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Listing Broker on recent showing: "financials are shared and due diligence is conducted only AFTER a contract is signed, and never before."
Listing Broker on recent co-op showing: "tax deductibility? Like what you can deduct if you sell the apartment at a loss?"
Listing Broker 10 months ago on over-priced apartment "it's a STEAL. I have five people ready to offer." same broker 7 months ago: "want to let you know we have reduced the price $50,000 if your client is still looking. I can't believe the owner would price so low!!". Repeat the above four times.
Listing Broker of a semi-difficult co-op: "Post-closing liquidity? What's that?"
Re: interest rates. I've said it at least four times in my quarterly newsletter in recent quarters: "I doubt they will ever be this low." I enjoy eating Crow.
Great info NTW. Could not have written it up any better and I wouldn't expect anything less coming from you.
Tough to determine just how spacious this apartment is with no floor plan and fuzzy photos.
Is there already a dining area in the apartment or a plan to have a dining area (not necessarily talking about a separate room)? If so, then I would go for the third bedroom.
Zero Bid: When buying from the sponsor, as a "first" owner you are allowed to rent indefinitely. I believe board approval is not required in this scenario, but am not 100% sure. If you have bought from a previous owner, the monthly sublet fee can be substantial. I believe it is 10% of maintenance the first year, 20% the second, and 30% for the third year. I do believe, however, it caps at 30%...
roygbiv: that building on the south side of 15th is going up. From what I have read and heard, it will be about 12 - 15 stories high.
And yes, the past few years have seen a tremendous increase in sponsor sales in the building. Someone knew something was coming...
You don't owe him anything. You didn't sign any documentation, the big sign outside the building says NO FEE, and the broker did not call you back after you made several attempts to reach him inquiring about moving forward on the property.
It's agents like this Joker that give us all a bad name...
Why not ask the broker for a copy of the lease?
Only thing I can add that was not mentioned above: it's a non-smoking building. Even on a balcony, there is no smoking. So the hallways may now only smell of wet dog...
Fair enough bjw. But Its true! I wish it weren't...I'd have a lot more happy buyers. And I would spend less time showing apartments.
But it's cool; I was around in 2007 at the height, 2009 when it was brutal, and now we're back to a pretty strong market due to lack of inventory. People are selective (at my price point, at least), mortgages are going to the qualified (thank god), and people are looking at property as a home instead of a commodity (again, at my average sales point). I like what I do. And I like doing it now moreso than in 2007. Then again, I worked for someone instead of myself in 2007....
I've had certain clients waiting each Spring and Fall the past two years for the "rain" to start, and it hasn't happened. History is a good guide, but the last two years have not seen the normal amount of new properties hit the market. Perhaps a healthy sales market this summer and an insane rental market will prove me wrong, but I just don't see it this Fall. If you see something you love, or can love with a bit of work, jump on it..l
Is this new development in East Harlem?
If you are against using a broker to list the property, definitely list the property on streeteasy and nytimes. Not many Manhattanites use Trulia and I agree with one of the above posters that Craigslist has lost a lot of steam for rentals since SE came along. You may also want to touch base with the listing departments of some of the big RE firms out there about getting your listing in the system as an open listing, so that the brokerage community is aware of the apartment.
Aside from the above, hiring a competent and professional broker to market the property should do the trick. The rental market is still very strong so if you have no bites it's photos, price, and/or exposure.
I like the West Village:
Pre-war, doorman, Condo. Still mind-boggling. For a Ninth-Floor apartment. I know some people in the West Village Bing and Bing condos who are very happy to see this...
What does "under budget and ahead of schedule" mean???
Agreed 1,000% with JWL. Highly desirable propert in 30 years? Even if NYC does not take the property (no guarantee on a land lease, and a land lease on city property no less), you can expect those monthlies to rise significantly. I can't see the rental market outpacing your building monthlies in BPC.
If you would like to throw money away, I am happy to provide you with my account number and routing #.
