Luxury Apartments LIC

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SELLER’S GUIDE

Whether you are selling a home for the first time or you have already done this a few times, the home-selling process can be complicated. Our Seller’s Guide contains a lot of helpful information, such as seller’s tips, ideas for staging, step-by-step checklist, closing costs information, partner information, marketing advice and a real estate glossary.

Our experience, network, attention to detail, and knowledge of the current market trends will be invaluable tools for you in the process of selling your home. We will help you sell your home for the maximum price and the shortest period of time.

Get the complete pdf version of the guide here.

STEP-BY-STEP GUIDE

Step 1: Obtain Rules and Regulations / Necessary Documents / Financials

If you are selling a co-op or a condominium it is a good idea to obtain the rules and regulations from the managing agent. Additionally, request documents such as offering plan, prospectus, three years’ financials, co-op/condo guidelines, board package requirements, etc. from the managing agent and have them handy before you list your property on the market.

Step 2: Retain a Real Estate Attorney

Before coming on the market, you will need to select an experienced real estate attorney to represent your interests. Please interview and find a Real Estate Attorney that you like and who is going to look out for your best interests.

Step 3: Sellect a Listing Agent

A listing agent represents you and has a fiduciary responsibility to look out for your best interests.

Step 4: Prepare Your Home for Sale

Prepare your home for sale by cleaning and decluttering it. Consider hiring a professional stager to stage your home for showings or at least ask your Luxury Apartments LIC agent for help and feedback. Make sure your home is clean and in top condition. Display some fresh flowers, it always looks good. Make any necessary repairs. If you're selling a home where pets live, you might want to make temporary, alternate plans for them. You only get one chance to make a great first impression.

Step 5: Launch Marketing Campaing and Start Showing Your Home

Use your Luxury Apartments LIC agent for help with professional photos and listing details/description. Launch marketing campaign. Hold open houses and arrange private appointments. Allow your agent to schedule showings at the time of day when your home looks best. If necessary, tweak marketing to increase traffic. Make sure that your listing is posted online. Your agent should be advertising your property on as many online platforms as possible.

Step 6: Manage Negotiations and Offers

The buyer's agent will prepare an offer letter, the REBNY financial form and his client's pre-approval letter. These documents will be subited to you and your agent. The offer from a buyer is made either orally or in writing through your real estate agent. You may accept or counter the offer as part of a price negotiation. Your Luxury Apartments LIC agent will help with this and together (in case of multiple offers) you will discuss and agree on a strategy in order to obtain the best price and terms from the most qualified buyer.

Step 7: Prepare the Deal Sheet and Send Contract to Buyer's Attorney

Once the offer is accepted your attorney will prepare a contract of sale and submit it to the buyer’s attorney for review. In the meantime, the buyer’s attorney will exercise due diligence by asking for certain documents from you or your managing agent of the building (statement of the building’s financial condition, the building’s by-laws, offering plan).

Step 8: Buyer Signs Contracts and Put Down Deposit

With the approval and agreement of the buyer’s attorney, the contract of sale is signed by the buyer. At the signing, the buyer typically presents a deposit of 10% of the sale price and it is usually kept in your attorney’s escrow account until the closing date.

Step 9: Seller Signs Contracts

The contract and deposit are forwarded to the seller's attorney, who will obtain the seller's signature.

Step 10: Submit Board Package

The seller's real estate agent presents the buyer with the building’s board requirements and application forms, which may include:

-Application

-Signed financial statements

-Tax returns

-Bank statements

-Brokerage statements

-Personal and financial letters of reference

-Professional reference letters

-Contract of sale

-Bank financing documents (if financing).

The buyer’s agent compiles the board package and then sends it to the seller's agent. They will review it prior to submission to the building’s managing agent, who will present it to the building’s board of directors.

Step 11: Board Interview

The board will review the application and it may or may not ask for additional information. A co-op may turn down a buyer. If not, the board will arrange to interview the buyer. Participants should be forewarned that the time lapse between submission of the board package and scheduling of the interview varies greatly from building to building. Generally, condominium buyers are not interviewed.

Step 12: Schedule Closing Date

Once the board approves the application, the final step is the closing. Usually it takes place at the office of your building’s managing agent. The exact date should be flexible to accommodate everyone (the seller, the buyer, the attorneys, the banks, and the managing agent). It is best to allow for a potential delay of up to 30 days from the closing date specified in the contract.

