Sunday, October 24, 2021

How Much Do Condos Cost In New York

What Is Buying Process For A Foreign Real Estate Buyers Or An International Real Estate Investor And What Is Purchase Time Frame

How Much Are Condo Seller Closing Costs in NYC?

Below is the process for buying a condo: Estimated Time to closing after identifying property: With Financing: 45 ~ 90 days All Cash: 30 ~ 45 days

1. Obtain pre-approval for mortgage from lender. 2. Identify Property. 3. Make offer.
3. Negotiate price. 4. Execute contract. 5. Apply For Mortgage. 5. Obtain Mortgage Commitment Letter. 6. Submit condo board package.
6. Receive condo board approval 7. Closing

1. Obtain pre-approval for mortgage from lender Lender can be a US bank or overseas bank at buyers home country with an international mortgage program. If you are an all cash buyer, you do not need this step. Condominium typically requires 10% down, condop 10~20% down, and coop apartments generally require at least 25% down. Depending on the coop building, down payment requirements vary. Pre-approval gives greater negotiating power.

2. Identify Property Property viewing can be a pleasurable or tiring experience. We have every single apartment currently available for sale in our database updated daily and view them daily and know what suits our clients needs and wants. Our goal is to help our clients to save time and to buy at the best possible price.

3. Make offer and negotiate price Negotiation skills are critical. Experienced negotiators could obtain many favorable financial and non-financial terms for the buyer.

7. Schedule Closing

New Development Deals Remain

There are still New Development bargains to be had, as prices have been reduced significantly for projects introduced 3 years ago. Recently launched projects, however, have been priced to current market, so not a lot of discounts there. While some of the discounts are showing up in lower prices, many of the discounts are concealed in closing cost concessions. These dont show up in the price per square figures. The magnitude of discounts on new development vary widely, as they are dependent on factors such as when the project was launched, sale velocity to-date, the number of remaining units available in a particular line, the equity partners in the capital stack, and most importantly lenders’ minimum release prices .;

To get the best deal in New Development, you need to have an open mind and not get set on something that isn’t going to garner the highest discounts. For instance, developers are neither offering large discounts on apartments with outdoor space nor on lines that are almost sold out.

This chart below shows how new development pricing has regained some of its footing from its lows a few months ago.;

A Video Update From Urbandigs

A lot of clients have been asking what is going on in the NYC market, so I wanted to send you a quick update via a video from Noah at Urbandigs.com. He has done a a great job of distilling what is going on in the Manhattan real estate market.

  • Policy driven reset for the Manhattan Market in 2019
    • Federal TJCA tax law change beginning in 2018 that limited SALT deductions to $10,000 made it more expensive for primary homeowners .
    • Mansion Tax increased as of July 1, 2019 to a sliding scale affected timing of purchases throughout 2019.
  • Pending sales up 7%
  • Bottom of the market happened in Q4 2018
  • “The hit already happened”, so it may be a good time to buy now.

Are you in the market to buy in NYC in 2020?pricing at 2014 / 2015 levels.

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New York Real Estate Market Report For 2020

Let’s take a look at the statewide data of the New York real estate market and the impact of the Covid-19 pandemic. The statewide market data includes single-family properties, townhomes, and condominiums. In May 2020, low inventory and increasing buyer activity kept the prices stable in the New York housing market. The median sold price remained flat at $270,000 in May as compared to last year.

The month’s supply of inventory dropped by 11.5 percent in May, from 6.1 months to 5.4. On the other hand, sellers in New York are still holding back on listing new properties on the market. New listings are still on the decline as compared to last year. According to NYSAR, as COVID-19 restrictions continue to soften, the New York real estate activity is expected to continue to improve in the coming weeks.

Homes are selling below their asking prices as the median price of homes that have been sold out is $432,800. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices. While the Empire State continued to re-open in June with âNew York Forward,â real estate activity slowly began to strengthen, according to the housing report released by the New York State Association of REALTORS®.

Why Are Nyc Condo Closing Costs Higher

How much does it cost to combine apartments in New York ...

Its a double whammy, condos cost more in price terms and they also have higher real estate closing costs! The reason is that when you are purchasing a condo with a mortgage you a required to pay a mortgage recording tax and typically required to purchase title insurance. While if you purchase a co-op with a mortgage, you are not. Technically when you are buying a co-op apartment, you are buying shares in the co-op and have a proprietary lease on the apartment. ;While it may be possible to purchase title insurance for a co-op, most opt not to buy it.

PREVU SMART TIP

Did you know you can save thousands on your closing costs with a commission rebate? Buying with Prevu youll receive a rebate of two-thirds of the commission paid to the buyers broker at closing.

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Closing Costs Nyc: Condo Vs Co

By Chase Marsh onJanuary 01, 2021

Despite having to pay sky high prices for apartments in New York City, some NYC buyers may not even realize that there are additional closings costs that they havent considered. The extra costs can really add up, especially for condos. In this article, you’ll see a comparison of condo vs co-op closing costs NYC buyers pay.

