Plenty of strategies exist for individuals who desire to purchase NYC luxury real estate but don’t want 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 up to 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 a higher price 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 purchase a NYC luxury property, you will need to get a mortgage approval letter from your bank stating the number of mortgage loan for which 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 exactly like an approval letter, and can not qualify you to see a property under bank-approval requirements.
In the true estate industry, “terms” identifies the stipulations under which money is given. For cash-closers, this pertains to among other things, just how many days had a need to close. For mortgage holders, it identifies your percentages for interest in addition to time needed to have the funds from the bank 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’ll make it easier for the broker or agent to negotiate with sellers for you.
According to 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 to do your own research is to be ahead of your rivals – other ready, willing and able buyers. Each NYC luxury building has its own rules for purchase and its particular amenities to offer. Each section of Manhattan has its disadvantages, quirks and advantages. Rather than every real estate agent or broker is equal. タワーマンションなら will want to some conduct some research so as to stay ahead of YOUR competition – 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 check with you and be ready to close on a rental unit you like once you see it, because the next person to see 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 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 financial situation, and know just how quickly you are prepared to move on a house you like. The ability to quickly transfer to ESCROW will give you a substantial advantage against other buyers.
Wish property falls under the luxury umbrella, will not necessarily mean that it’s problem-free. Structural problems such as improper weight baring pillars and roofing issues, proof water damage and mold, or piping and HVAC problems are just a number of the problems one can find in any property. This is why it is integral that one conducts a home 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 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 the usa. It plays by its level of supply and demand rules. International demand for NYC luxury real estate continues to be 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 real estate since 2008. REBNY also reported that broker confidence on the market has been higher in January 2013 than in 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 being able to pick and choose among a pool of possible buyers. Understand that the NYC luxury market is not depressed by any means and factor this knowledge into your method of purchase.