Tips for Buying a Starter Home in NYC: br br Save Money with a Hauseit Buyer Closing Credit: br br Buying a starter home in NYC typically means purchasing a smaller condo or co-op apartment with up to one bedroom. br br What Is a Starter Apartment? br br A starter apartment is typically a studio, 1 bedroom or junior 4 condo or co-op apartment in a multi-unit building in NYC. Due to high housing prices in the NYC real estate market, it’s typically impossible for the average first time home buyer to be able to afford anything larger, like a two or three bedroom apartment. br br For those on a budget, buying a starter home typically involves purchasing a small studio in a co-op building in a cheap part of town. For example, many parts of the Upper East Side have co-op buildings full of cheap studio apartments that make for great starter apartments. br br br What Is the Best Type of Starter Home? br br The best starter home is one that is flexible and adaptable to your changing lifestyle needs. Ideally, it’ll have enough room for a baby crib if you have an unplanned pregnancy. And if you have an unplanned infant, your apartment better have a washer and dryer installed. Just imagine having to haul dirty diapers to the laundromat down the street instead! br br If we had to choose, the perfect starter home would be a junior 4 apartment with a usable 2nd bedroom, even though it won’t be big enough to be considered a legal bedroom. Remember that junior 4 apartments are by default cheaper than true two bedroom apartments because the 2nd bedroom doesn’t meet the requirements for being a legal bedroom in NYC. br br br Should I Buy a Starter Home vs Renting? br br Generally speaking yes; however, you should do a careful analysis of how long you plan on staying in the city and when you’ll need more space because of life changes. Furthermore, your analysis should consider your future earnings potential and whether you’ll need to sell your apartment in order to buy a new, larger one. br br The primary concern in all of this are closing costs in NYC which can eat up substantial amounts of your home equity. br br br Common Starter Home Buying Mistakes br br Not having representation – Having a buyer’s agent is free and there’s never any sort of exclusivity. Sellers typically pay a fixed commission regardless of whether it’s split between a buyer’s agent and the seller’s agent. br br Not getting a buyer closing credit – not only are the services of a buyer’s agent free, but you can also get part of the buyer agent commission for yourself through a completely legal and tax free buyer closing credit.