In today's real estate market it's more important than ever for your home to look sales ready!
Selling your home is like a job interview. You want to make a great impression!
I cannot begin to describe the number of instances, where I have gone to preview a seller's home or brought a buyer and even renter - only to find the home dirty, dishes in the sink, food left on the kitchen counter, toys ALL over the house beds unmade, etc.
Do not assume it doesn't matter. It does!!!!!
People are coming to inspect your home to see if they want to purchase it. By making a good impression, you increase the chances of getting your home sold or even rented,
The home for sale or rent should be clean, uncluttered, beds made and toys put away.
If you have pets, realize that many people are allergic to pets, and that shedding dog fur and cat dander are everywhere. When showing your home, pets should not be at home. That's what friends, relatives and kennels are for - to help you with those darling fluffy family members! Additionally, your home should be completely fur and dander cleansed. It should not be obvious to a potential buyer that you have pets living in your home.
If your home needs additional sprucing up, do consider a new coat of paint and staging! It works wonders.
Remember ... a clean and uncluttered home that is attractive and inviting, is a home ready to be sold!
Now that your home is clean, you need to think about how your home looks.
Do you have too much furniture? Is your furniture worn? You may need to stage your home!
Home staging is preparing a home prior to putting it on the market for sale.
Why stage your home? Staging a home can ensure a quick sale.
You may love the way your home looks, but potential buyers may not. When selling your home, staging it professionally can make your home more appealing and more attractive. It depersonalizes your home, reduces its flaws and very often, raises the value of your home. Very often it can bring a higher purchase price.
With shows like HGTV's ‘Designed To Sell', "Bought and Sold", "Get It Sold", "Buy Me" and TLC's "Flip This House" home owners looking to sell their home, can learn valuable staging information that could be the difference of one's home being sold quickly, or sitting on the market for a long time.
As a professional real estate agent, I have seen buyers cringe at red walls, pink bathrooms, clutter and other people's pictures and momentos. Although this is important to the seller, sellers should not take this personally. Buyers want to see neutral, clean and uncluttered living spaces that they can envision themselves living in.
You can find professional home stagers in most cities by searching the Internet or letting your fingers do the walking in the yellow pages. You can also find these stagers from an accredited home staging school. One of the best ways to find a good professional home stager is to ask your broker. Brokers know the best stagers in their area.
Let the stagers do their job ... regardless of whether you agree with their choices or not.
If you prefer to do the staging yourself:
- Get rid of clutter
- Put away photos and momentos
- If you have children, their toys should not be visible
- Clean and light fireplaces so they look inviting
- Clear kitchen and bathroom counters
- If it's outdated, it should go
- Walls and carpeting should be neutral
- If furniture is oversized, put some in storage
Make your home appealing. Keep it neat and clean and light scented candles when potential buyers are coming over to see your home. The seller should not be present. Only the brokers and potential buyers should be there.
Add value to your home so it sells!
If you feel overwhelmed, hire a stager. There are home staging companies all over the country. My favorite stager Caroline Greenberg owner of Design Solutions works wonders and is located in Manhattan.
It's worth the modest fee that will increase the value of your home!
Thursday, February 19, 2009
Sunday, February 15, 2009
Manhattan Real Estate Gets Busy
Over the past few weeks, apartment buyers have hit the Manhattan pavements searching for their dream homes. I know this because I am working with four buyers, am in contract on a property and speak with other agents who see the same traffic.
Despite media reports of banks not giving mortgages, many buyers are getting mortgages.
While there are no fire sales, some buyers are making unrealistic offers... a few which have been considered.
For the most part, sellers understand that they have to be realistic in their asking price and price properly from the onset, or negotiate with buyers for the value that they are seeking.
Of the buyers I am currently working with, three are in the medical profession and one buyer is in the communications field. My buyer who just signed a contract for an apartment is in finance, but not on Wall Street.
The one seller I currently have is a couple in the medical field.
Additionally, the rental market in Manhattan is far from what it used to be. I had a rental exclusive on the market for a month and urged my client to lower the rent, offer a month of free rent and a dinner for two (up to $200) at a trendy Manhattan bistro. The apartment was rented today - three days after we lowered the rent and offered perks! In lieu of the dinner at the bistro, my client is paying a portion of the applicant's application fee.
So it's a different real estate market than it was a year ago for sure, both in sales and rentals, but Manhattan real estate is busy.
Despite media reports of banks not giving mortgages, many buyers are getting mortgages.
While there are no fire sales, some buyers are making unrealistic offers... a few which have been considered.
For the most part, sellers understand that they have to be realistic in their asking price and price properly from the onset, or negotiate with buyers for the value that they are seeking.
Of the buyers I am currently working with, three are in the medical profession and one buyer is in the communications field. My buyer who just signed a contract for an apartment is in finance, but not on Wall Street.
The one seller I currently have is a couple in the medical field.
Additionally, the rental market in Manhattan is far from what it used to be. I had a rental exclusive on the market for a month and urged my client to lower the rent, offer a month of free rent and a dinner for two (up to $200) at a trendy Manhattan bistro. The apartment was rented today - three days after we lowered the rent and offered perks! In lieu of the dinner at the bistro, my client is paying a portion of the applicant's application fee.
So it's a different real estate market than it was a year ago for sure, both in sales and rentals, but Manhattan real estate is busy.
