Monthly Archives: August 2013

Get it – Got it – Good.

Every now and then we have the good fortune to work with clients who “get it”. They just get “it”.

They’re nice, punctual, respectful, reasonable, appreciative and they might’ve even done some homework and have knowledge of the market. They don’t try to negotiate an $8,000 per month luxury loft in Tribeca down to $5,000. They simply see it, love it, want it and do what they have to to get it.

I’m not saying you shouldn’t negotiate. In fact I’m all for it.  However, more often than not clients feel the need to “win” the negotiating contest in order to feel secure with their purchase (and themselves). It’s usually not a huge sum either.  In a rental it could be as little as $25.00 a month and in a sale $5,000 which in the big scheme of things is peanuts. A good agent will do whatever it takes to close the gap and sometimes that means sacrificing a portion of his/her commission.

I’m a homeowner twice over and understand wanting to get all the bells and whistles for the best price. However, there has to be an emotional connection too. Not crying in a corner emotional but rather that feeling, that love-at-first-sight cosmic connection when you walk through the front door. Otherwise it’s just another possession, not a home. When I bring clients to a property that they love, and they do what they have to to get it, it makes me happy because that’s what I would do.  Even if I have to spend a few extra bucks, in the end I’ve won the real prize which is my home. Of course when clients ask my advice and I tell them this they probably just think it’s part of my sales pitch. But at the end of the day, are you really going to walk over $10,000 on a 2MM dollar purchase simply out of spite or to win? Some people have.

This weekend, my intelligent, kind and grateful clients moved into their spectacular Tribeca loft.  Aware of my passion for cooking they sent me this extraordinary piece of crockery as a thank you gift.  Mazel tov guys and thank you for getting “it!”

 

Le Creuset French oven

Le Creuset French oven

 

Category: Brag

When Size Doesn’t Matter

Microscopic living or micro living has been getting a lot of press lately since plans for NYC’s new micro-community launched back in January. The 55 modular homes will range between 250 – 370 square feet.

One of the principal designers of nArchitects, the firm that will be designing the capsule-like spaces, said that some of the key features will be high ceilings “to give it a feel of spaciousness” and sliding glass doors opening up to Juliet balconies “so the tenant feels a connection to the city”. The units will also feature 70 cubic feet worth of overhead loft space (think the size of a cars trunk); deep closets and full size kitchens with pull out pantries and fold out counters.  The market rents for these units will be around $2000 per month.

So I get that these “micro” apartments are being designed with “tiny” in mind, but what about the hundreds of miniscule residences without the fancy features and hidden storage spaces which already exist in NYC? To me, 250 – 370 sq feet is “normal”.  In fact, I just signed a 6 month exclusive to sell a 295 sq ft studio in a pre-war coop in Midtown for almost $300,000. My points is, these microcosms are nothing new, rather just very cleverly marketed, and to be fair, designed.

If you want to talk tiny, two years ago I rented a 150 sq ft apartment to a European client. Her budget was $1400 and her first priority was to live near Lincoln Center.  I knew of only one building that had a studio available close to that price. However, the apartment was literally 150 sq ft (!!), and a tad over budget at $1450. I’ve been in closets much larger than this.

Nevertheless I showed her, she loved it and took it on the spot. I couldn’t believe it. I’d never shown an apartment of that size before but that’s besides the point. To her it was perfect, had everything she needed and was a block away from Lincoln Center. She wound up living there for a year and couldn’t have been happier.

Here’s what a 150 sq ft apartment looks like for $1450 per month:

Entry

Entry

Kitchen

Kitchen

 

Living room with loft bed

bathroom

Bathroom

 

What salary buys happiness in your city according to the Wall Street Journal?

While $75,00 is the national average, New Yorkers must earn over double that to achieve happiness at $163,500 per year.

Click here to find out if you meet the happiness threshold:

What salary buys happiness in your city?

Category: Advice

Mutual Misery? Really?!

I’m not sure if I agree with this article from The Real Deal : Landlords and tenants stuck in “stalemate” July rental market

For starters, while not everyone living in NYC is “moving up” due to the high rent prices, there is still a huge influx of college grads moving into the city this summer with impressive offer letters in hand from their prospective employers.

