Benefits of home ownership

Investment

For most homeowners, their residence is their largest asset. With 20% or more equity invested in your home, as is typical in NYC, your home is a major investment. As you live in and make improvements to your home, and gradually pay down the principal on your mortgage, you are building on this equity.

Top 5 tips for buyers

There are five crucial rules to follow as you embark on the purchase of a property:

• Choose a real estate agent carefully as this person will be the most important advisor in your search. You will spend considerable time with this person so, in addition to knowledge and experience, trust and fit are key qualities you should seek.
• Before you begin searching for your property, get pre-approved for a mortgage with a bank and/or a mortgage broker so you have a clear understanding of your budget. Your real estate agent can provide recommendations of trusted lender contacts.
• Educate yourself on the market by speaking with your real estate agent about property values in different neighborhoods and the differences between cooperatives and condominiums.
• Take advantage of publicly available information to research recent sales of comparable properties, and visit open houses in addition to those properties introduced by your real estate agent to get up to speed on the current market.
• Once you find a home you are interested in be sure to do your due diligence. Your real estate agent will help you obtain information about the building’s financial condition as well as any renovation or major repairs that may have been done to the property itself and the building. Building policies on financing, pied à terre and subletting vary considerably, and can affect property values.
• Build out your team wisely. New York is an attorney state so you will need to hire a New York City real estate attorney to represent you in the purchase. Your real estate agent will provide recommendations of competent, experienced attorneys from whom you can choose.