The key to a successful sale is to eliminate any surprises from the beginning to create a seamless process for you and your broker. Knowledge being power, you want to arm yourself with as much market data and building information as possible. Also, have a clear grip on your personal finances as they relate to the property. Finally, be ready to present your property in the best condition.

Find a Good Broker:

• To start, finding a broker is the most important part of selling your home. You should look for someone you enjoy working collaboratively with on a daily basis. Interview a few brokers and make sure your personalities match. Your broker should also have a clear grip on the state of the market and be able to give you basic information about your building in the first meeting. From there, your relationship should flourish into a successful transaction.

Market Research:

• Know what has sold in your building over the last few years.
• Review the comparable market analysis with your broker so you are educated about value.
• Determine the best time of year to bring your property to market with your broker. You want to be competitive and maximize your exposure.

Building Financials:

• Flip Tax: Find out if your building has one and who pays it.
• Mortgage: Know the amount of the mortgage on the building and its terms.
• Reserve Fund: Know what is in the building reserve fund as it relates to cash on hand.
• Special Assessments: Ask if there are any special assessments planned.
• Approved Lenders: Find out the banks that have approved the building for lending. This is very helpful for perspective purchasers.

Structural- Building and Apartment:

• Construction: Know if there is any planned in the near future before or after you sell.
• Local Law 11: The law requires structures over 6 stories be professionally inspected every 5 years to make sure the façade is secure. Inquire if the building is compliant.
• Structural: Ask when the roof and mechanicals were last replaced or updated.
• Renovations: Be aware of any renovations that may hinder a potential purchaser from renovating the apartment.
• Legal: Tell your broker if there are lawsuits or bed bug issues and how they are being dealt with.
• Equipment: Make sure all your appliances including windows, plumbing, and electrical are in working order.
• Leaks: Be prepared to discuss any leaks that may have occurred because the buyer’s attorney will ask it to be disclosed in a rider.

Board Package:

• Managing Agent: Make sure the managing agent knows that you are selling your property to be in compliance with any building rules on marketing, etc.
• Transfer Cost: Confirm the amounts of associated transfer cost and who pays them.
• Financials: Get the last two years financials and offering plan as the broker will need to give them to the buyer. Alteration Agreement: Get a copy of the alteration agreement from the managing agent for the buyer to review in case they plan to do a renovation.

Seller’s Closing Cost:

• Broker Commission: 6% of purchase price
• NYC Real Property Transfer Tax: 1% of purchase price if $500,000 or less 1.425% of purchase price if over $500,000
• NYS Transfer Tax: 0.4% of purchase price
• Attorney: If you do not have an attorney, ask your broker for a list of at least three NYC Real Estate attorneys. They will discuss fees with you.
• Move Out Deposits: These vary per building but there is normally a non-refundable and a refundable fee. NYS Capital Gains Tax Withholding: The tax for out of state sellers is 7.7% of gain.

Personal Finance*:

• Loan Balance: Get the amounts of your loan payoffs and who you are writing the check to.
• Capital Gains Taxes: For a single individual there is no tax on gains up to $250k and a married couple is $500k in gains. Speak with your accountant for a more in-depth explanation.

*Discuss with your broker and banker if you need to sell in order to buy. That may mean you will need a bridge loan, a holdover agreement, or a lease back.

Relocation:

• If you are relocating find out what expenses are covered by your company versus those that are personal. Since the agreement can be very complicated, find out how your broker and closing costs are paid.

ie: The relocation company may step into the role of the seller and assume the sale and its fees after a buyer is found.

Preparing to List:

• Minimize: The easiest way to prepare your property for sale is to pack up and store clutter, clean out closets and cabinets and minimize the amount of furniture in each room. It will help to define the space and make it feel larger. Organize: Once you have minimized, you should organize all the remaining furniture and accessories to give the property a lived in feel but make it look like a show piece.
• Glamorize: Finally, a fresh coat of paint or newly buffed floors can make a world of difference when it comes to presentation. Everything should look clean and updated.
• Staging: When your budget allows, hiring a professional stager can drastically increase your chance of selling quickly and at the highest and best price. We are visual creatures and pretty always wins!

