Plenty of strategies exist for many who desire to purchase NYC luxury property but don’t desire to spend an exorbitant amount of cash. One way is to buy a unit in less floor of a luxury building. Another floor unit can cost just as much as 19% more than a comparable unit on the first floor. Another option would be 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 a higher price tag than others… for example, 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 get a NYC luxury real estate property, you will want to get a mortgage approval letter from your bank stating the amount 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 you to visit a property under bank-approval requirements.
In the true 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 refers to your percentages for interest and time needed to obtain the funds from the bank and transfer them in to the appropriate ESCROW account. In apartments in doral , terms are just as important as cash, since 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.
According to the National Association of Realtors, 88% of people start their real estate search online. In New York City, home of the savvy shopper, over 90% of buyers and renters start their search 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 rules for purchase and its own amenities to offer. Each section of Manhattan has its disadvantages, quirks and advantages. And not every agent or broker is equal. You will want to some conduct some research to be able to 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 talk with you and be ready to close on a rental unit you like as soon as you see it, as 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 less than two weeks. Know your personal finances, and know precisely how quickly you are ready to move on a house you like. The opportunity to quickly move into ESCROW will provide you with a substantial advantage against other buyers.
Just because a 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 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 carries a home inspection contingency, i.e. a statement that allows you to freely leave from the house 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 aren’t satisfactory.
The New York City real estate market is a market unto itself, comparable to none other in america. It plays by its own degree of supply and demand rules. International demand for NYC luxury property continues to be one significant reason why Manhattan prices are so high compared 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 in 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 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 at all and factor this knowledge into your method of purchase.