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I recently put a clients apartment in contract at the full asking price. This was my 3rd deal in a month at the full asking price. Its probably safe to say the market has picked up a lot in Manhattan. As a listing agent in these scenarios who was receiving and negotiating multiple bids at one time I noticed a shortfall in the way buyers were engaging. Here are the 5 biggest mistakes they made:
1. Not knowing how many other buyers were engaging with the seller. Wouldn’t be nice to know if you’re up against other offers? Or how about knowing what stage of the process the other buyers are in? Was the offer accepted? Was due diligence completed? Was inspection scheduled? Knowing where you stand next to others is very important.
2. Working with an online bank for your financing. If you want your offer to stand out make sure you are pre-approved by an established bank and work with a local mortgage lender. The overall process will be better. A local mortgage lender knows your market and understands the inner workings of the buying process in NYC. It would help to know if their underwriter is in the same office which makes the process more streamlined and faster.
3. Making Low Ball Offers. Regardless of whether it's a buyers or sellers market, low ball offers are usually not responded to or taken seriously. There are extremely rare instances where a seller would engage with a low offer but 99% of the time it is not an effective negotiation tool.
4. Not knowing all of your costs: Did you know that apart from your down payment you will have closing costs as well? You will also have costs related to that particular building and if you are a spreadsheet type of person, get the purchase application ahead of time to assess your costs. Note, your closing costs may be higher if you’re purchasing new construction.
5. Not working with a real estate agent: It cost you nothing (in most cases) to hire a real estate professional to do 99% of the work for you. A good agent is worth having in your corner. They will guide you away from financially troubled buildings and show you options that are feasible - they look at the buildings policies ahead of time and many times they already know the building's rules such as whether the building allows students, pets, owners renting out their apartments, etc.
After 8 years in real estate I have seen it all. Whether you're looking to sell or buy, contact me and let's strategize on how you can get ahead in this market.
call or text 646.586.3745