Its pretty much common knowledge that if you buy a home from a couple in the middle of a divorce you are likely to pay below market value for the property. Sounds great, right?
Not so fast....as with every "deal" sometimes things appear better than they are.
Often one spouse is anxious to sell while the other is just plain anxious. A lack of agreement as to the price and terms of the deal between the Husband and Wife can cause all sorts of delays and aggravation for the buyers. Sometimes one spouse has signed the Exclusive Right To Sell Agreement with the listing broker while the other has no clue that the home is even being offered for sale.
The best advice is to just do your homework. Find out if both parties have signed an agreement to sell and are both parties on the same page when it comes to their motivation for selling.
Often getting a great deal can be very expensive.
Dec 29, 2010
Dec 28, 2010
How to know when Mort Rates Hit Bottom?
...as soon as they begin to rise.
Well guess what? Mortgage rates in 2010 were the lowest in six decades, but a recent and sustained increase may indicate that consumers can expect to pay more in the new year to buy or refinance a home.
With this year's historically low rates there is a good change that we have peaked, giver or take a few basis points, the window of low rates may be closing.
So, what does this mean to you? Well if you have been waiting to refinance your current home or if you are ready to buy a new home as soon as mortgage rates hit bottom...well, Brother, its time to buy.
We have seen an uptick in the number of transactions we have done this December as compared to previous years. We believe that its because buyers expect rates to continue to rise in reaction to continued poor unemployment rates and they are buying now before rates go up any further.
Well guess what? Mortgage rates in 2010 were the lowest in six decades, but a recent and sustained increase may indicate that consumers can expect to pay more in the new year to buy or refinance a home.
With this year's historically low rates there is a good change that we have peaked, giver or take a few basis points, the window of low rates may be closing.
So, what does this mean to you? Well if you have been waiting to refinance your current home or if you are ready to buy a new home as soon as mortgage rates hit bottom...well, Brother, its time to buy.
We have seen an uptick in the number of transactions we have done this December as compared to previous years. We believe that its because buyers expect rates to continue to rise in reaction to continued poor unemployment rates and they are buying now before rates go up any further.
Dec 20, 2010
This apartment is how many square feet?
The tape measure does not lie....but, when it comes to measuring the square footage of NYC apartments, the tale told by the tape can be exaggerated, massaged, misrepresented and manipulated.
It can all add up to confusion, or worse.
Buyers often purchase apartments based on how many square feet the listing broker claims the apartment to be and the corresponding price per square foot. But, when the bank's appraiser comes in and it turns out to be significantly smaller, the price per square foot goes up and the lender says no.
There is implied precision but in reality the measurements are anything but precise.
Official oversight of square footage measurements is limited, according to real estate attorneys.
There are no requirements for coops and even with condos, where the Attorney Generals office oversees how the measurements were derived, discrepancies can still be found.
Unfortunately, there is not a lot that can be done to change things but you don't need to take the word of the other broker. Don't be afraid to take out your own measuring tape because....the tape doesn't lie.
It can all add up to confusion, or worse.
Buyers often purchase apartments based on how many square feet the listing broker claims the apartment to be and the corresponding price per square foot. But, when the bank's appraiser comes in and it turns out to be significantly smaller, the price per square foot goes up and the lender says no.
There is implied precision but in reality the measurements are anything but precise.
Official oversight of square footage measurements is limited, according to real estate attorneys.
There are no requirements for coops and even with condos, where the Attorney Generals office oversees how the measurements were derived, discrepancies can still be found.
Unfortunately, there is not a lot that can be done to change things but you don't need to take the word of the other broker. Don't be afraid to take out your own measuring tape because....the tape doesn't lie.
Dec 15, 2010
When to Sell and ....
....When to wait?
One of the main criteria used in determining the price of an apartment is inventory. The more competition there is for your apartment the less its worth to the buyers.
Currently, there is a shortage of well-priced, ready-to-move-into inventory. This is particularly true in the 2-3 bedroom category. Studios on the other hand are a dime a dozen.
If you have a studio you would be best served to wait six months until some of the inventory is bought up. On the other hand, now is a great time to list a larger property.
Timing is also important. Many sellers take their properties off the market during the holiday season. Listing yours now is a good strategy as you would be the big fish in the small pond of listings before inventory increases after New Years.
Happy Selling!!!
One of the main criteria used in determining the price of an apartment is inventory. The more competition there is for your apartment the less its worth to the buyers.
