Gea Elika's Blog, page 101

Want to Live Off-Campus? Here are the Most Student-Friendly Neighborhoods in NYC

New York City might be the land of opportunity’s but it’s far from affordable, especially when you’re a college student. But while it might not be easy to find affordable housing it’s not impossible. If you’re getting sick of dorm life, then you’re not alone. Many students want a place to call their own but if you’re fresh out of the nest and new to the city it can be difficult knowing where to look. That’s why we’ve compiled this list of student-friendly neighborhoods in Manhattan and Brooklyn. Each one has been chosen based on low crime rates, easy transportation, and affordability.

Morningside Heights

Being that largest student neighborhood in NYC, it’s not surprising that Morningside heights made the list. If you’re attending Colombia you’re effectively on campus as the university owns many buildings in the area. Located north of the Upper West Side and south of Harlem, Morningside Heights is the largest student neighborhood in NYC. Although it might not be the safest neighborhood in the city, living here won’t be a cause for much worry to your parents. It has a relatively low crime rate of 1.3735 crimes per 1,000 residents.  Pros include lots of student-friendly services and easy transport to all the local universities. The only cons are that you won’t meet many New Yorkers as the neighborhood is mostly populated by other students like yourself. Average price for a shared 3-bedroom apartment is $1,433.

Washington Heights

This culturally diverse neighborhood can be found just above 179th Streets. It’s quickly becoming popular with millennials with 10% of the population (50,103 residents) being aged from 20 to 34. And no wonder, rents are affordable and apartment sizes tend to be generous. Here it’s possible to rent a 3-bedroom apartment that really has three bedrooms, meaning there’s enough space to fit a bed, closet and other furniture without feeling too cramped. Students here will be able to enjoy more open spaces and a great college vibe with many new cafes and restaurants. The average price for a 3-bedroom shared apartment is $1,002.

Inwood

If you’re looking for affordability in Manhattan, then you can’t do better than Inwood. A close northern neighbor to Washington Heights, here you’ll get the same generously sized apartments and Latin-American restaurants. But what you’ll get in addition is slightly lower prices which average $983 for a shared 3-bedroom apartment. You’ll find far fewer millennials here than in its southern neighbor which lends it a quitter and sleeper vibe.

Bed-Stuy

The neighborhood of Bedford-Stuyvesant has something of a marred reputation from its historically high crime. But these days that’s old news with the neighborhood seeing a drop in violent crime of 44% between 2000 and 2016. A period of time which also saw the number of local business increase by 73%. If you choose to live here, you’ll have your pick of beautiful brownstones to choose from. Many of them with original features and fireplaces installed. Prices are also affordable with the average 3-bedroom shared apartment costing $1,090. However, the downsides will be a long commute if attend Colombia (over 1 hour).

Crown Heights

If you’re looking for diversity, then Crown Heights has it in spades. Up until the 1960s, the neighborhood was predominantly Jewish until demographics began to change. Many old-time residents moved out to the suburbs and large numbers of West Indian immigrants began to move in. Staying here means you’ll get to enjoy some of the best Indian food in the city, so it makes sense to get to know the neighbors. A large number of affordable rental units can be found in the neighborhoods many brownstones and pre-war buildings. On summer days it’s pretty common to see locals setting up barbecues and sound systems for spontaneous sidewalk parties. Average prices are $1,099 for a room in a 3-bedroom apartment.

The post Want to Live Off-Campus? Here are the Most Student-Friendly Neighborhoods in NYC appeared first on ELIKA Real Estate.

How to Research a Building and Landlord Before You Sign a Lease

Landlords in NYC tend to be very picky about prospective rental tenants. They ask for multiple pieces of identification, your financial records and even letters of recommendation from previous landlords before they even present you with a lease to sign. In such a hot market as NYC, it can be so difficult finding an apartment that you jump at the first opportunity to grab one.

But rather than jumping before you look, why not take a leaf out of the landlord’s playbook and do some research of your own. It’s important to know what you’re getting into before you sign a lease. At first glance, a home might seem perfect but if something is wrong you could be in for a long year. Fortunately, there’s plenty of online recourses to help you research the building and landlord before you sign on the dotted line. Make sure you do the right research before you risk your money and patience.

Research your landlord

Most landlords in NYC are decent people but there are a few to watch out for. Thankfully, it’s pretty easy to determine who they are. The office of New York City Public Advocate Letitia keeps a landlord watchlist of the worst landlords in the city. This is a list of the cities 100 worst landlords and allows you to search by landlord/management or building name. It also keeps a list of the top ten worst buildings in the city. If you see a property on the list that you’re considering, then run away fast.

For more information, there are a few crowdsourced websites that can provide landlord reviews. The most popular are Rate My Landlord, Review My Landlord, and Whose Your Landlord. As with most review sites, the info is provided by tenants sharing their own experiences so don’t believe everything you read.

Investigate the building

You can make things easy by having NYC government agencies do the work for you. Check out the Department of Buildings and the Department of Housing Preservation and Development for any complaints lodged against a building. This also includes any DOB violations and Environmental Control Board violations. Make sure to take special note of any ECB violations as these indicate more severe issues such as mold or pest infestations.

Check for bedbugs

Once you’ve got bed bugs it can be a huge pain and expense to get rid of them. NYC landlords are required by law to disclose if whether the property has bed bugs are not, so it should be enough to simply ask. But if you suspect your landlord may be hiding something you can check the Bed Bug Registry. The site is crowdsourced by other people, so you can’t always be sure of its accuracy but it’s a useful starting point. Simply type in the address of the building your researching and any reported cases will appear along with nearby buildings that have bed bugs. If your building comes up, mention it to the landlord and ask how (or if?) they addressed the problem.

Consider renting a condo

Choosing a condo may be more expensive but if you’re planning to stay for more than a year the price is worth it. Condo owners tend to have a larger interest in keeping the property in good condition as they’ve made a larger investment. They also tend to be more attentive to your needs and concerns as a renter than a multi-property career landlord.

The post How to Research a Building and Landlord Before You Sign a Lease appeared first on ELIKA Real Estate.

Negotiating Real Estate Agent Commissions

Traditionally, the seller’s agent charged a 6% commission, which he or she collected when the property sold. Of course, if the seller changed his or her mind during the process and canceled the listing agreement, the agent did not earn a penny, despite expending out-of-pocket costs, such as advertising, as well as his or her time spent marketing the property.

With New York City’s high prices, a 6% commission is quite a large sum of money. Since the seller pays the commission, it is up to him or her to negotiate a lower rate. In recent years, brokers and agents have been willing to do so, particularly under certain circumstances.

