Mitchell Hall - Manhattan Real Estate

Back in July I wrote a post Say No to DRUGS store chains, after discovering that 4 of my long-time neighborhood mom and pop retailers were being forced out of business to make way for a mega-Walgreens store.

I expressed my opinion that another Walgreens was not wanted on the Upper West side of Manhattan since we already have drugstore chains on every block. I received numerous comments from members throughout the country that were saddened by the big box malls replacing the ethnicity and small store flavor that was once the face of Manhattan.

Since July this is how my once vibrant block looks like now: Boarded up gutted interior with billboards. This is a familiar look throughout Manhattan. Landlords are not renewing leases from small retailers because they prefer to stay empty until a mega national big box chain comes along willing to pay much more for the space.

All this time, I thought Walgreens was working on the interiors and they would be opening soon. Until I saw this sign the other day: The Walgreens deal fell through. Maybe they read my blog. :)

While it's too late for The Malaysia Grill and the Korean grocer and flower shop since the four stores have already been turned into 6,500 square feet of retail space.

Say No to DRUGS store chains!

While I'm really happy we won't be getting a Walgreens I'm hoping it won't be another drug store chain or bank.

Whole Foods if you're reading this blog please give Christine a call. I hear you are planning a store on 100th Street and Columbus Avenue. IMHO Broadway at 87th Street is a better location for a Whole Foods store.

REAL ESTATE

IS

LOCAL

In Manhattan

OPEN HOUSES SELL

HOMES!

Recently I've noticed a change in Activerain. It's the tone of some bloggers, they're angry arrogant and hostile. Opinions and personal experiences are written as though they are facts. Commenters that disagree are attacked.

Many posts have been written about "Open Houses" on activerain during the past year. Some agents loathe them some agents such as myself love them - I love to throw a party and to work a room.

I never realized hosting an Open House was controversial. Last night I came across a blog bashing open houses which lead me to a link to another anti-Open House blog and the comments and personal attacks to the commenter's who had a different opinion. Since the posts were written over a week ago and I totally disagree with them I would be remiss if I didn't write this post.

And-YET-another-reason not to Hold an Open House The blogger uses a recent burglary in Manhattan as an argument for not holding Open Houses and links to other anti open house blogs.

Now this might be a perfectly valid reason for a REALTOR® in Orlando to not hold an Open House but an isolated incident has not stopped Brokers in Manhattan from holding Open Houses. New Yorkers are a tough breed. We all need to be more cautious and make sure our sellers lock or remove valuables. In fact it was the broker that caught the buglar red handed. The stolen property was returned. We don't throw out the baby with the bath water. We were attacked on 9/11/01, we will never forget, but life goes on.

You see contrary to this Blog and to similar blogs from the same blogger and his friends. OPEN HOUSES SELL PROPERTIES IN MANHATTAN!!!! OPEN HOUSES SELL PROPERTIES IN MANHATTAN.

The bloggers from Florida are using a 1% statistic from a NAR survey that says only 1% of homes are sold from Open Houses as their "talking point" They stay on message. They give no other information about the survey or where that number derives from. It's just fuzzy math. Anything from NAR should be taken with a grain of salt.

Since NAR doesn't have a major presence in Manhattan they don't have any numbers from Manhattan...Real Estate is Local... OPEN HOUSES SELL PROPERTIES IN MANHATTAN!

More than 70% of my sales come directly from Open Houses. I host Open Houses to sell my listed properties. I don't hold them to pick up buyers. I usually have another agent with me to watch the crowd or to escort buyers from the lobby. I let the other agent work the buyers. There have been times I've made another sale or listed another seller through an Open House but my primary objective of an Open House is to sell the home. Open Houses sell homes in Manhattan.

It would be presumptuous and arrogant of me to tell a REALTOR® in another market how to conduct their business. However the poster in Orlando advocates telling sellers to throw any agent out of their house and not to do business with any agent that would suggest hosting Open Houses as part of a marketing plan.

Open Houses are an important marketing tool. The goal of my marketing is to get multiple buyers bidding simultaneously on the property. That is my job! The price a seller gets is a function of the marketing you choose. Nothing works better to get multiple bids than orcherstrating the sale by controlling the psychology of the sale activity. Just as the auction houses like Christy's and Sotheby's goal is to get people in the room to get a higher price - get less people in the room get a lower price. My marketing goal is the same.

REAL ESTATE IS LOCAL! If I were as presumptuos as the blogger in Orlando, I would advocate telling sellers "If an agent doesn't hold Open Houses kick them out of the house because they are lazy. They are data entry clerks and not marketers. They put your listing in the MLS and wait for a buyers agent to sell it. They wait and wait. They are passive not pro-active".

In my listing agreement with a seller, either myself or an agent from my office must be present at all showings. Frankly, IMHO if an agent doesn't hold open houses and is never present during showings they are not involved in orchestrating the sale and are not controlling psychology of the sale activity. They're out of the loop.