Manhattan Is A Buyer's Market
Manhattan is a buyer's market and with prices going down ... NOW is the time to buy!!!
If you need to move (downgrade or upgrade), if you're a first time buyer, now is a great time to buy. Mortgage rates are low and prices are negotiable.
While there are no fire sales, you can be assured that if you buy an apartment in Manhattan today, your property's value will greatly increase in years to come.
Before beginning, it is important to outline the different forms of ownership available to purchasers of Manhattan property. Those forms are Cooperative, Condominium, Cond-op, and Townhouse (both single and multi-family). Please see the notes at the end of this document for a full description of each form of ownership.
Preparation
Work with your agent to complete the following:
Speak with a Mortgage Lender/Broker and obtain written pre-approval for a loan. This helps you determine your purchasing power and enables you to act expeditiously and with confidence when you identify the property you would like to purchase. Additionally, a pre-approval assures the seller that you are qualified, providing you with an advantage when bidding on a home. This is especially helpful in a multiple interest situation.
Choose a Manhattan Attorney who specializes in residential Real Estate. As New York City has complex real estate laws, attorneys are utilized to close all real estate transactions. Time is often critical; be sure your attorney is available to move quickly. A relative or friend who is an attorney cannot handle the complicated New York City real estate intricacies unless they know New York City real estate law.
The customary deposit upon executing a contract of sale is 10% of the purchase price. Ideally, be prepared to have those funds liquid when you begin your search. The balance of the down payment will be due upon closing.
For Coop purchases, your total annual housing costs should not exceed 25-30% of your gross reported income, and your total debt should not exceed 35-40% (except in the case of substantial liquid assets). Housing costs include: mortgage interest, coop maintenance, secondary residences and any other mortgage in which your name appears.
In certain forms of ownership, offers are not only accepted based upon price, but upon the financial strength of the potential buyer. Therefore, be prepared to have your net worth statement with substantiating documentation (bank statements, brokerage statements & other financial documentation) available. In many cases sellers require you to provide this with your offer. Regardless of the outcome this information will be required for most purchases and financial institutions so having it prepared will also save you time in the future. Be assured your agent will safeguard this information in a confidential manner.
Review your credit report. Remove all disputed claims and clear up any debt if possible, especially outstanding credit card balances.
Guidelines to finding your home:
Define your search parameters. This typically includes price range, location, size, type of ownership and building amenities (if appropriate). Ultimately, flexibility will only work to your advantage.
Choose an agent to work with. Since agencies have almost all the same listings, working with one broker allows you to efficiently schedule appointments to see only those properties that meet your needs. In addition, working with more than one broker may actually prolong your search by having the same properties shown to you by multiple brokers or by having multiple brokers confuse other brokers by making appointments at different times for the same customer. Since property in Manhattan tends to sell rather quickly, prolonging the process may actually hinder you from seeing the property that best meets your needs. Lastly, by creating a good relationship with your broker, you assure that you are the first person they call when a new listing arrives on the market.
Talk to your broker. Be specific about your needs, price point, locations of interest and any other amenities you require in your new home or building. If you do not feel comfortable with your broker, do not hesitate to let them know so that they may have the opportunity to refer you to a colleague with whom you may be more compatible.
When scheduling appointments, try to be available during the week. In addition to evenings, early morning and late afternoon is a good time to schedule appointments, as more brokers are available during these times to provide access to their listings. In addition, by avoiding weekend and open house showings you allow yourself to view properties without fighting crowds of people (competition) and giving you more time to ask questions and get a "feel" for the property.
Once you identify the property - The purchase:
Submit a verbal offer through your Agent immediately who will then follow it up in writing. The offer will include such provisions as purchase price, down payment, amount of financing, included and/or excluded personal property (i.e. window treatments, lighting fixtures, etc) preferred closing date, current income (combined for couples), job description, net worth, and debt status (loans, credit, etc.). Once your offer is verbally "accepted" by the seller, your broker will notify the seller's attorney who in turn will draw up and send to your attorney the initial contract.
Keep in mind that sellers are allowed to hear ALL subsequent offers while your contract is negotiated (or finalized). In fact a seller may accept another purchaser's offer up to the point of a fully signed, executed and returned contract. This means that until your contract is signed by both you and the seller, your deal may not sustain as the primary deal. Therefore, instruct your attorney to proceed expeditiously.
Your attorney will review with you the contract, perform a "due diligence" reviewing with you the "financials" and/or "issues" of the building, and ask you to execute the contract and put forward a 10% deposit to be held in escrow until closing. Thereafter, the seller signs the contract and your attorney will deliver one original to you and one to your mortgage broker/bank.
Immediately apply for a mortgage (if applicable). Your agent will work with your mortgage broker/bank to coordinate the appraisal of the property and provide the bank with requested information on the building. The loan process typically involves several steps from application to appraisal and finally approval. This process may take up to 45 days to complete and hinges on your ability to provide all of the required financial data to your broker/banker in a timely manner.
While awaiting your mortgage commitment work with your broker to complete your board package (not applicable for townhouse purchases). Your broker will provide an application which varies from building to building which typically must be completed and returned to your broker (who will in turn deliver it to the appropriate party) within 10 days of receipt of the fully executed contract or 3 days for the date a bank commitment letter is received, whichever applies. A typical cooperative board package requires at the minimum, the following: Personal and Business Reference Letters (if necessary, we can provide you with sample reference letters to assist your friends and colleagues), Employment Verification Letters and/or Pay Stubs, Bank Verification and Brokerage Statements, Net Worth Statement (this mirrors the information requested by your bank), two-years tax returns and the mortgage loan application and commitment.
