Friday, December 2, 2022

How To Buy A House In New York State

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How to buy a house in upstate NY

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Everyone Is Telling You To Do It

Im not going to spend too much time on this reason, but if you watch HGTV, or any shows about house flippers, if you talk to your neighbors, if you talk to people theyre going to tell you how amazing it is to purchase a piece of property. Theyll tell you that buying a condo is a great thing. That they have stability a great place they love. That may be, but youre likely also not talking to people that purchased properties and lost all their monies doing so.

Youre likely not talking to people that purchased a piece of property and had to put $100,000 into renovations when they thought they were only going to have to pay $30,000 for renovations. Its important to keep a level head when you do this. People will tell you to do these things because theyve had a good experience, or they think that theyve had good experiences because they havent calculated all of the costs that come with it.

You have to make a decision for yourself, talk to your financial planner, talk to your accountant, talk to people who havent had great experiences buying and selling properties, and then make an informed decision. Just because you see people on TV making hundreds of thousands of dollars doesnt mean theyre making hundreds of thousands of dollars, if not millions of dollars, flipping these properties. There are many TV shows about people that have lost all of their money doing this stuff, so keep that in mind.

Sell Your House For Cash In New York

Selling your house in New York doesnt have to be complicated. At Leave The Key Homebuyers, we buy houses in three simple steps and make it easy to get a fair cash offer on your home. You can sell your house in any condition and avoid the hassle and stress that go with listing with a real estate agent. There are no lengthy contracts, repairs, cleaning, agents, or months of uncertainty when working with us. You can even pick the closing date.

You can sell your house, duplex, triplex, quadplex, townhome, or condo to us and walk away from the hassle of owning a property you no longer want or need. When you sell your house to us, you can have cash in as little as a week and avoid the drawn out process of working with a real estate agent. With Leave The Key Homebuyers, you can sell your house fast and on your terms.

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Final Walkthrough And Closing

When it’s time to close, you’ll be able to do a final walkthrough of the property to ensure it’s still in the expected condition. While you might be excited for the buying process to be over, stay focused so you don’t miss anything.

During the walkthrough, be sure to run through the following checklist:

  • Inspect the ceilings, walls, and floors for cracks, chipped or peeling paint, or other imperfections
  • Test every light switch and electrical outlet
  • Run the water to look for leaks and check the pressure and temperature
  • Flush all toilets
  • Make sure you have working keys for all the doors
  • Test any appliances that are included in the sale
  • Check the heating and air conditioning system
  • Open and close all windows while checking that they lock and there are no unexpected drafts
  • Make sure all trash or belongings from the previous owners have been removed

On closing day, be prepared to sign a ton of paperwork. Your agent should explain every document before closing, but still ask any remaining questions you have before signing.

Hiring a Real Estate LawyerIn New York, it’s required for a real estate attorney to be part of every home sale. While your agent can make recommendations, remember you get to make the final decision. Interview lawyers before hiring them to make sure they have the experience you need.

Understand Your Financing Options

Marrano Homes Home Builders in Western New York &  Buffalo, NY

There are some first-time home buyer grants and programs available in New York, and some are even offered to individuals who have purchased a home before. As long as you havent owned a primary residence in the last 3 years, State of NY Mortgage Agency has programs that provide buyers with low interest rates and down payment assistance.

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Find A Great Real Estate Agent In New York

A local real estate agent will be your main ally during the home buying process. Aside from finding and showing you houses, they can also make recommendations for other services like lawyers, lenders, and escrow companies. And once you find a house, it’s your realtor who will make sure you get a great deal.

Take the time to research different agents who are experienced in your desired part of town and price range. Pay attention to realtorsâ:

  • Years of experience
  • Number of transactions in the last year
  • Experience in your price range and chosen neighborhood
  • Overall review score
  • Individual reviews and complaints

Once you have a list of 3-5 potential agents, schedule times to interview them to see if they’d be a good fit. Ask them questions about the neighborhood you’re looking at to see if they have the knowledge and experience to help you make an educated decision.

