Everything You Need to Know About the Buyer Broker Agreement in New York City

Navigating New York City's real estate market can be a daunting task for potential homebuyers. The landscape has recently undergone significant changes, making it more crucial than ever to understand the dynamics of buyer representation. Central to this is the Buyer Broker Agreement (BBA), a tool designed to protect and advocate for buyers throughout the purchasing process.

1. Recent Changes Reshaping Buyer Representation in NYC

The real estate industry has seen pivotal shifts aimed at enhancing transparency and fairness:

• Mandatory Written Agreements: As of August 17, 2024, homebuyers in New York State are required to sign a Buyer Broker Agreement before viewing properties, whether in person or virtually.

• Commission Structure Overhaul: Traditionally, sellers covered the buyer's agent's commission. Recent changes have decoupled this arrangement, allowing buyers and agents to negotiate compensation directly. This shift promotes clarity and ensures that agents are fully committed to their clients' best interests.

2. What is a Buyer Broker Agreement and Why Does It Matter?

A Buyer Broker Agreement is a legally binding contract that formalizes the relationship between a homebuyer and their real estate agent. It outlines the duties and responsibilities of both parties, ensuring mutual understanding and commitment.

Key Aspects of a BBA:

• Exclusive Representation: The agent is dedicated solely to the buyer's interests, providing unbiased advice and advocacy.

• Defined Responsibilities: Clearly delineates what services the agent will provide, from property searches to negotiation and closing assistance.

• Compensation Details: Specifies how the agent will be compensated, whether through a commission split, flat fee, or other arrangements.

• Duration and Termination: Sets the time frame of the agreement and conditions under which either party can terminate the relationship.

3. The Importance of Having a Buyer’s Agent in NYC’s Real Estate Market

New York City's real estate market is renowned for its complexity and competitiveness. Having a dedicated buyer's agent offers numerous advantages:

• Expert Market Insight: Agents possess in-depth knowledge of neighborhood trends, property values, and emerging opportunities.

• Skilled Negotiation: An experienced agent can effectively negotiate price and terms, ensuring favorable outcomes for the buyer.

• Access to Exclusive Listings: Agents often have access to properties not publicly listed, providing buyers with a broader selection.

• Streamlined Process: From scheduling viewings to managing paperwork, an agent handles the logistical aspects, making the buying journey smoother.

4. Key Components of a Buyer Broker Agreement

Understanding the elements of a BBA is essential:

• Duration: Specifies the length of time the agreement is in effect.

• Agent Responsibilities: Details the services the agent will provide, such as property searches, market analysis, and negotiation.

• Buyer Obligations: Outlines the buyer's commitments, including financial pre-qualification and exclusivity to the agent.

• Compensation: Clarifies how the agent will be paid, whether by the buyer, seller, or a combination.

• Termination Clause: Defines conditions under which the agreement can be ended by either party.

5. How to Choose the Right Buyer’s Agent

Selecting the right agent is pivotal to a successful homebuying experience:

• Experience: Look for agents with a proven track record in NYC's real estate market.

• Reputation: Seek testimonials or reviews from previous clients to gauge satisfaction levels.

• Communication: Ensure the agent communicates clearly and is responsive to inquiries.

• Compatibility: A good rapport can make the process more enjoyable and efficient.

6. Common Misconceptions About Buyer Broker Agreements

It's essential to dispel prevalent myths:

• "Signing a BBA Limits My Options": In reality, it secures dedicated representation, ensuring the agent is fully committed to your interests.

• "I Can Negotiate Just as Well Without an Agent": Professional agents have honed negotiation skills and market knowledge that can lead to better deals.

• "BBAs Only Benefit the Agent": These agreements provide clarity and protection for both parties, outlining expectations and responsibilities.

Conclusion

The evolving landscape of New York City's real estate market underscores the importance of understanding and utilizing Buyer Broker Agreements. These agreements not only formalize the relationship between buyers and agents but also ensure that buyers receive dedicated, professional representation. By partnering with a qualified buyer's agent, homebuyers can navigate the complexities of the market with confidence, securing the best possible outcomes in their property pursuits.

Luxury Real Estate Negotiation Tactics for Buyers and Sellers

In luxury real estate, negotiation tactics are the linchpin of successful transactions. Whether you're a buyer looking to acquire your dream property or a seller aiming to maximize your returns, understanding the intricacies of luxury real estate negotiation tactics is paramount. This is especially important if you are buying or selling in big, competitive cities such as New York or Miami. That is where we come in, a team of real estate experts with proven strategies that empower both buyers and sellers to navigate the complexities of the luxury real estate market effectively and maximize the value of their transaction.

Understanding the Luxury Market

Before we delve into the specific tactics, it's crucial to comprehend the unique dynamics of the luxury real estate market. Unlike the conventional real estate sector, luxury properties come with their own set of characteristics, clientele, and expectations. This understanding serves as the foundation for effective negotiation in this exclusive market.

Pricing Your Luxury Property

One of the foundational elements of luxury real estate negotiation tactics is determining the right price for your property. For sellers, this means finding the sweet spot that maximizes profit without deterring potential buyers. We approach pricing with a distinct strategy coupled with our extensive New York City neighborhood knowledge, understanding that each luxury property is unique.

