5 Tips for a First Time Home Buyer in NYC

Are you thinking of buying a home in NYC? We’ll share 5 tips for a first-time home buyer in NYC in this video.

I’m Nick at Hauseit, based here in NYC. Visit https://hauseit.com to save money if you’re buying or selling a co-op, condo or townhouse here in NYC. So let’s get started!

Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/

1) Familiarize Yourself With Closing Costs

Buyer closing costs in NYC are the highest in the country. They range anywhere from 1.5% to 6% of the purchase price.

Closing costs are the lowest for co-ops, and they’re the highest for new development condos. Understand that closing costs cannot typically be financed, so it’s important to have a handle on what actual your out-of-pocket costs will be when it comes to determining your budget.

Please be sure to check out Hauseit’s free and interactive buyer closing cost calculator which is available here: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/

This calculator gives you an itemized breakdown of all buyer closing costs so you can better understand the big picture when it comes to the costs of buying a home in NYC.

There’s also an easy hack for lowering your buyer closing costs in NYC. We’ll tell you how momentarily.

2) Work With an Experienced Buyer’s Agent

NYC real estate is complex and also competitive. Having an experienced buyer’s agent can make all the difference between a good and bad experience, and securing or losing your dream property. There are so many tips, tricks, best practices and pitfalls to avoid when it comes to buying in New York City. And if you’ve never bought before, or only done it once or twice, the experience of a buyer’s agent is invaluable.

Fortunately, it doesn’t cost you anything as buyer to work with a buyer’s agent. This is because sellers in NYC customarily pay all real estate commissions, including the portion paid to the buyer’s agent. However, if you’re smart, you can actually get paid a portion of this commission through a buyer agent commission rebate. This simple hack can save you thousands of dollars and significantly reduce your closing costs. Unfortunately, the vast majority of buyers have no idea that buyer agent commission rebates exist! But if you’re watching this video, you’re no longer one of those people.

At Hauseit, we offer broker commission rebates through our Buyer Closing Credit Program. To learn more and sign up, visit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/

You can also send us an email to team@hauseit.com or give us at a call at (888) 494-8258. We’ve saved New Yorkers millions on closing costs since we were founded in 2014, and we’d love to help you too.

Don’t be one of those people who leaves money on the table by not receiving a buyer agent commission rebate from your’ buyer’s agent.

3) Understand Co-op Financial Requirements

Co-ops in NYC have specific buyer financial requirements. These include a maximum debt-to-income ratio, minimum post-closing liquidity and a minimum percentage down. These requirements are almost always stricter than what a lender might ask for. In the case of the debt-to-income ratio, most lenders will underwrite up to 43%, but a typical co-op in NYC might not allow anything above 25% or 30%.

NYC Co-op Financial Requirements Overview: https://www.hauseit.com/nyc-co-op-financial-requirements/

4) Know Your Budget

We recommend having a conversation with a lender as a first step. A mortgage professional can give you a realistic sense of your budget, factoring in your income, assets as well as other considerations like existing debt. While you’ll eventually need a formal pre-approval letter before submitting offers, there’s no harm in having a more informal with a lender now just to get oriented.

5) Consider the Buy vs. Rent Dilemma

Even though we’re in the business of buying and selling real estate, let us be the first to tell you that buying isn’t always better than renting. If you’ll need a larger apartment in just a few years, or if your job might take you away from NYC, it might make more sense to rent. Or if you have a better alternative investment opportunity for your savings instead of using for a down payment, renting might be the way to go.

That being said, there are so many reasons why buying is better than renting. Price appreciation, inexpensive leverage through a mortgage, having a true place to call home, an inflation hedge, the ability to add value through renovations. The list goes on.

Buying vs. Renting in NYC: https://www.hauseit.com/rent-vs-buy-nyc/

Just make sure you think about all of these factors before pulling the trigger on a home purchase in NYC.

Save 6% When Selling in NYC: https://www.hauseit.com/agent-assisted-fsbo/
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Hauseit LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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