Plenty of strategies exist for many who desire to purchase NYC luxury real estate but don’t desire to spend an exorbitant sum of money. One way would be to buy a unit in a lesser floor of an extravagance building. Another floor unit can cost around 19% greater than a comparable unit on the initial floor. Another option is to seek units with higher maintenance or common charges monthly, as those frequently have lower asking prices. Alternatively, some lines in a building can carry an increased price tag than others… for instance, a unit line with windowed bathrooms will fetch a lot more on the open market than a line whose bathrooms are lit only by fixtures.
If you need a mortgage to get a NYC luxury property, you should get a mortgage approval letter from your bank stating the number of mortgage loan that 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 the same as an approval letter, and will not qualify one to visit a property under bank-approval requirements.
In the real estate industry, “terms” identifies 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 and time needed to obtain the funds from the bank and transfer them into the appropriate ESCROW account. In a real estate transaction, terms are equally as important as cash, because they dictate to sellers under what conditions they’ll get to 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 real estate search online. In NEW YORK, 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 rules for purchase and its particular amenities to provide. Each area of Manhattan has its own disadvantages, quirks and advantages. And doral rental communities or broker is equal. You will want to some conduct some preliminary research so as 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 talk with you and be prepared to close on accommodations unit you like once 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, 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 take it,” and cash buyers can close in less than two weeks. Know your own financial situation, and know precisely how quickly you are ready to move on a property you like. The ability to quickly transfer to ESCROW will give you a significant advantage against other buyers.
Just because a property falls beneath the luxury umbrella, does not necessarily mean that it’s problem-free. Structural problems such as improper weight baring pillars and roofing issues, evidence of water damage and mold, or piping and HVAC problems are simply some of the problems one will discover in any property. That is why it is integral that certain conducts a home inspection before signing on the dotted line. Most of all, make sure your contract for purchase carries a home inspection contingency, i.e. a statement that allows you to freely walk away from the property 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 real estate market is a market unto itself, comparable to none other in the usa. It plays by its degree of supply and demand rules. International demand for NYC luxury property is still one significant reason Manhattan prices are so high compared 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 virtually any month of 2012. Sales numbers across most brokerages indicate the fact that we are 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. Understand that the NYC luxury real estate market is not depressed by any means and factor this knowledge into your method of purchase.