6 Signs You're Working with the Wrong Real Estate Agent

Buying or selling a home is likely the largest financial decision you will make in your life. It is undeniable that the search for the perfect home can be a daunting process. However, you should be aware that sometimes you might be dealing with an unqualified agent rather than a demanding real estate market.

With the historically busy Spring market right around the corner, whether you are Selling your home or looking to Buy, it is important you are partnering with the right agent to get the job done.

Has your listing been lingering on the market, or your home search lasting longer than you would like? We have listed six signs you're working with the wrong real estate agent so that you can assess if the professional you've chosen might be slowing down your progress towards purchasing or selling a property.

1. The real estate agent you hired is rarely present at showings

Attending and organizing showings is extremely important, especially if you are looking to buy or invest in a highly competitive real estate market like Manhattan. If your real estate agent cannot attend them, especially on the weekends, which are typically considered the primetime days for showings, you might be facing an issue. No matter how well-informed you may be when it comes to real estate, the very purpose of hiring a real estate agent is always to have access to an experienced and reliable advisor that can guide and inform your decisions.  

Some red flags include agents who:

• do not return your calls in good time

• are frequently unavailable or out of town

• cannot dedicate enough time to show your home to potential buyers

• cannot give you relevant advice on which property listings you should take into consideration

A good Real Estate Agent should be present and involved at all times

2. The real estate agent lacks a cohesive marketing strategy

In real estate, marketing is everything. Having an agent with a solid online presence, know-how about current real estate trends and visibility on an array of online platforms is vital for reaching buyers or sellers. If your real estate agent does not seem to be experienced in this regard, this may very well hurt your property value.

The days of relying on a simple MLS listing or a sign in your yard are long behind us, which means you need a real estate agent who will proactively search for customers beyond these obsolete marketing methods, especially if you are considering selling or buying a home during a recession. Before hiring a real estate agent, check if they use social media platforms, whether they send out mailers, or if they market or locate showings online.

Additionally, be sure to ask for the agent's marketing portfolio, which includes examples of property listings with photographs. This will allow you to assess if their marketing skills and strategies are professional enough to keep up with the ever-evolving real estate market trends in NYC. So, photos taken on an iPhone simply will not do.

3. You’re working with the wrong real estate agent if their negotiation skills are lacking

Marketing or finding a property is just one part of a real estate agent's job. When it comes down to the crunch and your agent is too passive, inexperienced, or disinterested in negotiating in your stead, you might want to consider hiring someone else.

Once the offers start to arrive, you must have someone by your side who can communicate your wishes and needs and maintain a professional and successful negotiation with all interested parties. Be on the lookout for red flags and potential oversights on the part of your real estate agent.

Once you seal the deal, you should be equally vigilant when it comes to hiring movers for your relocation to NYC. Buying or selling a home is just the start of your real estate journey, which means you have to be careful and choose the best option possible for your relocation. 

4. The agent lacks experience in market

Hiring a real estate agent who is new to the business is not necessarily a faux pas. In fact, sometimes, younger real estate agents might be even more skillful and knowledgeable when it comes to marketing on social media and other media outlets. Furthermore, they might bring an entirely new perspective to the table compared to their older counterparts that work within the same real estate agency.

However, if you notice that the real estate agent does not have the necessary information or expertise when it comes to current real estate trends in the local housing market, you might want to look for someone else. Moreover, as we have mentioned, your real estate agent should be a consummate negotiator in order to meet the grade, which in some cases comes only after a few years of working as a real estate agent.

5. The real estate agent is not familiar with the local housing market

Even if you hire a real estate agent with an extensive portfolio, this is no guarantee they are the perfect person for the job in the given real estate market. They have to be well-versed in property values in the area; otherwise, they are merely shooting blanks anytime they make an offer to a potential buyer or seller of the property.

In a city such as New York, real estate is hyper-local where it can even matter if the agent is familiar with a particular building. At minimum, working with a neighborhood expert is important, but always partner with the agent that has the most experience with your neighborhood and property type when possible.

