Morgan Evans-New York City Real Estate Expert

I receive daily and weekly updates from a number of the major rental management companies here in New York City.  These lists keep me upto date on the new inventory, pricing, and the incentives that are running.  Today I saw something that really grabbed my attention.  Stonehenge Partners is offering a way to break your lease if you lose your job.  According to the company, "Stonehenge recognizes the need to accommodate your clients in these uncertain times.  We are offering your clients the ability to cancel their new lease with 60 days notice in the event they lose their jobs.  Very strict terms and conditions apply.  Stonehenge reserves the right to determine who qualifies for this new program."

I am under the assumption, that as long as you meet their strict terms and conditions if you lose your  job you will not be on the hook for the rest of the lease.  In the past these big management companies might not be as flexible when it comes to one individuals problems or unfortunate circumstances.  They would be a little more likely to really hold your feet to the fire to the boiler plate language in the lease agreements.   Stonehenge has been very proactive to provide more service and to think outside of the box to set their properties off from the rest of the available inventory.  There are a lot of options out there and these type of specials and policy changes I think will help them rent their product a little bit faster.

Typically winter time is the slowest time for rentals in New York City.  The amount of apartments where the owner pays the commission or gives 1 or 2 free months rent is increasing.  Renters definitely have room to negotiate.  There is sort of a domino effect as far as the incentives.  The first to give the incentives are the management companies.  As their incentives get more and more aggressive, renters will expect the same incentives when they go to rent an apartment from an individual owner from a condo or co-op.  In our own business, this is very hard to explain to a seller that they now have to pay the fee.  This is the new normal.

To find out more information about renting in New York City with renter incentives, please contact me, 917 837 8869.

For more information, please contact Morgan Evans or call 917-837-8869

Disclaimer: All information in this post is subject to change without notice. Subject matter: is an opinion, is not guaranteed, may be time sensitive, and may be based on information collected from several sources which may or may not be reliable at the time of sourcing.

When we go to Costco we go with the understanding that we are going to be buying a product in a really large quantity, but we are going to be getting a great discount for doing so. Thats why we shop there. I personally love the hot dogs and coke for $1.50, but thats just my own personal thoughts. Well now here in New York City you can buy Condos Costco Style!!

According to a recent article,

Last month, the sponsors of 20 Pine, a 413-unit condo conversion in the Financial District, put 80 of the building's unsold units on the market for $63.7 million, according to the Web site Curbed.

The bulk price for the units, according to an advertisement reprinted on Curbed, represented only 51.5 percent of their current value of $124 million.
Meanwhile, 22 units in a 40-unit condo in Williamsburg also hit the market last month.

The sales pitch for the units at 349 Metropolitan Avenue included the following description: "Newly built 40-unit elevator building was developed as a luxury condominium and is being offered as a bulk sale for investors. Eighteen units are currently under contract at an average price per square foot of $720 and the developer can't close because the building is not finished. The developer is currently in default on his primary debt. Prospective purchasers can bid on the entire project and/or on the available units."

The above examples aren't the only ones. Faced with a stagnant market and looming loans, more and more developers are finding the notion of bulk condo sales attractive.

"When you can't sell retail, you sell wholesale," said Eric Anton, a principal at the investment services firm Eastern Consolidated

From a lender's standpoint, bulk sales can be a "pragmatic" move, said Dan Fasulo, managing director of Real Capital Analytics, a research firm that focuses on the commercial market.

"The last thing a lender wants is to have the units back at this point," said Fasulo, who noted that attempts at bulk sales are beginning to be more commonplace. "How's the bank going to sell them?"

The last couple of years, I would say that the overall trend for these new development buildings has been over the top luxury exclusivity, super-lux, mega-lux, fancy words that are hard to pronounce. Bargain, value, those adjectives were unheard of, so I find it very ironic that now these high end condos are being compared to a value based store like Costco.

For more information, please contact Morgan Evans or call 917-837-8869

Disclaimer: All information in this post is subject to change without notice. Subject matter: is an opinion, is not guaranteed, may be time sensitive, and may be based on information collected from several sources which may or may not be reliable at the time of sourcing.

Dorchester Towers Condominium Report

2008 Real Estate Year in Review

• In 2008 12 properties sold at Dorchester Towers at 155 W 68th St New York, New York 10023..
• The building has approximately 680 apartments which half are owned by individuals.
• The turnover rate was approximately 3.5% last year.
• For a comparison of years past, in 2007 ~ 12 properties sold and in 2006 ~ 15 properties sold. On average the typical turnover rate for any given building is approximately 7-9%.

