New York Real Estate Term Glossary

New York City is like no other. And when it comes to real estate in this glorious city, it's good to have an experienced broker whether you're buyng or selling ... and it's good to know basic terminology.

Glossary of Terms

Abstract of Title
A historical summary of the recorded instruments and proceedings on the title of a property.

Air Rights
The right to use or control the space above a property. Air Rights can also be sold, rented or leased to another party.

Amenities
The benefits from home ownership, such as a feature that enhances value.

Appraisal
An estimate of the value of the property. One may have an appraisal to determine the offering price during a sale.

Assignment
The process by which a right or contract is transferred from one party to another. Assigned contracts include mortgages, leases and deeds of trust.

Broker
A state licensed sales agent who acts for property owners and prospective purchasers in Real Estate transactions.

Brownstone
A 19th century house which shares a common wall with the neighboring property.

Building Amenities
The assets that buildings offer its owners or tenants. These can include a doorman, health club, club, garage etc.

Building Restrictions
Requirements in building codes that affect the size and appearance of the building.

Capital Expenditure
An improvement that will have a life of one year or more and will increase the value of the property.

Certificate of Occupancy
In New York City, each building is required to have a Certificate of Occupancy which permits the structure to be occupied by members of the public. This means that the building is in compliance to health and building codes.

Closing
The transfer of ownership of a property from the seller to the buyer according to the sales contract.

Co-Broke
This is the term used when a broker sends out their listing to other brokers and other firms. The brokerage community then receives the listings and the commission will now be split evenly between the seller's broker and the firm that provides the buyer of the property.

Combination
Refers to when an owner combines two adjoining apartments into one to enhance the value and the space.

Commission
Payment to the broker for his or her efforts on marketing and selling the property it is usually a percentage of the total purchase price.

Commission Split
The sharing of commissions between the listing agent and the broker of the buyer.

Common Area
The area on the property or in the building that is available for use to all owners and tenants.

Comparables
Used in assessing or establishing the fair market value of a property, a property which has been sold recently that is similar in size, condition, location and amenities.

Condominium
A building where individuals own individual units but share common areas with the other unit owners of the building. A more liberal type of ownership than Coops, Condominiums also have more lenient policies regarding subletting and pets.

Contract
A legally binding agreement between two parties. To have a valid contract for the sale of Real Estate there must be:

•an offer
•an acceptance
•competent parties
•consideration
•legal purpose
•written documentation
•description of the property
•signatures of the principals


Conversion
Property changing to a different form of ownership, such as a condominium to a cooperative or a commercial building to a residential building.

Convertible
A one or two bedroom apartment that has space to make another bedroom. The other bedroom can be made with the construction of a wall; however, the new bedroom must have a window in order for it to be legal.

Cooperative
A type of ownership of property. This is when the individual unit owners own shares in the cooperative building and do not own the actual property. The amount of shares owned is determined by the value and size of the apartment. The cooperative building owns all of the units and the purchaser is buying stock in the building.

Deed
A written document by which title of property is expressed from one party to another.

Duplex Apartment
An apartment that has two levels.

Escrow
A state where consideration, benefits, legal rights, money, documents or other valuables are transferred to another party in advance of that party's legal claim to them, on the basis that the legal claim will arise at a given point in the future. It is a form of trust.

Estate
The word used to describe the collection of all assets of a deceased person. Also, the extent of interest a person has in real property.

Estate for Life
The interest of real property that ends with the death of a person.

Excellent Condition
This is used to describe the condition of the apartment; mint is another word for excellent meaning the apartment is in great shape.

Exclusive Listing
A contract whereby the owner of a property grants a single broker the right to market the property for sale.

Façade
The exterior front wall of a building.

Financing
Borrowing money to purchase a property.

Firm Price
An asking price for a property that is not open for negotiation.

Fixed-Rate Mortgage
A loan where the interest rate remains constant over the entire term of the loan.

Flip Tax
Tax imposed on the cooperative apartment by the cooperative, this tax can either be paid by the seller or purchaser and is usually a percentage of the purchase price.

Floating Rate
A loan where the interest rate is not fixed over the term but is allowed to vary according to the change in a specified index.

Floor Plan
A scale diagram of the arrangement of rooms and their sizes drawn by an architect.

Foreclosure
An enforcement process in which the lender under a defaulted mortgage takes title to the property for the purposes of selling it to recoup moneys owed under the mortgage.

Full Bath
A bathroom with a bath or a shower.

Grandfather Clause
If a new law is passed or an old is changed those people whose activity was legal under the previous law are allowed to continue because of this condition. This law is common with pets; some buildings that do not allow pets now, did in past, therefore, those owners are allowed to keep their pets.

Half Bath
A bathroom without a bath or a shower.

Interest Rates
The cost of borrowing money from a lender. Rates change over time and are set by the Federal Reserve.

Lease
A written agreement to rent a property or part of a property from the owner.

