11
GayCityNews.com | MARCH 24 - APRIL 7, 2022
REAL ESTATE
How Homebuyers Can Beat a Hot NYC Housing Market
Queer real estate leaders offer tips for folks looking to purchase a home
BY HEATHER CASSELLL
New York’s housing market
is hotter than hot, and it is
only going to heat up more,
according to LGBTQ real
estate agents.
“Inventory is kind of ticking up like
it normally does this time of year,”
Doug Williford, chief strategy officer
at Brown Harris Stevens, said about
the normal homebuying and selling
season, which usually begins in April.
What’s unusual, he said, is that the
“inventory has been tight for months.
And demand is still going up.”
“It doesn’t take much of a crystal ball
to look down the road,” he continued. “It’s
going to mean a lot more competitive situations
and prices are going up. People
have to be ready and sometimes ready to
be aggressive if they need to be.”
Agreements for condominiums
dropped 11 percent over the last year,
from 498 to 445 this February, reported
The Real Deal, citing a Douglas
Elliman report. Cooperatives (co-ops)
saw a six percent uptick in signed contracts,
from 601 in February 2021 to
639 last month.
Go for the Highest Standard
Cooperatives, commonly called coops,
make up about 85 percent of the
properties for sale in New York City,
said Matthew Bank, vice president of
Bank Neary Real Estate. They can often
cost 30 percent less than condominiums,
he explained.
Co-op apartments, in short, are
when people buy a share of a corporation
that owns the building. The co-op
building is managed by a board that
decides who will become a part of the
community.
“You spend more to get the same
thing in a condominium,” Bank said.
Co-ops provide a good benchmark
for putting your buyer application together,
Bank continued.
“You can’t make an offer without
giving that paperwork,” he said.
Non-traditional professionals, like
freelancers, need to put a little bit more
into the process to prove they are a valid
candidate to buy a home, he added.
Mortgage Pre-Approval Letter
Lenders give buyers a mortgage preapproval
letter to state what type of
loan they are tentatively willing to give
to you and the amount they are willing
to lend to you based on your financial
history. The letter isn’t a guarantee of a
loan offer, but it shows you are serious
about buying,
Many buyers won’t get their foot
through the door to begin searching
for a home, let alone make an offer,
without this document, the agents
said. Williford said using a bank that
has its roots in and operates in the city
is the best way to go.
“It’s going to make your life so much
easier,” he said.
Financial Disclosure Form
Get your financial house together:
bank statements, credit reports, pay
stubs, investments, and any assets.
One of the most important documents
in your application for buying a
home is the financial disclosure form.
This document, which your real estate
agent or the Real Estate Board of New
York can provide a simple form to fill
out, outlines what you can afford.
The form lists people’s assets, income,
and liabilities. Bank said many
people “have no idea what they can afford”
until they put this together.
“Most of the board approval process
is based on making sure you meet the
financial requirements of that particular
building,” Bank said.
Not only do your financials have to
be in order in your application, but
your explanations for any questions
co-op boards and sellers have need to
be targeted to a specific building and
be clear, said Gil Neary, president of
Bank Neary Real Estate.
Verified Letters of Reference
Letters of reference help back up the
financial documents by putting a personal
face to the numbers as well as
the background and credit checks. The
letters can be from your accountant,
banker, business, or personal reference
— and they need to be verified.
Be Flexible: Location & Building Type
New York is everchanging, which
is one of its charms. That also means
more opportunities to broaden your
horizons and find affordable, charming,
or soon-to-be charming areas.
“Certain people fit into certain areas
just because there’s a neighborhood
vibe,” Neary said.
At the same time, he said, growing
acceptance of LGBTQ people has allowed
folks to venture elsewhere if they
are priced out of gayborhoods. Williford
agreed, stating that he’s seeing a lot of
LGBTQ homebuyers moving into neighborhoods
in Upper Manhattan, such as
Harlem and Washington Heights.
BROWN HARRIS STEVENS
Doug Williford, chief strategy officer at Brown Harris Stevens.
/GayCityNews.com