The NYC real estate market is fast paced, competitive, and requires extensive qualifications. There's usually a shock factor when New Yorkers that haven't moved in a long time find out whats expected. For people moving here for the first time, they think they're going to have their identity stolen because "back home" they could get any apartment just by having the money. So here are some points to clear up some misconceptions and get you on the right track.
Real estate agents are not tour guides. You have to know the neighborhood you want to live in and then we can show you apartments. We can’t show you apartments in each neighborhood you heard might be cool to live in. There are literally thousands of apartments in our database. NYC is also a competitive market and you have to move quickly if you see a great apartment with the right price. It would make no sense for us to show it to you if we’re going to take days to see apartments in other neighborhoods. By the time you realize the first one was the one you wanted- it will be gone.
Fix your credit now. It will save you money. If you don’t have good credit, most landlords will deny you. If you’re lucky, they’ll let you rent, but will ask for many months extra of security. If you’re seeking a mortgage to buy, the interest rate will be lower and better if you have good credit.
Stop asking about rent to buy. That doesn’t exist in NYC or any strong market. Someone will always lose. Real estate is like the stock market. The pattern is in waves. Either the seller will realize they can get much more or the buyer will realize they can pay much less, than the original agreement. In 15 years, the only time we’ve seen this mentioned in NYC was after the stock market crash and banks were not lending money. It was briefly used as an incentive to get people moving, but we never saw one actually go to a closing.
Can you purchase a home with no money down? Our biggest volume of sales in NYC are in co-ops and condos. These buildings have a required 10-20 percent down for you to be considered. If purchasing a house, you could get an FHA loan with 5 percent down. However, they have income restrictions and a list of other guidelines you’d have to fit into. And even if you found 2 unicorns- a home and a lender that would sell to you with zero down- we don’t advise it. It’s a disaster waiting to happen. A house comes with so many responsibilities. You’d be financially responsible for every utility. (When you’re renting or in a co-op you don’t realize how expensive water and oil are because you’re not getting that bill every month) At any moment, something within the home can break, you could have a leak, flood, cracked sidewalk, crack in the roof or exterior. So when you tell us you don’t have money to put down, you also don’t have money to take care of an issue that could arise. We would advise you take advantage of some of the programs the city has to get into affordable housing. Put yourself on a waiting list. Or make a temporary sacrifice to save money- move back in with your parents, shack up with friends, give up your shopping habits, cut back, and start saving for that down payment!
If you are a home owner with rental units- invest in upgrades. Spend money on appealing finishes, such as, stone countertops, stainless steel appliances, refinishing floors. It will rent for a higher price and move off the market faster. We can work with you to choose styles that are neutral and long lasting. And we have a discount program that you can use to purchase appliances and electronics.
Plan ahead of time for your move date- on rentals it’s a fairly quick process. We’ve been able to get people approved in an hour when they’ve had all their paperwork, money ready, and the landlord was available to review. Most common, it’s usually a couple of days. However, there have been a few instances where it’s taken up to a couple of weeks either because the renter was not prepared and had to gather all of the required documents or it was a holiday and the people in management who approve where unavailable. In sales, it’s at least one month, but can take up to 3 (without any problems). The latter is usually when purchasing a co-op and we need to schedule a board interview and wait for the response. If we submitted an application and just missed their interview day, we will have to wait until their next scheduled meeting, prolonging the process.
If you are thinking of moving, know you need to move, or having a tenant moving- reach out to us so we can advise you on what you should be doing for your specific situation. We offer complimentary consultations at our office or your home. We’ll give you advice based on your needs and explain what we can do to assist you or point you in the right direction and put you in touch with other professionals you should consult with. You can send an email to luxeurbanlife@nycasagroup.com If you would like to purchase a home and don’t know how much of a mortgage you could get, you could contact Ruben from Chase bank for a pre-approval by emailing segundo.guallpa@chasebank.com or calling (347) 414-3112