As we all know the Dorchester Towers Condominium have a number of different layouts for each type of bedroom. Each layout offers its unique exposure,

• Alcove Studios - 2 Units Sold ~ Average Price/ Square Foot: $ 956.50

• One Bedroom - 6 Units Sold ~ Average Price/ Square Foot: $ 1,069

• One Bedroom w/ dining alcove(Junior 4) - 4 Units Sold ~ – Average Price / Square Foot: $ 947

*No 2 bedroom's sold in 2008*

Compared to The Upper West Side Condominium w/doorman in 2008:

• Alcove Studios - Average Price of $677,000 ~ Price/ Square Foot: $ 1,157

• One Bedroom - Average Price of $922,000 ~ Price/ Square Foot: $ 1,158

• One Bedroom w/ dining alcove(Junior 4) - Average Price of $1,010,561 ~ Price/ Square Foot: $ 1,228

• Two Bedrooms - Average Price of $1,685,000 ~ Price/ Square Foot: $ 1,367

Market Report

As we all know the real estate sales market has shown a significant decline over the last quarter of 2008. According to the 4th Quarter Market Report from Douglas Elliman, September brought significant change to the Manhattan Housing market. At the close of the prior quarter, there was significant turmoil in the financial markets and unprecedented intervention by federal government agencies. Sales contract activity showed evidence of a decline in activity of 40% to 75% compared to the same period last year. Contract price levels showed an average decline of 20%.

In the month of December based on Contracts Signed

• The average sales price was $984,903.
• The median price was $650,000.
• The percent discount from last asking price was 9%
• The percent discount from original asking price was 16%
• The percent discount from original ask price to last ask price was 8%
• 26% of all sales were below $ 500,000
• 47% of all sales were between $500,000 and $1,000,000.
• 73% Sold below 1 million
  
• 17% between $1,000,000 and $2,000,000.
• 4% between $2,000,000 and $3,000,000
• 5% between $3,000,000 and $5,000,000
• 1% above $5,000,000

Our Analysis:

This is a market where information is king. If you are a buyer looking for the best price possible, closed sales data is stale. You need up to date information, properties that go in contract in the last 30 days. As experts in this neighborhood we have this information.

This report is the only up to the minute monthly report fot the Dorchester Tower Condonominium at 155 W 68th St, New York, NY 10023. How are we able to have such up to date information?? We live in the building!! As residents of the Dorchester Towers we understand what makes our building unique. As resident experts we understand the dtails of the building, the doorman, the management. We know there are more layouts that you can keep track of and that no two apartments are the same.

We are in a competitive market, hence working with two agents that live in the building and that specialize in condominium sales will you give you an advantage when it comes time to sell or rent your apartment. Our approach to selling your apartment is intentionally unique. We use strategies that most real estate agents do not use. If you are interested in hearing our proposition, contact us immediately to see how we can help you achieve your goals.

For more information, please contact Morgan Evans or call 917-837-8869

For a link to Dorchester Towers Rental Report Click Here

Disclaimer: All information in this post is subject to change without notice. Subject matter: is an opinion, is not guaranteed, may be time sensitive, and may be based on information collected from several sources which may or may not be reliable at the time of sourcing.

New York City First Time Buyer and Investor

PART 5- BUYING WITH YOUR HEAD AND YOUR HEART!

Buying your 1st or your 10th New York City apartment will probably be the biggest purchase of your life. In today's market it's more important now than ever to understand what your long term goals for purchasing. Are you sick of paying rent to a landlord and purchasing your first starter studio or 1 bedroom? Maybe you have outgrown your current apartment and need that second or third bedroom? An investor looking for a long term investment and tax benefit? Or an overseas buyer looking for a second home here in Manhattan. Whatever the reason might be, the key to a successful purchase and ultimately long term success is to become educated about purchasing and to find an apartment that you can see yourself owning for the long term.

Steps to a Successful Purchase

1. Understand Why You are Purchasing - Are you looking for an apartment that you can lease once your purchase? Well than a co-op might not work for you and a condominium would be your best option. Are you renting right now and want to find out if it makes sense to buy and stop putting money in your landlords pocket? A rent vs. purchase analysis might show that it makes more sense for you to rent, but the qualitative benefits of owning your own apartment could also affect your decision. How long do you plan on being in the apartment? One year or indefinitely? Right now in this market, you should plan on owning for a minimum of 5 years to see a significant amount of appreciation. The key is to think about what your long term goals are for purchasing because that should dictate what type of property is right for you and how you should go about your search for your next home.
2. How Much Can you Afford- Speaking with a mortgage broker or the bank of your choosing and having an in depth discussion of how much you can afford will have tremendous impact on your purchase. Because lending isn't what it was a year or even 6 months ago, guidelines changing, conforming loan rates changing, having an up to date understanding of where you stand obtaining a mortgage is essential to a successful purchase.
3. Becoming Market Educated- Currently Manhattan is a changing market. How much is an apartment worth today? One market report says that median prices went up a few percent, but another report says that the transactions are down 70%. Who to believe and what does it mean to you? Looking at the city as a whole will give you a macro-perspective, but the key in my opinion is to follow the price point and neighborhoods that you are going to purchase in. A one bedroom condominium in the West Village and a Classic 6 in a Park Avenue co-op are not apple to apple comparisons, so reading a report that says prices are down 20% citywide, may not be indicative of the type of property you are looking for. The way I see things is that right now, an apartment is worth the price a buyer is willing to pay and whatever the seller is willing to accept. I find market reports extremely useful, but the key is to break them down for the micro-search that you are doing.
4. Go with your Gut Instinct- Most of my customers know the apartment they will buy when they step their foot in the door. Ask yourself the question, do you love the apartment, can you see yourself living there? The perfect apartment doesn't exist, because it is usually out of our price range, but first impressions are very important. Once you have educated yourself and understand the variables of your purchase you will be ready when you see the right apartment.