Market Research & Pricing

Extensive research is key to understanding the current market trends and comparable sales in your area. We have access to an extensive database of transaction metrics powered by Compass, inclusive of real-time data. Armed with this knowledge, we can help inform an enticing price for your property to come to market. When conducting market research, looking beyond the obvious statistics is essential. Explore the recent sales data and the history of the area's property market.

Highlight Unique Features

Luxury properties often boast distinctive features and amenities. Emphasizing these aspects can justify a higher price and make your property more appealing to discerning buyers. We work with you to understand the intricacies of your property so we know what to highlight and where there may be hidden value. . Whether it's a state-of-the-art home automation system, breathtaking views, or a meticulously landscaped garden, we craft a story around the unique features of your home to captivate the imagination of potential buyers. It helps them envision themselves living luxuriously on your property, making them more willing to pay a premium for those exclusive features.

Building Strong Buyer-Seller Relationships

 Building positive relationships between buyers and sellers can significantly influence the negotiation process. Trust and goodwill can pave the way for more favorable outcomes on both sides of the deal.

Luxury real estate negotiation tactics include buyer-seller relationships

Effective Communication

Transparent and open communication is the cornerstone of any successful negotiation. We understand your needs and concerns and are prepared advocate for them during the negotiation process.

Professionalism

Maintaining professionalism throughout the negotiation process is non-negotiable. Treating all parties involved with respect and courtesy, irrespective of the situation, is a sign of professionalism that can go a long way in facilitating successful negotiations.

Flexibility

Negotiation often involves give and take. Our team is able to find mutually beneficial solutions that demonstrates flexibility and gets the deal across the finish line.

Negotiation Techniques for Buyers

Buyers entering luxury real estate negotiations typically have specific objectives in mind. These tactics can help buyers secure their desired properties at the most favorable prices.

Pre-Approval

Obtaining a mortgage pre-approval signals your seriousness as a buyer and positions you as a more attractive candidate in the seller's eyes. Financially secure buyers are often viewed more favorably in negotiations. A pre-approval letter from a reputable lender can expedite the closing process, giving you an edge in competitive situations. Sellers may be more willing to engage with buyers who have already secured financing, as it reduces the uncertainty surrounding the sale.

Timing is Key

Patience and strategic timing can be your allies. Bidding when the seller is motivated, such as during a slow market or when there's urgency on their part, can enhance your chances of securing a better deal. Understanding the local real estate seasonality can work to your advantage. For instance, sellers may be more flexible in areas with distinct seasons in the off-season, leading to potential cost savings. Analyzing the market's current conditions and aligning your offers accordingly can yield substantial negotiation benefits.

Leverage Information

We have access to extensive information as industry insiders which helps you in your home buying journey. Gathering insights into the seller's motivations and the property's history can give you valuable leverage during negotiations. Understanding why the seller is selling, whether due to a job relocation, downsizing, or other personal reasons, can help you tailor your offers to meet their needs. Additionally, uncovering any previous price reductions or time on the market can give you a clearer picture of the property's value and the seller's willingness to negotiate.

Negotiation Techniques for Sellers

For sellers, the primary goal of luxury real estate negotiation tactics is to maximize profit while ensuring a smooth transaction. Employing these tactics can help sellers achieve their objectives.

Staging and Presentation

Investing in professional staging goes beyond just aesthetics; it's about creating an emotional connection with potential buyers. A meticulously staged home commands a higher price and bolsters your negotiation position by making your property stand out in a competitive market. Every carefully chosen piece of furniture and well-placed decor item tells a story that can resonate with buyers, helping them envision themselves living in the space. A well-presented home can even expedite the sale process, leaving a lasting impression that buyers carry to the negotiation table.

A professional stager can do wonders for your sale

 Know Your Bottom Line

Determining your minimum acceptable price provides a clear anchor, preventing you from making impulsive decisions in the heat of negotiations that might jeopardize your profitability. Knowing your bottom line isn't just about setting a financial boundary; it's about preserving your financial interests while remaining realistic about market dynamics. Based on careful consideration of your investment, expenses, and desired returns, this figure can serve as a guiding principle, keeping you focused on your financial objectives throughout the negotiation process.

Negotiate Beyond Price

In luxury real estate negotiations, transcending the realm of price is a strategic move that can set your property apart. While price negotiation is significant, it's not the sole variable at play. By considering other factors, such as closing dates, contingencies, or the inclusion of high-end furniture and amenities in the deal, you can craft a more appealing package for potential buyers. Offering flexibility in these areas demonstrates your willingness to accommodate their unique needs and preferences, making your property more attractive.

Embarking on a Seamless Luxury Relocation

After successfully negotiating the sale or purchase of a luxury home, the next exhilarating chapter is the physical transition. Imagine moving from the vibrant shores of Miami to the bustling heart of New York City, a journey brimming with excitement and opportunities. To embark on this remarkable journey, it's wise to reach NYC with a reliable moving team by your side. Hiring interstate movers who specialize in luxury relocations can be a game-changer for the smooth and luxurious transportation of your most valuable possessions.

Conclusion

Mastering luxury real estate negotiation tactics is essential for both buyers and sellers navigating the high-end property market, and our team has a proven history of delivery results for Buyers and Sellers in all types of markets.

Unexpected Costs to Prepare for When Buying a Home in NYC

Whether you are just beginning your home search in NYC, or you have conducted multiple real estate transactions in the Big Apple, it is important to be aware of or reminded of what costs to expect when buying a home in New York City that may have been glossed over when determining your budget.

