Conducting Open Houses.....Correctly

One might think that conducting an open house is as simple as being there on time and opening the door for all the visitors. Well my friends, nothing could be further from the truth.

Conducting an open house....correctly...is an art form. Many experienced agents have their own styles and props. One agent I know always puts an apple pie in the oven at a low flame to fill the home with just the sweetest of aromas. Another always puts small bouquets of flowers through out the home for color and smell. Always have "the game" on the TV; this keeps the husband engaged and gives the wife time to really look around without being rushed.

There are some basic guidelines...always get there 15-20 minutes early. If its a dark apartment turn on all the lights, if its a sunny apartment open all the blinds and curtains. If the apartment is messy clean it up, if the apartment is cluttered move things about. Accent the positives and hide the negatives.

Make sure the owner(s) are not there, no one will speak candidly about the apartment in front of the seller. Make sure your Show Sheets make the apartment look great. Have a sign in sheet and be sure that everyone that signs in does so legibly. Know what the competition is. Buyers are not only looking at your listing, they are looking at lots of others too...how does yours compare in terms of size, renovations, light and price?

An open house is a valuable tool and used correctly will help speed up the sale. Taken for granted it just a way to kill a few hours on a Sunday.

Its Called The US Open but......

....Its really a New York City event.

I was walking up West 57th Street today on my way to work and passed a Hotel where many of the athletes must be staying. Outside were buses and vans with pictures of the Williams Sisters, Nadal, Federer and other well known faces. Young men and women in warm up suits carrying a dozen or more rackets waited to board and head out to Flushing Meadows for day three of the tournament.

The US Open is a world wide event, players come from many different countries, all with the same dream...to go home with the most prestigious trophy in tennis. Spectators also fly in from all over the world. Fans of tennis and fans of the spectacle itself. Each day the stands are filled with celebrates, politicians and royalty.

The real fun is not always on the court, the shops, restaurants, bars and activities in and around the stadium are often just as big a draw as the matches themselves.

But, the real fun comes at night, when the matches are over and the crowds head back to the city. Its a party that lasts for two weeks and Manhattan is always proud to host.

Frequently on this blog I speak about my passion for this city, I speak about the reasons I love living here so much...well the US Open began this week and for the next two weeks my beloved city will shine even brighter than usual. ENJOY!!!

Is Manhattan RE part of the USA?

The WSJ recently observed that in comparison to the country as a whole, Manhattan is a global city made up of residents and investors from all over the world. Unlike "Main Street, USA" which is more bland by NYC standards. Extreme wealth from all over the world descends on Manhattan where inventory is always light since this is an island with very little room for continued expansion and growth.

This opinion by the WSJ stems from the fact that while doom and gloom continues to haunt the housing market nationwide, NYC prices have risen 14% in the past 12 months, inventory is down and closings are up. We are an anomalies unlike any other housing market in the country.

Its why I wake up in the morning anxious to go to work. Running a large residential brokerage in "The City" is a real privilege and a great way to make a living.

Need a job? Want to have fun? Join Bond New York Properties, LLC

Progress for the future is tough going today

After decades of discussion, the construction of the Second Avenue Subway is underway. Once its completed, years from now, it will be a huge boom for coop and condo owners on York, First and Second Avenues that have been penalized because their walk to the 6 train is so far.

On the other hand...building a subway is a messy job and right now Second Avenue looks like a war zone. Retailers up and down the avenue from East 96th Street to East 63rd Street are suffering. Sidewalk cafes are closed, hair dressers, dry cleaners, bars and restaurants have all become almost invisible behind the huge pieces of equipment and safety walls.

The city is supposed to be helping all these small business owners but the funds have been slow in coming. Meanwhile, employees are losing their jobs, stores are closing up and landlords are sitting with empty and un-rentable store fronts.

The long term goal is great but the short term results are awful.

I Love New York City

All of us that live in New York City have a list of reasons why we love it so much. There are the standard answers....convenience to work, night life, culture, being able to get absolutely anything delivered to your front door at almost any time.

Well this weekend I was the consummate Manhattanite....First I participated in an event called "Summer Streets". The Dept of Transportation shuts down Park Avenue and Lafayette Street from East 72nd all the way to and over the Brooklyn Bridge. Participants can bike ride (which is what I did), jog, roller blade or walk the approximately 2o mile route which snakes through a dozen different neighborhoods. The streets were packed with participants and the sidewalks with spectators...a really fun NYC way to begin the weekend.

Next, I got on the Long Island Railroad and took a 1 hour ride to Long Beach. There was a crafts fair on the boardwalk, the water was warm and the waves were just the right size.

