CO-OP - How much cash do i need?

I get this question all the time. So, let me help you prepare!

Every buyer is different as is every property in New York City. But there are some ways to at least prepare for all the expenses that come with buying a Co-Op.

The short answer you will probably find if you Google this is 2 to 3% of the purchase price. But, that’s just typical direct expenses and does not account for the full cost of buying and moving into your new home. Read on!!

If you’re financing, the majority of Boards require buyers to contribute 20% in cash and finance 80% of the purchase price. The amount required can be less or more but should be clearly stated in the listing.

There are a group of fees associated with getting a mortgage loan:

Loan origination fee.

Property Appraisal fee.

Credit Report.

Mortgage processing fee.

Bank attorney fee.

Recognition agreement fee.

UCC-1 filing fee.

Buyers Attorney fee.

Move in deposit (required by most Boards).

Home Owners insurance.

Post closing cash on hand. Every Board has their own ideas here but as a guide I would suggest you think of 12 months worth of your Mortgage and Maintenance payments. (reviewed by most Boards).

Moving expenses.

Any pre-move work in apartment (Paint, floors, appliances, lighting, etc)

If it seems a bit overwhelming just remember, every single buyer in NYC has gone through or will go through this. I suggest that when you’re ready to buy, review your entire financial position with your agent and be prepared.