Kevin Peterson

Recently when I was in Williamsburg, Brooklyn showing condos for sale to an investor I came across a new selling technique from the developers. An up front discount on the selling price that would be honored as long as the client signed a contract by a specific date. New York City is probably one of the few real estate markets that does not slow down to a halt in the Fall and Winter months. We are lucky to be a cosmopolitan city with people moving in and out at all times of the year. Even for rentals there tends to be a steady stream of clientele.

So, when I was in Williamsburg this past Wednesday (if you are following me on Twitter you would already know that) I was shocked to see a 10% up front discount to clients on contracts signed by September 1st, 2010 for a new construction condo for sale on Kent Avenue. The building is selling quite well and expects to begin closing on it's second phase right before the Holiday Season. The first phase only has 1 unit left! What does it mean? Is Beford Avenue in danger of falling off into the East River? Not likely. The developer simply just wants to complete the project smoothly as we come out of a low market.

For a home buyer or investor this is great news. Not only is the buyer getting a great deal but they are getting a great deal at a discount in a high rise building with a pool! Try spending $700,000 in Manhattan in see what amenities you get. Definitely not a 2 Bed/2 Bathroom condo on the water front with a 25 year tax abatement. If you are looking for a great condo for sale in Williamsburg, Brooklyn contact me today to discuss your options. Discounts will not last forever so STRIKE WHILE THE IRON IS HOT and lock into a great deal and low interest rate.

In Manhattan an estimated third of your income can be expected to go to housing. As one of the most expensive places to live in the United State finding an apartment for rent in Manhattan can be hard. So when it comes to finding an apartment everyone has an opinion on how to get one. Commonly people use brokers (real estate agents) in Manhattan. The typical fee charged has been 15% of one year’s rent. This said in the last 2 years when the recession hit hard in Manhattan many landlords were offering to pay a reduced fee to the broker of one month's rent plus give the tenant 1-2 months free. An extreme example of this happened in the Financial District where landlords would have very long lists of availability because of heavy layoffs, landlords offered up to 3 months free on extended lease terms. So in theory tenants were saving thousands of dollars.

So what about today's market in Manhattan? With very few people obtaining mortgages and new hires and students beginning to return to the city renters are in for a sad surprise. Not only is the O.P. gone but so are the free month’s rent. Renters looking to move are finding less and less to pick from the No Fee market even as new buildings open up. Places like 505 West 37th Street are completely leased out of studios and their 1 bedroom apartments are now starting at $3300. Silver Towers who was once the hardest hit on the West 42nd Street strip where once offering incentives that kept their apartment prices low. Now their studios are starting at $3000 per month. Even with 2 months free on 14 months free the majority of Manhattan renters cringe at these prices even though they are still renting.

I mostly handle luxury buildings but recently through referrals I have been showing quite a few regular elevator and walk-up buildings. There are virtually no land lords (the ones that are I would feel comfortable showing) are offering any incentives. Rents still may have a little wiggle room but no more than 10% asking rent. So what do you say to client who refuses to pay a brokerage fee? Simple, "Sorry, but I do not think I can help you."

A client who wants to shop endlessly and is not willing to pay for services due is not a client at all. In a typical 9-5 office setting it is illegal for an employer to up and say "You know what? I love what you are doing for me and the company but this week I'm not going to pay you because I really just don't feel like it." In an industry where very few of us receive salaries or hourly wages it is important to remember that we do provide a very valuable service in Manhattan placing people into homes they are comfortable in.

Hey Everybody In Real Estate Land!

I'm using my new Twitter account to give everyone the inside scoop on the best deals in the city. Follow my tweets through my Twitter name "KevintheBroker"! I'm going to sending tons of tweets on the best rental deals, new construction condos, co-ops, condos and much more for real estate information and fun in the city! I looking forwarding to serving you all of you!

Hi Everybody:

To start my blog I thought it would be wise to start with an article on one of the most daunting yet fundamental aspects of the New York City real estate market; renting. Getting a lease in the city can be one of the most aggravating experiences in the city. With a high standard for approval, red tape, and a comparatively low vacancy rate to the rest of the United States, Manhattan is still a city of renters. Let’s first look over the basic criteria for what a landlord is looking for in an applicant.

A) The landlord as a rule of thumb asks for the applicant to make 40 times the monthly rent. For example, if the apartment is $2,000 per month then the applicant (or applicants’ combined income) must be $80,000 or more annually. In some instances the landlord may require the applicant to make 45 times or even 50 times the monthly rent. It is always best to consult first with your broker as to your personal income in regards to the apartment you are applying for.

B) The landlord also wants the applicant to have good credit. In some cases the credit must be as high as 700 while some landlords will accept lower. If your credit is fairly poor expect to have to pay additional months of security. If you have issues in either of these categories make sure to discuss this with your broker first so you do not try applying for an apartment you have no chance at getting. You can also use a guarantor who is someone who is willing to vouch for responsibility for you if you fail to pay rent. They too must have good credit but must make 80 times the monthly rent. For example, if our apartment above is $2000 per month then the guarantor must make at least $160,000 per month.

Are you officially scared off from moving into the city? Don’t be, literally thousands of people do this every year through the aid of a licensed broker in Manhattan! So you have checked yourself out that you qualify for both A and B, now what? Time to put together your application package and submit all of your paper work, remember, the majority of Manhattan landlords will not accept your application unless it is complete. You will need:

1) Your last 3 pay stubs.*

2) Your last two tax returns.

3) A letter from your employer on company letter head and signed stating what you do, how long you have been doing it, and how much you earn annually.*

4) *If you are self employed items 1 and 3 are replaced by a letter from your C.P.A. (Certified Public Accountant).

5) Your last two banks statements for your checking and savings account.

6) The application fee usually payable by credit card or certified check which can range from $55-95 depending on the landlord.

After you have handed over your complete application to your broker then approval will take usually 1 to 2 business days it is then after approval that you will need to come in and sign leases. At this time you will need to bring all monies due in the form of separate bank certified checks. This will include but may not be limited to:

1) Agreed upon security with the landlord.

2) First month’s rent.

3) Brokerage fee balance that is due at lease signing.

Now that you have your place, go ahead, hug your broker and celebrate! If anyone has any further questions please feel free to contact me and ask. I have been handling rentals in Manhattan for four years and would love to share my knowledge with you on the Manhattan rental market.

Kevin Peterson

Level Group Realty New York, NY

Phone: 646.912.5142

email me: kpeterson@levelgroup.com