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BUYER’S GUIDE TO NYC REAL ESTATE

Sid Gandotra Oxford Property Group Licensed Real Estate Agent Cell: 201.281.9651 | E: sid@opgny.com


BIOGRAPHY As a former Marketing professional, Sid has been instrumental in helping companies and entrepreneurs successfully grow their businesses through his laser-focused marketing strategies since 2013. Along with having a successful career in marketing, Sid leaped into the world of Real Estate for a fresh new challenge and joined the Oxford Property Group (a premier real estate brokerage and management firm in NYC) as a licensed real estate agent in July 2017. His motivation for making the switch was Luis D Ortiz - a real estate agent, a popular TV personality (from Million Dollar Listing New York) and Sid’s very own role model. Sid brings a unique hands-on approach to Oxford Property Groups’ rapidly growing clientele of US and international customers, reflecting an exceptional customer service philosophy he cultivated in his marketing career. His main focus has been to spearhead the rentals, sales and investment growth opportunities in the New York City market. Sid’s appreciation of cultural diversity and genuine desire to help people find a ‘place that feels like home’ are things that make him a pleasure to work with. The architectural mystique of NYC, whether it is the prewar buildings or the modern luxury developments, truly fascinates Sid. His passion for real estate, a strong work ethic and tremendous love for the city are what drive Sid to do what he loves every single day. LET’S GO!


BUYER’S GUIDE

Why you should work with a buyers agent The primary reason to work with a buyer's agent is that we bring value to the process of purchasing a home in a complex and fast-moving market like NYC. The principle value we bring is protecting the interests of you, the purchaser, ensuring you achieve value for money and in the case of co-op purchases, to guide you through the complicated and personally intrusive process. Other fundamental benefits of using a buyer’s agent are: •

A buyer’s agent provides representation during negotiations and is able to find out things a buyer will not.

•A buyer’s agent has the total fiduciary responsibility to the buyer to act in their best interests at all times. If a buyer works on their own and negotiates directly with the sellers agent, they will be likely less effective due to the listing agents fiduciary responsibility to the seller. •As a buyer’s agent is not paid by their clients, they provide totally impartial onions and are able to tell buyers what they NEED to hear rather than what they WANT to hear, without and rich of conflict of interest. •A buyer’s agent can provide up-to-the-minute market analysis and data. A buyer’s agent has access to every NYC listing. •A buyer’s agent prepares complicated co-op and condo packages for their clients and guides them through what can often be a confusing process. •A buyer’s agent works with the seller’s agent to hold transactions together, ensuring all the various parties. Such as attorneys, mortgage brokers/underwriters, management companies etc. to make the whole process for the buyer as simple and smooth as possible.


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What we bring to the table Broker Price Opinion With years of industry experience and access to exclusive market data, we are able to present a comprehensive analysis of the properties and current market trends in your desired neighborhood.

Deal Negotiation There are a lot of moving pieces in real estate deals. With our knowledge and expertise in putting together compelling offers, we ensure you to get the best deal possible. With a specialty in condos and co-ops sales in New York City, we’re delighted to guide you through the entire process.

Legal Advice & Due Diligence Our legal professionals will perform all the proper and necessary due diligence on your behalf, including reviewing the minutes from Board meetings and assessing the financials to make sure that your investment is sound.

Application Submission Applications for condos and coops in New York City are rigorous. Ensure your acceptance by letting us assemble the purchase application package from start to finish. Board applications are our specialty and we’ll make you shine.

Contract Negotiation Our team of highly knowledgeable New York real estate attorneys are experts in streamlining contracts, while positioning you to receive the most advantageous terms. They will ensure that you are fully protected when negotiating and signing a Contract of Sale.

Mortgage Professionals We’ve built a network of highly efficient licensed experts that we’ll connect you with so you can be pre-qualified for a loan, access the best rates and close quickly on your dream home.


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A Buyer’s Agent Helps You Achieve Your Home Buying Goals By: •Saving Your Time   

Identify your specific purchase needs. ( Initial Screening/Interview) Educating and informing your every step of the purchase process from beginning to end. Selecting and scheduling appropriate listing appointments based on your search criteria.

•Saving You Money 

Preparing a Comprehensive Market Analysis (CMA) in order to make an accurate and educated offer.

Expert and experienced negotiation on your behalf.

Offering an unbiased objective opinion on value based solely on your interest.

•Providing Industry and Neighborhood Expertise  

Navigate co-op/condo board packages, rules and applications. Analyze specific local, regional and national trends that may affect your purchase decision. Identify local trustworthy vendors who are integral throughout the buying process. Resource for answers to any questions you may have during the purchase process.