A board will never approve a plan for renovations before you are a shareholder. If you do go into contract on this property, I suggest getting the contractor to take a look at the apartment, having plans written up, and the second you close securing the necessary permits. This was you can submit the plans to the board for approval. Make sure you get the alteration agreement prior to signing - although many are generic, the alteration agreement will make note of when work is allowed, and special restrictions, and so on.
$3,500 seems a bit steep to me. Most of the attorneys I refer charge $2,000 - $2,500 and are VERY good. They are not afraid to kill deals if it's not a smart purchase for their clients.
Ten percent deposit is paid at contract signing. Additional downpayment would be paid at closing (so 15 percent additional on a 25 percent down co-op.)
Depending on the type of building you are buying in, and inspection may not be necessary. If it is a large building with an active board where minutes are recorded frequently, then between your attorneys reading of the minutes and his or her sending out of a questionnaire to management, you may be able to save yourself several hundred dollars on the inspection. This being said, plenty of my buyers have chosen to hae an apartment/building inspected for peace of mind. In NYC, this would be done BEFORE contract signing....you don't see many contracts contingent on the inspection like you do in the burbs. In a small building like a townhouse or divided brownstone, I would always suggest an inspection.
You typically have a 5-10 business day window, after the offer is accepted, to conduct the due diligence and sign the contract.
Hope this helps.
Seems like a shame to pay so much for something that will kill you.
If its scheduled for completion in 2016, figure on 2017-2018. Most likely, if this is a purchase you hold for five years, you won't be able to take advantage of the subway line yourself. But your buyer will, and that will be reflected in the re-sale value. You're getting in for good value (especially along second Avenue, facing the construction); but as noted above you have to deal with dust, noise, construction barriers, etc. But keep your options on the table - there are side streets between first and York and first and Second that have not been affected quite as much as other locations. Aside from having to cross Second Avenue, you wouldn't know they are building a subway line. In a city where it seems there is little opportunity for increase in value aside from normal trends (and I have no idea what "normal" is in Manhattan anymore), the Second Avenue subway corridor definitely presents one.
Re foreclosures - it's virtually impossible in MANHATTAN, but brooks did write NYC, which includes the outer boroughs. Not virtually impossible in the outer boroughs...
"Edwardian 5's" tend to have odd floor plans....
Sounds like the "OP" is covering a month's worth the fee, and the broker is trying to get 1/2 month's worth of a fee to round things up to 15%. Regardless, the property was advertised as NO FEE in two different listings on streeteasy, and you signed nothing with the broker stating you would pay him a fee with regards to this property. Rentals 101 for any agent: if you are going to expect a fee (even for just opening a door), get it in writing. He or she failed to do this, and he or she is most likely getting paid the OP from management. Although I resent people going around my back to get away from paying a fee, this situation does not sound like that. If it were me, I would not pay the agent a fee.
UWS_buyer: I would be happy to take a look at your property and give you a realistic idea of what it can be rented for. Please do not hesitate to reach out to me at email@example.com.
When certain studios and 1BRs are cheaper between mortgage and maintenance than your monthly rent, here in Manhattan, then yes, the rent is too damn high.
Depending on which way the apartment faces, you have the possibility of facing three different constructions zones: the 69th street Ancillary building on the NW corner of 69th and Second, a new condo being erected at 234 East 70th, or Second Avenue, which is still a mess even though things have settled down slightly over the past several weeks. Maintenance in this building also tends to trend slightly higher in this building, so pricing is softer. But for those apartments which are priced even lower due to construction consideration, there is good value there considering you will have a subway entrance a block away. But do you want to deal with a construction zone for a while?
Not always Consig. I usually give the names of 2 - 3 trusted real estate attorneys to buyers or sellers who ask; in this way, I am covered in any "conflict of interest" that may arise. Furthermore, the attorneys I refer are not deal pushers. If there is a red flag with the building or something off about the contract, they are not opposed to killing the deal or making the seller/buyer completely aware of the situation. Afterall, if I refer a deal pusher attorney, and something goes wrong down the road (even 6 months, 1 year, 5 years), I will loose that client for having referred the wrong representation.