Board packages must not be taken for granted. All questions and requests for documentation must be complied with. Both the application form and the Net Worth Statement should be typed and the package should provide a clear and concise assessment of your qualifications to purchase.
Once completed, your broker will review the package in order to assure that all the required documentation has been supplied and presented in the manner requested by the board and then forward the package to the buildings managing agent or otherwise authorized personnel for processing.
Upon review of your board package, the board will typically schedule an interview to meet with you. Boards vary in the manner in which they meet with applicants so please check with your broker to find out how often the board meets or if they have a separate interview committee that meets on a case by case basis.
After the interview, typical notification of the board's decision is given to you or your Agent within 72 hours however some boards reserve the right to take longer.
Upon board approval, notify your attorney who in turn will coordinate the closing date. A typical closing can take up to 2 weeks to schedule so please keep this in mind when planning your move.
Prior to closing - The Inspection:
The day before or the morning of the closing (but usually after the seller has vacated), your Agent will accompany you on an appointment to inspect that the property is in the same condition or promised condition as stated in the contract. Be sure to check appliances and the removal of personal property, and that the premises are broom clean.
The Closing:
At any closing be sure to bring with you your driver's license or passport, your checkbook for any last minute adjustments, and all certified checks discussed with your attorney.
Cooperatives and Condops: The closing is ordinarily held at the office of the management company for the building. The closing is attended by you, your attorney, the seller, the seller's attorney, the lender's attorney, a representative from the managements transfer dept., and the Agent(s) involved in the transaction. At the closing you will first sign documents necessary to complete the loan transaction inclusive of a Security Agreement, Promissory Note, Stock Power, and an Assignment of Lease. Thereafter, you will sign all documents to convey the apartment and secure interest in the apartment such as Stock Certificate, Proprietary Lease and Consent and Checks representing the balance of the purchase price and adjustments are exchanged for the keys to the apartment.
Condominiums & Townhouses: The closing is ordinarily held at the office of the seller or lender's attorney. The closing is attended by you, your attorney, the seller, the seller's attorney, the lender's attorney, the title company closer and the Real Estate agent(s) involved in the transaction. At the closing you will first sign all documents necessary to complete the loan transaction inclusive of a mortgage and promissory note. Thereafter, you will sign all documents to convey the condo apartment to you including a Deed, Title Report, and Unit Power of Attorney. Checks representing the balance of the purchase price and adjustments are exchanged for the keys to the apartment or house.
Notes - Definitions of different forms of ownership
Cooperative
In this form of home ownership, one owns shares of stock in a corporation that owns the building. These shares are considered "personal property" similar any other shares of stock. For tax purposes, the IRS has recognized this form of ownership and under normal circumstances any mortgage interest incurred by an owner is considered tax deductible. The corporation (Coop) issues to each shareholder a "proprietary lease" which gives the shareholder the right to occupy their specific apartment. In addition, the corporation elects a board of directors who are responsible for overseeing the daily operations of the building, enforcing the by-laws, and acting of behalf of the shareholders to ensure that the building operates as an efficient entity. Owners pay to the Coop a maintenance fee, which pays for such items as; the buildings Real Estate Taxes, underlying mortgage, payroll, management fees, supplies and general maintenance. In addition, many coops accrue a contingency budget for future capital repairs. Typically, the portion of the maintenance that is attributed to the buildings Real Estate Taxes and mortgage interest are "tax deductible (td)" on your federal and state income tax returns. This "td" may change annually, as the mortgage on the building is amortized and Real Estate Tax charges change.
Lastly, but not least, as this form of ownership regards owning stock in a private corporation, approval to purchase such shares of stock must be granted by the board of directors. Thus, a purchase application must be submitted to the board requesting approval to purchase these shares. This application typically requires a minimum of the following: Net worth statement with full backup documentation (bank statements, brokerage and retirement account statements, etc.), 2 years tax returns & W-2's, verification of employment or accountants letter, 2 personal and 2 business letters of reference, landlord reference, a credit check authorization, and a completed application provided by the board. In addition, the board will require an interview in order to meet you and make any inquiries regarding the information you submitted or questions they may have. The board has the right to approve or deny any applicant without cause.
Condominium
In this form of home ownership one owns "Real Property" much like owning a house. The condominium residents elect a "board of managers" who are responsible for overseeing the operations of the building and enforcing the "house rules" of the building. The main difference between owning a "condo" and a "house" is, in addition to owning the apartment, you also own a small percentage of the "common elements" of the building such as the halls, stairwells, basement, etc. Each homeowner receives a separate property tax bill from the city for their unit. In addition, each owner pays a "common charge" to the Condominium association to pay for such items as: payroll, building maintenance and supplies, management fees, and building repairs. In addition, some condominiums maintain a "reserve fund" in order to pay for major repairs and improvements to the building. It is important to note that although the Real Estate Taxes you pay on a condominium apartment are tax deductible, the common charges are not as they are solely to pay for the building operation and are not attributed to any tax deductible expenses.
In recent years many condominiums have implemented a procedure whereby purchasers must submit an application to purchase. Unlike in a coop, the board of managers must either approve the applicant or exercise the condominiums "right of first refusal" to purchase the apartment from the owner. Although this is not a common occurrence, it is an option for the board should they choose to exercise it.