Then, back to the city for dinner with friends. Sunday was cloudy and windy so it was off to the Third Avenue Street Fair for some roasted corn on the cob and chicken in a pita.

Relaxed the rest of the weekend away on my couch and then this morning ordered in some breakfast while I got dressed for work and then walked to my office to start the week fully refreshed and loving NYC.

What are your favorite reasons that you love living in The City?

A Total Gut Renovation

Normally, when we hear the phrase "gut renovation" we think of an old broken down home or an apartment that hasnt been updated in many years. Well, here is a new definition of the phrase....the TV show "What Not To Wear" is looking for some NYC Real Estate Brokers whose wardrobe could use a Gut Renovation.

Frankly, this idea is long overdue. Too many of the agents in the city come to work in jeans, t-shirts, flip flops or shirts that look like they slept in them. What ever happened to "dress for success"? I am all over this new idea. In fact, I have a whole list prepared of agents that I personally know whose wardrobe could use a major gut renovation.

I wont mention any names on this sight...but...one of my favorites...and he'll know he's being spoken about....likes to come to work in a red t-shirt, black worn out jeans, flip flops and a black blazer....classic!!!!

We are supposed to be professionals and I believe we should all dress as professionals. I applaud "What Not to Wear" and they can expect my suggestion list by end of business today....

Taking a 2nd, 3rd, 4th and often a 5th look

Time was that you had a few minutes to look at an apartment before making an offer. Then, you were given a short window of time for your attorney to review the contract of sale and have you sign on the dotted line. You want to take a second look before committing hundreds of thousands if not millions of dollars? Sorry, no can do.....NEXT!!!

Well, as you know from reading this daily blog, times have changed. It is not uncommon these days for a buyer to take a second look before making a decision. And then to bring their parents up just to be sure, then, just one more showing for the college roomates. But wait, they also want to have a contractor come up to give an estimate on how much a new kitchen is going to be.....HAHA....no joke....And, what is a listing broker to do? You cant say "Stop, no more showings, just sign the darn contract". If you do, the buyer is off and running to find another apartment and you are left to start all over again.

I have spoken before about how Real Estate is cyclical and the days of just one showing will be back. When? No one knows for sure but one thing we do know.....bring all your friends and family to see the apartment now because sooner or later it will be "one and done".

Create Jobs...Sell More Homes

Ever since the collapse of the economy at the end of 2008 the focus has been on the creation of new jobs. Most of the Stimulus money went to local government to hire workers that would build roads, repair bridges and so forth. Its working to a degree, a lot of people that had been unemployed are now working and so long as you don't need to drive from point A to point B through six construction sights you're OK.

But, the reality is that we still have a long way to go before the jobless rate is at a respectable number. Most experts agree that the best way to get the economy going is to help small business grow. Small, locally based businesses hire workers from with in their own community. The money that they earn is then spent right there at the shops and stores with in that same community. Homes are bought and renovations are done after buying materials at the local hardware stores. Its a cycle that works and that the government should be spending more time focusing on.

A great example of how this works is the Brooklyn Brewery. A locally based business that is about to begin a $4,500,000 expansion. $800,000 of this money came from the state government and is being used to hire an additional 27 employees. These newly hired workers will continue the cycle of growth my spending a portion of their pay on locally based businesses.

Perfect...So here's to you Brooklyn Brewery...a Toast to your continued growth! Cheers.

Mortgage Turndown? Its not You!

We've all heard about people getting turned down for their mortgages, often at the final hour. But what you probably dont know is that more often than not, the turn down is not because of the buyer but rather because of the building.

One of the outcomes of the financial crisis and reorganizing of the banks was that the building that a coop or condominium unit is located in is coming under much more scrutiny. No longer will banks write loans if the building has a large number (more than 25% of the residents) renters. The owner occupancy rate must be 75% or more. In new buildings, more than 50% of the units must be in contract before a loan can close.

We are beginning to see listing brokers advertise properties as " Cash only purchases". This is not because the seller is looking for a quick and easy deal but rather because the listing broker knows that financing on this property will be nearly impossible.

One suggestion to avoid the risk of a building not measuring up is to have your mortgage broker research the building before you negotiate the price. And remember that in good times or bad cash is always the best offer.

Make the Licensing Process Tougher

Many of us in the real estate business have been lobbying NY State for years pleading with the powers that be to make the process of becoming a licensed sales agent more difficult.
Currently, thousands and thousands of candidates take the 75 hour course each year, take a class exam and then a significantly easier State exam and poof, they are licensed professionals.

That's when the problem begins. Many of these newly licensed professionals have never worked in a sales environment before, have no knowledge of finance which is so crucial in a sales transaction, don't have the proper communication skills to be able to carry on a conversation with an attorney or mortgage professional.

