Navigating the New NYC Real Estate Commission Rules: Why Your Dream Home Deserves Expert Representation

The Real Estate Board of New York announced changes to commission structures effective 1/1/24

 As of January 1, 2024, a significant shift has reshaped the New York City real estate landscape, particularly regarding buyer's agent commissions. While this change offers flexibility, it also underscores the crucial role experienced buyer's agents play in securing your dream home in this dynamic market. Let's explore the revised landscape and why partnering with a skilled professional remains your wisest move for navigating the NYC luxury home buying journey.

Understanding the New Commission Landscape:

Gone are the days of a single, standardized commission paid solely by the seller. Historically, the Real Estate Board of New York (REBNY) dictated a standard commission structure where the seller's agent received 6% of the sale price, typically split 50/50 with the buyer's agent, thus commission costs for a real estate transaction were covered by the seller.

At face value of the new regulation, Buyers now have the choice to engage with an agent through traditional representation (paying the 3% buyer's agent fee) or explore alternative models. Under the new regulations, the responsibility of a Buyer’s Agent commission is now on the Buyer. While this flexibility may seem appealing, navigating the complexities of a luxury real estate transaction without expert guidance can pose significant risks.

Why a Buyer's Agent Remains Indispensable in NYC:

Protecting Your Interests: The seller's agent advocates for the seller's best interests. Entering such a high-stakes negotiation solo leaves you vulnerable to potential biases and overlooks in favor of the seller. Conversely, a dedicated NYC luxury buyer's agent champions your needs every step of the way, ensuring a level playing field and advocating for the best possible terms in your NYC luxury home purchase.

Financial Savvy: While the new structure shifts the commission burden, an experienced agent can still negotiate advantageous terms for you. Their deep understanding of the NYC luxury market and pricing nuances can lead to substantial savings, often exceeding the cost of their fee. Remember, their expertise extends beyond the commission; they can negotiate favorable closing costs and even potential concessions from the seller, impacting your overall NYC luxury home buying cost.

Unparalleled Expertise: The intricacies of a luxury real estate transaction can be daunting. From navigating complex board package requirements to securing the most competitive mortgage rates, a skilled agent acts as your trusted advisor. They handle the legwork, paperwork, and negotiations, freeing you to focus on finding the perfect NYC luxury property.

Peace of Mind: Buying a luxury home in NYC is an emotional journey. Having a seasoned professional by your side provides invaluable support and guidance. They handle unforeseen challenges, anticipate potential roadblocks, and ensure a smooth, stress-free transaction, allowing you to savor the excitement of acquiring your dream property.

The Ultimate Investment:

While the revised commission structure presents an option for solo navigation, remember, a luxury real estate transaction in NYC is not just about a roof over your head; It's an investment in one of your largest assets, your future, and your peace of mind. In this competitive market, partnering with a seasoned buyer's agent is not just an expense; it's a strategic investment that safeguards your interests, maximizes your benefits, and delivers the confidence of knowing you're securing your dream NYC luxury home on the most favorable terms possible.

Don't settle for anything less than exceptional representation – your dream NYC home deserves it. Contact The Victoria Shtainer Team today and let our expertise guide you through every step of your luxury real estate journey.

What You Need to Know About New York Fair Housing Changes

The Real Estate Industry takes discrimination very seriously and upholds its brokers, associate brokers, and licensed salespeople to very high standards. Every individual has the right to equal housing opportunities. In fact, when of the most rewarding aspects of working in this industry in a place like New York City is meeting so many different people and experience the great diversity of the city.

The New York Department of State and the Division of Human Rights have partnered vigorously in conjunction with the Governor’s office to ensure that New York State fair housing laws are enforced. 

Starting June 20th, 2020, the Department of State is enforcing new regulations that require real estate licensees to provide a fair housing disclosure form. These changes come at a time of civil unrest that is sweeping the nation. We are proud to be apart of the real estate community at Compass which is taking this very seriously and are pleased by the pressure the Department of State has put on the NYS Real Estate board to ensure it is enforced.

What’s Changing on June 20th?

Starting June 20th, the New York Department of state is making it mandatory that your broker provide you with a fair housing disclosure form to ensure you know your options if you feel that discrimination occurred while looking for housing.

Per the adopted text added to Title 19 of the NYCRR:

Under subsection (a) of Section 175.28, “[a] real estate broker shall be responsible to ensure that each individual licensed pursuant to Article 12-A of the New York Real Property Law and associated with such broker provides to a prospective purchaser, tenant, seller, or landlord upon first substantive contact a disclosure notice furnished by the Department….” This new disclosure (the “Disclosure”) which sets forth references to relevant provisions of the New York State Human Rights Law, also provides the consumer with the necessary information as to how to file a complaint for housing discrimination. A copy of the new disclosure is located on the New York State Department of State website [see here]

What Else Do I Need to Know about the Changes Starting June 20th?