Additionally, they should be in the know when it comes to other vital aspects that influence the value of the property. So, for instance, there are a few home features New Yorkers will pay extra for, and awareness of these and similar influencing factors can significantly impact the property's final price.

There are many factors that influence property prices in the NYC real estate market.

6. The real estate agent is too pushy

So, you have found a real estate agent who is an engaged, communicative, and skillful negotiator and marketing expert. They are also experienced enough to know all the trends and factors that influence property values in the area. You might be thinking that you are finally on the safe side and that you can now focus on your relocation and start thinking of an unpacking plan once you settle into your new NYC home.

Your agent should advise you, providing their expert insight and arm you with facts to make an informed decision

However, if the agent is too eager to seal the deal and finish the job as soon as possible, this is one of the telltale signs you're working with the wrong real estate agent. Do not let their confidence or reputation influence your decision.

Your Agent should have your best interest at heart – if that means the perfect property comes along in 1 month or 1 year, they should not be pushing the first property you see just to get a deal completed.

Thinking of Buying, Selling, or Renting? Our Team is comprised of industry leaders that execute across all the critical touchpoints of a successful transaction. Find out how we can help you

The Victoria Shtainer Team provides industry leading Real Estate services in New York City, Miami, and The Hamptons

2021 Outlook: What to Expect for the New York City Real Estate Market

With the arrival of 2021 comes new predictions for the year ahead. It goes without saying, New York City faced a very tough 2020 as a result of the Coronavirus pandemic. The real estate market came to a near halt of in-person showings and activity was ceased from March-late June. 

While many Media Outlets wrote of the mass exodus to the Suburbs and a bleak state of the Luxury Market in New York, the market actually turned a corner once in-person activity resumed in late June. In fact, some weeks of 2020 had higher contract activity in luxury properties than 2019. 

People will always need a place to call home, and we saw the power of that throughout much of 2020.

We are all entering 2021 with  guarded, yet hopeful optimism that we will turn a corner towards normalcy. We expect the market to continue its Pandemic recovery, barring any unforeseen circumstances of a large resurgence of cases, etc. The arrival of the vaccine which is expected to become more widely available as we progress into 2021 should help curb another lockdown.

What Do We Expect for 2021? We largely expect persistent demand from Buyers as the narrative shifts away from “New York is Gone” to a narrative of opportunity and recovery. We’ve already seen that the story the Media tried to paint of NYC in a post-pandemic world was not the reality. Some folks that originally left the city have already returned or have plans to return in the near future. New Yorkers and those in the surrounding areas are betting on New York Real estate and taking advantage of discounts in a big way.

Fight of the Boroughs:

We anticipate the battle between top Borough in the city to remain heated in 2021. As a result of the Pandemic features like  more space,  outdoor space, and  in-unit laundry became priorities. All of these features could be found in Brooklyn which help contribute to the borough’s post pandemic spike in activity, however, reduce pricing has made Manhattan more affordable to more people…which will win?

Buyers Will Continue their Return:

Buyers have been entering the market since the lockdown was lifted. We saw a strong uptick in market activity in June 2020 when in-person showings resumed. The year finished on a strong note, and we expect Buyers that  are serious and  know they are staying in  New York  City to take advantage. There are many factors that are driving Buyers including low interest  rates  as well as increased wealth. Many New Yorkers of means actually saw an increase in wealth during 2020 thanks to a sharp rise in Tech Stocks as well as the ability to retain employment remotely.

Low Rates Here to Stay:

We expect Mortgage Rates to stay low in 2021. Will they may inch up slightly throughout the course of 2021 (we saw numerous record lows set in 2020!), rates will remain historically at low levels. Low Rates have drastically been increasing purchasing power of both new Buyers and Homeowners looking to roll their equity into a larger home.

Deals on New Development:

The Manhattan  Luxury Condo market has been overburdened with Supply for the past few years. While some Developers have been rolling out discounts and incentives in 2019/2020, we expect discounts on new inventory to uptick. Developers are at the mercy of project financing - they need to get units sold and move onto the next project so they can pay their lenders. This means great opportunities for Buyers of New Development.