The average apartment in Manhattan right now is selling for $1,200,000. That means that the average buyer is successful, professional, educated and well read about market conditions. Shouldn't his real estate broker be too?

Selling Coops and Condos in Manhattan is a tough way to make a living, its only made tougher when students get licensed with a minimal amount of knowledge and a lot of hope that things will work out. They usually don't and as a result this is one of those businesses where 20% of the agents make 80% of the money. It doesn't have to be, but the first step is up to New York State.

Time to Get Creative

Back in the good ole days, you know, all the way back in 2007...all you really needed to do to sell an apartment here in the city was to conduct an open house or two. The buyers would flock to your door, offers would follow and by the end of the week, deal done.

With the real estate market on the upswing after the deep freeze of the recession, buyers are coming back. But, agents are discovering that these buyers, many of whom are lured by reduced prices and low interest rates, are often very different from boom-time buyers.

That means brokers must now find ways to target this new audience.

"Its all about getting the people that are in the market to become familiar with a particular property". Today, brokers are sponsoring Pee Wee Leagues, bake sales, buying doctor's directories and spending a lot of their time figuring out other creative ways to reach the latest crop of buyers.

First time buyers, generally young, getting help from mom and dad have replaced the Wall Street Hot Shots with their million dollar bonuses. And, families of four or more have replaced the European crowd buying property for 50 cents on the dollar because of the strength of the Euro.

Its a brave new world out there on the street. The good news is that deals are being done and the even better news is that its not so easy anymore and we actually need to be good at our jobs.

How to Get Your Dog Past the Coop Board?

I believe that I am fairly safe in saying that only in NYC would your dog need to be interviewed prior to you and your family being approved to move into an apartment you paid almost $1,000/foot for.

Getting your dog past the Coop Board has become a hot topic in the city. There is actually a new company called "Its a Dog's Life" that for $175/hour will coach your dog through the interview process. Topics such as The Doorbell Test, Grooming and Does Your Dog Make The Weight (certain buildings have a maximum weight limit) are commonly addressed.

According to Elena Gretch, the owner and founder of Its a Dog's Life, most boards just want to know the basics such as is the dog friendly, does it bark, can you hold it and does it bike? Usually, says Gretch, if you can get past these concerns you should have no problems.

I love dogs but right now my gold fish are looking better and better.

Shelter Shock

One of my favorite real estate blogs, Brick Underground, provides its readers with the "Word of the Day". Today's word is Shelter Shock.....Shel ter shock-n. post-vacation readjustment to the compact proportions of a New York City apartment.

Using it in a sentence.....

Newly returned from Sag Harbor to his Midtown one bedroom, Chris knocked over a nightstand, impaled his forehead on the coat rack and nearly decapitated the dog with a beach chair before his shelter shock passed.

Its no surprise that we Manhattanites give up space in exchange for convenience. But, we often underestimate just how much space we give up in order to live the city lifestyle. My brother lives in Houston and has a closet that is bigger than most studio apartments. Making matters worse, his is the small closet, his wife has the big one!!! On the other hand, can he order in a five course meal made up of five different nationalities from five different restaurants all at the same time?

NYC Still The Wild West

In most parts of the country, in fact in all parts of the country except NYC, when a buyer and seller of a home agree to the terms of a deal, including the price, the property is then taken off of the market. Typically, the buyer gives the seller a nominal amount of money up front, usually a couple of thousand dollars and both parties sign a "Binder". This is basically an agreement stating that the buyer has 10 days to have the property inspected and to do what ever other due diligence he wants to do. At the end of the ten days either they sign a contract of sale or the buyer backs out and forfeits his binder money. Its fair, its civilized and it works.

In NYC the rules are a bit different, in fact, one might say that there are no rules. How it differs lies primarily with the Seller. The Seller or his listing broker continue to market and show the property while the buyer is doing his due diligence. The rationale is that the seller is protecting himself in case the buyer finds something wrong with the property or simply changes his mind. However, what often happens is that the seller receives an alternative offer which is higher than the agreed upon price. The first buyer is then pushed aside in favor of the second buyer with the higher price....unless of course the first buyer wants to increase his offer. When you are the buyer or the buyer's broker this can be an infuriating situation. But, when you are the seller or are representing the seller you smile all the way to the bank.

Moral of the story...Time Kills Deals...once you have an accepted offer get the contract signed asap.

Sales Fade in July Heat

When you start out in the real estate business one of the first things that you learn is that when a customer wants to go out and look at property in the snow, freezing cold, pouring rain or extreme heat it means that they are a "real buyer". Well, even many of the real buyers were done in by the constant record setting heat that much of the North East had to endure in July.

