Buyer’s Guide Westchester
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Welcome Home! Westchester is home to one of the world’s most competitive real estate markets. With the help of this guide, you’ll learn the nuances that make Westchester’s real estate process so unique and gain an edge in the market. When you’re ready to take the next step, our top-performing agents will be here to help you determine which neighborhood offers the character and amenities you desire, which type of property suits you best and how to negotiate the best deal. All the resources and influence we’ve gained as one of the biggest brokerages in the nation by sales volume, will empower your real estate buying experience in Westchester.
Let Us Turn What You Love Into Where You Live Buying a home is one of the most important financial—and personal—decisions many of us will make in our lives. Whether or not it’s our first time, we all begin the home-buying journey with a vision, a picture in our minds of a place that looks and feels like our idea of home. At Douglas Elliman, we are committed to helping you turn that vision into reality. As a leading residential real estate brokerage, we have created this overview of the purchasing process in one of the world’s most exciting and competitive real estate markets.
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Step One Partner with a Professional
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The Agent Advantage Buying a home can be a wonderfully rewarding experience, especially if you’re doing it for the first time. It is also a complex process, with a sequence of steps that requires knowledge, patience and attention to detail. A licensed agent provides the experience and steady guidance to manage the process and enable you to focus on the journey.
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The Elliman Advantage By empowering our agents to go above and beyond for our clients, we have established a century long reputation as a leading brokerage. Douglas Elliman agents are not just full-service partners on the way to closing a deal— they are also ongoing resources for professional referrals, personal recommendations, and knowledge of the city.
Reasons to Partner with a Professional Find your agent.
Purchasing a home is one of the biggest decisions of you and your family’s lives. Let Douglas Elliman Real Estate help. All of our Realtors are experienced, full-time agents who specialize in making the buying process as easy and stress-free as possible.
An agent will always act on your behalf.
From navigating paperwork to negotiating offers, your best interest is always the priority.
An agent will guide you with data.
You get the inside track on market trends and timely opportunities, including unlisted properties.
An agent will help you decide wants and needs.
Make a wish list of what you want in a home before you start looking. Include what you want and what you need, which items you are willing to give up and which are most important. This will help you decide which type of home will be the best fit: new construction or an older home; single family, townhome or condominium. Issues to consider include the price of properties, travel distances to work and school, property taxes, and area amenities. Your Douglas Elliman Realtor will provide you with detailed information about the neighborhoods you are interested in and coordinate the showings of appropriate properties.
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Step Two Becoming a Buyer
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The Ownership Advantage While there are many benefits to renting a home in Westchester, owning your home comes with powerful advantages.
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Build Your Equity When you pay a monthly mortgage, you increase your equity, or ownership stake, in your property. The greater your equity, the more you can capitalize on your home’s value as it increases over time.
Fix Your Costs Unlike paying rent to a landlord or property manager, which can increase your rates year over year, securing a fixed-rate mortgage ensures you won’t have to worry about rising monthly housing costs.
Create Your Space Want to retile a bathroom or open up the kitchen by removing a wall? Unless you’re buying in a restrictive condo association or Coop, it’s your home, you have the freedom to personalize your space.
The Elliman Advantage Douglas Elliman’s expertise spans the region's buying, selling and rental markets. With exclusive access to data-driven insights from industry-leading sources like Douglas Elliman’s Market Report and Wealth Report, our agents can help you decide when the time is right to go from renting to owning.
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Step Three The Buyer’s Journey
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Mapping Out Your Home-Buying Journey The process of buying a home in Westchester, Dutchess & Putnam Counties involves a series of steps in three phases:
1. The Finances 2. The Search 3. The Close
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The Elliman Advantage After sitting with you to outline the home-buying process from start to finish, your Elliman agent will guide you through every step with trusted referrals to mortgage brokers, title companies and inspectors, as well as vital experience in elliman.com | 15 getting all the documents in order.
Preparing Your Financial Profile Clean Up Your Credit
Credit scores help banks evaluate the risk of lending to individuals. Use a reputable website to access your credit details without damaging your score and explore ways to improve it, if necessary.