Buying and selling

You have more negotiating power with your agent if you plan to use the same one to handle the sale and your new purchase. The agent and brokerage will earn commissions from each transaction, and therefore may provide the seller with a lower commission rate.

If your property sells for $1 million, the total commission is $60,000, based on a 6% commission rate. The brokerages representing the buyer and seller typically split this fee equally. The 3% fee for each brokerage is further divided between the agent’s brokerage and agent, which is dependent on their commission split agreement.

Therefore, your agent collects at least a 1.5% commission on the sale. In order to gain the business of selling and helping you buy a home, he or she may accept a lower commission rate if approved by his or her brokerage.

A less experienced agent

An agent just starting out, or who has little experience may offer a lower commission rate in order to drum up business. You should approach this cautiously, however. Sometimes, you get what you pay for, and you do not want the agent to learn and gain experience at your expense. If you are going down this route, ask the right questions. You are seeking answers that raise your confidence in his or her qualifications, ability to handle situations which may come up and negotiate properly.

Higher priced properties

An agent may negotiate a lower rate if you are selling a high-priced property. After all, the commission’s dollar amount is large. Remember, New York City’s high housing prices mean the threshold is higher. The luxury market starts in the $3 million to $5 million range. You can certainly ask for a lower rate on your $1 million unit, though.

For Sale by Owner

The For Sale by Owner (FSBO) segment traditionally did not use a brokerage. However, there are situations where the agent will provide certain assistance for a discounted commission rate. We are wary about FSBO listings, however. New York City is a complex market and you do not have full access to the agent’s expertise and marketing power. There are also other services a listing agent provides, such as home staging.

Does it matter for buyers?

The seller may not pass these commission savings on to the buyer. He/she may reap the rewards, without sharing the gain with you. After all, you are looking at comps, and basing your offer decision on the property’s estimated fair market value.

The post Negotiating Real Estate Agent Commissions appeared first on ELIKA Real Estate.

Complete Credit Score Guide: Fix Your FICO Score® to Buy a Home

What Credit Score Should You have Before Buying a Home?

The government-sponsored enterprises, The Federal National Mortgage Association (Fannie Mae) and The Federal Home Loan Mortgage Corporation (Freddie Mac) require a particular minimum FICO Score. However, your lender ultimately decides on whether to extend you a mortgage. Generally, lenders and co-op boards look for higher scores.

Unless you are a cash buyer, obtaining a mortgage is a vital part of the home buying process. Therefore, we think it behooves the majority of buyers to understand this arcane topic.

The minimum

Fannie Mae and Freddie Mac both require a minimum 620 FICO Score. You can have as low as a 580 FICO Score for an FHA Loan, which is insured by the Federal Housing Administration, providing you have a minimum 3.5% down payment, or a 500 FICO score if you can put down 10% of the purchase price.

If you are eligible for a VA loan, there is no minimum required score.

What the score means

There are three national credit bureaus, Equifax, Experian, and TransUnion. Each could very well have a different FICO score for you, however. The Fair Isaac Corporation had provided several explanations for the variation, including different time periods when the score request was made, varying information reported to the bureaus, and lenders reporting information to the bureaus at various times.

The scores range from 300 to 850. A bad credit score is 300 to 629 while a score of 630 to 689 indicates fair or average credit. Lenders consider your credit good range if the score is in the 690 to 719 range. If your score is at least 720, you have excellent credit.

Since there are three scores, lenders typically use the middle score. Hopefully, there is not too much variation, though.

One person has bad credit

If you are buying a house with someone that has poor credit, and his/her credit score indicates this, there are other options you can pursue. You can apply for a mortgage by yourself, providing you can get approved. Remember, there are other items that lenders look at, such as income, notably your debt to income ratio, and employment history.

There are legal ramifications that you should also consider. You are the one financially responsible for the mortgage. However, this does not affect the property’s ownership, and you can still hold the title in two names, regardless. If you go down this route, this means he/she has a financial interest but does not have a corresponding financial obligation.

What is a FICO Credit Score?

Many people go shopping for a mortgage blindly, without fully understanding the implications of their credit score and the impact on the interest rate and other term lenders are willing to offer. We will shed light on the factors that go into your score, items that will impact it, and why it is important to check for errors.

This may sound dull but bear with us. The knowledge we are imparting could save you a lot of money.

What is FICO?

This is the most widely used credit score. The name is derived from the fact that it was created in 1989 by a company that was called the Fair Isaac Corporation, hence FICO. It is used by approximately 90% of the top lenders in the country to assist in making credit decisions.

FICO scores range from 300 to 850. Your credit risk to the lender is lower the higher the score. In other words, the number sums up several factors to evaluate your riskiness from a lender’s point of view. You must have enough information, particularly recent data, for the credit bureaus to calculate a score. This typically means having at least one account open at least six months.

There are three major credit bureaus (Equifax, TransUnion, and Experian). FICO scores are determined based on the information obtained from these companies. Therefore, it is not unusual to have slightly different scores. For instance, the notification of a late payment may vary or miss an account. If there is a large difference, this warrants further investigation. While it may be legitimate, it likely means the agencies have different information. It is also important to realize that your credit score will change over time.

We will discuss the various information that goes into determining your score.

What does this mean for my rate?

If you have a score above 760, this is excellent. If it is above this threshold likely won’t get you better terms. However, if you are in the 500 range, your mortgage rate could be about 4% higher. It is essential to keep in mind that each lender will have its own rules. The difference on a $500,000 mortgage is over $1,300 a month assuming a 4.5% rate at the low end for a 30-year mortgage.

Importance of Credit Scores

Credit scores are important, and a low score will cause lenders to charge you a higher interest rate. If it is very low, you may not get a loan altogether. This was particularly true during the financial crisis when lending became very tight.

However, it is not the sole basis for making a lending decision. Nonetheless, obtaining your credit score to check for accuracy, particularly in this era of fraud, is very important, and not just if you are shopping for a mortgage. Under the Fair and Accurate Credit Transactions Act (FACT, each legal U.S. resident is entitled to a free copy of his or her credit report from each reporting agency once every 12 months.

What Goes Into a Credit Score?

The exact formula for calculating credit scores is kept under wraps. However, FICO has disclosed the various components and weights.

The largest portion, at 35% is payment history. Various items such as bankruptcy, liens, charge-offs, foreclosures, and late payments can have a significantly negative impact on your score. The second largest component (30%) is a debt burden. There are some different metrics, including debt to limit, the number of accounts with balances, and the amount owed on various types of accounts. In other words, it is a measure of credit utilization. If you max out your credit cards, your score will be lower. However, if you use less than 10%, that is a major plus. This is followed by the length of credit history (15%). The longer you have had credit, the higher your score. If you are new to using credit, your credits score will be lower.

