Plenty of strategies exist for those who want to purchase NYC luxury property but don’t want to spend an exorbitant amount of money. One way would be to buy a unit in less floor of an extravagance building. Another floor unit can cost as much as 19% greater than a comparable unit on the first floor. Another option would be 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 tag than others… for instance, 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 property, you will need to get a mortgage approval letter from your own bank stating the amount 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 one to see a property under bank-approval requirements.
In the real estate industry, “terms” identifies the stipulations under which money is given. For cash-closers, this pertains to among other things, just how many days needed to close. For mortgage holders, it refers to your percentages for interest along with 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, since they dictate to sellers under what conditions they’ll reach recoup their original price. Once you learn your terms inside and out, it’ll make it easier for your 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, 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 own rules for purchase and its particular amenities to offer. Each area of Manhattan has its disadvantages, quirks and advantages. And not every agent or broker is equal. You should 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 ready to close on a rental unit you like as soon as 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 real estate. International all-cash buyers are 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 as little as two weeks. Know your own financial situation, and know precisely 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 rental communities doral 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, proof water damage and mold, or piping and HVAC problems are just a number of the problems one will discover in any property. That is why it is integral that one conducts a home inspection before signing on the dotted line. Most importantly, make sure 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 reliable broker also won’t waste your time 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 United States. It plays by its own 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 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 in the market has been higher in January 2013 than in 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 choose among a pool of possible buyers. Understand that the NYC luxury real estate market is not depressed by any means and factor this knowledge into your method of purchase.
