Is buying a house in New York a worthwhile investment? Only the future will tell, but one predictable thing is that all five boroughs of the nation's most populated city will remain expensive. So, your decision depends on your mindset and your financial condition. Here are essential points to know for buying a New York home.
Before starting your quest for a house in New York, working with a real estate agent licensed in the state is advantageous. The experience will be more smooth working with someone who knows how real estate transactions work. You should also hire an attorney who specializes in real estate.
A reputable real estate agent can help you learn various financial options, particularly if you are a first-time homebuyer. The state government provides grants and programs for people who haven't owned a home the last three years through its State of NY Mortgage Agency (SONYMA).
Sellers in the state must give buyers and their agents a Property Condition Disclosure Statement before the official sale. This document serves as notification of property condition issues. So make sure you're aware of all the home's problems before signing a contract of sale. You're not legally bound to anything in New York until you sign this contract.
Another crucial point about buying a home in New York is paying a property tax over double the national median. The state's median home property tax payment is $5,732 per year, whereas the average American homeowner pays $2,471 per year.
Buying a house in New York requires that you've already saved up enough for the down payment and have other assets. The amount of cash you have available will play a significant role in narrowing down your choices.
Unless you're already wealthy enough to pay for the home in cash, you'll need a mortgage loan that requires a credit check. It helps to get preapproved for a mortgage before house-hunting, which guarantees the loan will be available when you decide on a home.
Through your real estate agent, you'll receive home listings that meet your criteria for the type of residence you seek. You'll also look at pictures to gauge the home's condition. Remember that location matters when it comes to home insurance.
When you find the home you want to purchase, you'll make an offer to the seller. The offer should reflect your agent's comparative analysis of the property. This evaluation yields what the agent believes is the home's fair market value.
When you finally agree to the deal and sign the contract, you will likely need to make a down payment, which tends to be 10 percent of the purchase price. It serves as your deposit to secure the home, as it shows your commitment to proceeding with the sale.
The seller then makes the final determination on whether or not to accept your offer. If the offer is accepted, the seller signs the contract, and the down payment is processed. Otherwise, the money is returned to you immediately. After the deal is closed, you must sign a huge stack of other papers. Once your loan is approved, the mortgage broker transfers the loan amount to the seller.