Gov. Paterson wants to impose mortgage tax on Co-ops

Governor Paterson wants to impose the NY state mortgage recording tax on Coops. Coops have been exempt from the state mortgage tax because coops are not considered "Real Property" they have been considered personal property.

Prior to 1989 coops were exempt from transfer taxes. Until a few years ago coop sales were private and not in the public records.

Financing a coop is technically not a mortgage but a coop loan. Coop owners purchase shares in a corporation that owns the building. Coop shareholders have a proprietary lease.

Current mortgage tax on condos and houses are between 2% and 2.175% depending on the mortgage amount. Below $500,000 or above $500,000. All purchases above $1 million are also subject to a 1% mansion tax.

If this new tax is approved most of the revenue will go to NYC. It may have an adverse effect on the value and sale prices of coops.



If you've been thinking about buying a coop and need financing, Now Is the Time before this new mortgage recording tax for coops is implemented. Contact Alfred Real Estate Today.

4th Quarter 2009 Market Report

Courtesy of Alfred Real Estate

News Update

Freddie Mac: Mortgage interest rates fall below 5 percent for third week this year

Thirty-year mortgage interest rates fell below 5 percent for the third week this year, according to a Freddie Mac survey released yesterday. For the week that ended Feb. 11, the 30-year fixed-rate mortgage had an average 4.97 percent rate, down from 5.01 percent for the week earlier and from 5.16 percent for the same week last year. The 15-year fixed-rate mortgage was down to 4.34 percent from 4.40 percent during the week-ago period and 4.81 percent in the year-ago period. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.19 percent, down from 4.27 percent last week, while their one-year counterparts were up to 4.33 percent from 4.22 percent one week ago. The drop in interest rates on fixed-rate mortgages "helps a number of homeowners to refinance their existing housing debt," said Frank Nothaft, vice president and chief economist at Freddie Mac, noting that the latest survey from the Mortgage Bankers Association found that more than two-thirds of mortgage applications have been for refinancing since the start of 2010. "In mid-June of last year, for example, 30-year fixed-mortgage rates topped nearly 5.6 percent. Currently, the monthly payments would be almost $77 per month lower on a $200,000 loan balance."

Existing home sales rise nationwide

Existing home sales rose in 48 states and the District of Columbia during the fourth quarter of 2009, according to a National Association of Realtors survey released today, with 32 states seeing increases in the double digits from the third quarter. Forty-nine states and D.C. saw sales rise year-over-year from their levels in the fourth quarter of 2009. Nationwide, total sales rose to a seasonally adjusted rate of 6.03 million single-family and condo units, thirty-two percent of which were distressed property units. The median single-family price was $172,900, a 4.1 percent drop from the fourth quarter of 2008. The nationwide number represents a 13.9 percent increase from the third-quarter 2009 figure of 5.29 million and a 27.2 percent rise from the 4.74 million sales registered for the year-ago period. "The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates," said Lawrence Yun, NAR's chief economist, in a statement.

Contact Alfred Real Estate Today.

Manhattan’s Unique Style Lures Overseas Buyers

New York is one of the most desirable cities to visit on earth. From partying and posing, to shopping and star searching, there are unlimited factors of the city’s appeal. But does the property market have equal dazzle?

The answer is absolutely. Britons buying in the Big Apple look to Tribeca (the Triangle Below Canal Street), where artists discovered loft living in the Sixties, and SoHo (South of Houston Street), where the landscape has a European feel with cast-iron balconies and low-rise blocks built to house Italian immigrants arriving in the 19th century.

There is also Chelsea, a popular artistic and gay quarter, with loft buildings and brownstone family houses, and the legendary bohemian area of Greenwich Village. Prime Manhattan real estate close to Central Park attracts the wealthiest of buyers. And the prices are reputedly the lowest they will go.
"Prices are still down from a year ago, but they're improving. Unemployment has risen, but New York's labor market has been more resilient than the national average," says Walter Molony, of the National Association of Realtors, an umbrella body representing estate agents in America.

He forecasts the city's prices are likely to hold up - and possibly rise in the near future - because the number of new homes being built in NYC is a whopping 88.5 per cent below the long-term average.

Developers feel the same. In an interview for financial TV service Bloomberg, Barry Sternlicht - head of the Starwood firm, which specializes in building new apartments - says homes in his firm's new scheme at Battery Park are "selling like hot cakes".

