Date: May 12, 2015 Location: Jay Suites - 31 W 34 Street, 7th Floor

Buyer & Seller Event

RES Manhattan & RES Brooklyn NY Licensed Real Estate Broker

31 West 34th Street, Ste 8002, NY, NY 10001 t: 212.206.9082 f: 718.873.2394

resnewyork.com

Co-ops vs Condos

Condominiums (condos) Real property, owner receives a deed

Cooperatives (co-ops) Personal property, own shares in corporation and receive proprietary lease to specific unit

Individually assessed & taxed

Easier process to buy, sell & lease

Investor & second home friendly

One resident’s actions do not threaten the entire building

Less supply, especially by neighborhood

Higher purchase closing costs due to mortgage recording cost & title insurance

Higher supply - roughly 75% coop vs condo in NYC

Can be slightly less expensive than comparable condo

Lower purchase closing costs (2%-4%)

Less investors, more stable pricing in down markets

Higher owner occupancy rates, less renters

Stricter purchase & sublet policies

Board approval process for sales & leases

Many co-ops have mortgage on building & land

default and over-leverage risk

Purchase Timeline (60-120 days)

Week 1 • Get pre-qualified w/

mortgage broker or banker

• Determine price range you can afford & discuss ideal buying criteria with your RES agent

• Determine strategy with your RES agent and begin viewing listings

Week 2 • View properties with

your RES Agent

• Other pre-offer preparation with your RES agent

• Choose a real estate attorney

Week 3 • Negotiate offer &

acceptance

• Transaction memo to Buyer & Seller attorney

Week 5 • Execute contract and

fund 10% deposit

• Begin working on loan application (if applicable)

• Prep & submit condo board application or begin working on board package for co-op

Week 4 • Contract negotiation

Week 6-10 • Appraisal

• Loan application

• Prep & submit condo board app (or begin co-op app)

• Loan commitment

• Closing for cash purchases

Week 10-14 (if co-op)

• Submit co-op app (if applicable)

• Co-op approval

Week 10-12 (or 14-16 if co-op)

• Bank & attorney closing closing preparation

• Final Walk-through

• Closing

Market Overview - Inventory Shortage

Market Overview - Bidding Wars

Illustration by Mark Nerys, NY Magazine, Published May 16, 2010

Setting Yourself Apart

Step 1 Assemble Your Team • Mortgage Broker • Real Estate Agent • Attorney

Step 3 Be Patient

• Don’t rush to accept • Best overall buyer,

not nec. best price • Expedite contract

Step 2 Be Prepared

• REBNY Financial • Documents ready • Terms & Timeline

Step 3 Offer Presentation

• Be Aggressive • Flexible Terms • Inspection

Step 1 Assemble Your Team • Real Estate Agent • Attorney

Step 2 Be Prepared

• Repairs • Staging • Pricing • Showings

Buyer Tips

Seller Tips

Rent vs Own

Owning

Accumulate Equity

Tax Benefits

Predictable payments

Home ownership & Community

Long-term commitment

Property maintenance

Requires significant up-front capital

Tied to location

Less up-front capital required

Flexible and short term

Not responsible for maintenance

Sometimes lower monthly cost

No equity accumulation

Subject to landlord or market rent increases

More transient community in rentals

Renting

Thank You

Illustration by Mark Nerys, NY Magazine, Published May 16, 2010