The next two components are types of credit used and recent searches for credit, at 10% each. There is a benefit to having a history of different types of credit, such as mortgage and revolving (e.g., credit card). On the other hand, many credit inquiries, particularly within a short period, will harm your credit score. However, this is misunderstood by many. Only “hard” inquiries, such as when consumers apply for a credit card, loan, or mortgage, count against your score. Therefore, checking your score for errors or employment, will not lower it. Furthermore, if you are shopping around for a mortgage over a short period, your score will not meaningfully decrease since it is considered only one inquiry.

Components of your credit score

Figuring out your budget is one thing, but you’ll also need to get your bearings when it comes to your credit situation. Credit scores range from 300 – 850, and lenders require a score of at least 620 to approve a mortgage. To qualify for the best interest rate available, you will need a credit score of no less than 720. Several factors affect your credit rating:

Your payment history: Do you make your monthly payments by the due date every month? A late payment can be almost as damaging as no payment at all.
Your overall debt burden: High balances on multiple accounts tell lenders you may be overextended.
The length of time you’ve had credit: A long history of prompt payments and paid off accounts improves your score.
Your available credit: Many open accounts with low balances and lots of available credit are a red flag for lenders, signaling a risk for future credit problems.
The types of credit accounts you have: Lenders prefer to see both secured (a car loan, for example) and unsecured (credit and charge cards) accounts; it’s a sign of financial responsibility.

How to Improve Your Credit Before apply

So, your credit has seen better days. Good news—it’s not the end of the world. While you may need to jump through hoops to even rent an apartment right now, you can bring your credit score up to eventually qualify for home-ownership. Start working on fixing your credit today.

Fortunately, there are also some things you can do to build your credit. You’ll get the best mortgage terms with a high credit score and a low debt-to-income ratio. Take steps now to boost your score before you see a lender.

Fix my credit to do list

Request a credit report from the three major credit bureaus (Equifax, Experian, and TransUnion), and check them carefully for errors. If you do spot a mistake, make sure it’s corrected with all three credit agencies.
Never make the minimum monthly payment on your credit card bills. It’s best to pay them in full each month, but if that’s not possible, pay as much as you can afford. Keep in mind that balance transfers can lower your overall credit score.
If you’ve had credit problems, wait at least a year before you apply for a loan. Lenders are more favorable the more time has elapsed since your last late payments.
It’s best not to open any loans or credit accounts in the months immediately before you apply for your mortgage. High levels of available credit can lower your credit score.
Once you’ve applied for a mortgage, freeze your spending until you close on your home. Don’t apply for any new credit cards or loans, and don’t make any significant purchases on existing cards.
Target two or three favorite mortgage lenders and apply to them all at the same time. Too many credit bureau inquiries lower your credit score, but several inquiries in a short period by a single type of lender will typically count as only one inquiry.
Stay away from finance companies. In addition to the high-interest rates, most lenders view finance company accounts as evidence of bad money management.

When Your Credit Needs an Intervention

If you’re looking to buy a home in the future, fixing your credit score is vital. The recession of the late 00’s is still fresh in the minds of lenders, making home loan qualification regulations tight. For example, these days, you’ll need at least a 580 even to be considered for an FHA home loan.

The great thing about FICO scores is that they only go up and down according to an algorithm. These numbers aren’t biased. They don’t care who you are or where you come from. They only rate your financial capacity based on what you do. So, what can you do to bring up your credit score for home ownership?

Create a Good Payment History

Did you know that your payment history makes up roughly 35 percent of your credit score? Unpaid bills like past-due car payments are often submitted to credit reporting agencies. If you have anything like this on your record, you’ll need to remove it and replace it with a squeaky-clean record of fully paid bills.

Having no credit can be just as bad as having a low FICO score. With no history to go by, lenders may also be wary of trusting you with a home loan. If you have no credit, start making a paper trail for a good payment history, like taking over a phone bill. This will help set the foundation for a good score in the future.

Keep Your Balances Low

Not only should you shoot for a good payment history, but you should also keep your credit card balances low. Just because you have an $8,000 limit on your Visa card, it doesn’t mean it’s okay to make large purchases you can’t pay off on time. Credit reporting agencies see this kind of behavior as risky, which can lower your FICO score.

Remove Bad Credit Reports

Never underestimate the power of negotiation. Creditors don’t like unpaid bills just as much as you don’t want being bothered about them. When you call and present a “pay for delete offer,” you have a chance to get your lousy behavior removed after you pay off the debt. Many creditors will be happy to remove your nonpayment records in exchange for receiving the full payments. If you’re short on cash, negotiating installment payments over time is also often doable.

On a side note, you might have inaccurate bad reports. In this case, file a dispute letter to get the record removed.

Find and address credit card errors

In some cases, it’s not your fault if your credit score is low. Creditors sometimes make mistakes in their reports, at least one in four according to the Federal Trade Commission. Before doing anything else, request a report from each of the three nationwide credit reporting companies (Equifax, Experian, TransUnion) at Annual Credit Report. By law, you’re entitled to one free report a year. If you find anything unusual – say, a falsely reported late payment or unpaid bill – the report should tell you where to send the dispute. Once the error is corrected, you should see an immediate boost in your credit score.

Have activity on your credit report every month

Having no credit history is just as bad as having a low FICO score. With 35% of your score based on payment history, it is vital that you have a paper trail. The cheapest and easiest way to build and maintain your score is through the use of a credit card. This doesn’t mean you need to make large purchases on a regular basis. Just one or two purchases by card a month (it can be as little as a loaf of bread). Then make sure you pay the statement balance in full and on time every month.

Keep your utilization low

Your credit score depends not just on what you owe but on what you owe compared with your credit limit, a ratio known as credit utilization. For example, if you have a $4,000 balance on your card with an $8,000 limit, your credit utilization is 50 percent. There are a few theories on what the best credit utilization level is, but most agree that it should be no more than 30 percent. A card that is continually being maxed out is a red light for either a lack of control or financial hardship.

Get your bills current

You typically have 30 days to make a payment so If you’re running late on one try to get it paid ASAP. Even if you’ve already passed that mark the sooner, you pay it; the less damage is done. If you’ve had a bad run of missing payments in previous months, you can fix the damage by immediately switching to paying all bills on time. After 2-3 months you should see an improvement in your credit score.

Become an authorized user

Do you know someone you trust completely and is good at managing money? If so, and they’re willing to let you become an authorized user, then their account will show up on your credit report. As a result, your credit score gets a boost from their on-time payments and (hopefully great) credit utilization rate. Just make sure you choose someone who does pay their bills on time and keeps a low debt. Bad credit history will show up just as much as good.