Shifting Preferences:

What ranks as important to Buyers will likely shift as Consumers continue  to  evolve their needs and wants coming out of the pandemic. We know that the multi-functional homes are a must and people now prefer outdoor space to the latest appliances, but we expect that these preferences will continue to be refined heading into  2021. In New York, there is likely to be a resurgence with  Boutique buildings with  minimal amounts of units compared to  large buildings with hundreds of homes.

What is a Co-Op and Why are They in Demand?

If you follow our newsletter, blog, and other content, you’ve likely seen us mention condos leading the board for demand over the past few years…what about co-ops? 

Many are unfamiliar with the different property types in New York City, most notably condos and co-ops. There is a seemingly endless debate of pros and cons of both, but there is a new interest in co-ops emerging as a result of the pandemic. 

To set the stage what is a Co-Op?

A Co-Op, short for Cooperative, is an ownership interest in shares of a corporation that own the cooperative. The number of shares owned is directly correlated to the size of the apartment in the building. These shares entitle the shareholder to a proprietary lease on the unit.

To contrast, a Condo represents ownership in real property so there is a big distinction in ownership interest between the property types. 

As a Co-Op owner, you are responsible for monthly maintenance fees which typically includes property taxes as well as items such as the building’s mortgage and interest, insurance, management fees, building employee salaries, and common area upkeep.

Co-Op Appeal Increases During Uncertainty

With Condos being the leading star for many years, what is making Co-Ops appeal to more Buyers than usual? The pandemic has actually positioned aspects of Co-Ops that previously put Buyers off as a positive amidst uncertainty. 

Co-Ops are notorious for their strict vetting process and Boards. In times of uncertainty, this becomes attractive to Buyers. Co-Ops typically examine a Buyers credentials and finances with a fine tooth comb, ensuring they have enough liquidity to continue to pay their mortgage and maintenance charges despite and unforeseen circumstance. 

In hard times, you are less likely to find a Co-Op owner that passed the Buildings Board vetting to be defaulting on a mortgage. In turn, that means less risk of assessments and hits to the building’s financials. 

Some Co-Ops are loosen their once very strict rules as Buyer demographics are shifting. This includes some allowing pied-a-terre purchases as well as increased financing limits.  

This trend is not new, in fact, we saw a similar attraction to Co-Ops during the Great Recessions of 2008. It is important to note that there are Co-Op buildings that have survived the Great Depression, World Wars, and 9/11 - some of the toughest times economically.

Upper East Side Co-Op On the Market

---

315 East 72nd Street, 10C

Located in the heart of the Upper East Side, this rarely available oversized one bedroom 1 bathroom co-op apartment is your chance to live on beautiful East 72nd Street. This fully renovated, bright and airy apartment is a great value in a full-service co-op building.

Learn More About This List

Manhattan's Luxury Market Shows Signs of Life: Best Week Since March 2020

The Manhattan luxury market continues to see positive signs of increased activity. Most recently, the week ending July 26th marked the best week for Manhattan’s luxury market since March. This also coincided with New York City entering the final phase of the New York Forward plan, Phase 4.

15 properties priced $4M and up went into contract during the week ending July 26th. Digging in, deals were characterized by discounts which comes as no surprise, however, many Buyers are likely unaware of the magnitude of the deals that can be had. On average, properties going into contract had a discount of 18%. A Buyer’s market coupled with historic low interest rates create opportunities that could reward serious Buyers handsomely over the longterm.

During the same week last year, 14 homes priced above $4M went into contract, so 2020 actually represented a slight YoY increase in contract volume. Additionally, a report on new developments showed the highest number of sponsor contracts in the city since the beginning of April. 40 sponsor contracts were signed the week ending July 26th, an increase of 17 since the prior week. 

A mix of property types including 9 Condos, 4 Co-Ops, and 2 townhouses

Understanding the Headlines

It is important to understand what is happening in the New York City housing market before falling victim to the peril of headlines such as “Real Estate Prices Fall Sharply in New York”. It is important to remember that, particularly within the luxury sector, discount from asking has been a common theme to deals for nearly 2 years - if you subscribe to our monthly newsletter, you are familiar that this has been a persistent theme. 

