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Wow, a lot of misinformed opinions here. This is not a straight forward issue. Some people can buy direct, some of the time. Some people can sell direct some of the time. FSBO listing are out there every day. Do they move faster? No. Dp they get more cash in the pocket of either the seller of the buyer? Most of the time no. The bottom line is that sellers cannot service a sale effectively. Most work and cannot show or market their property when buyers want to see it. A listing on Streeteasy is one thing, servicing that listing is another. On the buy side, how many buyers want to play tel tag day long to get things done? Buyers broker is not a facilitator - he is the buyer's best advisor. If the buyer feels he can do all on his own, let him proverbially "break his leg". But most buyers either lack of market knowledge or confidence or time to make the buyer process effective. Sure, you can search all you want but a broker will cut to chase faster and more effectively. Forget the focus on commissions. Every seller has a contractual duty to pay a commission. A co-broke or no co-broker does not alter that obligation in any way without consent of all parties involved. In the end, a seller may chose to give up few dollars on his net for a c-broke deal that he knows all parties have incentive to close than deal with a buyer who may be there one minute and be gone in another.
I didn't read this whole thread but I really agree with this last comment. And in fact, I very much regret my decision of working with a buyer broker. After a few weeks of working together, the broker I worked with had episodes of antagonizing me with excessive criticism using an abusive tone and various tactics to make me feel isolated, "abnormal" (his word) and bad for things like asking too many questions, or being 10 minutes late (which I warned him would happen on the first day.) Additionally I made an offer with an agent who had refused to cobroke. But that man had manipulated me so hard to swear my loyalty to him, that I felt unethical about cutting him out of the picture for the no-cobroke apartment and agreed to pay him 2% separately, half of which I will now pay to someone else at his company since I'm now refusing to work with him. The second agent is also cold and condescending, doesn't get back about specific questions, issues or requests. I walk away from almost every transaction feeling pretty miserable. And I know that if I want an answer, I can easily pick up the phone and call the seller broker.
In the meantime, I was able to negotiate completely without any of their help, and found that calling the seller-broker directly is faster and more efficient. Dealing with the brokers has felt not only like a game of "telephone," it's also created delays, and made me lose out on an apartment I wanted. I also believe that for reasons of professionalism, the buyer broker can't be as candid with the seller broker about situations or requirements as you can be directly. I suppose that if you're trying to slyly get the best deal, a broker might be better at negotiating things like comps, or helping reduce the anxiety of the board meeting (though half the advice I got was counter-productive.) If I could do this again, I would only hire a broker in the last minute if I ended up having to deal with a seller broker I didn't trust. But my advice is really that you'd save more time doing your own research, and working as close to the seller as possible. If you know what you want and what your price is, there are enough laws (plus the help of an attorney) to keep any major breaches from happening. Moreover, if the seller-broker is getting your 3%, they become half buyer broker which may just work in your favor for reasons stated above and others perhaps as well.
OP - there are "potential" advantages to not using a broker if you know what you are doing. These advantages may or may not get realized from deal to deal, but don't let brokers convince you that there are no advantages.
One of the advantages is that the listing agent will be MUCH more motivated to convince the seller to accept an offer from an unrepresented buyer since they will make tens of thousands of dollars more by keeping the full commission. At the very least, you increase the chance of your offer being accepted, and depending on how unscrupulous the listing broker is, you may save a substantial amount of money as well. Assuming no other offers on the table, an unscrupulous listing broker(there are more than the industry likes to admit), may very well push the seller to accept an offer from an unrepresented buyer even if it is significantly less than what the broker thinks the seller can get because the broker can still come out on top financially (potential breach of fiduciary duty, but almost impossible to prove, so likely to happen). A really, really naughty broker may even keep higher offers from the seller in order to get the unrepresented deal done (major breach of fiduciary duty so unlikely to happen, but you never know). Even a scrupulous broker, when faced with an offer from a represented buyer and a slightly lower offer from an unrepresented buyer, can renegotiate his commission with the seller so that they can each make a little more by accepting the slightly lower offer from the unrepresented buyer - Everybody wins!
If you have the time to look, compare, and negotiate yourself, there is little need for a buyer's broker and you do have potential financial advantages.