Lien
A legal claim against property for money owed.

Listing
The agreement that allows a real estate professional to market a property. Available apartments are also referred to as listings.

Loft
A loft refers to open living space that was converted from commercial space to residential space. Lofts contain very high ceilings, large windows and open space. In New York City, most lofts and converted commercial space is located downtown.

Lot
A measured section of land.

Maintenance
Monthly charges paid by the owner or tenant of a cooperative building for that person's share of costs of keeping the common-use portions of the building in good condition. This includes the daily cost to operate the building and it is calculated based on each individual unit.

Managing Agent
An independent company that is hired to manage a property. In New York City, most of the cooperative and condominium buildings are managed by a company which is responsible for the building operations. Brown Harris Stevens manages over 160 buildings in Manhattan.

Market Value
An estimation of the price for a property in relation to the current real estate market.

Mortgage
Money borrowed from a lender in order to purchase a piece of property. Mortgages vary in terms of length as well interest rates.

Negotiation
The process of discussing an issue between two parties who are working towards the same goal. Successful negotiation usually leads to a contract and then a sale.

Notarize
To verify the authenticity of a signature by a certified Notary Public.
Offer
An expression of the desire to purchase a property at a specific price. Once an offer is made and then accepted it leads to the purchase of the property.

Offer Accepted
The term refers to when the owner of the property agrees and accepts the offer and terms of the purchaser.

Open House
A specified time when a property that is for sale is advertised by opening its doors to prospective buyers. A broker advertises an open house to help the sale of the property.

Open Listing
A listing where the owner of the property hires more than one broker and only pays commission to the one that provides the purchaser.

Ordinance
A law enacted by the local government.

Penthouse
A luxury apartment in a high rise building.

Pied a Terre
A French term that refers to an apartment that is not the primary residence of the owner. A Pied a Terre is used when a person lives in another location and comes to New York several times a month or a few weeks a year to either work or enjoy this great city.

Post War
A post war building is one that was built after World War II.

Pre War
A pre war building is one that was built before World War II. Common characteristics of a pre war apartment are fireplaces, moldings and hardwood floors.

Property Tax
The tax issued on the ownership of property.

Points
A charge levied by the lender on the borrower for the mortgage for prepaid interest. Each point is equal to 1% of the principal of the mortgage.

Powder Room
Also known as a half bath. A powder room is a bathroom without a shower or a bath.

Quadraplex
An apartment that has four levels.

Referral
A recommendation made to a client about the services of a particular agent or firm.

Rental Building
A building where the apartments are only rented and not sold.

Rent Control
Laws that regulate the amount of money that is charged to rent out space.

Reserve Fund
An account reserved to provide funds for future expenses in order to maintain the cooperative or condominium building.

Sale Price
The amount of money paid by the purchaser to the seller. Also known as the purchase price.

Security Deposit
A payment required by a landlord to guarantee that the tenant meets his or her obligations under the lease and to guard against any potential damages that may be incurred during the term of the lease.

Shares
When one purchases an apartment in a cooperative building he or she is actually purchasing the shares in the cooperative. They represent the proportion of the building owned by the unit owner based on the size and value of the apartment.

Square Footage
The area measured in square feet of a certain property. Square footage can be measured in different ways and is usually considered approximate. Condominium apartments have specific laws that determine the way which the apartment is measured therefore condominium measurements are more accurate.

Sublet
The term used when an owner of an apartment decides to rent the apartment to a tenant.

Tax Deductible
An expense that reduces taxable income. Each year, shareholders in cooperatives apartments are able to deduct a certain amount from their personal taxes. The amount is determined by the amount of shares that are owned.

Term
A specified period of time.

Term, Amortization
The term in which the interest and principal payments of a loan must be made.

Title
The legal term for the evidence that the owner is in lawful possession of the land and property.

Townhouse
A townhouse is a private residence where at least one wall is shared with another residence. In New York City, townhouses are a very popular and a more private way of living.

Triple Mint
Refers to the condition of the residence. Triple mint condition means that the residence is in immaculate condition.

Triplex
An apartment that has three levels.

Unit
A single residence within a building.

Utilities
Services such as water, gas, electricity, telephone and television. Utilities in some buildings throughout the city are included in the maintenance charges.

Vacate
To move out and leave the property.

Walk Up Building
A building that does not have an elevator. Most walk up buildings are four to six floors.

Walk Through Inspection
The inspection of a property immediately before the closing to ensure that the property does not have any new damages.

Zone
An area set by local law for specific use with certain rules and regulations.

Working With Your Real Estate Agent

Finding the right home in Manhattan can take time and a lot of work. At times it can be overwhelming ...after all it's the most important decision you will make.

A licensed and professional Real Estate Agent can help navigate the process from beginning to end --- and even after your closing --- applying their expertise to your search to get you the results you deserve.