Remove bad credit reports

As with a lot of things, there’s always room for negotiation. Creditors don’t like unpaid bills anymore then you do. You have the option of getting your lousy behavior removed from your credit report by presenting them with a “pay for delete offer” in exchange for making the full payments. If it’s not possible for you to make the total payments now, negotiating for installment payments in another option.

These strategies may be straightforward but keep in mind that ‘fast’ is a relative term. Rome wasn’t built in a day nor was it destroyed overnight. Give it a good 2-3 months before you start seeing results.

Get to Work

A good credit score paves the way to a bright future of home-ownership. Pay your bills on time, keep your credit card balances low (paying it off fully every time will also save you interest charges), and don’t open too many new credit lines, including credit cards.

By taking these steps as soon as possible, you are likely to see improvements in your credit score.

To learn more about how your credit score is calculated, visit MyFICO.com. You also can request a free credit report at AnnualCreditReport.com.

The post Complete Credit Score Guide: Fix Your FICO Score® to Buy a Home appeared first on ELIKA Real Estate.

New York Homeowners Insurance: Get the Best Coverage

[image error]NYC Homeowners Insurance Guide

Homeowners insurance is an often overlooked expense when purchasing a New York City apartment. In our Homebuyers Handbook, we provide an overview of warranties and insurance considerations, which is an excellent place to start. There are explanations on what to look at for and understand, as well as tips to lower your homeowner’s insurance premium. We will review this material and delve deeper into this arcane topic.

Do I need Homeowners insurance in NYC?

You will likely be required by your lender to have homeowners insurance if you have a mortgage. This protects the lender, which has a lien on your property, in the event your home is damaged.

For those that do not have a mortgage, it is strongly advised you take out a policy. This is a significant asset, perhaps your biggest one, particularly given real estate values in New York City. You will likely want to protect your interest from an unfortunate event. It also protects you should someone get injured and decide to sue you. If you have purchased a condo or co-op, the board may also require you to buy insurance.

Keep in mind; a homeowners insurance policy is different than a home warranty. The latter covers specific items in the home. For example, it could include the dishwasher, air conditioner, refrigerator, and washer/dryer, in the event one of these breaks down. It does not cover a loss from a natural disaster or theft, as a homeowners policy does.

What it covers

A standard insurance policy covers the home along with possessions inside. This protects against damage to your property and any liability that may arise from injuries or property damage caused by you or your family members. Events such as fire, theft, and specific natural disasters are typically covered. Policies in this part of the country usually include wind damage (this may not be the case in other states, such as Florida). Most policies specifically exclude damage from floods and earthquakes, although these probably are not a concern for apartment dwellers in Manhattan. Problems caused by a lack of maintenance, such as leaky pipes, will be your responsibility to fix.

How much insurance?

How much insurance coverage to purchase is dependent on the value of your home and possessions. You should seek the replacement cost. Therefore, it is incumbent upon you to calculate how much you need to protect. First, look at the value of your home. Your insurance agent can help you with this by going through the various features, such as square footage, the number of bedrooms, and other items that would affect the value. Replacement cost will pay out the amount to replace the item, even if has depreciated. You will have to prove you replaced the item. This is opposed to actual cash value, which pays the original cost less any depreciation.

It is recommended you make an inventory list of the items in your home. This will make it easier to determine how much coverage you need as well as expediting a claim should you have to make one. You should list your possessions, particularly significant ticket items, and include the make and model, along with receipts and appraisals. It is also a good idea to take pictures and videotape a walk-through, which should be stored in a secure place such as a safe-deposit box.

As for liability coverage, the Insurance Information Institute states that increasingly $300,000 to $1,000,000 is recommended. However, if you have a high net worth, consider adding on to this amount.

Premiums

There are several factors that will affect your homeowner’s insurance premium. This includes the home’s features, location, and any protective devices such as an alarm system and smoke detectors. If your building has a doorman or security guard, or an up-to-date fire alarm system, your premiums will also be lower.

There are several tips to try to save money on the premium. First, shop around. With the Internet, this is easier than ever. Beyond that, purchasing homeowners and car insurance through the same company will likely get you a discount. There may be other discounts you are eligible for, such as professional affiliations. Depending on your risk tolerance and the amount you can afford to spend should something happen, your premium will be lower if you are willing to have a higher deductible?

How to Find the Right Homeowners Insurance

When the free market is flooded with homeowners insurance companies vying for your business, how do you choose? Overall, seek out providers that offer both integrity and affordability.

What Should You Look for in NYC Homeowners Insurance?

New Yorkers face the problem of annual homeowners insurance premiums that are over $100 the national average of $1,034. This means that New Yorkers have to pay more than the rest of the nation’s homeowners for the same amount of coverage. Thankfully, by exploring your options and taking all the necessary precautions, you can still have excellent protection for your home without sacrificing too much of your hard-earned money.

Integrity – Choose a Provider That’s Upfront with Costs and Coverage

Insurance providers vary in their levels of price and coverage transparency. As a homeowner, you need to find a company that’s 100 percent open about what you’ll pay and very specific about what you’re getting for your money. Be sure to explore the fine print. If you see too many odd “exceptions” to your coverage, ask questions, but it’s probably smart to keep on shopping.

Find One That Recommends Only What You Need

An insurer that pushes you to pay for add-ons like earthquake coverage, when the risks for tremors in NYC are relatively low, probably isn’t a good choice. Instead, you want a provider to offer useful additions like flood insurance. Since rising waters do pose problems for homes on Long Island, investing in this kind of add-on to your plan could keep you out of some future trouble.

Affordability – Look for a Provider That Offers Discounts

If you have multiple insurance needs, you should explore the option of covering everything with one provider. Insurance companies that offer life, auto, boat, and home insurance into bundle discount packages can take some of the stings of your finances. Plus, lower prices mean you can get good coverage for lower rates.

You will also want to find a provider who offers better premiums when you lower the risk factors in your home. A good insurance company will also give discounts for new homes, new customers, and retirees. When a company offers good incentives, you know they value your patronage.

A Good Provider Will Charge You Based on Your Home’s True Value

You don’t want to pay for coverage for a million-dollar home when your dwelling is worth $700,000. Since your home’s cost of replacement plays a significant role in the size of your premium, getting an accurate appraisal is key.

Don’t let an insurance provider’s assessment be the final say. Instead, get a home builder or appraiser to offer a second opinion. With third-party help, you can often get more accurate assessments that grant you a more honest premium. If your company won’t be open to assessments from other professionals, it’s time to keep on shopping.

