CLOSING COSTS FOR TOWNHOUSES & SINGLE FAMILY PROPERTIES

Making an Offer

When making a formal offer to purchase, there are several additional terms other than price the seller may be willing to consider. Below is a list of these terms, and how to leverage each in order to make our offer more attractive to sellers:

1. Offering price and financing contingency: Nearly half of all NYC real estate transactions are ‘all cash’. If paying cash is an option for you, although you wish to take advantage of favorable financing terms, you may close with cash and take out a loan against your home equity after closing, or waive your financing contingency and commit to closing in cash if, for whatever reason, you’re not able to secure financing. If you cannot commit to paying cash at closing, waiving your financing contingency may still be an option if your bank has loaned in the building recently and your pre-approval is completely current. If purchasing in a building where your bank has not loaned recently, you may elect to waive your appraisal contingency only, protecting yourself if you can’t secure financing, and allowing the seller to protect themselves in the event that the property appraises inaccurately. 2. REBNY financial statement: All offers in NYC must be submitted with a completed and signed REBNY financial statement. The statement need not be accurate to the nearest dollar or corroborated with bank statements, simply an accurate picture of your income, assets, and liabilities. The more forthcoming we are on the REBNY financial statement, the more attractive our offer will be to sellers, especially in a coop. 3. Mortgage pre-approval: All offers in NYC which include financing must be submitted with a current mortgage-preapproval, not a pre-qualification. Mortgage pre-approvals from a large and reputable financial institution with as few contingencies as possible will be most attractive to sellers, especially in a coop. Because different income and tax scenarios can greatly impact mortgage pre-approval, you should get pre-approved by your lender of choice before beginning your search in earnest. 4. Closing schedule: A flexible closing schedule that can accommodate a seller who needs to close quickly, or one who needs to wait a few months to close, can greatly improve the attractiveness of our offer.

5. Links to professional resumes and letters of introduction: The informal employment confirmation that comes with a link to your professional resume can make a seller more comfortable with your offer. When competing against other buyers in a multiple-bid scenario, a letter of introduction highlighting your favorite aspects of the apartment, building, and neighborhood can put you over the top. 6. Attorney contact information: Providing the seller your attorney’s contact information with your offer sends the message that you are motivated, educated on the process, and organized. It also allows contract negotiation and due diligence to begin immediately upon acceptance of your offer.