Buying a co-op in New York City can be an intimidating process, especially if you’re in the market for the first time. Many people get overwhelmed to the point where they back out of a potential deal and just settle for renting. However, most of the time, these people don’t use the resources available to them and don’t work with a real estate attorney in New York for guidance. Avoiding these common mistakes can make your co-op buying experience more pleasant.
Never Assume Approval Is Guaranteed
You could have a steady income, flawless credit, countless support letters and more, yet your application can still get rejected. One of the reasons for this is because your purchase price could be so low that the board believes it could reduce the property value of the unit and other units throughout the building. Another reason is if the board believes you intend to rent out the unit, but they do not want to sell to investors. In other words, approval is never guaranteed until all parties sign on the dotted line.
Not Working With A Broker
The top law firms in NYC always recommend working with a broker during the process of buying a co-op. The seller will undoubtedly be using one, so you don’t want to get into negotiations with a professional without the backing of a professional on your side. Brokers don’t cost anything for buyers, in most situations, so take advantage of their expertise so you can feel confident you’re getting the best deal possible for your situation.
Failing To Show Your Maximum Borrowing Capacity
A real estate attorney in New York may caution you about only showing your budget price, rather than your maximum borrowing capacity. Most of the time the cost of the co-op will come in higher than your budget. And during the time you go back to your lender to update the pre-approval letter, the co-op may already be sold and under contract. A word of advice is to always display your maximum borrowing capacity so you won’t miss out on the deal of your dreams. Sellers want to get the maximum price, but you won’t have to worry about your borrowing capacity being used against you.
Refusing To Work With A Real Estate Attorney
Working with reputable NYC lawyers to complete your real estate deal is essential. Real estate law in New York City is complex and requires the expertise of a seasoned professional. Be sure to vet NYC lawyers thoroughly so you have a great understanding of their particular experience in co-op buying and selling. The attorney in New York you work with could be the difference between losing out on a deal and living in the home you’ve always dreamt about.
Gordon & Gordon specializes in real estate transactions in New York City. Getting involved in a bad real estate deal can create massive financial burdens, and sometimes you may not even feel those burdens until years later. We are ready and able to assist you with your co-op buying experience so contact us today to schedule a consultation to learn about your situation.