Investment Process Timeline
You are now at the start of your NYC (New York City) real estate property investment process from the confort of your home/office or at Kensington Finest Properties International, together with Open Deuren, a team of real estate professional including a local New York City real estate broker who will strive to make your investment experience a pleasant memory of success.
1. Basic Details.
2. Initial Identification of Desired Property.
We guide you identifying the property before you travel to NYC from the comfort of our living room or local Kensington Finest Properties International Office utilizing local NYC property data. With basic information as to the size of desired investment, type of property, preferred location and amenities of the initial properties at hand. Actual property viewing can be a pleasurable experience, our value is in filtering the right properties based on your needs, wants with the objective of identifying the property before traveling back to your country. The time identifying the ideal candidate properties can be from 2-10 days.
3. Time to Close.
After identifying the property, the approximate time to close or finalize the purchase of residential real estate is as follow (i) on a cash transaction is 2-3 weeks; and, (ii) with financing the time to close is approximately 10-12 weeks.
Once you have found the property that you would like to purchase, you will be ready to submit your offer. We will submit your offer in and will be involved throughout the negotiation process. In most cases, the seller already has stated an asking price. However, a meeting of the minds is arrived at through a series of offers and counteroffers until both parties agree on the price, the closing date, the loan amount, if any, and the length of time to obtain a loan if the seller has agreed to a financing contingency, any repair work, the condition of the property, and the inclusions or exclusions of personal property within the home. You should immediately inform your attorney once the seller accepts your offer.
5. Presenting an Offer to Purchase.
In NYC it is customary to present along with the offer to purchase real estate, third party verification of financial wherewithal in the form of copies of statements from bank, brokerage firm, letter form an attorney or sometimes a letter form a Certified Public Accountant (CPA). In the event the investment is financed, a letter of pre-approval from a U.S. or foreign bank with an international mortgage program is required.
6. Earnest Money Deposit. There are two different areas: (i) when you as a purchaser sign a contract you place 10% of the purchase price under escrow with an attorney who will hold the funds until closing; and. (ii) Down Payment at closing you put down the remaining 90% plus closing expenses in case of a cash transaction; or, if financing, an amount that when added to the initial 10% will meet the minimum mortgage requirements.
The owner may choose to deny, the initial offer and not make a counter-offer, or give us a counter-offer; or, simply accept the offer as presented.
8. Accepted Offer and Signed Contract.
The agreed upon terms are provided to both parties' attorneys who will prepare the contract. The buyer's attorney will perform due diligence on the property prior to actual contract execution. Once all is agreed upon, the contract is executed. At this time, a 10% deposit will be required from the buyer to be held in escrow by the attorney.
9. Condo or Coop Package.
A condo package is submitted to the condo/coop board for approval of the sale. This process can take between 1-4 weeks as the condo boards usually meet once every month. A similar package is not required on the purchase of a townhouse or commercial properties.
All parties - purchaser, seller, brokers, attorneys, bank, come together at the closing table where all the corresponding paperwork is finalized and signed and funds and legal title to the property change hands. The transaction is completed at the table and usually no future follow up is necessary.