Plenty of strategies exist for many who desire to purchase NYC luxury property but don’t want to spend an exorbitant amount of cash. One way is to purchase a unit in less floor of an extravagance building. Another floor unit can cost up to 19% more 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 tag than others… for example, 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 real estate property, you will need to get a mortgage approval letter from your bank stating the amount of mortgage loan for which you are approved. Savvy sellers can legally tell their brokers to only show properties to buyers who are “bank-approved.” A bank qualification letter isn’t exactly like an approval letter, and will not qualify you to see 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, just how many days had a need to close. For mortgage holders, it refers to your percentages for interest and time needed to have the funds from the lender and transfer them into the appropriate ESCROW account. In doral rental communities , terms are equally as important as cash, because they dictate to sellers under what conditions they will get to 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.
Based on the National Association of Realtors, 88% of individuals 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 to do your own research is usually 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. And not every real estate agent or broker is equal. You should some conduct some preliminary research so as to stay ahead of Your rivals – 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 prepared to close on accommodations unit you like once you see it, as the next person to view it could snag it from under your nose. Similar fervor applies to the NYC buyers’ market, specifically for luxury NYC property. 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 just how quickly you are ready to move on a house you like. The opportunity to quickly transfer to ESCROW will give you a significant advantage against other buyers.
Just because a property falls under the luxury umbrella, does not necessarily mean that it is problem-free. Structural problems such as improper weight baring pillars and roofing issues, evidence of water damage and mold and mold, or piping and HVAC problems are just some of the problems one can find in any property. That is why it is integral that one 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 permits you to freely walk away from the house if the inspector finds a problem with it. A competent broker also won’t waste your time and effort or their very own by showing you properties that aren’t satisfactory.
The New York City market is a market unto itself, comparable to none other in america. It plays by its 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 available in the market has been higher in January 2013 than in virtually 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. Know that the NYC luxury market is not depressed at all and factor this knowledge into your method of purchase.