Additionally, Q2 2020 data should be taken with a grain of salt as drawing out longterm trends is difficult. Showings were legally not allowed during Q2 as a result of the Pandemic, so activity inherently came to a near halt. With less homes being bought and sold there is less data, and with less data it is important to remember that baselines can be easily skewed. This year’s Q2 data is based on a much smaller sample size which can skew the median price.

We expect Q2 2020 data to show a decrease in price YoY. This comes as no surprise knowing that activity was not allowed, however, because of the lack of data coupled with the inability to show, the viability of this data for longterm trend analysis is not ideal.

Furthermore, the comparison point to a year ago, namely Q2 2019 was characterized by unique activity itself. Q2 2019 had elevated activity because of the rush to close before the start of the new progressive Mansion Tax. Thus, a period of low activity (2020) compared to a period of high activity (2019) both from unexpected outside factors, creates a comparison with flawed data points.

Market Update: Manhattan Q2 2020 Market Report

We are halfway through 2020 - hard to believe. With all that is going on in the world, time has seemed to move at a relatively quick pace. Q2 2020 was one for the record books. The new year started off on a positive note for the Manhattan real estate market - strength had been carried over from 2019 across multiple tiers of the market. As we approached the start of Q2, no one was anticipating the magnitude of impact the market was going to experience. 

The final two weeks of the first quarter brought never before seen conditions to the Manhattan Real Estate market. 

While we hope that Q2 2020 is an outlier when we look back on historical quarters, it is important not to write off the entire quarter, but rather acknowledge the data and understand the impact of the pandemic during the observed time period.

Coronavirus Impact on Manhattan Market Evident in Q2 Data

Understanding the sweeping restrictions that were put into place in New York City that included the suspension of real estate showings, it comes without shock the YoY data is significantly lower when comparing 2020 to 2019. During Q2, the real estate market was essentially put on hold, the first time in history. 

• Contract Activity was down 73% YoY

• Sales were down 65%

There are a few key thoughts worth noting on the data above:

1. The Contract Activity number actually could have been lower, however, the industry nimbly adapted to digital tools including virtual open houses, enhanced 3-D staging, and virtual closings.

The use of digital technologies will only continue to increase as consumers implement tech oriented solutions throughout all aspects of their lives to make it efficient and safe.

2. This data is important to be aware of, but it likely does not have long term predictive value knowing the restrictions that were placed on the industry with physical showings halted. In that sense it is expected, and we hope this quarter to be a Black Swan event

Sales Statistics

• Co-ops sold 26% faster than condos with 1 bed Co-Ops moving the fasting - 47% sold within 60 days

• Condos purchased in Q2 were more affordable than previous quarters because of property variations, not discounts or undervaluations

• Downtown captured 28% of sales, the highest of any submarket

• Properties in the $5-$10M range were priced 7% higher on average YoY although property size was also 8% larger, resulting in a 2% decline in average price per square foot

Looking Ahead

Monitoring data points in Q3 and beyond will be critically important to understand long term potential. In-person real estate activity resumed in late June, and the news came as contract activity was beginning to pick up.

The Pandemic will certainly leave lasting impacts on the market, and as of now, we see that in the form of consumers looking to leverage technology as much as possible to ensure safe and efficient business transactions as well as shifting preferences. 

We expect increased interest in private outdoor space, home offices, layouts with defined spaces, and in the city, a renewed interest in townhouses and boutique buildings.

We will continue to monitor the pent up demand that has begin to re-enter the market.

New York Back to Business: What You Need to Know About Safe Real Estate Showings

As part of the New York Forward program, New York City moved to Phase 2 on June 22nd, 2020. As part of Phase 2, limited in-person real estate activity resumed. In light of the evolving situation around COVID-19, we are taking precautions to ensure the safety of our clients, prospective buyers, and team. 

