The process of searching for and buying property can be lengthy and difficult. And in NYC, buying real estate can present a particular challenge.
The high prices and fierce competition for space in New York dictate that you be vigilant and well-prepared in order to secure a desirable property. Before attempting to purchase, prepare by following these steps.
1. Decide on a Budget
Figuring out what you can afford is the necessary first step to buying a property that you desire. Having a realistic budget will simplify your options and also help to ensure the financial viability of whatever you eventually decide on.
Settle on the amount of money you can realistically pay toward a mortgage, but also account for the additional expenses that will be brought on by maintenance, taxes, repairs, and utilities.
2. Visualize the Space
Now that you have an idea of what you can afford, spend time figuring out what you actually want. Choosing a specific borough and neighborhood will heavily impact how far your money will take you.
Balance the priority of the location with priorities about the physical space itself—the room breakdown of a place (bedrooms, bathrooms), its overall size, and included amenities are all common considerations to address.
3. Get Pre-Qualified
Showing up to your dream property with a mortgage pre-qualification letter in-hand shows the seller that you mean business. Be sure to meet with a lender prior to looking at properties.
A bank or mortgage broker can provide you with a pre-qualification letter for free—this will speed up the acquisition process, which is what you and the seller both want.
4. Find a Property
This should be a pleasing part of the process. Don’t be afraid to look at upward of 20 apartments before you buy. Consider working with a broker in order to streamline selection and evaluation.
This is where your personal taste should be guided by the pragmatism of your earlier purchasing preparations.
5. Make an Offer
Once an apartment is found, it’s time to place an offer. If the seller believes your offer to be too low, negotiations may ensue. This process can go on for quite some time—you should be prepared to have to increase your offer.
6. Hire a Lawyer
Before a purchase can officially be made, it’s necessary to hire a real estate lawyer. This is because in order to draft a sales contract and complete closing procedures, both NYC sellers and buyers are represented by attorneys.
These lawyers usually specialize in real estate and will review the specific laws that govern the property, the building, and the neighborhood that it is in. They will then help you to understand and agree to the terms of the sales contract, and be on-hand when you sign it at the closing.
