Buying a home in New York City sounds like a dream for so many people! That dream is now to become true for you. You’re about to buy your first home in the Big Apple. How exciting! And scary at the same time, isn’t it? This is how most first home buyers in NYC feel. If you’re one of them, read on. Here are some tips and hints you were looking for.
Be Realistic And Set Your Priorities
It’s hard enough for first home buyers to find a perfect home anywhere in the States and its way harder to do that in New York City. There are three main aspects when searching for an apartment in NYC, whether to rent or buy: location, size, and price. You’re lucky if you have to compromise on only one. Most people have to sacrifice two of those. And if you’re with most people in this case – it is what it is, you just need to start somewhere. Set your priorities and you’ll know what to do.
Do you appreciate location above anything else? That’s fine, but be ready to pay a fortune for an apartment that would be considered one’s living room somewhere else. Do you want more space? Just fine, but be prepared to pay tons of money and still be condemned to long commutes. Finally, if you’re looking for a bargain, you’ll end up in a shoebox outside of New York City. And it’s all fine; it’s just that you need to know what your priorities are and what you’re looking for. But first, calculate the moving costs. And if that seems like much – you might need to rethink your goals. Buying an apartment in NYC is no joke.
Where should first home buyers in NYC shop for a new home?
It’s all up to the person’s assets and what they are looking for. If you’re ambitious, Manhattan is a place for you. If interested in cheaper prices and a nice neighborhood to live in opt for Brooklyn (but avoid areas close to Manhattan, as properties are extremely pricey there as well). Wherever you decide to buy though, consider transportation options. How close or far away is that apartment from subway and bus lines? That will greatly affect the property’s price. But having a car may cost you even more. Paying to park your car in New York City can cost a fortune.
Save, save, save! And then save some more!
Not only that buying a property in New York City is incredibly expensive, but a down payment is no less than 20 percent of the purchase price. Many first home buyers in NYC don’t even imagine they would be asked to pay that much at once and it comes as quite a shock to them. It’s true that condos sometimes come with a 90 percent financing limit, so a down payment gets to be 10 percent in those cases. But guess what? You need to qualify for that kind of loan and be able to pay PMI (private mortgage insurance) if you decide to go with anything less than 20 percent down. Add closing costs to that (and they come around 3 to 5.5 percent of the purchase price) and you get the picture. To save, save, save!
Get preapproved before starting your search
Before starting the real home hunt, sit with a mortgage broker and get preapproved. The process takes no more than 48 hours and then you know what you can afford. You won’t necessarily buy the most expensive property out there you can, but at least you’ll know what’s within your reach at that moment (and what’s not). There are two reasons why first home buyers in NYC should get preapproved for a mortgage before anything else. First of all, you won’t bother to go and see apartments that you could not buy at all. Secondly, sellers will take your offer a lot more seriously if you prove that you have that money.
Ready to start looking?
Some popular websites to start with are StreetEasy, Brick Underground, Citi Habitat, The Corcoran Group, Douglas Elliman. Check out the tried–and–true websites as well, such as Zillow and Trulia.
Read also: Figuring Out The Best Siding Material
Be faster than your competition
When you find an apartment you really like, don’t think too much. If you do so, someone will probably take it in the meantime. Yes, that’s right, the competition is huge in the Big Apple when it comes to anything, and buying a property is not an exception. You might have different expectations considering the prices, but demand for apartments in NYC exceeds supply. New York City real estate has been such a competitive market for so long that it doesn’t seem likely to change in the near future at all. This is why first home buyers in NYC should not be hesitant when making an offer. Once your offer is accepted and purchase has been made, you can start looking for a reliable moving company in the city. Let us help you with this one as well – try Dynamic Movers NYC.
Hire a buyer’s broker
When you’re making a large investment such as buying a property in New York City, it’s smart to get professional help. Moreover, buyers’ brokers generally make their money through the commission split with listing brokers, so it won’t even cost you anything. But why do you need a broker anyway? To help you with the searching and purchasing process, that has now become very demanding. They will find proper listings for you, submit offers on your behalf, negotiate the price and terms, get you connected with closing real estate lawyers, and more. On top of all that, a good broker will educate you about the process, about products in your price range and the neighborhoods you’re interested in. Just make sure to find a broker who will act in your best interest and ensure the whole process goes smoothly.
Sounds quite demanding, doesn’t it? Buying a property in New York City is not a joke. Don’t get frustrated and discouraged too fast though. Remember that old saying – no one said it would be easy, but it’s going to be worth it. This is what your attempt at buying your first home in New York City will probably look like. But it won’t take that long and you’ll be living in your own apartment in New York City. How amazing is that?