Plenty of strategies exist for individuals who desire to purchase NYC luxury real estate but don’t desire to spend an exorbitant amount of money. One way is to purchase a unit in a lesser floor of an extravagance building. A second floor unit can cost up to 19% more than a comparable unit on the initial floor. Another option would be to seek units with higher maintenance or common charges per month, as those often 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 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 property, you will need to get yourself a mortgage approval letter from your bank stating the quantity of mortgage loan that 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 visit 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, how many days had a need to close. For mortgage holders, it refers to your percentages for interest along with 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 just as important as cash, since they dictate to sellers under what conditions they will reach 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.
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 do some searching 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 own rules for purchase and its particular amenities to provide. Each section of Manhattan has its disadvantages, quirks and advantages. And not every real estate agent or broker is equal. apartments for rent costa mesa You will want to 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 accommodations unit you like once 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, especially 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 go on it,” and cash buyers can close in less than two weeks. Know your own finances, and know precisely how quickly you are ready to move on a property you like. The opportunity to quickly transfer to ESCROW will give you a significant advantage against other buyers.
Wish property falls under the luxury umbrella, does not necessarily mean that it’s 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 simply some of the problems one will discover 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 includes a home inspection contingency, i.e. a statement that permits you to freely walk away from the property 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 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 real estate continues to be one significant reason Manhattan prices are so high compared to the areas. REBNY reported that 2012 was probably the most successful year (over $30 billion in property sales) for NYC real estate since 2008. REBNY also reported that broker confidence on 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 real estate market is not depressed at all and factor this knowledge into your method of purchase.