What’s it like to buy a home in upstate NY?

Whether you’re a city dweller looking to buy a weekend home upstate, or someone hoping to make the transition to being a full-time upstate New York resident, navigating the world of real estate in these parts can be a bit tricky. In addition to the normal pains associated with buying a home, upstate New York has a specific set of rules and regulations that make the process slower, and more complicated. The good news in all this, is that buying a home upstate—whether that’s in Kingston, Woodstock, Saugerties, Rhinebeck, or somewhere else entirely, it’s a solid investment that can only appreciate in value over time. Here are six things to know about buying a home in upstate NY, plus all the details on what to expect as you navigate the process. 

1. What’s it like to buy a home in upstate NY?

So you finally found the right home and made an offer on it. Congrats! But you’re probably wondering, now what? The fact is, buying a home in upstate New York is a lot like buying a house anywhere else, with a few big caveats. For one, things move a lot slower. 

While you may be used to fast document turnaround times and reaching professionals (like your home inspector or title company) quickly via phone or email, now’s a good time to remember: This isn't the big city, and small town life is, well, slower. But that’s part of the appeal right?

The truth is, small upstate towns in counties like Ulster, Dutchess, Sullivan and Columbia are completely overwhelmed when it comes to working through the paperwork of home sales. So now’s a great time to embrace that small town lifestyle you just made an offer on, and get used to the fact that every step of this transaction will likely take a bit longer than what you’re used to. 

2. Navigating the ‘non-binding’ period 

Another thing to keep in mind about buying a home in the Hudson Valley is that you might have to deal with something called a non-binding purchase offer. This essentially means that even after your offer is accepted by a seller, it’s not legally binding. In other words, if a higher offer comes in, the seller may decide to switch to that one. 

This can feel very nerve-wracking for buyers, but just remember, the non-binding period doesn’t last forever and during this time you’ll be plenty busy completing a checklist of due diligence items (like completing your inspection) that will make the time fly by. Also, you don’t put any money into escrow during this period, simplifying matters in case something comes up that makes you want to walk away.

3. Completing a home inspection

Like we mentioned, this non-binding period is the time to do your own due diligence on the home. Hire a home inspector you trust, as this step is a crucial bargaining chip and one of your biggest protections as a buyer. If your inspector finds something seriously wrong with the home (or even minor but costly fixes) you will be notified in the inspection report and able to negotiate a change in your offer based on these findings. 

Not sure where to start with hiring a home inspector? Your real estate agent can help. 

4. Signing the contract and entering escrow

After any post-inspection negotiations are completed, it’s time to sign the contract. This officially gets you out of the ‘non-binding’ period and into a legally binding contract—in other words, one step closer to owning your home. 

Both parties will sign the contract and it’s during this time that you’ll be responsible for making your down payment. If you need to move some funds around to prepare for this payment, plan on doing so a few weeks before the contract is scheduled to be signed. 

5. Getting ‘under contract’

Once you’re under contract, your lender will put your file into underwriting and order an appraisal. This is a standard practice that helps banks ensure there is adequate collateral (ie. the value of the property) to back your mortgage. 

During this time, your attorney will also order the title search. The title guarantees ownership of the home, and will be signed over to you at closing. Keep in mind that both of these processes take about three to four weeks to complete, and if they don’t overlap perfectly, may even take a bit longer. 

6. Closing 

You’ve made it! Time to close on your house. This process will look a bit different depending on how you plan to pay for your home. If you’re paying in cash, the closing can be scheduled as soon as the title report comes back clean. 

If you’re financing the home with a mortgage, you’ll need to wait on a “clear-to-close” notice from your bank, which is contingent upon a clear title, satisfactory appraisal, and final loan approval. A few other checklist items go into this step, but those are the big ones to be aware of. 

Just before closing, you and your real estate agent will schedule a final walkthrough to verify that the condition of the home hasn’t changed since your last visit, and also that any previously agreed-upon repairs have been completed by the seller. 

Once these items are done, you’ll meet your seller around the closing table, sign your names more times than you ever have before and voila—you’ve bought a house upstate!