Renting, Buying, and Selling Guides

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Renter’s Guide

New York City is the best and most exciting city in the world, so it’s no wonder the vacancy rates tend to be very low. Although the process of finding a new home to rent in the city can be somewhat frustrating, RES will strive to make the process enjoyable yet thorough. Our seasoned agents will listen to your needs and requirement, research all properties that meat your criteria, organize efficient viewing schedules, help with negotiating your lease price and terms, and will help prepare and submit all necessary paperwork for your approval. Below is a general guide to financial requirements, fees and documents you will need when renting in New York City.

Typical Requirements
  • Annual income is at least 40-50 times the monthly rent and that you have good credit. For example, if the monthly rent were $4,000 month, you would need to show a guaranteed annual income of at least $160,000 per year. ($4,000 x 40 = $160,000).
  • A bonus may be included if the bonus is guaranteed, or if a documented history of bonuses can be provided.
  • Discuss your financials and potential credit problems with your agent in advance.
  • If your guaranteed yearly income falls below the landlord’s requirement, there are other factors that may be taken into consideration, such as assets, income from other sources, housing allowances, or the use of a ‘guarantor’ (below).
  • Landlords may accept roommates’ combined incomes to determine financial qualification for an apartment. If the landlord does not allow for combined incomes, or if the combined total is not enough, they will require a ‘Guarantor’ or ‘Lease Co-signer’, which is a person who accepts financial liability in the event you or your roommates fail to pay the rent.
  • Guarantors typically must make between 75 to 100 times the monthly rent in annual income.
  • Most landlords prefer that you use a guarantor from the ‘Tri-State’ area, i.e. New York, New Jersey or Connecticut.
  • The guarantor will be required to produce the similar paperwork as the potential tenants, but is not required to physically come to New York.
Typical Fees:
  • Rental Building Application: $ 0 – $ 100.
  • Condominium Application: $ 300 – $ 1,000.
  • Cooperative Application: $ 600 – $ 1,500.
  • Broker Fee: 15% of the Annual Rent. For example, if the monthly rent were $4,000/month, the brokerage commission due would be $7,200 ($4,000 x 12 x 15% = $7,200).
  • Guarantors typically must make between 75 to 100 times the monthly rent in annual income.
  • Most landlords prefer that you use a guarantor from the ‘Tri-State’ area, i.e. New York, New Jersey or Connecticut.
  • The guarantor will be required to produce the similar paperwork as the potential tenants, but is not required to physically come to New York.
Typical Documentation Needed
  • Completed Application: RES has a standard application that your agent will have you complete when you begin the process. In addition, some landlords may have their own application, which would have to be completed as well.
  • Letter of Employment issued within 30 days from your application. Letter should be on official company letterhead and contain: job title, duration of employment, annual guaranteed income, signed by a supervisor or HR representative.
  • If self employed, the letter should be from your CPA, stating nature of your business and verification of your last 2 years of income.
  • Two most recent pay stubs.
  • 2-3 months of bank statements.
  • Verification of any additional sources of income.
  • 2 years tax returns
  • Credit report: A credit check will be run by your RES agent, prospective landlord or the management company of the building. Discuss any potential credit problems with your agent in advance.
  • Landlord references: Although they are not always required, they certainly can be helpful if provided. If you do not have a letter, make sure to at least have your previous landlord name and number readily available, as they are often required on applications.
  • Misc. other documentation depending on management company or landlord (i.e., reference letters, asset verification, etc..)

Buyer Closing Costs

For many, buying a home will be one of the biggest decisions made in their lifetime. Though exciting, the process can at times be daunting. Therefore, we encourage people to seek professional assistance to help them navigate through the New York City market. At RES, our goal is to make sure that the experience of buying a home is as smooth and seamless as possible every step of the way. When you choose RES to represent you, you are assured the utmost in market and neighborhood expertise, service excellence, an agent that is honest and trustworthy, and most importantly, one that is representing you and your interests unconditionally. Our seasoned professionals are dedicated to your vision and will help you make sound decisions.