You don’t have to skimp on coverage to afford homeownership in New York. Instead, take your time when looking for homeowners insurance and do business with an honest and fair provider.

Home Insurance versus Home Warranty

We have previously discussed the importance of home insurance. Lenders require it, although we recommend having insurance even if you do not have a mortgage.

However, this is different than a home warranty. While you can consider both a type of insurance, each covers different circumstances.

Home insurance

A home insurance policy covers expenses for your repairs when there is an event, such as a natural disaster, fire, and theft. When you are shopping for an insurance policy, you need to understand what is covered and the deductible. You can choose a higher deductible to3 lower your premium, but this provides less protection since you have to pay more out of your pocket in the event you need the insurance.

For a condo, you own the unit, so you need to insure it and all of your contents. In a co-op, you are a shareholder, owning a percentage of the entire building. In this case, you should have insurance for your personal property, and the co-op board will purchase a policy that covers the building. Your monthly maintenance fee contributes to funding the policy.

Home warranty

You are not required to have a home warranty. Unlike a home insurance policy, which would cover the items when there is a specific event, a home warranty covers the item for normal wear and tear. Home warranties cover specific appliances when they break down, either paying for the repair or give you money towards a replacement, depending on the policy’s details.

Typically, the items include the furnace, air conditioning, washers/dryer, and dishwasher. Again, it behooves you to examine the specific policy to see your coverage and deductibles. It is not unusual for the policy to have a modest deductible. The basic warranty may not cover the most expensive items, although you can purchase additional coverage to include items not covered in your policy if you wish.

A negotiable item

When you are purchasing your home, you can ask the seller to pay for a home warranty for a period, typically a year. This can help ease your concern, mainly if the appliances are older. Sellers might go along to alleviate the buyer’s anxiety and help close the deal. A survey taken several years ago showed homes with a home warranty sold faster and for more money, although this was conducted by American Shield, a large provider of home warranties.

Cost-benefit analysis

If you are getting a home warranty on your own, weigh the premium cost against the potential repair expense. You might find it more economical to place the money in a fund that you can use for repairs or replacement. This takes discipline to create an individual savings account and regularly contribute money, however. Of course, if you are handy, you might not need a home warranty policy at all.

You do not get to choose your person to conduct the repair. When something breaks down, you call the warranty company, which sends someone from one of its contracted repair companies. You should keep this in mind if you already have someone in mind that you like very much.

Final thoughts

Insurance is a topic akin to going to the dentist. It may be necessary, but many do not find the experience pleasant. However, it is an essential step if you are going to be a homeowner, and getting the right amount of insurance can save you headaches later one.

The post New York Homeowners Insurance: Get the Best Coverage appeared first on ELIKA Real Estate.

Building Communities

While article after article may lament that millennials don’t speak to each other and have their eyes stuck to their phones, it’s not entirely true. While the younger generation may be overdoing it on screen time, they’re craving community in alternate ways – like their homes.

New York City can be the sort of place where it’s hard to get to know your neighbors. People may move after just a year inside their apartment, and striking up a conversation in the elevator is more uncommon than preferred. Because of this, certain enclaves in the city are re-defining community outside of Facebook or Instagram by building said communities into their homes.

Let’s talk about co-living.
Are no, we’re not talking about getting a random roommate.

Co-living is having its moment in New York City. Described as similar to “adult dorms,” co-living allows you to have your private bedroom while sharing more communal elements like kitchens and living rooms with other New Yorkers.

Companies like Ollie and Common popped up to give New Yorkers the opportunity to have flexible leases and to make some friends along the way, while they take care of the hassle.

Most importantly though, these co-living communities come with community engagement and built-in experiences – the ultimate new amenity. Ollie invites residents to everything from rooftop socializing events to day trips skiing. The company also organizes volunteer opportunities for residents, along with vacations for the group.

Do people want this?

It seems so. The new amenity indeed is the experience – and specifically, the no hassle experience. A large group of New Yorkers are enamored by the idea of having less “stuff” and more unique opportunities to try something cool. New York is a great city that can feel very lonely, and these built-in activities are a great way to instantly build community while getting to explore the city. A shared kitchen often translates to shared dinners, and shared meals translate to new friends.

What if you want some cool experiences but still want your own apartment?

Well, developers are paying attention to these people as well! Many buildings are now showcasing amenities that give people the option to build communities. An incredibly trendy option is the community garden, which allows residents to feel like they aren’t in New York and also to have an opportunity to grow their own food. In Staten Island, a significant development includes a 4,500 square foot garden and a guide to help you grow your own produce.

At 225 East 39th Street in Murray Hill, the building showcases a bocce ball court and a shuffleboard court. Though these are simple amenities, they allow residents to interact with each other in a no-pressure situation and encourage residents to befriend each other, so they have someone to engage in these activities with.

A connection is key.

Many buildings also offer events for residents like movie viewings or Superbowl parties. Therefore, shared lounges and/or working spaces are a must. People living in small apartments need a scenery change once in a while, and the lounge offers the perfect opportunity to technically leave your apartment. MiMA in Hell’s Kitchen provides a building basketball league, summer movie events, and dog “yappy” hours for residents who own dogs to get to know one another.

Anything that helps people connect with one another – whether it be yoga class or book club is what the new wave of renters and homeowners is looking for. It’s no longer about your private wine fridge – it’s about meeting your neighbors over a carefully curated wine tasting.

The post Building Communities appeared first on ELIKA Real Estate.

No-Fee Apartments: How To Rent No-Fee in NYC

No-Fee Rental Apartments Uncovered

New arrivals in NYC are quickly overcome by how complicated the housing market is. There are many twists and turns to it, even if you’re only looking for a rental apartment. Chief among these is the difference between a fee and no-fee apartments. Any quick search on listing websites will turn up apartments for rent listed as “no-fee” while others will make no mention of a fee at all. These are the two types of rentals available in NYC, ones with a broker’s fee and ones without. If you want to rent an apartment in NYC, you’ll need to decide between the two. Just don’t be too quick to assume the no-fee choice is the best one. As you’ll soon see, there are some downsides to it.

What is a fee?

In the real estate rental world, a “fee” is the cash amount you pay to the broker that helped you find an apartment. This is how brokers make their living and what motivates them to find you an apartment once you’ve hired them immediately. In NYC, the broker’s fee can be up to 15% of the full-years lease. This might seem like an easy gig for the broker. All they’re doing is collecting a nice fee for finding a rental apartment you could have located on your own, right? Well, not exactly.

A real estate agent can devote themselves full-time to the task of finding a rental apartment for you. They’ll have access to exclusive listings, landlord relationships, have contacts to rentals, condos, and co-ops that haven’t been listed yet and be able to do all the legwork and hard negotiating. If you don’t have time to search on your own, they make for the most natural choice.

