Monthly Archives: August 2013

“Roll Her Old Bones Down Here!”

-Ed Rooney from Ferris Bueller's Day Off

Ed Rooney- Ferris Bueller’s Day Off

Sutton Place is akin to being sucked through a worm-hole and spat out in the middle of the Guilded age. You half expect to catch a glimpse of Anne Marie Vanderbilt’s ghost promenading down Sutton Place South arm in arm with a Kissinger. It reeks of old money and it’s antediluvian residents intend on keeping it that way. The co-op boards are archaic in their selectivity and when it comes to financials, don’t even bother going to an open house unless you can show four to six times the price of the apartment in liquid assets.

A few years back a colleague of mine, we’ll call Jeff, was selling one of these Sutton Place palaces to an affluent doctor from Boca Raton, who was purchasing the apartment for his newly engaged daughter and her husband-to-be. After lengthy negotiations contracts were signed and the painstaking process of assembling the complicated board packages begun. After many weeks they were finalized and submitted to the building’s management company for review. A few days later Jeff received the good news that the building’s board requested an interview with the father, daughter and fiancee. As my colleague excitedly explained this to them, the doctors elderly mother fell gravely ill and consequently (and inconveniently) died two weeks later.

Overwhelmed with his deceased mothers affairs and his busy practice in Boca, the doctor explained to Jeff that there was no way he’d be able to fly to NY to meet with the board, and wasn’t it enough that they had all of his personal and financial information?! Furthermore his daughter and future son in-law would be there for the interview and they would be the ones living in the apartment after-all.

When frazzled Jeff explained the mournful situation to the building’s managing agent, Maude, she channeled her inner Ed Rooney and bellowed:“SHOW ME PROOF!” “Surely she’s joking,” Jeff thought. When she assured him that she wasn’t and told him to fax her the death certificate he knew he had a problem. He couldn’t very well ask the grieving doctor to send it. That would surely blow the deal to smithereens. Instead Jeff dismally explained to the doctor that if he couldn’t be part of the board interview, the children would not be able to live in the building.

Fuming from the insensitivity of it all, the doctor demanded that Jeff conference call him in with Maude.  Jeff reluctantly agreed (he really had no choice) and the awkward call was made. When Maude came on the line the doctor pled his case and with zero tact Maude howled:“ROLL HER OLD BONES DOWN HERE!” (in a matter of speaking that is).

Naturally, the good doctor was livid, but this was Sutton Place after-all and his only daughters dream apartment. Out of principal he refused to lug his mothers corpse in, or fax her death certificate to Maude. Instead he agreed to an interview two days before the closing. He, his daughter and future son-law charmed the board and were approved shortly there-after.

When closing day came the atmosphere crackled with animosity.  Jeff, the attorneys, the doctor, daughter, future son in-law and MAUDE(!) sat in a conference room exchanging checks, dirty looks and signing documents. As soon as the keys were handed to the doctor he stood up and unleashed all of his pent-up rage on dowdy old Maude. At one point Jeff thought he might even hit her but in the end he refrained. What could she do but take it and deservedly so.

 

 

 

“Heat wave” Heather from Boston shares why you’ll never look at a Dunkin Donuts iced tea cup the same way again

Dunkin Donuts Iced Tea cup

Dunkin Donuts Iced Tea cup

So it was about 107 Fahrenheit and I had been up since 6:45 am confirming showings for the day. I had 2 inspections and went off for the day, knowing that it was going to be scorcher. I wore as little clothing as possible permitted as a professional. Sleeveless silk shirt, flats, and shorts. I went to the first inspection with a giant water bottle and sipped throughout the inspection, trying to keep hydrated. Dealt with that, no problem for 3 hours.

