How to Make an Offer in NYC: What Buyers Need in 2025
By Thomas Kutzman on January 01, 2025
If a property in NYC is priced well, it sells and sells quickly. Serious buyers should be prepared from the very beginning when they start looking to purchase a condo or co-op, including understanding the asking price.
It is also important to consider the market value to ensure you are making a fair offer.
According to Prevu agents, more often than not, buyers casually start searching and then suddenly fall in love with a property and are left scrambling to gather everything they need to make an offer to buy it.
In order to be prepared to move quickly when you find your dream apartment, below we highlight how to make an offer in NYC and what documents buyers will need to have ready.
Make an Offer in NYC - What Buyers Need 2024
- REBNY Financial Statement
- Mortgage Pre-Approval or Proof of Funds
- Real Estate Attorney
- Estimated Closing Costs
- Contract Deposit & Down Payment
- Post-Close Liquidity
- Consult a Real Estate Agent: A real estate agent can guide you through determining the home value, navigating negotiations, and understanding market dynamics.
- Speak with a Mortgage Lender: A mortgage lender is essential for providing the down payment required at closing and distinguishing it from the contract deposit.
REBNY Financial Statement
The REBNY Financial Statement generally accompanies any offer in NYC and includes the buyer’s assets, liabilities, income, etc. This can take a little time to compile because you will need to outline your whole financial picture. The REBNY Financial Statement is often reviewed by the home seller.
Mortgage Pre-Approval, Pre-Qualification Letter, or Proof of Funds
You don’t want to be waiting around for your bank while the property you love sits on the market with other buyers circling. Get a mortgage pre-approval or pre-qualification letter before starting your property search. If you are planning to buy all cash, a proof of funds will be sufficient.
Real Estate Attorney
Having an experienced real estate attorney can help make an otherwise stressful process much smoother. The good news is most real estate attorneys only charge you a flat fee if the deal is completed. Don’t be afraid to ask questions because you aren’t being billed by the hour! Agents can offer great recommendations if you haven’t found an attorney yet.
Estimated Closing Costs
Many underestimate how large NYC closing costs can be and are caught off guard. If you aren’t aware of how much to expect, we recommend speaking to your attorney or agent. Estimating closing costs in advance of your search is the best strategy.
The NYC mortgage recording tax is a significant part of these closing costs - particularly for condo purchase.
PREVU SMART TIP
Did you know you can get a rebate from your broker in NYC? Buying with Prevu you’ll pocket a portion of your agent's commission. On a $1,000,000 apartment, you’d receive up to $15,000 cash back.
Learn how to save when you buy!Contract Deposit & Down Payment
In NYC expect to put at least 20% down, typically with an initial contract deposit of 10% of the purchase price when signing the contract. Some buildings and mortgage companies will allow for less than 20%. Be aware, generally higher down payments are perceived as stronger.
Post-Close Liquidity (co-ops only)
Most co-op boards will look for at least 2 years worth of maintenance and mortgage payments in post-close liquidity after your co-op transaction closes. It also makes sense to estimate your debt-to-income ratio. A rule of thumb for co-ops is a debt-to-income ratio under 30%, but some more difficult co-ops require 25% or lower.
The New York City real estate market is super competitive and if you are educated and prepared, you increase the likelihood of successfully buying your dream home!