Down Payments in NYC On the Rise

The initial investment or down payment is often the largest cost for homebuyers. How much of a down payment you'll need to make is determined by the property's value and the loan's terms. The standard down payment required by banks is typically 20%, however, this number is a guideline today as many lenders offer various mortgage products that have lower (or higher) down payment requirements. Because interest rates have climbed throughout most of 2022, some buyers are opting to put a larger down payment on their purchase than they might have when rates were 2-3% in order to reduce their monthly mortgage cost.

All over the country, the typical down payment is much below 10%. You may buy a home in New York City with as little as 0% down (with a VA loan) or as much as 50% down (for the most competitive co-ops).

Ensure to work with both your Real Estate Advisor and Lender as you work to set your budget, factoring in the type of building at which you are looking as well as current interest rates.

 Charges at the Start of a Loan

Most of the NYC buyers chose a mortgage as a way to finance their desired property. Mortgage rates have been fluctuating in recent years because of the Pandemic followed by high inflation. Mortgage loan origination fees typically range from 1% to 2% of the loan amount, with the higher number covering the higher costs associated with in-house processing and underwriting. If your financial standing is solid, you may be able to bargain (or shop about). If the seller wants to attract buyers in a competitive market, they could offer to cover the origination fee.

Tax on mortgage recordings

Mortgage recording taxes are assessed according to the loan amount, not the purchase price. 1.8% for loans under half a million dollars and 1.925% for loans above it apply to condominiums and one- to three-family residences, respectively. Since cooperatives do not qualify as "real property," they are excluded from this regulation.

Calculating taxes can be a daunting project, and you can easily get lost in the numbers. via

Reserves as unexpected costs to prepare for when buying a home in NYC

Liquidity needs after closure are another name for reserves. Cash, cryptocurrency, equities, and bonds are all examples of liquid assets. To convince the board of a New York City co-op that you won't have any trouble making your mortgage or maintenance payments after closing, you should have two years' worth of living expenses in liquid assets.

You can fund an escrow account with your savings as well. Non-mortgage costs, including:

• real estate tax

• common charges/monthly maintenance

• insurance premium
  

  The mortgage servicer may add these costs to the monthly mortgage payment. All of these charges will be included in your one monthly mortgage payment. Since just one payment is required, the procedure is simplified. The lender will separate the charges and pay them as appropriate. This way, you will know in advance what to prepare for when buying a home in NYC.

Paying duties on transfers

The seller is typically responsible for paying the New York City Real Property Transfer Tax. However, the transfer tax is the buyer's obligation when newly constructed condominiums or sponsor units are sold for the first time. If the purchase price is more than $500,000, you may expect to pay a tax of 1.425%, but if it's less, you can expect to pay 1%.

Moving expenses

Most people leave thinking about moving costs at the very last minute. So, moving expenses can come rather unexpectedly to them. Even more so because if you don't plan and end up moving on short notice, you'll have less choice in terms of moving companies and more bills to pay. If you're moving long distance to New York, make sure to look for affordable help, meaning, start searching for reliable movers as soon as possible.

Renovation Costs Can Add up Quickly

Depending on how well the actual property goes with your end vision, you'll need to adjust and invest in some renovations. Of course, you expect the major ones, but it's important to put on paper how much money you will put into them. Also, minor things like pet-proofing your apartment can come to mind at the very last minute, and you might end up costing you more than expected.

 Legal costs

When purchasing a home in New York City, you must hire a real estate attorney. The purchasing procedure in New York City is more complicated than in other markets, making the assistance of an attorney essential. A real estate lawyer's fees are often structured differently from those of an hourly rate law firm. You may expect to spend between $1,500 and $4,000. The most you should ever pay is $5,000. Avoid anybody who offers to act on your behalf for a few hundred dollars.

A good lawyer can help you with all the unexpected costs to prepare for when buying a home in NYC.

Warranty on title

Title insurance shields you against any financial obligations the previous owner may have left on actual property, such as a condo or townhouse. You must set aside a few thousand dollars to guarantee a clear title. In other words, less than 1% of the buying price). On a $1,000,000 property, this may cost upwards of $4,000. But your peace of mind is worth much more than that.

Final thoughts

As you see, there are a lot of unexpected costs to prepare for when buying a home in NYC. You need to consider all of these to avoid any unpleasant surprises. You can always call a reliable real estate agent and ask for help when in doubt.

6 Ways to Prepare for a Competitive Home-Buying Season in NYC

In general, the home buying market in New York City can be highly competitive. This is due to the high demand and low supply of properties. And when it comes to luxury real estate, things are no different. Moreover, high-end homes are unique, so they are highly sought after, just like any rare item. It's also important to note that, according to the experts, 2022 will see a rise in both real estate prices and investments. So, here are six ways to prepare for a competitive home-buying season in NYC.

Check your finances

As we all know, buying a home is never cheap. It is particularly so when you're looking for luxury real estate in New York City. Therefore, before you start visiting open houses, you must determine your budget limit.

• Analyze your finances carefully to see what you can afford and how much you’re willing to invest. Take into consideration your savings, income, and expenses.

• It would be best if you also took into account potential additional costs. For example, you might be keen on old architecture, but you have to consider the costs of renovation.

• If you're not ready to invest so much money at once, you can consider mortgages. And in this case, it’s essential to get a pre-approval. This way, you’ll know exactly how much money you can get.

