The Top 7 Reasons Why It Hasn't Sold
First-Time Homebuyer Credits
Going Green And Saving Green
Mortgage Matters
The State Of The Market
Wednesday, March 31, 2010
NYC Real Notes | March 2010
The Top 7 Reasons Why It Hasn't Sold
First-Time Homebuyer Credits
Going Green And Saving Green
Mortgage Matters
The State Of The Market
The State Of The Market
Inventory of studio, 2 and 3 bedrooms dropped slightly, while the number of available one bedrooms decreased from February’s levels by 1,199, or 22.4%. 204 of these one bedrooms closed during this period, while 577 were taken off the market and 382 contracts were signed. The number of OTMs reflects both continued over-optimism on the part of these owners as well as some of the sluggish sales of the 2 and 3 bedrooms they would like to trade up for.
The snowy winter weather that typically discourages buyers has passed, and the warmer days should see increased studio and one bedroom traffic. Activity in areas further from subways typically improves significantly in the March-August periods.
Thursday, March 25, 2010
Going Green and Saving Green
by Leslie Sikora & Debby Klein, Bellmarc Realty
There seem to be more planters and planted areas in front of buildings of all kinds all over town, and as spring approaches, we will be able to see more and more evidence of the greening of New York City. These are the obvious signs, as some of the 50,000 or so acres of undeveloped open space in the city becomes another flower bed or community garden.
So, aside from making everything look pretty, what other benefits will arise from planting gardens, retrofitting insulation and building ever more green buildings? More plantings bring more oxygen into the air: cleaner air, healthier people – there is great savings potential there. Along with mitigating climate change, all of these efforts will save money over time, far beyond their initial costs: by increasing the amount of planted space in Manhattan, we reduce storm water runoff to the sewers, and the filtering action of soil in a healthy environment cleans the water as it travels through. Better natural water filtration takes a part of the burden off water treatment facilities.
The greening of buildings means more than environmental bling – the expensive solutions like wind turbines, solar panels and roof gardens. It also means updating HVAC systems, more and better insulation, and feedback metering to help save energy. In some rental buildings, just the replacement of lighting fixtures in hallways, the use of compact fluorescent bulbs, replacement of outdated kitchen appliances and updating heating systems has brought about significant energy savings. Buildings that take every possible measure to retrofit and find efficiencies can expect energy savings up to 20%.
Architects and developers are beginning to work together and more buildings are being planned and built to conform to LEED (Leadership in Energy and Environmental Design) standards. Architects working on these buildings have been able to show developers that building to these standards is no more costly than conventional construction, and indeed, such types of construction are ever more in demand. In the New York Times Real Estate Advanced Search, there is now a checkbox for “Green Building”!
There seem to be more planters and planted areas in front of buildings of all kinds all over town, and as spring approaches, we will be able to see more and more evidence of the greening of New York City. These are the obvious signs, as some of the 50,000 or so acres of undeveloped open space in the city becomes another flower bed or community garden.
So, aside from making everything look pretty, what other benefits will arise from planting gardens, retrofitting insulation and building ever more green buildings? More plantings bring more oxygen into the air: cleaner air, healthier people – there is great savings potential there. Along with mitigating climate change, all of these efforts will save money over time, far beyond their initial costs: by increasing the amount of planted space in Manhattan, we reduce storm water runoff to the sewers, and the filtering action of soil in a healthy environment cleans the water as it travels through. Better natural water filtration takes a part of the burden off water treatment facilities.
The greening of buildings means more than environmental bling – the expensive solutions like wind turbines, solar panels and roof gardens. It also means updating HVAC systems, more and better insulation, and feedback metering to help save energy. In some rental buildings, just the replacement of lighting fixtures in hallways, the use of compact fluorescent bulbs, replacement of outdated kitchen appliances and updating heating systems has brought about significant energy savings. Buildings that take every possible measure to retrofit and find efficiencies can expect energy savings up to 20%.
Architects and developers are beginning to work together and more buildings are being planned and built to conform to LEED (Leadership in Energy and Environmental Design) standards. Architects working on these buildings have been able to show developers that building to these standards is no more costly than conventional construction, and indeed, such types of construction are ever more in demand. In the New York Times Real Estate Advanced Search, there is now a checkbox for “Green Building”!
First Time Home Buyer Credits and Other Valuable Incentives
Today is a great time to purchase a home. Home prices are at a record low and housing stock are at an all time high. What is even more exciting for purchasers and particularly first time home buyers are the various incentives that can be taken advantage of. The Federal Government’s $8,000 first time home buyer tax credit has been extended until April 30, 2010. A first time home buyer has until April 30, 2010 to go into contract to purchase a property. The purchase must be completed no later than June 30, 2010 in order to take advantage of the tax credit. Home buyers still have two months to find a home to fall in love with and be eligible to receive the Federal tax credit. Congress is even giving current homeowners who have lived in their primary residences for the last five years a tax credit of up to $6,500 when they purchase a new home. The tax credits are available to individuals whose annual incomes are $125,000 or less and for married couples of incomes of $225,000 or less. Another benefit of the tax credit is that the credit can be claimed on a purchaser’s 2009 income tax return. The tax credit does not apply to a purchase of a property in excess of $800,000.00.