In most condominiums, the owner has the right to sublet or sell their apartment with either no board approval or with a minimum board review. In either case, the board must either approve the applicant or exercise their right of first refusal to match the purchase price. For this reason this form of ownership is very appealing to investors, foreign buyers and parents purchasing for their children
Cond-Op
By definition, a Cond-op is a residential Cooperative where the ground floor (typically commercial units) is converted into a separate "condominium" which is either owned by an outside investor or the original sponsor of the building. Thus, although the residential units are a coop, the commercial units are owned as a condominium by an entity other than the coop. Thus, the coop does not receive the benefit of the income from these units.
Many times, people will refer to Cooperatives that operate under Condominium rules as "Cond-ops". This is not accurate although you will hear this quite often. A Cooperative that operates under condominium rules is just that but may be inaccurately referred to as a "Cond-op".
Townhouse
This form of ownership provides the owner with a "fee simple" ownership of Real Property. The owner is responsible for payment of all Real Estate Taxes, maintenance and repairs of the property. The sale of the property may be conveyed to any party without prior approval by anyone other than the homeowner. There are two typical types of Townhouses; single family and multiple family. In a single family the property may only be occupied by one family although the entire house may be rented to another single (or family) user. In a multiple family residence, the owner may occupy (or lease out) one of the units while leasing out the other units as income producing entities.
For more information on purchasing an apartment in Manhattan, call Ross Ellis at 212-317-7828.
If you need to move (downgrade or upgrade), if you're a first time buyer, now is a great time to buy. Mortgage rates are low and prices are negotiable.
While there are no fire sales, you can be assured that if you buy an apartment in Manhattan today, your property's value will greatly increase in years to come.
Before beginning, it is important to outline the different forms of ownership available to purchasers of Manhattan property. Those forms are Cooperative, Condominium, Cond-op, and Townhouse (both single and multi-family). Please see the notes at the end of this document for a full description of each form of ownership.
Preparation
Work with your agent to complete the following:
Speak with a Mortgage Lender/Broker and obtain written pre-approval for a loan. This helps you determine your purchasing power and enables you to act expeditiously and with confidence when you identify the property you would like to purchase. Additionally, a pre-approval assures the seller that you are qualified, providing you with an advantage when bidding on a home. This is especially helpful in a multiple interest situation.
Choose a Manhattan Attorney who specializes in residential Real Estate. As New York City has complex real estate laws, attorneys are utilized to close all real estate transactions. Time is often critical; be sure your attorney is available to move quickly. A relative or friend who is an attorney cannot handle the complicated New York City real estate intricacies unless they know New York City real estate law.
The customary deposit upon executing a contract of sale is 10% of the purchase price. Ideally, be prepared to have those funds liquid when you begin your search. The balance of the down payment will be due upon closing.
For Coop purchases, your total annual housing costs should not exceed 25-30% of your gross reported income, and your total debt should not exceed 35-40% (except in the case of substantial liquid assets). Housing costs include: mortgage interest, coop maintenance, secondary residences and any other mortgage in which your name appears.
In certain forms of ownership, offers are not only accepted based upon price, but upon the financial strength of the potential buyer. Therefore, be prepared to have your net worth statement with substantiating documentation (bank statements, brokerage statements & other financial documentation) available. In many cases sellers require you to provide this with your offer. Regardless of the outcome this information will be required for most purchases and financial institutions so having it prepared will also save you time in the future. Be assured your agent will safeguard this information in a confidential manner.
Review your credit report. Remove all disputed claims and clear up any debt if possible, especially outstanding credit card balances.
Guidelines to finding your home:
Define your search parameters. This typically includes price range, location, size, type of ownership and building amenities (if appropriate). Ultimately, flexibility will only work to your advantage.
Choose an agent to work with. Since agencies have almost all the same listings, working with one broker allows you to efficiently schedule appointments to see only those properties that meet your needs. In addition, working with more than one broker may actually prolong your search by having the same properties shown to you by multiple brokers or by having multiple brokers confuse other brokers by making appointments at different times for the same customer. Since property in Manhattan tends to sell rather quickly, prolonging the process may actually hinder you from seeing the property that best meets your needs. Lastly, by creating a good relationship with your broker, you assure that you are the first person they call when a new listing arrives on the market.
Talk to your broker. Be specific about your needs, price point, locations of interest and any other amenities you require in your new home or building. If you do not feel comfortable with your broker, do not hesitate to let them know so that they may have the opportunity to refer you to a colleague with whom you may be more compatible.
When scheduling appointments, try to be available during the week. In addition to evenings, early morning and late afternoon is a good time to schedule appointments, as more brokers are available during these times to provide access to their listings. In addition, by avoiding weekend and open house showings you allow yourself to view properties without fighting crowds of people (competition) and giving you more time to ask questions and get a "feel" for the property.
Once you identify the property - The purchase:
Submit a verbal offer through your Agent immediately who will then follow it up in writing. The offer will include such provisions as purchase price, down payment, amount of financing, included and/or excluded personal property (i.e. window treatments, lighting fixtures, etc) preferred closing date, current income (combined for couples), job description, net worth, and debt status (loans, credit, etc.). Once your offer is verbally "accepted" by the seller, your broker will notify the seller's attorney who in turn will draw up and send to your attorney the initial contract.