Unlike many cities, where low cost wrecks are a thing of the past, New York has plenty of what Americans call 'fixer uppers' - old former industrial properties ripe for turning into homes. The Garment District on Manhattan's West Side still has plenty of examples for those wanting a renovation project.

New York estate agents also tip Washington Heights for price growth and, just across the Hudson in New Jersey, there are good-value homes to be found in the commuter town of Hoboken - popular with many British professionals who work in Manhattan.

One of the most dense, buzzing urban centers in the world, New York consists of five boroughs - The Bronx, Brooklyn, Manhattan, Queens and Staten Island. There are about 10 million residents across the city. The wider commuter area, stretching into New Jersey, has another 12 million.

And with prices as low as they are likely to go, this might be just the time to take a hearty bite of the Big Apple.

Celebs make NYC a Home away from Home

British-born actress Kim Cattrall has a Manhattan pad - appropriate enough, given her role as Samantha in Sex And The City. Close by are the homes of Coldplay’s Chris Martin and his wife Gwyneth Paltrow, and American heiress Nancy Shevell, girlfriend of Sir Paul McCartney. Harry Potter star Daniel Radcliffe is reported to have no fewer than three New York homes - and he’s only 20.

But thousands of other Britons live in more modest New York properties - and there is a vast infrastructure to help them settle in. The most famous hang-outs for expatriates include Soho House, a private members’ club and hotel in the grungy Meatpacking district, and the Red Lion pub, a live music bar based in Bleecker Street. There is also Tea & Sympathy, a restaurant and shop in Greenwich Village. It serves a full English breakfast, roast beef at lunch time and cucumber sandwiches for tea. Devon fudge, Hob-Nobs and videos of vintage TV sitcoms are on sale in the shop, which was founded 20 years ago by Nicky Perry, from Eltham, London. Kate Moss and Rupert Everett are regulars, and Davina McCall calls it ‘my favorite place in New York’.

Contact Alfred Real Estate Today

Apartment prices show annual decline for the first time in 13 years

The aughts saw more price appreciation than the 1980s or 1990s; number of sales drop for past two years.

Market reports released last week depict the spectacular rise of home prices over the past decade, but also the abrupt arrival of the real estate slump in Manhattan.

In 2009, Manhattan co-ops and condos saw year-over-year declines for the first time since 1996. The average 2009 apartment sold for $1.39 million, down 12.5 percent from the previous year. The median price dropped 11 percent to $850,000 from 2008, while the average price per square foot sank 14.2 percent to $1,073.



Other areas of the country have seen real estate activity and prices decline gradually over the past few years, but the Manhattan real estate market was still booming until the Lehman Brothers collapse in the fall of 2008. In fact, Manhattan prices set new records in 2008. That year, the average sale price of a Manhattan apartment reached a new ever high of $1.59 million, while the median was $955,000 and the price per square foot was $1,251, according to the report.

The number of sales sank 27.9 percent to 7,430 in 2009, from 10,299 in 2008 and 13,430 in 2007.
In 2009, the median sales price of a Manhattan co-op or condo surged 113 percent from $399,000 in 2000, reports say, while the average sales price climbed 96 percent from $710,778. In 2000, the average price per square foot in Manhattan was $522, about half of what it was in 2009.

The aughts saw more price appreciation than either of the two prior decades. The average sale price increased 96 percent throughout 2000s, but it grew only 26 percent in the 1990s.

One reason for the dramatic price increase was the mid-2000's construction boom of new condominiums. In 2000, co-ops represented 60 percent of the units that changed hands, but in 2009, that percentage had shrunk to 46 percent, while condos made up 54 percent. Co-ops still represent about three quarters of the total housing stock in Manhattan.
Because of the new construction, Manhattan's housing stock is more luxurious than it was a decade ago. Easy credit and speculation also helped fuel rising price in the last decade, even in the face of 9/11 and two recessions.


In addition, New York City itself was transformed during the late 1990s and 2000s as crime rates fell. Manhattan's enhanced reputation for safety has made it more desirable to foreign buyers, who in turn helped drive up real estate prices. The run-up in prices can also be attributed to the expansion of Wall Street during the 2000s.


