Plenty of strategies exist for individuals who want to purchase NYC luxury real estate but don’t want 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 as much as 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 frequently 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 much more on the open market than a line whose bathrooms are lit only by fixtures.
If you need a home loan to get a NYC luxury real estate property, you should get yourself a mortgage approval letter from your own bank stating the volume 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 will not qualify one to see a property under bank-approval requirements.
In the real estate industry, “terms” refers to the stipulations under which money is given. For cash-closers, this relates to among other things, how many days had a need to close. For mortgage holders, it refers to 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 genuine estate transaction, terms are equally as important as cash, since they dictate to sellers under what conditions they’ll get to 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 apartments for rent doral 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 own amenities to offer. Each section of Manhattan has its disadvantages, quirks and advantages. And not every agent or broker is equal. You will want to some conduct some preliminary research as a way to stay ahead of YOUR competition – other ready, willing and able buyers. Which brings us to your 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 ready to close on accommodations unit you like once you see it, as the next person to see it could snag it from under your nose. Similar fervor applies to the NYC buyers’ market, specifically for luxury NYC property. International all-cash buyers are 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 own financial situation, and know just 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.
Wish property falls beneath the luxury umbrella, will 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 just a number of the problems one can find in any property. This 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 includes a home inspection contingency, i.e. a statement that allows you to freely leave from the property if the inspector finds an issue with it. A reliable broker also won’t waste your time or their own by showing you properties that are not satisfactory.
THE BRAND NEW York City market is a market unto itself, comparable to 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 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 virtually any month of 2012. Sales numbers across most brokerages indicate 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 at all and factor this knowledge into your method of purchase.