• It's also advisable to look at some of the prices on the luxury real estate market. This way, you’ll know what to expect.

To prepare for a competitive home-buying season in NYC, you first must determine your budget limit.

Prepare for a competitive home-buying season in NYC by hiring the best Agent to Represent You

If you're not a professional realtor, you'll need help tackling the competitive home-buying market in NYC. Real estate professionals can offer you advice and help you find your dream home. Due to their experience and access, an agent can filter the market for your preferences and set up showings for you.

Moreover, it’s good to know that luxury properties are not always publicly put up for sale. And you only hear about some of them through word of mouth. Therefore, having a well-connected team of real estate professionals is essential. So, choose wisely if you don’t want to miss out on your dream home.

While researching professionals, it's also good to look at moving companies. Buying a home might take some time, but it's good to be ready. The professionals at Roadway Moving advise that if you leave it for the last moment, you won’t be able to find the best services and offers. So, do some market research for this as well.

Put together a team of real estate professionals to help in this process.

Determine what you want

Once you've determined your budget and found the right team of professionals, you have to figure out what you want. And don't just say a mansion or a penthouse. You have to be specific. Otherwise, not even the best team of realtors will be able to find the right home for you.

What’s important here is to understand what luxury real estate means for you. Is it the size of the house or the location? The high-quality materials that were used to build it? Or is it the specific amenities? Your definition of a high-end property can even combine all of these aspects. But in any case, you have to put it all down on paper and sleep on it. Don't make rash decisions. After all, this is a significant investment, so it has to be a good fit.

Choose the right location

Before you start your house hunt, it’s good to narrow down the location. Each of the five boroughs of NYC indeed has its unique features. Nevertheless, you have to find the perfect place for you. To do this, you should first explore on your own. Visit each borough to get an idea about the landscape, the community, the social life, the schools, etc. Afterward, consult with your team of real estate professionals. Their experience and inside knowledge can help you make an informed decision.

To prepare for a competitive home-buying season in NYC, you should narrow down the location.

Learn to be patient

Buying a home is a considerable investment, particularly if you're buying luxury real estate. Therefore, you should avoid making any rash decisions. Take your time to analyze your options. If you don’t find the right fit as soon as expected, don’t despair. These things take time. And don't get discouraged if someone else beats you to it. It's essential to be sure before placing an offer.

However, it’s also good not to be too picky and wait too long. Yes, the home you’re buying should satisfy all your needs, but there’s no such thing as a perfect house. So, you should be willing to make some small compromises. Otherwise, you might never find what you’re looking for.

 Learn to negotiate

Just because you're buying luxury real estate doesn't mean you shouldn't get a fair price. Therefore, don't skip the negotiation once you find a home you like. This is where your Real Estate Broker will be a huge asset to you as they are a negotiating expert and know the market prices well. They can advise you on what to submit for the strongest offer to win the property. It's also good to know how much competition you have. If the property is highly sought after, you might not have any other option than to place a higher offer.

Final thoughts

Because of the high demand and low supply, the housing market in New York City can be very competitive. Besides, finding the right home is never easy. So, what can you do to prepare for a competitive home-buying season in NYC? Determine your budget, seek professional help, identify what you want, and narrow down the location. Being specific is key. It's also essential to take your time and not make rash decisions. And in the end, make sure you get a fair price.

Why You Do Not Want to be the Buyer Walking into an Open House Without a Broker

It comes as no newsflash that the housing market has been incredibly strong, particularly as the Pandemic turned a corner and pent up demand began to be released. Buyers have been lured to the housing market by low interest rates, strong equity market returns, and often times, a desire for a new or larger space thanks to new requirements for what home means from a work and personal perspective.

As activity picked up, so, too, has competition. Buyers are having to submit very competitive, informed offers if they want to win their dream property.  Because of the increase activity and competition, Pandemic pricing has come to an end in Manhattan as prices reached record highs last year. In fact, 2022 has been the busiest start to any year since 2006 for the Manhattan Luxury Market.

With stiff competition in the market, one of the questions that is most top of mind as a Buyer is – how do I remain competitive and get my offer accepted?

Working with a Buyer’s Broker is key to setting yourself up for success as a Buyer in any market, however, it is becoming evermore crucial to work with a Buyer’s Agent in the competitive market environment we are currently experiencing. In today’s market, you do not want to be the Buyer walking into an Open House without a Broker

Why You Need to Work with a Buyer’s Agent in a Competitive Market

In the era of easy access to information, there has been an uptick in individuals that attempt to take on the home buying process solo, without working with an experienced agent. We have always preached Agent not algorithm, however, the competitive market is bringing to light just how important that mindset is.

A real estate agent provides immense personal value that an algorithm cannot

One group of Buyers in particular is losing out on landing their dream properties, Millennials. This younger generation that is typically technologically savvy feels they have access to sufficient information to manage the buying process themselves. Additionally, this group typically tends to be financing their purchase as opposed to being all cash Buyers.

Buyers that attempt to take on the process themselves are quickly realizing there is much more to getting your offer accepted than simply searching Zillow or Streeteasy in your desired price range and attending an open house.

A Buyer’s Agent helps You Get Your Offer Accepted:

• Relationships: Your Broker will bring years of experience to the transaction, and through that experience is deep industry relationships. In real estate, relationships are key, and something an algorithm cannot provide. In a competitive market, your Broker can help get your offer accepted over the competition by leveraging relationships they may have with the listing agent. This can be critical when trying to beat all-cash offers which have become more common.