Areas that saw the most price appreciation over the past decade were what brokers called "fringe" neighborhoods like Harlem. For example, the average sales price of a co-op or condo in Upper Manhattan (north of Central Park) in the year 2000 was $170,332, a figure that shot up 204 percent to $519,169 by 2009.

More established neighborhoods also saw prices rise, but not to the same extent. For example, the average price of an Upper East Side co-op rose 110.2 percent to $1.49 million in 2009 from $710,299 in 2000. Condo prices in the same neighborhood grew 100 percent to $2.11 million from $1.06 million in 2000.

An anomaly in the report was Battery Park City, which saw its prices quadruple as new condos were built with much larger units than had been found in the area in the past.

Meanwhile, townhouses saw a slow-but-steady appreciation over the decade, though their prices are also down from 2008.

The average sales price of Manhattan townhouse (defined as a one- to five-family home, delivered vacant) was $5.01 million, down 32 percent from a record $7.37 million in 2008 and up 51.6 percent since 2000. The median sales price was $3.4 million in 2009, down 31.2 percent from a record $4.99 million in 2008, and up 37.2 percent from 2000.

Contact Alfred Real Estate Today

Manhattan Market May be the First to Rebound

According to industry experts, New York City's real estate market will recover ahead of other areas of the country, and perhaps by the end of the year. Many believe that most of New York's overbuilt office space inventory will finally be absorbed in 2010. What's more, distressed properties will become available through deals or foreclosure sales. Furthermore, developers will have the opportunity to begin repositioning themselves as land, construction and renovation costs drop to more reasonable levels.

The Urban Land Institute warns that New York will see vacancy rates skyrocket into the mid teens, office rents plummet 40% and co-op prices drop 25% in its 2010 market forecast. But it also says "New York offers savvy investors opportunity and more affordable costs over the long term."

Experts bet that New York will recover before other areas of the country because in his view, the region didn't indulge as much in over-development as did places like Las Vegas and Miami. The high construction costs and the wherewithal needed to obtain all the necessary permits prevent many speculators from coming in and developing properties in Manhattan.

Those barriers give well-financed industry players an advantage during times of crisis like now. Since many companies resisted buying properties or starting new projects when the market was peaking between 2005 to 2008, they did not become loaded down with debt. Nor are they stuck owning properties that are now worth significantly less than they were just a few years ago.

When looking at investment opportunities, residential is the healthiest area of real estate because the need for housing is perpetual. Commercial, which will benefit when jobs return, is the next strongest area, followed by hotel, which is benefiting from strong tourism. As prices continue to drop in 2010, individuals should look for opportunities to buy property in Manhattan at a discount while they can.

Contact Alfred Real Estate Today

Baby Boomers: The New Buyers

While baby boomers largely disappeared from the city's real estate market in the wake of the financial crisis, experts say this key demographic is now becoming active again. By 2030, Manhattan's population of people aged 65 and older is expected to surge nearly 60 percent as the baby boom generation ages.

Falling prices are beginning to stabilize, and many of the city's boomers are now putting their large apartments and townhouses on the market as they look to downsize to one- and two-bedroom homes. Suburban empty nesters are also reentering the market with plans to retire in the city, trading in their large, labor-intensive houses for apartments rich in services.

The preferences of these buyers and sellers have already begun to shape the market in some neighborhoods and buildings and will increasingly sculpt the next wave of real estate sales.

The term 'baby boomers' refers to anyone born between 1946 and 1964, during the explosion of more than 77 million births that followed World War II. As the oldest of this generation approaches retirement, the number of people over 65 in Manhattan is projected to rise to 295,000 by 2030, up 57.9 percent from 2000, according to city data.

Many boomers are looking to retire in urban settings, for at least part of the year, rather than decamping to warmer climates, according to Paul Bishop, the vice president of research at the National Association of Realtors, which published a 2006 study called "Baby Boomers and Real Estate."

"Boomers are looking to move back into an urban setting after years in the suburbs," said Bishop, noting that cities like New York are attractive because they offer easy access to public transportation, health care, culture and restaurants.

Heavy losses in home equity and their stock portfolios caused boomers to largely disappear from the New York City real estate market after the financial crisis of 2008.

The number of baby boomers buying and selling homes in the city will only grow in years to come, brokers said.

Contact Alfred Real Estate Today!

