Buying real estate in New York City can be, OK, it IS a huge hassle. It has a bunch of different brokerages, most of which you have NEVER heard of if you don’t live in the area, made up of school zones, cooperative boards, tax breaks, and assessments that people who live in single family residences have. you’ve probably never heard of it.

Even if you live here and have it all your life, going from renter to homeowner is possibly the best and craziest thing you’ll ever do with your financial future.

Now, I’m not going to discuss the benefits of homeownership versus renting in this article for a number of reasons, the main one being because I think most people would see it pretty clearly without any explanation. This is to help define some terms and situations that will help you make good decisions in the future.

First of all, get yourself help. Buyers generally pay nothing when dealing with a broker, as they often get paid through a split commission with the seller’s broker. It’s somewhat akin to the adage “…those who represent themselves have fools for a client.” People, especially homebuyers, have a tendency to become emotionally invested in their new home purchase, professional brokers can spot this from a mile away and we negotiate accordingly. When you have a dispassionate voice of reason as your advocate, you will ALWAYS make better decisions. In short, have fun with Zillow and Streeteasy, but when you’re done, go see a professional.

Next, it’s always a good idea to have an idea of ​​what you’re talking about and what you can afford. If you’re a multi-million dollar cash buyer that’s GREAT, but unfortunately most of us don’t find ourselves in that situation. This means that you need to know a few things about your financial situation. It is best to see a mortgage lender, which can be someone from the institution where you have their accounts, or any number of reputable broker specialists who can put you in touch. They will draw your credit, look at your assets, liabilities and income; and give you a maximum budget for shopping. This process is called “pre-approved,” not to be confused with being “pre-qualified.” Most, if not all brokers in New York City will not take any offer seriously without an accompanying pre-approval letter from a lender, unless you are a vetted cash buyer.

Another good thing to know is the difference between condos and cooperatives. The differences are narrowing more and more these days, as condo boards are becoming just as restrictive as co-op boards in many cases, but several important differences remain. Chief among these is the fact that condos are real property, which means that you hold title and pay your taxes directly. In cooperatives, you have a lease of ownership in a private corporation and a number of shares in that corporation. You still pay taxes, to be sure, but they are billed to the corporation and then transferred to your monthly maintenance payment. There are a lot of nuances here, so I’m not going to cover them all, but it’s important to be aware of them, since Manhattan is made up of roughly 75% co-ops and 25% condominiums, according to this New York Times article.

I have a dog? GREAT I LOVE dogs! Many buildings in New York, however, do not. Every time you go, be sure to look for signs verifying the buildings’ pet-ownership status. This means that your broker must contact the managing agent via email so they have it in writing. Seeing someone with a dog in the hallway means NOTHING, as buildings have a tendency to adopt new rules all the time and while the current owners may be protected by the old house rules, Fido might be out of luck if you don’t do your homework.