Secondly, most NYC renters were forced to move last year when their rents sky rocketed due to an improving economy.  For example, when the market was in the toilet you could easily get a studio in new development for less than 3k per month and lock into a multiple year lease at the same price or with very little increase. That all changed at the end of 2011 when landlords increased rent prices anywhere from 5%-10% (or more) so residents were forced to move and once again wisely locked into multiple year leases, which could be a reason why fewer New Yorkers are moving this year.

Lastly I think it’s fair to say, judging from this July 2013 rental report, that renters are unquestionably more miserable than the landlords.

NYC July 2013 Rental report

 

 

 

Category: Bad News

No Leg to Stand On

imagesI liken the process of securing an apartment in NYC to The Amazing Race, especially when it comes to renting. With a less then 1% vacancy rate, clients better be ready to sign on the dotted line when you find them the right place. Often, it’s a literal race to the finish line.

Recently I had a single, well qualified renter looking for a one bedroom apartment in Murray Hill. During our first two outings I showed him several apartments which matched his criteria but none that he wanted to call home.

Yet, I had an ace up my sleeve. I knew that any minute, the perfect one bedroom was going to become available in a certain building that he would love. Sure enough, a week after our last appointment, a beauty popped up within his budget. I wasted no time calling him and in less then an hour we were face to face in the lobby of said building.

In the elevator, on our way up to the 26th floor, I waxed on about how terrific the apartment was, how great the renovations were and what amazing views it had.  He was already smitten with the building so by the time we reached our floor, his excitement level was through the roof and I knew we’d soon be signing leases.

When we reached the corner apartment, situated at the end of a long hallway,  I opened the door and saw we had company. Another agent and his client, a smug looking fellow with a leg cast and crutches,  were already in the apartment. I gave them the requisite head nod and grabbed my dazzled client, hustling him into the bedroom (while still making sure to point out the generous closet space), then looked him square in the eye and asked if he wanted the apartment. He enthusiastically said: “Yes”!

I could hear our competition whispering fervently to each other in the other room so I knew that Crutches wanted it too.

GAME ON.

My client and I walked casually into the living room making our way to the front door but not before catching murderous looks from the twosome. Shutting the door behind us, we sprinted to the elevator banging the down arrow button repeatedly while Crutches and his agent quickly hobbled down the hallway towards us. The elevator wasn’t coming fast enough and when it finally did the four of us awkwardly shuffled in. Not a word was spoken but the air in that metal box was so thick with resentment you could cut it with your show sheet.

After what seemed like an eternity the doors opened. We tore off past Crutches and his agent to the management company’s office, which if your leg wasn’t broken, was only a 5 minute walk up the street. As we hurried down the sidewalk I turned to see Crutches and the agent in hot pursuit but I knew we’d get there first so I wasn’t sweating it. Yet.

All of that changed when we arrived at the management company where the leasing agent apologetically informed us that Crutches’ agent had already called to say they were on their way (albeit very slowly) and would be applying for the apartment. My client was deflated but luckily I knew this leasing agent well from having rented many apartments in the building and therefore felt comfortable telling her that was absurd since we were there in the flesh, fully qualified with paperwork in hand.

At that instant her phone rang. On the other end was the receptionist informing her that Crutches had arrived. She looked at us, took a deep breath and told us to wait. Moments later she ushered Crutches and his wary agent into her office with us.

It was time to duke it out. We each pled our case – Crutches being that the apartment would be for him and his wife, both with great careers and perfect credit. Ours being that the apartment was for my client alone, who also had a great career and stellar credit.

The leasing agent took a moment to review each parties credentials, then looked up at Crutches and asked where his wife was and had she seen the apartment yet? Foolishly he told her that she hadn’t but that they would see it together later that evening when she was back in town and he was certain she would love it.

As soon as those poisonous words left his mouth I knew the apartment was ours.

The leasing agent responded asking ” what happens when your wife sees it and doesn’t like the kitchen or the bathroom? Then I’ve lost your deal and this other one” (meaning ours). She was right of course. When you’re dealing with couples it’s imperative that both are on the appointment because rarely are they ever on the same page.

If looks could kill my client and I would be toast, but no matter, the apartment was ours and Crutches didn’t have a leg to stand on.

 

 

Priorities – Update!