Felt a little dizzy by 11 am, when inspection had ended, and onto 3 showings until my 1:30 pm inspection. At this point we had to inspect a house, close to a body of water that had some issues with insects and mold. “Ok, no problem”, I thought. As we were all conferring in the kitchen, in this heat wave, with sky lights, baking in the kitchen, no ac, no fan, no nothin’, I got very light headed, realized I was going to faint, or die, or vomit so I decided to excuse myself and go sit in my car with the AC on full blast. “Oh, I’m so sorry” I explained. “I just received an urgent call from another client, I’ll be right back”, so I go and sit in my car, start to feel a little better, and then EVERYONE from the inspection walks out.

The inspector, my clients, the seller, the family of the buyer. They are all talking and walking towards my car, when I realize I’m going to puke. I have two options. Open the door and vomit on the property I’m trying to sell, OR, grab one of the empty Dunkin Donuts plastic iced tea cups from earlier in the day.

I choose the latter, and pretend I’m looking for something on the floor and puke my guts out in the cup. I wipe my face, pop a mint redo my ponytail, and step out of the car, eager to negotiate with the seller…….. And away we go.

 
- Heather, Boston MA

Jeffrey R. from NYC shares his closing horror story…

Cleaner
I’m an NYC associate broker who had one of the looooongest and strangest closings ever, and one I’ll never forget…
 
The morning of the closing arrived so I met the buyers and the sellers agent at the building for the walk through. Although we knew there had been a tenant in place who was supposed to move out weeks ago, my buyers and I were still apprehensive since we wouldn’t know for sure until we saw it with our own eyes. 
 
What did we find behind the door? A fully inhabited apartment – all 1,700 sq ft of it – with big, heavy furniture. Great! The closing was in an hour and a half, and this guy hadn’t moved a thing. He was there and assured us he’d be out soon. I’m starting to sweat but knew I would do whatever it took to get him out so we could close that day. 
 
The sellers agent didn’t seem to care even though this was his problem too. More about him later.
 
As an experienced agent, I did everything in my power to keep my buyers calm. As we left the apartment, I called the buyers attorney so he could inform the sellers attorney in advance that we had a problem.
 
Off to the closing. 
 
It’s now 1pm. The closing begins and it was tense. To make matters worse, the sellers agent decides to check out by putting his feet up on the closing table, crossing his legs, and opens the NY Times full spread. It was hard to believe. My buyers wanted to tear his head off. So did I. We proceeded with the closing knowing that the buyers would need confirmation that the tenant had moved out before signing the very last document. So I called the front desk of the building and asked the doorman if the tenant had moved out. He said no.
 
It’s now 3:30. A ‘normal’ closing would have finished by now. But not this one. 
 
With my buyers growing more and more concerned, I decided to take matters into my own hands so I left the closing to check on the status. 
 
When I got there the moving truck was outside and three movers were in the apt packing and preparing to move out. With so much to be done, I took my suit jacket off, rolled up my sleeves, and w the tenants permission got to work – packing, boxing, moving, and sweeping. Yes, sweeping. 
 
Two and a half hours later (6:30) we were finished. I called my buyers to give them the good news and they were relieved and happy to finally have the keys. They signed the last document and were now the proud new owners of this beautiful $2.5MM home…no thanks to the sellers agent who read the paper throughout the entire closing. Jackass!

 

- Jeffrey R. NYC Associate Broker

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Million Dollar Mimicry

I don’t know how I’m just now coming across this article published August 7th in The Read Deal entitled Million dollar listing would be star speaks out, but I wish that every client who watches this contrived, yet admittedly entertaining show would read it because Million Dollar listing NY is about as authentic as imitation crab meat.  I can’t tell you how many buyers and sellers have major misconceptions about the Manhattan market and how business is conducted due to watching this spurious show. If I have to hear a client say to me one more time: “Oh… I know how it works, I watch Million Dollar Listing!” I might just scream.

Sombrero

Fredrik Eklund of Million Dollar Listing NY

 

 

 

Co-op Vs Condo

My co-op seeking buyers and I ventured out again last Sunday to find a plan “B” and possibly “C” in case the seller of their initial choice doesn’t accept our terms. Surprisingly, she did come back with a counter that my sellers agreed to, but won’t budge when it comes to letting them have a mortgage contingency and so we are at a stand still.