Keep in mind that sellers are allowed to hear ALL subsequent offers while your contract is negotiated (or finalized). In fact a seller may accept another purchaser's offer up to the point of a fully signed, executed and returned contract. This means that until your contract is signed by both you and the seller, your deal may not sustain as the primary deal. Therefore, instruct your attorney to proceed expeditiously.
Your attorney will review with you the contract, perform a "due diligence" reviewing with you the "financials" and/or "issues" of the building, and ask you to execute the contract and put forward a 10% deposit to be held in escrow until closing. Thereafter, the seller signs the contract and your attorney will deliver one original to you and one to your mortgage broker/bank.
Immediately apply for a mortgage (if applicable). Your agent will work with your mortgage broker/bank to coordinate the appraisal of the property and provide the bank with requested information on the building. The loan process typically involves several steps from application to appraisal and finally approval. This process may take up to 45 days to complete and hinges on your ability to provide all of the required financial data to your broker/banker in a timely manner.
While awaiting your mortgage commitment work with your broker to complete your board package (not applicable for townhouse purchases). Your broker will provide an application which varies from building to building which typically must be completed and returned to your broker (who will in turn deliver it to the appropriate party) within 10 days of receipt of the fully executed contract or 3 days for the date a bank commitment letter is received, whichever applies. A typical cooperative board package requires at the minimum, the following: Personal and Business Reference Letters (if necessary, we can provide you with sample reference letters to assist your friends and colleagues), Employment Verification Letters and/or Pay Stubs, Bank Verification and Brokerage Statements, Net Worth Statement (this mirrors the information requested by your bank), two-years tax returns and the mortgage loan application and commitment.
Board packages must not be taken for granted. All questions and requests for documentation must be complied with. Both the application form and the Net Worth Statement should be typed and the package should provide a clear and concise assessment of your qualifications to purchase.
Once completed, your broker will review the package in order to assure that all the required documentation has been supplied and presented in the manner requested by the board and then forward the package to the buildings managing agent or otherwise authorized personnel for processing.
Upon review of your board package, the board will typically schedule an interview to meet with you. Boards vary in the manner in which they meet with applicants so please check with your broker to find out how often the board meets or if they have a separate interview committee that meets on a case by case basis.
After the interview, typical notification of the board's decision is given to you or your Agent within 72 hours however some boards reserve the right to take longer.
Upon board approval, notify your attorney who in turn will coordinate the closing date. A typical closing can take up to 2 weeks to schedule so please keep this in mind when planning your move.
Prior to closing - The Inspection:
The day before or the morning of the closing (but usually after the seller has vacated), your Agent will accompany you on an appointment to inspect that the property is in the same condition or promised condition as stated in the contract. Be sure to check appliances and the removal of personal property, and that the premises are broom clean.
The Closing:
At any closing be sure to bring with you your driver's license or passport, your checkbook for any last minute adjustments, and all certified checks discussed with your attorney.
Cooperatives and Condops: The closing is ordinarily held at the office of the management company for the building. The closing is attended by you, your attorney, the seller, the seller's attorney, the lender's attorney, a representative from the managements transfer dept., and the Agent(s) involved in the transaction. At the closing you will first sign documents necessary to complete the loan transaction inclusive of a Security Agreement, Promissory Note, Stock Power, and an Assignment of Lease. Thereafter, you will sign all documents to convey the apartment and secure interest in the apartment such as Stock Certificate, Proprietary Lease and Consent and Checks representing the balance of the purchase price and adjustments are exchanged for the keys to the apartment.
Condominiums & Townhouses: The closing is ordinarily held at the office of the seller or lender's attorney. The closing is attended by you, your attorney, the seller, the seller's attorney, the lender's attorney, the title company closer and the Real Estate agent(s) involved in the transaction. At the closing you will first sign all documents necessary to complete the loan transaction inclusive of a mortgage and promissory note. Thereafter, you will sign all documents to convey the condo apartment to you including a Deed, Title Report, and Unit Power of Attorney. Checks representing the balance of the purchase price and adjustments are exchanged for the keys to the apartment or house.
Notes - Definitions of different forms of ownership
Cooperative
In this form of home ownership, one owns shares of stock in a corporation that owns the building. These shares are considered "personal property" similar any other shares of stock. For tax purposes, the IRS has recognized this form of ownership and under normal circumstances any mortgage interest incurred by an owner is considered tax deductible. The corporation (Coop) issues to each shareholder a "proprietary lease" which gives the shareholder the right to occupy their specific apartment. In addition, the corporation elects a board of directors who are responsible for overseeing the daily operations of the building, enforcing the by-laws, and acting of behalf of the shareholders to ensure that the building operates as an efficient entity. Owners pay to the Coop a maintenance fee, which pays for such items as; the buildings Real Estate Taxes, underlying mortgage, payroll, management fees, supplies and general maintenance. In addition, many coops accrue a contingency budget for future capital repairs. Typically, the portion of the maintenance that is attributed to the buildings Real Estate Taxes and mortgage interest are "tax deductible (td)" on your federal and state income tax returns. This "td" may change annually, as the mortgage on the building is amortized and Real Estate Tax charges change.
