Have you been asked by your real estate broker to submit a REBNY financial form with your offer to buy an apartment in NYC?
We are not surprised. While it only used to be submitted for co-ops in NYC, this financial disclosure form has become a de facto document accompanying all offers for properties listed in the Real Estate Board of New York’s Residential Listing Service (commonly referred to as the RLS in NYC).
Looking for a REBNY Financial Statement template updated for 2018? Click here to access a fillable spreadsheet.
Technically the answer is that the form isn’t required under New York State law to submit with an offer but it has become the local standard. All offers submitted to a listing agent (with or without a REBNY financial form) are required to be submitted to the seller. If you want your offer to be taken seriously then for the most part the answer is that yes it is probably required to complete the REBNY Financial Statement.
The form is used by sellers and listing brokerage firms to evaluate the relative strength of offers to determine who is best financially qualified and most likely to pass the co-op board (if applicable).
If you are a financially strong candidate, it is actually a good thing because it can help make you stand out especially if you are in a bidding war.
For those of you who are familiar with accounting, the REBNY financial form is a combination of a personal balance sheet and income statement.
If you are planning to buy in NYC, it is generally recommended that you complete this form ahead of time and secure a mortgage pre-approval so that 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 choose to go it alone, you will still likely be asked to fill out this form.
Many times people express they are uncomfortable disclosing personal and financial information. Unfortunately, if you don’t include it or haphazardly fill it out, you may put yourself at a big disadvantage. In the case of co-ops, the board application process can be very painful and intrusive and these items will eventually come up. It is good to disclose your financial information clearly and honestly upfront because 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. This is especially true for co-ops where boards evaluate your post close liquidity.
Prevu has created a helpful REBNY Financial Statement available in both Google Docs and Excel formats.
Click the image above or head over to this post to save yourself a copy.
Happy house hunting!
Prevu is the real estate technology company on a mission to save people money when they buy or sell a home. Our industry-leading Smart Buyer™ Rebate makes it possible for homebuyers in NYC to receive a commission rebate of up to 2% of their purchase price with a seamless, end-to-end buying experience and the expert advice of a dedicated, salaried agent.
In addition to financial documentation, you will need to submit reference letters as part of your co-op board application. See what letters you'll need.
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