We did in fact find plan “B” and “C” in the same co-op. Now one half of my buyers prefers plan “B”, while the other half still loves the first one (plan “C” is if all else fails). Tonight they will hopefully come to an agreement. In the meantime, I’ve become obnoxiously elusive to the sellers agent who’s impatiently waiting for me to tell him that my buyers will move forward without the contingency. If he weren’t such an arrogant cuss I might feel bad for leaving him hanging but instead I feel quite satisfied. I can only hope that all of the apartments will still be available by the time my buyers make their decision.

What I’ve noticed in this volatile market, where condo-buyers are losing out on their first, second and third choices to all cash buyers and foreign investors, co-op buyers stand a better chance of getting their first choice and having a heck of a lot more options to choose from.

Third TIMEThere are several reasons for this. The first being that NYC is 90% co-op so there is that much more inventory. Secondly co-ops typically allow you to finance anywhere between 0%-75% (condos typically allow 90%). That’s a big chunk to put down for most non-cash buyers. Then they need to show that they have about 2 years in reserves between mortgage and maintenance after closing, also a big nut to have squirreled away. Additionally, co-ops are not as attractive to foreign investors due to their strict subletting policies.

As long as a buyer is financially sound, prepared to furnish a mountain of paperwork for board packages, and most of all, willing to be scrutinized by the buildings board of directors, co-ops might just be the way to go.  It’s a “slow and steady wins the race” type of mentality I suppose.

Stay tuned…

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StreetEasy on Easy Street

Wow.

Zillow buys StreetEasy for $50 MILLION CASH

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PA Realestate agent Girard Hillary shares his story…

A few years back I was representing a client who wished to purchase a waterfront property.
I found an elderly lady (85) who said she was interested in selling her cottage. We
Settled on a price and within days I had my client and the seller meet. The seller reneged …
She was not prepared for a buyer to appear so soon. Ahead two years…
I brought the same seller and buyer together and a closing day was set. I arrived at
The attorneys office with buyer in tow at the appointed time. The seller had already
Arrived. We sat opposite the seller and exchanged amenities and buyer stated how
Excited he was about the cottage. The sellers attorney approached and said we
Would now move to the conference room and take care of the paperwork and exchange of funds.
The seller began to cry and stated she didn’t beiieve she could go thru with the sale!
She was now 87 years old. The buyer nearly fainted! Her attorney 20 years her junior sat down beside her and took her hand in his. He very gently told her now was the time to
“Let It” go. Twenty minutes later the buyer left owning his dream property.

Girard Hillary – Northeast PA

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MLR is now on Facebook!

Misery Loves Real Estate now has a (very amateur looking) Facebook page.  Please click here, LIKE” and share with your friends.

Thanks!

Agent Voice

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Home is Where the Heart is

HomeiswherethehearisLast night I submitted a great offer on behalf of my very eager buyers for a one bedroom co-op off Park Ave. It’s now coming up on 24 hours and we have yet to hear a peep from the listing agent. This is because he is at the mercy of an elusive seller. The seller, by all accounts, is a woman of a certain age who’s lived in this apartment for 20 plus years.

I did not have the pleasure of meeting her but people’s homes speak volumes and I can tell with absolute certainty the following “things” about her just from being in the apartment for 30 minutes:

 

  •  She’s single, undoubtedly divorced (at least twice)
  • Crazy as a March Hare
  • Loves the heck out of patterned wall paper
  • Has a great love of animals (alive or dead). For example paintings, jars and statues of roosters adorn the walls and shelves of her kitchen; life size statues of jungle cats sit vigil at the foot of her sleigh bed, and perhaps most telling of all, the very real zebra pelt spread across her bedroom floor (It felt weird and wrong to walk on).
  • She LOVES this apartment.