Also, know that you can go to showings with an agent before signing a buyer’s agency agreement. This is common and lets you go for a “test drive” with a realtor to see how well they meet your needs before committing to working with them.

Complete Inspections That Apply

The immediate step after making an offer and having it accepted is to complete any inspections that the offer was contingent upon. If one of the contingencies was a home inspection, theres a certain number of days youll have to complete the home inspection after acceptance of the offer. When buying a house, there are dozens of reasons why having a home inspection is a good idea, even on new construction!

At this time, if your offer was contingent upon any other inspections, you must complete within the specified amount of days otherwise you potentially could lose out on your perfect house. Other popular inspections to consider when buying a home include a chimney inspection, radon test, pest inspection, and structural inspection.

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How Much Are New York State Property Taxes

From sea to shining sea, youâre going to run into taxes. They are an unavoidable fact of life. However, if you move to the right place you could save big on property taxes. The statewide average of property taxes in New York state sits at around 1.65% of your homeâs value.

For example, if your home is valued at the New York median of around $300,000, you should expect to pay around $5,000 in property tax on a yearly basis. Oddly enough, New York City has the lowest property tax rates in the state at 0.85%. Erie County property taxes are significantly higher at 2.7%

New York offers different exemptions and discounts on property taxes based on different things like veterans status, age, and income. Homeowners who qualify under these laws can even receive a property tax credit. An experienced real estate agent can help you to figure out what to expect when it comes to New York state and property taxes.

Today’s Mortgage Rates In New York

15 Steps for Buying a Home in New York City
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Mortgage Legal Issues In New York

New York has a long history of being a buyer beware state, but some of those concerns have been remedied throughout the years. Currently, sellers must fill out a property condition disclosure statement that contains several pages of questions ranging from whether the property is located in a floodplain to the last date of sewage pumping. The seller only has to disclose what she knows to the best of her knowledge and isnt required to verify statements with an inspection. That due diligence falls on the seller, who is warned at the top of the document that the disclosure is not a substitute for any inspections or tests. Youll still have to research the property using your own means. The disclosure is just one of the pieces of information available to you.

If youre curious how foreclosure works in this state, you might be relieved to know that its favorable for homeowners. New Yorks foreclosure process is judicial, which means the lender has to sue the borrower in order to enforce their rights. This is generally considered more favorable for the homeowner than a non-judicial foreclosure, which means no court involvement and has a quicker timeline from initiation to home auction. With a judicial foreclosure, the lender has to win the lawsuit in order to sell the property at auction. The moment a lawsuit is filed is when the homeowner is considered in foreclosure.

What To Know About Buying A House In New York

Buying a home in New York can look very different depending on where you want to settle down. Buying in and around NYC, for example, will cost a lot more than a remote location in upstate NY.

Regardless of location, firsttime home buyers in New York state have lots of help readily available.

That can range from educational courses and free advice to financial assistance with your down payment and closing costs. Heres how to get started.

In this article

Maximum NY Home Buyer Grant2 $30,000 forgivable loan, available statewide through SONYMA’s DPAL Plus program

Down payment amounts are based on the state’s most recently available average home sale price. Minimum down payment assumes 3% down on a conventional mortgage with a minimum credit score of 620.

If you’re eligible for a VA loan or a USDA loan , you may not need any down payment at all.

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Real Estate Lawyer And Their Role In A New York Home Purchase

It is customary in New York for the sellers attorney to prepare the first draft of the contract of sale. Most sellers attorneys start with a standardized form and then add a rider with additional terms to be negotiated with the buyer. Your attorney likely will also add an additional rider to the contract with terms to be negotiated with the seller.

Once the attorneys have finalized the contract, you and the seller will sign it, and you will send the sellers attorney a downpayment, which you may lose if you walk away from the deal without a reason contemplated by the contract. Typically, in New York State, the downpayment is for 10% of the purchase price, and the sellers attorney will deposit this amount into an escrow account.