Lastly, but not least, as this form of ownership regards owning stock in a private corporation, approval to purchase such shares of stock must be granted by the board of directors. Thus, a purchase application must be submitted to the board requesting approval to purchase these shares. This application typically requires a minimum of the following: Net worth statement with full backup documentation (bank statements, brokerage and retirement account statements, etc.), 2 years tax returns & W-2's, verification of employment or accountants letter, 2 personal and 2 business letters of reference, landlord reference, a credit check authorization, and a completed application provided by the board. In addition, the board will require an interview in order to meet you and make any inquiries regarding the information you submitted or questions they may have. The board has the right to approve or deny any applicant without cause.
Condominium
In this form of home ownership one owns "Real Property" much like owning a house. The condominium residents elect a "board of managers" who are responsible for overseeing the operations of the building and enforcing the "house rules" of the building. The main difference between owning a "condo" and a "house" is, in addition to owning the apartment, you also own a small percentage of the "common elements" of the building such as the halls, stairwells, basement, etc. Each homeowner receives a separate property tax bill from the city for their unit. In addition, each owner pays a "common charge" to the Condominium association to pay for such items as: payroll, building maintenance and supplies, management fees, and building repairs. In addition, some condominiums maintain a "reserve fund" in order to pay for major repairs and improvements to the building. It is important to note that although the Real Estate Taxes you pay on a condominium apartment are tax deductible, the common charges are not as they are solely to pay for the building operation and are not attributed to any tax deductible expenses.
In recent years many condominiums have implemented a procedure whereby purchasers must submit an application to purchase. Unlike in a coop, the board of managers must either approve the applicant or exercise the condominiums "right of first refusal" to purchase the apartment from the owner. Although this is not a common occurrence, it is an option for the board should they choose to exercise it.
In most condominiums, the owner has the right to sublet or sell their apartment with either no board approval or with a minimum board review. In either case, the board must either approve the applicant or exercise their right of first refusal to match the purchase price. For this reason this form of ownership is very appealing to investors, foreign buyers and parents purchasing for their children
Cond-Op
By definition, a Cond-op is a residential Cooperative where the ground floor (typically commercial units) is converted into a separate "condominium" which is either owned by an outside investor or the original sponsor of the building. Thus, although the residential units are a coop, the commercial units are owned as a condominium by an entity other than the coop. Thus, the coop does not receive the benefit of the income from these units.
Many times, people will refer to Cooperatives that operate under Condominium rules as "Cond-ops". This is not accurate although you will hear this quite often. A Cooperative that operates under condominium rules is just that but may be inaccurately referred to as a "Cond-op".
Townhouse
This form of ownership provides the owner with a "fee simple" ownership of Real Property. The owner is responsible for payment of all Real Estate Taxes, maintenance and repairs of the property. The sale of the property may be conveyed to any party without prior approval by anyone other than the homeowner. There are two typical types of Townhouses; single family and multiple family. In a single family the property may only be occupied by one family although the entire house may be rented to another single (or family) user. In a multiple family residence, the owner may occupy (or lease out) one of the units while leasing out the other units as income producing entities.
For more information on purchasing an apartment in Manhattan, call Ross Ellis at 212-317-7828.
Manhattan Rentals Now Bring Incentives And Negotiations
Residential rents in Manhattan have fallen and incentives like a month's free rent, an extra month of rent and no fee are becoming very common. Manhattan rental prices are down between 10 and 15 percent from 2007.
Halstead Property Manhattan 4Q Rental Report 08
In addition to Manhattan properties for sale, my company has a large rental department where we are constantly updated on the Manhattan rental market.
As of late, some landlords are offering an opt-out of lease if one loses their job. Although there are terms and conditions, that should ease a New Yorker's mind if they wish to rent an apartment.
Manhattan has become a renter's market as well as a buyer's market.
If you're a bit hesitant to buy now, why not consider a lower rent, upgrading to a larger apartment at a low rent, more incentives. It's all negotiable!
Tips on Renting Apartments in Manhattan
A Renter's Guide
Ross Ellis is committed to providing the same level of services to her customers seeking rental properties as she offers to those in the market for buying a home. Ross offers you an in-depth needs analysis prior to meeting with you, so she can guide you throughout the leasing procedures and assist you in securing your rental home.
Typical New York lease types:
The type of lease used in New York City may vary depending upon the type of building and the conditions under which it is rented. Often, landlords will include riders that may supersede or effectively change language in the lease. It is important to read the riders carefully because they can nullify any clause in the lease agreement. Both parties must sign any riders added to a lease.
REBNY Standard Form of Lease
This lease has its stabilized and non-stabilized variation and it is primarily used when renting in rental buildings as opposed to renting in a condominium or in a co-operative. When used for a rent- stabilized apartment, a rent-stabilization rider must be attached to the lease. Under the Rent Stabilization laws, the State of New York sets the annual rent increases and the lease is automatically offered for renewal each year
Condominium Lease Agreement (Blumberg Form A101)
This lease may contain a cancellation clause and/or require the lessee to pay any increases in condo charges in addition to rent. Most landlords will allow tenants to remove these two items from the lease. Whenever possible, Halstead recommends using REBNY Condominium Lease instead of the Blumberg form A-101.
Sublease Agreement (Blumberg form P193)
This lease form is used most often when renting in a co-operative apartment and in virtually all sublet situations. It is a one-page legal document and various riders are often attached. As in the case with the condominium leases above, Halstead recommends using REBNY Co-operative Sublease Agreement instead of the Blumberg form P-193.
