Board Packages: The Resumes of Real Estate
It is no secret that the property buying experiance in NYC is usually very extensive! From the moment you begin your search to the moment you close, something is always brewing- offers, contracts, bank paperwork, and of course, BOARD PACKAGES!
When clients hear about and see the board package, they tend to freak out… and rightfully so! Some can be over 400 pages long and require 4 collated copies. Sorry Amazon forest! However, they are a major component to the co-op purchase experience!
Here are five important things buyers need to know about the board package:
- They are your resume: Think of the board package as a very detailed resume. It gives the building’s management company and board of directors a glimpse of who you are and, most importantly, your finances. If they like what they see on paper, they will call you in for an interview.
- They are fairly invasive: Although some buildings have very short and easy board applications (lucky are you if yours is like that), most require very detailed information- your employment history, housing history, letters of references, tax returns, financing information, proof of income, bank statements, and your blood type…. Just kidding on that last one (probably)!
- Financial statement need to look picture perfect: One of the most important parts of a board package is the financial information. Most require submission of a financial statement, which states all your assets, liabilities, and net worth. Even though most buildings require a 20% down payment, you only pay 10% at contract signing. So the financial statement should show that you can easily pay the remaining 10% and still have enough reserves to be able to afford maintenance fees for at least 12 months.
- It begins with the buyer: There is definitely a science to compiling board packages. Shout out to those agents who have mastered it! There is a certain order and look that board packages need and that’s something only your buyer’s agent can provide. However, the process begins with the buyer! There would be no package to put together without a buyer who is ready to provide the necessary information. Yes, it is overwhelming. Yes, it is a lot of information. Yes, I need every single page of your 100-page tax returns. Yes, I need your full bank statement. No, I cannot use a screenshot from your phone. Our job is to make you look good, and that is the only reason why we ask for all that information.
- There’s no way around them: I’ve had many clients who have suggested leaving information out of the board package and planned on presenting it at the interview. Sorry, but no. That’s not how things work! Remember the package is like a resume- it’s what gets you the interview! There is no way of getting out of completing it… unless you are buying a sponsor unit. This is just the way things are. So if you’re buying soon, start asking for letters of reference because the board package is comin’!
Amelina Castillo, Director of Operations
Contact me anytime to talk about this or have me represent you:
Cell: (718) 775-6705