5 Smart Tips on How to Buy Your First NYC Property
Whether you’re part of the growing number of millennials and Gen Yers who are buying their first home or a more mature individual looking to make a serious investment, buying your first property is an important and exhilarating milestone — and doing it in NYC is even better.
New York City is a bustling metro with a vibrant community, which means that something interesting is always going on. On top of that, now is the best time to buy property in the Big Apple, with CNBC reporting that prices are 10 to 20% lower than what they were back in 2015. If you’re considering taking the plunge, look through our tips below before investing in a home you love.
1. Save a lot of money
Whatever figure you have in your mind right now to prepare for an NYC property, it’s probably too low. Despite fluctuations in the housing market, the Big Apple is notorious for its property value, which is what makes it so great for investors and buyers alike.
The general rule of thumb is to save a minimum of 20% of your estimated purchase price, but some property sellers may ask you to put down up to 30%. You’ll be able to determine what your possible purchase price is by getting pre-approved.
2. Get pre-approved
Pre-approval is a crucial process that allows you to get an idea of what you can afford. This will save you and real estate agents valuable time and effort, and usually translates to agents taking you more seriously.
Thankfully, pre-approval isn’t that complicated. According to Yoreevo’s helpful guide for first-time home buyers in NYC, the pre-approval process is quick and can be done in just a day with minimal paperwork. A lender will simply check your income and credit, and inquire about any existing assets that you own. You will usually get a figure after 1 or 2 days, which should signal the start of your search.
3. Have an open mind
While it pays to be critical and particular about the features you want in your home, it’s equally important to be open-minded when looking around. After you’ve set the criteria, cast a wide net across different areas and see which properties match your standards best. Chances are, you won’t find anything that fits your specifications entirely, and that’s okay.
Instead of solely focusing on the details of a property, consider the community around it. Even if the home is far from perfect, you may find that the neighborhood it's in suits your interests, personality, budget, or proximity to your work. After all, you can work out minor kinks in the property, but you can’t change where it is.
4. Get in touch with a buyer’s agent
Since you are making a major purchase, it makes sense to hire a buyer’s broker to guide you and represent you in the process. He or she will be able to help you every step of the way, and will point out anything you might miss.
Having a buyer’s agent is essential for first-time buyers, as it is useful to have an expert by your side. A buyer’s broker prioritizes your interests — unlike a listing broker, who may just be looking to sell as fast as possible.
5. Be patient
It’s not an easy process to chase the American dream of buying a home, and unless you have a ton of cash, NYC is a particularly tough nut to crack.
There will be frustrating moments when you inevitably encounter problems along the way. Someone might buy the property from under your nose that you’ve been looking at for months, even years. It’s important in these moments to remember that buying a home is a major investment, so it’s alright to take your time. Rushing things will only harm you in the long run, and taking things slow can actually be the more advantageous route for you.
Buying a home in NYC when it’s your first time to purchase property is both exciting and intimidating. But with a lot of research, a reliable agent, and a ton of patience, you’ll likely end up with a home you love in one of the greatest cities in the world.
