The NYC Condo Buying Process: 6 Steps
Get Pre-Approved (Before You Search)
In NYC, sellers expect buyers to be pre-approved before making an offer — not just pre-qualified. Get a full pre-approval letter from a lender who knows the NYC market. For condos, standard mortgage financing applies: you can put as little as 10% down, though 20% avoids PMI. At the 2026 rate of approximately 6.875%, a $600,000 mortgage costs about $3,941/month.
Have 2 years of tax returns, recent pay stubs, 2–3 months of bank statements, and a list of assets ready. The pre-approval process takes 3–7 days if your documents are in order.
Hire a Buyer's Agent and Real Estate Attorney
In NYC, buyer's agents are paid by the seller (typically 2.5–3% of purchase price split from the listing side). You pay nothing for buyer's agent representation — there is no reason not to have one.
Hire a real estate attorney before you make an offer. Unlike most of the US, NYC attorneys are central to the transaction from the start. They review the offering plan, negotiate the contract of sale, coordinate with your lender, and handle the closing. Budget $2,000–$4,000 for attorney fees.
Search, View, and Make an Offer
Once pre-approved, search actively. NYC inventory moves fast — desirable units in good buildings often go to offer within 2–4 weeks of listing. When you find the right unit, your agent will submit a written offer letter with your pre-approval and proof of funds. Offers are not binding in NYC — either party can walk away before contract signing.
Negotiate not just price but terms: closing date, inclusions (appliances, light fixtures), and whether the seller will make any repairs. In a buyer's market, you may get 3–7% off asking; in a competitive market, expect to bid at or above ask.
Attorney Review and Contract Signing
Once your offer is accepted, your attorney reviews the contract of sale and the building's offering plan and financials. This typically takes 1–2 weeks. Key things your attorney looks for: pending litigation against the building, special assessments, reserve fund adequacy (should be at least 10% of annual budget), and problematic contract clauses.
At contract signing, you pay 10% of the purchase price as a contract deposit. This is held in escrow — you lose it if you walk away without a legal reason (like a failed mortgage contingency).
Mortgage Application and Due Diligence
After contract signing, formally apply for your mortgage (you've been pre-approved, now you're applying for the actual loan). Your lender will order an appraisal. If the appraisal comes in below purchase price, you can renegotiate, pay the difference in cash, or walk (if you have a mortgage contingency in your contract).
Simultaneously, complete your due diligence: home inspection ($400–$700), review of the building's financials, and check that no major assessments are pending. For a condo, there is no board interview — a significant advantage over co-ops.
Closing
Condo closings in NYC typically happen 60–90 days after contract signing. You'll attend closing with your attorney, the seller and their attorney, and the lender's representative. Bring a certified check or wire transfer for closing costs and any remaining down payment.
At closing you'll sign dozens of documents and receive the deed and keys. The whole process from accepted offer to closing is typically 3–5 months.
Typical Closing Cost Breakdown for NYC Condos
| Cost Item | Typical Amount | Notes |
|---|---|---|
| Mortgage recording tax | 1.925% of loan amount | On loans over $500K; 1.8% under $500K |
| Title insurance | ~0.5% of purchase price | One-time, protects against title defects |
| Mansion tax | 1%–3.9% of purchase price | Applies on purchases $1M+; graduated scale |
| Attorney fees | $2,000–$4,000 | Flat fee common; negotiable |
| Bank fees | $1,500–$3,000 | Origination, underwriting, appraisal |
| Move-in fee | $500–$1,500 | Building deposit; often refundable |
| Misc. (title search, etc.) | $1,000–$2,000 | Recording fees, UCC searches, etc. |
Example: Buying a $900,000 condo with 20% down ($720K mortgage). Mortgage recording tax: $13,860. Title insurance: ~$4,500. No mansion tax (under $1M). Attorney: $3,000. Bank fees: $2,500. Total closing costs: approximately $25,000–$28,000, or about 3% of purchase price.
What to Look for in a Condo Building
- Reserve fund: Should be at least 10% of the annual operating budget. Ask for the most recent financial statements.
- Pending litigation: Any lawsuit against the building should be a red flag — it can affect your financing and future resale.
- Owner-occupancy ratio: Buildings with more than 50% rentals may face stricter lender requirements or higher rates.
- Common charge history: How much have charges increased over the past 5 years? Steady increases of 3–5% are normal; large jumps suggest financial trouble.
- Building age and condition: Newer buildings may have expiring tax abatements; older buildings may have capital improvement needs.
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NYC Paycheck CalculatorFrequently Asked Questions
How long does it take to buy a condo in NYC?
Typically 3–5 months from accepted offer to closing. Contract signing takes 1–2 weeks after offer, then 60–90 days to close once the contract is signed.
What are the closing costs for a first-time condo buyer in NYC?
Typically 3–6% of the purchase price. On a $750,000 condo that's $22,500–$45,000. Major items include mortgage recording tax (1.925%), title insurance, attorney fees, and lender fees.
Do I need an attorney to buy a condo in NYC?
While not legally required, an attorney is standard practice and strongly recommended. NYC real estate contracts and offering plans require legal expertise. Expect $2,000–$4,000.