If you're contemplating buying a property in New York for the first time, you may have a daunting road ahead of you. It doesn't take much research to realize that state's market is challenging, to say the least, which makes the idea of buying a home in the minds of many seem not just difficult, but downright impossible.
But before you give up on your dream of being a homeowner in the Empire State, there's some things you can do right now to make this venture feel less intimidating.
Improve Your Credit
Before you even attempt to enter the market, you should aim to fix any problems with your credit. The importance of a good credit score when buying a home cannot be overstated. There are things you can work on doing right now that could give you a quick boost, like cleaning up your credit report, paying off old liens, or increasing your credit limit. With a good credit score, a lender will be willing to give you a sizable loan towards the purchase price of your home.
To obtain a copy of your credit score, you can contact your credit reporting bureau directly, or check with your bank.
Save. Save. Save.
This is probably the most obvious advice I can give, and I'm sure you've heard it before. But what you may not realize is how much money you need to put down to purchase a property in New York. According to Curbed, sellers typically expect a 20% down payment for a listing. To put this in perspective, the average sales price for a home in Queens has increased to $573,500, and $808,000 in Brooklyn. You do the math.
In addition to the down payment, buyers will be required to pay a number of expenses throughout the process, including processing fees, lien search fees, appraisal fees, and other supplementary costs.
Know What Type of Residential Property You Want To Own
When it comes to residential property, buyers usually choose between buying a condo and a co-op. A condo is property that buyers have full ownership of, while co-ops allow buyers to own a share of the property.
The requirements for these two types of property differ. Co-op boards decide who gets to own their buildings, so it may be harder to solidify a sale on one even if you're financially secure. On the other hand, condos are easier to get, but they're usually more expensive. An attorney can help you figure out which option best suits your needs, goals, and circumstances.
Choose the Right Agent
Business is booming for real estate agents as it's one of the fastest growing occupations. But this may be in part because becoming an agent in New York is fairly easy.
The minimum requirements to obtain a real estate license include taking a 75-hour course and passing one exam. This means that someone with two weeks of training may be put in charge of handling millions of dollars in transactions with experienced investors and sellers.
As a first-time buyer, you don't want a first-time agent. Make sure you thoroughly research the backgrounds of the agents you interview before making a choice.
Contact New York Real Estate Attorney Melvin Monachan
There are many factors you should consider before buying a home in New York. A seasoned real estate attorney can help you make sense of this process. Attorney Melvin Monachan has years of experience representing both buyers and sellers in various real estate transactions. Contact The Law Offices of Melvin Monachan, PLLC, by filling out an online contact form or calling (516) 714-5763.