How Long Does It Take to Close on a Condo in NYC?

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How long does it take to close on a condominium purchase in New York City? We will demystify this topic in the following video. I'm Nick at Hauseit, the largest For Sale By Owner and Buyer Agent Commission Rebate company based here in New York City established in 2014. Visit our website https://www.hauseit.com to learn about ways to save money if you're buying a condo here in New York.

Now let's begin: so how long does it take to close on a condominium apartment in New York City Well the direct answer is around 2 months from the time you sign a contract. Now if you sign a contract, it means you've found an apartment and it means you've submitted an offer, negotiated completed buyer due diligence and negotiated the purchase contract itself, so that two-month estimate is from the time you are fully in contract to buy a specific apartment. It is also possible that you can close much quicker than two months if you happen to be paying all cash, and the reason for this is because the mortgage application process can take anywhere from 3 to 4 weeks, so from the moment you're in contract the first 3 to 4 weeks of the process is really just submitting your documents to the bank and waiting for them to provide you with the commitment letter.

If you're all cash you can basically skip this first 3 to 4 week period of that two-month estimate. Thereby reducing the estimated time to closing to something closer to a month. You may be asking if I'm all cash why can't I close tomorrow? Well it's a good question and the reason being for condos in particular is that you still have to go through the application process with the condominium. The majority of condos in New York will still require you to fill out an application which is quite similar to what you'd submit with a co-op.

The main difference is that the condo has a specific amount of time that they are entitled to use to vet the application where as coops essentially have no requirement as to how quickly they must review and respond to you. So most condominiums in the actual offering plan it will state that the building's board of managers has say 20 or 30 days to review and approve your application. In real estate it's actually called issuing the waiver of the right of first refusal and we'll talk about that in more detail in a separate video. Co-ops on the other hand usually give you an estimate of 4 to 6 weeks but the reality is they can take however long they want.

We've seen it take 12 weeks or more for the coop to actually just review an application and invite the applicant for an interview but with the condominium, you have complete certainty because usually if the condo takes more than the allotted period of time say 20 or 30 days, under the terms of the offering plan the purchaser is allowed to just proceed with the purchase and schedule a closing date in earnest. So just to recap figure around 2 months to close on a condo in New York from the time you are in contract the first 3 to 4 weeks will be receiving the commitment letter and handling the loan application process and thereafter you will submit the condo application assuming you have it ready which you should.

And therefore you would just wait another 20 or 30 days for that official approval from the condo board which will allow you to schedule the closing. If your all-cash you would need perhaps a week to complete the application and you'd submit that and then the clock would start ticking that 20 to 30 day period where the condo needs to review the application and issue their waiver of right of first refusal. So with an all-cash purchase for a condominium in New York, you can close as quickly as 4 weeks.

It could even be quicker but you never want to rely on that because again the condo boards and co-op boards vary widely in their approach to doing business. Some are very responsive some are super slow and there's really no way to predict it. We hope this video was helpful. If you are looking to buy in New York, consider checking out our website: https://www.hauseit.com

Save up to 2% or perhaps more on your closing costs and the cost of your home through a Hauseit Buyer Closing Credit.

Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/
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Hauseit LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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