REBNY Submit Offer Form Calculator
Once you find a suitable NYC condo, co-op, or townhouse, you may feel the hard part is over. After all, your search may very well have taken months. However, you have reached a crucial stage. The process for submitting an offer is not merely about a price you are comfortable with and one you think the seller will accept. The next step will be to prepare the submit offer form that includes the price you are willing to offer and transparency regarding your financial strength in getting the deal done.
How to Prepare the Submit Offer Form
Use our Submit Offer Form calculator below to enter your offer terms, including purchase price, percentage down, and any contingencies. The form also requires your financial disclosure of income, assets, and liabilities. Our calculator will estimate your totals quickly, populate and generate a PDF via email or download. When submitting your offer, you should also include your pre-approval letter when financing.
ELIKA New York: Real Estate Calculators
Table of Contents
Considerations Before The Submit Offer Form
If working with an exclusive buyer’s agent, rest assured they are on your side and have a fiduciary duty to you. An expert buyer’s agent does a lot of research, such as the seller’s motivation, prepares a comparative market analysis, and considers market conditions in advising you before submitting an offer.
The offer price
Crafting an offer price is part art/part science. It starts with using comparative market analysis, with specific information more heavily weighted. A similar-sized unit in the same condition on the same floor is the most valuable.
While many buyers fret over the proper price, trust your buyer’s agent experience and expertise. After all, they know the market and have done this plenty of times.
People tend to focus on the offer price, but other components can affect your offer’s likelihood of acceptance.
Your offer needs to include how much you plan on financing as a percentage of the purchase price. Co-ops have special rules, and it is not unusual for New York City boards to require a minimum 20% down payment. You and your agent will know how much the building expects you to put down before viewing.
Many co-ops also have rules on how much liquidity you need post-closing. It can affect how much you can put down as a deposit. Boards are looking for you to have enough post-closing liquidity, typically one to three years’ worth of maintenance and mortgage payments post-closing. Additionally, most co-ops want no more than a 30% debt-to-income ratio.
Cash offers put you in the best competitive position with greater leverage for negotiations. After all, cash is king. As your down payment goes down, so does the strength of your offer. After that, those without a mortgage contingency (the deal depends on you obtaining a mortgage within a certain period) come next.
You must obtain pre-approval from a lender before submitting an offer. Your offer should include your pre-approval letter and evidence that you have the down payment and sufficient cash reserves. It allows you to become more comfortable with the amount you can borrow. It also gives the seller more confidence since they know you have been approved for a loan, easing their mind.
Not as strong as a pre-approval letter. Pre-qualification is less formal, with the lender determining how much of a mortgage you qualify for without verifying it with supporting docs. If you plan on making an all-cash offer, send in the proof that you can fund the purchase and the closing costs.
Mortgage and Other Contingencies
We’ve already explained that contingencies weaken your offer, including a mortgage contingency. The more complicated the offer, the weaker your offer. Naturally, sellers dislike contingencies. However, there are other contingencies you can place on your offer. In a buyer’s market, you may get away with certain conditions on your offer since there might not be any competition. Since this is a seller’s market below $3 million, you should consider whether you should put in any contingencies.
Typical contingency buyers like to put in involves selling your home. Although common in other cities in New York is not an option, remember that if there is another offer similar to yours that does not have such a contingency, they will not likely accept yours. Naturally, if you are a first-time homebuyer, you won’t have to put this in and have a potential advantage over an existing homeowner.
Your offer also includes a date you would like to close. The more flexible you can be, the better your offer and the likelihood of getting your offer accepted.
Your legal name and address belong on the offer. There is specific other information, some of it optional to include. You will also need to add your attorney’s contact information to show the seller you are ready to move fast should you reach an accepted offer.
Step-By-Step to Making an Offer
The offer process for a home can be stressful. Indeed, no one wants to overpay, balanced against potentially losing out on the particular apartment. There is a wide variety of negotiating strategies, and you may deploy multiple approaches for different homes you want, depending on the market conditions and the seller’s motivation.
Below we discuss how to prepare your offer for the best chance of accepting it.
A written offer is always the best.
In New York, an offer to purchase may be; presented in writing or verbally, but you should utilize the former method. When submitting an offer on a co-op, we recommend including a letter with your offer. Further suggested that you send supporting financial statements and a mortgage pre-approval letter, as discussed above. Alternatively, the seller’s agent may request you to fill out a submit offer form.
What price to offer?
