Buying your first home is one of the most exciting milestones in anyone's life, and if you're considering New York, don't count out Staten Island. Staten Island has everything you want in a great neighborhood: expansive green spaces, endless outdoor activities, and a laid-back vibe. It's part of New York and close to all the excitement the city has to offer, but it has its own charm and could be the perfect place for a first-time home buyer.
Here we'll discuss the most important aspects of the home buying process and also provide tips to help you make a successful home purchase.
Overview of Staten Island, New York
The borough of Staten Island was once part of New Jersey, but became part of New York in 1898. Despite being one of the most populous cities in the world, Staten Island has a relatively small population compared to other boroughs in New York City: about 495,000 residents, including families and young professionals.
There are many benefits to living on Staten Island. One of the perks of living here is unlimited access to beautiful outdoor spaces. Known as the “Borough of Parks,” Staten Island is home to over 170 parks, including wildlife sanctuaries, botanical gardens, and waterfront spots. Staten Island is also a foodie destination, with a variety of cuisines to choose from, from classic Italian to Cajun Creole to authentic Sri Lankan cuisine. These are just a few of the reasons why Staten Island is so popular.
Steps for Buying Real Estate in Staten Island, New York
Here are some guidelines for the most important parts of the process when buying a home for sale in Staten Island, NY.
Find a Real Estate Agent
For first-time homebuyers, having a real estate agent can make a big difference in your home buying success and overall experience. Real estate agents in New York are real estate professionals who are licensed by the state and must adhere to the NAR Code of Ethics.
Deciding which financial route to take
There are two main ways to buy a home in Staten Island: by taking out a mortgage or by paying the full amount up front. Each option has its pros and cons.
Paying the full amount in one lump sum can speed up the buying process, save you money on mortgage-related fees and interest, and may even give you an advantage over other buyers. If you're a first-time buyer paying in one lump sum, you're in a great position, especially when interest rates are high.
But most first-time home buyers need a mortgage, and getting one can provide tax benefits, improve your credit score and give you some financial flexibility.
Know your credit score
If you want to get a mortgage, you need a good credit score. A credit score is a three-digit number that indicates your creditworthiness. The higher your credit score, the lower your interest rate. Your credit score is based on your payment history, debts, and new credit (if any). Buyers can check their credit score and get a free credit report from the three largest credit reporting agencies in the United States: Experian, Equifax, and TransUnion.
Check out our programs for first-time home buyers
Homebuyer programs make homeownership more affordable by providing assistance with down payments and closing costs, which can greatly increase the likelihood of homebuying, especially for first-time homebuyers.
Homebuyer programs vary from state to state. In New York state, the HomeFirst down payment assistance program allows qualified homebuyers to borrow up to $100,000. The New York State Housing Agency (SONYMA) has two low interest rate programs: Achieving the Dream and Low Interest Rate. Both loan programs offer 30-year fixed-rate mortgages and 3% down payment assistance.
Other first-time homebuyer programs include Freddie Mac or Fannie Mae's Conventional 97 loans, FHA loans, and VA loans for veterans and military personnel. The Conventional 97 loan program in particular is ideal for first-time buyers who have a good credit history and plan to use the property as their primary residence.
Determine your home-buying needs and wants
With so many homes for sale in Staten Island, NY, you may be overwhelmed with options when searching for a property. To narrow your search and save time, create a list of your home-buying requirements and wants. To distinguish between the two, home-buying requirements are must-haves — features that are non-negotiable and a must-have. Home-buying wants, on the other hand, are features you can compromise on.
It can be difficult to distinguish between what you need and what you can do without. If you're already working with a real estate agent, this task will be much easier. While your real estate agent won't force their needs and wants on you, as a knowledgeable and experienced advisor they can help you to think objectively about your criteria and clarify what you really need.
Explore Staten Island's options
Staten Island, New York has a wealth of homes for sale. Most of the homes in this neighborhood are single-family homes, but there are also townhouses, apartments, duplexes, and high-rise condominiums. Staten Island also has new developments that buyers can look forward to. These new projects usually have upscale features like spacious units, top recreational amenities, and community centers.
When it comes to neighborhoods, Staten Island has a variety of unique communities to choose from. There are family-friendly neighborhoods near great schools and outdoor recreation spots, as well as quieter areas with waterfront access. Most neighborhoods are located in urban areas with beautiful natural surroundings.
