Plenty of strategies exist for individuals who want to purchase NYC luxury property but don’t want to spend an exorbitant amount of money. One way is to purchase a unit in less floor of a luxury building. Another floor unit can cost up to 19% greater than a comparable unit on the first floor. Another option would be to seek units with higher maintenance or common charges monthly, as those often have lower asking prices. Alternatively, some lines in a building can carry a higher price tag than others… for example, a unit line with windowed bathrooms will fetch a lot more on the open market when compared to a line whose bathrooms are lit only by fixtures.
If you need a home loan to purchase a NYC luxury property, you will want to get a mortgage approval letter from your own bank stating the volume of mortgage loan for which you are approved. Savvy sellers can legally tell their brokers to only show properties to buyers that are “bank-approved.” A bank qualification letter isn’t the same as an approval letter, and can not qualify one to visit a property under bank-approval requirements.
In the true estate industry, “terms” refers to the stipulations under which money is given. For cash-closers, this pertains to among other things, just how many days had a need to close. For mortgage holders, it refers to your percentages for interest in addition to time needed to have the funds from the bank and transfer them into the appropriate ESCROW account. In a genuine estate transaction, terms are just as important as cash, because they dictate to sellers under what conditions they will get to recoup their original purchase price. Once you learn your terms inside and out, it will make it easier for your broker or agent to negotiate with sellers for you personally.
In line with the National Association of Realtors, 88% of individuals start their property search online. In New York City, home of the savvy shopper, over 90% of buyers and renters start their do some searching online. The importance of doing your own research is to be ahead of your competition – other ready, willing and able buyers. Each NYC luxury building has its own rules for purchase and its particular amenities to offer. Each area of Manhattan has its own disadvantages, quirks and advantages. And not every agent or broker is equal. You will want to some conduct some preliminary research in order to stay ahead of Your rivals – other ready, willing and able buyers. Which brings us to our next point…
You’ve probably heard this adage before with regards to the NYC Rental market: bring a bank-certified check with you and be ready to close on a rental unit you like as soon as you see it, as the next person to see it could snag it from under your nose. Similar fervor applies to the NYC buyers’ market, specifically for luxury NYC property. International all-cash buyers are most likely your strongest competition in the NYC luxury market. They can walk right in and say “I’ll take it,” and cash buyers can close in less than two weeks. Know your personal financial situation, and know precisely how quickly you are ready to move on a property you like. The opportunity to quickly move into ESCROW will give you a significant advantage against other buyers.
Just because a property falls beneath the luxury umbrella, will not necessarily mean that it’s problem-free. Structural problems such as for example improper weight baring pillars and roofing issues, evidence of water damage and mold, or piping and HVAC problems are just a number of the problems one can find in any property. This is why it is integral that certain conducts a home inspection before signing on the dotted line. Prestige Park Grove Price of all, ensure that your contract for purchase carries a home inspection contingency, i.e. a statement that permits you to freely leave from the house if the inspector finds a problem with it. A reliable broker also won’t waste your time or their own by showing you properties that aren’t satisfactory.
The New York City real estate market is a market unto itself, much like none other in the usa. It plays by its degree of supply and demand rules. International demand for NYC luxury real estate continues to be one significant reason Manhattan prices are so high compared to other areas. REBNY reported that 2012 was the most successful year (over $30 billion in property sales) for NYC property since 2008. REBNY also reported that broker confidence in the market has been higher in January 2013 than in virtually any month of 2012. Sales numbers across most brokerages indicate the fact that we have been continuing to trend towards a sellers’ market, as sellers and co-op boards continue being able to pick and choose among a pool of possible buyers. Know that the NYC luxury real estate market is not depressed by any means and factor this knowledge into your approach to purchase.