What does no-fee mean?

To attract renters seeking to avoid the broker’s fee, many rental sites are now advertising “no-fee” apartments. So does this mean there’s no money in it for the broker? Not always. It’s just a case of who pays it. Most rental apartments advertised as “no-fee” are represented by a broker unless listed by the in-house marketing team in a rental building. They’re not working for free. The landlord merely has offered to pay the brokers fee out of their pocket. Before you think how great that sounds, it’s worth noting that you will bear the cost of this in the form of higher rent.

The only reason a landlord might do this is that they’re having trouble finding a tenant. They’re losing money every month the apartment sits empty. When you consider that the average cost of a Manhattan apartment is $4,041, that can be a significant loss if it sits empty for months. As such, by agreeing to pay the broker’s fee, they can fill the unit much faster. However, in high demand markets with low inventory, landlords will usually have no trouble finding another tenant quickly. That tends to put highly coveted neighborhoods in Manhattan and Brooklyn out of the no-fee game.

Cons of choosing a no-fee apartment

Getting a rental apartment with no broker’s fee attached sounds like a great deal. That’s the clear advantage of a no-fee apartment. But as with everything, there will be a catch. There are usually good reasons why a broker is willing to pay the brokers fee. And contacting the landlord directly presents a few difficulties and can lead to some disadvantages.

The rent may be higher – No-fee rental apartments typically have higher rents than properties with fees. The landlord does this to cover the cost of the broker’s fee or direct marketing expenses.
It might be in bad shape – No-fee rental apartments are often in poor condition. Being a rental, there will likely be some wear and tear from previous tenants. Having no-fee attached is how the landlord hopes to attract tenants despite the poor condition. Exceptions to this are Related and Glenwood buildings though still not as good as new condos.
You won’t have access to the best apartments – In NYC, the best apartments are always listed by brokers. This is because they are in Condo and co-op buildings. Unless you’ve got a credit score of over 700, have at least two years of tax returns and little to no debt, you’re better off going with a broker. They’ll be able to negotiate better on your behalf.
You need to do all the legwork yourself – Without a broker to do it for you; you’ll have to spend time going out to each apartment you find and inspect it yourself. Most people in New York don’t have time for this. Especially when you’re a grad student that hasn’t yet arrived in the city. You’ll also need to negotiate for the lease and may end up with terms that less than appealing. A broker can devote themselves full-time to the search and know how to negotiate to get you the most favorable lease.

Final thoughts

Going with the no-fee option could end up saving you some money, but it could also mean spending more. It’s certainly a doable option, and there are plenty of websites available to help you find an apartment on your own. Craigslist would be ill-advised as there are scams to watch out. Although far from perfect, the sites mentioned below are the best options. Just know that you’ll need to do all the hard work yourself, and you could end up with a less than a stellar apartment. Also, pro tip, avoid like the plague any listings that don’t include photos.

You’ll find a full list below of management companies that have no-fee apartments. Contact them and see what they have for your budget. You can always do some searching on your own and then contact a broker to see what they can offer you. Chances are they’ll find you a better apartment with a lower rent. Remember, as with everything else; you get what you pay for in NYC real estate.

NO-FEE – Websites

StreetEasy
Craigslist
Listings Project
Naked Apartments
Rent Hop
Zumper

NO-FEE – Property Management Companies
A

Abington Properties (15 buildings managed)
A.D. Real Estate Investors, Inc (23 buildings managed)
Aimco (59 buildings managed)
Albanese Organization, Inc (12 buildings managed)
Algin Management (22 buildings managed)
Applied Development Company (15 buildings managed)
ATA Enterprises (18 buildings managed)

B

Caiola Real Estate Group (6 buildings managed)
Bettina Equities (40 buildings managed)
Big Apple Management, LLC (26 buildings managed)
Bozzuto Management (28 buildings managed)
Bridgeline (6 buildings managed)
Broad Street Development (9 buildings managed)
Broadwall Management Corporation (9 buildings managed)
Brodsky Organization (61 buildings managed)

C

C&C Apartment Management, LLC (89 buildings managed)
Carlyle Property Management (5 buildings managed)
Clipper Equity (47 buildings managed)
CoSo Apartments (98 buildings managed)

D

Dermot Realty Mgmt (10 buildings managed)

E

Eberhart Brothers (59 buildings managed)
Equity Residential (36 buildings managed)

F

Fetner (5 buildings managed)

G

Gatsby Enterprises, LLC (35 buildings managed)
Gilar Realty (4 buildings managed)
Glenwood Management (27 buildings managed)
Goldfarb Properties (45 buildings managed)
Gotham Organization, Inc. (4 buildings managed)
Greystar (14 buildings managed)

H

Hakimian (12 buildings managed)
Halcyon Management Group (10 buildings managed)
Harlington Realty (12 buildings managed)

I

IBEC Living (42 buildings managed)
Icon Realty Management (90 buildings managed)

J

Jack Resnick & Sons, Inc (3 buildings managed)
Jakobson Properties (38 buildings managed)
JR Properties (21 buildings managed)

K

K&R Realty Management, Inc (49 buildings managed)
Kings & Queens (63 buildings managed)

L

Landmark Resources LLC (26 buildings managed)
LC Lemle Real Estate (21 buildings managed)
Lisa Management (11 buildings managed)

M

M & R Management (10 buildings managed)
Manhattan Skyline (15 buildings managed)
Marquis Apartments (3 buildings managed)
MDays Realty LLC (14 buildings managed)
Milford Management (13 buildings managed)
Mossanen (3 buildings managed)

N

Newport Management (14 buildings managed)

O

Ogden CAP Properties (5 buildings managed)
Olnick Organization (15 buildings managed)

p

Page Management (10 buildings managed)
Parkchester Preservation. Mgmt (152 buildings managed)
Pine Management (35 buildings managed)

R

Related (22 buildings)
Rockrose Development LLC (10 buildings managed)
Rose Associates (41 buildings managed)
Roseland Property Company (10 buildings managed)

S

S & H Equities (16 buildings managed)
Shalimar Management Corp. (7 buildings managed)
Silverstein Properties Inc (3 buildings managed)
Sky Management (30 buildings managed)
Skyline Developers (3 buildings managed)
Solar Realty Management (22 buildings managed)
Solow Management Corporation (7 buildings managed)
Stellar Management (75 buildings managed)
Stone Street Properties (45 buildings managed)
Stonehenge NYC (17 buildings managed)
S.W. Management / City & Suburban (111 buildings managed)
S.W. Queens Mezzanine (32 buildings managed)

T

Parker New York (5 buildings managed)
The Moinian Group (7 buildings managed)
TF Cornerstone Inc. (19 buildings managed)
Time Equities (27 buildings managed)
Tri-State Management (6 buildings managed)
Tryax Realty Management (34 buildings managed)
Two Trees Management (19 buildings managed)



U

UDR (9 buildings managed)
UES Leasing (2 buildings managed)

W

WAM Partners (William Moses Co.) (4 buildings managed)
Westminster CL (61 buildings managed)
Windsor Communities (4 buildings managed)

Y

Yuco Management Inc (28 buildings managed)

The post No-Fee Apartments: How To Rent No-Fee in NYC appeared first on ELIKA Real Estate.

