Plenty of strategies exist for those who desire to purchase NYC luxury real estate but don’t want to spend an exorbitant sum of money. One way would be to purchase a unit in a lower floor of an extravagance building. Another floor unit can cost just as much as 19% greater than a comparable unit on the first floor. Another option is to seek units with higher maintenance or common charges per month, as those frequently have lower asking prices. Alternatively, vesada apartments in a building can carry an increased price tag than others… for example, a unit line with windowed bathrooms will fetch much more on the open market when compared to a line whose bathrooms are lit only by fixtures.
If you need a mortgage to purchase a NYC luxury property, you should get a mortgage approval letter from your own bank stating how much mortgage loan that you are approved. Savvy sellers can legally tell their brokers to only show properties to buyers that are “bank-approved.” A bank qualification letter is not exactly like an approval letter, and can not qualify one to see 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 relates to among other things, how many days needed to close. For mortgage holders, it refers to your percentages for interest together with time needed to obtain the funds from the lender and transfer them in to the appropriate ESCROW account. In a genuine estate transaction, terms are equally as important as cash, because they dictate to sellers under what conditions they will reach recoup their original price. If you know your terms inside and out, it’ll make it easier for the broker or agent to negotiate with sellers for you personally.
Based on the National Association of Realtors, 88% of people start their property search online. In New York City, home of the savvy shopper, over 90% of buyers and renters start their search online. The importance of doing your own research is to be ahead of your rivals – other ready, willing and able buyers. Each NYC luxury building has its own rules for purchase and its particular amenities to provide. Each section of Manhattan has its disadvantages, quirks and advantages. And not every agent or broker is equal. You will need to some conduct some preliminary research in order to stay ahead of YOUR competition – other ready, willing and able buyers. Which brings us to our next point…
You might have heard this adage before in regards to the NYC Rental market: bring a bank-certified talk with you and be ready to close on a rental unit you like as soon as you see it, because the next person to see it could snag it from under your nose. Similar fervor pertains to the NYC buyers’ market, especially for luxury NYC property. International all-cash buyers are most likely your strongest competition in the NYC luxury market. They are able to walk right in and say “I’ll go on it,” and cash buyers can close in as little as two weeks. Know your own finances, and know just how quickly you are prepared to move on a house you like. The opportunity to quickly transfer to ESCROW will provide you with a significant advantage against other buyers.
Just because a property falls under 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, proof water damage and mold 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 one conducts a home inspection before signing on the dotted line. Most of all, make sure your contract for purchase includes a home inspection contingency, i.e. a statement that permits you to freely walk away from the house if the inspector finds a problem with it. A reliable broker also won’t waste your time and effort or their very own by showing you properties that aren’t satisfactory.
The New York City market is a market unto itself, much like none other in the usa. It plays by its own degree of supply and demand rules. International demand for NYC luxury property continues to be one significant reason Manhattan prices are so high in comparison to other areas. REBNY reported that 2012 was probably 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 point to the fact that we are continuing to trend towards a sellers’ market, as sellers and co-op boards continue to be able to choose among a pool of possible buyers. Understand that the NYC luxury market is not depressed at all and factor this knowledge into your approach to purchase.
