Plenty of strategies exist for those 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 lesser floor of a luxury building. Another floor unit can cost just as much as 19% more 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 a higher price than others… for example, 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 will want to get yourself 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 can not qualify one to visit a property under bank-approval requirements.
In the real estate industry, “terms” identifies the stipulations under which money is given. For cash-closers, this pertains to among other things, just how many days needed to close. For mortgage holders, it identifies your percentages for interest and time needed to have the funds from the lender and transfer them into the appropriate ESCROW account. In a genuine estate transaction, terms are equally as important as cash, because they dictate to sellers under what conditions they’ll get to recoup their original purchase price. If you know your terms inside and out, it’ll make it easier for your broker or agent to negotiate with sellers for you.
Based on 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 of doing your own research is to be ahead of your rivals – other ready, willing and able buyers. Each NYC luxury building has its rules for purchase and its particular amenities to offer. Each area of Manhattan has its own disadvantages, quirks and advantages. Rather than every real estate agent or broker is equal. You will need to some conduct some preliminary research as a way 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 with 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 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 take it,” and cash buyers can close in less than two weeks. Know your personal financial situation, and know precisely how quickly you are prepared to move on a house you like. The opportunity to quickly transfer to 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 for example improper weight baring pillars and roofing issues, evidence of water damage and mold, or piping and HVAC problems are just some of the problems one will discover in any property. This 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 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 and effort or their very own by showing you properties that are not satisfactory.
The New York City market is really a market unto itself, much like none other in america. It plays by its degree of supply and demand rules. International demand for NYC luxury property 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 real estate since 2008. REBNY also reported that broker confidence in the market has been higher in January 2013 than in virtually any month of 2012. Prestige Kadugodi across most brokerages indicate the fact that we are 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. Know that the NYC luxury real estate market is not depressed at all and factor this knowledge into your method of purchase.