Can You Afford to Buy a New York City Condo?

Almost all of New York City’s newer buildings are condos. Buying a condo is basically the same as buying a single-family home. Your deed guarantees ownership of the entire inside of the unit, including surfaces of the walls and floors. In addition, you share undivided interests in elements included with the building.

Purchasing a New York City condo can be stalled by the board of directors. This only happens if the group is opposed to the buyer coming in; however, the only way they can officially prevent you from moving in is by buying the unit themselves, which rarely happens.

Costs to Consider

In addition, the more amenities your condominium offers, the bigger the building and the more staff required to maintain the building, the more likely it is that you will have higher monthly costs that may continue to rise.

The structure of condo ownership isn’t too difficult, but some contracts are prone to a few quirks. Common charges include the mortgage payment, which does not include property taxes. This is very important to remember, especially because the government will send you a bill directly.

The down payment for your New York City condo will be around ten percent of the purchase price. The bylaws of the property owners determine this amount specifically. If a mortgage from a bank is required, then the down payment can be as much as twenty percent. If the buyer qualifies for FHA loans, the amount will only be three and a half percent.

When going through a bank and using a mortgage, the closing costs are typically much higher. The recording tax will be one point eight percent of the total mortgage amount if your loan is under five hundred thousand dollars. For around five percent of the mortgage price, your lender will also require title insurance protection.

Other Factors

It’s not surprising that despite all of the costs and the seemingly difficult purchasing process, most New York City condos have much better amenities than apartments. Many condos offer perks such as washers and dryers, roof decks, playrooms, and even quality fitness centers.

However, it is also important to consider location. Many of the newer condos were built during the most recent development boom, which means they will be located in potentially difficult areas such as Harlem, the Financial District or Midtown West.

It is expensive and difficult to locate affordable condos in New York's most desirable areas. Central Park West and West Village are some of the most challenging areas to get into these days. It is possible, however, to find the condo of your dreams with a certain amount of dedication, money, and timing.

How to Negotiate the Best Deal on NYC Condos

Have you found your dream house, but scared that the price will prevent you from buying it? Don’t be afraid; it is normal for NYC condo sellers to quote a high price at the beginning, because very rarely to they end up selling it at the same price. How? In any real estate transaction, negotiating is a crucial part of the process when the buyer can lower the price of the property and get a good deal. Outlined below are a few helpful tips that will help you during the negotiating phase:

• Do research on the current real estate market. It is essential that you are aware of the prices for similar NYC condos to the one you are looking at. This is the best bargaining tool because it will lay the foundation of your price arguments. With this information, you can begin the negotiating process by quoting a slightly lower figure than the price of a similar property recently sold on the market.

• Establish what is driving the seller to sell his/her NYC condo. Is it divorce, a new job, or a relocation? Based on how eager the seller is to get rid of the property, you can drive a harder bargain and negotiate a better deal.

• Use multiple listing services; if they are not readily available, your agent can help you ge them. These services normally state the amount that the seller wants, and can help you determine if you are able to pay an amount similar to the one quoted by the seller.

• Take advantage of timing. Usually a couple of months after a condo is on the market, the seller starts to panic because buyer interest in their property starts to drop. When this happens, most NYC condo sellers get anxious to sell their house, and are more likely to accept a lower offer. They are afraid that if they wait too long, the only buyers interested will offer a price that is too low. Use this mentality to your advantage, by offering your negotiable price at the right time.

• Only consider real estate that you can afford. If you have a good amount of money, you can search for updated NYC condos with more features. This is a good approach if you have enough time to spend going through the available selection of properties and when the market prices are constant /not changing.

• Avoid closing costs. In tight markets, avoid asking the seller to add the closing costs to the house value (price). It would be wise if you drop the 20% and add the closing cost to your loan, instead of accepting 15% and pay for the closing cost.

• Avoid quality workmanship requests. Do not attempt to have the condo seller update the property before you buy it, because you run the risk that the remodeling or renovation job will not be up to your standards. It is easier to have them lower the price, and do the updating yourself.  

4 of New York's Priciest Condos

Hunting for a condo in New York City has never been for the faint of heart. With some of the priciest real estate in the world, shopping for a new living space in NYC can present a financial challenge to all but a very select group of the extremely wealthy. However, even the wealthy need a little help in looking over the options.

Budgets for Billionaires
720 Park Avenue may not sound like a bargain hunter's neighborhood, but with an asking price of just $27,500,000, this condo would definitely qualify as one of the more affordable in the selection of top end NYC condos.

This is a 14 room condo built in 1929 by Rosario Candela. With 80 feet of frontage onto Park Avenue, the unit gets lots of light and offers a wonderful cityscape view. There is a 30-foot living room, three fireplaces, original plaster moldings and herringbone floors. All in all, a nice little spot for the budget conscious.

A River Runs By It
There is also a 7,687 square-foot condo on the 14th floor of the Superior Ink building, located at 400 W. 12th street,  that offers a panoramic views of the Hudson River and lower Manhattan.

Designed by Robert A. M. Stern and developed by renown Related Properties, this yet to be finished unit is listed at $35.75 million. With construction still underway, this would be a good time to suggest any special amenities you might have in mind.

A TriBeCa Treat
Yes, there really is something nice south of Columbus Circle, and it can be yours for somewhere in the neighborhood of $45 million. This is the penthouse at 145 Hudson and was designed by James Carpenter to look like a crystal box in the sky.

The 7,500 square-foot, four bedroom, four bathroom duplex features a large wraparound terrace, museum quality insulated glass, and walls that allow art work to avoid damage from the sun.

A Walk in the Park
If you're looking for something a little closer to the park though, there is a nice little place at 50 Central Park South, just above the Ritz-Carlton, which is listed for $77.5 million.

This is a nice unit with two-levels, featuring a 900 square-foot living room on the 31st floor and offers one of the nicest views of Central Park of any of the NYC condos available. At that price though, you'd better hurry.