First time homeowners can also take advantage of various grant and forgivable loan programs currently being offered by non-profit organizations as well as by some national lenders. First time home buyers may take advantage of the various non-profit organizations dedicated to providing first time home buyers with education, financial counseling and access to various grants and forgivable loans. Pratt Area Community Council, Neighborhood Housing Services, and Neighbors Helping Neighbors, which have offices throughout the five boroughs, are just a few of the many non-for profit organizations that can be a treasure trove of information for first time home buyers. What is so great about these organizations is that the information, counseling, and financial programs offered are free. That is right. Free, there is no cost to the first time home buyer for participating in any of these excellent programs. Beside the programs being free, these various non-profit organizations offer first time home buyers access to down payment assistance, closing cost assistance and even home buyer grants of up to $25,000. For example, Neighborhood Housing Services offers a grant of up to $25,000 which can be used to purchase either a residential home, condominium or even a cooperative unit. That can add up to large savings to the first time purchaser. In addition, national lenders such as Bank of America, Chase and CitiMortgage will work in conjunction with the non-profit organizations and also provide their own grants of varying amounts.
Although we are in a bad economy, there is no better time to purchase a home. Home buyers who take advantage of the various monetary grants, forgivable loans and the federal tax credit can realize enormous savings.
Ryan J. Walsh, Esq.
rjwesq@gmail.com
The Top 7 Reasons Why An Apartment Hasn't Sold
by Richard Grunebaum & Mark Neuwirth, Bellmarc Realty
The most frequent status in our listing database today is not “Not Available” or “In Contract” but, unfortunately, “Off The Market.” OTM apartments those whose owners who have decided not to sell for a variety of reasons. Why haven't these apartments sold? Bear in mind these are only the top 7 missteps, others lurk.
1) The asking price was incorrect. The majority of the time this means that the seller's price was too high. Usually buyers were intimidated from looking and bidding on the property. Most buyers don't believe sellers will negotiate to close a perceived huge gap between the ask price and what they believe is the correct market value. The article “The Top 6 Reasons To Price It Right” in our December 2009 issue outlines more of these issues.
2) The apartment was poorly photographed. The next time you're looking at listings on the web notice how many of the pictures are dark, blurry or unappealing. Only the savviest buyers will take the time to look beyond bad photos and visit an apartment.
3) The ad copy was inaccurate or unappealing. We recently saw an ad for a 500-square-foot studio that claimed the apartment was 800-square-feet. Buyers today understand the difference and move on. And ad copy that references a superior view needs to be paired with compelling photos of that view.
4) Buyers are impressionable people and react to a neat and clean space differently than to a cluttered or untidy apartment. Preparation or “staging” is an invaluable tool that impacts how an apartment looks in photos, but more important, how it shows in person.
5) The time of year. Real estate in New York City is a seasonal business. We know that larger apartments generally have less buyer traffic in the summer than the rest of the year. Buildings located further from subways can experience significantly less attention during the winter months until the spring weather makes the walk to them easier.
6) Lack of access. Some apartments are much harder to show than others. The reasons can include busy owner schedules, renters subletting during the sale or a listing agent who is too busy to show.
7) As we've mentioned before, getting a mortgage is significantly more difficult today than in recent years. Problems include appraisals below the contract price and tough bank guidelines for both buildings and borrowers, each of which are subject to almost weekly change.
Selling an apartment in New York City has always presented a unique set of challenges for owners. This has never been more true than it is today.
The most frequent status in our listing database today is not “Not Available” or “In Contract” but, unfortunately, “Off The Market.” OTM apartments those whose owners who have decided not to sell for a variety of reasons. Why haven't these apartments sold? Bear in mind these are only the top 7 missteps, others lurk.
1) The asking price was incorrect. The majority of the time this means that the seller's price was too high. Usually buyers were intimidated from looking and bidding on the property. Most buyers don't believe sellers will negotiate to close a perceived huge gap between the ask price and what they believe is the correct market value. The article “The Top 6 Reasons To Price It Right” in our December 2009 issue outlines more of these issues.
2) The apartment was poorly photographed. The next time you're looking at listings on the web notice how many of the pictures are dark, blurry or unappealing. Only the savviest buyers will take the time to look beyond bad photos and visit an apartment.
3) The ad copy was inaccurate or unappealing. We recently saw an ad for a 500-square-foot studio that claimed the apartment was 800-square-feet. Buyers today understand the difference and move on. And ad copy that references a superior view needs to be paired with compelling photos of that view.
4) Buyers are impressionable people and react to a neat and clean space differently than to a cluttered or untidy apartment. Preparation or “staging” is an invaluable tool that impacts how an apartment looks in photos, but more important, how it shows in person.
5) The time of year. Real estate in New York City is a seasonal business. We know that larger apartments generally have less buyer traffic in the summer than the rest of the year. Buildings located further from subways can experience significantly less attention during the winter months until the spring weather makes the walk to them easier.
6) Lack of access. Some apartments are much harder to show than others. The reasons can include busy owner schedules, renters subletting during the sale or a listing agent who is too busy to show.
7) As we've mentioned before, getting a mortgage is significantly more difficult today than in recent years. Problems include appraisals below the contract price and tough bank guidelines for both buildings and borrowers, each of which are subject to almost weekly change.
Selling an apartment in New York City has always presented a unique set of challenges for owners. This has never been more true than it is today.
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