Who’s Involved in Buying an Apartment in NYC?

After years of exploring various neighborhoods in NYC and diligently saving up for a down payment, you’ve decided to buy a NYC apartment. Whether you are buying a condo or buying a coop, as a first-time buyer you may be curious who you will meet during your search.

In order to quickly get you up to speed, we’ve compiled a list of all the folks you’ll meet when purchasing an apartment in NYC.

People Involved in Buying an Apartment in NYC 

• Buyer
• Buyer’s Agent
• Seller
• Listing Agent
• Home Inspector
• Mortgage Loan Originator (if applicable)
• Appraiser
• Seller’s Real Estate Attorney
• Buyer’s Real Estate Attorney
• Bank Attorney (if applicable)
• Managing Agent 
• Movers

Buyer

If you are reading this blog post, it’s likely you! The buyer is the person who decides on the neighborhood, price range, and desired apartment features at the beginning of their search.

While not required, buyer’s typically hire a real estate agent to guide them through the purchase process.

Buyer’s Agent

A buyer’s agent is a licensed real estate professional that represents the interests of someone looking to buy an apartment or home in NYC. These agents assist buyers with everything they need from the beginning of their search all the way through closing.

Buyer’s agents schedule apartment tours, help narrow down a buyer’s search, give advice on pricing and negotiation strategy, prepare offers, refer other professionals, and much more.

Seller

A seller is the current owner of an apartment. If the person is selling a condo or house, the owner is also referred to as a titleholder. If the person is selling a co-op apartment, the owner of that unit is also referred to as a shareholder in the co-op corporation.

The seller works with their real estate agent to set the listing price of the apartment to achieve their goals for the transaction.

Listing Agent

A listing agent is a licensed real estate professional who solely represents the interests of the seller of the apartment.

Sometimes referred to as the seller’s agent, a listing agent advises the seller on the pricing of the unit based on recent comparables and trends, handles the marketing of the property, hosts open houses and property tours, and negotiates with the buyer’s agent on behalf of the seller to achieve an accepted offer.

Home Inspector

Once an accepted offer is achieved, many buyers choose to complete an inspection of the apartment prior to signing the contract. 

During this process buyers will meet a home inspector. These professionals are licensed by New York State and perform a thorough review of the interior of the apartment, systems within the unit, the mechanicals of the building, and the exterior of the building.

Home inspectors provide you with an inspection report detailing any issues big or small that may arise giving you peace of mind to proceed with the purchase.

Mortgage Loan Originator (if applicable)

If a buyer is planning to use mortgage financing to purchase an apartment in NYC, they will be speaking to a mortgage professional. Commonly referred to as mortgage loan originators, these professionals negotiate the terms of your mortgage with the lender. 

They will ask a buyer about the goals of their mortgage loan, review the buyer’s financial situation and credit score, provide mortgage loan options that fit the buyer’s needs, issue pre-approval letters, and connect the buyer with the underwriting team at the lender to pursue the necessary loan commitment to schedule a closing.

Appraiser

During the mortgage underwriting process, your lender will order an appraisal to be completed. A licensed appraiser will be dispatched to the apartment to analyze the condition of the unit, assess the building, and review comparable sales in the building and area to provide an official appraised value.

In most cases, buyers are not present for the appraisal, however your lender will provide you with a copy of the appraisal report once completed.

Seller’s Real Estate Attorney

In nearly all real estate transactions in New York City, both the seller and the buyer each have their own real estate attorney to represent them.

Following an accepted offer between a buyer and a seller, the real estate agents provide a deal sheet with all the high-level terms of the transaction to the real estate attorneys. The seller’s real estate attorney customarily draws up the initial contract of sale based on these terms and shares it with the buyer’s real estate attorney for review.

During contract negotiation, the seller’s attorney advises the seller on applicable edits to the contract and represents their interests to achieve a fully-executed agreement that matches the seller’s goals. Once both parties sign the contract, the seller’s attorney will circulate the signed agreement to the seller as well as hold in escrow the contract deposit provided by the buyer.

Buyer’s Real Estate Attorney

The buyer’s real estate attorney represents a buyer’s interest from contract negotiation through closing. These services include explaining the key terms and contingencies in a contract, performing due diligence on the apartment and building, engaging a title company to ensure clear title, calculating closing costs, as well as prepare and review all documents needed for closing.

Bank Attorney (if applicable)

When a buyer uses mortgage financing to purchase an apartment, the bank requires an attorney review all documents to ensure they are completed correctly. In some cases, lenders will allow the buyer’s attorney to double as the bank’s attorney as well. When this does happen, the bank passes on the savings to the buyer.

Managing Agent

In NYC, most condo associations or co-op corporations have their buildings professionally managed. These property management companies are called managing agents. They are responsible for the maintenance of the building, regulatory compliance, collection of common charges or co-op maintenance fees, and administrative tasks.

These administrative tasks include the paperwork related to condo or co-op board applications submitted by buyers, processing of transfer fees, and moving in procedures.

Movers

While the days leading up to a move might feel overwhelming, the actual move is the most exciting part of buying an apartment because you finally are able to live in your new place. 

In advance of the closing, buyers will need to hire movers. If you’ve lived in NYC for many years, you likely know a moving company that you know and trust. However, if this is your first big move, ask your buyer’s agent or a friend for recommendations.

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