Note: The consumer today is very educated. They have been in the market for some time looking for a property and most are ready to buy. Because of low inventory, multiple bid scenarios are happening on many properties. This does not mean a property is underpriced – it means it is priced well and the educated consumer is ready to move when they see what they want at the right price.

Happy Selling!

Jarrod Guy Randolph

Image Courtesy of Ross MacDonald for the New York Times

This past weekend The New York Times recently ran a piece on how the “shortage of New York City apartments for sale is forcing real estate agents to take extreme, if not desperate, measures in order to conjure up listings.” Even in the challenging market, CORE brokers are leading the competition by employing inventive techniques to bring properties to market and make sales.  Jarrod Randolph talks about the importance of relationship building and gives an example of opening communication with the doorman. In addition to that specific instance Randolph adds, “the key to getting inside deals done is being persistent.  You have to commit to building a relationship with the person that is your “in” or the seller themselves.  It takes a lot of trust to want to help someone out or give them an opportunity that isn’t afforded to others.”

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A sampling of last week’s press coverage of CORE and CORE properties.

Dream Homes
New York Post

A 6-bedroom, 6.5-bathroom combination unit at One Museum Mile was featured for its “sweeping Central Park vistas.” In addition to its breathtaking views, the full-service building offers a rooftop pool, children’s playroom, game room and several other amenities….

Dear Owner: Please Sell
The New York Times

CORE’s Jarrod Guy Randolph and Michael Rubin are interviewed on the creative tactics brokers are using to secure exclusive listings. With inventory at a new low, they discuss their strategies for “sealing the deal” with sellers.

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A Method to the Madness: How to make a quick and informed decision when you find the RIGHT apartment.

The New York real estate market is improving rapidly as a result of low inventory, high demand and the availability of attractive financing terms.  These factors have given steam to the market and have resulted in increasing values. This low inventory is creating some “madness” in the market.  Only 8,529 units were on the market as of Dec 2012, or 18.2% less than the same time last year according to Streeteasy.com. Michael Vargas at Vanderbilt Appraisal asserts that is only 5 months of property supply.  These statistics are creating more and more bidding wars, a far different situation than the same market just one year ago.

As a buyer you must be prepared to move quickly. My last blog entry, “The Ultimate Checklist for Buyers,” was designed to help you decide what apartment will work best for you. Here we will discuss how to quickly and assuredly pursue the right apartment once it has been identified.

In this market sellers are in the driver’s seat. They will only deal with buyers who are well prepared and well qualified. To win the race you must make an offer quickly and in as strong a manner as possible:

-Don’t be afraid to make a same day offer.

-State that you do not wish to be in a bidding war.

-An excellent way to stand out is to offer slightly above ask if your broker can justify the offer.

-Be transparent when making the offer.

-Have your broker give your financial breakdown with the offer.

-Prepare a short bio on you and your family.

-Be clear about your timeline and all conditions.

-Offer a quick closing.

To make the process less daunting, it is helpful to keep the following three things in mind:

1) Do your research so you know the values in the area. A good buyer’s broker will help you with this.

2) Make sure your financing is in place, with mortgage pre-approval and REBNY financial firm completed. It is important to demonstrate to the seller that you are financially stable.

3) Retain an attorney with New York City residential contract experience.  A good attorney will facilitate a smooth transaction so you don’t lose out to a backup bidder.

Note: do not expect much negotiating on properties in this market. By doing your research and knowing your needs, you and your broker will be able to justify value.

Happy buying,

JGR

A sampling of last week’s press coverage of CORE and CORE properties.

Houses of the Week
New York Post

Ryan Fitzpatrick’s stunning Chelsea listing on West 29^th Street is featured in the weekly slide show.

Getting the Inside Scoop with CORE’s Vickey Barron
Modern NYC

Vickey shares her keen insights on everything from modern design being used as a creative selling tool to new trends in the market. She also opens up about building long-lasting and successful relationships with clients.

