I am trying to sell my co-op myself. I have an offer that i am going to accept. Can anyone advice me on the next steps and the paperwork i need to do?

Asked by Biju Chirathalattu, Clinton Hill, Brooklyn, NY Mon Nov 23, 2009

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14
Jack Ramone, Home Buyer, New York, NY
Thu Dec 3, 2015
Okay good thing you avoided the broker fee, congrats! If you had used a broker total transaction costs would have been over 10%!! That's 6% to brokers, 2% in transfer taxes and 2% flip fee. Unreal. I would make sure you have a solid transaction real estate attorney and you understand the closing costs before proceeding. Good information piece on nyc closing costs here http://www.hauseit.com/closing-costs-nyc/
4 votes
Great article Jackie but Biju wants to know the steps to selling a co-op, not just the costs. For that I'd check out: https://www.hauseit.com/steps-to-selling-a-co-op-in-nyc/ this is an extremely comprehensive guide on the exact steps necessary to sell a co-op, including what to do after you've accepted an offer. Good luck!
Flag Mon Mar 6, 2017
Scottfarley1, Home Buyer, New York, NY
Thu Sep 8, 2016
You need to make sure the buyer is qualified. That means you'll need to see the following to have a complete offer submission:

You should request all offers made by buyers or their agents to be professional and standard in nature. That means the offer email should contain all of the following:

Full legal name of the buyer
Offer level and form of consideration (i.e. all cash, mortgage and down-payment amount)
Timing for the buyer on closing date
Contingencies, if any (i.e. mortgage contingency – needing a mortgage to be able to close)
Short biography of home buyer
REBNY Financial Statement
Pre-approval letter if the buyer will be financing with a mortgage
Proof of funds if the buyer will be purchasing all cash

(disclosure: taken from hauseit.com - reference link below)
2 votes
Charles D'Al…, Agent, Brooklyn, NY
Tue Nov 24, 2009
Good Morning Biju Chirathalattu , So you see there are many thing to do after the offer. All the answers have merit. This is the time to hire an attorney, You also should know your buyers information, C,C,I Cash,Credit score, Income and ask for a approval letter from a direct lender. Good luck and have a Happy Thanks Giving!

Charles D'Alessandro
Fillmore Real Estate
718 253-9600 ext 206
charlesdalessandro@fillmore.com
1 vote
Debra (Debbi…, Agent, Livingston, NJ
Mon Nov 23, 2009
You see why having a Realtor represent you would be helpful?
Then you wouldn't have to turn to strangers on the internet for advice ....buying or selling a home is probably one of, if not the, biggest transactions in someone's life. It sounds like you need help...and fast....call a professional.

No one here can give you legal advice or walk you through the process..................hire a Realtor, and talk to an attorney - it's not too late.

Best wishes....
1 vote
Mitchell Fel…, Agent, Brooklyn, NY
Mon Nov 23, 2009
Dear Biju:

First you should have the buyer put their offer/intentions in writing including their name, address, phone number, the offering amount, down payment and mortgage amount. When we take offers on co-ops we also require the buyers to give us a full factual credit report to see how much debt they have and also to see if they have good credit. You also want to find out what they do for a living and how much their income is. All of that is important because this is what the co-op board will look at when the buyer goes through the approval process (unless your co-op does not have a board approval requirement which is rare). The buyer should also give you their attorney name and phone number.

Once you have all that information, give it to your attorney. Be prepared because the buyers attorney will most likely request the last two years financial statements of the co-op, an application for the co-op and many times they want to see the offering plan book (have them give you a $100.00 deposit if you give them the offering plan book, if the deal does not work out if can be hard to get that back and they cost money to replace!).

Also, inform your co-op management company that you are selling and ask them if there is anything else you need to know. Sometimes you may have to pay a flip tax to the co-op and/or other fees.

Just as food for thought, you may want to have a real estate broker or two come and take a look at your co-op and do a "comparative market analysis" to make sure that you are not selling yourself short. Agents do this sort of thing for sellers all the time and we never charge a fee for this service.

If I can be of further assistance, please let me know, I have sold hundreds of co-ops in the past 17 years that I have been an agent.

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
1 vote
Grace Hanamo…, Agent, Cupertino, CA
Mon Nov 23, 2009
Hello Biju and thanks for your post.

As the others have already noted, you can certainly sell any real estate--coop, condo, single family home--by yourself. However, since none of us here on the panel is intimately familiar with your coop nor the terms of your sale, we'd be negligent in trying to advise you on the steps that you'll need to take to ensure that your home is sold properly and without creating liability for you after the sale.

Although I know you're trying to save money in selling the home by yourself, spending a few hundred or even a few thousand dollars on an attorney will help limit your exposure to post-sale problems (that can cost you hundreds) and will ensure that the home sale does not get challenged or result in rescission of the purchase contract. Most importantly, a real estate attorney will protect your interest and your assets.