Currently, there is a shortage of well-priced, ready-to-move-into inventory. This is particularly true in the 2-3 bedroom category. Studios on the other hand are a dime a dozen.
If you have a studio you would be best served to wait six months until some of the inventory is bought up. On the other hand, now is a great time to list a larger property.
Timing is also important. Many sellers take their properties off the market during the holiday season. Listing yours now is a good strategy as you would be the big fish in the small pond of listings before inventory increases after New Years.
Happy Selling!!!
Dec 14, 2010
Are you a good tipper....
...or a bad tipper?
I believe that its not about the amount that we give but rather the spirit with which we give. This is especially so during trying economic times such as these. Giving a little with a nice note and a big smile is fine. Giving a lot is great...if you can afford it. Giving nothing to those whose daily efforts make our lives a little easier through out the year is inexcusable.
However...here are a few of my favorite excuses at reported by one of my favorite blogs...The Brick Underground.
1) They're just doing their job
2) I don't need a doorman
3) I just moved in here in October
4) I am moving out in January
5) I'm subletting, let the owner tip them
6) Nobody comes to my desk and tips me at the end of the year
Remember...don't take for granted the people that are there for you all year long.
I believe that its not about the amount that we give but rather the spirit with which we give. This is especially so during trying economic times such as these. Giving a little with a nice note and a big smile is fine. Giving a lot is great...if you can afford it. Giving nothing to those whose daily efforts make our lives a little easier through out the year is inexcusable.
However...here are a few of my favorite excuses at reported by one of my favorite blogs...The Brick Underground.
1) They're just doing their job
2) I don't need a doorman
3) I just moved in here in October
4) I am moving out in January
5) I'm subletting, let the owner tip them
6) Nobody comes to my desk and tips me at the end of the year
Remember...don't take for granted the people that are there for you all year long.
Dec 13, 2010
Tis The Season For Holiday Cheer and....
...Holiday Decorations in Your Lobby.
How big should the Christmas Tree in your lobby be? How big should it be in relation to the size of the Menorah? Should both the tree and the Menorah be lit at the same time? What about additional decorations? Who should make these decisions and since this is New York and no one is ever satisfied, who should deal with all the complaints?
Holiday decorations can easily become controversial because Christmas is both a national and religious holiday. People feel very strongly, pro and con, about all of this. There are many New Yorkers that can relay stories of screaming matches in the lobby of their buildings over the size, quantity and tone of Holiday decorations.
Some buildings have done away with it entirely, others form a committee to make the decisions and deal with the fall out.
New Yorkers are notoriously opinionated. But who knew that the holiday decor could be even more contentious than Yankees versus Mets or who makes the best bagel in town?
FYI....The Mets and H & H
How big should the Christmas Tree in your lobby be? How big should it be in relation to the size of the Menorah? Should both the tree and the Menorah be lit at the same time? What about additional decorations? Who should make these decisions and since this is New York and no one is ever satisfied, who should deal with all the complaints?
Holiday decorations can easily become controversial because Christmas is both a national and religious holiday. People feel very strongly, pro and con, about all of this. There are many New Yorkers that can relay stories of screaming matches in the lobby of their buildings over the size, quantity and tone of Holiday decorations.
Some buildings have done away with it entirely, others form a committee to make the decisions and deal with the fall out.
New Yorkers are notoriously opinionated. But who knew that the holiday decor could be even more contentious than Yankees versus Mets or who makes the best bagel in town?
FYI....The Mets and H & H
Dec 10, 2010
If You're Getting Ready to Buy a New Home....
....Read this first.
As I have discussed repeatidly on this site now is a perfect time to buy a new home. Interest rates are still really low and there is plenty of inventory. It a great mix for buyers.
However, before you do buy, take a look at these five things you should do in preparation...
1) Minimize your holiday spending and save your cash
2) Research financing, areas, homes, prices and agents...in short...become an expert.
3) ReHab your credit...if you need to
4) Run your numbers...be absolutely certain you can afford the homes you are looking at. A professional mortgage broker should be consulted for this one.
5) Interview several real estate brokers and select just one to work with
Enjoy your new home!
As I have discussed repeatidly on this site now is a perfect time to buy a new home. Interest rates are still really low and there is plenty of inventory. It a great mix for buyers.
However, before you do buy, take a look at these five things you should do in preparation...
1) Minimize your holiday spending and save your cash
2) Research financing, areas, homes, prices and agents...in short...become an expert.
3) ReHab your credit...if you need to
4) Run your numbers...be absolutely certain you can afford the homes you are looking at. A professional mortgage broker should be consulted for this one.
