Plenty of strategies exist for many who want to purchase NYC luxury real estate but don’t want to spend an exorbitant amount of money. One way would be to purchase a unit in less floor of a luxury building. A second floor unit can cost just as much as 19% more than a comparable unit on the initial floor. Another option would be 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 much more on the open market than 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 a mortgage approval letter from your own bank stating how much 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 visit a property under bank-approval requirements.
In the real estate industry, “terms” refers to the stipulations under which money is given. For Kohlbrenner – Apartments with a view -closers, this pertains to among other things, how many days needed to close. For mortgage holders, it identifies your percentages for interest together 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 just 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 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 property search online. In New York City, 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 disadvantages, quirks and advantages. And not every real estate 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 with 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, as the next person to see it could snag it from under your nose. Similar fervor pertains to the NYC buyers’ market, especially for luxury NYC property. International all-cash buyers are most 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 finances, and know just how quickly you are prepared to move on a property 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, does 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 a number of the problems one will discover in any property. That is why it is integral that one conducts a home 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 allows you to freely leave 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 aren’t satisfactory.
THE BRAND NEW York City market is really a market unto itself, comparable to none other in the usa. 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 other 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 available 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. Know that the NYC luxury real estate market is not depressed by any means and factor this knowledge into your method of purchase.