If you’ve ever looked for an apartment in NYC, you know it’s not very easy. It can be done without a broker, but it sure is more work than one would expect. It used to be an easier process, but since inventory as real low it’s become quite a challenge.
Firs of all, its summer time and this is naturally the busiest time since students graduate and move to NYC to become professionals. Eventually as these professionals are ready to move a few years down the road, it will be during the summer again. This is just one of several reasons why it’s currently so competitive.
Besides the many youngsters moving in, the rental market has been booming for other reasons. One of the reasons is due to a low supply of rental apartments. As someone who has searched many times, I always suggest jumping on a place when you find it.
Brokers have become more necessary in this crazy market. Unfortunately, there’s a fee you’ll pay, but they’ll save you a ton of time and effort. Running around the city during the summer can really get stressful, especially in this market.
Broker’s fees usually range from 1 months rent to 15% of the annual rent. Besides rental buildings, many home owners do rent out their apartments. Usually a broker has an exclusive on this, in which they either get paid by the owner or by the tenant. If another broker brings the client, they’ll split the fee (co-broke).
Keep an eye out for what type of building you’re looking in. Condo’s and Co-Ops tend to be nicer, since they’re maintained by an individual owner. However, there will most likely be some application fees for these types of buildings and possibly even a board interview in a Co-Op. Application fees go to the managing agent and usually cost around $500. There’s often a sublet fee in a Co-Op, but not condo’s.
Buying an apartment is a completely different game. Since it’s extremely hard to secure a mortgage these days, there have become more renters in NYC. This is one of the reasons rental prices are back up and there’s a low inventory.
New York City is a small island and it can only house so many people. More buildings will continue to go up and eventually fill up as well. New areas are being explored and great deals can be found in new developmental areas, although they are probably not the most desirable just yet.
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