New York City to Receive $20 Million in Stimulus Funds

City Will Use Funds to Assist Homebuyers, Purchase and Renovate Foreclosed Units and Develop Vacant Sites 



U.S. Department of Housing and Urban Development (HUD) has awarded more than $20 million in Recovery Act funding to the New York City Department of Housing Preservation and Development under HUD's Neighborhood Stabilization Program 2.



The grants were awarded competitively to applicants who developed the most innovative ideas to address the impact of the foreclosure crisis on local communities while demonstrating they have the capacity to be responsible stewards of taxpayer dollars. The City will use the funds to buy, renovate and resell foreclosed properties in the most-affected neighborhoods to low- and moderate-income families.



In addition to the award to HPD, two other New York City housing agencies received NSP funding in Round 2: Habitat for Humanity New York was awarded $10.5 million and Community Builders received an award of $5.5 million.

Contact Alfred Real Estate today.

Co-op Boards Making (Small) Compromises

Co-op boards are starting to become slightly more flexible in light of the market. It looks like 2010 is going to be another challenging year for the real estate industry, and a growing number of brokers urging co-op boards to consider broadening their pool of acceptable buyers—and it appears to be working. Some of the boards are actually starting to bend, and this could help boost co-op sales in 2010.

With sales volume so far down from the peak of the market, sellers often have to waiting for months to find a buyer, only to see that buyer rejected. Boards are starting to believe that to enable shareholders to get the maximum price for their apartments they have to be a little more flexible with regard to the buyers. The current economic climate has made boards more wary of the financial situation of buyers, so in return some brokers have convinced boards to ease up on allowing compromises on pet policies and pied-à-terres.

Boards are, of course, still insisting that potential shareholders have steady jobs and plenty of cash. In addition, they are less likely to accept residents who are self-employed or whose incomes fluctuate from year to year. Even with more willingness to compromise, boards will only make exceptions for extremely well-qualified candidates.

Contact Alfred Real Estate today.

Tenants of Rent-Stabilized Apartments: The Newest Homebuyers?

Rent-stabilized tenants appear to be the newest addition to the ranks of new homebuyers. In New York City, nearly 70 percent of the population rents — about double the rate for the rest of the country. Most New Yorkers don’t take the decision to rent lightly. However, since home prices in New York have dropped as much as 30 percent since the height of the real estate boom, even people who are paying way under market rates for their rentals are venturing into the housing market.

The Times' lead-off anecdote is a retired school teacher who is trading a $725/month East Village studio for a $305,000 studio in a doorman building on the Upper West Side. Even though he and other buyers making the transition from stabilized renting to owning will end up paying more than they do now, most are certain it beats renting at market-rate.

Those who decide to leave rent-stabilized apartment know that they will probably wind up paying more, but they have some very compelling reasons for leaving the security of their rented abodes. Some have the desire to upgrade to a nicer building or a larger space while others give up size for the experience of owning. There are some who make the move because they know that their rents will soon head into market-rate territory anyway. Despite sharing other secondary motives, their main incentive is sales prices that have been heftily discounted and mortgage rates that are hovering enticingly low at around 5 percent.

Market experts say there is a chance that prices may drop slightly over the next quarter, however now is probably as good a time as ever to buy. Even if buyers aren’t getting a rock-bottom price, prices have come down substantially and buyers will get a good, reasonable deal at very low mortgage rates.

Contact Alfred Real Estate today.

The Manhattan Market for Foreign Investors

This week Jonathan Miller from Miller Samuel Inc. looked at Manhattan through the eyes of European buyers who were buying property in droves a few years ago.

He charted median sales price (black line) against median sales price adjusted for the difference between the Euro and the US Dollar (red line). The gray columns show the percentage difference between the Euro and the US Dollar at the end of each quarter.

The spread remains wide compared to a few years ago, when all those foreign investors were active in the market.

The weak dollar and the spread between various currencies remains a compelling economic force for those who can afford to buy in Manhattan. With the addition of prices being at the lowest point in decades, now is the time for foreign buyers to invest in Manhattan real estate.

Other news from the Real Estate market indicates that now is the time to invest. For example, mortgage rates are at their lowest point in years. In addition, the stimulus first home buyer tax credit has been extended to April 2010, giving first time buyers more incentive to take advantage of this market.

Foreign investors: Take advantage of the market today. Contact Alfred Real Estate.