You can certainly choose to sell the home yourself, but would be foolish to do so without the advice or counsel of a qualified real estate attorney. Good luck!!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
1 vote
Pascual Paul…, Agent, Bronx, NY
Mon Nov 23, 2009
Please get a real estate lawyer and an agent. If you want to go at it alone, why you asking us? Good Luck anyway.
1 vote
Lisa.t.mooney, Home Buyer, Brooklyn, NY
Sun Mar 26, 2017
You have to make him/ her meet board members I believe to see if they will accept person to buy after that I believe you need a closing lawyer to help. I have a question how did you find a buyer I may have to do same as well, three years a realtor had listing and almost went to closing but it went belly up.
0 votes
Lisa.t.mooney, Home Buyer, Brooklyn, NY
Sun Mar 26, 2017
My question how did you find a buyer I need to do same running out of ideas.
0 votes
Tonyhoward255, Home Buyer, New York, NY
Fri Dec 16, 2016
if you are selling a co-op yourself, the real fun begins after you've signed a contract and you begin working on the NYC board application.

The risk of co-op rejections is very real, so I would take this process seriously and make sure your buyer's board application is spotless. The following tips (typing application, checking numbers) are all very important - http://www.hauseit.com/nyc-coop-board-package-purchase-appli…
0 votes
Rhonda Holt, Agent, New York, NY
Wed Nov 25, 2009
Hello, the co-op queen is here to help you out. First just let me give you a little advice when it comes to selling a co-op on your own that you should be aware of, then I'm going to give you some steps:

1. Difficulty getting information from the buyer about financial qualifications to purchase before signing the contract.
2. The buyer may take forever putting together the co-op package in a timely fashion. Also, doing the package correctly and submitting the all of the documents and fees to management.
3. Scheduling the appraisal, getting the bank appraisal and paying the fees, the inspection (optional to buyer), etc.
4. Kinowing what is going on with the buyers mortgage and not having the ability to speak with the mortgage rep and helping the buyer to get documents and fulfill conditions.

These are just a few things you will not be able to do as the seller, nor will your lawyer for the most part. If your lawyer says he or she is going to do it then it is going to cost big time at the closing table, so be careful.

But the next steps now is that your attorney is going to draw up a contract and send it out to the buyers lawyer. The buyer will go to his or her attorney to review the contract and sign and leave the down payment if he or she agrees to the terms in the contract. After you sign the contract the contract is then legally binding and the buyer will go out to look for a mortgage.

Feel free to give me a call if you need someone to represent your interests and close your deal, it's my specialty. Just visit my site and see how many co-ops I sold in a down market. I look forward to advising you for free or as a representative if necessary. Happy Thanksgiving.


Rhonda Holt
Full Time Top Sales Agent
Specializing in Co-ops and Home Sales
Weichert Realtors, H.P Greenfield
Brooklyn, NY 11203

Cell: 646-725-5941
Email: HelpMeRhonda1919@yahoo.com

http://www.trulia.com/profile/RhondaRealEstatePro/
Join Me On Twitter: http://www.Twitter.com/HelpMeRhonda09
0 votes
Robbie Vaughn, Agent, Mineola, NY
Tue Nov 24, 2009
Great advice so far!!

Here's part of a general list I created...hope it helps:

SELLING YOUR HOME (an Overview)

5. Broker finds a buyer. Buyer usually makes an offer by submitting a real estate binder.

Real Estate Binder- An agreement intended to evidence a modest payment toward the purchase of real estate as evidence of good faith on the part of the purchaser and acceptance by the seller. (A real estate document generally used in residential transactions).

6. Seller accepts or rejects the offer.

7. Assuming the offer is accepted, the buyer typically hires an engineer/home inspector.**

8. Once both parties have agreed to move forward, the seller's attorney drafts and sends a proposed contract to Buyer's attorney.

9. Contract terms are negotiated by the attorneys.

10. An executed contract and down payment are returned to the Seller's attorney. Seller signs and returns same to buyer's attorney.

11. Buyer's attorney orders a title examination & survey.

12. Once all issues are resolved a real estate closing is set.

Real estate closing- The transfer of the real estate title from seller to buyer according to the sales contract. All parties, as well as a title closer and bank attorney, arrive to consummate the transaction. The buyer receives the title and keys to the real estate and the seller receives the balance of the purchase price.

*The above is merely an overview of a real estate transaction. Additional and/or different steps may be required during a particular transaction. This is not legal advice.

**The inspection can be done after step 10 if the parties agree. This is usually accomplished by placing an "Inspection contingency" into the contract.

Robbie L. Vaughn,
Long Island Real Estate and Bankruptcy Lawyer
70 West Main St.
East Islip, NY 11730
631-277-4907 (Phone)
631-277-4908 (Fax)

Disclaimer:
No Attorney-Client or Broker-Client relationship is formed until we have a signed agreement. This is not intended as legal advice. Please verify any and all information provided to you.
Web Reference:  http://Rlvaughnlaw.com
0 votes
J R, , New York, NY
Mon Nov 23, 2009
The next thing to do is talk to an attorney.
0 votes
Kimberly Bra…, Agent, Venice, FL
Mon Nov 23, 2009
Please get a real estate lawyer
0 votes
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