If you’re searching for luxury real estate in New York, you may feel as if you’re getting ready to step into a minefield — and to some extent, you are. The NYC real estate market is notoriously tricky, and the luxury home segment takes the process to another level entirely. In order to navigate this minefield with as little bloodletting as possible, you should work with experienced and knowledgeable professionals. Before you jump into the deep end, read our guide to luxury real estate in New York.
Image Source: Flickr/Gareth Stevens
Seek Out A-List Talent
When you’re in the market for a luxury car, you wouldn’t seek advice from your friend Joe who read an article about Beamers last year; there’s too much of your money at stake. Instead, you’d go to a reputable auto dealer who had plenty of knowledge about buying luxury vehicles. Likewise, if you’re in the market for a luxury home in NYC, you shouldn’t solicit advice from someone who’s never set foot outside of Pittsburgh or who doesn’t have experience with high-net-worth buyers. You’d go to someone with plenty of luxury real estate experience who knows the Big Apple housing market inside and out. The NYC luxury real estate market is unlike any other, with plenty of potential pitfalls and obstacles that could put an otherwise respectable offer out of the running. An experienced local specialist can help you navigate the terrain and find the gems while avoiding (or at least limiting) the pitfalls.
Image Source: Flickr/David McSpadden
Mine Your Connections’ Connections.
That old adage “It’s who you know” fits the NYC real estate market perfectly. NYC real estate brokers and agents are connected to tons of people, including everyone from co-op board presidents to building superintendents. This means that they’re often the first to find out about a adorable classic six that’s about to hit the market in the impossible-to-get-into building on the Upper West Side, or they’re the first to know when someone’s simply thinking about moving. If you were working on your own, you’d probably hear about these places once they were long gone. With a top agent or broker by your side, you can rest assured that you’re getting as much insider knowledge as possible.
Image Source: Flickr/Henry Hemming
Use Your Financial Specialist’s In-Depth Know-How
Many people buying into the luxury real estate segment are able to make all-cash offers for property, including overseas investors, hedge fund managers, and start-up founders who’ve sold big. Will you be able to compete for a top property if you’re unable to do the same? How can you make yourself look attractive to sellers? You may be able to comfortably afford paying a $4 million mortgage, but would you be able to put down 50 percent cash if it was required? What are the tax implications of your purchase? Real estate brokers, agents, and financial advisors can help answer these questions and more. They’ll help you figure out how to present yourself to co-op boards and banks in the best way possible.
Work With a Bank You Have a Long-Term Relationship With.
If you’re buying luxury real estate in NYC, you most likely have a well-established relationship with a bank or other financial institution. Working with that bank to finance/fund your home purchase could make the process a whole lot easier than engaging in money talk with a bank with which you have no history. Working with a bank you’ve been with for a while looks good to co-op boards as well.
Main Image Source: Flickr/John Weiss
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