.
Your attorney could take up to 5 business days to review and OK you to sign the contract and send in the deposit. As always, if you think you got a great deal, try to get these doc's signed in 2-3 days of receipt.
Unless the seller is out of town expect to have the signed contract COUNTERSIGNED within 1 business day, sometimes two. If its been longer than 3 business days since the seller receives your signed contract, then something is up. Ask your attorney to apply some time pressure to get that contract signed! Once the seller countersigns, you now have a FULLY EXECUTED CONTRACT OF SALE.
While the party is not over yet, it is much closer. The next 2 items that need to be completed is getting your loan committment letter from the lending bank and to complete the required board package. The seller broker will assist you in the preparation of these documents.
Q: If the seller broker will assist me in the transaction, why would I need a buyer broker?
A: The seller broker REPRESENTS the seller and has a fiduciary responsibility to the seller to get the highest and best price possible for the apartment. The buyer broker REPRESENTS the buyer and has a fiduciary responsibility to the buyer to get the best value possible for what meets your needs. There are also NO charges to you to use a buyer broker.
Good Luck and feel free to submit any questions to me if you get stuck anywhere during this process!
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Comments (1)
I am purchasing a co-op apartment that I have been subletting for 2 years from my wife's grandmother. We have agreed on the price and I know the building is runninng pretty smooth financialy. I am interested in getting a small mortgage of about 60k and paying the difference in cash. What I am trying to avoid is paying for closing cost and fees as a seller and buyer since its between family with no worries about the transaction.
What is the best way to save on both ends for my grandmother and me on fees and cost since we have agreement on every issue? Should I take a personal loan or continue with a mortgage loan? Also my grandmother wants to save on the "flip tax" of the building by reporting less than purchase price but I am afraid that once I get a mortgage loan the building will know the entire amount from the bank? I know its alot but your website was very informational. I will remain thanking you in advance.
Dan
Posted by DAN MAX | June 20, 2006 7:01 PM