Florida is not New York. The suburbs of New York are not Manhattan. We don't do signs and lock boxes. Manhattanites work long hours, are paid high salaries, are highly educated, sophisticated savvy buyers and sellers. Sunday Open Houses is when most buyers are available. A Sunday Open House will usually generate about 25 buyers in 2 hours. I can't think of a better way to get that many people to see a property in that amount of time. There is a dynamic at an Open House. Having buyers see other buyers that are interested in the property creates interest and a fear of losing the property. The best offers usually occur within the first two weeks of a listing.

When I list a property I prepare marketing, ads, show sheets, virtual tour, professional photographer, mortgage banker pre-approve the property and do a financial analysis, get the listing on more than 10 websites, create a buzz, send invitations to neighbors during the week. The 1st showing is always a Sunday Open House.

I've had many listings where I have received full price offers from multiple bidders within the 1st half hour. I have also taken buyers to Open Houses where we've made offers on the spot. Usually if I don't receive an offer after two Open Houses I will discuss a price reduction.

Our market can be volatile it changes from week to week. However, no matter the market condition Open Houses always generate serious buyers. In a hot market or a soft market Open Houses are the way to go in Manhattan.

Real Estate is local. For those that "Never say Never"

Some Pointers for Successful Open Houses:

2 Hour Sunday Open Houses are the way to go for the most traffic but evenings during the week work too.

• Get there early to set up, open windows, turn on lights, seller should not be home during OH
• Pets should not be home during Open House
• Make sure there are no valuables in the home
• If you are expecting a large turnout, have another agent help
• Give out show sheets with pictures and all vital information
• Give out a financial analysis sheet prepared by a lender
• Have a guest sign in sheet including name phone number email address and name of broker
• Have offer sheets available
• Know everything about the property
• Know everything about all the other comparable properties
• Display Fresh Flowers

The Kalahari
40 West 116th Street

The Kalahari will be covered in decorations inspired by South African Ndebele tribal designs. Adinkra symbols" and other African designs and markings will adorn the walls.

The 12 story building will contain an independent film center, education center and a gym.

The "green" building features: Eco-friendly systems, wind-energy, filtered air-delivery system, zip cars, etc.

Nearly half of the 249 planned condos have been set aside for moderate-income buyers.

The remaining market priced 129 unit condominium is more than 50% sold.

Currently available are 2 and 3 bedroom units ranging from $700,000 to $1,585,000. The two tower building will be completed in early 2008.

To receive listings of new developments in Harlem click here.

Summer is here and the Manhattan Residential market has not cooled down. Sales activity remains strong, especially among the priciest properties reports The Real Deal.

While new condos hit the market, co-ops are in short supply. Listing inventory is up, but less than last year and the upper end of the market is thriving.

On May 15th I posted the REBNY Residential city wide sales report that reported a 23% increase in apartment sale prices in NYC for the 1st quarter of 07 compared to 06. According to the REBNY report the average first quarter sale price rose to $1,107,000 in Manhattan.

Jonathan Miller, president of Miller Samuel appraisal firm says prices rose 5.4% to $1,290,000. There is high level activity across the market and upper-end pricey properties areharder to find.

I've been very busy the last several months. Actually it's been really busy since Thanksgiving. The market has been busy there are bidding wars. Some apartments in bidding wars are selling for 20% above ask

Understanding Cooperatives and Condominiums

CO-OPS - Manhattan's Primary Housing Style

Co-ops (short for "cooperatives") are apartments buildings owned by a corporation. Individual tenants do not own their apartments in exactly the same way that they would a condominium or home. They actually own shares of stock in the corporation. These shares are apportioned based on the size and floor level of their apartment, and ownership is established by a stock certificate and occupancy is governed by a "proprietary lease". The corporation pays all real estate taxes, maintenance expenses, and the underlying mortgage on the building. The co-op owner's portion of the payment depends on the number of shares owned in the corporation.

Cooperative ownership is the most common form of apartment ownership in New York City. There are three times as many co-ops as there are condominiums in Manhattan, which means that there are more cooperative apartments on the market and they are likely to be more affordable than similarly sized condominiums.

History of Coops

If the idea of going through a coop baord sounds a little un-American and intrusive, well...........it is. Cooperative living got its start in the 1880's, inspired by Charles Fourier, a French socialist who argued that cooperation bred efficiency. A French immigrant to New York named Philip Hubert picked up on the idea and built arguably the first co-op, the Hubert Home Club, near the current site of Carnegie Hall.

But according to the New York Times, despite their utopian origins, co-ops quikcly turned into a celebration of capitalism and exclusivity. Soaring new Hubert Home Clubs opened on Madison Avenue and next to Central Park, offering the sort of living space that has always made New Yorkers envious, according to the writer Elizabeth Hawes.

Today, co-ops-which sell shares in a corporation that owns the building, rather than individual apartments-- make up the bulk of our housing. As always, the boards have the right to reject any buyer who doesn't quite fit, however they define "fit." Socialism turned into New York style elitism? Yes, indeed.