You should always be guided by your own sense of personal safety and know that we have the tools and resources to power transactions 100% virtually. However, know that when you view a property in-person with our team, we are taking the following safety measures and adhering to State and Local government guidelines.

Setting up Private Showings

Prior to a showing, we will work with Buyers to ensure that they are financially qualified to view the property and that they have also virtually explored the home via photos and 3D tours available online. 

Once interest is confirmed, we will work with the listing agent to schedule a private showing. We will ensure we are organizing the showing in compliance with the respective building and management guidelines. 

In light of COVID, the following paperwork will be completed:

• REBNY’s Health Questionnaire: screening questionnaires to ensure those entering a home are not a known risk for possibly having COVID

• REBNY Limitation of Liability: this form serves to acknowledge that the party entering a property, or who is permitting another to enter party to enter a property of the potential liability that may result from exposure to COVID

• We also strictly follow the New York Department of State Fair Housing Disclosure guidelines

*Sellers are NOT allowed to be at the property at the time of showing

Getting Your Home Ready to Show

Prior to allowing prospective Buyers or Renters into your home, we follow best practices to ensure hygiene and reduce contact during the showing as possible.

Before showings of our listings, we ensure:

• All inside doors are open to reduce the amount of contact on high touch surfaces such as door knobs. We sanitize and wipe down door handles before and after each showing

• Sanitizer/Soap/Paper Towels available

• We wear gloves and face masks at all time. Face coverings are necessary for all those entering the property during the showing

• Curtains open, windows open where possible, and air conditioning units on to increase air flow and circulation

Ensuring Success During a Private Showing

In-person attendees limited to Seller’s Agent and Buyer with the Buyer’s agent attending virtually

Six feet social distance maintained at all times throughout the showing. Note that if a property size or configuration does not allow for social distancing, only 1 individual will be permitted in the unit at a time

Only Seller’s Agents will open doors that are needed, cabinets, etc.

Seller’s Agent will escort the Buyer to the lobby prior to the arrival of any subsequent appointment

After a Showing

After each showing we conduct for our listings, we once again clean and sanitize

• Clean and disinfect keys

• dispose of gloves/booties used

After a successful showing and cleaning of the unit, all necessary follow up will be handled with prospective buyers or their agents via phone and email.

Evolving Guidelines

As the situation surrounding COVID-19 is ever evolving, we continue to stay up to date on the latest guidelines issues by Federal, State, and Local Governments and Agencies. We will continue to keep our network updated on the latest guidelines.

Questions about how we are handling showing properties and conducting business during Phase 2? Reach out with your questions via the below form

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

Things to Do in NYC During the Winter Holidays

via

Visiting the Big Apple is an unforgettable experience whatever season you choose. As the winter holidays start approaching, everybody seems to be enchanted by the holiday spirit, beautiful decorations are everywhere, and, finally, people are completely indulged in the festive mood. If New York is your destination this winter, here are the things to do in NYC during the winter holidays. Remember that not seldom do tourists get the idea to call this mesmerizing city home after the visit, so you might want to get creative with savings for the first home purchase once this winter holiday season comes to its end. 

Ice skating at the Rockefeller Center

Whether you are a native or a tourist, ice skating at the Rockefeller Center is definitely one of the things to do in NYC during the winter holidays. It is a quintessential and family-friendly winter activity you can enjoy to the fullest regardless of your age. Visit the world-famous Christmas tree at the Rockefeller Square or try the delicious hot cocoa or coffee at some of the cafes overlooking the rink. And not only that! Explore the Center and warm up. Also, if you want a chance to admire the breathtaking NYC skyline, climb to the top of this magnificent building. The hard-to-control crowds of people prove the popularity and uniqueness of this place worth visiting.

Visit A Museum

Your options in NYC are countless, and you can definitely find something that suits your artistic taste and interests. What a great majority usually choose includes the Statue of Liberty and Ellis Island Immigration Museum, The 9/11 Memorial & Museum, The Museum of Natural History, The Museum of Modern Art, The Metropolitan Museum of Art, Madame Tussauds New York, and many more.  Have these things in mind if you are about to become a New Yorker and do thorough research before your visit this year. Then, once you finally arrive at your NYC address, you can pay frequent visits to these art hubs whenever you want.

