Navigating the NYC Real Estate Market
An interactive guide to understanding the complexities of buying a home in New York City. Explore the process, compare property types, and estimate your costs.
Get Started: Your Team & Prep Work
A successful purchase starts with a strong team and solid financial preparation. This section introduces the key players you'll need and the essential first steps to take before you even start your search.
Real Estate Agent
Your market guide, negotiator, and networker.
Provides market expertise, helps find properties, negotiates offers, and recommends other professionals. A REALTOR® adheres to a strict code of ethics. Traditionally, their commission is paid by the seller, but this is changing.
Real Estate Attorney
Your legal shield. Essential and non-negotiable in NYC.
Drafts and negotiates the contract, conducts title searches, performs due diligence on the building's financials and legal status (especially for co-ops/condos), and oversees the closing.
Mortgage Broker/Lender
Your financial partner.
Reviews your finances to provide a mortgage pre-approval letter, a critical document that proves your purchasing power to sellers and is necessary for making a serious offer.
Home Inspector
Your property detective.
Evaluates a property's structural integrity and major systems (plumbing, electrical, etc.) to identify potential issues before you are legally bound by a contract.
Financial Prep
The foundation of your search.
Before looking at homes, assess your finances, determine your budget, and get a mortgage pre-approval. This demonstrates you are a serious, capable buyer. Explore programs like SONYMA for potential assistance.
Co-op vs. Condo: The Defining Choice
The most critical decision you'll make is choosing between a co-op and a condo. This choice impacts everything from ownership and financing to monthly costs and resale. Use the toggles and charts below to explore the fundamental differences.
Cooperative (Co-op)
Ownership
You buy shares in a corporation that owns the building, granting you a proprietary lease for your unit.
Board Approval
A rigorous, often invasive interview process. The board has wide latitude to reject applicants to protect the building's financial stability.
Financing
Stricter. Requires higher down payments (20-50%) and low debt-to-income ratios. You get a "share loan," not a traditional mortgage.
Subletting & Resale
Highly restrictive. Boards often limit how long and how often you can sublet. Resale requires full board approval for the new buyer.
Condominium (Condo)
Ownership
You own your unit as real property and receive a deed, plus a share of common areas.
Board Approval
Less restrictive. The board's "right of first refusal" is common, but they generally cannot unreasonably deny a qualified buyer.
Financing
More flexible. Traditional mortgages are available, with down payments as low as 3-5% possible.
Subletting & Resale
Generally lenient. Fewer restrictions on renting your unit, making them better for investors. Simpler resale process.
Typical Down Payment
Typical Buyer Closing Costs
The Buying Process: A Step-by-Step Timeline
The path to ownership in NYC is a structured journey that typically takes about three months. Click on each step below to understand its role in the process, from making an offer to getting the keys.
Costs & Fees: The Financial Picture
Beyond the purchase price, you'll face significant closing costs. Co-op and condo costs differ dramatically. Use our interactive estimator to see a breakdown of what you might pay.
Closing Cost Estimator
Estimated Cost Breakdown
Total Estimated Costs: $0
Due Diligence: Protecting Your Investment
This is the critical investigation phase. For a house, you inspect the physical structure. For a co-op or condo, your attorney must also investigate the building's financial and legal health. Click to expand the checklist items.
Essential for all property types, but most comprehensive for houses/townhouses. Your inspector checks the foundation, roof, plumbing, HVAC, and electrical systems. They also look for environmental hazards like asbestos or lead paint. For co-ops/condos, the inspection focuses on the unit's interior systems.
Your attorney's crucial task. They review the building's financial statements, reserve fund health, board meeting minutes (to uncover disputes or planned projects), and ensure compliance with local laws (like facade inspections). A weak reserve fund can lead to surprise "special assessments" for owners.
You must understand the rules you'll be living by. This includes policies on pets, renovations, subletting, and noise. Your attorney will also check for a "right of first refusal," which can impact the sale.