Buyer, Seller & Renter FAQs

Buyers

  • Buyer closing costs vary significantly based on the type of property, purchase price, and whether financing is involved. As a general guideline, co-op buyers often have lower closing costs than condo and townhouse buyers because co-op purchases do not require title insurance or mortgage recording tax.

    Costs may include:

    • Mansion tax on residential purchases of $1 million or more

    • Mortgage recording tax for financed condo and townhouse purchases (not generally applicable to co-op loans)

    • Attorney fees

    • Lender, appraisal, and financing fees

    • Title insurance for condos and townhouses

    • Building application fees and move-in deposits

  • The New York State mansion tax is generally paid by the buyer on residential purchases of $1 million or more. In New York City, additional supplemental mansion tax rates apply to residential purchases of $2 million or more. The combined effective rates are:

    • $1,000,000–$1,999,999: 1.00%

    • $2,000,000–$2,999,999: 1.25%

    • $3,000,000–$4,999,999: 1.50%

    • $5,000,000–$9,999,999: 1.75%

    • $10,000,000–$14,999,999: 2.25%

    • $15,000,000–$19,999,999: 2.50%

    • $20,000,000–$24,999,999: 2.75%

    • $25,000,000 and above: 2.90%

  • Down payment requirements vary by property, building, lender, and buyer qualifications. Many co-ops require at least 20% down, while some require 25%–50% or more. Condos may permit higher levels of financing, and in some cases qualified buyers may be able to purchase with as little as 10% down. Always confirm both lender and building requirements.

  • In a co-op, you purchase shares in a corporation that owns the building and receive a proprietary lease giving you the right to occupy your apartment. In a condo, you own the apartment as real property and receive a deed.

    Co-ops often offer more space or value for the purchase price but generally have more restrictive approval, financing, subletting, and ownership requirements. Condos generally offer greater flexibility for renting, pied-à-terre use, trusts, LLCs, and foreign buyers, but often command higher purchase prices and may have higher buyer closing costs.

  • Yes, depending on the building. Condos are generally more flexible regarding LLCs, trusts, and other ownership structures. Co-op policies vary considerably and some buildings restrict or closely scrutinize these forms of ownership. Revocable trusts may be permitted in many buildings for estate-planning purposes, subject to the building’s governing documents and approval requirements. Buyers should consult their attorney and tax advisor regarding the appropriate ownership structure.

  • Timelines vary, but a typical all-cash condo purchase may take approximately 30–45 days, a financed condo purchase approximately 45–75 days, and a co-op purchase often 60–90 days or longer due to the board approval process.

    The process generally includes an accepted offer, attorney due diligence, contract signing, mortgage application if applicable, board or managing-agent application where required, co-op board interview where applicable, and closing.

  • There is no single credit-score requirement for buying NYC real estate. Lender requirements vary by loan program, borrower profile, and market conditions. Higher credit scores may provide access to more favorable financing terms. Co-op boards generally evaluate the buyer’s overall financial profile, including income, assets, debt-to-income ratio, post-closing liquidity, and reserves—not simply credit score.

  • A co-op buyer typically submits a detailed application or board package. Requirements vary by building but may include information regarding income, assets, liabilities, employment, tax returns, reference letters, and post-closing liquidity. Many co-ops also require a board interview.

    Co-op boards generally have broad discretion in reviewing applicants, but all decisions remain subject to applicable federal, New York State, and New York City fair-housing and anti-discrimination laws.

  • Yes. Foreign buyers may purchase New York City real estate. Condos are often more accessible because they generally have fewer ownership and occupancy restrictions than co-ops. Foreign buyers seeking U.S. financing may face different underwriting standards, larger down-payment requirements, and additional documentation.

    International buyers should consult qualified U.S. legal and tax professionals regarding ownership structure, income and estate tax considerations, FIRPTA implications upon sale, and other cross-border issues.

  • It depends on your goals. Co-ops may be attractive to buyers seeking greater space or value who plan to live in the apartment long-term and are comfortable with board oversight. Condos may be preferable for buyers seeking maximum flexibility, future rental options, pied-à-terre use, investment ownership, or ownership through certain trusts or entities.

    Every building has its own policies, so the specific building should be evaluated alongside the general differences between co-ops and condos.

