Contact me here for assistance with buying or selling a home in Manhattan and Brooklyn.
10 Year Upper West Side Condo & CO-OP Sales Reports are now available and may be accessed below;
Contact me here for assistance with buying or selling a home in Manhattan and Brooklyn.
OVERVIEW:
OVERVIEW:
There are so many things to consider when you’re shopping for an NYC apartment to buy: budget, location, unit size, building age, amenities, and the list goes on. One of the key decisions to make before starting the search is what type of ownership you are looking for: condo or co-op. Which one you choose
f you’re in the market to buy but think you’ll just go it alone, read this first.
In any real estate sales transaction, there’s a buyer and a seller, and in most transactions, a real estate agent represents the seller in the sale—a seller’s agent. The seller’s agent is responsible for marketing the property and representing the seller’s best interests in the transaction. That doesn’t help you. When you engage the help of an agent, a buyer’s agent, you’re locking in your own representation. A buyer’s agent is there to fully represent your interests so you can feel confident that you’re getting the best deal. Unless unavoidable, you wouldn’t go into court without a lawyer, and the same is true about buying a home. It’s important to embark on the search for a new home expertly prepared and armed with the highest level of support possible: a buyer’s agent.
Real estate agents earn a commission from a sales deal, but what many buyers may not realize, is that it’s the seller who typically pays the commission, not the buyer. This is a point worth repeating: working with an agent is usually at no cost to the buyer, meaning that financially speaking, there’s no downside. There will be plenty of costs and fees throughout the buying process for which you will be responsible (e.g. attorney fees, appraisal, down payment), so take advantage of an invaluable resource that generally comes without a price tag.
As the title “first-time buyer” suggests, you’re charting unknown territory. So why go it alone when you don’t have to? Choose an agent who specializes in (or has significant experience in) working with buyers, as he or she will be able to expertly guide you through the process. Your agent will be able to tell you what to expect starting at the very beginning, what type of paperwork will be needed, common obstacles you may run into, etc. Let your agent use his or her transactional experience to guide you. That’s an agent’s job!
But let’s back up. Before beginning your search, it’s important to understand the market’s inventory. Your agent will walk you through the different types of NYC properties: condo vs. co-op, new development vs. resale, pre-war vs. post-war, etc. If you aren’t familiar with the city’s boroughs and neighborhoods, your agent will also be able to talk to you about—and help you explore—your options. Determining a target borough and neighborhood will allow you to focus your search.
While the down payment is generally the largest fee a buyer pays, there are several other fees to be aware of, for example, attorney fees and closing costs. Though less substantial, they can add up, and it’s important to be familiar with the fees for which you’ll be responsible before you take out your checkbook. This is another area in which your agent will assist. He or she will walk you through all of the costs involved in buying, so there are no surprises later on.
Are you well-connected to the brokerage and landlord communities? No? That’s fine—that isn’t your job. In addition to knowing about on-the-market availabilities, real estate agents are aware of properties that aren’t widely known about. Through connections with past and current clients, other brokers, and industry professionals, agents are often aware of options unknown to other consumers. Working with an informed agent ensures that you have access to all available (and soon-to-be-available) apartments.
If you decide to work with a stylist, you expect him or her to come up with the vision, bring you plenty of options, and help you put together a look that makes you feel stylish and confident. Think of a real estate agent in the same way. The job of a buyer’s agent is to handle all of the legwork involved in buying a home. This includes looking for apartment options, setting up appointments for you to view homes of interest, communicating with the agents representing the properties, and more.
You’ve finally found the right place and you’re ready to make an offer. Lean on your real estate agent for guidance throughout the offer process. He or she will be able to help you put together a strong offer that you’re comfortable with, and will negotiate if necessary on your behalf. It isn’t your job to go back and forth with the seller or seller’s agents. It’s your own agent’s job to understand and respect your budget, and get you the best possible price on the home you’re after.
Contact me here for assistance with buying or selling a home in Manhattan and Brooklyn.