Lease Agreement (Blumberg Form A55)
Predominately used for leasing Townhouses, Brownstones, and Single Family Structures. This lease is also easy to understand. Again, various riders could be attached and need to be reviewed prior to the execution of the lease.
Guarantors - Some landlords may request a lease Guarantor if the prospective tenant does not meet all financial requirements. A Guarantor is an individual that is qualified to guarantee the performance of the tenant. The Guarantor should earn enough income to satisfy the lease in case of default. Such income requirement is usually in the range of 80-100 times monthly rent. Landlords usually request that the guarantor be a family member living in the vicinity of New York City. Guarantors are usually asked to disclose detailed financial information and fill out a credit application as part of the approval process.
Negotiations - In the present rental market it's yours for the asking.
It is advisable that a tenant receives all promises of repairs and improvements in writing. This may be used as a rent negotiation tool if the tenant decides to pay for some of the costs of improvements. Lease renewal increases can be negotiated prior to signing the lease. It is advisable to consult with a rental agent regarding current market trends.
Short Term Rental Apartments - There is a limited supply of short-term furnished rentals. Prices tend to be much higher than a one-year lease and the supply is limited to the higher end of the market. For unfurnished apartments, tenants may rent furniture for a monthly fee. With basic furniture, the monthly cost of a rental package is about $400.00 per month for a one-bedroom apartment. As a general rule of thumb, one can estimate furniture rental costs as approximately 20% of the apartment rent. Ross Ellis will be happy to supply you with a list of reputable furniture rental companies.
When to begin your search - We strongly suggest that you do not begin your search any sooner then 4-6 weeks prior to your intended occupancy date. If you begin your search too soon, none of the apartments you saw during your home finding trip will be available when you are actually ready to sign a lease. Ross Ellis will work with you in a time efficient manner and will strive to minimize your costs by having just one home finding trip to New York City.
Building Types - There are three types of categories of buildings in which you can rent: a rental building, a cooperative, or a condominium. Each property has its own rules and regulations affecting the time frame in which a tenant will be able to move into the apartment. Ross Ellis will work with you and help you determine which type of accommodation best fits your lifestyle and occupancy date requirement.
Building Terms - Prewar Buildings are those built before World War II. These buildings tend to be less than twenty stories high and are recognized for architectural interest with features such as larger rooms and/or windows, hardwood floors and higher ceilings. These can be either doormen or non-doormen.
Postwar are larger buildings than the prewar ones, and they are built after WW2 through the 1970's. Most will have doormen. They can be found on most city blocks constructed of white, red or brown brick.
Modern Buildings are generally built from the 1980's through the present and tend to be either condominiums or luxury rentals. They are mainly hi-rises with doormen and/or concierge services. Many will house a health club and/or pool within the building.
Loft Apartments are usually large open spaces with high ceilings and big windows. They are predominantly located in the downtown neighborhoods of Manhattan and most do not have doormen.
Brownstones or Townhouses are usually 4 to 6 stories high and are either single-family homes or have been converted into multiple apartments (usually one per floor). Generally, these buildings offer a lot of charm with wood moldings, fireplaces and outdoor space, however they do not have doormen.
Walk-Up Buildings are no more than 6 stories high and have no elevator and no doorman
Studio is one or two rooms combining a living room and sleeping area. The kitchen may be within the same room or separate.
Alcove Studio (or L-Shaped) is a one or two room studio with a separate alcove which could be "walled off" and used as a sleeping area.
Convertible (or flex) is an apartment with either an alcove that can be "walled off" to create an additional bedroom, or whereby the living room is large enough to split, making an additional bedroom while still retaining some of the living room space.
Junior is similar to a convertible in that it is typically an apartment with an alcove adjacent to the living room.
Duplex or Triplex are apartments with two or three floor levels respectively.
Loft Area is an additional space created in apartments with very high ceilings. The loft area is usually constructed above the living room, accessible by a staircase or ladder and typically used for storage or sleeping space.
To find out more information renting in Manhattan with renter incentives, feel free to contact me at 212-317-7828.
Halstead Property Manhattan 4Q Rental Report 08
In addition to Manhattan properties for sale, my company has a large rental department where we are constantly updated on the Manhattan rental market.
As of late, some landlords are offering an opt-out of lease if one loses their job. Although there are terms and conditions, that should ease a New Yorker's mind if they wish to rent an apartment.
Manhattan has become a renter's market as well as a buyer's market.
If you're a bit hesitant to buy now, why not consider a lower rent, upgrading to a larger apartment at a low rent, more incentives. It's all negotiable!
Tips on Renting Apartments in Manhattan
A Renter's Guide
Ross Ellis is committed to providing the same level of services to her customers seeking rental properties as she offers to those in the market for buying a home. Ross offers you an in-depth needs analysis prior to meeting with you, so she can guide you throughout the leasing procedures and assist you in securing your rental home.
Typical New York lease types:
The type of lease used in New York City may vary depending upon the type of building and the conditions under which it is rented. Often, landlords will include riders that may supersede or effectively change language in the lease. It is important to read the riders carefully because they can nullify any clause in the lease agreement. Both parties must sign any riders added to a lease.