How Do Monthly Condo Fees Affect The Value Of Your Property

The maintenance fees you pay each month have an indirect effect on the value of your condo. For instance, a condo building with higher monthly fees will attract high-end buyers and investors. However, it might take a while to sell off the units in such a building because of high fees that chase away buyers.

This is an important consideration to make if youre buying the property as an investment.

Low maintenance fees arent always good in the long run either, because they lead to special assessments. They also point to poor or mediocre maintenance and planning.

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Getting Approved By A Co

As a co-op buyer, you usually must be approved by a co-op board made up of your future neighbors; That process involves a mountain of paperwork, a personal interview, the possibility of rejection, and the total opening of your financial kimono to folks you will share the elevator with for years to come. Moreover, a co-op board can turn you down for any lawful reason. And because the reason need not be divulged, this means that in practice, unlawful reasons may also prompt a rejection. ;;;

Condo boards also subject buyers to nearly as much financial and personal scrutiny as co-ops do. But condo bylaws dont permit the board to reject you.; Instead of turning you down, a condo boards only option is to exercise its right of first refusal and buy the apartment itself, which almost never happens.; Instead, pretty much the worst that can happen to a condo buyer is that they wither away on the vine while a condo board engages in deliberate stalling tactics.

Sign Up For Our Monthly Manhattan Best Buys Email

Bangkok’s #1 Address – How Much Does It Cost?! (Condo Tour)

Once a month we sent a curated selection of current best buys to our clients. This selection includes small pied-a-terre’s priced from as low as $600k, investment properties with excellent price per sq.ft., just discounted properties that we believe are good opportunities and new developments that have just been or are about to be launched.;

You’d be surprised how effective it can be to just include a warm, smiling photograph of yourself. Or maybe you wouldn’t be so surprised. Maybe you just don’t surprise easily. Or maybe you’re just incredibly wise. Yes. That must be it. Wise;and;warmly smiling. What a winning combination.

Shawn BristowHubSpot, Inc.

You’d be surprised how effective it can be to just include a warm, smiling photograph of yourself. Or maybe you wouldn’t be so surprised. Maybe you just don’t surprise easily. Or maybe you’re just incredibly wise. Yes. That must be it. Wise;and;warmly smiling. What a winning combination.

Shawn BristowHubSpot, Inc.

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$950k In Gramercy Park

This is a high-floor, Junior 4 co-op apartment in Gramercy Park, Manhattan featuring Southern and Eastern exposure with great natural light. The property sold for $935k in 2019 after just 9 days on the market.

Gramercy Park Towers is a full-service luxury building which features a full time doorman, concierge services, state of the art fitness center, a lovely Zen garden with a seasonal fountain, on-site parking garage and bicycle storage.

The building is conveniently located near lots of shopping, restaurants and entertainment with great proximity to Union Square as well as the 4/5/6/L/N/Q/R and W trains.

Will You Be Happier In A Co

Brace yourself for some sweeping generalizations about lifestyle and other considerations in a New York City co-op versus condo.

In addition to the generalizations above, you may want to focus your search on condos if:

  • You have a large or feared breed of dog
  • You are looking for a newer building;
  • You are an investor who wants to rent out your apartment;;
  • You are buying using a trust or an LLC ;
  • You want to use the apartment as a pied a terre;
  • You are buying the apartment for your kids;
  • You have sued a landlord or your last co-op or condo board, or youre generally litigious ;
  • Youre a musician;
  • You have a home-based business that involves noise or lots of visitors like teaching music or practicing psychology;
  • Youre a foreign citizen

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Prices Down But Not In Free Fall

While prices are down, they havent plummeted like some people may have assumed they would. The price per square foot for a condo in Manhattan was 8.8% lower in Q1 2021 over Q1 2020. This on top of lower pricing since the SALT cap was enacted in 2018, which had the effect of lowering prices in NYC on average by 11% according to economist Robert Schiller. Therefore, prices are way off their peak from just a few years ago and are ready to turn around. With a blue administration, the SALT cap, which punishes blue states, has a good chance of disappearing in 2021. This will benefit property prices and temper the exodus to low-tax states.;

How Much Will My Condo Be Worth In 5 Years

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If you are thinking about investing in a new condo you are probably wondering what is the upside and where will prices be in 5 years from now?

How much profit will I make?

It is an important question and one I will answer now but its a bit of a red herring.

So many new investors get caught up playing the game of trying to bust out the crystal ball and predict the future.

The truth is no one knows what is going to happen to property values in the future.

Focusing on appreciation when investing is a gamblers game.

You might win occasionally, but youre bound to get burnt if appreciation is your primary focus.

Its a dangerous game to play.

Ive seen so many investors over the years get clouded by thoughts of huge appreciation, they lose focus of whats really most important: cash flow.

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How Will President Trump Affect Us Real Estate

Never before has America had a New York City property developer and real estate broker sitting in the White House. While many of us may not agree with Trumps behavior and policy positions, one thing for sure is that Trump will be pro-property and pro-real estate.

