The real estate market in New York City is unlike any other in the United States. Few other markets are as expensive, competitive or complex. But now, because of COVID-19, buying a home in New York has become even more special. Many residents have left the city, creating more inventory and driving down home prices into a buyer’s market. Combined with record-low mortgage rates, it gives first-time homebuyers a good entry. Even now that the epidemic is gradually returning to normal, the buyer’s market is turning into a home-selling market, and next year’s inevitable rounds of interest rate hikes will not stop the boom in real estate. Today, star real estate agent Lynn will tell you about the issues you need to consider before buying a house in New York and the precautions and procedures for buying a house.
#Q Are you more suitable to buy a house or rent a house?
Even now that Manhattan, Long Island City, and downtown Brooklyn are still buyers’ markets (with few markups), New York houses are notoriously expensive to sell. In addition to the high house price itself, there are also a lot of monthly maintenance fees and property taxes. It is no wonder that many people like to rent. So, how do you decide whether you’re better off renting or buying? If you are a first-time home buyer, ask yourself the following questions:
1. Do you plan to move in the next 2-3 years?
If there is no plan to relocate to work elsewhere in the past few years, buying a long-term house is usually a good choice instead of paying high monthly rent. If you are still young professionals who have just started their careers, and there are still many uncertainties about the future, then renting a house may make more sense.
2. Do you have a favorite neighborhood that you want to settle down for a long time?
Before you make a long-term commitment to homeownership, renting to try out different neighborhoods is a great way to learn about your surroundings. However, if you already have a neighborhood you really like, you might as well buy a home of your own sooner.
3. Do you want to accumulate wealth?
Compared to rent gone forever, buying a home in New York is a long-term investment, a relatively safe investment in terms of future appreciation potential, tax deductions and mortgage relief.
#Q Is there a best or cheapest time to buy a property?
Typically, New York City’s real estate inventory peaks between April and June, then bubbles up again in October. The price cuts are also larger in the spring and fall, especially after the Memorial Day and Labor Day weekends. But COVID has changed everyone’s home buying habits, and now is a great time to buy a home in New York.
The best time to buy in New York City is when there is uncertainty in the market. For example, in an election year, or during a global pandemic like now. When sellers are anxious about market conditions, buyers have more leverage and leverage to negotiate prices with sellers/opens.
#Q What is the average down payment on a home in New York City?
The standard down payment is still 20%, which is 80% of the mortgage. Many co-ops have stricter requirements (like allowing only 75% of loans). Some newly developed condos will allow up to 90% financing, which is also more attractive to first-time buyers. It is worth noting that during the epidemic, many co-ops also reduced the loanable ratio (from 80% to 70%).
#Q Is it necessary to issue a pre-approval letter before viewing?
While COVID has made markups rare in New York City’s real estate market, there are still many New York City condos receiving multiple offers at the same time. This is one of the reasons why a pre-approval letter is a must, whether you are a first-time home buyer. over other unapproved buyers edge, allowing you to make an offer as soon as you see an appealing listing. Plus, a pre-approval letter can give you a better idea of the maximum you can afford to buy a home.
#Q Do I before buying a house down payment?
The answer is that best to prepare in advance. We know that domestic transfers to the United States will be subject to control and have a certain annual capital limit. If there are customers who need to transfer a large amount of money from China, we will recommend that you make at least a down payment before or at the beginning of the inspection. All to your US account and leave the money in your bank account untouched. It is best to have the money in your bank account for two months when you start your loan application, so that the bank doesn’t dig into your source of funds and treat your funds as gift money, which can also expedite you simplifies the loan application process and saves unnecessary hassles.
#Q Do I need a real estate agent to buy a house in New York?
Hiring a reliable agent when buying a home in New York can make the entire buying process much less stressful. Why? Because the intermediary is more familiar with the whole house buying process than you will walk you through the whole house buying process step by step, allowing you to avoid some pitfalls. In addition, agents often know past internal transaction prices for new properties and can help you negotiate similar prices. We can also recommend mortgage brokers and real estate attorneys for you. The most important thing is that you don’t need to pay any intermediary fees, all the intermediary fees are borne by the seller, which is equivalent to the seller paying a buyer’s agent to protect your rights and interests.
#Q What is the whole process of buying a house in New York?
The buying process in New York is much the same as elsewhere from the beginning of the loan pre-approval letter to the selection of the house and then to negotiate the price of the house3 weeks to 3 months from entering the contract to the official delivery of the3 months. The detailed entire process and time distribution are as follows:
Loan pre-approval letter (1-3 days):
At the beginning of considering buying a house, you first need to know how much your loan ability is, so as to choose a house that suits your budget. Regardless of whether you are in the United States or not, as long as you have a good income and credit history can get loans through regular banks. If you have neither income credit nor fixed assets that can be used as security, it is recommended to consult a small lender.
Preliminary understanding of housing and housing information (1-3 days):
for you according to your needs recommend some suitable housing of buying a home in New York basics.
Home inspections (as short as a few days, as long as several months):
properties for you according to your favorite areas and specific requirements find suitable.
Under the Offer (as short as one day, as long as several weeks):
If you see the desired house, our Acre NY Realty real estate agent will help you fill in the letter of intent to buy a house bid contract(under Offer) Acre NY Realty real estate agent will provide you with the price according to the area , Future development, real estate sales, etc., we will give you the most suitable price and strive for the best rights and interests. You can place multiple offers at the same time, and you can negotiate multiple times for the same offer.
Home inspection (1-3 hours):
This step of home inspection occurs partly before signing the contract, and partly after signing the contract. Usually new buildings do not need to be inspected by an additional inspector, because the handover of the building needs to pass the New York State requirements.
Signing contract (1-2 weeks):
After the buyer and seller reach a consensus on the price, they will negotiate the terms of the contract under their respective lawyers’ representatives. The buyer’s lawyer will review the contract sent by the seller’s lawyer and make changes, deletions or additions according to the buyer’s circumstances. After signing the contract, the buyer generally pays 10% of the total house price as a deposit. The money is usually sent to the seller’s lawyer and placed in escrow account.
Loan (45-60 days):
contract is signed, please contact your loan broker immediately, let the bank loan handler lock the current interest rate for you, and start your loan application.
● Title Search (1-2 weeks):
At the same time as the previous step, the buyer’s lawyer will hire a title company in the buyer’s name to conduct an investigation and issue a title report. Mainly investigate the historical transaction status of the house, loan status, tax payment status, house owner information, and whether there are any unresolved legal disputes and so on. Buyers generally purchase title insurance to protect their rights.
● Closing After more than 1-3 hours:
Procedures are clear, the lawyers of both parties will coordinate with all parties to confirm the closing time. Closing procedures on the closing date will usually be in the seller’s lawyer’s office, or in the case of a loan, it may be the location designated by the bank’s lawyer. Once all documents are signed and the check is handed in, the buyer becomes the new owner.
So that’s all for today’s New York First Time Home Buyer’s Guide! If you can gain something for those who buy a house in New York, you can pay attention to the Acre design media platform! We will often push real estate consultation, selling and selling houses, renting and living in New York dry goods, and also hold various welfare activities from time to time. Welcome everyone to participate!