All Forum Posts by: Richelle Bryan

Disagree. It is missing major markets and is focused on past performance, not future growth.

Hi Richelle, 

I would say if you are getting a mortgage the costs should be around $3,500 (give or take) for all the bank fees with the exception of your attorney's fee. On top of that the co-op may have some minor fees for board approval (usually a few hundred dollars). The only time it's dramatically higher than that is if you are purchasing for over $1,000,000 at which time you are required to pay Mansion Tax, which is 1% of the purchase price (if the purchase price is $1MM it's a tax of $10k and if the purchase price of $999,000 the tax is zero). 

There are no prepaid taxes as the taxes are included in your maintenance fees with the co-op. You will be required to pay your first month's maintenance fee at closing. If you'd like, PM me and I can send you an itemization if you have a specific property in mind. 

Thanks, 

Morris

Hi Richelle, 

I would say if you are getting a mortgage the costs should be around $3,500 (give or take) for all the bank fees with the exception of your attorney's fee. On top of that the co-op may have some minor fees for board approval (usually a few hundred dollars). The only time it's dramatically higher than that is if you are purchasing for over $1,000,000 at which time you are required to pay Mansion Tax, which is 1% of the purchase price (if the purchase price is $1MM it's a tax of $10k and if the purchase price of $999,000 the tax is zero). 

There are no prepaid taxes as the taxes are included in your maintenance fees with the co-op. You will be required to pay your first month's maintenance fee at closing. If you'd like, PM me and I can send you an itemization if you have a specific property in mind. 

Thanks, 

Morris

Closing costs for buyers of co-ops does not work out to a percentage of the sales price. Most of the fees are fixed. There's your attorney fee, Co-op and management company application and processing fees, Mortgage related fees (appraisal, bank attorney, lien search, recognition agreement, etc). The only fee that works out to a percentage would be mansion tax if the purchase price is over $1mm. The co-op pays the real estate taxes on the property itself (which you pay indirectly through the monthly maintenance), so there are no prepaid taxes. If you are purchasing a sponsor unit then there would be city and state transfer taxes that are typically payable by the purchase (the seller typically pays for re-sales), and those are a percentage of the purchase price. Most co-ops will require you have a certain amount of liquid assets post close as a multiple of the total monthly housing costs (typically 1-2 years worth at minimum), they often have a formula for housing debt-to-income and total debt to income. Keep in mind, many co-ops don't allow investors. 

Yeah those numbers look solid congrats on the new purchase! It does get easier and the jitters go away but sometimes we wish they didn't. Sometimes with confidence comes recklessness......Been there done that haha