BUYER’S GUIDE Buyer

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Checklist •Evaluate your budget. What can you afford for a down payment as well as monthly expenditures? Additional monthly expenses to consider would be your maintenance or common charges/real estate taxes, monthly mortgage payment, homeowners insurance, utilities, parking , etc.,. •Speak to a lender and obtain mortgage pre-approval (if necessary) •Select an Attorney who specializes in New York City Real Estate •Prioritize your needs - space, light, views, building amenities, etc. •Identify your timeline to make a purchase. •Explore different neighborhoods to identify your desired location •Research school districts in the selected neighborhood(s) if applicable •Evaluate access to transportation in the selected neighborhood(s) •Evaluate building amenities and house rules in terms of your preferences (washer/dryer permitted, gym in building, pet policy, storage facilities, sublease, doorman, etc.) •Begin to gather financial and supporting materials for your mortgage application and board package •Once apartment has been selected, review the building financials with your attorney and agent to asses the financial health of the building


USEFUL TIPS Determining Budget/ Financing Options

It is imperative to determine your financial state prior to beginning your search. This will help you identify a suitable price range as a starting point form which to begin your search. As part of your initial buyer consultation we will go over the different financing options and can make an introduction to trusted mortgage brokers

Pre-Qualified Pre-qualification is an informal non-binding process in which you provide preliminary information regarding your income, debts, assets and credit to mortgage lenders. The lenders perform some calculations and estimate the size of the home purchase they will likely approve based on the information you provide. At this juncture, it is important that you give fair estimates of your financial profile to any potential lender since the per-qualificcation is based solely n the information you provide. There is no formal vetting of your financial situation at this point (i.e., credit check/document submission)

Pre-Approved The pre-approval process requires you to provide the requested financial documents to your mortgage lender to substantiate your financial profile. This involves a detailed background check which includes authorizing the lender to run your credit history. Required documents at this state generally include tax returns, pay stubs, bank/asset statements, etc. Upon Pre-approval you then receive a formal letter from the lender stating the amount you are qualified to borrow. Pre-Approval is generally good for 60-90 days


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Condo vs Co-op

There are some key differences between purchasing a co-op and a condo. If you purchase a co-op you are essentially purchasing shares in a corporation that won the building in which the units are located. When purchasing a condo you receive a deed much like purchasing a house. Unlike other parts of the country, the majority of apartments in NYC are predominately co-op units CONDO No Interview Required

CO-OP Approval Process

Interview & Approval Required

Financing

Minimum 20% Down

45-60 Days After Contract Signing

Est. Closing Time

60-90 Days After Contract Signing

Allowed With Board Approvals

Renovations `

Allowed With Board Approvals

Minimum 10% Down

Based On Square Footage

Monthly Charges

Owner Pays Homeowner Taxes

Taxes

Allowed At Will Within Building Rules

Subletting

Allowed At Will Within Building Rules

Selling

Based On Number of Building Shares Included in the Maintenance Board Approval Required Subject to Transfer Tax & Board Approval


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NYC

•Begin Search - Pre-approval and begin property search . Generally, a buyer sees 10-15 properties before submitting an offer •Preparation - Your agent will provide a comparative market analysis for the unit which you would like to make an offer on. This will include sold units in the Building and geographic area to determine and initial offer. Your agent will e able to provide you with objective advice based on real time market data. •Offer Negotiation & Acceptance - Often there will be some negotiation related to the selling price, terms and possibly additional items like furniture. Having an objective opinion from a buyer’s agent negotiating on your behalf can save you thousands of dollars and or/keep you from overpaying for a specific property •Contract Review & Attorney Due Diligence - Your attorney will review the contract terms and take an extensive look into the financial stability of the building. The attorney prepares a questionnaire for management and reviews board minutes which gives you valuable insight into the history of the building. •Contract Executed - Both parties sign the contract to purchase and the agreement is now binding. At this time the buyer will be responsible for placing 10% of the purchase price in escrow. •Financing - If you are financing any portion of the purchase, the next steps will involve working closely with your mortgage lender.  Complete loan application  Bank appraisal requested  Receive formal loan approval  Loan commitment letter is issued from the Bank


BUYER’S The ABC’s ofGUIDE Purchasing in

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NYC

•Building Sales Application - The next phase would be submitting the application (condo) or board package (co-op). The applications can vary greatly from building to building but be prepared to submit the same documents that were submitted to secure your mortgage in addition to others. Even if this is an all cash purchase some form of background documentation will still be required. Having an agent who is highly experienced at submitting purchase applications is valuable at this stage because management companies demand that an application be submitted in perfect order. Otherwise, it will be sent back and can delay the process. Additionally , if you’re purchasing a co-op you will most likely be required to have an interview with the board members. Again , an experienced agent comes in handy in prepping for the interview. •Board Approval - Approval is granted! The bank and attorneys prep the required documents for closing. In conjunction with the bank, attorneys and building management a closing date is scheduled. •Closing Day - Prior to or on the scheduled day to close you will do a final walk through /inspection of the property with your agent. At the closing table you will review and sign documents with your attorney present. The closing generally takes about an hour or so.

Congratulations on your New Home ☺


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NYC Closing Costs – Condo vs Co-op Comparison Cost

Condo

Co-op

Attorney Fees

Yes

Yes

Mansion Tax

Yes*

Yes*

Title Insurance

Yes

No

Mortgage Recording Tax

Yes

No

State Transfer Tax

No**

No

NYC Transfer Tax

No**

No

Yes

Yes

Other Smaller Costs

* Applicable if price is greater than or equal to $1,000,0000 ** Applicable if new development


THANK YOU

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NYC REAL ESTATE BUYERS GUIDE BY SID GANDOTRA  

Did you know? The fee for the buyer’s agent’s services is already included in the sale price of the apartment, which is paid by the seller!...

NYC REAL ESTATE BUYERS GUIDE BY SID GANDOTRA  

Did you know? The fee for the buyer’s agent’s services is already included in the sale price of the apartment, which is paid by the seller!...

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