Attend Winter Jazzfest

Jazzfest is an exceptional event for all fans of jazz music. In the past, it was a one-day event dedicated to the most prominent names in this field and only the most passionate and committed fans used to attend it. In time, the situation changed dramatically, and now it is one of the most visited and famous winter holiday events. This year, all the attendants will have a chance to enjoy Resident Artist Meshell Ndegeocello and over 100 other jazz performers for several days. If you want to include Jazzfest in your to-do list during the winter holidays this year, gather all the information and book the tickets well in advance.

Attend the Under the Radar Festival

One of the things to do in NYC during the winter holidays for those who desire to experience the NYC theatre culture this year is, by all means, the Under the Radar Festival. The event features troupes from all over the world which can provide you with premium-quality entertainment. You can enjoy numerous comedy shows and attend a Broadway-like cultural event but at a significantly lower price.

Be Brave and opt for Empire State Building Run-up

Those who are fit, love exercising and meeting new challenges on a regular basis can opt for the annual Empire State Building Run-up this winter. Sprinting up to the 86Th floor is a goal only a small number of people succeed in reaching, although the overall distance is only a quarter of a mile. On the other hand, if you are not keen on running, a visit to Empire State Building still deserves a place on the list of the things to do in NYC during the winter holidays because you can explore it at your own pace, admire its Art Deco interiors and rest your eyes on beautiful views from the exterior. 

Radio City Christmas Spectacular is a great attraction for New Yorkers and tourists alike

People never get bored with Radio City Christmas Spectacular since it is slightly different every year. Here you can see everything that will get you in the holiday spirit in no time – dancing animals, nutcrackers, presents, fascinating special effects, and many more. The Rockettes are definitely the greatest attraction people coming from all over the world are always excited to see. Finally, even a simple tour around Radio City Music Hall, where this spectacular takes place, is a genuinely joyous experience.

Schedule your visit to Macy’s Santaland

The story about Santa, his faithful helpers, and the North Pole is an inseparable part of the winter holidays every year. This is why you should head to Herald Square to meet Santa at Macy’s Santaland. The whole family will enjoy immensely during a train ride to the Christmas village. What children like the most is the chance to have a decent chat with Santa’s elves and himself personally. Being one of the most popular and family-friendly things to do in NYC during the winter holidays, a visit to this magical land requires booking well in advance. Otherwise, you risk severe disappointment once you arrive at the site and find out you cannot enter Santaland.

Go window shopping and admire Christmas window displays

Finally, a chance to spend the winter holidays in NYC is a great privilege a lot of people have been dreaming about. Simple window shopping or observing Christmas window displays all over the city can be interesting as well. Should you miss some inspiration to get into the holiday spirit, which we doubt greatly, you can visit some of the NYC winter holiday markets where you can buy some charming souvenirs and holiday-themed knick-knacks.

Enjoying the winter holidays in NYC is guaranteed due to the endless options at your disposal. While NYC has the reputation of one of the most expensive cities in the world, we assure you it is possible to enjoy it to the fullest and yet not harm your budget considerably. What you need is a New York City Explorer pass which provides you with admission to various events and places. Understandably, there are those events that are separately ticketed, but you can decide how much you can and want to spend on these. 

Vanessa Grey is an interior designer and a passionate traveler. She loves meeting new cultures, exploring their customs, and sharing her experiences with other people. Vanessa started writing articles about her travels two years ago, and she loves those about the holiday seasons the most.

https://pixabay.com/illustrations/pretty-girl-winter-red-2039176/

What Does the New York LLC Crackdown Mean for NYC Condos?

Real Estate transaction are about to become more public. A law passed by New York Legislature aimed at battling issues upstate, now has New York City Condos under scrutiny as well. State Legislature signed a bill into effect in September that requires LLCs to disclose their identity in transaction involving one to four-unit buildings. The goal was to help crackdown on home abandonments in towns in the Hudson Valley by helping identify owners behind LLCs of abandoned homes.