The Buyer's Guide to Preparing a Board Package

When purchasing a co-op apartment, you will be required to complete a purchase application and assembling a board package—a comprehensive presentation of financial documents and references. The main purpose of the board package is to guarantee the corporation of your financial ability to support the apartment and to give them confidence that you will be a “cooperative” shareholder and welcomed member of their community.

Each co-op has its own set of requirements and application forms, which Alfred Real Estate will obtain for you from the managing agent of the building. The package will most likely consist of:
Purchase Application: This should be typed. Fill in all blanks and answer all questions (fill in “not applicable” when necessary).

Credit Release Form: This allows the managing agent to obtain a credit check for each applicant.

Financial Statement: This is a statement of all assets and liabilities and supporting documents. The sums on the statement must reconcile with the attached supporting documents. Every item on the statement (except personal property) must be documented. Don't forget to add earnest money (deposit on contract) in the asset column.

Reference Letters: You will be asked to provide a combination of personal and business reference letters. It is through these letters that the board will attempt to get to know you. Have your friends and associates write positive things about you-but also include some basics: How long have they known you? How did you meet? Why do they think you will make a great addition to the community? If they live in a co-op or have served on the board at their building, it is a good thing to mention. Letters should be addressed to the Board of Directors, on letterhead and with their contact information.

Tax Returns: Most co-ops require two years' worth of tax returns including all schedules and W-2 forms.

Landlord Reference: This verifies your prompt payment of rental or maintenance charges.

Bank Reference Letter: Just ask a banker at your local branch. They do this all the time and will know what you are talking about.

After you've gathered together all your documents, your agent at Alfred will have them copied and submitted to the managing agent for you. As a rule, if you are applying for a mortgage, managing agents do not accept any papers without a written commitment letter from the bank.

First-time Homebuyer Tax Credit Extension Highlights

In addition to record low co-op, condo and mortgage rates, those who bought a main home recently or are considering buying one and who haven’t owned a main home during the past three years qualify for the first-time homebuyer credit.

• This unique credit of $8000 is refundable, which means you don’t have to pay it back to the government!
• It can be claimed on either your current return or you can amend your previous tax returns.
• If you owe less tax than the amount of the tax credit, say $300 to the government before claiming the credit, the government will send you a check for $7,700.
• Even if you had no income in 2008 or 2009, owed no tax, and purchased a qualifying house in 2009, the government will send you a check for $8,000.
• This deal applies to Manhattan apartments, co-ops and condos priced at less than $800,000.
  

Get in touch with Alfred Real Estate today to take advantage of this once in a lifetime opportunity.

For more details on the first-time homebuyer tax credit extension, click here.

Manhattan Rental Market Shows Signs of Stabilizing

November market reports indicate that while Manhattan is still showing some of the lowest rental prices over the past few years, rates over the past couple of months appear to be stabilizing.

Rents dropped just .03 percent this November, compared to October. This figure has caused experts to speculate that the market is stabilizing, because a more dramatic seasonal decline is typically seen during the month.

"We were actually somewhat surprised to see that November [prices] were [so stable]," says Daniel Baum, CEO The Real Estate Group of New York. He attributed the unseasonably strong numbers to a delay in spring Wall Street hirings. Businesses in Manhattan are beginning to take on new employees, and the influx of new hires appears to be reviving the rental market.

Inventory also showed improvement in November compared to October, with overall Manhattan rental inventory dropping 5.36 percent and non-doorman inventory down 11.94 percent.

Some Manhattan neighborhoods, such as Soho, are still experiencing drops in rental prices. This would indicate that while the market is showing signs of stability, there is still a chance that rents will go lower in many areas of Manhattan.

The bottom line: It is still a renter’s market. Now is as good a time as ever to rent in Manhattan. With inventory high and prices low, you could be renting your dream home today. Contact Alfred Real Estate today.

Bidding Wars are Back!

Last week the New York Times published an article “Bidding Wars Resume” which tells the stories of recent sales resulting from multiple bids from prospective buyers.

As a seller, bidding wars create a situation where you have multiple choices for a sales price – although not always above your asking price. Even in a bidding war it is difficult to obtain a price that is above actual market value for unless the purchaser is paying all cash, the bank providing the financing will perform an appraisal.