While some postulated that a Trump presidency would be a black swan event, rather than plunging, both the US dollar and stock market rose today!

If you are wondering how the policies of President Trump affect US Real Estate, here are insights as to how Trump will likely operate once in office.

Will he use real estate to kickstart the economy?

Trump is a property developer and real estate broker. He has used real estate himself as an investment all his life and has said that hes interested in boosting homeownership. Given that his family business is real estate, either through his own company, the Trump Organization, or his son-in-laws, Kushner Properties, we expect Trump to continue his love affair with property.

What will happen to mortgage rates?

Will he lower taxes for real estate investors?

Republicans retained control over the House and Senate. As a result, the republicans have unfettered control over the future of tax policy, meaning there will some big changes that will affect taxes for real estate investors. Trump has proposed to:

  • Lower tax rates, with capital gains tax at a top rate of 20%.
  • Eliminate the estate or death tax
  • Reduce corporate taxes from 35% to 15%

Could it become easier to borrow money?

What Are The Costs Of Buying An Apartment In Nyc

What Are the Costs of Buying an Apartment in NYC? If youre thinking about buying a condo or co-op in NYC, you may be wondering how much money is required to buy an apartment. The tangible costs of buying an apartment in NYC are your buyer closing costs as well as the down payment.

Buyer closing costs are between 1.5% to 5% depending on whether youre buying a condo or a co-op, paying cash or financing, or buying into a new development.

You can estimate your buyer closing costs using Hauseits Buyer Closing Cost Calculator. To calculate how much apartment you can afford, visit Hauseits Home Affordability Calculator.

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Basic Costs For An Nyc Home Renovation

When estimating price per square foot, the scope of work usually includes the following:

  • Basic demolition
  • Heating/cooling systems
  • All visible materials and fixtures in kitchens and baths

This doesnt include appliances. Also bear in mind that the choices you make for visible materialstile, flooring, millwork, paint, lighting fixtures, electronics, and morecan significantly affect the price of your renovation.

At the $100 to $200 psf range:

  • Materials are generally prefabricated or stock items and in finishes that are available at common retail outlets.
  • Cabinets in this price range are typically MDF .
  • Tiling will run under $10psf.
  • Lighting will be standard but solid basics.
  • Solid wood floors may be shorter, narrower planks made of less expensive woods.
  • The work will be careful, clean, and well-installed at this level with higher quality labor and skillsets at the upper end of the range.

At $200 to $300psf range:

  • Some customization on details such as joints, millwork, and hardware
  • Cabinets are custom or semi-custom and can include built-ins.;
  • Countertops in natural stone or high-quality manufactured materials.
  • Solid, wide-planked hardwood flooring
  • Projects at this price point are not usually gut renovations, but rather remodels that focus on the space within the existing walls.

What youll get for $300 per square foot and higher:

1. Design

Depending on your general contractor and your level of involvement in the project, you may also want or need professional design services.

Larger Apartments Back In Vogue

Amateurs & Experts Guess How Much a NYC Condo With a Private Terrace Costs | Architectural Digest

The super-prime market had the best first half on record, fueled by double digit discounts from their original pricing. In addition, there has been a notable increase in larger apartments selling, which has been great for the >$5M market.;

The sales mix which included a significant shift to the sale of larger apartments, skewed price trends, bringing the , While the median sales price rose to $1,130,000, the highest since reaching $1,215,000 in Q2 2019, price trends were skewed because of the mix of sales.

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Condo Construction Cost Per Unit

Like apartments and other types of multi-family dwellings, condos can sometimes be given costs on a per unit or square foot basis. This pricing structure makes it easier to compare the costs of a 10-unit building with a 20 or 100-unit building because square footage varies based on the units sizes and building size. The average cost range for condo building construction is $75,000 to $150,000 per unit. Some lower-end condos cost less to build, and higher-end buildings cost more, but most fall in this range.

Number of Units
$15M – $50M

How Much New York City Apartments Cost

If cost is your primary concern, consider a co-op. The median price is $795,000. Condos go for more, at a median price of around $1.4 million.

What if my budget is tight?

Youre not automatically out of luck if price is a big restriction. Try looking in these nine neighborhoods where the median selling price is less than $700,000.

Neighborhood
$687,500

Other charges you should be prepared for

  • Down payment. Though your down payment goes towards your mortgage, expect to pay at least 20% of the apartments cost.
  • Taxes. As you might expect, Uncle Sam will want his cut. Most notable is the 1% mansion tax if your apartment costs over $1 million.
  • Broker fees. Hiring a real estate agent to show you around will cost you, though there are some ways to avoid paying broker fees.
  • Other closing costs. Bank fees might cost $350 to $750, and the appraisal fee could cost $300 to $1,500. Expect to pay hundreds or thousands more in other fees.
  • Monthly charges for your apartment building. On average, New Yorkers pay $1,500 a month in building maintenance fees.

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