Planning to buy a house in New York this year?
With its iconic urban landscapes and world-class cultural attractions, New York is an appealing choice for your next home. Whether you're considering buying a house in New York City, Buffalo, or Rochester, it's important to start your search with some knowledge of the local housing market.Buying a house in New York can feel stressful — it’s a big financial decision. That’s why we created this comprehensive guide about how to buy a house in New York. This guide will help you simplify the process, save time and money, and find your next home in the Empire State.
⚡ Get started: Match with top buyer’s agents near you and get cash back at closing.
1. Assess your financial readiness
Before you start house hunting in New York, it’s crucial to understand the state of your finances and what you can afford in a home.
Save for a down payment
While some loans allow down payments as low as 3.5% (FHA) or even 0% (VA), a larger down payment can reduce your monthly costs and help you avoid private mortgage insurance (PMI). 20% is the recommended down payment for home buyers. For a median value New York home, that would be around $111,300.
If you can’t afford a 20% down payment, you have options! Consider choosing an FHA or VA loan, or check out some of New York’s down payment assistance programs.
Check your credit score
Your credit score plays a vital role in determining your mortgage interest rate and loan options. Most lenders consider scores above 740 to be excellent, while scores below 620 may make obtaining a conventional mortgage challenging.
| Loan | Down payment | Credit score requirement |
| Conventional loan | 20% or <20% with PMI | 620 |
| FHA loan (Higher down payment option) | 10% | 500 |
| FHA loan (Lower down payment option) | 3.5% | 580 |
| VA loan | 0% | Varies by lender, but usually 620 |
2. Compare New York down payment assistance programs
If you’re struggling to afford a down payment, New York offers several programs to help homebuyers with this cost.
| DPA program | Max household income | Max purchase price | Credit score |
| First-Time Homebuyer Program | $49,700 - $93,700 | Varies | Varies |
| HOME First Time Home Buyer Grant Program | $66,000 - $124,450 | $252,000 | 680 |
| Home Acquisition Program (HAP) | $62,850 - $118,500 | $247,000 - $474,000 | Varies |
| Reparative Housing Justice Fund (RHJF) | $62,850 - $118,500 | Varies | Varies |
Details
- Down payment amount: The deferred loans are made in amounts up to $10,000 to assist with closing costs/down payment.
- Max household income: $49,700 - $93,700
- Max house price: Varies
- Credit score: Varies
- Provider: City of Binghamton - Housing Division
- Homeowner education required? Yes
- Available statewide? No
- Only available to first-time home buyers? Yes
Overview
The First-Time Homebuyer Program is a Forgivable loan providing up to $10,000 on a 5-year term. The borrower must be a first-time homebuyer and contribute $1,500 towards the purchase. The borrower must maintain the purchased property as their primary residence and complete homebuyer education through a HUD approved provider. See program guidelines for further details.
Details
- Down payment amount: The level of assistance varies depending on the individual needs of the applicant such as income, purchase price, type of mortgage etc.
- Max household income: $66,000 - $124,450
- Max house price: $252,000
- Credit score: 680
- Provider: Albany County Rural Housing Alliance, Inc.
- Homeowner education required? Yes
- Available statewide? No
- Only available to first-time home buyers? Yes
Overview
First Time Home Buyer Grant Program assistance varies depending on the individual needs of the applicant such as income, purchase price, type of mortgage etc. Borrower must be a first-time homebuyer. Maximum purchase price cannot exceed $252,000. Home being purchased must be the principal residence of the buyer. Mortgage depreciates over time and is forgiven after 10-15 years. Length of the lien period varies with the grant amount. See program guidelines for further details.
Details
- Down payment amount: Maximum down payment assistance cannot exceed $14,900.
- Max household income: $62,850 - $118,500
- Max house price: $247,000 - $474,000
- Credit score: Varies
- Provider: Albany Community Development Agency
- Homeowner education required? Yes
- Available statewide? No
- Only available to first-time home buyers? No
Overview
The Home Acquisition Program (HAP) Program will assist qualified homebuyers in purchasing a home by providing up to $14,900 toward down payment assistance and/or closing costs assistance. Assistance provided for the purchase of the property shall be in the form of a pro-rated deferred loan with a maximum term of 5 years. Borrower must occupy as his/her principal place of residence. See program guidelines for further details. See program guidelines for further details.
