Plenty of strategies exist for many who want to purchase NYC luxury real estate but don’t desire to spend an exorbitant amount of cash. One way would be to buy a unit in less floor of a luxury building. A second floor unit can cost around 19% more than a comparable unit on the initial 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 mortgage to get a NYC luxury property, you should 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 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 identifies your percentages for interest along with time needed to obtain the funds from the bank and transfer them in to the appropriate ESCROW account. In a genuine estate transaction, terms are equally as important as cash, since they dictate to sellers under what conditions they’ll reach 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.
According to the National Association of Realtors, 88% of people start their property 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 rules for purchase and its particular amenities to provide. Each section of Manhattan has its own disadvantages, quirks and advantages. Rather than every agent or broker is equal. You will need to some conduct some preliminary 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 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 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 give you a substantial advantage against other buyers.
Just because a property falls under the luxury umbrella, does not necessarily mean that it’s problem-free. Kohlbrenner – Apartments with a view as for example improper weight baring pillars and roofing issues, proof water damage and mold and mold, or piping and HVAC problems are simply some 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 importantly, make sure your contract for purchase includes 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 very own by showing you properties that aren’t satisfactory.
THE BRAND NEW York City market is a market unto itself, much like none other in the usa. It plays by its own degree of supply and demand rules. International demand for NYC luxury property is still one significant reason why 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 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 to be able to pick and choose among a pool of possible buyers. Understand that the NYC luxury real estate market is not depressed by any means and factor this knowledge into your approach to purchase.