Laura, you need to find a good buyer's broker. Ours showed us only exactly what we requested. She looked for 6 months and only sent us to 3 places. She pushed us past our comfort level financially (but well within our affordability level) so we could get our place. We would not have found it on our own because the asking was over our budget, and we would not have won it as the lowest of 4 bids without her. We would still be living in a tiny 1 BR instead of a beautifully renovated 1200-sf 2-br that we got for $580k on the UWS. A good broker can make all the difference.
I will say that a broker, who is supposedly a professional, will be able to negotiate a lower price theoretically better than you ----. This all assumes that your representative is not scum and is competent.
Yes I have dealt with good brokers who have integrity, and I have dealt with pond scum.
If you use a broker, and you have any doubts based on any intuition... follow your intuition.
This building sits on land lease property.
Where's the house located?
Karen Masuko and Jonathan Helfer of Katz & Matz!
Can anyone provide recent (within the last year or two) recommendations of lawyers who helped them purchase a house?
RS and RC can be evicted if the building's being demolished: http://www.nyshcr.org/Rent/FactSheets/orafac11.htm
There're only six RS, so shouldn't cost much to relocate them. I can't tell whether there're any RC.
Even if the new landowner drives the co-op to foreclosure wouldn't it still have to find a way to boot the rent regulated tenants? Not sure if a co-op's non-eviction plan still applies if the co-op dissolves.
Based on http://www.nyc.gov/html/dcp/pdf/zone/map8d.pdf, I think it's zoned C6-3X, which permits a commercial FAR of 6, and a residential FAR of 9 (residential equivalent zone is 9X), which could get you a rather substantial building (http://www.nyc.gov/html/dcp/pdf/zone/zoning_handbook/r9x.pdf). Not quite as desirable as a FAR of 10, but desirable (and good location for commercial).
That's from http://offeringplanet.com/Building/101%20West%2023rd%20Street/Financials%20'08-'10.pdf
I can't wait to see.
Up above somewhere I said the rent increases by CPI. It doesn't.
Starting in 2009, it was $700K. More than taxes and labor combined.) Every year through 2017 it goes up by CPI, with a minimum of 2% and a max of 4%.
Then there're "adjustment periods" starting in 2018, 2028, 2038 and 2040. At the start of each, new rent will be based on the value of the land. (That value is enormous, since the land encumbered by the lease is $95,000,000.)
During each 10-, 2-, or 4-year adjustment period, rent goes up annually by the same CPI-based formula it does now.
Legal issues at this building have now been settled and banks are lending here. I spoke with an owner who refinanced their mortgage their last year.
Talked to 2 brokers, one that lives in the building, and because of the lawsuit financing seems to have been recently declined by majors banks. Who knows what's the real deal and potential increase of CC in the future.
The broker that lives there said only cash deals can be done and sellers won't accept a financing clause in the contract.
your judgment would be light years better than mine, nwt, and you have withheld it...but i'll offer, anyway, that i smell a deadbeat owner in this
The case has been dragging on, as they do. The condo just won one, though, as the court agreed that the dispute should go to arbitration, as per the by-laws. http://decisions.courts.state.ny.us/fcas/fcas_docs/2012JUL/3001154042010003SCIV.pdf
Seems like there has been quite a bit of mortgage activity in the building this Year, plenty of which is from Chase...good sign. With mortgage rates at this all time low, it's a great time to take advantage of the market.
It's unfortunate that the board members were kept on the hook. Most likely they individually have their sides of the story, which may never hit these posts. Unfortunately, we come across similar situations often, where scuffles are blown out of proportion and it's difficult to obtain the facts. The down side to this, is that some banks or even end buyers would "stay away" from the "problem" as opposed to researching it further.
Technology is definitely on our sides with open information sharing. This building has taken a hit due to this sue, but is on the way back to the glory it warrants and deserves...
Does the stairwell off the kitchen door contain a fire hose or hose connection? If so, you may not be permitted to block or remove it, as that's where firemen would get their water.
I've seen apartments where the second door has been covered but is still technically functional, apparently in order to keep up to code. On an unrelated note, you might really want to consider keeping that kitchen entrance, especially if the building's garbage collection bins are easily accessible from it. It's great to be able to easily take the trash from kitchen to garbage can without having to schlep it through the apartment. Also helpful having that second door when you are bringing in a ton of groceries. Just something to think about :-)
We have a 2 bedroom 1150 square foot apartment on the 3rd floor of an elevator building. It's prewar, and has 2 exits, the main door (leading to the elevator and stairs) and one in the kitchen (the stairwell). We could really use the wall in the kitchen that the door is currently occupying. What is the code on this?
