Plenty of strategies exist for those who want to purchase NYC luxury property but don’t want to spend an exorbitant amount of cash. One way would be to purchase a unit in a lower floor of a luxury building. A second floor unit can cost 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, some lines in a building can carry an increased price tag than others… for instance, 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 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 that 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” refers to the stipulations under which money is given. For cash-closers, this pertains to among other things, how many days had a need to close. For mortgage holders, it identifies your percentages for interest and also 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, since they dictate to sellers under what conditions they will get to recoup their original price. If you know your terms inside and out, it will make it easier for your broker or agent to negotiate with sellers for you personally.
Based on the National Association of Realtors, 88% of individuals start their real estate 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 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 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 prepared to close on a rental unit you like as soon as 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 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 as little as two weeks. Know your own finances, and know just how quickly you are ready to move on a property you like. The ability to quickly move into ESCROW will give you a significant advantage against other buyers.
Just because a property falls under the luxury umbrella, will not necessarily mean that it is problem-free. vesada doral as improper weight baring pillars and roofing issues, proof water damage and mold, or piping and HVAC problems are simply a number of the problems one can find in any property. That is why it is integral that certain conducts a house inspection before signing on the dotted line. Most of all, ensure that your contract for purchase carries a home inspection contingency, i.e. a statement that permits you to freely walk away from the property if the inspector finds an issue with it. A competent broker also won’t waste your time or their own by showing you properties that aren’t satisfactory.
THE BRAND NEW York City real estate market is really a market unto itself, much like none other in the usa. It plays by its level of supply and demand rules. International demand for NYC luxury real estate 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 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. Know that the NYC luxury market is not depressed at all and factor this knowledge into your method of purchase.