New York City is one of the greatest cities in the United States. It is also one of the most expensive places to buy an apartment for first-time buyers. It is known that buying into the New York City market is more difficult than buying into most housing markets in North America. There are many obstacles in purchasing a house, such as high closing costs, high co-op and condo fees, and down payments, but a combination of useful tips and strategies can help first-time buyers to buy their first-ever NYC home.
- Save: To buy a good condo or co-op in NYC, the first step is to save as much money as possible to clear the down-payment. The down-payments requests usually range from 20-30%, so regardless of what type of property you plan to buy, save your money.
- Don’t forget closing costs: Be prepared for other large and small charges, including the higher-than-average closing costs. These costs can vary from 1-4% of the purchase price, depending on what you want to buy. A smart tip for all first-time buyers; make sure to ask for a rebate, so you don’t leave your money on the table.
- Start your search: Once you have an idea about your budget, start searching for an apartment and try to keep an open mind. You can research neighborhoods that meet your requirements, save them, and keep checking when there are open houses or price changes.
- Get preapproved: After selecting your desired property, you should connect with a lender or a mortgage broker to receive an estimate on how much you will likely be able to borrow based on an initial review of your credit and financial information. It helps you to get a clear understanding of how much you want to spend on the apartment.
- Gather your team: Look for an agent and a real estate lawyer who have established track records working with buyers in your situation and who will get back to you promptly. You want an agent who can help you come up with a sound offer based on market analysis and who will put together a well-rounded application package on your behalf.
- Be prepared for competition: Many people are competing to buy a place in NYC, and the purchasing competition is as competitive as the rental. So, if you see a well-priced condo in your budget, purchase it as soon as possible because it is unlikely that it will stay on the market for a longer time. However, don’t get emotionally attached to a place because it is heartbreaking when you go into a ‘best and final’ and you don’t get it.