Done Deals: 303 West 77^th Street
Broker’s Weekly

Jarrod Randolph’s recent sale at the Upper East Side’s Isis Building was highlighted. His unique and targeted approach to marketing the property resulted in a quick and notable sale.  Jarrod shared his strategy for getting the right buyers into the space, “I hosted a whiskey tasting event to target buyers and showcase how well suited the space is for entertaining and allowed guests to enjoy the outdoor spaces.”

To achieve a successful purchase, as a buyer you must first have a base knowledge of the marketplace. From there, you should find a broker to help you navigate and negotiate that successful purchase. Your broker should be able to garner information, disseminate data and provide an informed platform for you to make a decision.

However, though it is extremely important to work with a strong buyer’s broker you must also be aware of the right questions to ask to determine if a property is right for you. Questions can range from how the apartment lays out to the economics of the building- all of which should be on your “checklist” of items needed for a successful purchase.

Take a look at the standard questions and items you as a buyer should know in order to determine that the “right” property is truly the “RIGHT” property for you:

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A sampling of last week’s press coverage of CORE and CORE properties.

What Kind of Fireplace Do You Get for $8.5 Million?
New York Magazine

With temperatures diving below freezing, New York Magazine took a moment to roundup some of the best fireplaces currently on the market in NYC. Emily and Elizabeth Beare’s Upper East Side townhouse exclusive at 407 East 75th Street made the cut for its modern, minimalistic fireplace.

Just Sold!
New York Post

Jarrod Guy Randolph’s recent penthouse sale at the Upper East Side’s Isis condominium was featured. Although the penthouse sold in what seems like no time at all, Jarrod completely changed the space by fully staging it in September. Check out his full, “before and after” staging post here. (more…)

In my previous post, I went into detail on the basics of new development in New York City. With the basic information provided, here are some suggestions on how to put that information and knowledge to good use.

When to buy
There are two types of buyers in new development: investors and end users. If you are an investor, the best thing for you to do is work with a highly specialized broker who can get you in on the ground floor of a new development. For end users, any time is a good time to buy as you should look at the purchase from a long term perspective. In fact, the most important aspect for an end user is quality of life, so picking the right unit is much more important. Again, you need to be guided by an expert as you are typically buying off of floorplans and may not physically see the property before committing to it. (more…)

A sampling of last week’s press coverage of CORE and CORE properties.

“Checking in on Rising 241 Fifth Avenue Condo Building”

Curbed

CORE’s new development, 241 Fifth Avenue, grabbed attention as construction resumed.

“Planet Dearth: Manhattan Condos Are More Hard to Come By Than Ever As Inventory Hits All-Time Low”

New York Daily News

The number of condos for sale in Manhattan is at an all-time low making this a prime time for sellers. Jarrod Randolph comments on the state of the market and his recent penthouse sale at the Isis Building.

Residential development is playing a critical role in the changing architectural landscape of New York City. From Philip Starck’s 15 Broad Street to the Time Warner Center and the newest edition of Hudson Yards, neighborhoods are changing because of each new development. Beyond being known as eye candy or game changers, these projects are proving to be New York City most lucrative investments.

Due to limited quantities, new residential developments appreciate disproportionately higher when compared to the rest of the market. Prices appreciate for several reasons in new development: new infrastructure, no barriers of entry, flight to quality, high design aesthetic, building economics and inventory. I’d like to take a moment to scratch the surface and point out these factors that impact the market, value and your bottom line.

New Infrastructure
It’s shiny and new. The largest majority of consumers love that.

No Barriers to Entry
When buying in a new development, there is no board process. You sign a contract, submit a check, and pay the balance at closing with your associated closings cost. That’s it.

Flight to Quality
Flight to quality has been influenced by the consumers, but mainly by the financiers. Underwriting standards have changed and you have to underwrite at higher numbers than ever before. Sometimes, $2,000-plus on the base price-per-square-foot. This has forced developers to build better product in order to create equal profit margins to past developments. In essence, you can only charge more if the quality is better. The better the product, the more it retains its value and tends to appreciate higher.

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