Buying a home in New York is one of the best investment decisions you can make because it is a physical asset that you can always use if you need to. However, some of you might be looking for your first home and are eager to purchase a property with great value that will also be perfect to live in.
Irrespective of your goal, buying a home in New York is a step in the right direction. The city is one of the top cities in the USA and a center of economic activity. You will have access to all the amenities you will need and have countless options for food and entertainment.
There is no doubt that it is one of the best places for property ownership. If you are considering buying a property in the city, you will need some guidance to ensure you get the best value for money.
Tips for Buying a Home in New York
As realtors, the Robert DeFalco Realty team has extensive experience in real estate, and we want to give you a few tips to help you make the right choice.
1. You Can Choose from Several Property Types
When buying a home in New York, you can select from several types of properties, each of which has its respective set of features and appeal. Following is a list of the property types you can choose between:
Co-ops are multifamily properties with several living units that you can buy from. You will purchase shares in the Co-op association, with all the shareholders collectively owning the building and its units.
The building is governed by the co-op board, which decides whether you can rent out a unit or make renovations to it etc. The board also has a say in who can and cannot buy shares, but restrictions are less common, and you can easily find several options in the city.
Unlike the co-op, buying a condo gives you complete ownership of the apartment and some of the common areas in the building for residents. While a board governs some aspects of the building, they do not have the authority to decide how you use your condo, and you can rent, sell, or renovate it whenever you want to.
Townhouses are common in Manhattan and a popular choice of property for several homeowners. Each townhouse has 3-4 stories and is mostly sandwiched between several other buildings (unless it is on the corner.
Some townhouses have separate apartments on each floor, while others operate as single homes. Hence, you can choose which type you want to buy. There are no boards for townhouses, and each person is responsible for any maintenance their property may need.
Fully Detached Home
Unlike townhouses, detached homes are standalone units and are wider and more spacious compared to townhouses. Since no buildings are flanking a detached house, you will likely get some space on the front and sides to yourself.
Fully detached houses are also single-unit properties; hence, you will be the sole owner of the property.
2. Don’t Confuse Co-op Apartments for Condos
Co-ops may be great for long-term investment, but the lack of control is not ideal. Some sellers may still try to sell off their co-op by presenting it as a condo, so be careful when buying to ensure you do not fall for the trick.
3. Visit the Neighborhoods
New York has several amazing neighborhoods for homeowners like Staten Island, Brooklyn, Bronx, Queens, etc. Aside from online research, you should visit the neighborhoods when considering properties in the area.
Seeing the place in person will give you a better idea of which one you prefer the best and help you select the property best aligned with your needs.
4. Consider the Prices for Different Properties
There are several layers to real estate pricing in New York. Firstly, pricing differs from property to property. In the list mentioned above, co-ops are the least expensive, followed by condos. Townhouse prices vary extensively, with some in Manhattan valued at $1 million! Fully detached homes are the most expensive on the list.
Secondly, the neighborhood affects the prices extensively. A busy area like Manhattan is, for example, more expensive than the Bronx and the property values reflect the difference. Hence, a condo in Manhattan can easily be more expensive than a townhouse in the Bronx.
5. Get a Pre-Approved Letter From a Mortgage Lender
Getting a pre-approved letter from your mortgage lender will not only legitimize your case it will also give you an idea about the amount of money you can spend. Hence, get the letter when you are ready to start shortlisting properties.
6. Enlist the Help of a Broker
Enlisting a real estate broker to help with your search will be beneficial for you. For example, Robert DeFalco Realty has been dealing in real estate for several years now, and we have extensive insights about properties in all New York neighborhoods.
We also have established networks, increasing process efficiency and making it easier to get necessary approvals. You can access our Manhattan or Brooklyn websites or check our main business website to get an idea about the scope of our services.
7. You Will Need an Attorney
All New York real estate transactions require an attorney to oversee the process; hence, you must hire one before finalizing any agreements. We know several reliable attorneys you can hire and can work with you to choose perfect for you.
8. You Will Be Paying Closing Costs
Finally, New York real estate purchases include a closing cost, which is a percentage of the total value of the property. They are part of your mortgage agreement, so pay close attention to the percentage your lender is charging, so you can include it in your budgeting.
Buying a home in New York will be an incredible experience, but make sure you take our tips into account when you start the screening process. You can get in touch with our team by calling at 718-987-7900 or the numbers of one of our other offices in New York.
We will be happy to answer any queries you may have and support your home purchase process.