Using the right Agent can make all the difference between finding the home you have always wanted and frustration. Find an agent who can open the right doors for you. Find an agent who listens.

Look for an Agent, not a property since you'll be spending much of your time with this person, read agent biographies, request recommendations, even call to interview them. Communication is 80% of the process, so make sure you and your agent connect.

Share all requested information. Letting your agent know what you want is the first step to successful communication. Many factors play a part in the selection of properties for you to view and there are a wide variety of properties in New York City. Give your agent a complete picture of you and your needs to avoid wasting time looking at properties that does not suit your lifestyle. Make a wish list. You may not get everything on your list, but a good agent will work to get you as much of your wish list as possible.

When looking at properties, give your agent a piece of your mind.While looking at properties, let your agent know what resonates with you for each property. A good agent will consider all of the input you have given throughout the relationship when selecting properties to see, not just your initial requirements. Perhaps your reaction to a property will bring to mind another option they would have otherwise struck from the list. As you see more properties with your agent, they will get to know how they can best assist you.

Be Open. Never feel that you have to hold back in your assessment of a property, your assessment of a contract, or your feelings on a situation. Your agent is there to help you and the more they know, the better off you are.

Pick one agent to assist you. In Manhattan, every agent has access to the same group of listings through RLS (REBNY Listing Exchange Service) which acts similarly to the MLS. Working with multiple agents will just make more work for you, in that you will have to manage a team of people, field many phone calls and emails, learn of duplicate properties and make the search for your home all that more overwhelming.

Whether you're a buyer or seller, pick the agent who is right for you and work exclusively with them. Your agent works for you and if you choose the right agent for your needs, you'll find that the process of buying or selling a home is not nearly as daunting as you think -- because your agent will do all of the work. A good real estate agent is worth their weight in gold!

Why Hiring A Real Estate Agent Is More Advantageous Than Selling/Buying/Renting Yourself

According to the National Association of Realtors, 98% of real estate agents sell homes and close deals. Only 2% of all For Sale By Owners (FSBOs) sell on their own.

Home owners know their homes, thus the idea "we can sell it ourselves and save the commission."

But what do sellers really save?

And for buyers, the idea of viewing apartments on their own and making an offer is a breeze. How breezy is it when the seller isn't flexible or there are complications?

When you hire a real estate agent to sell your home or represent you in purchasing a home, you get a lot.

Real estate agents are thoroughly trained and experienced.

You might think you know a lot about real estate, but wouldn't you rather have a person who knows more than you do when selling homes and making that important decision to buy? Real estate agents are not emotionally attached to your home. Therefore they can negotiate on your behalf bringing you the best outcome.

If you're a seller, your agent can help you set the right price on your home that will cause your home to sell. Knowing supply, demand and the area's conditions makes a huge difference as to how long your home is on the market. Your agent will market your property on their company's web site which is likely to be visited by hundreds of thousands of buyers, and to all of the other agents in your area. Agents have various ways of marketing which result in a far greater reach -- bringing you more visits from buyers than you could ever generate on your own. Your agent filters serious buyers from shoppers and brings you qualified offers.

As a buyer, your agent knows the market. They set up appointments for you to see the best properties according to your specifications. They save you the leg work and negotiate on your behalf. Agents often can get you more for your money. You may be a negotiating pro, but, do you have real estate negotiating knowledge? Do you have the professional expertise that could make that home yours vs losing that home to another buyer?

As a renter, your agent has a pulse on the rental market in your area. They know what buildings are like, the neighborhoods, the amenities, and much more. Your agent negotiates the best possible lease for you. Your agent protects you.

Real estate agents have market knowledge.By looking at your newspaper and reading the Internet, you may think you know the prices in your neighborhood. Your professional agent has up to the minute knowledge of what's happening in your neighborhood. And ... they know your neighborhood's comparable properties and sales. They know market conditions and can present data and information to you that you would have no way of knowing, whether you are a seller, buyer or even renter.

Real estate agents work for you. Professional agents qualify buyers. Would you want an offer only to find out the buyers can't afford to buy your home?The paperwork of selling, buying or renting a home can be daunting. When doing this paperwork on your own, one mistake could be the most expensive mistake you've ever made. It could even have legal implications.

Professional real estate agents handle all of the necessary paperwork needed to make your sale, purchase or rental a successful and smooth transaction. A good agent is there for you every step of the way ... including being there for you after your closing.Whether you have questions or any issue related to your property, they re there to assist you.A good agent is worth their weight in gold. And that good agent will be there for you in the future or for anyone you refer to them.

Showing Your Home To Sell

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.

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
• If you have pets, be sure to vacuum away all pet hair and dander, remove kitty litter boxes, bowls of food and water, and spray your home. There should be no telltale signs of pets in your home.

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.

Remember ... a clean and uncluttered home that is attractive and inviting, is a home ready to be sold!

Add value to your home so it sells!