• Access: Many make the mistake of thinking that their self-service searches on Streeteasy and Zillow provide the full picture of inventory that is available. This is not the case as not all listings are on the market. Your Broker has access to off-market inventory and listings that are not consumer searchable.

• Negotiating Expertise: Your Broker understands the current market and knows what it takes to get your offer accepted and get the deal done. Their negotiating experience helps you prepare and put forward a strong offer from the start, so you can remain competitive if the property is experience Multiples.

A Buyer’s Agent with take a consultative approach to understanding your unique needs in finding a home

Remember: Working with a Buyer’s Broker does not cost you any money! There is only upside. The Commission is paid for by the Seller, so not out of pocket commission expense is paid for by the Buyer to have representation. Of course, once you decide you embark on the home buying journey, it is important to ensure you are working with the right agent.

Condo vs. Co-Op: A Guide for First-Time Homebuyers

Buying a home is one of the most exciting adventures on which you will go. However, it can also be very stressful and frustrating, as finding the right property can take a lot of time and energy. In New York, we have different property types, and understanding the difference between them is important in making your decision. The market is primarily dominated by two types: Condos and Co-Ops.

If you are still unsure what is the right choice for you, we're here to help. Below, we have prepared the pros and cons of both property types. Understanding their differences and what ownership of each entails will make it easier for you to make the right decision.

Condo vs. Co-Op: the main differences

Co-ops and condos have many similarities, so it can be very difficult to notice any differences at first sight. Of course, as with many things, the devils are in the details.

A cooperative, or a co-op for short, is run by a non-profit corporation. The residents buy proprietary leases from this corporation. In a Co-Op your ownership is not that of real property but shares in the corporation. The proprietary leases are shares in the property. By buying proprietary leases, the residents gain certain rights such as access to communal areas of the building as well as to their individual units.

The main difference between Condominiums and Co-Ops is in the structure of the ownership. In a Condo, residents actually own real property and hold the deed to their unit. Additionally, the have an interest in common areas of the building such as hallways and amenity spaces. When you're buying a condo, you are going through the same process as if you were buying a house. The best part is that condominium buildings are everywhere, which is not the case with co-ops. For example, if Manhattan is your dream location, it will be very easy to find a perfect condo – most new construction projects are Condos.

Differences Between Condos and Co-Ops

As said, the main difference between these two types of properties is ownership. However, there are other things that make them different, understanding the full implications of the differences will help you decide which property type is best for your scenario.

●      Price - Condos are usually more expensive, but they give you bigger flexibility as they are much easier to sell or rent. However, have in mind that the down payments for Co-Ops are usually higher.

●      Fees - In co-ops, all monthly expenses are rolled into one bill known as the “Monthly Maintenance”. Also, the utilities are charged as per the percentage of share a resident owns. For example, if they own 3% of the property, they'll pay 3% of the electricity or water bill.

●      Taxes - When it comes to condos, as they're owned individually, the property taxes are charged in the same way as you would pay for a single-family home. As co-ops are considered a single property, property taxes tend to be lower as they are shared between the residents. In a Condo, you will typically face two monthly charges: the real estate taxes as well as monthly Common Charges.

●      Board Approval: Both property types have boards and your purchase will be subject to board approval, however, Co-Ops are notorious for having very strict boards and they do not have to disclose why they approve or disapprove a potential resident.

What to have in mind before making your decision?

Now that you know the main differences, here are a couple of more details to consider before making a final decision between condo vs. co-op. 

Consider your budget

Every home buying process starts with budget questions. Therefore, make sure to assess how much you can spend by consulting with your Mortgage Broker and Real Estate Agent in order to set your home search up for success. Before you choose a lender, make sure to check with at least three to ensure you are receiving the most competitive rate.

By thoroughly analyzing your budget, you'll have a clear picture of how much you can spend and what kind of property you can purchase.

When setting your budget, make sure to take other factors besides your mortgage into consideration. Keep in mind that co-ops are less in demand and therefore cheaper. However, owning a condo comes with low maintenance costs. You need to weigh both options and figure out what works best for you in the long term.

Also, be mindful of the size of the property you can get for your money. Perhaps the home you used to rent was big, and now you have to downsize. Therefore, you might not have enough room for all your belongings. An easy and inexpensive solution is to rent a storage unit. However, make sure to do your research and notice warning signs before making your choice. For example, if you see any water damage in the unit, that should be an immediate red flag. As you want your belongings to be kept safely, you need to choose the most reliable storage company you can find.

Consider how much responsibility you are willing to accept

The number of responsibilities you'll get with a property might help you resolve the condo vs. co-op dilemma. When you live in a co-op, it almost feels like being a part of a club or society. Every big decision such as a renovation or accepting new tenants has to be made jointly by all residents. Afterward, the elected board will act on any decision residents make.

If you decide to live in a condo, you can choose if you want to decide about these issues on your own or let the condo board make the calls. You may wish to be excluded from these decisions and be responsible only for your own property. It's your decision how much you want to be engaged.

Living in a co-op means that you'll have to participate in every decision regarding your building.

Therefore, make sure to do your research and find out what kind of expenses and obligations you are getting with your first home. Nowadays, all information can be easily found online. You can even buy a property remotely if you wish! Your real estate agent will be able to advise on the monthly common charges or maintenance costs for a given unit.

