Buyers here are five ways to turn off a seller...

Buyers take note...there are a minefield of seller turn-offs you can trigger that hold the potential to keep you from getting the home you want at the best price and terms or to unnecessarily complicate dealings with your home's seller. Here are a few of the most common ones... 1) Trash-Talking. Keep your opinions to yourself. Once the house is yours you can make what ever changes you like. 2) Be Pre-Approved. No seller will take you seriously if you haven't already met with a mortgage professional and gotten your pre-approval letter. 3) Making Low Ball Offers. There was a short window of opportunity after the financial crisis when you could get some bargains. That window is closed. 4) Re-negotiating Mid Stream. This is just bad business and whether you are a buyer or a seller this practice will leave a bad taste in people's mouths. Buying and selling a home is a big undertaking. Do it right, do it properly and enjoy your new home.

As New Developments Mature...

...the oldies but goodies are looking better. Its not surprising that fresh new development inventory is not coming on line soon. Even as previously frozen projects thaw, their units are not likely to come on the market for at least another 12-18 months. This means that the oldies but goodies that have been on the market for a year or two are now beyond the 50% sold mark. Attracted by the newness and amenities that these developments offer, buyers have steadily eaten away at this inventory, with a significant pick-up over the last six months. Now that traditional lenders are therefore able to provide mortgages at attractive rates, those buyers who may have previously had a hard time qualifying for loans are swooping in to absorb what's left. If you're looking at new developments and thinking that you can continue getting double digit discounts full closing costs and freebies thrown in, think again. We're not in Kansas anymore.....

Yorkville is for Families

Yorkville, bounded by 72nd Street to the south and 96th Street to the north, and stretching from Third Avenue to the East River, has in recent years been popular among young professionals new to the working world. But an onslaught of development since the mid-2000's has removed some of the housing stock once favored by young, single people and replaced it with larger condominiums typically appealing to families. Yorkville's appeal to families is enhanced by its excellent public schools, as well as its many preschools. The Upper East Side, of which Yorkville is a part, also has some of the best private schools in the world. The neighborhood has two attractive parks....Carl Schurz Park and John Jay Park as well as Asphalt Green (an indoor sports facility) on 90th Street and York Avenue. Funny how neighborhoods change as the development changes. Or, is it the development that changes the neighborhood?

Why Rent when Studios are now $300,000?

There are a glut of studio apartments on the market right now and its driving prices down to levels we haven't seen in a while. When you calculate the monthly cost of a mortgage and carrying costs on one of these properties it hardly makes sense to pay rent.

If now is a good time to buy a studio, the converse must also be true: its not a great time to be selling one, especially if the seller hopes to get a high price. Its been years since studios in prime neighborhoods were priced this low.

What caused this? When the market crashed two years ago buyers that had been looking at studios were suddenly able to afford a one bedroom, no one was buying studios and so inventory began to rise. Now that prices have come back across most of the market there is still a large number of studios for sale.

Renters are suddenly becoming first time buyers and with any luck, as inventory shrinks prices will rise. After all, the real estate market more so than most industries is all about supply and demand.

Are there still DEALS to be had in Manhattan?

These days, few areas of Manhattan can be considered undervalued, despite fallout from the recent recession. Still, there are pockets of the city that haven't yet reached their full potential.

For instance, areas like Hudson Yards and Yorkville are a good bet for investment because of the massive construction projects underway nearby and the Second Avenue Subway respectfully.

Here are a few lesser known areas where value can be found...

Upper West Side, 90's: Major development of both residential properties and retail big box stores has vitalized this area and made the condos and coops nearby more valuable.

Northwest Chelsea: In recent years the construction of the High Line made West Chelsea one of the city's most expensive neighborhoods. But, travel a bit North, say from 24th to 34th Streets and there are still good values.

Co-op Village, Lower East Side: The Lower East Side is no doubt one of the hottest neighborhoods in the city. but its revitalization is new enough that properties can still be had on the cheap.

No one is going to ever claim that property in New York City is a bargain. However, with in the realm of what things sell for there are, as you can see, still some deals to be had.

Time to buy....

Investors return to the market place

Its been a couple of years since we have seen an influx of investors buying up properties all over the city....but we are welcoming them back with open arms.

Investors are more confident that the housing market has hit bottom and they are willing to take risks they weren't two years ago.

One big difference in the mindset of today's investors is that they are not looking for the quick Flip, rather, they are in it for the long haul. Buy cheap, hold on for a number of years and then reap the benefits of appreciation.

Rising rental rates are also motivating investors as it is becoming easier for them to cover their monthly expenses with higher rents.

Low interest rates also play a role in helping investors buy with cheap money.

