Upper West Side Open Houses Draw Crowds

Despite the rain, cold and dreary weather open houses were mobbed this week on the Upper West Side of Manhattan. Buyers are entering the market and they are buying. One pre-war 2 bedroom condo priced at $1,399,000 had about 40 people just 15 minutes after it opened.

About 30 people were at the 2 bedroom 2 bath apartments on the third floor of a post-war full service luxury building. One 2 bedroom condo that came on the market the beginning of the week at $1,150,00 is already in contract and the second open house was canceled. Many realtors planning on taking buyers back to see popular homes for a second time are too late. There is very little inventory in the $1M to $1.4M range.

What does it mean? Is it the Wall Street bonuses? Have we bottomed? Last weeks sell off in the stock market? Is New York the last market to decline the first to recover? We haven't had many foreclosures or sub-prime mortgages. The collapse of Lehman Brothers was what caused our market to decline. Prices are still down from a year ago but there is sales activity.

It's not about tax credits in this price range. Even first-time buyers looking at $1M+ apartments tend to have higher incomes than $125,000 single or $250,000 combined. The $6000 tax credit for current home owners is capped at an $800,000 purchase.

While there are all kinds of reports and gloomy economic studies, high unemployment and a poor national economy, we have to be honest about what we see. There are a lot of people with a lot of money buying real estate in Manhattan.

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Manhattan Real Estate Abbreviations

Most real estate listings use abbreviated terms for features in an apartment. Below are helpful definitions of the most frequently used terms.

4B/2B Four bedrooms and two bathrooms. Bedroom usually means a sleeping area with a window and a closet, but the definition may vary in different places.

Full bathroom Is a room with a toilet, a sink and a bathtub.

Three-quarter bathroom Has a toilet, a sink and a shower.

Half-bathroom or powder room Has only a toilet and a sink.

Balc Balcony

Classic 6 The term ‘classic’ generally refers to a prewar apartment building and the number 6 to the number of rooms. In other words, a classic six is a prewar apartment with six rooms: living room, formal dining room, kitchen, plus two full sized bedrooms, and a smaller third bedroom typically referred to as the maid's room.

Classic 7 A prewar apartment with seven full rooms (one additional full sized bedroom more than a classic six)

Classic 8 A prewar apartment with eight full rooms (two additional full sized bedrooms more than a classic six)

Cookie Cutter A real estate term for a congenial apartment found in most modern buildings.

DCRFPL Decorative fireplace (non functional)

DK Deck

DRMN Doorman

DUP Duplex

D/W Dishwasher

F2C Floor to ceiling windows.

FDR Formal dining room

Fixture Anything of value that is permanently attached to or a part of real property. (Real estate legally is called real property, while movables are called personal property). Examples of fixtures include, installed wall-to-wall carpeting, light fixtures, window coverings, landscaping and so on. Fixtures are a frequent subject of buyer and seller disputes. When in doubt, get it in writing.

FRBO For rent by owner

FRPLC, FPLC, FP Fireplace

Galley Kitchen A full kitchen in which there are two sides, and one would walk through the center

GAR Garage

GARD Garden

GUAR Guarantor

GRMET KIT Gourmet kitchen

HDW, HWF, HDWD Hard Wood floors

HI CEIL High ceilings

JR1 A studio apartment with a sleeping alcove

JR4 A one bedroom apartment with a separate dining room or dining alcove

NR BST SCHLS Near best schools

Pass Thru Pass through window in kitchen to dining room or living room (typically found in galley kitchens)

P.T. DRMN Part-time doorman

Pullman Kitchen A once popular method of space saving, it resembles a closet at first glance. Behind the doors, are two burners, a small sink and usually, a mini refrigerator.

PWDR RM Powder room or half bath

Terrace A private outdoor space, typically larger than your everyday balcony.

Tri Triplex

UPR Upper Floor

VW, VU, VWS, VUS View(s)

WALL OK Pressurized walls are permissible for conversion

WBRFPLC Wood burning fireplace

W/D Washer/Dryer


Contact Alfred Real Estate today for exclusive luxury properties in Manhattan.

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.

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.





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