Details
- Down payment amount: The Reparative Housing Justice Fund (RHJF) offers grants of up to $10,000 to assist Black, first-time homebuyers purchase a home in the City of Albany, and up to $5,000 if the home is purchased in the cities of Amsterdam, Rensselaer, Schenectady, Troy or Watervliet.
- Max household income: $62,850 - $118,500
- Max house price: Varies
- Credit score: Varies
- Provider: Affordable Housing Partnership (AHP)
- Homeowner education required? Yes
- Available statewide? No
- Only available to first-time home buyers? Yes
Overview
The Reparative Housing Justice Fund (RHJF) is a grant providing up to $10,000. Funds are intended for first-time homebuyers who identify as Black/African American. See program guidelines for further details.
3. Find an experienced New York real estate agent
Finding the right real estate agent in New York can make a significant difference in your home-buying journey. An experienced buyer’s agent can help you navigate New York’s real estate market, find homes that fit your criteria, and negotiate offers with sellers.
New York’s real estate market varies considerably by region. An agent who specializes in Long Island might not be the best choice for a home in the Hudson Valley. Look for agents who:
- Have at least 3 years of experience in your specific target area
- Can discuss recent sales and market trends in your desired neighborhoods
- Understand local zoning laws and development plans
- Have experience with your property type
- Are familiar with local flood zones and environmental considerations
- Have positive reviews online from other buyers
It’s also a good idea to confirm that your agent is licensed through the New York Department of State before working with them. You can verify this online by entering their name on the New York Department of State license lookup.[5] Once you’ve found 2-3 agents you like, interview them thoroughly to confirm which one is the right fit for you.
4. Get pre-approved for a mortgage loan
Getting pre-approved for a mortgage is a crucial step that should be completed before you start viewing homes with your agent. A pre-approval letter shows sellers you're a serious buyer and helps you understand exactly how much house you can afford.
You’ll have the option to choose a local lender in New York or a nationwide lender. Local lenders often have a more in-depth understanding of the New York real estate market and provide more personalized service, while national lenders may offer more competitive rates and faster processing times. Compare rates from 3-4 lenders and try to get quotes within 14 days to minimize the effect on your credit score.
To get pre-approved, you’ll likely submit the following information:
- Last two years of W-2s and tax returns
- Recent pay stubs (last 30 days)
- Bank statements (last two months)
- Investment account statements
- Photo ID and Social Security number
- Proof of New York residence
- Employment verification
- Explanation of any credit issues
- Information about current debts
Your pre-approval letter will typically be valid for 60-90 days and show your maximum loan amount. Now you can start the fun part: house hunting!
5. Begin your home search
It’s time to begin actively searching for houses in New York. Start your search by narrowing down on a location, weighing factors like affordability and quality of life.
The most affordable cities in New York
Several New York cities offer excellent value for homebuyers:
- 🥇 Hornell
- Median home value: $107,901
- Property taxes: $2,523
- Median household income: $53,542
- 🥈 Johnson City
- Median home value: $134,047
- Property taxes: $3,801
- Median household income: $54,014
- 🥉 Binghamton
- Median home value: $162,331
- Property taxes: $3,922
- Median household income: $58,100
Quality of life in New York
Out of the top 50 metros by population in the U.S., New York City ranked #11 in desirability, while Buffalo ranked #39.Quality of life can look different for everyone, but here are some of the top things to consider when looking for a home.
- Community features, including shopping, parks, and medical facilities
- City infrastructure, including school district ratings, highway access, and public transportation
- Natural hazards, like flood, sinkhole, and tornado risks
- Available property types, such as single-family homes, townhouses, and condos
Attend house showings in New York with your agent
Once you’ve chosen a desired location, set a budget, and have a list of preferred house features, your real estate agent will find homes on your local Multiple Listing Service that best meet your needs. You can also do some research yourself by using one of the many house-buying real estate websites that lets you search for homes.
After you’ve selected the homes you’re interested in, you should tour them in person with your agent.
⭐ House showing tips for buyers
- Take notes, photos, and video during the showing to reference later.
- Ask about the age of major systems (HVAC, roof, water heater).
- Listen for neighborhood noise.
- Check ceilings, floors, and basement (if applicable) for water damage.
- Discuss your opinions with your agent after you’ve left the property.
Once you’ve found a house that meets your criteria, it’s time to make an offer!
6. Make offers and negotiate
Making an offer on a house requires strategy, preparation, and creative thinking. You want your offer to be attractive to the seller but also keep your costs down. Striking this balance can be tricky, but your real estate agent can help you navigate the process.
What makes a strong offer in New York?
