A Method to the Madness: How to make a quick and informed decision when you find the RIGHT apartment.
The New York real estate market is improving rapidly as a result of low inventory, high demand and the availability of attractive financing terms. These factors have given steam to the market and have resulted in increasing values. This low inventory is creating some “madness” in the market. Only 8,529 units were on the market as of Dec 2012, or 18.2% less than the same time last year according to Streeteasy.com. Michael Vargas at Vanderbilt Appraisal asserts that is only 5 months of property supply. These statistics are creating more and more bidding wars, a far different situation than the same market just one year ago.
As a buyer you must be prepared to move quickly. My last blog entry, “The Ultimate Checklist for Buyers,” was designed to help you decide what apartment will work best for you. Here we will discuss how to quickly and assuredly pursue the right apartment once it has been identified.
In this market sellers are in the driver’s seat. They will only deal with buyers who are well prepared and well qualified. To win the race you must make an offer quickly and in as strong a manner as possible:
-Don’t be afraid to make a same day offer.
-State that you do not wish to be in a bidding war.
-An excellent way to stand out is to offer slightly above ask if your broker can justify the offer.
-Be transparent when making the offer.
-Have your broker give your financial breakdown with the offer.
-Prepare a short bio on you and your family.
-Be clear about your timeline and all conditions.
-Offer a quick closing.
To make the process less daunting, it is helpful to keep the following three things in mind:
1) Do your research so you know the values in the area. A good buyer’s broker will help you with this.
2) Make sure your financing is in place, with mortgage pre-approval and REBNY financial firm completed. It is important to demonstrate to the seller that you are financially stable.
3) Retain an attorney with New York City residential contract experience. A good attorney will facilitate a smooth transaction so you don’t lose out to a backup bidder.
Note: do not expect much negotiating on properties in this market. By doing your research and knowing your needs, you and your broker will be able to justify value.