Create a compelling offer
Once you've found the perfect property, it's time to make a compelling offer. Your offer needs to stand out, especially when buying in a competitive housing market. Your home offer will include the offer price, the deposit you'll pay, the terms, and a closing date.
Deciding how much to offer is the first and most important step. It's important to offer not significantly below the market value of the home, or you may be instantly rejected and not receive any further offers. Setting the right asking price starts with researching homes and the local real estate market. How long has the home been on the market? What is the condition of the property? Are there any major repairs needed?
Looking at real estate comparables — properties that have recently sold similar to the property you want to buy — can help you determine how much to offer and whether the seller's asking price is fair. These properties should be comparable in:
Location Number of rooms Site area Year built Condition Features
While you can gather comparisons yourself by browsing various real estate websites, your best source of up-to-date information is a real estate agent. They have access to the MLS, the knowledge and experience to find out accurate listing prices for homes in the area.
Negotiate the best deal
Once a seller receives an offer, they can accept it, reject it, or make a counter-offer. If a counter-offer is made, they have the opportunity to begin negotiations.
If the seller wants to move in soon, you can offer a faster settlement process. Show the seller that you're flexible regarding the settlement date and specific terms of the home purchase. Another option is to negotiate settlement costs. In exchange for lowering the purchase price, the seller can cover some of the buyer's closing costs to move the sale forward.
Again, a real estate agent is invaluable here. They often know the history of the home. Plus, real estate agents are very experienced negotiators and have spent years honing their craft. They can help you find the right approach to get the best price for you and maximize your chances of success.
Complete the sale
The final steps in the home buying process are signing and inspection. Once both parties are happy with the terms of the offer, the closing process begins. In New York, it is common for the seller's attorney to set up an escrow account to keep the transaction safe. The chosen attorney will hold all funds, assets, and documents for both parties until the transaction is complete.
Next comes the home inspection. A reputable home inspector will assess the home and check its structure, roof, doors, windows, HVAC system, plumbing system, and electrical system. If any major issues are found with the condition or functionality of the home, don't hesitate to renegotiate with the seller.
On settlement day, your down payment and closing costs will be paid up front. Be prepared to sign several documents, such as the deed, transfer tax documents, and settlement disclosure statement (if you took out a mortgage when purchasing the home). Once the transaction is complete, your Staten Island property is yours.
Tips for Buying Homes for Sale in Staten Island, NY
Now that you have an overview of the process, here are some pitfalls and tips that first-time buyers aren't necessarily aware of.
Find a lender
The first lender you meet with shouldn't be your only lender. Consider at least three potential lenders before committing to a specific lender. To compare loan offers, request a Loan Estimate. This three-page document provides estimates of your monthly payments, interest rates, closing costs and other loan terms.
Beware of hidden costs
One of the biggest aspects of the home buying process that first-time home buyers find confusing is the hidden costs. Beyond the down payment, earnest money, and mortgage payment, there are many other costs involved in buying a home.
Home inspection fees, appraisal fees, and title insurance are just some of the fees that will be included in your settlement costs, and they may be a mix of one-time and ongoing costs. These common homeownership costs include repairs, utilities, maintenance, and HOA fees.
On a budget
It's easy to get swept up in the excitement of buying your first home, and while it's natural to get emotionally attached to your home, it's best to stick to a budget and avoid spending more than you can afford.
Don't skip the final walkthrough
One of the most overlooked steps in the home buying process, the final walk-through is crucial for buyers. This final inspection of the home (usually done 24 hours before closing) ensures that the property is in the condition you expect. If the seller agreed to make any repairs after negotiations, these repairs should be clearly visible when you walk through the home.
Buy Staten Island real estate with Casandra Properties, Inc.
Realize your real estate dreams with New York's top-class real estate team. Since 1979, Cassandra Properties, Inc. has been redefining New York real estate through in-depth local market knowledge, superior client representation, and innovative strategies. Leading the top-class team is Cassandra Zappala, an industry veteran and one of the first female brokers to specialize in commercial real estate on Staten Island.
When you purchase a home with Casandra Properties, Inc., you can expect exceptional real estate services from the beginning to the completion of the home buying process.
Ready to start searching for the perfect home for sale in Staten Island, NY? Contact Casandra Properties, Inc. by calling 718.720.0126. You can also leave a message at info(at)casandra(dotted)properties.