Plenty of strategies exist for individuals who want to purchase NYC luxury real estate but don’t desire to spend an exorbitant amount of cash. One way would be to purchase a unit in less floor of a luxury 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 monthly, 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 a lot 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 should get 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 exactly like an approval letter, and can not qualify you to visit 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, how many days needed to close. For mortgage holders, it refers to your percentages for interest along with time needed to obtain 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, since they dictate to sellers under what conditions they’ll reach recoup their original purchase price. Once you learn your terms inside and out, it’ll make it easier for the broker or agent to negotiate with sellers for you personally.
In line with 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 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 provide. Each area of Manhattan has its own disadvantages, quirks and advantages. Rather than every agent or broker is equal. rental communities in doral will need to some conduct some 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 talk with you and be ready to close on a rental unit you like once 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 most 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 just how quickly you are prepared to move on a house you like. The opportunity to quickly move into ESCROW will provide you with 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, or piping and HVAC problems are simply some of the problems one will discover in any property. That 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 or their very own by showing you properties that aren’t satisfactory.
The New York City real estate market is really 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 real estate is still one significant reason Manhattan prices are so high compared to other areas. REBNY reported that 2012 was probably the most successful year (over $30 billion in property sales) for NYC property since 2008. REBNY also reported that broker confidence in the market has been higher in January 2013 than in virtually any month of 2012. Sales numbers across most brokerages indicate 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 by any means and factor this knowledge into your method of purchase.