Buyer's Guide
Buying a Home in Brooklyn
Buying here has its own rules, from attorneys and contract deposits to co-op boards. This guide covers what happens at each step and what to budget for.
Talk Through Your Goals
Start with what you want, your budget and your timing. We will also explain how we can represent you and how our compensation works. It's negotiable, and we'll walk you through any agreement before you sign it.
Line Up Your Financing
If you're getting a mortgage, talk to a lender early. A pre-approval shows you what you can spend, and many sellers and listing agents will ask for one. Veterans and service members should ask about VA loan eligibility, and our Veterans page covers how it works in Brooklyn.
Narrow the Search
Decide which neighborhoods and building types fit you. A co-op, a condo and a two-family house come with very different rules, monthly costs and paperwork, so it pays to compare them before you tour.
Make an Offer
We will review comparable sales with you and help you shape an offer on price, contingencies and timing. In New York, an accepted offer isn't binding until both sides have signed a contract.
Go Into Contract
Hire a real estate attorney before you need one. Yours will review the contract and the building's records while you arrange any inspection. At signing, a deposit of 10% of the price is typical, held in escrow.
Get to Closing
Your lender finishes the mortgage, and any co-op or condo application is handled. After a final walkthrough, you sign the remaining documents, pay the balance and get your keys.
Working With a Compass Agent: Compass's New York procedures cover ID, pre-approval and buyer agreements. A seller, listing agent or building may ask for ID or proof of financing, and you'll generally need to sign a buyer agreement before we tour a home together. Read the Procedures.
Co-op, Condo or House?
Most Brooklyn buyers choose among these three. The right one depends on your budget, how you'll finance it and how much independence you want.
| Co-op | Condo | House | |
|---|---|---|---|
| What You Buy | Shares in a corporation and a lease on your apartment | A deed to your apartment and a share of the common areas | A deed to the building and the land |
| Monthly Costs | Maintenance, which usually covers building expenses and property taxes | Common charges, plus your own property taxes | Your own taxes, insurance, utilities and upkeep |
| Building Approval | Board package and usually an interview | Board package on most resales, and the board may have a right of first refusal | None, though landmark and city rules can apply to later work |
| Contract to Closing | Often 90 to 120 days | Often 60 to 90 days | Depends on the contract, tenants and financing |
What to Budget for at Closing
Closing costs vary widely, from about 1.5% to 6% of the price. They tend to be lower for a co-op and higher for a condo, a house or new development, especially at $1 million and up.
| Cost | Typical Amount | Applies To |
|---|---|---|
| Your Attorney | Often $2,000 to $5,000 | All |
| Mansion Tax | 1% of the price starting at $1 million, with higher rates from $2 million | All |
| Mortgage Recording Tax | About 1.8% of a loan under $500,000 and 1.925% at $500,000 or more | Condos and houses |
| Title Insurance | Often about 0.4% to 0.5% of the price | Condos and houses |
| Board Application and Move-In Fees | Vary by building, often about $500 to $2,000 in total | Co-ops and some condos |
| Lender Fees | Appraisal, application and bank attorney fees, plus any points | Financed purchases |
These are general estimates, not legal, tax or lending advice. New developments can carry other costs, including transfer taxes. Your attorney and lender can give you actual numbers for your purchase.
Buying a Two-Family or Multi-Family? Check the legal unit count and current leases, and ask your lender how rental income affects your loan. Explore the Neighborhoods.
Ready to Start Looking?
Tell us what you're looking for, and we'll reach out to talk through your search and your next step.
Prefer to talk? Call 347.217.0204.