Plenty of strategies exist for those who desire to purchase NYC luxury property but don’t desire to spend an exorbitant amount of money. One way would be to buy a unit in a lower floor of an extravagance building. A second floor unit can cost as much as 19% more than a comparable unit on the first floor. Another option is 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 than others… for instance, 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 need to get yourself a mortgage approval letter from your bank stating how much 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 exactly like an approval letter, and can not qualify you to see a property under bank-approval requirements.
In the real 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 in addition to time needed to obtain the funds from the lender and transfer them into the appropriate ESCROW account. In doral rental communities , terms are just as important as cash, since they dictate to sellers under what conditions they’ll get to recoup their original purchase price. Once you learn your terms inside and out, it’ll make it easier for the broker or agent to negotiate with sellers for you.
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 do some searching online. The importance to do your own research is usually to be ahead of your competition – other ready, willing and able buyers. Each NYC luxury building has its own rules for purchase and its own amenities to provide. Each area of Manhattan has its disadvantages, quirks and advantages. Rather than every agent or broker is equal. You should some conduct some preliminary research to be able to stay ahead of Your rivals – other ready, willing and able buyers. Which brings us to your next point…
You’ve probably 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 could snag it from under your nose. Similar fervor applies to the NYC buyers’ market, especially for luxury NYC real estate. International all-cash buyers are most likely your strongest competition in the NYC luxury market. They can walk right in and say “I’ll go on it,” and cash buyers can close in less than two weeks. Know your own finances, and know just how quickly you are ready to move on a house you like. The ability to quickly move into ESCROW will provide you with a substantial advantage against other buyers.
Wish property falls beneath the luxury umbrella, will 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 a number 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 includes a home inspection contingency, i.e. a statement that permits you to freely leave from the property if the inspector finds an issue with it. A reliable broker also won’t waste your time or their own by showing you properties that aren’t satisfactory.
THE BRAND NEW York City market is a market unto itself, much like none other in america. It plays by its own level 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 property since 2008. REBNY also reported that broker confidence on 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 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 approach to purchase.