OVERVIEW: LOWER PRICES AND RISING INVENTORY
OVERVIEW: FEWER SALES AMID MARKET UNCERTAINTY
There are so many things to consider when you’re shopping for an NYC apartment to buy: budget, location, unit size, building age, amenities, and the list goes on. One of the key decisions to make before starting the search is what type of ownership you are looking for: condo or co-op. Which one you choose largely depends on your future plans (and preferences), so we’ve outlined a few of the major differences between co-ops and condos so you can see how they fit in with your needs.
First, let’s get some clarity on what the words actually mean…
A condo is a building in which individual apartment units are separately owned, while common areas are jointly owned. At closing, you’ll receive a deed. Condos make up about 25% of Manhattan housing inventory, and they typically have flexible rules allowing owners to control who rents their apartment and when.
A co-op building is owned by a corporation. Co-op owners don’t technically own property but rather shares in the corporation/building; the larger the apartment, the more shares they own. At closing for a co-op, the buyer will receive a proprietary lease as opposed to a deed. Co-ops make up about 75% of Manhattan housing inventory, and they require board approval for rental applicants. This means that co-operative rental applications are lengthier than condo or rental buildings since applicants must wait for the board to meet in order to review their applications. Owners of co-operative units must typically live in the unit for at least two years before being permitted to rent it out with board approval.
The road to co-op ownership can be long one, due to the application and approval process. Purchasing a co-op requires a buyer to submit a lengthy board package of detailed personal and financial information, followed by an interview with the co-op board, during which members of the board will ask questions related to the application. Condos generally require that buyers reveal less information, so if that’s important to you, it’s worth considering.
In terms of price per square foot, co-ops are generally less. To give you an idea of the variance, in February 2019, Manhattan co-ops saw an average price per square foot of $1,096, while Manhattan condos averaged $1,876. While condos are typically higher in price, buyers can often put down just 10% for the down payment, as opposed to the minimum 20% that co-op buyers face.
Purchasing a home as an investment property often means the buyer plans to rent out the home and generate rental income. If that’s something you’re considering, a condo may be a better fit. The rules about how long you can rent out your home, and how soon you can rent it out after purchasing it, are generally more lax for condos. Most co-ops, however, require owners to live in the home for several years before they can rent it out, and then the co-op board would need to approve it.
Are you going into the purchase knowing you will eventually want to renovate? Or are you someone who likes to make frequent changes to your space? The extensiveness of your renovation project(s) may influence whether you choose a condo or a co-op. Your plans will need to be reviewed and approved by a condo or a co-op board, but condo boards have the reputation of being more lenient when it comes to signing off on home updates.
A co-op board interview can be among the most stressful aspects of purchasing a home in New York City. The application process requires revealing all of your financials, submitting a lengthy board package, and meeting with the board to answer personal questions—after which the board can turn you down without giving a reason! The good news is that getting to the interview means the board has already reviewed your financials and considers you a pretty good candidate for living in their building. To help you ace the final hurdle—the co-op board interview—we’ve prepared a co-op board interview guide complete with commonly asked co-op interview questions.
Commonly asked interview questions will center around your finances, work, home life, hobbies, background, pets, and your interest in the building and neighborhood. You will likely encounter some variation of the following questions:
Finances. It’s the job of the board to ensure all residents have the financials to keep the building in good standing. Prepare for questions to clarify how financially stable you are, and don’t be surprised by questions about any flags in your finances.
Your interest in the building and neighborhood. Your answers should reflect your affinity to the building and neighborhood, willingness to follow the co-op rules, interest in participating in the board (one day), and financial stability. Be sure you know the rules, avoid mentioning anything about moving for financial reasons, and avoid mentioning anything you dislike about the building.
Work. The board wants to ensure that your job is stable. Accentuate the positive regarding your work life and avoid sharing anything you dislike about your current job. If asked, clarify that your home will be used only for residential purposes (with the occasional work from home day, if applicable).
Home life. Co-op boards want quiet, clean, and respectful neighbors. When answering the board’s questions, keep in mind that they are seeking applicants whose schedule, noise levels, habits, and guests won’t disturb other residents. If they ask you about your plans to renovate, simply let them know you have no immediate plans of renovating the home. If they ask you about how frequently you like to have parties or out-of-town guests, let them know you have occasional dinners with close friends but not many out of town guests.