REBNY Standard Form of Lease
This lease has its stabilized and non-stabilized variation and it is primarily used when renting in rental buildings as opposed to renting in a condominium or in a co-operative. When used for a rent- stabilized apartment, a rent-stabilization rider must be attached to the lease. Under the Rent Stabilization laws, the State of New York sets the annual rent increases and the lease is automatically offered for renewal each year
Condominium Lease Agreement (Blumberg Form A101)
This lease may contain a cancellation clause and/or require the lessee to pay any increases in condo charges in addition to rent. Most landlords will allow tenants to remove these two items from the lease. Whenever possible, Halstead recommends using REBNY Condominium Lease instead of the Blumberg form A-101.
Sublease Agreement (Blumberg form P193)
This lease form is used most often when renting in a co-operative apartment and in virtually all sublet situations. It is a one-page legal document and various riders are often attached. As in the case with the condominium leases above, Halstead recommends using REBNY Co-operative Sublease Agreement instead of the Blumberg form P-193.
Lease Agreement (Blumberg Form A55)
Predominately used for leasing Townhouses, Brownstones, and Single Family Structures. This lease is also easy to understand. Again, various riders could be attached and need to be reviewed prior to the execution of the lease.
Guarantors - Some landlords may request a lease Guarantor if the prospective tenant does not meet all financial requirements. A Guarantor is an individual that is qualified to guarantee the performance of the tenant. The Guarantor should earn enough income to satisfy the lease in case of default. Such income requirement is usually in the range of 80-100 times monthly rent. Landlords usually request that the guarantor be a family member living in the vicinity of New York City. Guarantors are usually asked to disclose detailed financial information and fill out a credit application as part of the approval process.
Negotiations - In the present rental market it's yours for the asking.
It is advisable that a tenant receives all promises of repairs and improvements in writing. This may be used as a rent negotiation tool if the tenant decides to pay for some of the costs of improvements. Lease renewal increases can be negotiated prior to signing the lease. It is advisable to consult with a rental agent regarding current market trends.
Short Term Rental Apartments - There is a limited supply of short-term furnished rentals. Prices tend to be much higher than a one-year lease and the supply is limited to the higher end of the market. For unfurnished apartments, tenants may rent furniture for a monthly fee. With basic furniture, the monthly cost of a rental package is about $400.00 per month for a one-bedroom apartment. As a general rule of thumb, one can estimate furniture rental costs as approximately 20% of the apartment rent. Ross Ellis will be happy to supply you with a list of reputable furniture rental companies.
When to begin your search - We strongly suggest that you do not begin your search any sooner then 4-6 weeks prior to your intended occupancy date. If you begin your search too soon, none of the apartments you saw during your home finding trip will be available when you are actually ready to sign a lease. Ross Ellis will work with you in a time efficient manner and will strive to minimize your costs by having just one home finding trip to New York City.
Building Types - There are three types of categories of buildings in which you can rent: a rental building, a cooperative, or a condominium. Each property has its own rules and regulations affecting the time frame in which a tenant will be able to move into the apartment. Ross Ellis will work with you and help you determine which type of accommodation best fits your lifestyle and occupancy date requirement.
Building Terms - Prewar Buildings are those built before World War II. These buildings tend to be less than twenty stories high and are recognized for architectural interest with features such as larger rooms and/or windows, hardwood floors and higher ceilings. These can be either doormen or non-doormen.
Postwar are larger buildings than the prewar ones, and they are built after WW2 through the 1970's. Most will have doormen. They can be found on most city blocks constructed of white, red or brown brick.
Modern Buildings are generally built from the 1980's through the present and tend to be either condominiums or luxury rentals. They are mainly hi-rises with doormen and/or concierge services. Many will house a health club and/or pool within the building.
Loft Apartments are usually large open spaces with high ceilings and big windows. They are predominantly located in the downtown neighborhoods of Manhattan and most do not have doormen.
Brownstones or Townhouses are usually 4 to 6 stories high and are either single-family homes or have been converted into multiple apartments (usually one per floor). Generally, these buildings offer a lot of charm with wood moldings, fireplaces and outdoor space, however they do not have doormen.
Walk-Up Buildings are no more than 6 stories high and have no elevator and no doorman
Studio is one or two rooms combining a living room and sleeping area. The kitchen may be within the same room or separate.
Alcove Studio (or L-Shaped) is a one or two room studio with a separate alcove which could be "walled off" and used as a sleeping area.
Convertible (or flex) is an apartment with either an alcove that can be "walled off" to create an additional bedroom, or whereby the living room is large enough to split, making an additional bedroom while still retaining some of the living room space.
Junior is similar to a convertible in that it is typically an apartment with an alcove adjacent to the living room.
Duplex or Triplex are apartments with two or three floor levels respectively.
Loft Area is an additional space created in apartments with very high ceilings. The loft area is usually constructed above the living room, accessible by a staircase or ladder and typically used for storage or sleeping space.
To find out more information renting in Manhattan with renter incentives, feel free to contact me at 212-317-7828.
4th Quarter, 2008 Market Report
While real estate could be better across the country,the average price for Manhattan apartments only fell 2% from the 3rd Quarter of 2008.
Apartments sold during the 4th quarter spent 16 days longer on the market than a year ago, a 19% increase. Sellers received a bit under 95% of their asking price down from almost 98% in the 4th quarter of 2007.
I offer you the market report for 4th Quarter, 2008.
Apartments sold during the 4th quarter spent 16 days longer on the market than a year ago, a 19% increase. Sellers received a bit under 95% of their asking price down from almost 98% in the 4th quarter of 2007.
I offer you the market report for 4th Quarter, 2008.
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