Does anyone has any information on the household size for apartments that have income restriction at 250% of AMI? The listing broker is saying that the income/family is regardless of the number of family members, but based on these guidelines I found online, looks like the information is not accurate: http://www.statestreetliving.com/uploadfiles/1392398226_LIHC_New_HOP_2013_Income_Guidelines.pdf
Any help is appreciated.
The listing says 3-family. One in the cellar with bars on the windows.
Just curious why it says 2 family, but has 3 floors. Thanks in advance.
I used Costikyan [718 726-1090] to clean 15+ rugs a year ago as part of my move.
Excellent service, and the per square foot cost isn't bad, especially considering the cost includes pick up & delivery. I had them pick up from the old place, and deliver to the new place, so it was one less thing to pay the movers for.
out = ours
We just had out cleaned by ABC which is where we bought it. They did a great job. Very efficient service. Not particularly fast - it was gone for two weeks.
Any more recent experiences? Looking to have a 5 x 8 rug professionally cleaned before moving.
I just used Rose's carpet on 89th and Amsterdam to clean a fairly large oriental rug. They charged me $250 for the job. Have yet to pick it up after cleaning, so cannot comment on quality yet, but the friends that referred me to the place vouched that they do a good job.
I live in a prewar apartment building and have been plagued with a persistent smell in my apartment. The smell is mild when the windows are closed, but when I open the windows and create a cross ventilation the smell significantly intensifies. I have been trying for over a year to find the source, but keep coming up empty. Anyone have a suggestion on how to proceed or if there is some sort of consultant that could help?
Many times a building is not on a banks approved list simply because of outdated documentation, usually because the bank has not made a loan there is say 3 years. I prefer to shop around and find a bank that does have the subject building approved. In some cases the bank can easily bring the building back on board, in others it can create a lot of additional headaches as the underwriter asks for what seems like a never ending amount of documents and information. Just went through this, Chase did not have a particular "approved:, Citi, Wells and BofA did. Before Chase could get the building back on line, the deal went South. There is also NOTHING more important than a highly competent mortgage banker, they are not all the same.
The Burkhardt Group
Why don't you ask your mortgage broker?
Certain buildings are on a bank's "approved list"; the banks consider this building financially safe. The building has enough reserves; a large percentage of the units are NOT owner occupied; the sponsor does NOT own too high a percentage of the units, etc.
But a building that's NOT on the bank's "approved list": banks are reluctant to offer mortgages to an applicant who's buying into a "non-approved" building, generally speaking.
Nonetheless, a bank will loan to an applicant with very good financials, even though he/she is buying into a "non-approved" building.
My question: If one buys into a "non-approved" building, will the mortgage rate be HIGHER than the rate if one buys into an "approved" building? If so, what's the difference in the rate, generally speaking?
My banker from WF just told me that there is no difference, and I'm happy. But I've heard that there could be a marginal difference. So I'm confused.
UE98, you might get a negotiating factor - to be allowed to buy the unit because you contacted them so early. Getting some money off, not as likely.
Sorry to say UE98, but this is a hot market, so the "negotiating factor" is probably zero.
The next step would be:
Assuming the guy's receptive, what's the best way to proceed going about a direct deal? Any suggestions or tips? What should I be on the lookout for? Things to avoid or make sure of? How much of a negotiating factor is the fact that there's no broker involved?
Find the lot on ACRIS, and read the deeds and mortgages. Those will confirm the name and give you an address. Then drop him a note and tell him you're interested.
I am interested in a new construction in my neighborhood. Its not yet finished. Its a 3 or 4 story condo, which will have, I think, 8 or so units (all 1 bedrooms, maybe a studio or two). I would like to contact the owner/sponsor/developer directly about purchasing a unit direct. How does one go about this? I have noticed a phone number on the outside of the construction site, but that only seems to be to report unsafe work conditions, etc. I do happen to know that the developer is a single individual and has built similar small residential buildings in the past. How would i go about contacting this person, and from there, approach the subject of a direct (broker-less) sale?
