Plenty of strategies exist for individuals who desire to purchase NYC luxury property but don’t desire to spend an exorbitant amount of cash. One way is to buy a unit in a lower floor of a luxury building. Another floor unit can cost around 19% more than a comparable unit on the first floor. Another option would be to seek units with higher maintenance or common charges per month, as those frequently have lower asking prices. Alternatively, some lines in a building can carry an increased price 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 home loan to get a NYC luxury property, you will need to get yourself a mortgage approval letter from your bank stating the amount of mortgage loan for which you are approved. Savvy sellers can legally tell their brokers to only show properties to buyers who are “bank-approved.” A bank qualification letter is not exactly like an approval letter, and will not qualify one to see a property under bank-approval requirements.
In the real estate industry, “terms” identifies the stipulations under which money is given. For cash-closers, this pertains to among other things, just how many days needed to close. For mortgage holders, it identifies your percentages for interest and time needed to obtain the funds from the lender and transfer them in to the appropriate ESCROW account. In a real estate transaction, terms are just as important as cash, because they dictate to sellers under what conditions they’ll reach recoup their original price. If you know your terms inside and out, it’ll 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 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 to do your own research is to be ahead of your rivals – other ready, willing and able buyers. Each NYC luxury building has its rules for purchase and its particular amenities to offer. Each area 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 so as 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 check 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 might just snag it from under your nose. Similar fervor applies 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 less than two weeks. Know your personal financial situation, and know just how quickly you are prepared to move on a house you like. The ability to quickly transfer to ESCROW will give you a substantial advantage against other buyers.
Just because a property falls beneath the luxury umbrella, does not necessarily mean that it is 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 simply some of the problems one will discover in any property. This is why it is integral that certain conducts a home inspection before signing on the dotted line. Most importantly, make sure your contract for purchase includes a home inspection contingency, i.e. a statement that permits you to freely leave from the house if the inspector finds an issue with it. A reliable broker also won’t waste your time and effort or their own by showing you properties that are not satisfactory.
The New York City real estate market is a market unto itself, much like none other in the usa. It plays by its own degree of supply and demand rules. luxury apartments doral for NYC luxury property continues to be one significant reason Manhattan prices are so high in comparison to the areas. REBNY reported that 2012 was the most successful year (over $30 billion in property sales) for NYC real estate since 2008. REBNY also reported that broker confidence available in the market has been higher in January 2013 than in any month of 2012. Sales numbers across most brokerages point to the fact that we have been continuing to trend towards a sellers’ market, as sellers and co-op boards continue to be able to pick and choose among a pool of possible buyers. Know that the NYC luxury market is not depressed at all and factor this knowledge into your approach to purchase.