How To and Should you Rent a No-Fee Apartment in NYC?

No-Fee Rental Apartments Uncovered

New arrivals in NYC are quickly overcome by how complicated the housing market is. There is many twists and turns to it, even if you’re only looking for a rental apartment. Chief among these is the difference between no-fee apartments and fee apartments. Any quick search on listing websites will turn up apartments for rent listed as “no-fee” while others will make no mention of a fee at all. These are the two types of rentals available in NYC, ones with a broker’s fee and ones without. If you want to rent an apartment in NYC, you’ll need to decide between the two. Just don’t be too quick to assume the no-fee choice is the best one. As you’ll soon see, there are some downsides to it.

What is a fee?

In the real estate rental world, a “fee” is the cash amount you pay to the broker that helped you find an apartment. This is how brokers make their living and what motivates them to find you an apartment once you’ve hired them immediately. In NYC, the broker’s fee can be up to 15% of the full-years lease. This might seem like an easy gig for the broker. All they’re doing is collecting a nice fee for finding a rental apartment you could have found on your own, right? Well, not exactly.

A real estate agent can devote themselves full-time to the task of finding a rental apartment for you. They’ll have access to exclusive listing websites, have contacts on apartments that haven’t been listed yet and be able to do all the legwork and hard negotiating. If you don’t have time to search on your own, they make for the easiest choice.

What does no-fee mean?

To attract renters seeking to avoid the broker’s fee, many rental sites are now advertising “no-fee” apartments. So does this mean there’s no money in it for the broker? Not always. It’s just a case of why pays it. Some landlords will offer to pay the brokers fee out of their pocket. The only reason a landlord might do this is that they’re having trouble finding a tenant. They’re losing money every month the apartment sits empty. When you consider that the average cost of a Manhattan apartment is $4,041, that can be a huge loss if it sits empty for months. As such, by agreeing to pay the broker’s fee, they can fill the unit much faster. Rental apartments where the landlord agrees to pay the brokers fee will be clearly stated as “no-fee.”

However, in high demand markets with low inventory, landlords will usually have no trouble finding another tenant quickly. That tends to put highly coveted neighborhoods in Manhattan and Brooklyn out of the no-fee game.

Cons of choosing a no-fee apartment

Getting a rental apartment with no broker’s fee attached sounds like a great deal. That’s the clear advantage of a no-fee apartment. But as with everything, there will be a catch. There are usually good reasons why a broker is willing to pay the brokers fee. And contacting the landlord directly presents a few difficulties and can lead to some disadvantages.

The rent may be higher – No-fee rental apartments typically have higher rents than apartments with fees. The landlord does this to cover the cost of the broker’s fee.
They’re usually unfurnished – The landlord must be facing some tough competition from other rentals if they can’t find a tenant on their own. This might be because the apartment is poorly furnished or not furnished at all.
It might be in bad shape – No-fee rental apartments are often in poor condition. Being a rental, there will likely be some wear and tear from previous tenants. Having no-fee attached is how the landlord hopes to attract tenants despite the poor condition.
You need to do all the legwork yourself – Without a broker to do it for you; you’ll have to spend time going out to each apartment you find and inspect it yourself. Most people in New York don’t have time for this. Especially when you’re a grad student that hasn’t yet arrived in the city. You’ll also need to negotiate for the lease and may end up with terms that less than appealing. A broker can devote themselves full-time to the search and know how to negotiate to get you the most favorable lease.

Final thoughts

Going with the no-fee option could end up saving you some money, but it could also mean spending more. It’s certainly a doable option, and there are plenty of websites available to help you find an apartment on your own. Craigslist would be ill-advised as there are scams to watch out. Although far from perfect the websites included below are the best options. Just know that you’ll need to do all the hard work yourself, and you could end up with a less than a stellar apartment. Also, pro tip, avoid like the plague any listings that don’t include photos.

You’ll find a full list below of management companies that have no-fee apartments. Contact them and see what they have for your budget. You can always do some searching on your own and then contact a broker to see what they can offer you. Chances are they’ll find you a better apartment with a lower rent. Remember, as with everything else; you get what you pay for in NYC real estate.

NO-FEE – Websites

StreetEasy
Craigslist
Listings Project
Naked Apartments
Rent Hop
Zumper

NO-FEE – Property Management Companies
A

Abington Properties (15 buildings managed)
A.D. Real Estate Investors, Inc (23 buildings managed)
Aimco (59 buildings managed)
Albanese Organization, Inc (12 buildings managed)
Algin Management (22 buildings managed)
Applied Development Company (15 buildings managed)
ATA Enterprises (18 buildings managed)

B

Caiola Real Estate Group (6 buildings managed)
Bettina Equities (40 buildings managed)
Big Apple Management, LLC (26 buildings managed)
Bozzuto Management (28 buildings managed)
Bridgeline (6 buildings managed)
Broad Street Development (9 buildings managed)
Broadwall Management Corporation (9 buildings managed)
Brodsky Organization (61 buildings managed)

C

C&C Apartment Management, LLC (89 buildings managed)
Carlyle Property Management (5 buildings managed)
Clipper Equity (47 buildings managed)
CoSo Apartments (98 buildings managed)

D

Dermot Realty Mgmt (10 buildings managed)

E

Eberhart Brothers (59 buildings managed)
Equity Residential (36 buildings managed)

F

Fetner (5 buildings managed)

G

Gatsby Enterprises, LLC (35 buildings managed)
Gilar Realty (4 buildings managed)
Glenwood Management (27 buildings managed)
Goldfarb Properties (45 buildings managed)
Gotham Organization, Inc. (4 buildings managed)
Greystar (14 buildings managed)

H

Hakimian (12 buildings managed)
Halcyon Management Group (10 buildings managed)
Harlington Realty (12 buildings managed)

I

IBEC Living (42 buildings managed)
Icon Realty Management (90 buildings managed)

J

Jack Resnick & Sons, Inc (3 buildings managed)
Jakobson Properties (38 buildings managed)
JR Properties (21 buildings managed)

