Not All Questions Can Be Answered by Google
BY: TRIPP WHETSELL
It may take only two to tango, but to buy real estate in NYC, it takes a village. Knowing who does what and which functions they perform ahead of time can give you a leg up on the process. The cast of characters you’ll need on your side when you take the plunge:
1. Real estate agent: Real estate brokers can exclusively represent the buyer or the seller; alternatively the seller’s agent can represent the buyer too, in which case the agent is a “dual” agent. Be aware, though, that if you work directly with the seller’s broker, your agent’s loyalties are divided; you won’t have a real advocate during contract negotiations and you may not hear about problems with the apartment or resale potential.
2. Lenders: Mortgage brokers, mortgage banks, national and regional banks, and credit unions
- Mortgage banks issue loans directly to consumers but then typically sell them into the secondary market immediately afterward–often to large banks like Chase, Wells Fargo, and Citi–which means Fannie Mae and/or other strict lending standards usually apply.
- Unlike mortgage banks, regional banks and national banks are banks in the conventional sense, with actual branches and customers who open savings and checking accounts. Regional and national banks can also issue mortgages. Sometimes these mortgages are quickly resold into the secondary market.
- Mortgage brokers match borrowers with the best loan program currently being offered by a bank. They are paid on commission but have no responsibility if, for example, a buyer commits fraud, leaving the bank holding the bag.
- Credit unions are cooperative banks that you need to join first, based on an affiliation with a business or organization or on your geographic location. Geared toward keeping costs down for their members, credit unions offer very competitive mortgage rates and flexible financing options.
3. Managing agent: Although they’re often overlooked (and aren’t hired by a buyer or a seller) one of the key players in any transaction is the building’s managing agent. The following is a sampling of just a few other things that a managing agent does:
- Gets board approval of the application in a co-op or act as an intermediary with regard to a condo board’s right to refusal of an individual application
- Reviews all maintainance and common charges with a propsective buyer.
- Assists in obtaining the proper paperwork and guidance for buying co-op or condo insurance based on a building’s current policies
- Reviews requests, plans and permits for any renovations or apartment operations
- Arranges and supervises move-ins
4. Appraiser: The appraiser is an important character in the process of buying a New York City apartment, but he or she is chosen by a lender and neither the buyer nor the seller has a say in it.
5. Inspector: A growing number of buyers hire an inspector to look at the apartment and tell them what’s wrong with the place before you sign on any dotted lines.
6. Real estate attorney: Having a real estate attorney in New York City is required by law. Because of the complexities involved in buying a co-op or condo, it’s imperative to make sure your attorney is an experienced real estate attorney.
READ THE FULL ARTICLE HERE
Published by