Don't get me wrong, there are brokers who use someone they know will get the deal done regardless of the siutaiton. But they are short-sighted, not relationship-based, and (I'd like to think) in the minority.
I heard a rumor that John Carapella went to Town's new shiny office on the UES....
Not that many of us left from that old 76th Street office, huh John?
Lee Laura - same here regarding UES experience. Although my office is in TriBeCa, my wife and I still have an apartment on the UES and much of my business is in the neighborhood. I would be happy to discuss your real estate needs at your convenience. Nothing wrong with some of the supergroups mentioned above, but I offer one-stop shopping and would be the primary broker for showings, feedback, suggestions, and so on. I am also Elliman's broker specialist for a cooperative at 112 East 83rd Street. You can reach me anytime at 917-821-1194.
If nothing else, interview several different brokers. You will be able to get a better idea of pricing, and a better idea of who is the best fit for you.
Carl A. Ekroth
Julia - you are right. A buyer's broker almost always collects their commission from the seller and it is split between the listing broker and the buyer's broker. In some markets, there is a buyer's broker agreement, where paperwork is filled out and a buyer pays their broker directly. But it's extremely rare in Manhattan. Check out this link for a comprehensive list of potential costs to you, a buyer, in NYC:
it all depends on the co-op. Some will allow for gifting, even if it is 1/2 the purchase price. Some will not allow gifting whatsoever. Some will allow for guarantors and some will allow for co-purchasing. Get yourself a knowledgeable broker who knows which buildings to avoid and which would work in your scenario. If you prefer not working with a broker, be upfront about your purchasing scenario with the listing broker before making an appointment. Nothing worse than seeing a property you love and then finding out you can't purchase in that building...
However, as Matt stated, be careful about your post-closing liquidity. You want to have about two years worth of maintenance payments (and mortgage if financing) in liquid assets AFTER you close. You also want to have a debt-to-income ratio no higher than 25% (28% in certain co-ops), which does not sound as if it would be a problem if you are not financing. Also keep in mind that co-op board will look at BASE salary - so if $150,000 of your salary is bonus and commissions, and your base is only $50,000, that may be a problem. This could be overlooked if you can document several years of consistent bonus/commission.
Pusti - I've been helping buyers and sellers in the Hudson Heights/Fort George area by Fort Tryon Park for several years now, and it's a great area. The value is uncompromising, and NYC88 is right about that subway to midtown. Financial District will be closer to a 45-50 minute commute, if not a tad longer on the weekends. But so many people do not know about Fort Tryon and The Closters - it's definitely an undiscovered gem park-wise. The best thing to do if you have not explored, is take a Sunday or two to venture out and explore the distinct areas and open houses. I suggest 181st street strip and 187th strip in Hudon Heights, in addition to the area around Bennett and Overlook in the 180's and 190's. You might want to consider the Fort George area around Broadway and 193-194. You are just minutes from the A train and Fort Tryon park, and the value in this area is very good as well. Happy exploring!!
This all depends on the tenant-landlord-broker relationship, although I cant imagine one can "force" a tenant to leave during an open house. I have had sales exclusives where the tenants insisted on being present during showings and open houses, which can be difficult, but is also understandable since this is their home. I've also worked with great tenants who have slipped out for every showing or open house, even going so far as to leave fresh flowers out and lighting candles. Typically, if it looks like a tenant will insist on staying during showings, I'll ask the owner to knock off some $$$ on the monthly rent or chip in myself - this almost always does the trick.
Easy to blame the brokers, but there are sellers out there who are eager to go with the agent that gives them the highest price, regardless of comps and solid data. I have lost a few exclusives this year because the seller decided to go with the highest quoted price. When I confronted said seller with solid data (in one case her same apartment line had sold two floors above and one floor below in the past six months), I always hear the same line - "my apartment is different and Broker X agrees." Where did you get your data? What comps did that broker use to support the price?
