The New York home selling process looks very different between New York City and the rest of the state, so be careful if you are preparing to sell your home in New York. Selling in NYC comes with a wide range of prices — from a median asking price of $425,000 in the Bronx to $1.5 million in Manhattan, according to StreetEasy — in the northern college town of Syracuse, Redfin says the average sale price is just $165,500. . No matter where it’s located, selling a home in New York requires careful thought about when to list it, how to price it, and what it will cost to show. Read on to understand what to expect during the sales process and how much you should pay.
Are you ready to sell?
Trying to figure out if you should sell now or wait? Consider the current housing market, which includes high mortgage rates that may turn off some buyers. Although now is a good time to sell in New York, 51 percent of homes sold in June sold for more than their list price, according to Redfin.
However, that doesn’t mean you should rush to sell right away. If you are trying to sell your home while buying at the same time, you should consider the obstacles you may face on your way to finding a new home. Wherever you are thinking of moving, you should also think about the cost of living.
Preparing to sell
Before you put your place on the market, consider three questions:
1. Is it worth improving your home before selling it?
Making major improvements takes a long time, costs a lot of money and doesn’t always produce a return on investment. Plus, it’s hard to say whether prospective buyers will like your cabinet choices or the layout of your bathroom remodel. Instead, consider some inexpensive ways to increase your property’s value that won’t take a lot of time or money.
Bankrate Insight
If you’re selling a New York City apartment, consider paying to install a washer/dryer if your building allows it. Data from StreetEasy shows that in-unit laundry is the number one amenity NYC apartment buyers want, and it helps your space stand out in a crowded market.
2. What should you fix before selling your home?
Put yourself in the shoes of anyone trying to buy in New York. Is that leaky kitchen faucet a red flag for you? in case. Does the broken garage door make the house less valuable in your eyes? in case. Ask a real estate agent for an expert opinion on where to spend money and what not to fix.
3. Should you pay to stage your house?
Here’s an easy way to make your New York home feel like it’s ready to star on Broadway: Stage it. How much you pay for home staging depends on the type of product you want. Renting new furniture to fill an empty room can be expensive. Again, your agent can help you make more money from the sale of your home.
When is the best time to sell a house in New York?
Summer is the best time to sell in New York: it’s the time when homes spend a few days on the market. Homes spent an average of 29 days on the market in June 2022 – a sharp decline from three months ago, when homes took 49 days to sell. If you’re shopping in the Big Apple, be prepared to wait longer. NYC homes spent an average of 57 days on the market in June, according to StreetEasy data.
Find a New York real estate agent
Hiring the right real estate agent can help you book the best time to list your New York home, the best photos to attract buyers, and the best weekend for your first open house. Of course, agents charge money — typically 3 percent of the sale price to your agent and 3 percent to the buyer — but it’s worth it. According to research from the National Association of Realtors, agent-sponsored sales from FSBO (For Sale By Owner) listings have historically been around 18 percent higher.
You can always ask agents for their willingness to offer a lower commission rate. For example, suppose an agent is willing to reduce his commission from 3 percent to 2.5 percent. That may sound small, but on a $900,000 sale, it saves the seller $4,500.
Also, be aware that dual agency is legal in all of New York, which means your agent can represent both you and the buyer in the transaction. But that cannot happen without your consent. If this happens, consider asking for a reduction in the commission because they don’t have to split it with anyone.
Price your home competitively.
When trying to figure out what your home is worth, start by looking at the comps in your area. For example, a two-bedroom, one-bathroom condo in Williamsburg, Brooklyn, or a condo of the same size in Rochester will have a completely different pricing strategy. The focus of your pricing strategy is not just to make as much money as possible; It is to attract as many buyers as possible to view it. About 50 percent of homes in New York State will sell for more than their asking price by June 2022 on Redfin, and you’ll want to know how to get your home into that category. Your agent will be an invaluable asset.
Documents and statements in New York
The largest document that New York sellers share is the state’s Property Condition Statement. The seven-page form covers a variety of questions about concerns, from large concessions such as asbestos in the building to the name of the electric utility company. Sellers who fail to complete this form must pay a $500 fee to the buyer. However, this rule does not apply to condos or shared homes.
If you are selling a condominium or condo or apartment, you need to share various additional information about the building’s financial health, bylaws, and other details. Be sure to ask your real estate agent about which forms to fill out and what documents to obtain to avoid any delays at closing.
Want to sell your home fast?
If you’re in a hurry to sell, here are a few ways to sell your New York home in an accelerated timeline.
- Sell to iBuyer: You can use iBuyer to buy your home in less than 24 hours from companies like Opendoor, Nook, or other companies that specialize in online buying. But keep in mind that even if you don’t have to pay realtor commission fees, your offer may be lower than it would be on the open market.
- sell for cash; There are also many companies that buy houses for cash. If your home needs a lot of maintenance, this can be a good option – many of these companies are looking for properties that need some extra love, so you can fix them up and get them ready for prime time.
- Sell as is: Another option is to simply sell it in “as is” condition. That lets buyers know what they see is what they get. Even if issues are revealed in a home inspection, you can’t deal with them or negotiate around them.
What to expect at the closing of New York
There is one last step before you can officially download your place in New York. And even if it is closed when the money is transferred, it will not be free. Here is a list of some common costs of selling a home.
Home selling prices in New York
The biggest line item in your budget may be the money you need to pay the real estate agents involved in the transaction. Each agent’s fee is 3 percent of the total sale price out of your pocket. So, on an $800,000 sale, you’ll probably pass up $48,000 in realty fees. There can be some wiggle room, especially with high-priced properties, so be sure to negotiate that cost up front in the deal.
And don’t forget the cost of moving. You won’t pay the movers at closing, but you should budget for this expense when trying to run the extra numbers you might get. If you’re moving into your current home, the price tag shouldn’t be too much. However, if you are shipping to Florida, for example, be prepared to spend a significant amount of money to move all of your items south.
Sellers’ closing costs
- Warranty of Ownership: Unlike many states, the buyer usually covers the cost of title insurance in New York. So, this is one area where you can expect to pay nothing.
- Transfer Taxes: The seller typically covers the cost of New York’s real estate transfer tax. The rate is $2 for every $500 of value, so if the property is worth more, you’ll pay more. For example, on a $500,000 sale, the transfer tax would be $2,000. New York has a “mansion tax” that adds an additional 1 percent to homes selling for $1 million or more.
- Accommodation Fees: You may need to cover a portion of the debt payment in order for the outside party to retain the actual funds from the buyer. However, you can include it in the contract for the buyer to pay this fee.
- Attorney Fees: New York State requires an attorney to be present at all home closings. Legal fees are also paid at closing. The amount varies based on their history and the number of hours required to complete your transaction.
- Reveal the tax If you’re selling a condo in New York City, make sure your condo is subject to taxes — essentially a fee to transfer ownership of your apartment. The price varies from building to building.
- Dealer discounts: If a home inspection reveals some problems with the property, sellers must pay a portion of the buyer’s closing costs. One way to avoid lien claims is to conduct a pre-listing home inspection, which can identify payment problems before listing.
Take the first step
Are you ready to start? You are the sales boss. Now is the time to interview real estate agents to find out which one you should hire. Compare a few different competitors to find out who will do the best job for your situation.