However, if you are a first-time home buyer, we definitely recommend hiring an experienced real estate agent to help you.

Tips for Buying a House Remotely

Many industries have efficiently adapted to remotely conducting business, and real estate is one of them! Buying a house remotely can be very convenient as it can save valuable time. Buying a home virtually has become more common than you may think. No matter where you may be right now or what you’re looking for in a house, there’s a procedure you can follow to conduct the transaction virtually. Video conferencing, virtual tours, and walkthroughs along with wire transfers and e-signatures made the process of buying a house from afar simpler and easier than ever. If you want to use that advantage, here are a few tips on how to buy a house remotely.

Find an experienced local agent

When you’re buying a house remotely, an experienced real estate agent is your best asset. An agent who knows and understands the local market and the current situation with property values should be your guide for:

• Home browsing

• Virtual showings

• Home inspections

• Virtual closing 

You can find a good agent through a referral from a trusted person, such as a family member, friend, or colleague.

Did you know? We are your experts on the ground in New York City, we can connect you with the best agents Nationwide thanks to our extensive network of Compass Agents. No matter where you are looking to purchase your next property, let us guide you in the right direction.

Determine what you want

Find a local agent with good referrals and experience in remote sales.

It’s crucial to know what you want and what you do not want when purchasing a home. So, be clear when you make a wish list and discuss it with your real estate agent. Define your must-haves and nice-to-haves, and you’ll significantly narrow down the choice of properties. Clarify your preferences around:

• Location

• Home size

• Property type

• Home condition

• Amenities, such as smart home technology features, energy-efficient appliances, etc.

Also, make sure to mention what your dealbreakers are. Be very direct when explaining what you’re looking for in a home, so your agent can understand your priorities and preferences and find only homes worth pursuing and those that match your criteria.

Understand the market

Buying a house remotely doesn’t mean you don’t need to be competitive. The main thing you need to check with your real estate agent is whether the market you’re considering buying a house in is a buyer’s market or a seller’s market. There is an extensive inventory of available homes and fewer buyers looking at them in a buyer’s market. If that’s the case, you will have more flexibility and more time to learn about a property before deciding if you want to put in a bid. On the other hand, there are seller’s markets, where there is more competition, and the inventory of homes is much smaller. That means that buyers need to act fast if they’re really interested in sealing the deal.

When you're buying a house remotely you need to understand the local market and current real estate trends.

Tour homes virtually

Your agent should schedule a virtual showing for the properties that you like. Use the video call as an opportunity to see the house up close, pay attention to details and ask any important questions that you might have. Even though touring a property over a screen isn’t the same as being there, it’s still very valuable. It can even be a make-or-break factor. That’s why you need to ensure that you’re not working with the wrong real estate agent, but a reliable one whose opinion you’ll trust. It’s also essential to establish clear and easy communication with them. They will help you decide whether a particular property is a good fit or not.

Make an offer

Once you find a house that speaks to you, you can move on to paperwork. Luckily, all steps of making, adjusting, and accepting an offer can be done remotely. We handle all the aspects of submitting your offering, helping you negotiate the best deal possible knowing

Have a home inspection

A home inspection is always a good idea, especially when buying remotely. A qualified home inspector will check the specifics of a property and find out if there are any significant issues. Your real estate agent can attend the inspection with you on a video call. The inspector and agent are there to work on your behalf, so you don’t have to deal with any unwelcome surprises after closing the purchase.

Appraise and close easily

You and your agent don’t need to be present for the appraisal. When it comes to the closing, digital signatures are as valid as physical ones. You can sign all closing documents virtually, and they will all be legitimate. Closings are done online in many cases, so you being far away won’t make any difference.

E-signatures have made the home buying process much easier.

Relocate to your new home stress-free

When you’ve gone through all previous steps, it’s finally time to organize a relocation to your new home. It would help if you decluttered your former home before you even start packing. Don’t bring any broken, damaged, or rarely used items into your new home to avoid creating a mess right away. To pack your belongings quickly and easily, you can contact Capital City Bins NYC. That’s where you’ll find quality moving bins as well as other moving supplies that will help you pack in no time. Then you need to organize a transfer of your belongings and your trip to the new home.

Organize your new space like a pro

Once you and your items safely arrive at the new house, it’s time for unpacking, decorating, and making your new place look and feel like home. That process requires some time but, in the end, it will all be worth it.

Store your items wisely

Everybody’s goal is to live in a highly functional, organized, tidy, and cozy home. To reach that ideal, it’s crucial to use every inch of space. If you’re creative, there are many ways to create hidden storage or multifunctional storage areas. It’s always a good idea to use shelves, storage bins, sofa storage, spaces under the bed, etc. If there’s no clutter lying around, your home will look tidy from the very start, and that will positively affect your mood.

Final thoughts

When you know what to expect and what steps to take, buying a house remotely isn’t complicated at all, especially when you have a reliable real estate agent by your side.

Get your remote home search started by partnering with us!

Home Features New Yorkers Will Pay Extra For

Sellers are often hesitant when it comes to upgrading a home before the sale. This is understandable considering that they won’t be living there. Besides, remodeling and staging a home can be expensive, so it is important to ensure any investment is put towards features/finishes that will likely reap a return. A home upgrade done wisely can help you sell your NYC home faster and for a much better price. Namely, there are certain home features New Yorkers will pay extra for. Hence, sellers with a tight remodeling budget should focus primarily on those features.

