Before buying real estate in New York, you should consult with a professional real estate broker to learn about all the intricacies of the purchase procedure. In order to make the life of potential investors easier, we will talk about the key details of the purchase transaction as well as the main difficulties investors can face.
Step #1 – Outline the Goal
There is a fairly large real estate market with many different options in New York. So before embarking on a search, you must clearly define your goals, desires, and expectations.
Step #2 – Get to Know the Mortgage Broker
The broker will quickly select a suitable mortgage program for you and pick the offer with the most optimal lending conditions. On your end, you will have nothing to worry about.
Step #3 – Choose a Lawyer
It is a lawyer who will draw up the purchase and sale agreement, check the documents of ownership, draw up contracts, and register the apartment. All the rights and obligations of the client, the correctness of the documentation – all this depends on a lawyer; therefore, you need to approach the selection of a lawyer very carefully.
Step #4 – Get Advice from a Tax Expert
There are different tax obligations for investors, which vary greatly depending on the purpose of acquiring real estate (for residence or as an investment contribution). A tax expert will help you avoid unnecessary expenses, as well as select the appropriate type of transaction.
Step #5 – Contact an Accountant
If the property is purchased as an investment, then the owner will need to fill out a declaration for the IRS every year. Therefore, the buyer will have to resort to the help of a financial specialist who will keep tax records. This is where you won’t be able to take any step without a professional accountant.
Step #6 – Open a Bank Account
It may sound quite obvious, but it is impossible to pay for real estate in the United States in cash or by credit card. Money is transferred only from account to account.
Step #7 – Search for Real Estate
With an experienced residential agent, this process will take a day, maybe a little longer. The broker will take notes of all the wishes of the client and will review all the objects available at the moment. Besides that, it is an agent who will tell you about an apartment and can even arrange a virtual tour. The best virtual staging company in New York will even help you visualize how a flat will look like once you do renovation and furnishing.
Step #8 – Review an Offer to Buy an Apartment
In the purchase offer, it is necessary to indicate all the conditions that the buyer offers to the seller when making a transaction. From this moment, negotiations begin.
Step #9 – Sign the Sales Contract
If the seller accepts the terms of the transaction, then a contract for the purchase of the object is concluded. This document must contain all the terms of the transaction, such as:
- The period of the assessment;
- The purchase price;
- The deposit amount;
- And the terms of the transaction.
The buyer must pay a deposit (usually, this amount is not more than 10% of the total cost of the apartment). This deposit is a guarantee of the buyer’s serious intentions, as well as a reservation for the intended object.
Step #10 – Check the Apartment
After the contract is signed, it is necessary to check the property, especially its legal status. This check is aimed at identifying apartment arrears or violations of the terms of the transaction by the seller. It will also be useful to inspect the apartment in order to see the technical condition of the object. If an apartment is purchased to attract mortgage funds, then its future market value is also checked.
Step #11 – Pay for the Transaction
All participants in the buying process get together to conclude the actual purchase and sale agreement and sign the final contract. The buyer is given a title deed and keys to the apartment.
There are many pitfalls associated with the purchase of a real estate in New York. Therefore, we strongly recommend approaching this investment activity with special accuracy and responsibility. Follow the above tips and hire a professional broker to help you arrange a deal. Good luck!