Plenty of strategies exist for individuals who want to purchase NYC luxury real estate but don’t want to spend an exorbitant sum of money. One way is to buy a unit in a lesser floor of a luxury building. A second floor unit can cost as much as 19% more than a comparable unit on the first floor. Another option would be to seek units with higher maintenance or common charges monthly, as those often 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 when compared to 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 yourself 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 is not the same as 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 relates to among other things, just how many days had a need to close. For mortgage holders, it refers to your percentages for interest as well as 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 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 will make it easier for the broker or agent to negotiate with sellers for you.
In line with 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 search 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 own rules for purchase and its particular amenities to provide. Each area of Manhattan has its disadvantages, quirks and advantages. Rather than every real estate agent or broker is equal. You should some conduct some research as a way to stay ahead of Your rivals – 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 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 pertains 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 take it,” and cash buyers can close in as little as two weeks. Know your own financial situation, 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 is 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 can find in any property. That is why it is integral that one conducts a home 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 allows 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 or their own by showing you properties that are not satisfactory.
THE BRAND NEW York City real estate market is really a market unto itself, much like none other in the United States. It plays by its own level of supply and demand rules. Prestige Kadugodi for NYC luxury real estate is still one significant reason Manhattan prices are so high in comparison 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 on 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 being able to 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 approach to purchase.