Steps to Closing on a Home in NYC: What Happens After an Accepted Offer?
With a strong agent leading the process, both buyers and sellers can move forward with confidence, ensuring a seamless and successful NYC real estate transaction.
Receiving an accepted offer on your NYC property is a major milestone, but it’s just the beginning of a detailed process that requires legal reviews, financial approvals, and coordination between multiple parties. From due diligence to contract signing and securing financing, each step has specific requirements and potential hurdles.
For buyers, this guide provides a roadmap to a successful closing, helping them navigate the process with confidence. For sellers, understanding the key steps and their role in the transaction can help ensure a smooth closing without delays or surprises.
An experienced real estate agent plays a crucial role in managing deadlines, facilitating communication between all parties, and anticipating potential roadblocks—ensuring that the transaction moves forward as efficiently as possible.
1. Due Diligence, Attorney Review, and Title Search
Once an offer is accepted, the buyer’s attorney initiates the due diligence process. In NYC, this phase is particularly important for co-op and condo purchases, as it involves a comprehensive review of the building’s offering plan, amendments, financial statements, board meeting minutes, bylaws, and any pending assessments. The goal is to ensure the building is financially sound and that there are no major concerns that could impact the property’s value or future expenses. The attorney also carefully reviews the contract of sale to confirm favorable terms for the buyer.
For sellers, preparing the offering plan, amendments, financials, building documents, and any relevant disclosures in advance can help prevent last-minute delays during this phase. Proactively addressing potential concerns—such as upcoming assessments or unresolved building issues—allows for a smoother transaction.
For condos, townhouses, and single-family homes, this stage includes a title search, which is ordered by the buyer’s attorney, conducted by a title company, and reviewed by the attorney to ensure a clear title before closing. The title search confirms that there are no outstanding liens, unpaid taxes, or legal claims against the property. If any issues arise, the buyer’s attorney works with the seller’s attorney and title company to resolve them before closing. Lenders require title insurance for financed purchases, while cash buyers have the option to purchase it as a safeguard.
2. Home Inspections in NYC: What to Expect
Unlike in other markets, home inspections in NYC vary by property type. For townhouses and single-family homes, inspections are common and typically conducted before contract signing to assess plumbing, electrical, roofing, HVAC, and structural integrity. Any issues found may lead to renegotiations, repair requests, or credits.
For condos, inspections are optional, as major structural elements fall under building management. However, buyers may still inspect the unit’s interior systems—such as appliances, plumbing, and electrical—before proceeding.
For co-ops, inspections are rare, as the building’s infrastructure is maintained by the co-op itself. Instead, buyers rely on financial statements and board minutes to assess the building’s condition. That said, some buyers choose to inspect an older unit’s plumbing and electrical systems.
Sellers of townhouses and single-family homes should prepare in advance by addressing minor maintenance issues to avoid surprises. Buyers should work with their attorney and real estate agent to determine if and when an inspection makes sense for their transaction.
3. Contract Signing and Deposit Submission
Once due diligence is complete, both parties proceed to sign the contract of sale. The buyer submits the earnest money deposit—typically 10% of the purchase price—into escrow. This is a pivotal stage, as the contract becomes legally binding. If the buyer withdraws after signing (without a contingency in place), they risk forfeiting their deposit.
For sellers, contract signing represents a firm commitment to the sale. At this stage, they typically stop showing the apartment to prospective buyers and begin coordinating their move-out timeline, ensuring all required building paperwork (such as move-out permits and financial clearance) is prepared for closing.
4. Mortgage Application, Appraisal, and Commitment
For financed purchases, the next step is securing a mortgage commitment. The buyer submits a formal loan application along with financial documentation, such as tax returns, bank statements, and employment verification.
As part of this process, the lender orders an appraisal to confirm that the property's value supports the agreed-upon purchase price. If the appraisal comes in lower than expected, buyers may need to renegotiate the price or cover the difference out-of-pocket.
The mortgage approval process typically takes 30 to 45 days, with the lender conducting a final credit check before issuing the clear to close. Buyers should avoid making large purchases or opening new lines of credit, as this could impact loan approval at the last minute.
5. Co-op or Condo Board Application and Approval
In co-op and condo purchases, buyers must submit a detailed board package that includes financial statements, tax returns, employment verification, and other required documentation.
For co-ops, buyers will also need to provide personal and professional reference letters. The board reviews the package to assess the buyer’s financial stability and suitability as a shareholder. If approved, the buyer will be invited to a board interview, where the board makes its final decision. The approval process can take anywhere from three to six weeks, depending on the building’s policies and responsiveness.
For condos, the process is generally less intensive. Instead of a board interview, the condo board must formally waive its right of first refusal, allowing the sale to proceed. While procedural, this step can still add time to the closing process.
6. Who Oversees the Board Package? The Role of the Buyer’s and Seller’s Agent
Processing a board package is a project within a project, and every document counts. The buyer’s real estate agent should take the lead in managing the process, guiding the buyer through each step, and meticulously tracking and auditing the application before submission. Their role is to ensure that no errors, missing documents, or inconsistencies delay approval. For co-ops, this includes preparing the buyer for the board interview and anticipating potential concerns before they arise.
The seller’s agent is equally responsible for reviewing the package before it is ever submitted to the managing agent. A delayed or rejected board package can cause closing delays, so both agents must work together to ensure all materials meet the board’s expectations.
7. Final Walkthrough
A final walkthrough is typically scheduled 24 to 48 hours before closing. This is the last opportunity for the buyer to confirm that the property is in the agreed-upon condition—ensuring that all appliances, plumbing, and electrical systems are functioning properly and that any agreed-upon repairs have been completed.
Sellers should ensure the home is delivered in the agreed-upon condition, with no unexpected damage and any agreed-upon repairs completed before the walkthrough. Buyers should use this opportunity to confirm that all appliances, plumbing, and electrical systems are functioning properly before closing.
8. Closing Day
On closing day, all parties—including the buyer, seller, attorneys, lender (if applicable), and title company—convene to sign the final documents and transfer ownership. For sellers, this is when they receive the proceeds of the sale and formally transfer ownership. Co-op sellers must return their stock certificates and proprietary lease to the managing agent, while condo and townhouse sellers transfer the deed.
9. The Role of Your Real Estate Agent
A skilled real estate agent plays a vital role in ensuring a smooth transaction for both buyers and sellers by:
Managing transaction timelines and proactively addressing potential delays.
Coordinating with attorneys, lenders, co-op/condo boards, and managing agents to avoid unnecessary setbacks.
Overseeing the board package process (for buyers) and ensuring all required seller documentation is in order.
Guiding sellers on preparing their home for the final walkthrough and closing.
Handling unexpected closing delays by staying ahead of financing, board approval, or documentation bottlenecks.
Negotiating last-minute repairs, credits, or extensions to ensure a successful closing.
With a strong agent leading the process, both buyers and sellers can move forward with confidence, ensuring a seamless and successful NYC real estate transaction.
If you’re preparing to buy or sell in NYC, understanding the steps from offer to closing is essential for a smooth transaction. Feel free to reach out to discuss your real estate goals and how I can help guide you through the process with confidence.