The full adopted text for the Title 19 Amendment to NYCRR can be read on the Department of State Website. The new Fair Housing regulation provide for additional requirements in addition to the disclosure form which can be read within the adopted text.

Highlights of additional requirements include:

-Disclosure Requirement applies to all real property types

-Record keeping requirements for Disclosure forms to be maintained for no less than three years

-Fair Housing Notice must be displayed at Open Houses

-Fair Housing Notice to be posted on websites maintained by real estate brokers, associated real estate brokers, and salespersons - You can easily access the notice on our site within our contact info at the bottom of our page

What Characteristics are Protected Under Federal, State, and Local Fair Housing Laws?

Federal, State and Local Fair Housing Laws protect individuals from housing discrimination. It is unlawful to discriminate based on certain protected characteristics, which include, but are not limited to: race, creed, color, national origin, sexual orientation, gender identity or expression, military status, sex, age, disability, marital status, lawful source of income or familial status

The New York Human Rights Law prohibits discrimination in housing based upon an individual’s:

• Age

• Creed

• Race

• Color

• Sex

• Sexual Orientation

• National Origin

• Marital Status

• Domestic Violence VictimStatus

• Disability

• Military Status

• Familial Status

• Gender Identity

• Source of Income

Are Glass & Steel Skyscrapers Being Banned in New York City?

Headlines have been swirling around various media outlets stating that, per Mayor Bill de Blasio, glass and steel skyscrapers will be banned in New York City moving forward. The Mayor made comments on Monday morning’s edition of Morning Joe on MSNBC where he was quoted saying, “We are going to ban the classic glass and steel skyscrapers, which are incredibly inefficient.”

This message took on various other similar forms and was picked up by multiple media outlets including a cover on the New York Post here in the city. De Blasio spoke on various media outlets using a similar tone of strong language that implied a ban. He stated that these traditional skyscrapers are contributing to global warming. This prompted many to begin to think about a New York where there would be no new glass and steel skyscrapers.

Are Glass and Steel Skyscrapers Being Banned?

The short answer: No!

The comments from de Blasio were made with very few details or facts supporting them. The Director of the Mayor’s Office of Sustainability also chimed in to clarify that there is no prohibition on buildings made of glass in New York City.

It is important to note, however, that we are likely moving in a direction that would require construction to meet certain environmental efficiency standards. City Council just passed a package of bills which was inclusive of a mandate for building retrofits to reduce carbon footprint by 40 percent by the year 2030.

We are already seeing new construction as well as construction from recent years adapting to a more sustainable model by having projects certified as various LEED levels.

LEED stands for Leadership in Energy and Environmental Design and was devised by the United States Green Building Council. This rating system is the most widely used green building rating system in the world, and the LEED certification is a globally recognized sustainability achievement.

The rating system evaluates the environmental performance of a building, and through this process, encourages market transformation. The evaluation looks at things such as materials, water efficiency, and performance such as indoor quality for occupant comfort. 

Fun Fact: 10 Hudson Yards was the first commercial office space in New York to receive the coveted Platinum LEED certification.

NYC Real Estate Tax Changes: What You Need to Know

We recently provided updates on the proposed Pied-a-terre tax that had the possibility of being passed in New York City. With the recent passing of the State budget, there has been changes to Real Estate Taxes in New York. Below is everything you need to know about the real estate tax changes as a result of the New York State budget.

Overview: The Pied-a-terre tax was not implemented. Instead, there is a newly revised and implemented Progressive Mansion Tax and Progressive Transfer Tax. This will impact those in the $2-$5M purchase range the most.

The Progressive Mansion Tax:

The new law applies to all closings that take place on or after July 1, 2019 except for those contracts that were entered into prior to April 1, 2019. This is specific to NYC contracts.

The new tax now has 8 tiers that have a higher Mansion Tax rate as purchase price escalates.

The Progressive Transfer Tax:

In addition to the Mansion Tax overhaul, effective April 1, 2019, the Transfer Tax also received an overhaul.

For Residential purchases over $3 million, the NYS Transfer Tax increases from its current rate of 0.4% to a rate of 0.65%.

Additionally, for Commercial transactions greater than $2 million, the NYS Transfer Tax will increase from its current rate of 0.4% to 0.65%.

What Does it Mean for Me?

While no tax increases on property would be ideal, the above could be make less of a blow than the Pied-a-terre tax. The pied-a-terre tax would have positioned New York City as being not investor friendly and was also an annual charge -i.e. the property owner would have incurred this tax every year for owning the pied-a-terre.

As a Buyer, it is important to understand that, while yes, costs of gone up on certain transactions, these taxes are a one-time, upfront cost. The owner does not incur the Mansion Tax and Transfer tax on an annual basis as would have been the case with the pied-a-terre tax.