Take note of the differences between asking price and market value. Market Value is traditionally defined as the price someone is willing to pay for something. Asking Price is more of a marketing vehicle. It can be set at a point below, at or above market value.

One appraisal firm believes that two-thirds of the estimated 4,000 apartments for sale in Manhattan are overpriced. But those apartments priced 20 to 30 percent the highs of early 2008 are attracting multiple buyers willing to outbid each other, on everything from starter one-bedrooms in Brooklyn to Central Park West luxury enclaves. One two-bedroom on the Upper West Side, for example, sold within two weeks by a Manhattan firm in October for $1.8 million—at over $200,000 more than the listed price—following a bidding war among nine suitors. Brokers are attributing the phenomenon to pent-up demand and a shift in the confidence of buyers entering the market since Labor Day. The weak dollar also helps, attracting foreign buyers.

According to experts, those that are pricing for 2009 or 2010, i.e., “for buyers who think prices might go down another 5 or 10 percent,” are the most likely to attract better bidders. Pricing below market value can actually result in the apartment being sold far above fair-market price.

In any situation - bidding war or not - both buyer and seller should be aware of the data on comparable sales and available competing listings when making their decisions.

Alfred Real Estate is a residential New York City brokerage dedicated to providing outstanding service to home rental and sales clients from all over the world. We will keep you up to date on co-op and condo apartments in Manhattan and recommend the best course of action for your New York City Real Estate.

Don't Ditch Your Broker

In today’s market, some buyers have been ditching their brokers with the hope of striking a better deal by cutting out their agent’s commission. Don’t be fooled by what may seem to be an easy way to make a buck—this underhanded move will most likely cost you.
Some buyers also believe that the seller will give them a discount if they don't use a buyers' broker, since that means paying one commission, not two.

"People think they're going to get a better deal if they don't use a buyers' broker," said Kate Meckler, a senior vice president at Sotheby's International Realty, noting that buyers seem more concerned with that than usual in a climate where they are "thinking out every dollar and where it's going in the deal."

In reality, the commission for both the seller’s broker and the buyer’s broker is determined in advance, and the seller generally pays the same percentage regardless of whether it is split between two brokers.

Although there are some cases where the listing agent agrees to take a slightly smaller commission to help a deal go through, buyers' brokers are often more effective at negotiating the best possible price for a client, Meckler said. And new developments are especially keen to work with buyers' brokers in the current climate, where they get less walk-in traffic, since buyers' brokers bring in potential purchasers.

So stick with Alfred. Alfred has exclusive luxury properties and staff whose mission it is to find the top properties that exceed our clients' expectations. Our brokers are NYC Manhattan real estate experts. Whether you are searching for furnished apartments, condos, co-ops, lofts, townhouses, brownstones, luxury living, new flats or developments, we have professionals available to meet your housing needs. Our agents are very accommodating and offer service in English, Spanish, and Portuguese. We will keep you up to date on co-op and condo apartments in Manhattan and recommend the best course of action for your New York City Real Estate.

Timeline for Purchasing a Condo, Apartment, Co-op, Flat, or Townhouse in Manhattan

Now is the time to invest in Manhattan real estate. Don’t be put off by the seemingly daunting task of going through the many steps of buying a new home. Knowing what you are getting into and being prepared make the process not only easy but enjoyable.

Listed below are the appropriate steps to take to ensure you will find the perfect home in Manhattan:

