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 purchase a unit in a lower floor of a luxury building. A second 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 than others… for instance, a unit line with windowed bathrooms will fetch much more on the open market than a line whose bathrooms are lit only by fixtures.
If you need a home loan to get a NYC luxury real estate property, you should get a mortgage approval letter from your bank stating the quantity 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 isn’t the same as an approval letter, and will not qualify one to visit a property under bank-approval requirements.
In the true estate industry, “terms” identifies the stipulations under which money is given. For cash-closers, this relates to among other things, just how many days needed to close. For mortgage holders, it refers to your percentages for interest as well as time needed to have 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, since they dictate to sellers under what conditions they’ll get to recoup their original price. Once you learn your terms inside and out, it’ll make it easier for your broker or agent to negotiate with sellers for you.
In line with the National Association of Realtors, 88% of individuals 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 usually to be ahead of your rivals – 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 own 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 rivals – 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 once you see it, because the next person to view it could snag it from under your nose. Similar fervor pertains to the NYC buyers’ market, specifically for luxury NYC real estate. International all-cash buyers are 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 as little as two weeks. Know your own financial situation, and know precisely how quickly you are prepared to move on a house you like. The ability to quickly transfer to ESCROW will provide you with a significant advantage against other buyers.
Just because a property falls under the luxury umbrella, will not necessarily mean that it is 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 just 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 includes a home inspection contingency, i.e. a statement that permits you to freely walk away from the house if the inspector finds an issue 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 really a market unto itself, much like none other in the United States. It plays by its own level of supply and demand rules. International demand for NYC luxury real estate is still one significant reason why 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 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 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. Know that rental communities doral is not depressed at all and factor this knowledge into your method of purchase.
