Many of our buyers are out of town parents buying condo for their son or daughter that are in New York or moving to New York for either school or work.
If you are a parent looking to buy a property for your son or daughter, not sure where to start, here are 5 big tips for you:
1. Buying a Manhattan New York Condo as parents buying for children, you should understand your budget and timeframe to start.
We work with many parents who are buying for their son/daughter that goes to New York University, Parsons school of design, School of Visual Arts, Columbia University, Jillards music school and other well known schools here in Manhattan New York. Is this for your son or daughter that is currently working in Manhattan? Do they have a job stability or financial freedom? Are they currently renting and lease may be expiring soon or month to month arrangement? It is important for us to know the reason and timeframe so we can narrow down the search for you. Buying in Manhattan New York is very different than the rest of the country or world, once we identify the property, it will take some time to actually close on the property.
2. Manhattan New York is a unique market where about 85% of the housing products are ‘cooperatives’ and 15% are condominiums.
Each building has different rules and guidelines, as parents buying for children, not every cooperative will accept this type of scenario since all sales are subject to board of directors review and interview. Even if it is an all cash purchase, cooperative still review and decide if the perspective buyer fits the building’s profile. Condominiums are essential real property, therefore, the board of directors will review the perspective buyer as a formality but no interview.
3. If Buying all cash, and you are buying a condominium, the quickest we can close would be 45 days.
If it is a cooperative, then it can be 90 or more days subject to condo board approval. If it is new construction condo, it can be two weeks up to unknown period of time depending on construction stage. Mortgage consultant: If you are planning to buy the condo all cash, that is always desirable when presenting offers to condo sellers. Keep in mind that you should have enough equity in case there is an increase in monthly carrying charge for this condo or other misc mis-happens. If you are planning on financing this investment, be sure to speak to a local Manhattan lender that is familiarize with the market, the lending rules, and the mortgage products that may be suitable for you and your son/daughter.
4. Making offer and offer acceptance
Unlike other parts of the country or world, when a buyer makes an offer on a property here in New York, the offer is made through us, the Real Estate agents and the buyers do not sign any contracts or purchase agreement nor any earnest money when making an offer. Buyers and sellers agreed on the price and then both parties enter into attorney contract review period. With that being said, until both buyers and sellers sign the contract and the 10% deposit is clear, the property is NOT off the market and there is NO BINDING CONTRACT. This means if sellers receive a higher or better offer prior to they sign contract, they can change their mind.
5. Neighborhood safety
This is the #1 concerns for many of our parents buying for children buyers. In Manhattan New York, this is a city where many of the people work or social until late past 9pm or after, most of the Manhattan Streets are very safe to walk around and pedestrians friendly, this is truly a city that never sleeps! We encourage our buyers to walk around the neighborhoods in different time of the day or week to see if they feel comfortable living in that neighborhood. Many of the Manhattan New York buildings are also doorman buildings, so if possible, it will be a good idea to look buying in a full time doorman building.
As parents buying for children in Manhattan New York, we have successful experiences that can guide you through this process and navigate through the Manhattan Real Estate maze. contact us now at (917)837-8869.