The Spring buying season was brisk, March and April were incredible months, May and June were not far behind. Then, someone turned on the oven and we all ran for cover. Well, July is over and hopefully so is the heat...at least the extreme heat. We brokers fully expect business to pick right up where we left off at the end of June.

Some tricks of the trade when it comes to selling property in the dog days of summer...conduct your open houses in the evening during the week. Most buyers (and their brokers) are away at the beach on the weekends. Have the AC cranked up high so that when people visit your home they feel a sense of relief the minute they step inside. Offer potential buyers a glass of cold water. If you are a nice person you must live in a nice apartment. Lastly, if you have outdoor space, make it look special, adding plants and flowers always helps. Outdoor space in the summer can add a lot to the purchase price.

Manhattan Condo Sales Nearly Double

According to the Wall Street Journal, Condo prices in NYC rose 6.7% in June as compared to June 2009. The fact that Condo prices continue to rise in a large number of Manhattan neigborhoods is just one more indicator that we are well under way to recovery.

Sales activity nearly doubled in June from a year earlier when Manhattan sales transactions dropped to the lowest level since early 2000.

The Financial District poste the biggest change in June. Prices rose 35% from a year earlier to an average cost per square foot of $868.00. This comes as a big surprise as it was just a few months earlier that the Financial District was reporting very sluggish sales activity. However, once again we see that its all about price. As prices of Condos began to drop the number of transactions began to rise.

Remember, its not the seller or the seller's broker that determines the price of an apartment. Rather, its the Marketplace.

For the Dog With Everything

We have all seen the well dressed dogs of NYC. Pooches in designer clothes, raincoats, boots, Halloween costumes and more. We laugh when we walk down the street and notice that often the dog's wardrobe is more expensive than our own. In fact, the pet clothing industry is now reported to be a 14 Billion dollar a year industry.

In a city where the real estate is some of the most expensive in the world we have carved out little parks specifically for our pets called Dog Runs. There is actually one on the Upper East Side that is tiled with green glass tiles like those found in an upscale condo's bathroom.

But now, just when you thought you had seen and heard it all comes more....a dogie night club. I kid you not....The Fetch Club...located at 85 South Street....is a 13,000 sq foot resort, spa and night club for dogs. They offer home cooked meals, sauna, tennis balls fired by a machine (you just cant make this stuff up), treadmills and bottled water of course. At night the spa turns to a nightclub for the dogs....members only please, memberships are $300.

Just one last question...if my little guy wants to bring me in with him who do I need to pay off to get on "The List"?

Deal Makers and Deal Breakers

For as long as I can remember we brokers have referred to Real Estate Attorneys as either Deal Makers or Deal Breakers. More often than not the deal breakers were those attorneys that did not handle real estate transactions on a regular basis. Rather they were litigators or personal injury lawyers that for this one transaction were just doing a favor for a friend....usually it ended up in disaster.

But these days despite the number of transactions getting done here in the city, there are a whole new list of issues that can easily become a "Deal Breaker". The following is a list of 10 factors that often sabotage a deal. For the solutions to these problems log onto www.therealdeal.com and click on the icon that says "magazine".

1) Inaccurate appraisals. Voted by real estate professionals to be the biggest issue today.

2)Deal Killing Attorneys. A personal pet peeve of mine, its just so key that you convince your client to use someone that has experience doing Manhattan Real Estate transactions. Would you hire a podiatrist if you needed heart surgery? Heck, they're both doctors!!!!!

3)Spooked Buyers. This normally happens when an excited buyer goes into the office to announce that she found the perfect home to buy and her best friend who is still living in a forth floor, rent controlled studio says.....now is not the time to buy, you must be crazy....UGH!!!!

4)Mortgage Snafus. Ever since the banking collapse this has been a big one. Go with a mortgage professional that you know and trust.

5)Greedy Buyers. Stand by the deal that you made. Re-Negotiating after the fact or at the closing is never a good idea and very rarely works, in fact, it has at times back fired and the deal has died.

6)Zoning. Not so much of an issue here in Manhattan but in the suburbs can cause problems.

7)Fluctuating stock market. A turbulent market causes fears in all parts of the economy and fear is a great motivator.

8)The Bonus Stigma. Coop boards don't like the uncertainty of applicants that work for a small salary and a large bonus.

9)Bank Delays. Don't even get me started on this one. I cant tell you how many times we have received a call just days before the closing letting us know that the bank now needed more information.

10)When the building doesn't measure up. Over the past twelve months the majority of buyers who had trouble obtaining a loan blamed had said that the banks had turned the building down, not the buyer.

So there you have it...be prepared and surround yourself with the best professionals available the kind of people that are Deal Makers.