Plenty of strategies exist for individuals who want to purchase NYC luxury real estate but don’t want to spend an exorbitant amount of money. One way is to purchase a unit in less floor of an extravagance building. A second floor unit can cost around 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 often have lower asking prices. Alternatively, some lines in a building can carry an increased price tag than others… for example, a unit line with windowed bathrooms will fetch a lot more on the open market than a line whose bathrooms are lit only by fixtures.
If you need a mortgage to purchase a NYC luxury property, you should get yourself a mortgage approval letter from your own bank stating the number of mortgage loan that 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 the same as an approval letter, and can 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 relates to among other things, just how many days needed to close. For mortgage holders, it refers to your percentages for interest in addition to time needed to have the funds from the lender and transfer them in to 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 will reach 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 personally.
Based on 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 do some searching online. Prestige Park Grove of doing your own research is usually to be ahead of your rivals – other ready, willing and able buyers. Each NYC luxury building has its own rules for purchase and its own 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 will want to some conduct some preliminary research in order to stay ahead of YOUR competition – other ready, willing and able buyers. Which brings us to our next point…
You’ve probably heard this adage before in regards to the NYC Rental market: bring a bank-certified talk with you and be prepared to close on accommodations unit you like once you see it, as the next person to view it might just snag it from under your nose. Similar fervor applies to the NYC buyers’ market, specifically 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 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 significant advantage against other buyers.
Just because a property falls beneath the luxury umbrella, does not necessarily mean that it is problem-free. Structural problems such as for example improper weight baring pillars and roofing issues, proof water damage and mold, or piping and HVAC problems are just a number of the problems one will discover in any property. This is why it is integral that certain conducts a home inspection before signing on the dotted line. Most importantly, ensure that your contract for purchase carries a home inspection contingency, i.e. a statement that allows you to freely leave from the property 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 BRAND NEW York City market is a market unto itself, much like none other in the usa. It plays by its level of supply and demand rules. International demand for NYC luxury real estate continues to be one significant reason 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 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. Understand that the NYC luxury market is not depressed at all and factor this knowledge into your approach to purchase.