First-Time Home-Buyers’ Series€¦ · First-Time Home-Buyers’ Series Breaking down what it...
Transcript of First-Time Home-Buyers’ Series€¦ · First-Time Home-Buyers’ Series Breaking down what it...
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First-Time Home-Buyers’ SeriesBreaking down what it takes to buy in NYC — so you feel confident navigating the market.
November 19, 2019
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StreetEasy is more than a trusted search platform.
Our mission is to help unlock the excitement and opportunity of NYC by helping you into a home you love.
Who We Are
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Understanding the NYC Sales Market
Industry Trends
Economist, StreetEasy
Nancy Wu
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Agenda
01 Market Overview
02 Navigating the Market
03 Top Markets
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Prices by Borough
$450,000
$990,000
$535,800
$575,000
$789,000
Based on median closing price in Q3 2019
Market Overview
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Price growth has slowed substantially across the city.
Market Overview
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More homes go on the market in the spring than in the winter.
Market Overview
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Listed for sale in Manhattan in Q3 2019, increasing by 8% year over year.
Listed for sale in Brooklyn in Q3 2019, increasing by 12% to an all-time high.
Listed for sale in Queens in Q3 2019, increasing by 11% to an all-time high.
13K Units 8K Units 5K Units
The number of units listed for sale is increasing to the highest on record.
Market Overview
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Is the median time on market for Manhattan homes in Q3 2019, which remains unchanged since last year.
Is the median time on market for Brooklyn homes in Q3 2019, up 7 days from last year.
Is the median time on market for Queens homes in Q3 2019, up 7 days from last year.
95 days 79 days 70 days
Homes are spending more time on the market.
Market Overview
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Market weakness is forcing sellers to reconsider pricing strategies.
Of units listed for sale on StreetEasy received a price cut in 2018.
Cut in total from listing prices on StreetEasy.
Of the total value of homes listed on StreetEasy reduced through cuts.
32 percent
$3.2 billion
10 percent
Navigating the Market
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Price cuts may be more frequent, but they are not deeper.
Navigating the Market
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Price cuts are often indicative of flexibility among sellers.
Of home receiving price cuts while listed ultimately sell below final asking price.
Approximate median discount from initial asking price to final asking price.
Approximate median discount from final asking price to closing price.
80 percent
6 percent
4 percent
Metrics reflect listings created from 2014 through 2018 and sold as of June 1, 2019.
Navigating the Market
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The tipping point for New York City is 5.75 years.
Navigating the Market
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Here are the neighborhoods with the most inventory accessible to first-time home buyers.
Top Markets
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Leverage the vast StreetEasy database of sales and rentals data — and tailor it to your needs.
Top Markets
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@nancyfwu
streeteasy.com/blog/research
Thank You
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Financing 101:Preparing to Buy in NYC
Home-Buying Finance
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01 Qualifying for a Mortgage
02 Credit Basics
03 Home-Financing Basics
04 Home-Financing Process
Agenda
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Qualifying for Mortgage
A Lender Considers
Income Do I have a source of income to make monthly payments?
Do I have enough for a down payment and closing costs? Are there additional, reserve funds that could cover a few months of payments?
What’s the market value of the property I want to buy?
What to Ask Yourself
Debt & Credit History
Assets & Available Funds
The Property
Do I pay all bills, loans, credit cards on time? What’s my credit history? Credit score?Do I have any other outstanding debt? How much?
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28% or less of your gross monthly income should go toward monthly housing payments
Qualifying for Mortgage
How Lenders Evaluate Your Ability to Repay
Total Debt-to-Income
36% or less of your gross monthly income should go toward monthly debt payments
Housing-to-Income
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Credit Basics
The Factors of Your Credit Score
● Payment Track Record
● Amount Owed
● Length of Credit History
● New Credit, Type of Credit
300-850
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The Keys to Better Credit
Pay down revolving debt
Automate your bill pay
Maintain your credit
Contact your creditors if you’re having trouble
Make large purchases
Open a lot of new accounts
Do Don’t
Credit Basics
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Understand Your Options
You may be able to buy a home with less than 20% down payment.If you do, you may be required to purchase mortgage insurance.
You have a number of loan options:Fixed-rate mortgages | Adjustable-rate mortgages (ARM)FHA loans | VA loans | Jumbo loansLoans for newly built homes | Interest-only loans
Home-Financing Basics
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Ways to Borrow & Types of Approval
Prequalification gives you an opinion on your home price range based on unverified information you provide.
Preapproval gives you an estimate of your home price range based on an initial review of your application and limited credit information.
Credit approval requires a full review of your file by an underwriter.This is stronger than a preapproval and gives you an advantage over other prospective buyers.
Home-Financing Basics
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Steps & Timing
Home-Financing Process
1. Completing Your Application
2. Financial and Property Review
3. Preparing to Close
4. Attending Your Closing
Final Considerations
Interest Rates
Purchase CEMA
Provide accurate information
Return calls promptly
Get homeowners insurance quotes
Get a home inspection
Avoid making large deposits
Pro Tips
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Thank You
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The Buyer’s Broker: Just What the Doctor Ordered
The Home-Buying Process
Anchor Associates
Ben Willig Compass
Jeff Dyksterhouse
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Agenda
01 Understanding the Buying Process
02 The Case for a Buyer’s Broker
03 Meet Your Teammates
04 The Best Strategies for Buying
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Understanding the Buy Process
Everyone’s Buying Process Looks Different
Financial Prep
Team Prep
Research & Viewing
Negotiations
Contract
Interview & Closing
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Broker Basics
Why Work With a Buyer’s Broker?
Going it alone presents pitfalls.
The potential savings are big.
You don’t know what you don’t know.
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It Takes a Team to Buy in NYC
Broker
Contractor
Attorney
Misc. Insurance, 1031, interior designers,
moving companies, cable
Mortgage banker
Broker Basics
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Best Practices
The Buyer’s Blueprint for Success
Research the market.
Prepare a buyer-specific plan.
Stick to your plan.
Don’t try to time the market.
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A Parting Word of Advice
Expect the unexpected ...
And stay calm!
Best Practices
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Thank YouFind more tips and resources for your home search at
streeteasy.com/blog
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