Month: February 2018

10 Tips for a First-Time Homebuyer in NYC

Eric Mendelsohn

  1. Get Pre-Approved– Getting this step of the process done lets you know the maximum amount that you can spend. With a firm price range you won’t fall in love with properties above your budget or see properties above what you can spend. Pre- approval is also required when submitting offers so showing that you have this step done gives you credibility when speaking to real estate agents. Also, the earlier you do this step than the less hassle you have later on when you are in time crunch.
  2. Choosing the Right Real Estate Attorney- It’s imperative to use a real estate attorney who is licensed in New York State. Don’t go using your friend who is a personal injury attorney or your mom’s cousin who works as an attorney in Upstate New York. I would also recommend that you pick an attorney that just focuses on real estate. Buying in NYC has a lot of nuances and you need an experienced attorney who can due the due diligence properly and let you know of potential risks.
  3. Money in Reserves– Most co-op boards want to see 24 months of mortgage and maintenance in reserves post-closing. Without this money in your liquid accounts, you won’t be able to get approved by the co-op board.
  4. Understand Proper Length of Time to Find a Home, Get Approval and Close – Buying a home is an expensive decision and it very unlikely that you want to make an offer on one of the first homes you view. The search process can take a few weeks or months or years depending upon the attributes of a property that you desire. After you have an approved offer, the attorney will need a week to perform due diligence. It will take a few weeks to produce a comprehensive board package that is required in most co-ops. Depending upon the time of the month that it is submitted, it may take two to six weeks for the board to call you in for an interview. Once approved, it will take a few weeks until the closing takes place as management companies have little availability to schedule closings.
  5. Listing Agent’s Fiduciary Responsibility- Although the listing agent will answer all of your questions about a particular apartment, the listing agent has a fiduciary responsibility to the seller and not to you. They are there to get the seller the highest amount possible for the property. It is up to you to bring up questions that affect the apartment’s worth such as new construction that may impact your view across the street.
  6. A Buyer’s Broker is There to Market You– If there are any potential pitfalls that may hinder your ability at approval such as a missed credit card payment or unstable job history, it is best to let your broker know so they can figure out a way for you to gently mention this while keeping the focus on your positives. If financials are a bit tight, your broker can recommend putting a few months of maintenance in escrow. The listing broker/owner/board may have a different take on your issue and writing a letter gives a chance to explain your side of the story. In addition, I have all of my clients write a letter to the owner about why they like the place and how they can imagine themselves or their family being happy in the apartment. These letters work and they can win bidding wars or even save you money as owners want to see their home passed down into solid hands.
  7. Get Mentally Prepared for the Board Package– Most co-ops in NYC require a comprehensive board package. The financial statement must show all of your accounts and tie out to the nearest penny. You will be asked for between two to four personal and professional references. Between all of the forms and documentation required this will involve a lot of your time after you sign the contract. The board package must look perfect and there are no shortcuts.
  8. Treat the Co-Op Board Interview Like A Job Interview- Similar to a job interview make sure to allow extra time to arrive on-time and dress and speak professionally. You should be prepared for probing questions about your life and there is no need to provide details that are not brought up. You are not there to make a friend.
  9. Job Stability Is Important- A bank will recheck your employment status before the closing. If they see you are unemployed than they can rescind your mortgage and then you won’t be able to close. In addition, job stability looks very strong to co-op boards and can help you get through that part of the process.
  10. Gifts– Bank statements are required for the past 60 days when getting pre-approval. If you are planning on getting a gift then lenders won’t see the gift if you received it over 60 days before then. In addition, some co-op’s do not allow gifts so if you plan way ahead then it can give you more apartment options down the road.

 

 

 

Five Reasons to Stage a Home

Eric Mendelsohn

  1. Sells Faster– Staging has proven to produce more offers and sells homes faster than non-furnished apartments. Studies have shown that staged properties sell 88% faster than nonstaged ones. I hear countless stories of apartments that are listed without staging and then are staged and receive multiple offers.
  2. Adds Dollar Value Back to the Apartment- According to the National Association of Realtors, 74% of buyer’s agents said that staging increases the dollar value offered. Staging is typically done for 1% of the purchase price but can add purchase price value back to the property.
  3. It’s the Online Era– More buyers than ever gaze at photos online. With an empty unfurnished apartment, it is much harder to grab the buyer’s attention. Staging provides energy and personality to the apartment while appealing to various buyer demographics and highlights the positives of the apartment. With inventory rising in NYC and more competition than years past, if the apartment fails to look appealing than buyers will go right on to the next listing.
  4. It Can Add Freshness and Personality- Staging is very basic and can add a personality to the apartment and make it more desirable. Replacing dark, old, big furniture with simpler furniture adds more space and freshness to the home.
  5. Helps to Envision the Apartment– – Staging makes it easier for buyers to envision their belongings and the apartment’s potential by giving buyers vision of how the apartment will look.  The National Association of Realtors reported that 77% of buyer’s agents say that staging makes it easier for buyers to visualize the apartment. This is especially true in loft or flexible layout apartments. Staging also puts more focus on the strengths of the apartment and helps get buyers past the parts of the apartment that look dated. Another example is that a buyer may have a king sized bed and additional furniture. Staging can help to show that the bedroom has plenty of room to fit the king sized bed and additional furniture.