Step 13: Final Walk-Through

The next step is a final walk-through, arranged through the seller's real estate agent. The goal is to ensure the property’s condition hasn’t changed since the last visit, that any agreed-upon repairs have been made and that the terms of the contract are met. A walk-through may be informal or more formal.

Step 14: Close and CELEBRATE!

SELLER'S TIPS

1: Financing and Budget Make Sure You Really Want to Sell and Look at the Financials

As the process of selling your property is quite challenging and, more importantly, expensive, make sure you really intend to sell your property before you get too far into it. It is important to take a closer look at the financials. What will be the price at which you will be selling and will this price get you to the profit or end result you are hoping for after you factor in all the money you have already spend on your current mortgage (if you have any), home improvements, etc.?

2: Sellers vs. Buyers Market

Try to research and understand whether it is a sellers or a buyers market. When there are more buyers searching for homes than there are homes available, this is a sign that you are in a sellers market. If this is the case, you will have more negotiation power and presumably, your home will sell faster. If you have time, and we are currently in a buyers market, maybe it will be a good idea to wait until we are in a sellers market again.

3: Home Improvements

Consider investing funds to improve your home. Some of the features buyers love are professional stainless steel kitchen appliances, heated floors, radiant heating, steam shower. Fresh paint is one of the cheapest but most important improvement you can make.

There are a lot of ways you can improve your home like changing the toilet seats, adding energy efficient windows, changing the kitchen faucets, fixing the floor, etc.

4: Price Your Home Competitively

This is the most important tip you can get. Work closely with your agent in deciding what the price of your apartment should be. Research comparable listings, hire an appraiser, listen to industry professionals - these are all the things that can help you accurately price your home

5: Stage Your Home to Sell

You should carefully arrange your furniture, organize and decorate in a way that appeals to the widest range of potential buyers.

Declutter, clean and depersonalize. A home which is too crowded can give the impression of being small or lacking closet space. Take out personal items and family photos, you would like for the buyer to forget that this home currently is someone else’s. It is important that the buyer pictures themselves in the home. For the same reason, you should put pet’s and children’s items away.

6: Be Flexible

If your home is not selling as fast as you had hoped, think about repricing and additional home improvements. You should also discuss your marketing and pricing strategy with your agent. Don’t be afraid to ruminate your relationship with your agent and hire a new one.

CLOSING COSTS

CO-OPS	CONDOS
Broker’s Commission: 6% of the purchase price	Broker’s Commission: 6% of the purchase price
Seller’s Attorney: From $1500 to $2,500 and up. (Paid by Seller, except sale by Sponsor)	Seller’s Attorney: From $1500 to $2,500 and up.
Co- op Attorney: $450 and up	Managing Agent Processing Fee: $650 and up
Managing Agent Fee: $650 and up	Application Fees: $500 - $1,000
Flip Tax (if any): Determined by co-op building	Move-out Deposit Fee: $1,000 (usually refundable if no damage)
Move-out Deposit: $500 - $1,000 (refundable)	New York City Real Property Transfer Tax: 1% for purchases price of $500,000 or less; 1.425% of price for purchase over $500,000 (Paid by Seller, except sale by Sponsor)
Stock Transfer Tax: $0.05 per share	New York State Transfer Tax: 0.4% (.004) of price
New York City Real Property Transfer Tax: 1% for purchases price of $500,000 or less; 1.425% of price for purchase over $500,000 (Paid by Seller, except sale by Sponsor)	New York State Capital Gains Withholding Tax: 8.97% of taxable gain on sale (only applicable to non-US residents)
New York State Transfer Fee: 0.4% (.004) of price. (Paid by Seller, except sale by Sponsor)	Property Condition Disclosure Statement: $500
New York State Capital Gains Tax Withholding: 8.97% of taxable gain on sale (only applicable to non-US residents)	Payoff Bank Attorney: $250 and up
Federal Withholding Tax (FIRPTA): 10% of purchase price (only applicable to non-US residents)	Federal Withholding Tax (FIRPTA): 10% of purchase price is withheld if Seller is a non-US resident
Bank Attorney Fees: $750 to $1000	Pick-up fees for Mortgage Payoffs: $200 per mortgage