  • Yes. Co-op purchases can be financed, subject to lender requirements and the building’s financing policies. Co-ops may impose minimum down payments, debt-to-income standards, post-closing liquidity requirements, and limits on the percentage of the purchase price that may be financed. The building itself must also satisfy applicable lender requirements.

  • Every co-op has its own financial and application standards. Factors that may affect approval can include insufficient post-closing liquidity, a high debt-to-income ratio, unstable income or employment history, incomplete or inconsistent financial documentation, financing levels that do not comply with building requirements, or a proposed use of the apartment that conflicts with building rules.

    Boards generally seek financially qualified applicants who appear able to meet the building’s ongoing financial obligations and comply with its rules.

  • Requirements vary significantly by building. Some Manhattan co-ops may look for approximately one to two years of mortgage and maintenance payments remaining in liquid assets after closing, while others—particularly certain luxury co-ops—may require substantially more.

    What qualifies as liquidity also varies. Cash, publicly traded securities, bonds, and money-market funds may be considered. Retirement assets may be counted fully, partially, or not at all depending on the building, accessibility of the funds, and the applicant’s circumstances.

  • A pied-à-terre is a secondary residence used on a part-time basis by someone whose primary residence is elsewhere. Condos are generally more flexible regarding pied-à-terre ownership. Co-op policies vary significantly: some permit pied-à-terres, some allow them subject to conditions, and others prohibit them.

  • Yes, depending on the building. Condos generally offer greater flexibility. Co-op policies vary significantly, and some buildings do not permit parents purchasing for children, guarantors, or co-purchasing arrangements.

    Depending on the building, possible structures may include parents purchasing outright, co-purchasing with the child, guarantor arrangements, or trust ownership. Buyers should confirm the building’s policies before proceeding.

  • If a board interview is required, the applicant’s financial qualifications have generally already been reviewed through the board package. The interview is typically an opportunity for the board to meet the prospective shareholder and confirm that the applicant understands and is prepared to comply with the building’s rules and expectations.

  • Beyond the purchase price and initial closing costs, ownership expenses may include monthly co-op maintenance or condo common charges, real estate taxes for condos and townhouses, assessments, insurance, renovation costs, move-in and move-out fees, and ongoing repairs.

    Some co-ops impose a flip tax when an apartment is sold. Buildings may also undertake significant capital projects that can result in temporary assessments or increases in maintenance or common charges. Buyers should carefully review building financial statements, board minutes when available, offering plans or proprietary-lease materials, and information regarding current or anticipated assessments with their attorney.

  • This material is provided for general informational purposes only and is not intended to constitute legal, tax, accounting, lending, or financial advice. Real estate transaction costs, tax rates, financing requirements, co-op and condo policies, board requirements, and transaction timelines vary based on the individual transaction and are subject to change. Buyers should consult their own attorney, tax advisor, accountant, lender, and other appropriate professionals regarding their specific circumstances. Building policies and requirements should be independently verified before making a purchase decision.

Sellers

  • That depends on your property type, price point, and neighborhood, but well-priced Manhattan apartments continue to attract serious buyers — especially renovated homes, unique layouts, and properties in prime downtown neighborhoods.

    In many parts of Manhattan:

    • Inventory remains relatively constrained

    • Buyers are highly educated and value-conscious

    • Turnkey apartments tend to command premiums more quickly

    • Proper pricing and presentation matter more than ever 

    Luxury buyers are still active, but today’s market rewards strategic positioning rather than aspirational overpricing.

  • The goal is to maximize first impressions and minimize buyer objections.

     Typical preparation includes:

    • Deep cleaning and decluttering

    • Minor repairs and paint touch-ups

    • Refinishing floors if needed

    • Improving lighting

    • Depersonalizing the space

    • Professional photography and floor plans

    • Staging where appropriate

    In NYC especially, buyers respond strongly to:

    • Condition

    • Window exposure / Views

    • Light

    • Ceiling height

    • Flow

    • Storage / Closet space 

    Even small cosmetic improvements can materially impact perceived value.

  • The highest ROI renovations are usually:

    • Kitchens

    • Bathrooms

    • Flooring

    • Lighting

    • Custom storage/closets

    In Manhattan, buyers often pay a premium for:

    • Clean, repainted, and move-in-ready

    • Central air

    • Washer/dryers

    • Home office flexibility

    • Updated electrical/plumbing

    Over-renovating can backfire, especially if the design becomes too specific or expensive for the building and neighborhood.