The problem seems to lie in brokers who are too eager to inflate the price to get a listing and the sellers who turn a blind eye to the REAL DATA in the hopes that theirs will be a different sale...
I send all my commercial referrals to Adam Kramer (and yes, he does work for my company, but I would refer him regardless of which firm he worked for.) I have never received a negative complaint from my referrals and they all gush about the service he provided. He can be reached at firstname.lastname@example.org
Tell him Carl Ekroth sent you and you will be in good hands.
dmasonmd - The chiller in the building was very old and needed to be replaced - that was one of the assessments that until recently was on the books. As of now, the chiller has been replaced and one of the hopes is that this will help drive down that monthly fuel surcharge.
Ali covered all the basics with regards to the large number of apartments on the market there (although 6% is not too extreme). As has been noted in this trend, they are mostly studios and 1BRs, so it does give a buyer yet another opportunity to knock down the sales price.
But there may be some sellers that are on the market with an eye to the future:
For those apartments facing Third Avenue, there may be a reduced view/light/future construction zone across their living room/bedroom in the not-too distance future.
In the current rental market, it is not very likely a landlord will pick up any part of the fee. Things are pretty tight inventory-wise, although it has softened a bit since the peak of June & July. If you have some flexibility with a moving date, you might want to sit tight until the late fall-winter (after Thanksgiving through January/February), when the pace of rentals slows considerably and a landlord might be more inclined to pick up half or all of the fee rather than let his or her apartment sit on the market for a few months...
I wish we could just eat that elephant all at once and get this over with...I'd rather pull that bandaid off in one quick motion - it maybe more painful initially, but it sure beats a little bit at a time.
Great figures quoted on this posting, and I agree based on what I am seeing with my buyers and sellers. As an average, I have it pegged at late 2005/early 2006. That being said, it depends on the apartment and location, like always. I recently had a classic 6 co-op in a prime Village location trade for at or slightly higher than peak prices; on the flip side I had a condo in the Financial District close earlier this year for closer to 2004 levels. I have said for years how lucky we are to work/own in New York City; with limited exposure to sub-prime lending because of co-op and condo downpayment requirements, we took less of a hit. But unless something gets going with the economy and jobs, we'll trudge along for a while....
$14,000?? Most deals in NYC are a co-broke. So the buyer's broker gets half. Now we are down to $7,000. Depending on your company and experience, your split is anywhere from 40/60 to 80/20. Let's meet in the middle at 60/40. We are down to $4200. Taxes take another third and I have now made $2772 on that commission. Studios in particular are hard to move in this market: there's a lot of them out there, especially with softer 1BR prices. So let's assume that it takes 6 months to sell this studio. That's $462 per month.
Show the apartment furnished. Even if you decide to save money by skipping a broker, don't do it with staging. An empty apartment always looks smaller than than a furnished apartment. Plus, many people do not have the imagination to picture where their furniture will go in an empty space. Check out Cort - many of my clients have used them and have been very happy with their services. They deliver, unwrap, set up the furnishings, and then pick everything up when you are finished with the staging.
I have never had a client complain about Manor Moving and they have been great with me as well:
PS - if this was an exclusive, chances are the agent knew what was going on, unless the new buyer was a neighbor or friend directly approaching the seller. Even if this happened, chances are the seller kept the agent in the loop..
What was your agent doing during this time? He or she should have been making a lot of noise as well over the lack on a contract after a few days of acceptance....
Flarf - next time you are involved in a deal don't wait 30 days to get a contract. That is your first major red flag. If a few days pass after the offer is accepted, and you don't have a contract, start barking LOUDLY. My sellers get a contract out within 24 hours of an accepted offer, and oftentimes sooner. Being patient for 30 days may have helped the seller in that he was able to entertain other offers and negotiate while keeping you on the sidelines...next time put pressure on during the first few days of the deal!!
Agree with Mattingly - if you are financing, definitely speak to your banker or mortgage broker in early 2012 to make sure all your ducks are lined up and there are no surprises when you find the right place down the road....
Wow. Just wow. Does it get rented or sold first?