Calculate Your Savings
Expect to pay as much as 20% of the sale price for a down payment, along with associated closing costs. For a complete breakdown of costs connect with your real estate agent.
Get Pre-Qualified
To help you estimate your price range, a loan officer will inquire about your employment status, income, assets, debts and projected down payment to determine if you qualify for a loan and at what amount.
Get Pre-Approved
After getting pre-qualified, you can work with a lending institution to receive a pre-approved loan statement (typically valid for 60 days), which estimates the amount that you will be able to borrow. You will be asked to submit additional financial documents, including pay stubs, bank statements and tax returns.
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From Offer to Contract Making an offer and signing a contract are pivotal moments when leveraging your agent’s skills and knowledge is especially critical.
Negotiating the Offer
Home Inspection
Your agent will help you determine an appropriate offer amount and terms, and will convey the offer to the seller (via the seller’s agent) and prepare to negotiate the best possible price, terms and closing date.
Home inspections (home, pool, septic etc.), typically take place immediately after offer is accepted and prior to contract signing unless waived or for informational purposes only, which tend to take place after contract signing.
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Contract of Sale & Review Seller's attorney prepares the contract of sale. Buyer will review the contract of sale with their real estate attorney to ensure terms are all agreed to and everything is satisfactory prior to signing. Contracts vary for single-family homes, Condos and Coops."
Signing the Contract Once terms are agreed to by all parties, buyer to sign the contract and to put down their earnest money deposit, which is typically 10% for single family homes. New construction is typically 1520% at time of contract signing. The deposit goes towards the down-payment to be made at the time of closing if obtaining a mortgage, 20% is required by most lenders. Once buyers have signed and the money is wired, the seller countersigns and the contract is fully executed. Note that sellers can still accept other offers until a contract is signed. A closing date is agreed to by all parties and is outlined in the contract, usually no more than 90 days.
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From Contract to Close At this stage of the buying journey, your agent will help you assemble the remaining documents and finalize the necessary approvals.
Loan & Mortgage Commitment
If you are obtaining a mortgage, your mortgage banker or broker will process all necessary paperwork and obtain your mortgage commitment within 30 days of signing the Contract of Sale. An appraisal will take place during this time as well.
Ensure All is Smooth
The agents will work together during this time to ensure all parties are on the same page and everything is moving forward smoothly towards closing.
Scheduling the Closing
Once the buyer has been given the clear to close from their bank, if obtaining a mortgage, a closing date can be agreed to by all parties per the agreed to contract terms.
Final Walk Through
A final walk through of the home is done with the buyers and their agent right before the closing to ensure all is in the same condition as when contracts were signed.
Closing
Your real estate attorney and mortgage broker or banker will advise you on what is needed at the closing. Once all documents are signed, remaining down payment is taken care of, deed and title are transferred...voila the house is yours!
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Buyer's Checklist Prior to Closing Checklist Provide fully executed signed contract to the title company. Attorney responsible for this. Provide another copy to the mortgage company which has been receipted by the title company. Inspections of the property must be performed during the time limits set forth in the contract. lways review the Seller’s Disclosure carefully and ask your inspector any questions or concerns you A may have regarding the property. Review the title commitment for any requirements. Work with your R.E. Attorney. Request itemized list of closing costs and pre-paid items from the lender to review prior to closing. The title company will have some required closing costs.
Required at Closing A cashier’s check must be made payable to the title company at closing. All funds must be good funds. Funds may be wired to the title company from your lending institution. The title company will be able to provide these instructions to you and your lender. Attorney responsible for this. Closing instructions from your lender to the title company and a ALTA/HUD Settlement statement prepared for your review prior to closing. You will receive the keys, garage door openers, etc. from the Seller as agreed in the contract.
