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What’s going on in the world today? Here is an interesting news item we saw.

An excerpt from the article, “Insiders Reveal How To Play The New York Real Estate Game This Year” can be found below. Please read the entire article at this link: Insiders Reveal How To Play The New York Real Estate Game This Year.

Amid the continued volatility of the New York City housing market at the dawn of a new year, we checked in with a wide range of real estate experts–from a closing lawyer, to a mortgage broker to a pest control operator and more–for their best under-the-radar buying and selling tips for 2012.  

We asked them what they would tell a close friend or family member looking to buy or unload of a New York City apartment this year.

Here’s what they said >

This post originally appeared at BrickUnderground.

1. Real estate broker: Fred Peters of Warburg Realty

For buyers: Only buy if you think you can stay in the apartment long-term, meaning more than five years. … This is not a market for flipping. In a stagnant market like this, you’re not going to expect to make a huge profit if you flip it. You might be exposing yourself to a big loss. Even if you get the same amount that you paid for, you would still not be able to cover closing costs.

If you’re in it for the long-term, it makes sense to buy because mortgage rates are super low, historically low, and you can ride out this market.

For sellers:  It’s a buyer’s market now. Back during the boom, properties in any condition were getting snapped up. These days, properties will need to be really compelling in terms of price and condition in order for buyers to commit.

2. Industry watcher: Sofia Song of StreetEasy

For buyers: Only buy if you think you can stay in the apartment long-term, meaning more than five years. … This is not a market for flipping. In a stagnant market like this, you’re not going to expect to make a huge profit if you flip it. You might be exposing yourself to a big loss. Even if you get the same amount that you paid for, you would still not be able to cover closing costs.

If you’re in it for the long-term, it makes sense to buy because mortgage rates are super low, historically low, and you can ride out this market.

For sellers:  It’s a buyer’s market now. Back during the boom, properties in any condition were getting snapped up. These days, properties will need to be really compelling in terms of price and condition in order for buyers to commit.

3. Mortgage broker: Melissa Cohn of Manhattan Mortgage

For buyers: In New York City, where we have such a mixed bag of buildings — varied by their financial conditions, their pre-sale shape — don’t rely on the first lender that you talk to. You really need to do your homework. Talk to your own bank, but you should talk to mortgage brokers and shop the marketplace. 

Every building has its own history … and that history will define what bank is willing to do financing in that building. Oftentimes,  buyers and borrowers are surprised to find out that a building that’s been around for 50 years is not financeable in the traditional manner due to litigation, due to their reserves, due to when their underlying mortgage expires.

That’s why you really need to deal with an expert who can help you navigate and decide, based on the building’s profile, what price you are willing to pay and where is the good deal.

See the rest of the story at Business Insider

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See Also:

• 12 Markets Where It’s Better To Rent Than Own A Home
• 3 Tips To Help You Find The Neighborhood Of Your Dreams
• 8 Home Renovations You’ll Regret If You Don’t Do Your Homework

Business Insider: Real Estate