After the contract is signed, your attorney will need to do several things to prepare for a closing. First, the attorney will order a title report to see if there are any issues that the seller must resolve before a closing. These may include liens or violations against the property.

Your attorney will work with you to provide information and documents requested by lenders in connection with your mortgage applications. Third, your attorney will calculate the amounts that you will owe at closing to the seller, the sellers lender, and the title company, among others.

Whats The Average Down Payment On A Home In Nyc

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The standard down payment is still 20%, which means 80% financing. Many co-ops have stricter requirements . And some new development condos will allow up to 90% financing, making homeownership more appealing to a first-time home buyer.

However, economic uncertainty during the pandemic has affected things. Over the past year, many co-ops have changed their financing policy, says Steven Goldschmidt, Senior Vice President of Warburg Realty. They are reducing the maximum allowable financing and requiring buyers to put up more equity. For example, some co-ops that allowed up to 80% financing have now reduced the maximum to 70%.

Cohn notes that while many banks today are looking for a buyer to make a 20% down payment, others require more. And some banks will finance as much as 90% of a purchase price up to $3.5 million.

Regardless of what is required, the general rule of thumb is that the more money you can put down, the better. Someone paying all cash or only financing 50% or less will have more leverage in negotiating with a serious seller, says Fabbri. But with rates being so low, most buyers want to finance even if they have the cash to pay for it upfront.

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Talk To A Real Estate Attorney

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    Look At Current Housing Inventory

    When you start house hunting can impact your number of options. For example, in New York, October is when there are historically the most homes on the market. While in January, there are almost 20% fewer homes available.

    If you’re viewing homes in a time of low inventory, you might have to be less picky before choosing a home to bid on.

    Housing inventory in New York by season

    Season
    Based on 2020 data from Realtor.com

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    Costs To Expect When Buying A Home In New York

    Before you even buy a house, youll need to arrange for a home inspection. While New York does have sellers disclosures, youre still responsible for doing your own due diligence regarding the condition of the home. Home inspections in New York will cost you between $400 to $500 dollars, with higher costs for multi-family homes and lower costs for condominiums.

    In addition to the base home inspection, many homebuyers opt for additional tests, such as termite inspections, mold inspections and radon testing. For the latter, New York has a radon level map which shows the level of risk for each county.

    Once the inspections are complete and your house closing date is determined, youll want to set aside additional money for the expenses and fees you have to pay when you close on a home. Closing costs will vary depending on where the home is located and the value of the home. You also have the option to negotiate with a seller to pay for a portion of them. In New York, you should set aside about 2.31% to 4.81% of the purchase price to pay for these fees.

    Climate’s Impact On New York Housing

    How to Buy a Home in New York Part 1 Complete Guide Real Estate
    Likelihood of Flooding in New York Homes
    • Floods in New York caused $206 on average in property damage this year.
    • 3% of homes in New York are required to have flood insurance. Flood insurance
    Likelihood of Storm, Drought, Heat, and Fire
    • A day that reaches above 91ºF is considered hot for New York. Normally, New York experiences about 8 hot days per year.
    • New Yorkâs forecast in 2050 is about 34 hot days per year.
    • The percentage of available water supply used by humans determines water stress. An area is at especially high risk when water stress is above 40%. New Yorkâs water stress now is about 18%.
    • New Yorkâs projected water stress in 2050 is about 19%.
    • Normally, about 0% of land near New York burns in a year, or about 126 sq. miles within a 100-mile radius.
    • New Yorkâs forecast in 2050 is up to about 279 sq. miles burned in a year .
    • Fire risk in New York ranges from Very Low to Low
    • Normally, New York experiences about 8 significant two-day storms per year, with about 2″ of precipitation per storm.
    • New Yorkâs forecast in 2050 is about 24 storms, with about 3″ of precipitation per storm.

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