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Closing Costs For the Buyer Typical Estimated Closing Costs: Single Family Homes in Westchester
For the Purchaser Buyer’s Attorney
Consult your attorney. Typically $2,000+
Bank Fees
$750+
Application Fee
$350+
Processing Fee
$330+
Appraisal Fee
$300-$2,000
Credit Report Fee
$10.10 single/$15.20 joint
Bank Attorney
$650 - $750
Tax Escrow
2-6 months
Recording Fees: NYC & Westchester
$250-$750
Fee Title Insurance
NYS Title Insurance rates are filed with NYS Department of Insurance. To get a quote to contact DE Title Services. detitle.com
Mortgage Title Insurance
Variable by transaction: Approx. $130 per $100,000 of mortgage amount
Mansion Tax (see Mansion Tax Page)
1% of Purchase Price if over $1m
Mortgage Tax Property Type
Mortgage Tax: Yonkers
Mortgage Tax: Westchester, Dutchess & Orange Counties
1.8%1
1.05%1
Single Family Residence $499,999.99 and below Single Family Residence $500,000 and up Commercial Properties and Vacant Land $500,000.00 and under Commercial Properties and Vacant Land $500,000.01 and up
Mansion Tax is paid by purchaser on transactions that are 100% residential and the purchase price is $1M or above. See separate Mansion Tax sheet. Minus $30 for 1-2 family. This closing-cost guide is designed to give you the general costs associated with the purchase or sale of a condominium property. Please note that these are estimates and that potential buyers and sellers should consult their real estate attorney or financial advisor for specifics. Kindly note, we do not represent that these are the entirety of potential costs, but are only to be used as a guide. All transfer taxes and filing fees are subject to change by government agencies in each location. * 1
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New York State Mansion Tax Mansion Tax (1% of purchase price) is paid by the purchaser on transactions that are 100% residential and the purchase price is $1M or more. In Westchester it is set at 1% for all sales over $1m, however in New York City, the rate increases based on the sales price, as follows:
Westchester's Mansion Tax Property Price
NYC's 5 Borroughs Mansion Tax
Mansion Tax
Property Price
Mansion Tax
$1,000,000 - $1,999,999
$1,000,000 - $1,999,999
1.00%
$2,000,000 - $2,999,999
$2,000,000 - $2,999,999
1.25%
$3,000,000 - $4,999,999
$3,000,000 - $4,999,999
1.50%
$5,000,000 - $9,999,999
2.25%
$10,000,000 - $14,999,999
$10,000,000 - $14,999,999
3.25%
$15,000,000 - $19,999,999
$15,000,000 - $19,999,999
3.50%
$20,000,000 - $24,999,999
$20,000,000 - $24,999,999
3.75%
$25,000,000 or more
$25,000,000 or more
3.90%
$5,000,000 - $9,999,999
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1.00%
The Home Stretch In this penultimate phase of the process, your agent will join you on a final visit to assess the property to ensure repair requests have been made and the home is in the same or better condition as of the date you made your offer.
Final Walk-Through Checklist Kitchen
Electrical Outlets
• • •
•
• •
Turn oven and microwave on and off Check vents and lighting Check each gas burner on the stove for leaks and ensure igniters work Check the hinges and slides on the cabinets and drawers Run hot and cold water and test the garbage disposal
• • •
Bring an outlet tester, phone charger or night light Test all light switches Check that all outlet plates are straight and secure Test all light bulbs
HVAC Doors, Windows & Exterior • • • •
Check that all doors open and close without obstruction Check all knobs and handles Check that all windows open and close smoothly and seal properly Test the doorbell, intercoms, concierge phone and alarm system
•
Check thermostat and test heating and air conditioning in various modes
Walls & Floors • •
Check for stains, marks or damaged boards/ tiles Check walls and paint for dents, marks or discoloration
Bathroom • • •
Run hot and cold water and test water pressure Flush all toilets Check seals, caulking and grout for damage or mold
Appliances • • •
Begin cycling the appliances to run during the walk-through Run dishwasher (15 minutes) Run washer/dryer (5 minutes to test belts)
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Your Vision, Your Home The deal is closed. The keys are in hand. You are now a homeowner. Time to settle in, make your home your own and begin to love where you live.
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