- Purchase price: Include the amount you're willing to pay, supported by comparable sales data. Your agent will help you analyze recent sales of similar properties in the area to determine a competitive offer price.
- Earnest money deposit: In New York, earnest money typically ranges from 1–3% of the purchase price. For the median home value in New York, that would be around $4,773–$14,320. This shows the seller you're serious about the purchase.
- Pre-approval letter: Many sellers won’t consider your offer if you don’t have a pre-approval letter from a lender.
- Contingencies: Contingencies can protect you in case things don’t go as planned. Consider including an inspection contingency and appraisal contingency to protect you in case these reports reveal issues.
- Closing date: Include a realistic closing timeline that works for both parties. In New York, 35 days are typical, though this can vary based on financing type.
How to negotiate your offer effectively
If the seller accepts your offer, you can move forward to the due diligence process. If the seller comes back with a counteroffer, you’ll have a chance to negotiate the offer terms.
Keep in mind that the home price isn’t always the most important factor. There are several other factors you can negotiate with the seller, including:
- Closing costs: Instead of negotiating the price down, ask the seller to cover some closing costs. This reduces your out-of-pocket expenses while keeping the sale price (and the seller's net proceeds) higher.
- Buyer’s agent commission: According to the 2024 NAR lawsuit, buyers are now responsible for paying the buyer’s agent commission to their agent. However, most sellers will consider paying this cost to incentivize buyers.
- Repairs: Rather than requesting repairs, negotiate a credit at closing. This gives you control over the work and often simplifies the transaction.
- Closing timeline: If the seller seems eager to sell quickly, consider offering an expedited closing date.
Remember that successful negotiation often requires give and take from both parties. Stay focused on your primary goals while remaining flexible on less important details. Your agent's experience in your local market will be invaluable throughout this process.
7. Complete due diligence
After your offer has been accepted, you’ll enter into the due diligence period, which helps you understand exactly what you’re purchasing and identifies any issues before closing.
Home inspections in New York
We highly recommend getting the home inspected, unless you specifically waived the inspection contingency in your offer. A home inspection helps identify any issues with the home, ranging from minor code violations to major structural issues. In New York, a home inspection costs around $259-$414.[6] The buyer is responsible for paying for the home inspection.
- Snow load damage to roofs (upstate New York)
- Deterioration in aging buildings (urban areas)
- Coastal flooding damage (shoreline regions)
- Ice dam formation and water damage (northern areas)
- Basement flooding and seepage (common issue statewide)
It would also be a good idea to order termite and radon inspections for your potential New York home. A termite inspection costs around $171 in New York.[7] You can usually order a free or discounted radon test from the New York government, or your inspector will perform one during the home inspection.
Home appraisals in New York
Your mortgage lender will order a home appraisal to make sure the property’s value matches the amount that they’re lending you. A professional appraiser will visit your potential home, evaluate its condition compared to similar, recent sales in the area, and provide a detailed value report. A home appraisal costs around $259—$420 in New York.[8]
If the appraisal comes in low, you have a few options:
- Renegotiate the purchase price with the seller.
- Make up the difference in cash.
- Challenge the appraisal with additional data and request a new one.
- Cancel the contract (if you have an appraisal contingency).
Underwriting process in New York
While inspections are ongoing, your lender will begin the underwriting process to officially verify that you can afford your mortgage. They'll typically require:
- Updated bank statements
- Recent pay stubs
- Tax returns
- Source of down payment funds
- Insurance quotes
During this time, avoid making large purchases, changing jobs, or opening new credit accounts, as these events could delay the underwriting process and postpone closing. Stay in regular contact with your loan officer, and don't hesitate to ask questions about anything you don't understand.
8. Close on your new home
You’re almost at the finish line! Before closing, perform a final walk-through of the home with your agent to make sure everything is in the expected condition. You’ll want to verify that all agreed-upon repairs are completed, no new damage has occurred, all included items remain in the home, and all systems and appliances are working properly.
If you come across any issues, your buyer’s agent will communicate with the seller’s agent to resolve the issue.
Attend the closing
As the buyer, be prepared to sign a ton of documents during closing! You’ll typically meet at the office of a title company, real estate attorney, or lender to sign the documents. The seller may not be present during closing, as they can do their part electronically.
The closing package typically includes:
- Deed
- Mortgage/Deed of Trust
- Settlement statement
- Affidavits
- Tax documents
- Insurance documents
As you sign each document, don’t be afraid to ask questions to your agent, lender, or attorney if anything is unclear. Make sure that all names and property details are correct, and keep copies of all your signed documents.
