Buying a Property in New York as a Foreign Citizen
Foreign buyers represent a very important segment in the real estate market in the United States. This guide offered by Fieldbridge Associates LLC , will help you as a foreign buyer get started with everything related to buying a property in the United States. Consulting with an experienced real estate company, broker, accountant, attorney and mortgage broker is highly recommended, as your personal situation may require specific guidance. If you need a recommendation, the Fieldbridge Associates LLC team will be happy to recommend you to a professional within our trusted network.
How the Real Estate Industry Works in the United States
How a property is purchased in the United States varies from state to state. In this guide, we are going to evaluate how real estate transactions are carried out in the state of New York. Fieldbridge Associates LLC is a real estate and apartment management company based in Brooklyn, New York. The company specializes in assisting buyers with the purchase of New York real estate as well as foreign investors in New York.
MULTIPLE LISTING SERVICE (MLS)
In the United States, Real Estate Information including listings of properties for sale is shared by agents and brokers within different companies or brokerages using the Multiple Listing Service (MLS). Almost all real estate listings are published on the Multiple Listing Service within 24 hours of going on sale. This is done to ensure that all current listings are available for all agents and brokers to share with their clients.
On websites like ours, you can find all the properties for sale listed by all the real estate companies in the area without having to go from one company to another to see what properties they have available for sale. In most countries, there is no collaboration between agents and to find the properties available for sale you would have to go from one agent to another to see what properties they have. Here in New York you can work with only one agent and he can show you all the properties for sale.
FEES and COMMISSIONS
In most countries, it is customary to pay a fee for an exclusive agent to search for properties available to you. In the United States the commission is always paid by the seller of the property and is then divided equally between the buyer’s agent and the seller’s agent. Therefore, you as a buyer will not have to pay anything out of pocket to contract the services of an exclusive agent to help you and represent you in the purchase. Hence, it is highly recommended to work with an experienced broker who protects your interests and not those of the property seller in a transaction.
Preparing to Buy
PERSONAL IDENTIFICATION AND IMMIGRATION VISAS
You do not need to be a US citizen to buy a home in the United States. or permanent resident (green card). Anyone can buy a property in the United States. To do this, you have to prove who you usually are by submitting a copy of your passports and immigration visa (if applicable).
Buying property in the United States does not grant you a special immigration status that allows you to stay longer than your designated Visa allows. For information on investment visas, Fieldbridge Associates LLC recommends that you contact a specialized immigration attorney. You can contact us if you need a reference we will be happy to provide one.
To buy Real Estate in the United States, a foreign citizen must obtain a Personal Taxpayer Identification Number (ITIN). This is a number assigned by the Internal Revenue Service (IRS) to foreigners. To obtain an ITIN, a non-US citizen must complete, sign, and submit an IRS W-7 form to the IRS with documentation to prove the identity of the applicant.
DETERMINE THE TYPE OF PROPERTY AND HOW THE PROPERTY WILL BE USED
Before starting the search for a property, it is important to determine what type of property you want and the type of use that the property will receive. A house requires more maintenance than a condominium, but a house is generally priced lower (per square meter) than a condominium. The condominiums usually have association costs or “Home Owner Association” (for the use of the pool, general maintenance, security, gym, etc.) that the houses do not usually have.
Some things to consider before starting your property search are:
· Will this be a vacation home?
· Can this property be used to generate rental income?
· Can this property be purchased for a short term while my children are studying in the United States?
· Is this an investment for the long term and the main objective is capital appreciation?
Buying Property
WORKING WITH A LOCAL AGENT
As a foreign buyer, it is very important that you find a local professional to work with you and with whom you feel 100% comfortable. You should look for an agent who is professional, experienced in working with foreign buyers, friendly, and willing to guide you through the buying process. Consider the time difference from your home country and find someone willing to call you in the middle of the night or after business hours if that’s what is needed. On the other hand, honesty, reliability and integrity are critical attributes that the agent must have to represent him in a transaction.
It is important that you use the services of an agent that represents you exclusively as a buyer. This will protect your interests and not the interests of the seller. In NYC, it is standard practice for two real estate agents to be involved in the transaction; one will represent the seller, while the other will represent you as the buyer. There is no cost to you as a buyer to hire the services of a real estate agent as the commission is always paid by the seller of the property.