Every few days I have been reporting to you that another segment of our market is flourishing again. Each one returned at its own pace and for its own reasons but most importantly, all segments have come back strong.

Business is booming again, it feels great.....is it time for you to buy?

Tribeca property moving fast

If there's one thing driving the Tribeca residential market right now, it may very well be the lack of market. Tribeca's inventory is 30% lower than it was at the peak and that is influencing how almost all properties are being perceived and how quickly transactions are taking place.

Open houses are packed, especially the larger apartments (two bedrooms and larger) and its not uncommon these days to see 30 or more potential buyers show up at an open house.

Of course, part of the reason there is so little inventory is because, unlike a few years ago, there are virtually no large new developments on the market in Tribeca today. That's because many of the planned projects in the pipeline stalled or failed when the economy soured, and because its extremely difficult to get funding for new projects.

Families are still flocking to Tribeca for its schools and neighborhood feeling. But, a new dynamic is helping to raise prices too...more and more singles are moving into the neighborhood.

Tribeca has always been a cool place to live. First by mostly actors, artists and models, then by families and now by Hedge Funders....its ever changing but one thing remains constant...prices are always on the rise.

Fixed Rate or Adjustable....

....Which is best for you?

In the years since the financial crisis, adjustable-rate mortgages, or ARMs, with their low initial interest rates that changed over time, have been considered riskier than fixed-rate loans and shunned by most buyers. But these days more people are being persuaded to give the loans a try.

This time around, lenders are rolling out more conservative ARM products with out the gimmicky extra-low "teaser" rates that adjust every six months, or the "pick-a-pay" and "option" features that allow borrowers to pay less than the monthly interest, only to be hit with a huge bill down the road.

An adjustable now is basically a prime product there been a comeback in their popularity which coincides with their becoming more conservative.

So....which is better for you?

What happens when Tax Abatements end?

Almost every new condominium that has been built in NYC over the past 15 years has whats known as a "Tax Abatement". Simply, this means that the incentives you to purchase in new developments by reducing to your real estate taxes on the property to practically nothing for ten years. After this period, the taxes on the condo go to current market rates.

Well, what exactly does this mean and should you be concerned?

Consider the apartment selected randomly from SteetEasy's Listings:
According to the tax statement, a junior-4 condo for sale at The Brompton at 205 East 85th Street is currently paying annual abated taxes of $3,234.
However, without the abatement taxes on this same unit would be approximately $13,000 annually.

So, moral of the story....if you buy in a new condo beware of when the abatement ends. It will not only effect your monthly budget but will have an effect on your resale value too as you get closer and closer to the end of its term.

Bill Clinton no longer the Savior of Harlem

When Bill Clinton arrived in Harlem on a sweltering summer day in 2001 Governor George Pataki proclaimed it William Jefferson Clinton Day in New York. Thousands of people flooded the streets to see the ex-President in all his glory.

Its therefore impossible to overstate the news that America's first black president is leaving the hood. But its true...The Clinton Foundation has moved downtown to 77 Water Street in the heart of the Financial District.

As an example of how things have gone for the past few years, the rent was actually more expensive in Harlem then it was downtown and in a touch of irony, President Clinton having spent the last ten years in Harlem is in large part why the prices have gone up causing him to move.

Mr Clinton will maintain a small office in the 8,000 square foot space but after all, he can spread some of that love around. And, as for economic reform, it sends a very strong message that he is moving downtown.

Where is all the affordable housing?

We're not there yet but it seem inevitable that one day soon people will be asking..."where is the affordable housing?"

New York city is losing affordable housing at an alarming rate and needs new laws to protect whats left according to Assembly Speaker Sheldon Silver. "if we do not act quickly to extend our rent laws millions of working New Yorkers could lose their homes."

Landlords sing a different tune...they are speaking about the increase in the cost of heating oil, insurance on the buildings (especially hi-rise bldgs), and increases in real estate taxes. Who, they ask, is going to make up these costs?

And so it goes...landords and tennants all in need of help from the state government. But what about new construction? No one is building apartments for low or middle income housing, there just is no profit in it. So, as more and more affordable units get more expensive there is very little time left until we hear the question....where is all the affordable housing?

NYC Apartment Living is Great....

...except sometimes for the neighbors.

Living just steps from your neighbors is often a little too close for comfort. Especially in newer buildings with thin walls separating you from your privacy.
We frequently hear stories of residents that know how many times their neighbor has sneezed that day or worse, how many times they have gotten up at night to go to the bathroom.

Here are a few "favors" you may gets asked and if you do.....RUN!

Tristan and I are going away for the weekend. Would you mind looking in on Clover and Daisy?