Hobbies and Interests. Any interests you have that would likely disturb your neighbors are best kept to yourself at this time. Reading, writing, painting, and other “quiet” activities are perfectly suitable hobbies to disclose during your interview process; playing the drums, hosting salsa dancing sessions, and your love of heavy metal are best kept to yourself.
Background. It’s illegal to reject co-op applicants based on race, gender, marital status, national origin, citizenship, sexual orientation, military status, disability, alienage, color, or choice of lawful occupation, so some of the board’s questions may seem intrusive. If they skirt the issues, simply answer vaguely and honestly.
Pets. Buildings that allow dogs want to make sure the pet won’t be a nuisance or a danger to residents. A pet interview may be required.
Once you have prepared in advance, the key to your interview is to appear relaxed and likable. Best wishes to you! You will do great!
Contact me here for assistance with buying or selling a home in New York City.
Selling a home in New York City can be a daunting task, so it’s important to be prepared before listing a home. In order to help you in your sales journey, we’ve put together a Seller’s Checklist meant to help manage your expectations and make your home selling experience as seamless as possible.
Selecting an experienced real estate professional is the most important item on our sellers checklist. The value that seasoned agents provide includes:
Since you’ll likely be spending a lot of time with your agent, select someone with whom you get along well and whose communication style matches yours.
The market fluctuates frequently in New York City, and the potential asking price for a home can vary on a floor-to-floor, line-to-line, and block-to-block basis. Keep up with market trends by reviewing quarterly market reports for insight into where your asking price point should be. Your agent will advise you on price, but reviewing the market will help you understand what neighborhoods and home sizes are in highest demand, as well as how long you can expect your home to be on the market before selling.
Getting a home inspection will allow you to mitigate issues hurting your home’s value. Anything from a leaky faucet to faulty wiring to damaged blinds will lower the actual and perceived value of your home. Repairs should either be handled before showing, or items in need of repair should be disclosed in the property description. Similarly, find out everything there is to know about your building’s financials, any upcoming construction, needed repairs, land leases, bed bug incidents, and board requirements. Your level of transparency and disclosure could make or break a deal.
There are a number of closing costs to be aware of before embarking on the sales process. Here are some of the costs you should budget for:
| Fee | Approximate Cost | Condos/ Townhouses | Co-ops |
| Agent Commission | 6% of sales price | x | x |
| Seller’s Attorney | $1500 – $2500 | x | x |
| Managing Agent / Co-op Attorney Processing Fee | $650 | x | x |
| New York City Transfer Tax | 1% of price for purchase of $500,000 or less; 1.425% of price for purchase over $500,000 (Paid by Seller, except sale by Sponsor) | x | x |
| New York State Transfer Tax | 0.4% of price (Paid by Seller, except sale by Sponsor) | x | x |
| Reserve Fund Contribution (if applicable) | Determined by condo board, payable by buyer unless otherwise stated | x | |
| Move-out Deposit | $500- $1000 (usually refundable if no damage) | x | x |
| Payoff Bank Fees (if applicable) | $250+ | ||
| E Tax Filing (ACRIS) | $100 | x | x |
| Property Condition Disclosure Statement | $500 | x | |
| NYS Capital Gains Tax Withholding** | 8.82% of taxable gain on sale (only applicable to non-US residents) | x | x |
| (FIRPTA) Only applicable to non-US residents | Buyer to withhold 10% of purchase price | x | x |
| Stock Transfer Tax | $0.05 per share | x | |
| Flip Tax (if applicable) | Determined by co-op building (unless otherwise stated or negotiated) | ||
| Lost stock and lease fees | $250+ | x | |
| Estate fees | TBD: Co-op may impose additional fees for estate sales | x | |
| UCC-3 Filing Fee | $75+ | x |
If your budget permits, professionally stage your home or focus on the main rooms in your home. However, whether or not you stage your home, simple adjustments will make a big difference in the eye of the beholder. Your home should look clean and welcoming, so that potential buyers can easily visualize themselves in your space. To achieve this look, be sure to:
Listing your home for sale doesn’t have to be a mysterious process. With the right agent, the right marketing plan, and the right presentation, your New York City home will attract qualified buyers and you’ll be glad you invested in the market when you did. It’s a great time to sell in New York City, and it’s a great time to buy as well.
