Plenty of strategies exist for individuals who want to purchase NYC luxury real estate but don’t want to spend an exorbitant amount of money. One way is to purchase a unit in less floor of an extravagance building. Another floor unit can cost just 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 per month, as those often have lower asking prices. Alternatively, some lines in a building can carry a higher 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 mortgage to purchase a NYC luxury property, you should get yourself a mortgage approval letter from your 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 who are “bank-approved.” A bank qualification letter is not the same as an approval letter, and will not qualify you 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 also time needed to have the funds from the lender and transfer them into 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 purchase price. Once you learn your terms inside and out, it will make it easier for the broker or agent to negotiate with sellers for you.
In line with the National Association of Realtors, 88% of individuals 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 own rules for purchase and its own amenities to offer. Each section of Manhattan has its own disadvantages, quirks and advantages. Rather than every agent or broker is equal. You will want to some conduct some research so that you can stay ahead of YOUR competition – other ready, willing and able buyers. Which brings us to your next point…
You might have heard this adage before with regards to the NYC Rental market: bring a bank-certified talk with you and be ready to close on accommodations unit you like once you see it, because the next person to view 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. apartments for rent doral can walk right in and say “I’ll take it,” and cash buyers can close in less than two weeks. Know your personal finances, and know precisely how quickly you are ready to move on a property 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, does 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, or piping and HVAC problems are just 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 allows you to freely leave from the property 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 are not satisfactory.
The New York City real estate 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 real estate is still one significant reason Manhattan prices are so high in comparison to the 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 available 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 have been 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 method of purchase.
