Helpful Tips For First Time New York City Buyers
With the average price of buying an apartment reaching close to $1 million and more, purchasing a new home in New York City can be daunting.
More Affordable Neighborhoods
There are still plenty of opportunities for more affordable homes. Lovely neighborhoods exist throughout the five boroughs. In Brooklyn: these include Bedford Stuyvesant, Red Hook, Prospect Lefferts Gardens, and in Northern Manhattan: Inwood, Washington and Hamilton Heights, and in Queens: Jackson Heights, Astoria and Long Island City.
First time buyers will need the patience for the long game in finding their home.
New York City is a competitive real estate market. Buyers may have to compromise or prioritize their list of must haves or desired list of wants. Having determination and open-minded vision will help in your search. A supportive real estate agent will definitely help. He or she can negotiate and find your dream home.
Don’t allow the real estate market that offers a limited supply of options discourage you. There is record high construction taking place with many new developments. Be organized, seek assistance from a professional whom you trust. It is wise to be prepared to make an offer within a few days or sooner. Many well-priced properties will have several buyers bidding.
Purchasing a Coop or Condo
A real estate professional you trust can help and guide you through the process. The buying of a coop entails more disclosure. A real estate agent can advise you on what the coop board expects. He or she can prepare your board application with you. Your agent can also advise how to present your best self.
Coops make up around 75% of the buildings in New York City. Coops are usually priced lower than condos. Coops have rules such as no renting/subletting immediately or for more than a certain period of time.
As a buyer if you are looking to buy your first apartment to invest in and use as rental income, you will have to most likely, purchase a condo. While many condos have a less stringent disclosure process, they tend to be more expensive.
For all buyers, you must be ready with your documentation to bid for an apartment. Many coops require more money down. They also will ask proof of past mortgage payments. Some only accept limited financing and high income to debt ratio. Many require more documentation to prove you can pay and will be a long-term owner. Then there is the wait after the coop board interviews you. Most coop boards can reject you and not have to explain why. Of course, Coops cannot discriminate by breaking fair housing laws.
Save Your Money & Make Sure Your Credit is Good
First time buyers must be ready with cash down payment. You will need to put down a 10% deposit on contract signing and it is advisable to have a 20% down payment if your financing is to be taken seriously by the seller. And make sure your credit is in order. You can check your credit report and FICO scores here. I suggest using the paid option since the free one misses some accounts. There is a one time charge / Three report view / $ 59.85.
There are also companies that can help you repair your credit.
The market to buy a home in New York City is very competitive. With winter approaching, there could be small discounts, price reductions and less competition, but nevertheless buyers need to be ready.
More here in a recent New York Times article.
If you need real estate advice and navigating New York City in general, please feel free to call or email me at Tony Simone at (646) 515-9417, firstname.lastname@example.org
Have Fun & Patience
Have fun with the buying process. It is a long game that will take resilience, time, patience and many times looking outside of neighborhoods you once may have not considered. Call me and we can visit open houses together!
Photo Credit: 320 WASHINGTON AVENUE Clinton Hill, Listed by Stribling