Must-have home features New Yorkers will pay extra for

Energy Efficient Features

It’s not a secret that New York is a pricey city. Energy efficiency is one of the home features New Yorkers will pay extra for precisely because it saves a ton of money in the long run.  Naturally, home buyers who want to limit their utility bills are drawn to energy-efficient properties. But that’s not the only type of buyers interested in this home feature. Due to the increased environmental concerns, energy efficiency has become a priority unrelated to cost-trimming. Energy efficient heating and air conditioning, eco-friendly appliances, low emission windows and extra insulation are all among the home features New Yorkers pay extra for.

Technologically Advanced Features

Today’s home buyers, especially the younger generations, are rapidly adapting smart home technology and are willing to spend extra cash on it. Smart home features are no longer found only in NYC’s most expensive homes. They have become more common and affordable to the average buyer. Tech-savvy buyers look for things like high-tech, programmable thermostats they can control via different mobile devices, key-less locks they can access via Bluetooth, and total programmable entertainment systems.

Pet-friendly Home Features New Yorkers Will Pay Extra For

The number of proud pet owners in NYC is increasing. Many home buyers are willing to pay extra for a pet-friendly home. Although keeping pets like cats or dogs is not allowed everywhere, buildings with pet amenities can be found across the city, including some of Manhattan’s most prestigious neighborhoods. Things like integrated crates, gates and built-in bowls are more sought-after than ever before. Amenities such as dog washing salons, spas, dog training studios and indoor playrooms where dogs can mingle even if it’s rainy outside are some of the features dog lovers look for these days.

Storage Space

Space in NYC comes at a premium. Square footage is expensive; space is a luxury many New Yorkers dream of having. Therefore, they are willing to pay extra for a home that provides enough storage space for their belongings. Even if it’s a small home we’re talking about, there are ways to add storage space in every room and make it more functional. Internal storage in the form of cupboards and shelves is something buyers appreciate, as well as closets that have been upgraded by the likes of California Closets to maximize usage of space. A suburban home with under-house storage, a large shed or garage is also likely to attract buyers who are willing to pay extra.

Walk-in Closet

Speaking of storage space, a walk-in closet in a master bedroom is becoming one of the features home buyers want most. While singles want to keep all of their clothes, shoes and accessories in one place, couples often want more closet space because they will be sharing it. A walk-in closet also makes it easier to organize your stuff and provides a cleaner look. So, if the home you are selling does not have this feature, consider converting a smaller room into a custom walk-in closet.

Walk-in Pantry

A walk-in pantry is a must-have kitchen feature, especially for families with children. A lot of kitchens lack space for storing things like non-perishable food items and kitchenware. While reach-in closet pantries provide limited space, a walk-in pantry offers a larger, better organized storage area just a few steps away from the food preparation area, making it a perfect extension for your kitchen.

Hardwood Flooring

In comparison to carpets, hardwood is both more durable and easier to maintain. Pure hardwood flooring can last a lifetime when maintained properly. Engineered wood flooring is a cheaper option you might want to consider when working with a tighter budget, whether you are preparing to sell or buy a home in NYC, especially if the money you'll need for your NYC move does not leave you much choice.

Multiple Entertainment Areas

Many buyers like to have more than one room where they can spend time with their family and friends. If you are a buyer who wants multiple living/entertainment areas, you’ll need to pay extra for this feature. Afterwards, you can get your piano to Manhattan with ease, add some comfy sofas, and create an elegant area ideal for entertaining guests.

Outdoor Space

It is not only the home’s interior NY buyers are interested in. Living in a concrete jungle sure makes you appreciate greenery and outdoor space. Thus, a backyard, rooftop deck, terrace, or even a tiny balcony can increase the price of a home significantly. And if the balcony comes with a beautiful view - even better.

7 Mistakes First-time Homebuyers Make

Buying your first home can be one of the most stressful decisions as it is most likely the largest purchase of your life. As a first-time buyer, you feel pressured to have everything go exactly as planned, ultimately ending up in your dream palace in the sky. Throughout the purchase process, we see first-time buyers make mistakes that affect his or her ability to land the property of his or her dreams.

Below is a list of 7 mistakes frequently made by first-time buyers. Partner yourself with an educated broker, and you will soon be on the way to calling your dream house home!

1. NOT HIRING A BROKER:

First-time buyers, especially those that are unfamiliar with transacting in real estate, have a large misconception that if they hire a broker, they are going to have to pay. This is not the case. When it comes to buying, unlike renting, the seller’s agent splits the commission with the buyer’s (your) agent. With that being said, you only stand to gain with partnering with a reputable broker when conducting your home search.

2. LACK OF PRE-APPROVAL:

If you are planning to finance the purchase of your home, it is imperative that you get a pre-approval letter from your mortgage company. This will help you in two ways: 1) you know that you will even get approved and 2) what amount the bank is willing to lend to you. For the latter, some are pleasantly surprised that they are approved for more than they originally thought, while sometimes, the approval may come in lower than expected. This is important, however, so you know at what price point you can shop. Many first-time buyers feel that this is not urgent and say “I will get it later!” The sooner you have your pre-approval in hand, the sooner you will be a competitive buyer in the marketplace. Mortgage pre-approvals are generally valid for 3 months, so even if you don’t find an apartment immediately, you are better prepared for the search by getting the letter from the start.

