How the NYC FSBO Closing Process Works for Home Sellers

The NYC FSBO Closing Process is surprisingly easy as long as you have accepted an offer from a qualified home buyer. Assuming that you have elected to sell via an agent assisted FSBO, you have already cleared the toughest hurdle to selling FSBO in NYC which is engaging the 90% of buyers’ who are represented by agents!

Accepting an offer as a NYC FSBO home seller

  • Full legal name of the buyer
  • Offer level and form of consideration (i.e. all cash, mortgage and down-payment amount)
  • Timing for the buyer on closing date
  • Contingencies, if any (i.e. mortgage contingency — needing a mortgage to be able to close)
  • Short biography of home buyer
  • REBNY Financial Statement
  • Pre-approval letter if the buyer will be financing with a mortgage
  • Proof of funds including a gift letter if applicable for “all cash” buyers

Depending on how lenient or strict you would like to be as the seller, you may require buyers and buyers’ agents to present much of this information in the standard REBNY Submit Offer form.

Assuming you are selling your NYC home via an agent assisted FSBO, your agent will forward you the offer email. In case you’ve received it directly and your agent was not copied, please reply all and copy your agent to confirm receipt of the offer. You should say something along the lines of “thank you for your offer, please let my broker and I review and come back to you.” It is important to copy your broker when you receive your offer, especially if the offer came from a buyer’s agent because the buyer’s agent will want to make sure the transaction isn’t anything too out of the ordinary. The main reason the buyer’s agent will want to see your listing agent involved is to make sure there is no question as to the buyer’s agent commission which is co-broked in REBNY’s RLS. Remember, when dealing with buyers’ agents in NYC there is no need to let them know you’re not paying full commission!

Running a best and final auction as a NYC FSBO home seller

If you have a sales background or feel savvy enough to provide color (i.e. information) to buyers, you can certainly call them to give them a feel for the competitive process and also get a sense of how hungry each buyer is for the apartment. Keep in mind, you will be dealing with professional real estate agents in many cases who are very experienced in these situations. As with all things sales related, this aspect of the NYC FSBO closing process is more art than science. If you would like an industry veteran to help you run the auction and guide you through the NYC FSBO closing process please sign up for professional broker consulting along with your flat fee RLS listing package.

It’s crucial to understand that real estate offers are not binding! It doesn’t matter whether they were made verbally or in writing. A deal only becomes binding for the buyer after he or she has signed the purchase contract and delivered said contract along with a contract deposit to the seller’s attorney!

What’s next after accepting an offer as a NYC FSBO home seller?

With that said, it’s customary and highly advisable (though not legally required) to have a real estate attorney manage your NYC FSBO closing process because the purchase and sale contract in New York City is quite lengthy and also negotiable versus the standard purchase agreements used in other states. In other states where purchase contracts are standard forms, the brokers typically prepare them without the involvement of an attorney at all.

The next step after accepting an offer is to request the agents involved to circulate a “deal sheet” to all parties involved. If you are selling via an agent managed FSBO and the buyer is represented, simply ask the buyers’ agent to fill out as much as he or she can and send it to you to fill out the rest. If you have purchased professional broker consulting then your listing agent can complete the deal sheet on your behalf and send it to all parties involved in the transaction.

The deal sheet is a standard Excel file which contains the contact information of all parties involved in the transaction as well as an overview of the deal.

  • Date and address of the property being purchased
  • Seller & buyer
  • Seller’s attorney and buyer’s attorney
  • Building management firm
  • Seller’s broker and buyer’s broker
  • Miscellaneous information about the transaction

The miscellaneous information section contains ownership type (i.e. co-op or condo), corporation or condo name, shares / % common elements owned, inclusions and exclusions, storage, closing date, purchase price, maintenance / common charges, real estate tax, assessment (if any), flip tax, financing (contingent, non-contingent, cash), amount to be financed, days to obtain loan commitment, occupants of unit, pets and broker commission.

If you have sold via an agent assisted FSBO, please protect the reputation of our full-service affiliate brokers by not disclosing to the buyer’s agent or other brokers how much you paid in seller broker commission. In the broker commission section of the deal sheet it is only necessary to state the commission payable to the buyer’s broker (i.e. 3% commission to Corcoran).

After the deal sheet has been circulated, your real estate attorney will begin drafting the purchase and sale contract. The buyer will typically have deference to you on timing and it is usually the seller who demands a quick close. This situation can be reversed if the seller is desperate with a property that has sat too long on the market and the buyer is an opportunistic all cash vulture investor who is willing to walk away. Once your real estate attorney has sent the purchase contract to the buyer’s attorney, your listing status is “contract out” but not “in-contract” yet as it hasn’t been mutually signed. Sellers will typically give the buyer a certain time limit to sign the contract so as to not waste time with an uncommitted buyer. When markets are really strong, sellers have been known to send out contracts to multiple buyers to encourage even more competition. However, this method may be deemed unprofessional in some circles.

Your real estate attorney will guide you the rest of the way through the NYC closing process, so make sure you ask plenty of questions as the contract is being drafted and negotiated.

Related Questions | People also ask:

Who holds onto the good faith deposit in a NYC FSBO closing process?

When does the home inspection happen?

When does the final buyer walk-through happen?

Who typically attends the closing?

Content courtesy of https://www.hauseit.com/nyc-fsbo-closing-process-home-sellers/

Disclosure: Hauseit and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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