As was the case with the proposed pied-a-terre tax, the State has earmarked the additional revenue (expected to be $365 million) from the Progressive Mansion and Transfer Taxes to go to the failing MTA system in New York City.

As always, for questions about how taxes impact you, consult your qualified tax advisor who understands your personal financial sitaution

Why You Should Re-Consider Gary Vaynerchuck's Homeownership Comments

In a recent Podcast, Gary Vaynerchuck, known for his influential role in the media and advertising space as a leading entrepreneur, made strong remarks regarding homeownership that we would urge many to think carefully about. While there are certainly use cases that make sense for favoring renting a home, most individuals benefit greatly from homeownership.

What were his remarks, and why should you reconsider? Vaynerchuck stated that he feels buying a home is not an effective use of capital. He went so far as to state that he would rent for the rest of his life and never buy a home again.  

What You Should Consider

This is obviously a very strong statement made by Vaynerchuck as many view homeownership as part of the American Dream. When thinking about both his position and homeownership here is what you should consider:

Vaynerchuck’s Industry: Gary Vaynerchuck garnered most of his success as a tech entrepreneur. Starting companies, being an investor, etc. requires upfront capital needs that someone outside of this type of profession would not need. Thus, tying up a large portion of cash in the form of a down payment may not make sense for an investor that needs to remain more liquid. Additionally, one would reasonably expect that a tech entrepreneur would require one to be quite mobile in terms of traveling, so they would be less inclined to want to be tied down than the average person.

Equity: When you purchase a home, you are building equity in the home. Your monthly mortgage payments are going towards ownership, an asset that will be yours. When you rent, you pay your monthly rent which goes in your Landlord’s pocket – you are not working towards owning anything. Over the long term, homeownership has been the most influential vehicle for driving wealth accumulation. We have seen that, over a long time horizon, home values tend to increase, thus increasing the owner’s wealth.

Homeownership Is Not Dead: Most Americans still want to buy a home, and homeownership does make sense for a lot of people. However, the Millennial generation is struggling with homeownership because this generation is burdened with exorbitantly high student debt, coupled with high rents and costs of living in most job-hub city which makes saving for a down payment challenging for this group. As a result, Millennials are buying homes at a slower rate which leads some to believe that homeownership is dead.

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That is not to say that some of Gary V’s points are not valid when put into perspective. When thinking about liquidity, we would not recommend someone purchase a home that they cannot afford. If the down payment of a home will put you in a bad financial situation, you should likely reassess your budget to ensure you are buying a property that makes sense for you financially.  

Additionally, there are use cases for renting homes that also make sense for a lot of individuals. We can conduct rent vs. buy analysis that can help clients decide what makes the most sense for them. One of the biggest things to consider when thinking about renting vs. buying is time – are you planning to only be in this location for, say, 5 years? If so, taking on a 30-year mortgage to buy a home, etc. may not make sense and renting would be more suitable if you know you are going to be changing locations relatively soon.

Have You Seen the Oculus in Downtown Manhattan?

New Mall Opens Inside The Oculus

The anticipated Westfield Mall in downtown Manhattan has finally arrived in is open business. The mall, located at the Oculus at the World Trade Center site, arrives at a time when lower Manhattan is seeing a revitalization with many new stores, restaurants, and developments coming to the area. 

The mall was a project by real estate developer Westfield which invested $1.4 billion on the project. The space is certainly a modern interpretation on the classic shopping mall, a category that has been struggling in the retail space as they compete with online retailers. 

The Oculus, home to the subterranean mall, is a creation of architect Santiago Calatrava. Calatrava is largely known for his work designing railway stations and bridges, and later in his career, began to work on high-rise design with his Turning Torso in Sweden serving as an example. At heart, the Oculus serves as a transportation connecting New Jersey Path trains with lower Manhattan. The terminal is used by 300,000 commuters daily, providing a large amount of foot traffic past the retails that are calling Westfield home.

More than 100 stores will arrive with 60 having opened during the grand opening on Tuesday, August, 16th.

A Dining and Shopping Destination

Where to Shop

A small selection of some of the retailers which spans mid-range to luxury brands includes:

• Apple
• Breitling
• Ford Hub which will be an interactive showcase of new models for the auto manufacturer
• Smythson of Bond Street
• John Varvatos
• Kate Spade
• Lacoste
• Mont Blanc
• Roberto Coin

Where to Eat

The arrival of various eateries from coffee stops to Italian markets will be refreshing for the area. A sample of eateries includes:

• Eataly
• Epicerie Boulud
• Lady M
• Irving Farm Coffee
• Pressed Juicery

And, if you were thinking of stopping at the newly opened Sugarfina, creator of the rosé gummy bears, get in line, as there is a waitlist. They are proud to share that this is the only candy with a waitlist. At last check, Sugarfina stated the waitlist was 18,000 long!