My Chipotle loving dudes signed leases yesterday just two blocks from a Chipotle. Congrats guys and buen provecho!

Chipotle-Burrito

Chipotle-Burrito

Buyers Remorse

From Wikipedia, the free encyclopedia: Buyer’s remorse is the sense of regret after having made a purchase. It is frequently associated with the purchase of an expensive item such as a car or house. It may stem from fear of making the wrong choice, guilt over extravagance, or a suspicion of having been overly influenced by the seller.[1]

Well, it’s official. After countless meetings, emails and phone calls, my buyers have once again pulled the plug on the second condo they fell in love with in the past four months. I’m beginning to see a pattern here. They have a classic case of buyer’s remorse even without having purchased anything.

When we first started out in April, they wanted only new construction so I showed them eight “new” apartments from Battery Park City to the Upper East side, saving the best one for last. They loved it,  we pounced, and contracts were drafted with the promise to be signed by my buyers and returned to the seller’s attorney along with a check for 10% of the purchase price within 5 business days. And boy was there A LOT involved in those 5 days, including but not limited to:

  • Answering their dozens of emails,
  • Composing spread sheets of neighborhood price trends (as per their request)
  • Speaking with their attorney
  • Negotiating a storage unit
  • Going back to the building for 2nd and 3rd visits (HUGE RED FLAG)

 

Finally both sides agreed on terms and my buyers planned to sign the contract the next day (the 5th day) . They sent me an email that night just to say how thankful they were for all of my help attaining their dream apartment. Naturally I was pleased and profoundly relieved.

So when they called me the next morning to say they had a change of heart I was gutted, but not totally surprised. Their having to revisit the apartment sent up huge red flags of doubt. They told me, that after further contemplation, the apartment was overpriced (it wasn’t) and the closing costs (which they were aware of from day one) were “just too high”. “So let’s keep looking and focus on pre-construction” they said.

Great.

But then, a week later, they decided they wanted to make a second offer on the same “overpriced” apartment  -  300k less then the asking price! I of course knew that the seller would never accept that and told them as much, but by rule, I must present all offers and so I did. As predicted, the seller didn’t counter and guess what – the apartment had signed contracts by another party just days later. They’re still kicking themselves over losing that one.

After taking some time off to regroup, we resumed our search (for pre-construction) and met two weeks ago in the sales gallery of a high-end condominium scheduled to be ready sometime next year. After looking at several floor plans and a model unit, they fell head over heals with one apartment in particular. Knowing how history tends to repeat itself, it was imperative to me that they were truly serious this time, aware of pre-construction risks, closing costs, and ready to commit before making another offer. They assured me they were. Once more contracts were drafted and sent out to their attorney to be signed and returned in 5 business days.

Immediately my buyers started asking a million questions, made dozens of outlandish requests and revisited the building several times. I wasn’t falling for their stalling tactics again and politely told them as much. They quickly confessed that new construction was too risky for them especially since they were going to be financing and the seller wouldn’t agree to a mortgage contingency. Now, don’t get me wrong – I completely understand their concerns. However, we discussed ALL OF THEM before, during and after our meeting where they assured me they understood and were perfectly comfortable with these terms.

Our last options are resales.  They’re less risky, have lower closing costs, and perhaps a seller will agree to a mortgage contingency. We’re planning to go out next weekend where we’ll see if “three’s a charm” or if my clients have a chronic case of buyer’s remorse.  If so, I might run for the hills.

 

When Nature Calls

ToiletSuccessful Real estate agents are typically attractive, well dressed characters often with inflated egos. Think Annette Bening in American Beauty or the cast of Million Dollar Listing. When you’re in sales, being attractive gives you an advantage over your less attractive counterparts.  Why is this you ask? It simply comes down to sex. According to University of Chicago’s professor, Dr. Dario Maestripieri, from his article in Psychology Today,  “a door-to-door insurance salesman  is better able to sell to customers who find him attractive because the customers will be more likely to buy if they think it will increase their chances to have sex with him”.  

How primal.

But no matter how attractive and sophisticated you are, underneath the shiny clothes we all share the same very basic human functions:

  • Eating
  • Sleeping
  • Shitting

 

Sometimes that last one creeps up on you at the least opportune times…

A couple years back a good friend from my firm and I listed a gorgeous 2 brm triplex in a chic Greenwich Village condo. Our first open house was on a Thursday evening from 5-7p. I had a scheduling conflict at that time so my partner held the open house solo. Everything was going well until approximately 6:30pm when he called me in a panic.

