Standard Fund Requirements:
The Budget:
Location, size, amenities, building type, school locations and nearness to public transportation are crucial to determining what a property will cost. We suggest that buyers review financing options to determine what amount of money they can put toward a deposit and then determine what they can afford for a monthly mortgage payment. Some people may want to see if they pre-qualify for mortgage status in order to know what budget they will be working within.
Type of Property: The next thing to determine would be the type of property you'd like to buy. Would you like an apartment, condominium, coop or commercial property?
Apartment Purchase: For apartment purchases there is no approval process, besides normal financial inquiries. Buyers are entitled to have complete control over any renovations they wish to make. Maintenance costs are the sole responsibility an owner and with this the owner gets total control over maintenance and repairs. Transferring deeds or reselling an apartment do not require approval. The size of a property can vary according to a budget and location of the property.
Condominium Purchase: Condo owners buy the apartment and also own a percentage of the common building areas, i.e. entrance areas, hallways and recreational areas etc. The condominium is considered real property; because of this fact, owner's have the right to do use the property any way he/she sees fit. Owners are subject to pay property taxes which can either be escrowed into a part of a monthly mortgage payment or which are paid annually as an expense. Monthly maintenance fees are generally paid to the building's condominium association.
Coop Purchase : Buying a coop is tricky, but Michael Charles NEw York can help. When purchasing a cooperative apartment the purchaser is really purchasing shares in a cooperation. The shares correspond to the units in which you live. coop fees include a monthly mortgage payment and maintenance fees for the building. Maintenance fees are sometimes high but both mortgage payments and maintenance fees generally result in higher tax deductibles.
- Estimated Fees:
Cooperative Apartment:
For Seller: Broker Fees: Are typically 6%. Fees vary according to property size and amount of marketing
Attorney Fees: Approximately $1,500
Managing Agent: $450
Flip Tax: Consult Managing Agent
Stock Transfer Tax: $.05 per share
Move Out Deposit Fee: $1,000
New York City Transfer Tax: 1.00% of price up to $500,000 1.425% of entire price when it exceeds $500,000
New York State Transfer Tax: 0.4% (.004) of price
Payoff Bank Attorney: If seller has mortgage $30
UCC-3 Filing Fee: If seller has mortgage $350
For Purchaser:
Own Attorney Fee: Approximately $1500
Bank Fees/Application/Credit/Appraisal/Bank Attorney/Miscellaneous Fees: $1,600
Short-Term Interest: One month max*
Move-In Deposit: $1000
Managing Agent or Co-op Attorney Fee: $600
Lien Search: $300
Maintenance Adjustments: One month tax
Mansion Tax: 1% of entire price when price exceeds $1,000,000
*Prorated for month of closing
- Condominium/Townhouse:
For Seller: Broker Fees: Are typically 6%. Fees vary according to property size and amount of marketing
Attorney Fees: Approximately $1,500
Managing Agent: $450
Move Out Deposit Fee: $1,000
New York City Transfer Tax: 1.00% of price up to $500,000 1.425% of entire price when it exceeds $500,000
New York State Transfer Tax: 0.4% (.004) of price
Miscellaneous Title Company Fees: If seller has mortgage $200
For Purchaser: Approximately $1,500
Bank Fees: Points 2%
Application/Credit/Appraisal/Bank Attorney/Miscellaneous Fees: $1,600
Short-Term Interest: One month max*
Real Estate Tax: Escrows 2-6 months
Recording Fee: $200
Mortgage Tax: 1.75% of mortgage on loans under $500,000 or 1.875% of entire amount on loans over $500,000
Fee Title Insurance: Approximately $450 per $100,000
Mortgage Title Insurance: Approximately $200 per $100,000
Miscellaneous Title Charges: $300
Managing Agents Fee: $250
Adjustments:
- Common charges: One month max*
Real Estate Taxes: 1 to 6 months
Mansion Tax: 1% of entire price when price exceeds $1,000,000
*Expect to pay eight months Real Estate Taxes. These taxes are combined between seller as an adjustment and escrow established by lender.
*Note: When purchasing condos from a sponsor, the purchaser will be required to pay New York City and New York State Transfer Taxes; see above for amounts.
*Also, buyers are required to pay sponsor’s attorney’s fee; this fee is approximately $1,000.
- Multi-Family Residential/Commercial Property
For Seller:
Broker Fees: Are typically 6%. Fees vary according to property size and amount of marketing
Attorney Fees: Approximately $5,000
New York City Transfer Tax: 1.425% of price up to $500,000 2.625% of entire price when it exceeds $500,000
New York State Transfer Tax: 0.4% (.004) of price
Payoff Bank Attorney: If Seller has mortgage - $350 Miscellaneous $200 Transfer Security Deposit T.S.D.
For Purchaser:
Own Attorney Fee: Approximately $5,000
Bank Fees: Points 2%
Application/Credit/Appraisal/Bank Attorney/Miscellaneous Fees: $5,000-$10,000
Short-Term Interest: One month max*
Mortgage Tax: 2.75% of entire amount on loans over $500,000
Real Estate Tax: Escrows 2-6 months
Fee Title Insurance: Approximately $450 per $100,000
Mortgage Title Insurance: Approximately $200 per $100,000
Miscellaneous Title Charges: $1,000
Adjustments: Rents* T.B.D. Real Estate Taxes 1-6 months *Prorated for month of closing