  • In many cases, yes.

    Staging helps buyers:

    • Understand scale and layout

    • Emotionally connect with the space

    • Visualize how rooms function

    • Focus on the apartment rather than belongings

    This is especially important for:

    • Vacant apartments

    • Smaller homes

    • Unusual layouts

    • Luxury listings

    • Homes needing lifestyle storytelling

    Even partial or light staging can make a significant difference online, where most buyers first encounter a property.

  • Average timelines vary widely based on pricing, property type, and market conditions.

    Generally:

    • Properly priced apartments may go into contract within weeks

    • Others can take several months or longer

    • Co-ops typically take longer than condos because of interview and board approval

     The full process from listing to closing is often:

    • 2–5 months for condos

    • 3–6+ months for co-ops

    Pricing strategy is usually the single biggest factor affecting timing.

  • Seller closing costs in NYC are typically much higher than buyers expect and often range from roughly 6%–10%+ of the sale price.

    Common closing costs include:

    • Broker commissions

    • NYC transfer taxes

    • NY State transfer taxes

    • Flip taxes (for some co-ops)

  • Price reductions can help re-engage buyers, but repeated reductions often weaken negotiating leverage.

    In NYC, buyers closely watch:

    • Price history

    • Days on market

    • Previous reductions

    If a property sits too long or has multiple cuts, buyers may assume:

    • The apartment is overpriced

    • The seller is negotiable

    • There may be hidden issues

    A strong initial pricing strategy is usually more effective than “chasing the market down.”

  • Days on market (DOM) measures how long a listing has been publicly available.

    In NYC, DOM matters because buyers and agents often interpret extended market time as a signal that:

    • The property may be overpriced

    • The apartment may have issues

    • The seller may become negotiable

    Fresh listings generally receive the most attention. Protecting that initial launch window is one reason many sellers use off-market or pre-market strategies first.

  • A Compass Private Exclusive is an off-market listing shared privately within the Compass agent network before going public.

    The property:

    • Does not appear on StreetEasy or Zillow

    • Does not accumulate public days on market

    • Allows sellers to quietly test pricing and positioning

    • Gives access to Compass’ large internal network of agents and buyers

    It can be especially valuable for luxury sellers or anyone wanting more control over how their home is introduced to the market.

  • For some sellers, yes.

    An off-market strategy can be useful if you:

    • Want privacy

    • Are testing pricing

    • Need flexibility before fully launching

    • Are still preparing the apartment

    • Want to avoid accumulating days on market    

    It can also create a sense of exclusivity and help gauge buyer feedback before committing to a public launch.

  • Private selling strategies can:

    • Protect pricing leverage

    • Preserve a property’s “freshness”

    • Limit public exposure

    • Reduce unnecessary foot traffic

    • Allow strategic testing of buyer response

    • Create exclusivity and scarcity

    This approach is especially common in higher-end Manhattan and Brooklyn markets where discretion matters.

  • Urgency in luxury real estate is usually created through:

    • Strategic pricing

    • Strong photography and storytelling

    • Limited early access

    • Carefully timed launches

    • High-quality staging and presentation

    • Scarcity and perception matter

    • Broker networking

  • Testing pricing off-market allows sellers to:

    • Gather feedback privately

    • See how buyers respond without public price reductions

    • Refine positioning and marketing

    • Avoid accumulating days on market

    • Preserve negotiating leverage before going public

    In NYC, first impressions matter enormously. Many sellers would rather adjust strategy privately than appear stale once the listing hits the public market.

Renters

  • Many NYC landlords use a guideline that a tenant’s annual income should equal approximately 40 times the monthly rent. For example, for an apartment renting for $4,000 per month, a landlord may look for annual income of approximately $160,000. This is a common qualification guideline, not a legal requirement, and requirements vary by landlord, owner, and building.

    In many parts of Manhattan:

    •                    Inventory remains relatively constrained
    •                    Buyers are highly educated and value-conscious
    •                    Turnkey apartments tend to command premiums more quickly
    •                    Proper pricing and presentation matter more than ever 

    Luxury buyers are still active, but today’s market rewards strategic positioning rather than aspirational overpricing.

  • There is no universal minimum credit score required to rent an apartment in NYC. Many landlords consider credit history as part of the overall application and may prefer applicants with strong credit. Requirements vary by landlord and building, and other factors—such as income, assets, rental history, or a qualified guarantor—may also be considered.