• Seek pre-approval for a mortgage. You will need 1 to 2 days for this. It is very important to know how much you can spend before you spend it. Condominium apartments require at least 10% down; cooperative apartments generally require at least 25% down. However, every building is different.
• Find an apartment. Searching for an apartment can take from 3 to 6 months depending on what you are looking for. The average potential buyer sees 20-25 apartments before deciding on one. Much time can be saved by those who do their own research on the internet before the physical search begins. The average number of apartments viewed by our internet buyers before buying is 4-5.
• Negotiate on the Apartment. Negotiation can take from 3 days to 2 weeks. Everything is negotiable so inquire about fixtures, window replacements, air conditioners, rugs, floors, curtains, appliances, working fireplaces, washer dryers, etc. Apartments are delivered ‘broom clean.’
• Sign a Contract. The typical time frame for this is 1 to 3 weeks. In NYC buyers and sellers typically each have their own attorneys representing them. The seller's attorney draws up the contract for the buyer's attorney and the buyer's attorney performs ‘due diligence’ which includes reading building’s board minutes, financial statements, etc. in order to determine whether there are or may be any hidden problems or expenses in the building. If the buyer is satisfied after “due diligence” is performed, he or she signs the contract and his/her attorney forwards it with a 10% deposit to the sellers who then execute the contract. Contract contingencies include obtaining financing and board approval. The quicker the contract can be signed, the better. A contract is binding only after both parties sign it.
• Apply for a Mortgage and Receive Commitment Letter from Lender. This process can take a number of weeks. Mortgage applications cannot be processed without an executed contract. If an apartment is being financed, the board requires a commitment letter from a lender. These letters are generally the last items to complete a board package/condo application.
• Complete a Board Package or Condominium Application. Allow yourself ample time for this step. Cooperative apartment buildings require board approval before a closing can take place. Condominiums require an information packet to be completed before a closing can take place. In order to review a potential purchaser, the Board of Directors for a co-op demand extensive information in a Board Package. Most Boards request full financial disclosure (net worth) with supporting documentation, employment history, current salary, personal and business references, tax returns for the previous 3 years, credit history, etc. Those who do not want to supply this information should consider investing in a condominium. Board packages/condo applications are given to potential purchasers to fill out after a contract has been executed. If there is no financing, it usually takes about 2-4 weeks to gather the information for the board condominium application.
• Submit Board Package or Condo Application for Review by the Managing Agent. You must allow 1 to 4 weeks for this. The buyer's real estate agent will help complete the Board package and he/she will forward the package to the managing agent of the building. The managing agent will inspect the package to ensure it is complete. The package will then be forwarded to the Board of Director's of the co-op. After the Board reviews the package, they will decide if they would like to meet the potential purchaser.
• Meet the Co-op Board for an Interview. Typical board interviews takes from 30 minutes to 1 hour. Co-op boards typically meet once a month. Although a board interview may be granted, this does not guarantee board approval.
• Receive Approval from Board. You will most likely receive notification from the board about the status of your acceptance in less than 1 week after board interview. The managing agent will generally alert the seller's broker whether a potential purchaser has passed the board.
• Schedule a Closing. Closing dates are specified in the contract of sale, but may have to be adjourned if the board has not given its approval by the contract date. Managing agents generally set the date for closings, and lawyers for sellers and buyers coordinate with the appropriate banks on available dates and times.
• Typical Time Frame from the time an apartment is found, to the time an apartment closes: 3-5 months

Contact Alfred Real Estate and get started on purchasing your Manhattan dream home today.





Search Engine Optimization and SEO Tools

Congress approves first-time homebuyer tax credit extension

Good news for people who want to buy a home but just can't close prior to December 1, 2009. Congress has extended the first time home buyer tax credit into April 2010. Obama is expected to sign the bill into law today.

The first time home buyer tax credit extension allows a buyer to enter an agreement with a seller by April 30, 2010 and close on the house by the end of June 30, 2010. First time home buyers are defined as anyone who has not owned a home for the past 3 years. First time home buyers will get an $8,000 tax credit, similar to the tax credit for much of 2009. Other home buyers, who have owned their current home for at least five years, are eligible for a $6,500 tax credit.

Income limitations have been increased to $125,000 for single filers and $225,000 for joint filers. The purchase price of the home must be less than $800,000. The estimated loss in tax revenue to the government comes to $10.8 billion.

“The substantial rise in home sales we’ve seen over the past few months proves that the tax credit is working and is being used by buyers who were waiting for the right opportunity to get into the market,” said NAR President Charles McMillan. “This important incentive is helping to stabilize the housing market, stimulate the economy and create new jobs in communities all across our great nation. Extending and expanding the home buyer tax credit will enable even more families to take advantage of current low interest rates and affordable prices to invest in their future through homeownership.”

Take advantage of the tax credit today. Contact Alfred Real Estate today view furnished apartments, condos, co-ops, lofts, townhouses, brownstones, luxury living, new flats or developments. Our agents are very accommodating and offer service in English, Spanish, and Portuguese.

