First-Time Buyer Checklist: 12 Things to Do Before You Start Touring
The most common first-time buyer mistake in New York isn't overpaying. It's showing up unprepared to a market where nothing binds until contract signing and organized buyers routinely beat higher offers. Here's the work to do before your first Saturday of open houses.
1. Calculate your true all-in cash requirement
Not just the down payment. Add:
Down payment (20%–25% for most co-ops; 10%–20% for condos)
Closing costs: ~1%–2% co-op, ~3%–4% resale condo, ~5%–6% new development
Mansion tax if buying at $1M+ (1% at $1M–$1.99M, rising to 3.9%)
Post-closing liquidity — co-op boards want 1–2 years of carrying costs left over
A $1M co-op purchase can require ~$390,000 in total liquid assets once you include the board's liquidity test.
2. Get pre-approved — with a NYC-savvy lender
Pre-qualification is a guess; pre-approval is underwritten. Choose a lender who regularly does NYC co-ops and condos, because they also underwrite the building, and out-of-state banks stumble on this constantly.
3. Prepare your REBNY Financial Statement
The standardized one-page asset/liability/income summary every listing agent will request with your offer. Build it now, update balances as you go.
4. Decide: co-op, condo, or townhouse
Co-op: cheaper per square foot, cheaper closing costs, stricter boards and rules. Condo: costlier to buy, freedom to rent, LLC/foreign/pied-à-terre friendly. Townhouse: total control, total responsibility. Your financing situation and intended use usually decide this for you.
5. Know your monthly carry, not just your price
Mortgage + maintenance (co-op) or common charges + property taxes (condo). Two apartments at the same price can differ by $1,500/month in carry. Compare total monthly cost, and check whether a tax abatement is inflating today's number and expiring later.
6. Retain a real estate attorney
Interview and choose now — not after an offer is accepted. Speed to contract wins deals in NYC, and the attorney's pre-contract diligence is your real protection.
7. Choose a buyer's agent and sign a representation agreement
Post-NAR-settlement, buyer representation agreements are standard and compensation is negotiated explicitly. Ask how your agent is paid, whether a rebate is available, and what services are included.
8. Clean up your credit and pause big financial moves
Pay down consumer debt (it hits both lender DTI and board DTI, where the standard is a tighter 25%–30%). Don't open new credit lines, change jobs, or make large unexplained deposits during the process — boards and underwriters question all of it.
9. Season and consolidate your funds
Money you'll use should sit in documented accounts for a couple of months. Gift funds need a gift letter, and some co-ops restrict gifts entirely — find out before you bid.
10. Pick neighborhoods by commute and life, then by price
Ride the commute at rush hour. Walk the block on a weeknight. NYC micro-geography is real: one avenue can change price, noise, and light dramatically.
11. Learn the local process quirks
Offers aren't binding until contract. 10% deposits go into escrow. Co-op board packages and interviews add 8–12 weeks. Inspections usually happen pre-contract for apartments. New development means the sponsor's contract and higher closing costs.
12. Build your target list and set decision rules in advance
Define your maximum all-in price (taxes included), your contingency posture, and how you'll handle a bidding war — before emotion enters. Buyers who decide these things in the moment overpay or waive protections they shouldn't.
The one-week version
If you only do three things: get properly pre-approved, prepare your REBNY statement, and retain an attorney. Those three make you a credible buyer the day you find the right apartment.
This article is for general informational purposes only and does not constitute legal, tax, or financial advice. Figures are typical ranges as of August 2026. Consult your attorney, lender, and CPA. As of August 2026.
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