Whether renting a New York City apartment, or you’re living and paying rent in one of the many suburbs or cities around New York State, when the coronavirus quarantine finally ends we will likely hear the roar of pent-up homebuyer demand being unleashed!
On-the-other-hand, perhaps you already own an apartment or house that you call home.
Regardless, the coronavirus pandemic that we have all been living through will have been enough to convince many that new, less dense, living arrangements are called for! Then again, maybe there is some other reason for relocation that will come into play.
Below are just some of the reasons for why the urge/need to move may be triggered come the end of quarantine.
- The terms of density and social distancing, rarely spoken 8 weeks ago, are now fixtures in peoples vocabulary potentially leading some to want to find less dense accommodations.
- The record low level of mortgage rates may be enough to push renters and owners looking to move off of the sidelines (note: have we got a mortgage broker for you!).
- With the volume of new luxury apartments coming online that boast non-coronavirus friendly public amenities like rooftop lounges, gyms, restaurants, etc., buyers may feel that real estate price discovery will result in a reduction of prices in this sector of the market. If we have indeed gone through a once-in-a-hundred-year health crisis, these luxury appointments being offered at some point will come back into favor.
- With the cost of private schools in NYC combined with the density factor, the suburbs might be a destination for some.
- Finally there will always be the pre-pandemic reasons for why people are going to look to buy a new home such as tax benefits (limited now due to SALT), desired amenities such as a big yard or pool, more space, location and more.
Before You Shop For Real Estate, Line-up Your Ducks!
Before you begin shopping for a new home, you want to preplan by assembling a basic team of trusted professionals who will help to lead you through the process.
- Mortgage Loan Originator – Find a professional to get pre-approved for a mortgage and ultimately funded. You want to find a mortgage loan originator who comes highly recommended, is competitive on rates, but most importantly has a track record of leading applicants through underwriting and to approval of a loan and ultimately funding!
- Real Estate Attorney – For some homebuyers the temptation is to use Uncle Joe, a matrimonial attorney, who is willing to handle your transaction. STOP! Real estate law, like every aspect of the law, is specialized, complicated and sometimes involves issues that the buyer needs to be protected from! True real estate attorneys, the good ones, maneuver through any issues with the best interests of their client as the bottomline. They also will look to fix any deal that is able to be fixed and close. Remember, you don’t use your uncle the brain surgeon to work on your knee just because he will do it pro-bono. For what may be the largest financial transaction you ever enter into, do not be pennywise and dollar foolish.
- Real Estate Agent of course – You want to use an experienced agent with a proven track record for the area you are looking in.
- Home Inspector/Engineer: If they are thorough and once again come highly recommended, these professionals will go through any property with a fine-tooth comb to uncover issues that need to be addressed. This is critical, as after you close your potential remedies are limited.
- Title Insurance Company – What is title insurance you may be asking, and isn’t that something that my real estate attorney will handle? The answer is typically yes, but in New York State you have the right to choose your title insurance provider! And there are some important reasons why you should consider it because, at-the-end-of-the-day, all title companies ARE NOT the same! Consider these four important factors when choosing a title insurance provider:
a) Saving Money – While the title insurance premium will be the same regardless of the company being used, the title bill that includes ancillary and ‘junk’ fees will vary from firm to firm. This can result in closing costs being paid by the buyer that are $1,000 or more higher than at a firm like Hallmark Abstract Service!
b) The Underwriter – Make sure that the underwriter being used is well capitalized and one of the top companies in the industry. A firm like Fidelity, First American or Old Republic that you know will stand behind you no matter what!
c) Claims Experience – Regardless of the title company that you use, a title insurance policy will be issued at the closing. But that said, you want to make sure that the title company being used has experienced few, and hopefully zero, title claims.
d) Affiliated Arrangements – You should inquire as to whether the title insurance provider has affiliated business arrangements with any of the other participants in your deal. Such an arrangement creates a conflict of interest that you as the buyer should try to avoid!
Questions or Comments? Contact Hallmark Abstract Service CEO Mike Haltman at (646) 741-6101 or firstname.lastname@example.org at any time.
Articles of Potential Interest
- Buying a Property in New York? Remember You Have the RIGHT to Choose Your Title Insurance Provider!
- In New York, Why Should You Care About Title Insurance?