The new shopping and dining destination is located near the 9/11 memorial, museum, and 1 World Trade Center, home to the observation deck. Additionally, the location is moments from TriBeCa and the newly completed 30 Park Place, home to our new listing. For now, it looks like this is as close as you can get to the much talked about gummy bears.

30 Park Place as viewed from the Oculus

Our new rental exclusive, 30 Park Place unit 44E, consists of 3 Beds and 2.5 bath in the Robert A.M. Stern designed building. 30 Park Place is the first private residences by The Four Seasons in New York. By living in the building, residents get to take advantage of 5-star hotel-style living and all of the amenities that come with it such as in-room dining, car services, and a full concierge. View the full details of the listing here. If you are interested in living at 30 Park Place, contact Victoria.

The Kent is Coming to the Upper East Side

The Kent, a collection of two-to-five-bedroom condo residences, is coming to the Upper East Side. The project is headed by Extell Development and will be located at 200 East 95th Street. Extell is developing the building in collaboration with Beyer Blinder Belle Architects and interior designer Alexandra Champalimaud. 

The exterior of the building will consist of a limestone facade, granting residents a sophisticated entry. Speaking of the facade, Richard Metsky says, 

“The Kent’s facade incorporates traditional materials of brick, limestone, and metal interwoven with contemporary details that are rich in materiality.”

The Residences

The residences at The Kent will offer a sophisticated living experience that will blend seamlessly into the Upper East Side lifestyle. The residences offer a degree of customization, allowing owners to personalize their space. Customization options include flooring and kitchen finishes. 

Details throughout the homes include custom millwork and hardware, 10-to-15-foot ceilings in living and bedroom areas, and a choice of ebonized or brushed oak flooring. In the kitchens, owners can select from 3 finishes including ivory, opal, or onyx which serve as the backdrop for integrated Miele appliances, sub-zero wine storage, and Dornbracht fittings. Bathrooms are done in Alexis Azul marble and outfitted with Kohler BubbleMassage Air Baths. 

The building will also offer 3 signature penthouses. These homes will combine indoor and outdoor living with French doors integrating the large, private terraces with the indoor space. Other notable features include 12 foot windows in the great rooms, complete with a fireplace trimmed with a marble mantlepiece. 

Amenities

The Kent embraces its Upper East Side location, offering an amenities package that compliments the lifestyle and the neighborhood. An inviting parlour is a great space to greet guests and socialize as it is outfitted with a fireplace and bar. 

Other amenities include:
-indoor pool and sauna
-fitness center
-Camp Kent for children
-Garden Salon with billiards, library, and catering kitchen overlooking a beautiful courtyard

Interior designer Alexandra Champalimaud said of the space,

“We approached this project by embracing the refined magnificence and unparalleled elegance that defines the Upper East Side”

Availability (as of May 2016)

Two bedroom residences starting at $2.457M ranging up to 5 Bedroom residences starting at $8.362M

If you are interested in previewing The Kent and current availability, please contact us for an appointment.

Newest New York Luxury Hotels Bring Style and Design

It goes without saying that the New York hotel market is quite crowded with hundreds of hotels throughout the city. Luxury hotels have made their mark on the city by serving not only as hotel for guests, but trendy destinations for city goers alike by offering restaurants from renowned chefs and top-notch nightlife. The new wave of stylish hotels opening in New York is bringing not only big news in hospitality, but they are also being designed by big names in the architecture and design world such as Philippe Starck.

New luxury hotels are popping up around town from Park Avenue to SoHo. Take a look at what will, perhaps, become the new "it" places in the city:

SLS Park Avenue- The trendy hotel brand, SLS, by SBE will finally be coming to New York. The new hotel is slated to open this coming fall and is situated at Park Avenue at 30th Street. The property is designed by world famous architect Philippe Starck as his first New York hotel design since the Hudson Hotel in 2000. Not many details have emerged about the specifics of the restaurant and nightlife, however, SLS does say it will bringing vibrant new restaurant and nightlife concepts- that we can be sure of from the trendy hotel group!

11 Howard- This new spot in SoHo is now open and brings a fresh, minimalist design to the area. The hotels concept was designed by SPACE Copenhagen as they infused their minimalist Danish roots into the space. The property features custom finishes, bespoke furniture, as well as an inviting bar and library. 

The Beekman- Thompson hotels is bring some luxury to downtown with its new property at 123 Nassau Street. The hotel is situated in a downtown landmark building that is known for its nine-story atrium and pyramidal skylight. The design is being overseen by Martin Brudnizki who has designed SoHo Houses around the globe. In addition to the hotel, the The Beekman offers luxurious residences and culinary options be chef Tom Colicchio.

Photos: SLS Hotels, 11 Howard, Thompson Hotels