What to Expect As a Buyer After Your Offer is Accepted

The Weekly Recap

Good morning! Luxury real estate prices hit an all-time high while home sales rebounded to a six month high, the TikTok sell-or ban bill was signed into law starting the 270 day countdown to comply. New Core PCE numbers are out today which is the Fed’s preferred measuring tool for inflation, GDP growth slowed in Q1 of 2024, Jamie Dimon said the NYC must continue to fight to compete with cities worldwide and fewer babies were born in the US in 2023 in any year since 1979.

What to Expect As a Buyer After Your Offer is Accepted

One of my favorite parts of this business is getting to call buyers and letting them know that their offer was accepted. A lot of hard work and time goes into finding the perfect home that meets the needs of the individual or their family and its always something to celebrate. With that said, this is where the real work gets started in making sure that we move from ‘accepted offer’ to closing.

Deal Sheets - Once an offer is accepted, the sellers agent will put something together called a Deal Sheet. A deal sheet lists out the information of all the relevant parties to the transaction. The Buyer/Seller, Buyers Agent/Sellers Agent, Buyers Attorney/Sellers Attorney, the management company as well as all the particulars needed for a first draft of the contract to be created (price, shares, contingencies etc.). This is circulated to both attorneys to begin the Contract Phase.

Contract Phase- During this period, the buyers attorney will go through all the due diligence for the building where the home is being purchased. They will review board minutes, building financials, the offering plan for the building etc. While the due due diligence is occurring on the buyside, the sell side is drafting the contract and sending to the buyers attorney. Once the language for the contract has been agreed upon between both parties and due diligence is complete with no issues, the buyer signs the contract and submits their deposit and sends the contract to the sellers. Once the sellers sign we now have a Fully Executed Contract.

Fully Executed Contract- Once this has been completed, if you are financing, you will share the contract with your bank as they will then kick the underwriting process for your loan into high gear. This is also the beginning of the Board Package Process.

Board Package Process- This is a fun part. If you are buying in a New Development building or a Sponsor Unit, you get to avoid this part altogether! If you are buying a resale in a Condo or a CO-OP you will have to go through this process. Condos are easier than CO-OP board packages but for the most part, both types of buildings boards will require a load of financial information (paystubs, W2’s, Tax Returns, Bank Statements, Financial Statement), letters of recommendation (personal, business, bank, landlord) and some disclosure forms. Once your board package is submitted, if you’re in a CO-OP a board interview will be scheduled and if a Condo you just wait for management approval, then you can move to Closing.

Closing- The best part of the entire process! You show up to the closing table with your favorite pen and just start signing away! Your attorney will be there to guide you as well as with executing closing costs. At the end of closing, you get your keys and are now a homeowner!

Market Performance

Here are how some other indexes and asset classes have performed as of this mornings opening bell.

NYC Market Update

Here is a view of new inventory that has come onto the NYC market over the past week as well as newly signed contracts in Manhattan.

Mortgage Rate Update

Mortgage rates barely moved up this week, less than one-tenth of a percentage point. Despite rates increasing more than half a percent since the first week of the year, purchase demand remains steady. With rates staying higher for longer, many homebuyers are adjusting, as evidenced by this week’s report that sales of newly built home saw their biggest increase since December 2022.

News You Can Use

• New US Home Sales Jump to Highest Level Since September Bloomberg

• Luxury Real Estate Prices Just Hit an All-Time Record CNBC

• Hedge Funds Turned Stock Buyers in Volatile Week Bloomberg

• GDP Growth Slowed to 1.6% in Q1 2024, Well Below Expectations CNBC

• Jamie Dimon Cautions Over Soft Landing for ‘Unbelievable’ US Economy Financial Times

• US Business Activity Cools in April, Inflation Measures Mixed Reuters

• US Economy Slows and Inflation Jumps, Damping Soft-Landing Hopes Bloomberg

• Why the Fed Keeping Rates Higher for Longer May Not Be Such a Bad Thing CNBC

• The US Economy Showed Signs of a ‘Wobble’ in April Yahoo Finance

• New York Must Fight to Compete With Cities Worldwide, Dimon Says Bloomberg

• Biden Signs TikTok Bill Into Law CNBC

• US Fertility Rate Falls to Record Low Wall Street Journal

The Deep Insight

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