New York City is recognized worldwide for its culture, sightseeing, and opportunities. For this reason, many people aspire to own a home near the city.
But there’s a handful of information that you need to keep in mind before doing so. We’ve put together a short guide that details what you should know before you buy a home near NYC.
Let’s dive in.
As you might guess, one of the first decisions that you’ll need to make is determining what type of house you would like to purchase. For those who are unaware, you have a handful of options at your disposal.
In general, people tend to choose from the following:
Lofts - These are great for individuals who want a unique living experience, as they are located in formerly industrial buildings.
Townhouses - Although townhouses aren’t notably wide, they are often three or four stories tall and may come with rooftop access.
Detached homes - Those who want a conventional living experience should look into detached homes, which provide plenty of privacy and outdoor space.
Co-ops - As the name suggests, owners of a co-op have partial ownership of the co-op association of the property.
Condos - Similar to co-ops, those who purchase a condo are also able to secure partial ownership of various common areas of the facility.
It’s no secret that the region around New York City is a desirable area to own property. This means the housing market tends to be competitive and property ownership comes at a higher price tag, especially given the recent surge in buyer demand and low federal interest rates. But this hasn’t stopped thousands of buyers from closing deals on new homes.
The types of homes available to you will depend highly on your budget. You should be realistic with yourself about what you can expect to pay. The best way to determine a realistic budget is to speak with a lender and get a mortgage pre-approval.
And while properties in the NYC suburbs might come at a premium, the good news is that property near New York City will always be in demand, so you will likely have plenty of potential buyers if you want to sell your home in the future.
Historically, the best time to purchase property near New York City is during spring or fall. In general, buyers often find that searching for a home during spring is far more competitive, so keep this in mind.
If you are on a particularly tight budget, you can often find better deals during the fall. Inventory leftover from earlier parts of the year is likely still available at a better price.
If possible, it’s best to avoid purchasing a home during the winter. There are far fewer listings, which means that prices could be higher.
Due to the high cost of property around New York City, many people struggle to come up with a sufficient down payment. While putting down 20% is ideal, it’s not required. In fact, the average first time home buyer puts down just seven percent.
There are certain benefits to putting 20% down. Not only will a higher down payment make it easier for you to find a lender, but it will also drastically reduce the amount that you pay in interest. Lower down payments also come with the responsibility of securing private mortgage insurance (PMI). This is put into place to protect the lender in case you stop making payments on the money that you borrowed. More specifically, you will have to pay for this insurance until you have accumulated at least 20% equity in your home. To avoid PMI, it is best to get as close to putting 20% down as possible before moving forward.
For those who don’t want to put down 20%, there are still many options available. Speaking to a lender can help you determine what down payment amount makes most sense for you.
As previously mentioned, the real estate market near New York City is highly competitive. So, you shouldn’t be surprised if you get into a bidding war with another buyer. Although you can’t always combat the situation, being flexible as a buyer can cause a seller to be more interested in working with you.
Although this can seem intimidating to handle, bidding wars are simply part of the process. Working with an agent can help you navigate this part of the process and ensure you are submitting your most competitive offer.
There are many nuances associated with buying a house, and there are plenty of others that are unique to the area around New York City. So, it’s in your best interest while you navigate the real estate market.
The above information can help make the home buying process go far more smoothly. From here, you will know exactly what to consider before you buy a home near NYC.
Want to learn more about what we have to offer? Feel free to reach out to us today and see how we can help.
THE URSINI TEAM AT COMPASS
We're not your typical real estate agents. As former city dwellers, we appreciate the qualities that make city lifestyle so unique, from the convenience of walking to your favorite restaurant or corner store to the vast and diverse cultural and entertainment activities. But we’ve also experienced the challenges and frustrations that are motivating you to seek change. During our transition from the city to the suburbs, we had the same thoughts, concerns and questions, prompting us to create a better way to navigate the suburban home search process for others.
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The Ursini Team is a team of real estate brokers affiliated with Compass. Compass is a licensed real estate broker and abides by equal housing opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.
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