5) Interview several real estate brokers and select just one to work with
Enjoy your new home!
Dec 9, 2010
Where will the next pool of buyers come from?
That is the question of the season....
We had the vultures swoop in during the market's lows, then we had first time home buyers drive purchases, and most recently those looking to upgrade to larger homes have propelled the market forward, both in terms of volume and prices. Could it be that first time buyers may take the helm again next year?
If the rental market maintains its current strength through next year (landlord rental rates will inch up again), another wave of first time buyers is then a distinct possibility. This could expecially be the case of the renter runs a Buy vs. Cost analysis using current or slightly lower mortgage rates.
There is no question that when rents go up the move is to buy. Get an appreciating asset along with a tax deduction as opposed to throwing money away every month.
We had the vultures swoop in during the market's lows, then we had first time home buyers drive purchases, and most recently those looking to upgrade to larger homes have propelled the market forward, both in terms of volume and prices. Could it be that first time buyers may take the helm again next year?
If the rental market maintains its current strength through next year (landlord rental rates will inch up again), another wave of first time buyers is then a distinct possibility. This could expecially be the case of the renter runs a Buy vs. Cost analysis using current or slightly lower mortgage rates.
There is no question that when rents go up the move is to buy. Get an appreciating asset along with a tax deduction as opposed to throwing money away every month.
Dec 8, 2010
The Top 7 Construction Defects and.....
....How Not To Be A Sucker.
By now, I hope that anyone who buys a new condo understands that "new" doesn't mean "perfect". Every freshly minted building has problems that can range from buckling floors to cooling systems that sound like a Fresh Direct truck parked outside your window.
The types and frequency of defects have been pretty constant over the past decade and tend to cluster in 7 different categories:
1. Exterior Leaks
2. Windows that don't work
3. Sloppily installed or defective wood floors
4. Missing fireproofing
5. Bad ventilation
6. Heating and cooling problems
7. Inferior substitutions
Since most of us are not contractors and could not spot some of the above issues with out naked eye I strongly suggest that you hire a contractor to inspect the property prior to closing. The developer is going to be much more motivated to address issues in the apartment before closing as opposed to after you have handed him his money.
By now, I hope that anyone who buys a new condo understands that "new" doesn't mean "perfect". Every freshly minted building has problems that can range from buckling floors to cooling systems that sound like a Fresh Direct truck parked outside your window.
The types and frequency of defects have been pretty constant over the past decade and tend to cluster in 7 different categories:
1. Exterior Leaks
2. Windows that don't work
3. Sloppily installed or defective wood floors
4. Missing fireproofing
5. Bad ventilation
6. Heating and cooling problems
7. Inferior substitutions
Since most of us are not contractors and could not spot some of the above issues with out naked eye I strongly suggest that you hire a contractor to inspect the property prior to closing. The developer is going to be much more motivated to address issues in the apartment before closing as opposed to after you have handed him his money.
Dec 7, 2010
Information Overload
The real estate industry is awash in information, from blogs to market reports, and brokers are increasingly the ones left to figure out what makes sense, for themselves and their clients.
It can make them smarter and better brokers or leave them more confused.
The biggest problem with all this information is not that it exists but rather that its often contradictory. Many brokers are getting through this by ignoring all the opining and simply looking at dry data and doing the analyzing themselves. Its important however for brokers to always be students of the market because you never want your clients to know more than you do.
So, what to read becomes an issue as there are only so many hours in a day and so much available material to read. Industry publications are good but not the gospel. We as brokers need to scan all available materials and only dig deeply into that material which we feel relevant to our clients. By the numbers is a good place to start...understand the trends and know the stats for a particular neighborhood.
On one hand its great to have so much information at our fingertips...on the other hand...we often feel as though our hands are overflowing with too much information. Its a tough call...
It can make them smarter and better brokers or leave them more confused.
The biggest problem with all this information is not that it exists but rather that its often contradictory. Many brokers are getting through this by ignoring all the opining and simply looking at dry data and doing the analyzing themselves. Its important however for brokers to always be students of the market because you never want your clients to know more than you do.
So, what to read becomes an issue as there are only so many hours in a day and so much available material to read. Industry publications are good but not the gospel. We as brokers need to scan all available materials and only dig deeply into that material which we feel relevant to our clients. By the numbers is a good place to start...understand the trends and know the stats for a particular neighborhood.
On one hand its great to have so much information at our fingertips...on the other hand...we often feel as though our hands are overflowing with too much information. Its a tough call...
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