NEWS UPDATE: Prices Stabilize, Sales Increase for Homes in NYC

According to REBNY, Citywide Home Prices Up 4% From Last Quarter, Sales Volume Increased 35%

Average home prices in New York City climbed in the third quarter of 2009 compared to the previous quarter, reversing the trend that began last year. This is a sign that the market could be leveling off. Prices were down 14 percent to $670,000 from this time last year. However, for the second quarter in a row, Manhattan home prices declined, dropping five percent to $1,233,000 compared to the second quarter of 2009.

Average home sales prices (which includes cooperatives, condominiums and one-to-three-family dwellings) increased by six percent in Brooklyn to $534,000 and by three percent in the Bronx to $367,000 compared to the second quarter of 2009. Average prices in Queens increased by one percent to $406,000 and Staten Island home prices declined by one percent to $382,000 compared to last quarter.

The report found that citywide sales volume increased 35 percent to 9,734 compared to last quarter. Manhattan sales volume increased 59 percent to 2,840 while sales volume in Brooklyn increased 27 percent to 2,102. "

While we see the market slowly coming back to life, REBNY President Steven Spinola says that in order to be sure of the market recovery the trend must continue for at least two more quarters. But, nevertheless, sales volumes noted in this third quarter report show that it was a busy summer for real estate transactions—a reliable sign that the market is on the rebound.

For a more in depth look at third quarter market reports, click here.

The Pedestrian Friendly Future of 42nd Street

On March 25th 2009 Manhattan’s iconic Herald Square and Times Square were closed to traffic. Broadway is now a pedestrian mall from 47th to 42nd Sts. and from 35th to 33rd Sts. Mayor Bloomberg and other proponents of the street shutdown believe that their decision to close the area to motor vehicles will make New York more livable by reducing pollution, cutting down on pedestrian accidents, and helping traffic flow more smoothly.

Now, some people say they believe the city should take an even more radical step: close 42nd Street to car traffic and build a light rail system to run the width of Manhattan.

The main supporter of this proposal is an organization called Vision 42, a citizens’ group with dozens of supporters. Formed in 1999 by the Institute for Rational Urban Mobility, Vision 42 is a nonprofit corporation that finances its initiative with grants from the New York Community Trust/Community Funds Inc. and the John Todd McDowell Environmental Fund.

The proposal put forth by Vision 42 would add a light rail line that would connect the 39th Street ferry terminal on the Hudson River, near the Jacob K. Javits Convention Center on the West Side Highway, with the 36th Street ferry terminal on the East River, near the undeveloped Con Edison sites on the Franklin D. Roosevelt Drive. The plan also includes a proposal to turn the full length of 42nd Street into a pedestrian mall.

George Haikalis, an engineer who serves as a co-chairman of Vision 42, says the light rail system, which would cost an estimated $500 million, would run from terminal to terminal in about 20 minutes—half the time that the current bus system takes.

Advocates for Vision 42 say they have large owners of real estate on 42nd Street on board with the proposal; however they have not been able to get the city involved in a discussion. Many advocates of the light rail line believe that Mayor Bloomberg is worried about the rail system competing with the plan to extend the No. 7 subway line.

Advocates of light rail said that there was still a need for better surface transportation, since the No. 7 line has no stops east of Grand Central Terminal at Lexington Avenue. Jeffrey Gural, the chairman of Newmark Knight Frank, a real estate company that manages office buildings along 42nd Street, said it would make sense to connect the Javits Center to the United Nations, which currently has no subway stop. The light rail would stop at every intersection along 42nd Street and produce less pollution than the bus system.

Citizens and visitors to cities such as Amsterdam, where traffic is cut off to the city center and light rails serve as the main means of transportation, say the city feels much safer. “Real estate people should take a look at what’s happened with real estate values in other cities where there are these walking streets,” said Mr. Douglas Durst, the chairman of the Durst Organization, which owns five office buildings on 42nd Street, including One Bryant Park and 4 Times Square. “They’ve increased tremendously.”

An economic study done by the consulting firm Urbanomics of New York, projected that about 398 office properties along 42nd Street would have an average increase in lot value of $188 a square foot because of the time saved with a light rail line, a combined increase in value of 4 percent. The study also showed that completely closing 42nd Street to cars and adding light rail would increase the pedestrian volume by about 35 percent, producing a proportional annual increase in sales of about $380 million for the street’s 126 retail outlets.

While the benefits to having a light rail system seem to be clear cut, it is yet to be seen whether or not city bureaucrats will jump on board with the proposal.

What do you think?


NYC Real Estate