3. BROKER ACCESS TO LISTING:

This relates to mistake #1 in that, often, first-time buyers believe that they have to go direct (without a broker) to a listing that they are interested in because it is that listing agent’s listing. All brokers have access to all listings. So no matter what broker you partner with as a buyer, they can take you to any listing throughout the city. You will not get a better deal by going alone!

4. INDECISIVENESS:

Buying your first home will probably be one of the most stressful purchases of your life. First-time buyers can suffer from indecisiveness, especially in the Manhattan market which offers so many options. If you find what feels to be the perfect home, bid on it and focus on that apartment. Too often, first-time buyers cannot commit to a property and miss out on a deal that meets their criteria. 

5. EDUCATION:

Hiring a reputable broker is 90% of the equation while the other 10% is on you as the buyer. Be sure to do your homework regarding all the components that go into purchasing a home. How much will insurance be? Utilities? The more you understand what expenses are involved and what the state of the market is, you will know what you can realistically afford and focus your search accordingly. 

6. BUYING DIRECT WITH THE SELLER’S AGENT:

This, too, related to mistake #1- notice a theme? Too often, first-time buyers buy direct (without a buyer’s broker), which can hurt them in the end. It is important to understand that while the seller’s agent is thrilled with a double commission, throughout the entire purchase process they are legally obligated to the seller, not you. the buyer. This means that the seller’s interests are prioritized before yours. Make sure you are represented by a broker that has your best interests at heart so you can feel confident that you received the best deal.

7. UNDERESTIMATE THE COMPLEXITY OF THE PROCESS:

Often when dealing with something we have never done, we have expectations or assumptions of how to approach it and handle it. We see many first-time buyers that underestimate the complexity of the real estate transaction process. The steps of going from offer submission to the closing table is like navigating a minefield. There is a myriad of things that can popup between contract signing and closing that may complicate the deal or threaten it, often things you would not anticipate as a non real estate professional. Your broker will seamlessly guide you throughout the process. 

7 Mistakes First-Time Homebuyers Make

7 Mistakes First-Time Buyers Make

We know how stressful it can be buying a home, let alone your first home. As a first-time buyer, you feel pressured to have everything go exactly as planned, ultimately ending up in your dream palace in the sky. Throughout the purchase process, we see first-time buyers make mistakes that affect his or her ability to land the property of his or her dreams.

Below is a list of 7 mistakes frequently made by first-time buyers. Partner yourself with an educated broker, and you will soon be on the way to calling your dream house home!

1. Not Hiring a Broker:

First-time buyers, especially those that are unfamiliar with transacting in real estate, have a large misconception that if they hire a broker, they are going to have to pay. This is not the case. When it comes to buying, unlike renting, the seller’s agent splits the commission with the buyer’s (your) agent. With that being said, you only stand to gain with partnering with a reputable broker when conducting your home search.

2. Lack of Pre-Approval:

If you are planning to finance the purchase of your home, it is imperative that you get a pre-approval letter from your mortgage company. This will help you in two ways: 1) you know that you will even get approved and 2) what amount the bank is willing to lend to you. For the latter, some are pleasantly surprised that they are approved for more than they originally thought, while sometimes, the approval may come in lower than expected. This is important, however, so you know at what price point you can shop. Many first-time buyers feel that this is not urgent and say “I will get it later!” The sooner you have your pre-approval in hand, the sooner you will be a competitive buyer in the marketplace. Mortgage pre-approvals are generally valid for 3 months, so even if you don’t find an apartment immediately, you are better prepared for the search by getting the letter from the start.

3. Broker Access to Listing:

This relates to mistake #1 in that, often, first-time buyers believe that they have to go direct (without a broker) to a listing that they are interested in because it is that listing agent’s listing. All brokers have access to all listings. So no matter what broker you partner with as a buyer, they can take you to any listing throughout the city. You will not get a better deal by going alone!

4. Indecisiveness:

Buying your first home will probably be one of the most stressful purchases of your life. First-time buyers can suffer from indecisiveness, especially in the Manhattan market which offers so many options. If you find what feels to be the perfect home, bid on it and focus on that apartment. Too often, first-time buyers cannot commit to a property and miss out on a deal that meets their criteria. 

5. Education:

Hiring a reputable broker is 90% of the equation while the other 10% is on you as the buyer. Be sure to do your homework regarding all the components that go into purchasing a home. How much will insurance be? Utilities? The more you understand what expenses are involved and what the state of the market is, you will know what you can realistically afford and focus your search accordingly. 

6. Buying Direct with the Seller’s Agent:

This, too, related to mistake #1- notice a theme? Too often, first-time buyers buy direct (without a buyer’s broker), which can hurt them in the end. It is important to understand that while the seller’s agent is thrilled with a double commission, throughout the entire purchase process they are legally obligated to the seller, not you. the buyer. This means that the seller’s interests are prioritized before yours. Make sure you are represented by a broker that has your best interests at heart so you can feel confident that you received the best deal.

7. Underestimate the Complexity of the Process:

Often when dealing with something we have never done, we have expectations or assumptions of how to approach it and handle it. We see many first-time buyers that underestimate the complexity of the real estate transaction process. The steps of going from offer submission to the closing table is like navigating a minefield. There is a myriad of things that can popup between contract signing and closing that may complicate the deal or threaten it, often things you would not anticipate as a non real estate professional. Your broker will seamlessly guide you throughout the process.