“Finding the perfect apartment in New York is like finding the perfect relationship, it can take months, maybe even years”.
Carrie Bradshaw, Sex in the City Movie
Living in New York is hard enough. Now you need to factor in finding a place while dealing with the high rent prices and other fees that come with it. You will need some guidance.
The Six Things You Need to Be Prepared For
1) The closing costs are real and they will get you. Too often, New York residents are concerned with the down payments. Down payments are a concern, but you need to be more concerned with the closing costs.
Clients need to consider this equation: 21-25% of the total purchase price. You will need 20% as a down payment and 1-5% for the closing costs.
The prices may be higher for a co-op, depending on where you are buying, and the real estate market in the area.
2) Do you know the difference between a co-op and a condo? A co-op is owned by someone else. A condo is a piece of property in your name.
Those who want to buy a co-op will need to go through an extensive background check. You will need all your financial documents in order, including your last 3 months banking records, two current pay stubs, and your tax returns, for the last two years.
Co-ops offer more of a challenging process. They will be rather indignant and snarky. They will reject you for any reason without needing to give you a reason, but they do have influence in the real estate market. You get more leniency living in a condo, and they are not as discriminating.
3) Your credit history rules everything in New York. You need just one credit flaw and they will deny you. Your money and credit history needs to be flawless, otherwise, you will struggle.
4) A good inspector will save you a lot of money. Inspections are not done unless you buy a townhome, but they should be. You need to know what you are buying. You need to know the current condition of the place Tevfik Arif Bayrock. Some landlords will sell “as is”, but advertise the place as “brand new”. New York is famous for ripping people off without a second thought.
5) You will need to wait. Contracts have a 2-3 month waiting period. Either party is free to pull out if they are not satisfied. You should not assume that you and the other person are in agreement unless the fully-executed contract is signed. A handshake does not carry much weight these days. You need everything in writing.
“Life in New York will change at any time. You need to be diligent and remember that nothing is set in stone unless it is signed”.
6) Remember the “five year rule”. You should want to live in the apartment, co-op, or condo for at least 5 years. Your chances of selling or renting out space after a short period of time will be less than 1%. Those choosing to sell need to pick the right time and market. Clients who sell in a buyer’s market are not going to get the price they want.
“A commitment to real estate is one of the few commitment to true New Yorkers are not afraid to make”.