 

The last point is extremely problematic because the fact is, she’ll never sell.  Ever.  This apartment is her equivalent of the perfect husband – only better!  It can’t die, it can’t cheat, it can’t tell her she’s spending too much money, and it can never leave. It’s her safe haven. Her Old Faithful.

If this weren’t the case, surely our offer would have been accepted by now. Aside from her wild decorative tastes, the giant red flag is that she’s had the apartment listed for three years with four different brokerages!  It was initially listed for rent, asking an exorbitant amount. Then she changed her mind and decided to sell it, in what was a down market, for far over what it was worth. From then until now, the asking price and real estate brokerages have fluctuated as irregularly as a heart rate monitor hooked up to a patient waiting for a quadruple bypass.

My guess is that she’s simply testing the market to see what kind of offers she’ll get. Ironically, no number will ever be good enough because the larger it is, the more it validates her staying.

In the meantime our offer still stands but our search continues tomorrow…

 

Sage Advice

yin yang

yin yang

From Wikipedia: Feng shui  is a Chinese system of geomancy believed to use the laws of both Heaven (Chinese astronomy) and Earth to help one improve life by receiving positive qi.[3] The original designation for the discipline is Kan Yu (simplified Chinese: 堪舆; traditional Chinese: 堪輿; pinyin: kānyú; literally: Tao of heaven and earth).[4]

The term feng shui literally translates as “wind-water” in English. This is a cultural shorthand taken from the passage of the now-lost Classic of Burial recorded in Guo Pu‘s commentary:[5]

 

Major cities are cultural melting pots. According to a recent poll, Manhattan is #1 followed by Los Angeles and Miami. As a real estate agent, it’s interesting to see how peoples’ heritage influences what they’re looking for in a home. For example, in my experience, the British are partial to pre-war charm than to new construction. Again, this is only what I’ve witnessed and I don’t want to start stereotyping.

However one factor that is indisputable and crucial to some buyers is the ancient art of Feng Shui, a practice that is based on the Taoist philosophy of nature, particularly the belief that land is alive and filled with Chi, or energy.

We Yanks ignorantly talk about Feng Shui like we’re experts. “Sure, throw some bamboo on the counter, face the bed away from the doorway, and don’t have too much junk lying around.” If only it were that simple.

I previewed several co-ops today for my buyers. One of which I think they’ll really like. While doing my due diligence I noticed that several months ago it had signed contracts. When I asked the listing agent what happened he told me an incredible story.

The couple purchasing the unit were Chinese and devout Taoist’s to the extent that before they made an offer, they had their Mystic Sage come to advise them on the apartment’s energy, or Chi. He told them that it was good as long as they made some minor adjustments which included removing the crown moldings from the master bedroom. They proceeded with the purchase. Contracts were signed by both parties, and the massive board packages were painstakingly assembled by the listing agent and eventually approved by management. The happy couple went in front of the board and was approved the same day.

The walk-through and closing were scheduled for the following week. When the morning came, the listing agent woke up smiling; looking forward to a Champagne lunch in celebration of his closing and large commission check he’d soon receive.

As he strolled through the building’s double doors he was met by the couple — and surprisingly the Mystic. The wife explained that before closing, she wanted him to see it one last time.

When they entered the apartment the agent immediately sensed trouble.  The Mystic wasn’t responding as he had the first time and as a result the wife was distressed. The couple and Mystic talked quietly amongst themselves for a time until the wife confidently announced that they were very sorry but could not go through with closing. According to the Sage, the energy had shifted from good to bad between visits and therefore he could not in good conscience advise his pupils to go forward with their purchase. The agent was dumbfounded, depressed and probably wanted to strangle the Mystic (although that’s just my opinion).

To put the importance of Feng Shui in perspective, you have to realize how much the buyers were willing to lose by not closing – $90,000 to be exact. That’s a fortune to most of us.

I’m just hoping the apartment’s filled with good Chi when I bring my buyers and they leave their Mystic at home.

 

 

 

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