Plenty of strategies exist for individuals who desire to purchase NYC luxury property but don’t desire to spend an exorbitant amount of cash. One way is to buy a unit in a lower floor of a luxury building. Another 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 an increased price tag than others… for instance, a unit line with windowed bathrooms will fetch a lot 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 need to get yourself a mortgage approval letter from your bank stating the volume of 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 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 had a need to close. For mortgage holders, it identifies your percentages for interest and also time needed to have the funds from the lender and transfer them into the appropriate ESCROW account. In a real estate transaction, terms are just as important as cash, because they dictate to sellers under what conditions they will 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 personally.
According to 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 usually 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 area of Manhattan has its disadvantages, quirks and advantages. Rather than every agent or broker is equal. You should some conduct some preliminary research so that you can 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 talk with you and be prepared to close on a rental unit you like as soon as you see it, because the next person to see it might just snag it from under your nose. Similar fervor pertains to the NYC buyers’ market, specifically for luxury NYC real estate. 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 Kohlbrenner – Apartments with a view , and know precisely how quickly you are prepared to move on a house you like. The ability to quickly move into ESCROW will give you a substantial 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 improper weight baring pillars and roofing issues, evidence of water damage and mold 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 one conducts a home inspection before signing on the dotted line. Most importantly, ensure that your contract for purchase includes a home inspection contingency, i.e. a statement that permits you to freely walk away from the house if the inspector finds an issue with it. A competent broker also won’t waste your time or their own by showing you properties that aren’t satisfactory.
THE BRAND NEW York City real estate market is really a market unto itself, comparable to none other in the United States. It plays by its level 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 the most successful year (over $30 billion in property sales) for NYC property 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 are continuing to trend towards a sellers’ market, as sellers and co-op boards continue to be able to choose among a pool of possible buyers. Understand that the NYC luxury real estate market is not depressed at all and factor this knowledge into your approach to purchase.