Thanks for any help.
I thought this address looked familiar. This might explain someone paying over 1M for a RS unit.
Married couple. Not going anywhere. The person who purchased this from the bank 3 years ago paid twice as much as comparable REOs in the building.
There's an old "Maintenance & Assessment History" at http://ellimanpm.com/uncimages/1802/sales/MAINTENANCE%20&%20SPECIAL%20ASSESSMENT%20HISTORY%20-%2070%20EAST%2010TH%20STREET.pdf
The listing agent would probably get you a current one.
I would never own in a co-op that would let me live there as a renter.
1. if the board wont treat you like a VP you should discard the invitation
2. you are correct: transiency and emergency relocation are a fact of modern NYC life
3. I would avoid any Coop whose building has an inflexible no-sublet policy
Said to be a board that looks for big post-closing reserves.
We were outbid recently in this building but hope to buy in the near future as the location is just superb and it's sort of affordable. The only concern we have during our research is the board seems very strict. We actually like the idea of a tightly run ship, but wonder if it goes to the other extreme. For example this turns out to be the only co-op in our hunt so far that outright forbids subletting. Given the transiet nature of NYC population, it seems a little too much. Does it disallow roommating too? What is it like to be living in this building? How is the building's financial? We heard about a hefty assessment. Could someone share some insights? Would greatly appreciate it.
Just this question means that your broker is deceiving you. He or she is not your friend any more than the car salesman. He's being fully paid, and that he's nice or "looking out for you" is just part of his responsibility. Doing a good job doesn't demand extra compensation.
thoffdiddy: Correct - the buyer will generally take care of the title agent. The buyer's attorney often provides guidance with regard to the amount.
As for tipping your broker, that's a clear no. The legality of your agent ACCEPTING a gratuity is open to debate, but there's certainly no expectation that you will offer one. If you love your broker, stay friends, give referrals, take her out to lunch.
Thanks for the input. Just to be clear, I'm the seller here . . . does that change anything re: the tipping analysis? am I correct that it's the buyer who tips the title agent (not me)?
If you are moving into a coop or condo, tip the staff. You'll learn all about the bldg and owners.
nyc511, I represent potential HDFC buyers in Harlem, and they are precisely the people the program is meant to help (one works with special needs kids). So far we have lost multiple properties in the $350K range to all-cash buyers. Whether the winning bidders are getting money from their parents or the sale of previous apartments I don't know (I suspect it's a mix) but the backdoor is not that purchasers are lying about their income, it's that, as NWT speculated, not all low-income people have low assets.
They probably have cash but low income.
I understand the concept and history behind these HDFC buildings, but what I don't understand is some of the prices; how are two people, making a combined income of $32,000, going to get financing for a $170,000 co-op? And if they do get a loan, how are they going to afford $12,000 + in debt service and maintenance on top of living expenses? Are people getting into these buildings through a "backdoor" method?
If you're truly risk adverse you won't buy in any storm zone. Remember Sandy wasn't even a hurricane by the time it got here. There is plenty of high ground on the Upper East Side and values there too. I lived through a Sandy-ravaged community and----not for me ever again.
I have friends there as well and if I recall, they didn't have water (including flushing toilets) for the duration of the blackout. I live in the blackout zone as well but at least I could use the toilet. (We didn't have hot water for showers but of course its a lot easier to go out once a day to a friends' house than to go out every time you have to "go".) And trust me, we were grateful for that little "luxury".
I had friends there then. The building had not installed generators, so for the whole week they had to walk down (and up) 45 flights in unlit stairwells. Check out whether that has been addressed.
Thanks so much, aboutready and fbrunetti. Hey, that rhymes.
CoyWolf: there is a new 2 bedroom listing just posted in the building (27d) that has open south and west views. It's completely renovated. Check it out.
The landlease expires in 2046 not 2020. There is no tax abatement to my knowledge.
what is the story on the tax abatement??
The ground leases run through 2046. That's per the 1969 amended leases filed with the city, and the 1968 offering plan for the co-op.
Rent was $230,000 per year for the first five years. Since then it's increased annually by the CPI.
Another thread says 2020
when is the land lease expiring?
The co-op allows up to 50% financing
What is the mortgage as a percentage of value permitted in this building?