Dec 1, 2023

Common mistakes to avoid when buying an apartment in NYC

Common mistakes to avoid when buying an apartment in NYC

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Purchasing an apartment in NYC is not as straightforward as it needs to be. There are numerous twists and caveats to it, and you need to navigate them. That is why doing research is really important, as well as figuring out the best mortgage type for your situation. There are many mistakes to avoid when buying an apartment in NYC, as well. That is why Capital City Bins has prepared this article for you. We are going to advise you on what to do and what not to do, as well as provide you with some tips and tricks about the whole process.

The list of common mistakes to avoid when buying an apartment in NYC

Here is what you need to do if you want to minimize the chances of making a mistake:

  • Preparation and proper research is essential
  • Getting the wrong mortgage
  • Stick to your budget
  • Read the contract twice!
  • Have a professional building inspection
  • Hire a real estate agent

As you can see, the list is not too long but every single part of it is essential so do not just go around anything.

young woman using laptop

Proper research is key when purchasing an apartment.

Preparation and proper research is essential

One of the biggest mistakes that you can make is not to do enough research before purchasing your new place. You simply need to know all the facts that govern the current real estate market before venturing into it. Therefore, before you even look at the apartments that you are interested in buying, check how much the average one goes for. Investigate all the fees and pricing that go into the process, as well. Quite often, people get trapped thinking that a deal is an amazing one before figuring out that all the associated fees make up for the rest of the price. Purchasing an apartment is not as straightforward as purchasing plastic bin boxes, after all. Do your research carefully and thoroughly and you will have no surprises waiting for you.

One of the common mistakes to avoid when buying an apartment in NYC - Getting the wrong mortgage

You always want to ensure that the mortgage rate that you are able to get is not going to get you into further trouble down the line. Unless you qualify for the best mortgage plan, you need to be really careful when going for it. Many people take mortgages under unfavorable odds because they can't get them under favorable ones and end up not being able to pay off their mortgage down the line. You need to avoid this at all costs. If your mortgage rate is not ideal, try going for a smaller apartment, or one in a more affordable neighborhood. If you need to save a bit more money, you can always consider DIY moving to NYC as opposed to hiring a professional moving company. But never go for a mortgage rate that you can't afford, no matter the apartment.

Stick to your budget

Moving on with another financial issue, you always want to make sure to stick to your original budget. A small deviation is not the end of the world but there are good reasons for your budget being as large as it is. This is a really common mistake that can have huge implications later on. It is always best to take your time to set a proper budget and stick to it. Try to have a separate budget for moving into your new home, as well. For example, you may need to be finding packing supplies on short notice and your budget needs to account for it. Always try to anticipate additional costs and never go above what you can afford. That is a good rule to live by, not only when purchasing an apartment.

female person counting money

Try to never go outside of what you actually can afford.

Read the contract twice!

A really common mistake is not reading the contract properly. Take your time, never rush, and try to read every letter. While most contracts are legitimate affairs, some will try to put in some clauses that are unfavorable for you. And you need to spot them. Therefore, read the entire thing at least twice so you are sure that there aren't any shenanigans within. If you are unfamiliar with some of the terms, ask for an explanation. Never be afraid to ask for clarification on anything. If you don't understand it, it was either not written correctly or it was meant to confuse you. Finally, it is always a good idea to let your lawyer or agent read the contract for you, as well. Having another pair of experienced eyes look over the agreement can never be bad.

Another one of the common mistakes to avoid when buying an apartment in NYC - Not having a professional building inspection

Chances are, the apartment you are going to be purchasing is going to be in one of the older buildings. Even if the building is brand new, you may wish to have professionals inspect it before you commit to anything. Not doing so invites all kinds of trouble and repairs down the road. Therefore, before you sign the purchase, make sure that everything is as it should be. Hire professionals and let them confirm it. The way that underhanded sellers try to avoid this is to tell you that there is no time for it. Never fall for that.

male writing down

Always arrange for professional building inspection.

Not hiring a real estate agent

The last mistake on our list is not using the services of a real estate agent. This is actually one of the biggest mistakes to avoid when buying an apartment in NYC. There are good reasons why almost every home purchase involves the use of one. They have the experience that is necessary to navigate the real estate market, and they all but ensure the legitimacy of the purchase. If you are going on your own, without prior knowledge and experience, there are a million little pitfalls that you can find yourself in. Even if you do have that experience, you still want to go with an agent because there are some exclusive deals that only they get. In fact, that is the main draw of real estate agents, in the first place.