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 buy a unit in a lower floor of an extravagance building. A second floor unit can cost around 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 often have lower asking prices. Alternatively, some lines in a building can carry a higher price than others… for instance, 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 purchase a NYC luxury property, you will need to get a mortgage approval letter from your bank stating how much mortgage loan that you are approved. Savvy doral luxury apartments can legally tell their brokers to only show properties to buyers that are “bank-approved.” A bank qualification letter isn’t exactly like an approval letter, and will not qualify you to visit 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 pertains to among other things, just how many days had a need to close. For mortgage holders, it identifies your percentages for interest together with time needed to obtain the funds from the bank and transfer them in to the appropriate ESCROW account. In a real estate transaction, terms are equally as important as cash, because they dictate to sellers under what conditions they will get to recoup their original price. If you know 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 people start their real estate search online. In NEW YORK, home of the savvy shopper, over 90% of buyers and renters start their do some searching online. The importance to do your own research is to be ahead of your competition – other ready, willing and able buyers. Each NYC luxury building has its rules for purchase and its particular amenities to offer. Each area of Manhattan has its disadvantages, quirks and advantages. Rather than every real estate agent or broker is equal. You will need 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 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 a rental unit you like once you see it, because the next person to view it might just snag it from under your nose. Similar fervor applies 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 take it,” and cash buyers can close in as little as two weeks. Know your personal financial situation, and know precisely how quickly you are ready to move on a house you like. The ability 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 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 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, 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 reliable 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, comparable to none other in the United States. It plays by its level of supply and demand rules. International demand for NYC luxury real estate is still 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 available 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 to be able to pick and 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.