1. You do NOT have to spend a lot of money. (Relatively speaking.)

There are many strategies for those who want to buy luxury real estate in New York City but don’t want to spend an exorbitant amount of money. One way is to buy a unit on a lower floor of a luxury building. A unit on the second floor can cost up to 19% more than a comparable unit on the first floor. Another option is to look for units with higher maintenance or common monthly charges, as they tend to have lower sales prices. Alternatively, some lines in a building may be priced higher than others…for example, a line of units with windowed bathrooms will sell much more on the open market than a line whose bathrooms are lit with fixtures only.

2. Get bank approval.

If you need a mortgage to purchase luxury real estate in New York City, you’ll want to obtain a mortgage approval letter from your bank stating the mortgage loan amount you’re approved for. Smart sellers can legally tell their brokers to only show properties to buyers who are “bank approved.” A bank qualification letter is not the same as an approval letter and will not qualify you to view a property under the bank approval requirements.

3. Know your terms.

In the real estate industry, “terms” refers to the stipulations under which the money is delivered. For ATMs, this relates to, among other things, the number of days it takes to close. For mortgage holders, it refers to their interest rates, as well as the time needed to obtain the funds from the bank and transfer them to the corresponding ESCROW account. In a real estate transaction, the terms are just as important as the cash, because they dictate to sellers what terms they will get to get their original purchase price back. If you know the terms inside and out, it will be easier for your broker or agent to negotiate with sellers for you.

4. You CAN do your own research, and you probably should.

According to the National Association of Realtors, 88% of people start their real estate search online. In New York City, home of the savvy shopper, more than 90% of buyers and renters start their search online. The importance of doing your own research is to stay ahead of your competition: other ready, willing, and able buyers. Each luxury building in New York City has its own rules of purchase and its own services to offer. Each area of ​​Manhattan has its own drawbacks, quirks, and advantages. And not all real estate agents or brokers are the same. You’ll want to do some preliminary research to stay ahead of YOUR competition: other ready, willing, and able buyers. Which brings us to our next point…

5. The competition IS fierce.

You’ve probably heard this adage before regarding the New York City rental market: Bring a bank-certified check and be ready to close on a rental unit you like as soon as you see it, because the next person who sees it you could just hook it under your nose. A similar fervor applies to the New York City buyer’s market, especially for New York City luxury real estate. International buyers who pay for everything in cash are probably your strongest competition in the New York City luxury market. They can walk in and say “I do,” and cash buyers can close in as little as two weeks. Learn about your own financial situation and how quickly you’re ready to move into a property you like. The ability to quickly move to ESCROW will give you a significant advantage over other buyers.

6. YOU NEED a competent broker.

Just because a property falls under the luxury umbrella doesn’t necessarily mean it’s problem-free. Structural issues, such as inadequate weight-bearing pillars and roof issues, evidence of water damage and mold, or plumbing and HVAC issues, are just a few of the issues one may encounter in any property. This is why it is integral that one perform a home inspection before signing on the dotted line. Most importantly, make sure your purchase contract includes a home inspection contingency — a statement that allows you to freely leave the property if the inspector finds a problem with it. A competent broker will also not waste his or her time showing you unsatisfactory properties.

7. The New York City luxury real estate market never really fell.

The New York City real estate market is a market unto itself, comparable to no other in the United States. Play by your own level of supply and demand rules. The international demand for luxury real estate in New York City remains one of the main reasons Manhattan prices are so high compared to other areas. REBNY reported that 2012 was the most successful year (over $30 billion in property sales) for New York City real estate since 2008. REBNY also reported that broker confidence in the market has been higher in January 2013 than any month in 2012. Sales figures at most brokerage firms point to the fact that we are continuing the trend toward a seller’s market, as sellers and cooperative boards continue to be able to choose from a pool of potential buyers. . Know that the New York City luxury real estate market is by no means depressed, and factor this knowledge into your purchasing approach.