buying in brooklyn, does it have to be so painful?

pinkdonkey

hello. i'm interested in buying an apartment with my fiance in brooklyn. this would be our first home. we're seconds away from signing a contract, but find the whole process disgusting. It all began with the realtor, whom has been fake and uninformative. she failed to mention to us that the seller wants to stick us with all the transfer tax and seller's lawyers fees. is it normal for buyers to be responsible for this in new york city.
Is it also common for a realtor to be unavailable and inconsiderate of the buyers time (this is under the terms the the realtor is working for the seller, not us), even after our offer has been accepted?
This is a sponsor unit. Does anyone think because of that the seller is unmotivated to sell under noticiable terms?
i just feel like everyone in the real estate world has a secret society and is ready to make this as unpleasant as possible to anyone.
Does buying a home have to be so painful?

brooklynjack

Well I found this troubling is differeent ways. First, no, it isn't normal for the buyer to pay all those fees but as this is a sponsor unit so they can and do ask for those kinds of concessions. Remember you always pay more for a sponsor unit than a resale because you are usually not required to go through the board approval process.

What does your lawyer say about all this? If you don't have one get one before you sign. In the entire process your lawyer is the only person on your side.

ana.log

pinkdonkey wrote: she failed to mention to us that the seller wants to stick us with all the transfer tax and seller's lawyers fees. is it normal for buyers to be responsible for this in new york city.
Is it also common for a realtor to be unavailable and inconsiderate of the buyers time (this is under the terms the the realtor is working for the seller, not us), even after our offer has been accepted?

this is something the attorney would do as part of the process of reviewing and finalizing your contract. it makes no sense to perform a real estate transaction without a good attorney. it isn't really the realtor's job to be familiar with the terms of the contract, or to negotiate the contract for you. as you say, the realtor is working for the seller. there is some benefit to having one's own (buyer's) realtor, so that you don't have to deal with anyone first-hand, but lacking that (and either way) an attorney is absolutely essential.

Edited to add: this link to an article on transfer taxes from the NYT - http://www.nytimes.com/2007/01/26/nyregion/26tax.html?ex=1170478800&en=ef393f1e62a2d359&ei=5070&emc=eta1

Transfer taxes are typically paid for by the buyer; seller's attorney fees are not however.

anonymous

I work as a mortgage broker, most contracts we have seen in the last
few years for sponsor units have the all the sponsor's costs pushed back onto the buyer. Sponsor units are desirable esp in a co-op, because board approval is not needed and your mortgage financing is not limited by the board guidelings.

The closing costs on a co-op will be substantially less than that of a
similarly priced condo. For sponsor condo units we have seen that some contracts require that the purchaser use the sponsor's title company and
defray part of the sponsors costs.

You need a good real estate attorney that knows how to negotiate and
protect your interests. Do not use a friend or relative not matter how
cheap their fee if they are not actively involved in local real estate.

anonymous

My boyfriend and I just signed a K on an apartment in Brooklyn. The entire process is horrible b/c you really can't trust anything the brokers say. That said, our attorney was phenomenal and negotiated the K so that the sellers paid the transfer taxes etc., even though we too bought a sponsor unit. I don't think I could have done it (or continue to do it) without her. For something as serious as home ownership I highly recommend calling in the professionals. Good Luck! I can sympathize with you 100%

anonymous

A real estate transaction does not have to be painful or abusive. You need good people on your side, an attorney and mortgage officer that are willing to return your calls and answer any questions you have.

Be suspicious if the real estate broker will only work with you if you agree to use her lawyer and mortgage officer. If the sales agent wants to recommend someone, get at a minimum three names so you can find the person that fits your style.

A clause that is in many sponsor sales contract is that you must apply to their bank for financing. Their "bank" usually charges huge upfront fees
at application to discourage you from shopping around for a loan.

pinkdonkey

thank you to everyone that shared their insight. just knowing others out there have suffered as well brings a bit of comfort.
we did get a lawyer, and are spending a bit more than average for him, but i believe you get what you pay for. we'll see.
thanks for all the heads up on sponsor unit drama. perhaps it's easier than the scrutiny of a board. many have told me they felt quite violated after that experience.
regardless, see you all in the neighborhood if i don't commit suicide beforehand.

bolletje

I've been trying to find an apartment I can buy these past few months and I was just having the same thoughts you are. I am a serious buyer, with mortgage pre-approval and down-payment money ready but I get the feeling that when you are looking to drop less than half a million dollars on an apartment in this town you are often stuck dealing with the dregs of the real estate world.
I am just about ready to give up for a few months because I am getting so frustrated with it all!