Advantages and Disadvantages

Basically, cooperative ownership offers the same advantage with a few extras:

1. The tenant-owners elect a Board of Directors, whose responsibility is to meet, interview and "approve" or "disapprove" a prospective owner, thereby protecting the present tenants' interest by approving only qualified candidates.
2. Cooperative ownership offers a more stable community environment. Residents tend to stay for longer periods of time, and few co-ops allow extensive subletting, preferring a high owner-occupancy.
3. A large portion of the monthly maintenance fee paid by each shareholder is tax deductible, i.e., the pro-rata share of the corporation's real estate taxes, as well as the building's underlying mortgage payment.

There are some disadvantages, however, in purchasing and owning a co-op:

1. The board often requires a large cash down payment. Usually prospective purchasers are required to put 25% down. Some co-ops may require more. Many of the most exclusive buildings permit no financing at all.
2. Most co-ops prefer owners to be occupants; therefore subletting an apartment may be difficult. Each co-op board has its own set of rules, but generally speaking, subletting will have to be approved by the board, and permission is usually granted for no more than 2 years. Some co-ops, however, are more flexible and are known as "easy boards".
3. Owners are normally not allowed to use their apartments for professional or business purposes.
4. Almost all renovations to individual apartments will have to be approved by the board.
5. Owners who wish to sell their apartments will have to have the new buyer approved by the board through the application process.
6. Often co-cops impose a tax on selling called a "flip tax" to compensate the co-op for the inconvenience of someone new moving in. The monies go to the co-cop treasury and often help keep monthly maintenance down.

Despite the disadvantages, cooperative ownership remains a very popular option for residential ownership in Manhattan.

Condominiums

Owning a condominium in Manhattan is the same as owning one anywhere else. It is a fee simple ownership and the buyer receives a deed in a formal title transfer. Monthly payments to the condominium are called "common charges", and they are used strictly for maintenance and upkeep of the jointly owned areas. Of course, the amount of interest on the owner's personal mortgage is fully tax-deductible. Real Estate taxes are paid directly to the city.

Fee simple ownership gives owners the right to rent their own apartment, a place for some people. Mortgage amounts can be as high as 90% of the sales price if the buyer qualifies. Often there is not a formal application process, so the time from contract signing to closing is usually shorter.

Review of Cooperatives (Co-ops)

• The cooperative corporation owns the building and the tenant (unit owner) owns shares of stock (assigned according to size and type of apartment).
• Co-ops are governed by a board of directors (resident shareholders) that determines the requirements for applicants.
• The co-op application process is quite lengthy and may require flexibility in terms of occupancy date.
• Renting in a co-op building is referred to as subleasing. Prospective subleasors are subject to the same application process as someone wishing to become a shareholder.
• Applicants must provide financial and social information to the Board of Directors and will also be required to attend a personal interview.
• The Board of Directors may accept or reject applications without furnishing a reason.
• There are both modern and older co-op buildings, however, most prewar buildings are co-ops.
• Cooperative ownership also involves a monthly maintenance fee (for building upkeep), preservation of common areas, staff salaries, etc.) that is based upon the number of shares assigned to a particular owner. The monthly maintenance charge also encompasses an owner's share of building real estate taxes. This portion of the maintenance is tax deductible.

Review of Condominiums

• Condominiums are considered real property.
• Some condominiums require a purchaser to submit detailed financial and social information. A personal interview is usually not required.
• The condominium application process can be quite lengthy and may require flexibility in terms of occupancy date.
• Condominium buildings account for approximately 20% of the total ownership buildings in Manhattan.
• Use of on-site health club and pool is sometime included in the monthly common charges.
• Condominium ownership also involves a monthly fee called Common Charges (for building upkeep, preservation of common areas, staff salaries, etc.) that is based upon the square footage of a particular owner's apartment. Real estate taxes are excluded from the common charges and are paid to the City separately. Real estate taxes, are, however, tax deductible.

To receive new coop and condo listings by email click here.

Manhattan Relocation Package:

• Manhattan, New York City Relocation Guide
• Manhattan Relocation: Helpful Tips, Links and Contact Information
• Relocation Guide: Time Line For Purchasing A Manhattan Home
• Relocation Guide: Understanding (and loving) Manhattan
• New York Apartment terminology A-Z: A Consumer Guide
• NYC Room Count: A Consumer Buyers Guide
• New York City Building Terminology
• Co-ops vs. Condos: Understanding Manhattan Housing
• THE CO-OP BOARD INTERVIEW: Tips to help pass a coop board interview
• Manhattan Closing Costs for Coops and Condos

Neighborhood Relocation Guides:

• Harlem
• Morningside Heights
• Upper West Side
• Clinton/Hells Kitchen
• Chelsea
• Greenwich Village
• SoHo
• Tribeca
• Battery Park City

Courtesy of:

• Mitchell J Hall, Associate Broker, The Corcoran Group

©Mitchell Hall 2006-2009