How Much Time Is There Between Offer and Closing in NYC Real Estate?

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How much time is there between offer and closing in New York City real estate? We’ll demystify this topic in the following video, I'm Nick at Hauseit and visit our website https://www.hauseit.com to save money when buying or selling real estate here in New York City, so let's get started.

A general estimate for how much time there is between offer and closing in New York City real estate is 3 months. However, the timeline from an initial offer to closing on a real estate deal varies greatly on a number of factors. These variables include the property type such as a condo versus co-op, whether you're taking out a mortgage or paying all cash, how extensive the building's board application is, how quick the building and the board process your application and the general responsiveness of the seller and both real estate lawyers on the transaction.

Here are the steps from author submission to closing. Making an initial offer. Submitting an initial offer is a relatively straightforward process assuming you've prepared your offer documentation in advance. The offer process itself starts with your buyer’s broker reviewing your offer terms and documentation with you. Your buyer's agent will usually have a call with a listing agent and prepare some pricing thoughts on the property to help you formulate a negotiation strategy. The offer itself and supporting documentation is typically emailed to the listing agent. It can take anywhere from a day to a few weeks from the time of your initial offer to having an accepted offer. How long this process takes depends on a number of factors including the amount of buyer competition and the responsiveness and demeanor of the seller.

Accepting an offer. Once you've accepted an offer, the listing agent will circulate a deal sheet to both real estate attorneys and the buyer's broker. The deal sheet is a non-binding summary of the terms you've negotiated on the deal and the purpose of the deal sheet is to give the attorneys enough information to begin the next steps of the process. And these steps include the drafting of a contract by the sellers attorney and the commencement of due diligence by the purchasers lawyer. Once the deal sheet has been circulated, the listing agent will usually provide the buyer's attorney with the requisite due diligence documentation. These documents include the offering plan and the building financials in the case of a condo or co-op.

The buyer’s attorney may also review the board minutes, house rules and the purchase application and finally the buyer’s attorney will usually send the building's managing agent a due diligence questionnaire for completion. Contract review. From the time the deal sheet is circulated, it usually takes the seller's attorney 1 to 3 business days to prepare and send an initial draft of the real estate contract and writer to the buyer's attorney. The length of the contract review period can take anywhere from a few days to a few weeks. On average, it typically takes around 2 weeks to have a fully executed sale contract from the time the deal sheet is circulated.

Buyer due diligence. Buyer due diligence is handled in parallel with contract negotiations. This means that due diligence itself usually does not delay the buyer's ability to sign a contract. The most common delay in completion of due diligence results from the seller or listing agent failing to provide a copy of the offering plan to the buyer's attorney in a timely manner. Buyer due diligence is also frequently delayed in the case of buildings which do not have digital versions of the minutes for board meetings. In this case, the buyer's attorney needs to make an appointment to physically go to the buildings managing agent in order to review the building's minutes and this complex coordination can often add a few days to a week or more to the timeline. Mortgage application. It usually takes around 4 weeks to receive a mortgage commitment letter from the time you submit a completed application to your lender.

How long it takes to receive a commitment letter? It depends on how busy the lender is with other applications. Furthermore, if interest rates are low there may be a lot of refinancing applications which would put you further down on the list in terms of the timeline.

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