Plenty of strategies exist for individuals who want to purchase NYC luxury property but don’t want to spend an exorbitant amount of money. One way is to purchase a unit in less floor of an extravagance building. A second floor unit can cost around 19% greater than a comparable unit on the initial 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 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 mortgage to purchase a NYC luxury real estate property, you should get yourself a mortgage approval letter from your 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 see a property under bank-approval requirements.
In the true estate industry, “terms” identifies the stipulations under which money is given. For cash-closers, this relates to among other things, just how many days needed to close. For mortgage holders, it refers to your percentages for interest in addition to time needed to obtain the funds from the lender and transfer them into the appropriate ESCROW account. In a real estate transaction, terms are equally as important as cash, since they dictate to sellers under what conditions they will reach recoup their original price. Once you learn your terms inside and out, it will 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 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 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 section of Manhattan has its own 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 might have heard this adage before in regards to the NYC Rental market: bring a bank-certified talk with you and be prepared to close on accommodations unit you like as soon as you see it, as the next person to see it might just snag it from under your nose. Similar fervor pertains to the NYC buyers’ market, especially 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 take it,” and cash buyers can close in less than two weeks. Know your own financial situation, and know just how quickly you are ready to move on a property you like. The opportunity to quickly move into ESCROW will give you a substantial advantage against other buyers.
Just because a property falls under the luxury umbrella, will not necessarily mean that it’s 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 simply some of the problems one can find in any property. That is why it is integral that one conducts a house 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 permits 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 and effort or their own by showing you properties that aren’t satisfactory.
THE BRAND NEW York City market is really a market unto itself, much like none other in america. rental communities in doral plays by its own level of supply and demand rules. International demand for NYC luxury property is still one significant reason Manhattan prices are so high in comparison to the 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 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. Know that the NYC luxury market is not depressed at all and factor this knowledge into your approach to purchase.