How much do you want to spend? How much can you afford? Consult a Mortgage Broker to help you determine this, and obtain a Pre-qualification Financing letter. This letter, issued by your Mortgage Broker will not only indicate how much the bank will probably be willing to loan you, but also will help later when bidding to show that you are a qualified, serious buyer.This might be a good time to select a real estate lawyer who will represent you in your purchase: be sure to use a lawyer who is extremely knowledgeable of Real Estate law in New York

How much do you want to spend? How much can you afford? Consult a Mortgage Broker to help you determine this, and obtain a Pre-qualification Financing letter. This letter, issued by your Mortgage Broker will not only indicate how much the bank will probably be willing to loan you, but also will help later when bidding to show that you are a qualified, serious buyer.This might be a good time to select a real estate lawyer who will represent you in your purchase: be sure to use a lawyer who is extremely knowledgeable of Real Estate law in New York

In New York, agent fees are paid by seller.  Despite this, the fiduciary responsibility of the buyer's agent is to the buyer while the fiduciary responsibility of the seller's agent is to the seller.   This will be clearly stated in the New York real estate disclosure form as required by law.  If a buyer is not represented by an agent, then the seller’s agent, whose loyalty is to the seller, keeps the entire pre-negotiated commission.  Hence, it is in the best interest of the buyer to have agent representation to help identify the right property, negotiate the best price and manage the entire purchase process

 

All agents, through the real estate trade agreement of the Real Estate Board of New York, have access to the entire inventory of properties for sale.  For example, if there are 10,000 properties for sale in Manhattan, every agent will have access to the 10,000 properties.   The role of a buyer's agent is hence to identify the right property and not to merely provide access to view.  As such, the brokerage community strongly discourages the buyer from using multiple agents as this would create confusion.

 

We recommend that a potential client interview several agents and then decide on one.  As we will be 100% focused on helping our client identify the right property, we in turn expect client loyalty.  This expectation is consistent amongst all good brokers. 

 

Outlined below is the buying process we go through with clients.

 

  • Evaluate objective - purpose, long term plan, attributes

  • Identify and arrange properties to view

  • Perform analysis and due diligence

  • Present upsides/downsides of each property

  • Negotiate

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Recommend financing source:  

(i) U.S. bank

(ii) International / overseas bank

(iii) Both above finance overseas buyers

  • Recommend attorney:  Closing, form company

  • Recommend accountant:  Tax structure, reporting

  • Recommend property manager for building buyers.  

 

If financing is used, closing costs (bank, attorney, accountant fees, mortgage tax, title insurance) are approximately  5-6% of loan amount.  Buyers need to show required down payment, usually 20 to 50 percent of property price depending on whether the property would be a primary residence, vacation home or investment property.  In addition, banks may require proof of liquidity cushion, eg 10 - 18 months of monthly payments in liquid assets. 

 

If the buyer pays in cash (no financing), then closing costs would be about 1-2 percent of property price.

 

It typically takes 3 months from property identification to closing.  At closing, all parties - buyer, seller, bank, attorneys, brokers, would come together at a table.  A lot of paperwork would be signed and funds would be provided to the seller in exchange for the buyer getting legal title to the property.  The deal would be completed at the table and usually, no future follow-ups would be necessary.

 

 

Buying
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