Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.
Does the listing agent ask you to submit a REBNY Financial Statement in NYC with your offer to buy an apartment? It only used to be provided for co-ops in NYC. However, this financial disclosure form became a document accompanying all offers for properties listed in the Real Estate Board of New York’s RLS. Here is a REBNY-Financial-Statement-Excel-Template. It allows you to easily complete your REBNY Financial Statement and that we use in every offer we place. In this blog post, we will answer those questions:
What if I don’t want to fill it out?
The REBNY Statement is almost always required when submitting an offer on a co-op apartment in NYC. The REBNY Statement is a high-level summary of your assets, liabilities, income, and projected expenses. This allows the listing agent and seller to ascertain whether you meet the co-op’s financial requirements. These financial requirements usually consist of the debt-to-income ratio and post-closing liquidity.
Click here to download our REBNY 2018 template
Technically, New York State law does not require a REBNY statement with an offer. However, it has become the standard. All offers submitted to a listing agent (with or without a REBNY form) are required to get forwarded to the seller. Then, if you want the seller to take your offer seriously, the answer is that yes, you should include a REBNY statement.
Co-op board rejections frequently happen in NYC. The last thing you want is for the denial to result from the buyer not passing all of the board’s financial requirements. Therefore, as a buyer, you should complete the REBNY Statement, even if you feel that it’s somewhat invasive.
In general, co-op sponsor units, condos, and new construction, you will not request the buyer to include a REBNY Statement. For these situations, a pre-approval letter, proof of funds as well as your offer level (price, % down and contingencies) will suffice.
Sellers use the form and listing brokerage firms to evaluate the relative strength of offers. They determine who remains the most financially qualified and most likely to pass the co-op board. If you are a financially stable candidate, it is a good thing because it can help make you stand out, especially in a bidding war.
For those of you who are familiar with accounting, the REBNY form is a combination of a personal balance sheet and income statement.
Working with an experienced buyer’s agent will help ensure that you are fully informed about the nuances and different requirements for each co-op. Do don’t want to invest too much time in something which may not be the right fit.
We recommend that you complete this form ahead of time if you are planning to buy in New York. Also , secure a mortgage pre-approval. When you find the apartment that you love, you aren’t scrambling to get your documents ready to make an offer with your agent. No matter what agent you choose, or even if you decide to go it alone, the listing agent will likely still ask you to fill out this form.
Many times people express they are uncomfortable disclosing personal and financial information. Unfortunately, if you don’t include it, you may put yourself at a significant disadvantage. In the case of co-ops, the board application process can be excruciating and intrusive. These items will eventually come up. It is good to disclose your financial information clearly and honestly upfront. If you can’t afford a co-op (or condo), it is best to know that early on so that you can move on to the next place. Generally, the more transparent and clear your offer is, the more likely it will stand out from other buyers.