4 Tips When Bidding on a NYC Apartment
Bidding on an apartment can be a competitive process due to there being many buyers in the market trying to snatch up a piece of New York real estate. When you put in a bid do you choose to play it safe and go high or risk losing the apartment and go low? Increasing the down payment, getting pre approval and writing a personalized letter are all great ways to grab the attention of the seller.
Increase your down payment
When looking at an apartment you could be bidding against multiple other offers. To make your bid stand out from the others consider increasing your down payment on the apartment. The average downpayment on a home for the last five years has been between five and seven percent. Upping your down payment by even as little as two percent can make your offer more appealing to the sellers.
Try to get pre approved
The New York City housing market is very competitive so once you find an apartment that you love, you have to act fast. To be able to make an offer as fast as possible, consider getting a pre approval letter from your bank. The pre approval letter will state the loan amount you are qualified to get based off of your income, credit history and debt. This can prove to sellers that you are serious about your offer and have the financial means to back the purchase.
Write a personalized letter
When you are trying to buy, it can be difficult to stand out from other potential buyers. Write a personalized letter to the seller of the home telling them why you like their home and are interested in buying. If you have kids write about how the location of parks and the schools drew you to the neighborhoods. Or if you are a first time home buyer tell the seller how excited you are to buy your first home. Personalizing your letter can help you gain favor with the seller and make them more likely to accept your bid.
Present an all cash offer
Sellers will typically favor buyers that present them with a cash offer because you appear to be a better and safer option. While this may not work for everyone it is a great option to consider if you are serious about buying an apartment and have the financial means to do so. Before you go forward with making a cash offer, speak to your mortgage broker and accountant to review your options.
Contact one of our agents today to learn more.