Buyer Closing Costs: Co-operative Apartments*
  • Own Attorney $2,000+
  • Managing Agent Application Fee $500 – $750
  • Credit Report Fee $50 – $100 per applicant
  • Mansion Tax 1% of purchase price when over $1 million
  • Move-in Deposit $500 – $1,000 (usually refundable if no damage)

Mortgage Associated Fees:

  • Origination Costs (i.e. points) 0 – 3% value of loan
  • Application, Credit Check, etc. $500 + up
  • Appraisal $300-$1,500 (depending on sales price)
  • Bank Attorney $500+
  • UCC-1 Filing $100
  • Recognition Agreement Fee $200+
  • Lien Search $350
  • Maintenance Adjustment Pro-rated for month of closing
Buyer Closing Costs: Condominium Apartments / Townhouses*
  • Own Attorney $2000+.
  • Managing Agent Fee $250 – $500
  • Credit Report Fee $50 – $100 per applicant
  • Mansion Tax 1% of purchase price when $1 million and over
  • Title Insurance, Title Search & Recording Fees: Approximately 0.5% of purchase price
  • Move-in Deposit $500 – $1,000 (usually refundable if no damage)

Mortgage Associated Fees:

  • Origination Costs (ie points): 0 – 3% value of loan
  • Application, Credit Check, etc.: $500
  • Appraisal: $300-$1,500 (depending on sales price)
  • Bank Attorney: $500+
  • UCC-1 Filing: $100
  • Mortgage Recording Tax: If mortgage is less than 500,000: 1.8% of mortgage; If mortgage is over $500,000 on 1-3 family residential dwelling: 1.925% of mortgage; Mortgage on all other property over $500,000: 2.80% of mortgage
  • Municipal Search: $350-$500
  • Recording Fees: $250-$750
  • Real Estate Tax Escrow: 2-6 months

If Purchased Directly from Sponsor: ( ie: new construction or conversion)

  • NYC Real Property Transfer Tax: Up to $500,000: 1% of purchase price; $500,000+: 1.425% of purchase price
  • NYS Transfer Tax: $4 per $1,000 (.4%) of purchase price
  • Sponsor’s Attorney Fee: $1,500

* All costs are estimates for informational purposes only. Please confirm closing costs for specific transactions with your attorney and/or mortgage representative. Check with bank/mortgage broker for additional fees. New York State Law requires a written letter of engagement if the legal fee will exceed $3,000. Non New York State residents should procure exemption for state transfer tax forms (TP584).

Seller’s Guide

When you decide its time to sell your property, RES will utilize the proven success and experience of its real estate professionals to give your property maximum exposure, attract the most qualified of purchasers, attain the maximum price, and make the entire process smooth and seamless for you. From the initial pricing of the unit, to negotiating the sale, to the professional preparation and submittal of a board package, to the closing of the transaction, RES will be there throughout to ensure the greatest chance of success in the sale of your property.

Seller Closing Costs: Co-operative Apartments*
  • Own Attorney: $2,000+
  • Co-op Attorney: $450+
  • Stock Transfer Stamps: $.05 per share
  • NYC Real Property Transfer Tax Up to $500,000: 1% of purchase price; $500,000+: 1.425% of purchase price
  • NYS Transfer Tax: $4 per $1,000 (.4%) of purchase price
  • UCC-3 Filing: $100
  • Flip Tax (if applicable): Determined by co-operative building (typically 1%-3% of price)
  • Payoff Bank Attorney (if applicable): $450+
  • Managing Agent Fee: $500 – $1,000
  • Move-Out Deposit: $500 – $1,000 (usually refundable if no damage)
  • Broker Commission: Typically 6% of purchase price
  • Estate Fees: Coop may impose additional fees for estate sales
  • Residential Deed Transfer: $75
  • Residential Equalization Fee: $75
  • Gains Tax Withholding (out of state seller): 7.7% of gain
  • Non-US Resident (FIRPTA): 10% of price withheld or paid
  • Misc. Co-op fees: Vary by building
Seller Closing Costs: Condominium Apartments / Townhouses
  • Own Attorney: $2000+.
  • NYC Real Property Transfer Tax: Up to $500,000: 1% of purchase price; $500,000+: 1.425% of purchase price
  • NYS Transfer Tax: $4 per $1,000 (.4%) of purchase price
  • UCC-3 Filing: $100
  • Payoff Bank Fees: (if applicable) $450+
  • Managing Agent Fee: $250 – $750
  • Move-Out Deposit: $500 – $1,000 (usually refundable if no damage)
  • Broker Commission: 6% of purchase price
  • Residential Deed Transfer: $75
  • NYS Equalization Fee: $75
  • Gains Tax Withholding (out of state seller): 7.7% of gain
  • Non-US Resident (FIRPTA): 10% of price withheld or paid
  • Misc. Condominium Fees: Vary by building

* All costs are estimates for informational purposes only. Please confirm closing costs for specific transactions with your attorney. Check with your payoff bank for additional fees. New York State Law requires a written letter of engagement if the legal fee will exceed $3,000. Non New York State residents should procure exemption for state transfer tax forms (TP584) .1031 Exchange Intermediaries will have separate costs.