Yes! In New York, you're required to have a real estate attorney handle your closing. This is a crucial part of the home-buying process in New York, where real estate laws and procedures are particularly complex. Your attorney will review the contract of sale, conduct title searches, prepare closing documents, and protect your legal interests throughout the transaction. They'll also coordinate with the seller's attorney, address any title issues that arise, and ensure all necessary documents are properly filed.
Pay buyer closing costs
Once you’ve signed the documents, you’ll pay your portion of the closing costs. New York buyer closing costs include:
- Buyer’s agent commission: Unless the seller agreed to pay the buyer’s agent commission, you’ll be responsible for this cost at closing. In New York, the average buyer’s agent commission is 2.64%.
- Lender-related fees: Be prepared to pay some costs associated with the underwriting of your mortgage loan, processing fees, and rate-lock fees.
- Property-related fees: As the buyer, you’re responsible for covering the cost of the home inspection, appraisal fee, and other property inspection costs.
- Title-related fees: You’ll be charged for the title search, recording fees, and any title insurance (if applicable).
- Prepaid costs: You’ll typically pay upfront for homeownership insurance, property taxes, and HOA dues (if applicable).
In total, buyer closing costs are typically between 3% and 5% of the purchase price in New York. That would be $16,689-$27,815 on the median value home in New York.
Keep in mind that buyer closing costs can vary by buyer and property, so be sure to speak with your agent, escrow agent, or real estate attorney to understand your financial responsibility.
After closing, your agent will give you the keys to your new New York home!
✅ Post home-purchase tasks in New York
- Collect physical and digital copies of your closing documents.
- Set up utilities (water, electrical, gas, etc.).
- Change locks and access codes for security.
- Update your address with the USPS.
- Be prepared for your first monthly mortgage payment (usually due at the beginning of the next month).
Should I buy a house in New York?
With the real estate market constantly shifting, it’s difficult to know when it’s smart to buy a house in New York. A real estate agent can help you understand current market conditions, assess your financial readiness, and get you started on your journey to purchasing a home.
According to Zillow, New York is currently experiencing a seller's market.[1]
In New York, the median home sale price is $556,300.[2] That’s 15.71% lower than the New York median listing price of $659,974.[3]
The median home value in New York is $477,333, which is projected to rise by 2.06% in the next year.[1]
Currently in New York, houses stay on the market for an average of 86 days. That’s 20 days greater than than the national average.[3]
A faster market indicates that houses are selling quickly and demand is high. When the market moves slower, you could have more time to make an offer.
Currently in New York, there are 28,877 housing units on the market. This is 4,045 units fewer than the yearly average inventory count in New York.[3]
A low housing inventory indicates that there are fewer homes than interested buyers, which can lead to buyer competition, while a higher inventory indicates that there are plenty of homes available to choose from.
The national mortgage rate is 6.76%, which is down 2.70% compared to last month.[4]
Frequently asked questions about buying a house in New York
- Assess your financial readiness.
- Compare DPA programs.
- Find a local real estate agent.
- Get pre-approved for a mortgage.
- Begin your home search.
- Make offers and negotiate.
- Complete due diligence.
- Close on your home.
According to a recent home buyer study, a buyer needs an average household income of $153,318 to afford a median value home in New York.
Most conventional lenders require a minimum 620 credit score.
Federal Housing Administration (FHA) loans require a minimum credit score of 500 for the 10% down payment option, and a minimum credit score of 580 for the 3.5% down payment option.
20% is what lenders typically recommend as a down payment in New York. On a typical New York home, that's about $111,300.
You can put down less than 20%, but you'll need to pay private mortgage insurance (PMI) if you do. If you opt for an FHA loan, you might qualify for a down payment as low as 3.5% or 10%.
Methodology
Our mission is to provide accurate, actionable, and practical information that will help you make better decisions about your real estate journey.
To help create this New York home buying guide, we pulled current and historical market data from vetted sources, such as Zillow, Realtor.com, Redfin, Freddie Mac, and Thumbtack. As these sources update, we refresh our pages accordingly to ensure everything is current.
We also used survey data from our homeownership studies, including:
- How Much House Can I Afford (2024)
- The Best Places to Live in the U.S. (2024) — surveyed 1,000 Americans
- The True Cost of Buying a Home (2024) — surveyed 1,000 Americans who have bought a home since 2022