Translation: Hopefully you are not allergic to cats and are ready to get scratched and bitten.

I heard you have done lots of work to the apartment. I would love to see what you have done with the space.

Translation: We live in the same line and just because you hired an architect doesn't mean I have to.

We are having a party on Friday night. Let us know if its gets too loud.

Translation: Earplugs, Ambien and Nyquil might be your best option if your are planning to sleep.

Ah Yes, Apartment living....its still better than the burbs!!!!

Rents are on the Rise....what to do?

Buy...Buy...Buy!!!!

Renting an apartment in Manhattan is only going to get harder from here according to a new report released Wed. Rents are up, Landords are no longer offering concessions and the vacancy rate remains low.

Tenants will have to recalibrate their expectations because the harsh reality is renters better act or they are going to regret it.

All of this being said...interest rates are low, sale prices have come down, inventory is up....

Time to buy.....

Townhouse Sales Make a Big Comeback

The Manhattan townhouse market picked up sharply last year according to a report released Monday that confims residential data released last month by other brokerage firms.

Last year, 196 townhouses were sold, up 61% from 2009. Single family homes led the surge with sales activity soaring 68% in 2010 from a year earlier.

Prices are starting to pick up but there is a lot of inventory. Buyers have plenty to choose from and can still get great value in the marketplace. With the level of activity we are seeing right now we feel optimistic about the market.

One last point...the positive news from the job market last week is good for not only townhouse sales but all real estate. Its going to be a great spring.

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Life Returns to the Luxury Market

For months, New York City borkers have been saying that sales in luxury real estate, the last segment of the market to back away from the edge of a cliff, were rebounding. But one wek sales were up, one week they were down. One month up and one quarter down.

But now even the most conservative of market watchers are looking at a surge in contracts signed in February. 70 properties of $4,000,000 or more went into contract last month, the most in any single month since Jan 2007. These numbers are hard to dispute even when factoring in the miserable winter weather we dealt with in January.

Wall Street Bonuses, which typically drive high end sales from the start of the year through the spring, were down over last year, but total compensation is up, which could partly explain the increase.

Bottom line is that consumer confidence is on the rise while prices and interest rates remain very low.....the perfect storm...make that the perfect Luxury Storm.

Open House Still Sell Homes

We live in a world filled with technology. Our hand held devices can get us any piece of information we need at a moment's notice. The whole world seems to change daily...but some things stay the same.

For as long as anyone can remember sellers and their brokers have been conducting open houses on Sunday afternoons. Buyers enjoy the convenience of being able to see as many homes as they choose with out having to schedule specific appointments with each one. Seller have the convenience of being able to have (hopefully) a large turnout of potential buyers all at one time. This is not only a time management move but also, if there is a big turnout it may create some sense of urgency in the buyers.

As much as things change, some things stay the same. Open Houses sell homes.

When the Appraisal is Too Low.....

...What is the buyer to do?

What exactly are your options when you are in contract to buy an apartment and the appraisal comes in too low?

A new appraisal is one option but usually not a viable one as the banks typically wont order a second appraisal.

A better option is to speak with the appraiser. Make sure he knew about all of the amenitites, make sure he got the square feet correct and show some other listings that are currently on the market at the same or a higher price. Bringing some of these "comps" to the appraisal is a pro-active way of avoiding a low appraisal.

At a certain point its comes down to the buyer asking for the seller to reduce his price in order to fall in line with the appraiser. Although seller's dont like this they often realize that they have no choice, unless they can find an all cash buyer.

Land Lease Buildings...Buy or Avoid?

Buildings are considered "Land Lease" when the coop or condominium do not own the land that the building is sitting on. This adds an additional expense (rent on the land) to the building causing maintenance to be significantly higher than similar buildings that are not Land Lease.

In addition, if there is less than 30 years left on the lease (most start with a 99 year length) banks will not write loans for apartments in the building.

So, why then would anyone buy an apartment in a Land Lease building? VALUE!!!!

In order to sell these apartments the sellers must incentivize buyers to buy and the way to do that is to lower the price....the more drastic the cut in price the more likely the seller is to sell.

At a certain price the high maintenance stops being an issue and the apartment sells...its always about the price.

Is He Your Manager or Your Competitor?

There has always been an unwritten rule in the real estate business that managers manage and sales agents sell. As soon as the line is crossed the agents are the ones that suffer. They are now competing with their manager, presumably someone with significantly more experience and, they getting assistance from a busy manager becomes even more difficult.

Sales agents need to be careful and be sure to ask the question when going on an interview. If the firm you have been at for some time is now allowing its managers to sell....due to economic conditions many of them are....its time for you to find a new firm to work at....