Since Governor Cuomo signed the bill into law on September 13th, it is now being interpreted to include all residential condos in New York. The state Department of Taxation and Finance released guidance on September 27th that specified that residential condos were included in the “one to four family dwelling unit” definition.

What Does this Mean for NYC Real Estate?

Simply put, under current guidance and interpretation, Buyers cannot remain anonymous.

The New York City real estate industry is still looking to uncover the exact implications for our market, however, direction is indicating that the law’s reach is far greater than originally anticipated.

Under current guidance, Buyers would no longer be able to purchase Condos in an LLC to remain anonymous and would have to disclose identity. Disclosures would be subject to Freedom of Information Law (FOIL) requests which can be filed by anyone to find out who owns an LLC. This means journalists and other parties could get names behind LLCs, thus revealing identity to the Press.

This implication has privacy concerns as many wealthy buyers and celebrities in the New York City market purchase in an LLC to protect their identity and privacy. Having to disclose means that this privacy has gone out the door, and parties can now pinpoint the exact address of any buyer.

There is also some concern in regard to implications this could have on real estate development in New York. Most new development projects are under an LLC by the Sponsor. This is sometimes a Real Estate Investment Trust which could have many investors. Developers may simply not want to take on the burden of having to disclose possibly hundreds of names of everyone involved in a particular project.

This new legislative change comes on the heals of the Progressive Mansion Tax which was enacted July 1st, and has had a negative impact on the Luxury market in Manhattan.

5 Common Questions About Making a Home Investment

Buying a home is one of the largest decisions and financial transactions in many people’s lives. Because this is the largest financial asset for most many, anxiety and stress can cloud the decision-making process. Questions such as the following often  – Is this the right decision for me? Is this the home I should be investing in? Is now a good time to buy, or should I wait?

Whether a first-time home buyer, or a seasoned real estate investor adding to your portfolio, questions arise during every transaction. In our experience working with buyers, sellers, renters, and investors across all experience ranges, here is a list of the most common questions we get asked when it comes to investing in a home. 

WAS THE HOUSING CRISIS DURING THE FINANCIAL CRISIS JUST A BLACK SWAN EVENT TO BE PUT BEHIND US, OR DID IT SHOW THAT HOMES ARE NOT SAFE AND PROFITABLE HOLDINGS?

The Financial Crisis of 2008 changed the psychology of nearly everyone as it relates to finances and purchasing decisions. This has been more pronounced with Millennials.

Not all those that purchased homes during the crisis of ‘08 were negatively impacted, however, the ripple effect did bring down the overall market. Those that were hit hardest were buyers that stepped up to buy properties they could not afford, largely amplified by mortgage lenders who had much more relaxed lending guidelines and approved individuals for mortgages they could not truly afford. The latter was largely responsible for the subprime mortgage crisis during this time period.

The crisis revealed the dangers of over leveraging. While a mortgage can be a great thing, taking on too much debt can lead to many issues, especially in a home purchase. A large majority of those severely wiped out by the housing crisis mortgaged the purchase of the home with minimal equity down, thus they had no skin in the game so to speak and we were willing to just walk away from their payments as a result. This is why so many homes went into foreclosure.

Any market, financial or otherwise, is subject to a crisis, however, the housing crisis has resulted in more restrictions imposed on lenders and is certainly more prevalent in the back of buyers’ minds as they asses what they can afford.

While interest rates on mortgages are once again at historic lows, it is important to understand the true monthly payment costs and the tradeoffs associated with various mortgage products and increasing your down payment. We sat down with a Mortgage Expert to ask some questions – read more here.

NOW THAT HOME VALUES HAVE RECOVERED, WHAT'S THE SMARTEST HOME OWNING STRATEGY GOING FORWARD? IS IT SAFE TO ASSUME A HOME WILL STEADILY APPRECIATE?

Plain and simple – buy what you can afford! Consult with a mortgage advisor to receive a pre-approval letter if you are financing your home purchase. The pre-approval letter will reveal in what price range you should be shopping.

