How to Buy a Home in the Financial District NYC
Living in NYC is like a dream come true. After all, the city enhances your living with towering skyscrapers, spectacular sights, and sprawling neighborhoods. Although most people prefer to live in the Upper West Side, Chinatown, or Midtown, the Financial District is emerging as a popular place among home buyers or renters for its luxury apartments.
Fondly known as FiDi, this region has made NYC a vibrating center of business and commerce. After all, this area is the home of the NY Stock Exchange, Wall Street, and the Federal Reserve Bank.
But FiDi is more than this. It is the place where you can live by the water while taking visual delight in stunning architecture and incredible buildings. The neighborhood is also meant for you if you are fond of food and shopping.
However, you have to consider some factors when looking for a home in the Financial District. Here’s how…
Ponder Over the Types of Houses
What kind of houses are you looking to buy in the Financial District?
Owning a condo means you get full ownership of the apartment while having access to some part of the common areas like the gym. Although the condo property is controlled by the board, you are free to rent or sell your home.
Co-op is another popular option and is great for people looking for a long-term investment. This property is shared among all the shareholders. However, there is a co-op board to decide if you can rent out your unit or renovate your apartment.
A townhouse is also a popular option. It is a three or four-story building that is linked with other buildings on a block. It can be a single-family home or have multiple apartments. They are equipped with backyards and rooftops.
Lofts are usually the residential units made out of former industrial or manufacturing buildings. They are known for their high ceilings, wide-open spaces, minimal interior walls, and large windows.
Know the Best Time to Buy
If you are not in a hurry and can wait, then you can start hunting for a house in the spring or the fall. Spring gives you more options as new properties enter the market. In the fall, you have a great opportunity to get discounts as there is often a surplus of apartments sitting on the market. Based on this, the best time to buy is between April and June, and in September and October.
How Much of Down Payment Will do You Require?
Many sellers require you to pay a certain amount of down payment. With lower down payments, you are more likely to have higher interest rates. The lower down payment will also make it difficult for you to find a lender for a home loan.
The 20 percent of the total amount is a standard down payment, and being able to meet that stipulated percentage will greatly pump up your chances to get a loan and reduce your interest rate.
Hire a Broker
While you can buy a home without a real estate agent or broker, hiring a broker can be useful. A broker will help you get the best possible deal and can help you in negotiating the price.
A real estate lawyer is equally useful, especially in the complicated real estate of NYC. Unlike other cities in the USA, NYC requires home buyers to draw up a contract to finalize a sale, and unless you’re acquainted with the law, it is quite cumbersome to deal with that. Lawyers can also guide you on the potential issues in your new home, including building violations, parking issues, and noise complaints.
Opt for a Home Inspection
A home inspection is important to determine the health of your new home. A home inspector inspects the property for existing and potential structural issues and damages. This way, you can decide if the property is worth living. Or you can ask the seller to fix the things before closing the sale. You can also deduct the cost of potential repair from the payment being given to the seller.
Attend Open Houses
You can find through online real estate sites that provide you a couple of listing photos of each property. However, we recommend you to visit home in person to know the neighborhood and its condition. You can also request a private showing if a property doesn’t host the same. If it’s not easy to make up your mind on choosing the right neighborhood, attend open houses by yourself in each prospective neighborhood and take a walk through the region afterward.
Make Sure to Review Your Contract
Once you are about to close the deal, you should review the purchase contract before signing on the dotted line.
Therefore, call your lawyer to understand the negotiations and conditions of the contract. You as the buyer will sign the copies of the purchase contract and pay 10% of the contract price, commonly termed as contract deposit or good faith deposit. You are also required to send the signed contract and deposit to the seller’s lawyer’s office the same day.
The process will be then carried forward by the seller’s attorney and end once the buyer and seller are bound by the contract.
So these are the tips to buy a home in the Financial District. All you need to know your preferences consolidate your budget for a home, pace up with your real estate agent or broker, and seal the deal. Yeah, the process is cumbersome and time-consuming, but it is important to find your dream home in Financial District. What do you think? Let us know by commenting below!
Author Bio- Jennifer is an editor and author at nyrentownsell a leading real estate company in New York.