How to Buy Real Estate in New York City

Buying real estate is the largest purchase that most people make. The New York City housing market is known for its limited vacancies and expensive prices according to the New York City Department of Housing Preservation and Development. Manhattan has costly properties. Brooklyn and Queens have affordable housing and plentiful mass transit. The Bronx also has reasonably priced housing. Staten Island has less access to public transportation.

Instructions

1. 

   Prepare a budget.

   Prepare a budget. Freddie Mac, the government-subsidized lending organization, posts a monthly budget worksheet for purchasing a home on its website. Document spending habits for a couple of months, recommend the experts at Freddie Mac. Compare spending against your monthly income. The general rule is that housing costs should be one-third of your income.

2. 

   Apartment house dwelling

   Choose the location. Check public transportation routes for your commute to work. If you have children, find out the public school zoning requirements.

   Select the property type. If you are single or a couple with a small down payment, consider buying an apartment. Two types of apartment ownership are cooperatives and condominiums. In co-ops, a corporation buys a building and owns the land. In turn, purchasers buy shares when they obtain their units whereas condo purchasers buy real property.

   A benefit of apartment ownership is that your monthly dues will usually be a fixed amount. Many buildings have to charge a yearly assessment in order to meet expenses, such as high fuel costs. Also, buildings may raise the monthly maintenance in coops or homeowners' association dues--in condos--periodically in order to meet increased expenses, such as higher real estate taxes.

3. 

   Organize your property search.

   Organize your property search. Real estate listed on the Internet may include photographs and community information. For instance, you may search either the Curbed NY website or the online real estate section of "The New York Times." Decide whether your want to work with a real estate broker. According to the Federal Trade Commission Consumer Alert, it is recommended to establish whether the broker is working either with the seller or the buyer. Brokers have a fiduciary obligation to the person who pays their fee.

4. 

   Seek NYC property records on the Internet.

   Access public information. For example, the NYC Department of Finance makes property records available through the ACRIS online City Register. Find out how much real estate property taxes cost.

5. 

   Hire a lawyer.

   Hire a lawyer to represent you in the purchase. Generally, the purchaser makes an offer. Once the seller accepts the offer, both parties agree to sign a contract. Buyers place a contractual deposit which is usually a percentage of the purchase price. Afterwards, buyers place a down payment in order to obtain financing. Also, your lawyer should perform a title search to ensure that there are no encumbrances on the property.

6. 

   You will receive the keys for your new home at the closing.

   Attend the closing. The seller will convey ownership of the premises to the buyer.

Tips & Warnings

• Read about city planning developments. Effective as of 2010, read Mayor Bloomberg's Five Borough Economic Opportunity Plan. For example, there are plans slated for Staten Island to transform the Fresh Kills Landfill into a park.

References

• NYC HPD: Homebuyers
• Freddie Mac: Monthly Budget Worksheet
• Federal Trade Commission Alert: Buying A Home: It's A Big Deal
• NYC Department of Finance: Acris

Resources

• NYC Department of City Planning: The Five Borough Economic Opportunity Plan