Frantically he explained that while showing the apartment to some prospective buyers he started to feel quite ill. He quickly rushed them out, locked the front door and ran up to the en-suite master bathroom where the call of nature took over. And take over it did. So much so that the state-of-the art commode couldn’t handle the mass and up it went, stopping dangerously close to the edge of the seat.

While I felt for my partner and our precarious situation, I couldn’t help but laugh. I don’t think he’d ever plunged a toilet a day in his life and the thought of doing so was like something out of Fear Factor. Regardless, the clock was ticking. In less then 30 minutes the sellers would be home so he had to get to work.

I stayed on the phone with him like a 911 operator as he plunged his heart out, sloshing malodorous toilet gravy all over the bathroom floor (luckily there were no rugs in there). When it was clear plunging wouldn’t work it was time to wave the white flag of surrender, let every last ounce of ego go, and call the building’s superintendent.

He did, hastily explaining the dire situation to the kind fellow who thankfully came quickly, fixed the toilet, and promised not to tell the owners. My partner tipped him generously, lit a bunch of matches and let out a HUGE sigh of relief.

The sellers came home and never knew any different but it was a humbling experience for my partner to say the least.

 

 

 

 

 

 

Side Effects of Being an Agent

If you’re a real estate agent you may experience one or more of the following symptoms:

  • Loss of appetite
  • Loose bowels
  • Constipation
  • Indigestion
  • Head pain
  • Nausea
  • Chest pain
  • Fatigue
  • Insomnia
  • Irritability
  • Dry mouth
  • Excessive sweating
  • Extreme elation followed by severe sadness
  • Unable to follow any conversation that’s not related to your deals
  • Urge to check cell phone every 30 seconds.
  • The red blinking email notifier light on your blackberry causes you post traumatic stress disorder
  • Fantasize about becoming a recluse and moving to a sheep farm in the middle of nowhere.
  • Fantasize about having a career in manual labor i.e. plumber, painter, construction worker, etc.
  • Chronic animosity towards homo sapiens in general

It’s What’s on the Outside That Matters

I like to keep this blog light. However I can’t not address this miserable, senseless tragedy which unfortunately happens too often in New York City where outdoor space is a highly desired commodity that you pay a premium for. In this case, the young lady paid with her life.

I’ve rented clients apartments in Stonehenge 57. They’re clean, nicely renovated and amply sized by NYC standards. But that’s the interior. What we don’t think about is what’s happening on the outside of these buildings. When you’re living in mid-rises (like this one), skyscrapers, or townhouses often it’s what’s on the outside that really matters and is most often neglected by landlords.

According to ABC news, every five years landlords are supposed to file mandatory inspection reports on the safety of their balconies and terraces and some 800 owners FAILED TO DO SO!” Why? Because it’s a bureaucratic pain in the ass, costly and disruptive. Remember folks, these are landlords with deep pockets so in other words it comes down to being cheap, lazy and grossly irresponsible.

Another neglected exterior issue in pre-war buildings’ like Stonehenge 57 is “brick repointing“. Most pre-war buildings are made of brick and mortar. Every few years landlords are supposed to have them “repointed” (they rarely do). This is the process of renewing the pointing (the external part of mortar joints) in masonry construction. Over time, weathering and decay cause voids in the joints between the bricks allowing the troublesome entrance of water. Water entering through these voids can cause tremendous damage and weakens the building’s exterior.

I had my own experience with repointing years ago when I lived on the 35th floor of a “luxury” rental high-rise in Murray Hill. That summer I traveled to Europe for a week and upon my return found my apartment flooded with 3″ of water, my parquet floors buckled and my rugs and furniture saturated. I was perplexed. How could a 35th floor apartment flood?! Well, while I was away, NY had high winds and rain which came right through the walls of my apartment and several others. We found out later that the landlord never had the building re-pointed as he should have years before. Thankfully no one was hurt, the apartments were eventually repaired and life went on as usual. Tragically that’s not the case for this young woman and her family.

 

 

 

 

Category: Bad News
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