There are many approaches to take when deciding what price to offer. Your buyer’s agent can be an immense help. They know the market and work for you; beyond that, they owe their fiduciary duty. They must pass any information to you to help tilt the price in your favor.
When making an offer, it is essential to know the market. If it is a buyer’s market, any bid is welcomed. In a seller’s market, you may be competing with other offers, some of whom may be irrational. You and your agent should decide what to do if a bidding war breaks out.
Estimating the fair market value
Your agent should provide you with a detailed comparative market analysis. The selling price should be in line with like-kind comparable properties. The same apartment one floor above or below is the best comp, assuming it is similar and does not have a view break if higher in the building. If such a comp is unavailable or too stale, a similar apartment within the building is the second-best alternative. Finally, you can use a similar apartment within the same zip code if these do not work.
It would help compare the recent sale prices to the seller’s list price. The listing price is just a price. However, if unique traits add value, such as a new kitchen, these should enter into the equation. Alternatively, if the apartment needs renovations, you should obtain a quote for the work and factor it into your offer.
You can also do your homework on the Internet and supplement your agent’s information. Accuracy varies from consumer sites, so having a buyer’s agent validate the numbers is recommended.
Consider the seller’s pricing strategy and motivations.
Don’t assume the seller has priced in a buffer for negotiation. There are different pricing strategies. Some do not wish to bargain and price it accordingly. Others may underprice it in the hopes of creating a bidding war, which makes a comparative market analysis even more critical since it will allow you to form your best and final offer.
With wiggle room to negotiate, the property’s estimated fair market value and offer in the ballpark enable both sides to meet in the middle to reach a fair deal. After your initial offer, you will likely receive a counter. Again, this depends on the market, putting the ball back in your court.
Certain factors can give you more confidence to submit a lower offer than you usually would. These are instances of a divorce, an estate sale, or if the property is vacant.
Presenting a lowball bid is tempting. This may be the best strategy based on market conditions or the seller’s position. However, it would help if you were prepared to lose out on the property, particularly given the current market. If you don’t receive a counteroffer, it is essentially game over.
What to expect when negotiating
Getting the co-op board’s approval is an essential part of the process. Negotiations can also go beyond money. A lower offer may win based on the seller’s knowledge that you will pass the board. In New York City, with the preponderance of co-ops, an agent will also have to present your profile to the listing agent and seller.
Terms, conditions, and inclusions
Aside from the price, your offer should include all the terms and conditions of the purchase. Closing costs in a resale are rarely negotiable, unlike the scenes you may see on television shows appearing on HGTV and other networks. However, if you seek to buy a new development or a sponsor/developer, it is good to ask for city and state transfer taxes to be paid, although this depends on market conditions.
Other standard items include the address and how you will finance (e.g., all cash, subject to a mortgage). In New York, unlike other states, no deposit is required when submitting an offer. The down payment is usually 10% and is due at contract signing.
You should also include specific items that you may want. If you like the furniture, ask for these items to be part of a side deal. You will have to pay a sales tax included in the sales contract.
Depending on the situation, a time limit may or may not be part of the offer. Your desired closing date for completing the deal will also be part of the proposal.
Mortgage or Home inspection contingencies
You may also wish to include certain contingencies. Two standard ones are obtaining adequate financing and a home inspection. Unlike other US cities in NY, you are not recommended to request a contingency in which your home must sell before closing. A guaranteed way to have your offer not considered.
Pay cash or put more money down when possible.
For most co-ops, buyers most qualified to pass the board application and interview are most important, not cash or financing. An all-cash buyer is in a stronger position when purchasing a condo. However, many iconic luxury co-ops do not if the co-op allows mortgage financing.
When financing, there is no point in making an offer if not pre-approved for a mortgage. Should another buyer not have theirs ready if you compete against another offer when possible, give you a more firm hand. Consider putting more money down to seal the deal.
Many complex factors go into making an offer; a wide variety of offer strategies exist. While you can be dispassionate with an investment, it is tough to do so for a home. A buyer’s agent, who is unemotionally tied to the purchase, serves as a valuable conduit to do the negotiating on your behalf. An experienced buyer’s agent who has seen the different types of markets and done dozens of deals can assess the situation and guide you in the future to put forth a reasonable offer and win a bid.
Submit Offer Form PDF Template Download
When buying a resale in a Condo and Co-op building, agents often require a REBNY Financial Statement or Submit Offer form to be included with your offer package. The financial statement displays your assets, liabilities, income, and expenses. The key is to have your financials in order since this is relatively detailed.