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I just found out that a unit i made an (accepted) offer on is going to have a tax increase of $ 434 per month.
I was NEVER told that the building had a tax abatement, i had to investigate, $ 434 is significant, i wish i would have offered less. No contract has been signed. Apt has been on the market forever.Thought?
That's easy. Reduce your offer and either let them accept it or walk away. (Assuming, of course, this increase is happening in the near future, not ten years down the road). A verbal offer is not binding. If this is an imminent increase, it was totally dodgy of them not to inform you.
Yes the abatement ends this year
if you still want it with the increase, figure out how much $$ that would be on a mortgage and deduct from the new offer.
did someone tell you this or did you have to dig it out?
Listen, it's up to you and how much you want this particular apartment--but it would be a deal breaker for me. I suppose it depends on the other numbers, too. On a multi million dollar apartment, maybe that isn't a big adjustment. On a half a million dollar apartment, I imagine it's significant.
offer 130k less or so which is the mortgage equivalent at 4% of that monthly increase
and add another 25k for punitive damages
Do you make more than $250,000 per year? If so you are a millionaire or billionaire, and you should want to pay a higher amount of property taxes than your secretary, so no reduction in price as a result.
i bet you had a buyers' broker, too--if you did you had a dope--wait i already said that--sorry
check acris to be sure their numbers are correct
and like others said, lower your bid and walk if they dont get real close to your new num
I met the original sponsor by coincidence at another open house and i called him as soon as i made the offer to get his opinion- He's the one who told me about the imminent increase
Then i asked the broker- Otherwise i would have never known until after signing the contract
And yes- I had a buyer's broker haha
well, i hope not..i hope your lawyer would have told you of the abatement...perhaps not if you were to use a lawyer recommended by your broker...a lawyer who would be reticent to scuttle the deal of a broker who refers him biz
sidebar: never use a lawyer referred by anyone who has a stake in your deal
big message advocate for yourself--advocate for yourself--search listings here--come here and ask questions--like how to look at the taxes---google acris and search the property by address and you can see all you need
can you even with the abatement in place?
7, you would not have signed a contract as your attorney, with 1/2 a brain, should catch this while doing due diligence
Half the brokers in this city have no idea how tax abatements work.
Any condo building less than 10 years old one should be deligent and not expect a seller's broker to just volunteer the info. In a perfect moral world...sure.. why not, but we dont live in one.
On the flip side,accepted offer is not in contract so in the same moral vein you can reopen negotiation.
$434 a month is worth around $90K of mortgage on a 30 year at 4%. A 30 year mortgage represent the most "normal" form of mortgage, not th 5 , 7 year ARMS or legs.
So the neighborhood of $90K is your target.
Of course, the seller is not obligated to oblige.
If you really want the apartment, present your case on paper, showing the schedule of a 30 year mortgage for 90K at 4% and it's monthly payment.
Approaching a slower demand time of year so...who knows.
During this negotiation make an appointment with your buyer's broker to see another apartment in the meantime. Brokers hate the smell of a dying deal and you'll find those two (seller and buyer brokers) thick as thieves trying to get the deal done.
truthskr, I'd say more than half. Much more. Plenty of attorneys don't either.
not sure it's that they have "no idea"--it's that they'd prefer the buyer have "no idea"--and last thing a RE lawyer wants is a rep as a deal-scuttler or slowerdowner
abated properties are often way over-priced--that is, if one does comps with unabated that take into acct the awful evolving math
love the tactical advice, tskr--death stench motivates!
classic strategy by seller/seller's broker. withhold information, get a bidder in who often does not have another apt they fell in love with, reveal information, bidder gets mad but decides the cost of backing out (emotionally, effort-wise) is not worth it and they decide they can deal with the higher cost.
yep....kinda like the car saleman trying to slide by the lease add-ons:
"damn...didn't realize this one had undercoating. i can't take the undercoating off. it's attached to the car. but your payment will only go up by 31 dollars and 23 cent a month. what's the big deal? you pay that much for dinner at McDonald's."
Bjw, that's just the ones that know nothing, add another 30% that think they understand it. :)
I think a nyc RE attorney not knowing and understanding would be criminal and grounds for malpractice.
Yikes, I have enough borker friends to know their hopes, dreams, fears, and achillies heel.
I was actually in the exact same situation 2 years ago. I made an offer on an east village apt with stellar outdoor space. It had somewhat high monthlies and had one last raise to go, another $375 a month. My offer included this reference and my arguments at the time likely helped kosher the subsequent sale to the next buyer which was fine, 2 things I really hated about it was the block and that neighborhood is abysmal for parking garages, my car is an extreme necessity.
One other quirk, the mechanical room on the roof was converted to a third bed and bath, a great plus on the roof but no C of O.Not that big a deal to me. Could still call it a 2 bed and 2 bath.
Point is ,it was a blessing in disguise, found my apartment 2 months later.
I disagree Crescent, your giving too much credit.
THe broker likely doesn't know the info.
The broker asked the seller what's the monthly and put it up, maybe verified with a 6 month old statement.
Now should Seven7 walk away from this deal, will the broker update the monthly for future reference? No not likely.
Anyway, still buyer's responsibility to verify.
well, ok, seller is dirtbag, not seller's broker. I listed both given the possibility.