  • Requirements vary, but landlords and buildings commonly request government-issued photo ID, recent pay stubs or other proof of income, an employment verification letter, tax returns or W-2s when requested, bank statements, and authorization for a credit and/or background check.

  • Upfront costs vary by transaction, but renters may generally be asked to pay the first month’s rent and a security deposit of no more than one month’s rent. Application or screening fees may also apply where legally permitted. Under New York law, fees charged by a landlord or landlord’s agent for a credit or background check are generally capped at $20, subject to applicable law and exceptions. Broker fees may apply when a renter independently hires a broker to represent them.

  • Under New York City’s FARE Act, which took effect in 2025, a real estate broker who represents a landlord cannot require the prospective tenant to pay the landlord’s broker fee. In general, the party who hires or engages the broker is responsible for that broker’s fee. A renter may still be responsible for a broker fee when the renter independently hires a broker to represent them. Renters should ask at the outset who the broker represents and whether any tenant-paid fee applies.

  • A guarantor is someone who agrees to be financially responsible for the lease if the tenant does not meet the lease obligations. Guarantors are commonly used by students, recent graduates, freelancers, renters with limited U.S. credit history, or applicants who do not meet a landlord’s income requirements. Many NYC landlords traditionally use a guideline requiring an individual guarantor to demonstrate annual income of approximately 80 times the monthly rent. This is not a legal requirement, and standards vary by landlord and building. Some landlords may also accept institutional guarantor services.

  • Approval timelines vary. A straightforward rental application may take approximately 3–5 business days, although some may be approved more quickly. Condo and co-op rentals often require additional managing-agent or board applications and may take several weeks. Timing depends on the building, completeness of the application, required documentation, and approval process.

  • In a rental building, apartments are generally leased directly by the building owner or landlord. In a condominium, individual apartments are separately owned as real property. In a co-op, residents own shares in a corporation that owns the building and receive proprietary leases for their apartments. When renting from an individual condo or co-op owner, tenants may face additional application requirements, fees where permitted, move-in procedures, and building or board approval processes.

  • Yes. The ability to negotiate depends on market conditions, the apartment, time of year, and landlord. Potential negotiation points may include rent, lease length, move-in date, free-rent concessions, or certain owner-paid costs or amenities. In highly competitive markets, landlords may be less willing to negotiate.

  • Pet policies vary by landlord and building. Some buildings permit dogs and cats subject to restrictions on breed, size, or number of animals, while others prohibit pets. Service animals and assistance animals may be protected under applicable federal, state, and local disability laws and are not necessarily subject to ordinary pet restrictions or pet policies.

  • Not necessarily. The rules depend on the type of apartment and tenancy. For market-rate apartments, rent increases generally occur in connection with lease renewal or a new lease, subject to applicable notice requirements and other laws. Rent-stabilized apartments are subject to regulated increases established under New York City’s rent-regulation system. Additional protections may apply to certain tenants and apartments under New York State’s Good Cause Eviction law. Renters should confirm whether their apartment is rent stabilized or otherwise covered by applicable tenant protections.

  • Many landlords and buildings require renter’s insurance as a condition of the lease. Even when it is not required, renter’s insurance can help protect a tenant’s personal belongings and may provide liability coverage for certain losses, damage, or accidents, subject to the terms of the policy.

  • Competition varies considerably by neighborhood, price point, apartment type, season, and overall market conditions. Well-priced apartments in desirable locations can attract multiple applicants quickly. Renters who have their financial documents prepared and are ready to submit a complete application may be better positioned to act quickly when they find the right apartment.

  • Seasonal patterns vary, but winter months have historically offered renters less competition and, in some cases, greater negotiating leverage. Spring and summer typically bring more available inventory but also more competition from other renters. Market conditions can change, so renters should consider both current inventory and their own timing needs.

This material is provided for general informational purposes only and is not intended to constitute legal, tax, financial, insurance, or other professional advice. New York City and New York State rental laws, regulations, fees, tenant protections, building policies, application requirements, and market conditions are subject to change and may vary depending on the property and individual circumstances. Renters and property owners should consult a qualified attorney or other appropriate professional regarding their specific situation and should independently verify current laws, building requirements, and lease terms before making decisions.

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