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Buying a house with cash in NYC is faster and simpler than purchasing a home with a mortgage.
All cash buyers do not have to deal with the loan approval process and can often close in under 30 days compared to 60 to 90 days if financing.
The first step to buying a house with cash is to choose a buyer’s agent.
Having a buyer’s broker is important if you’re an all cash buyer because it shows listing agents that a real estate professional has vetted you.
Furthermore, a buyer’s agent doesn’t cost you anything as the buyer.
Sellers always pay the commission which is fixed in the listing agreement before the property hits the market.
This commission is split equally between a buyer’s agent and a listing agent.
If the buyer doesn’t have an agent, the listing agent keeps both sides of the commission.
As a result, it would be silly for you to pass up the opportunity for free guidance and representation from your own buyer’s agent.
Most buyers understand that having a buyer’s agent is akin to using it or losing it, and as a result over 90% of buyers end up being represented by their own agent in NYC.
Once you find a great real estate agent and he or she has found you the perfect home, it’s time to submit an offer.
To submit an all cash offer in NYC, you’ll need to provide the following information:
Offer price, Contingencies, if any,Preferred closing date, if any, Proof of funds, Attorney contact information, REBNY Financial Statement.
Some buyers who are keen on privacy may try to get away without providing the REBNY Financial Statement.
However, listing agents for both condos, co-ops and houses will usually expect to see this even if you’re purchasing all cash.
Co-op listing agents have a legitimate need to see your financials
because they’ll need to make sure that you meet the building’s debt-to-income and post-closing liquidity requirements.
Once you have an accepted offer, it’s time to complete buyer due diligence and sign a purchase contract.
Your lawyer will order a title search and possibly a survey report if you are buying free-standing property.
If you are buying a co-op or a condo apartment, your lawyer will review the building’s original offering plan,
the building’s financial statements and budget, any amendments to the original offering plan, as well as the board meeting minutes.
Once everything is reviewed to your attorney’s satisfaction, you will sign the contract and make a deposit which is usually 10% of the purchase price.
So, how quickly can you close on an all-cash purchase once you’ve signed a contract?
The closing for an all-cash deal usually happens within one to two months of the date you sign the contract.
Cash closings are faster because you do not need to wait around for the appraisal, the mortgage underwriting process,
a mortgage commitment letter and a clear to close from the bank.
The closing process is even faster if you’re buying a house instead of an apartment.
That’s because you also won’t have to deal with any sort of purchase application, condo right of first refusal or co-op board approval process.
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