New York City First Time Home Buyer Series:

• NEW YORK CITY FIRST TIME HOME BUYER: KNOW YOUR PRODUCT - PART 1 OF 5

• NEW YORK CITY FIRST TIME HOME BUYER: KNOW YOUR BUYING POWER - PART 2 OF 5

• NEW YORK CITY FIRST TIME HOME BUYER: KNOW THE FINANCIAL REPORT OF THE BUILDING - PART 3 OF 5

• NEW YORK CITY FIRST TIME HOME BUYER: WHO MANAGES THE BUILDING - PART 4 OF 5

• NEW YORK CITY FIRST TIME HOME BUYER: BUYING WITH YOUR HEAD AND YOUR HEART - PART 5 OF 5

For more information, please contact Morgan Evans or call 917-837-8869

Disclaimer: All information in this post is subject to change without notice. Subject matter: is an opinion, is not guaranteed, may be time sensitive, and may be based on information collected from several sources which may or may not be reliable at the time of sourcing.

Part 4- WHO MANAGES THE BUILDING?

One of the most common questions we receive is who manages the building? What kind of track record do they have? What happens if my sink backs up, dry cleaning is delivered, do they return phone calls quickly? As a part of being a first time home owner in a co-op or condominium building in New York City you will be a part of your experience will be influenced by the management company that runs your building. Typically the size of your building will dictate the type of management company that runs it.

Doing research about the management company, ask your broker about their experiences with the company's reputation, and if you know people who have lived in a building managed by a particular company will be extremely useful information.

There are certain management companies that specialize in running large buildings with hundreds of units. These companies have the experience, infrastrcuture, and are specifically positioned to run buildings with dozens of support staff, maintenance workers, and resident requests. The big management companies typically manage multiple buildings and they have websites where they can be researched. Run a google search on them to see what the residents are saying, how quickly do they resolve issues? Keep in mind its always the disgruntled person who speaks the loudest!

In our experience, big management definitely has its pros and cons, as both a resident and as a real estate agent. Big management firms have the resources, training, and experience to solve almost any issue that comes up. Although in our working experience, big management can take a few days to find the right person to answer a question or concern. There are also times big property management is more reliable in terms of having all of the documents I might need to obtain information for financing or to submit an application.

If it is a smaller management company that runs the building find out if the super lives in the building? The super will be your knight in shining armor when you have any issues, definitely make sure you get to know them. Small management in our working experiences, have always been very organized and prompt in answering phone calls. Although the management may only manage one building or two, they are usually very sufficient and friendly to the residents of the building.

You will sometimes find that the building is self-managed, if this is the case, make sure you do your due diligence and find out how the mangement is structured and who is responsible for your requests.

Each experience is will be different, whether you live in a 500 unit building or a 20 unit building, everybody wants prompt and friendly service. You can get it in many ways from a helpful super to a large management company with staff at your disposal. If you have a question regarding a specific building feel free to contact us below and we will answer all of your questions.

For more information, please contact Morgan Evans or call 917-...

This is part four in a series centered on first time buyers in New York City, our next post will focus on the next step in your process, BUYING WITH YOUR HEAD AND YOUR HEART!

New York City First Time Home Buyer Series:

• NEW YORK CITY FIRST TIME HOME BUYER: KNOW YOUR PRODUCT - PART 1 OF 5

• NEW YORK CITY FIRST TIME HOME BUYER: KNOW YOUR BUYING POWER - PART 2 OF 5

• NEW YORK CITY FIRST TIME HOME BUYER: KNOW THE FINANCIAL REPORT OF THE BUILDING - PART 3 OF 5

• NEW YORK CITY FIRST TIME HOME BUYER: WHO MANAGES THE BUILDING - PART 4 OF 5

• NEW YORK CITY FIRST TIME HOME BUYER: BUYING WITH YOUR HEAD AND YOUR HEART - PART 5 OF 5
  
  Disclaimer: All information in this post is subject to change without notice. Subject matter: is an opinion, is not guaranteed, may be time sensitive, and may be based on information collected from several sources which may or may not be reliable at the time of sourcing.