Time horizon is certainly a contributing factor to price appreciation. Because of the additional costs of a real estate transaction, a timeline of at least 5 years is usually a standard outlook to outweigh the costs of buying versus renting. In Manhattan the rent vs. buy analysis is more complex given pricing – we are happy to help guide you on what makes the most sense given your personal scenario depending on income, timeline, and down payment. This, of course, varies from market to market, and even neighborhood to neighborhood. If you envision yourself staying put for quite a while, we tend to see real estate prices appreciate over a long-time horizon.

IS IT SAFE TO ASSUME THE HOME WILL BE A SUBSTANTIAL ASSET FOR FUNDING RETIREMENT THROUGH A DOWNSIZING OR REVERSE MORTGAGE?

Owning a home is credited as one of the largest contributions or “escalators” to wealth. With that being said, substantial price appreciation can be observed on homes owned for multiple decades. Upon retirement, some individuals do not need the large family home they used to raise their families and downsize. Downsizing generally results in additional gains pocketed from the price appreciation of the original home versus the price paid for the new, smaller home. Essentially, downsizing is a way to pull out the equity that has accumulated over time as a result of homeownership. Equity is one of the reasons that homeownership contributes so much to an individual’s wealth!

Again, this is very market dependent as a smaller home in a different market may not equate to a smaller price tag all the time.

As to whether the additional “income” from a home sale can fund retirement, that is something the client should consult their certified financial advisor in regard to as everyone’s financial situation and needs in retirement vary.

AS A YOUNG INVESTOR, WHAT DO I HAVE TO DO TO ENSURE I WILL BE ABLE TO SUCCESSFULLY PURCHASE A HOME?

For many young couples looking to purchase their first home, the largest obstacle in achieving that is coming up with the down payment. There has been a definite shift towards this being a large struggle over the last decade as more and more young couples are burdened with large amounts of student debt given the increased costs of education. They are then forced to rent, which can be costly, and have minimal bandwidth to save for a down payment with all their various financial obligations.

A minimum 5-year timeline is reasonable in most markets in order to cover the costs of the transaction on both the buy side and the sell side if moving down the road versus price appreciation over that timeframe. Of course, the longer one stays in the home, the more the transaction costs are spread out over time which is coupled with additional time opportunity for price appreciation.

It does not necessarily always make sense to reach for the most expensive home. If buying the most expensive home they can afford means tapping out their budget and being on the line with meeting monthly expenses, this is probably not the wisest decision. Instead, buyers should look to purchase something in their price range that they love yet still allows them to live their daily lives while meeting financial obligations.

WHAT KINDS OF MISCONCEPTIONS AND FEARS ARE YOU SEEING IN THE MARKET AMONG ALL YOUR CLIENTS?

Working with buyers in the current NYC market, we would identify a lack of urgency as the biggest commonality across different price points. Buyers have an advantage over sellers in the current market as well as a large selection of inventory including both resale and new construction. This can lead buyers to stretch out a search as they feel what they are looking for will “still” be there. Additionally, macroeconomic events such as the political climate, a possible Trade War with China, and Stock Market volatility contribute to Buyers’ hesitancy to leave rentals and make a purchase.

In New York City specifically, the market is also feeling the impact of local laws related to Rentals as well as increased Mansion Taxes. The latter progressively increases the Mansion Tax depending on the sale price of the property. Buyers in the $2-$5M range are likely feeling the impacts of the increased taxes the most.

In regard to young people taking on debt – as referenced in some responses above, we think the young buyer’s mentality towards debt has definitely changed living through the financial crisis as well as coupled with the increasing amount of student debt. As a result, some can be apprehensive to take on additional debt with a mortgage. However, talking through some of the advantages of mortgages, such as tax benefits, as well as reviewing the myriad of products available with a mortgage broker can alleviate some of these upfront concerns. We are seeing younger people having to rent longer than their predecessors given the inability to save for a down payment rather than aversion to taking on debt in the form of a mortgage.