K

K&R Realty Management, Inc (49 buildings managed)
Kings & Queens (63 buildings managed)

L

Landmark Resources LLC (26 buildings managed)
LC Lemle Real Estate (21 buildings managed)
Lisa Management (11 buildings managed)

M

M & R Management (10 buildings managed)
Manhattan Skyline (15 buildings managed)
Marquis Apartments (3 buildings managed)
MDays Realty LLC (14 buildings managed)
Milford Management (13 buildings managed)
Mossanen (3 buildings managed)

N

Newport Management (14 buildings managed)

O

Ogden CAP Properties (5 buildings managed)
Olnick Organization (15 buildings managed)

p

Page Management (10 buildings managed)
Parkchester Preservation. Mgmt (152 buildings managed)
Pine Management (35 buildings managed)

R

Related (22 buildings)
Rockrose Development LLC (10 buildings managed)
Rose Associates (41 buildings managed)
Roseland Property Company (10 buildings managed)

S

S & H Equities (16 buildings managed)
Shalimar Management Corp. (7 buildings managed)
Silverstein Properties Inc (3 buildings managed)
Sky Management (30 buildings managed)
Skyline Developers (3 buildings managed)
Solar Realty Management (22 buildings managed)
Solow Management Corporation (7 buildings managed)
Stellar Management (75 buildings managed)
Stone Street Properties (45 buildings managed)
Stonehenge NYC (17 buildings managed)
S.W. Management / City & Suburban (111 buildings managed)
S.W. Queens Mezzanine (32 buildings managed)

T

Parker New York (5 buildings managed)
The Moinian Group (7 buildings managed)
TF Cornerstone Inc. (19 buildings managed)
Time Equities (27 buildings managed)
Tri-State Management (6 buildings managed)
Tryax Realty Management (34 buildings managed)
Two Trees Management (19 buildings managed)



U

UDR (9 buildings managed)
UES Leasing (2 buildings managed)

W

WAM Partners (William Moses Co.) (4 buildings managed)
Westminster CL (61 buildings managed)
Windsor Communities (4 buildings managed)

Y

Yuco Management Inc (28 buildings managed)

The post How To and Should you Rent a No-Fee Apartment in NYC? appeared first on ELIKA Real Estate.

Section 8 Vouchers: What are they and How to Find Buildings that Accept them?

New York is an expensive city to live in. The average rent for a two-bedroom apartment in Manhattan is $3,895. That’s roughly equal to the average monthly income of the typical American worker. If you’re one of many people in the city struggling to keep up with rent, you can take heart with knowing that there is a way to make it easier. Enter the Housing Choice Voucher program, also known as Section 8. This federally funded program is designed to help close the gap between affordability and people’s income. Read on to see if you qualify and how it works.

What is Section 8 housing?

First introduced in 1937, Section 8 is a program that provides vouchers to help low-income renters pay part of their monthly rental fees. Rental properties that accept the Housing Choice Voucher program are known as Section 8 housing. Those on the program may receive either “portable” vouchers, known as Housing Choice Vouchers, which allow them to stay in privately owned buildings. Or they might be in a project-based program in which vouchers are only available for specific properties. Once approved, you will receive your vouchers you can begin looking for section 8 housing.

How does it work?

City, state and federal agencies administer the program. Each with their own rules and application process. These public housing agencies (PHA) receive money from the federal government to give out housing vouchers.

Depending on the PHA, you’ll have a specified number of days to find a unit that meets your requirements. GoSection8 provides a list of apartments available through housing vouchers. You will need to locate a unit within the time required. Otherwise, the voucher will expire, and you won’t be subsidized. The rental must also meet the health and safety standards set by the federal government and PHA.

Factors that influence how much you get include:

Number of dependents, disabilities, and previous military service
All income earned by all family members

On average, Section 8 subsidizes 70% of your rent, leaving you responsible for the remaining 30%. Should you choose to rent a unit with a higher rent than the payment standard, you’ll need to make up the difference. For instance, if you have a monthly income of $1,000 and your rent is $1,300, you’ll pay $300 a month while the PHA will pay the remaining $1,000 to your landlord. There are some PHA programs you can apply for. Unfortunately, most are currently at full capacity only available to those already on housing vouchers. 

NYCHA

The largest Section 8 program in the country is the New York City Housing Authority. Through them, 204,000 Section 8 renters are living in 86,200 apartments throughout the five boroughs. They provide both Housing Choice Vouchers and project-based programs. At present, the income limit for a single person $33,400 while for a family of four it’s $47,700.

However, since 2009 the program has stopped accepting new applications and only deals with those already on the program.

Applicants must go through an annual re-certification process in which they must report their income and assets. You will have to report any changes within 30-days. Also, any failure to allow periodic NYCHA inspections or follow lease rules can lead to being kicked from the program.

HPH

Section 8 is also available through the Department of Housing Preservation and Development. Over 9,000 landlords participate in the program through 39,000 households throughout the city. Those who are eligible must have an income below 50% of the area median income. However, the program is not available to the general public. The only way you can access it is through referrals from other programs. For instance, Emergency Housing services. Both Housing Choice vouchers and project-based programs are available. To see if you are eligible you must apply directly to the development. You can find a list of HPH developments across the city here.

HUD

A project-based program is available through the federal Department of Housing and Urban Development. Like HPH, renters must apply to each development. You can find a list of subsidized housing through HUD here. 

DHCR

The Division of Housing and Community Renewal provides a housing choice voucher program. Unfortunately, like the NYCHA, the waiting list is closed due to the number of applicants and they have no plans to reopen it soon. One immediate difference between the DHCR and other programs is that they provide current voucher holders with the opportunity for homeownership. Those who qualify must have been on housing vouchers for at least a year and have never owned a house before. Participants must attend a homebuyer education class and be pre-approved for a mortgage before they can receive assistance.

Summary

As you can see, the Section 8 program is highly competitive with long waiting lists even once you get into the program. There may still be a certain stigma attached to Section 8 housing, but it has long been a benefit for people struggling to meet their rental payments. For those seeking to move up in life, it can offer a way to decrees stress, save money and work for a better future.

The post Section 8 Vouchers: What are they and How to Find Buildings that Accept them? appeared first on ELIKA Real Estate.

The Buyer’s Market is Here: How to Make the Most of It

A buyer’s market is when oversupply lacks demand, giving buyers a definite advantage over sellers in price negotiations. For prospective buyers in NYC, now is one of the best times to buy in recent history. Housing inventory is at a seven-year high and looks set to reach new records in October as sellers come off the summer slowdown.

As units have begun to pile up, sellers and developers have been ramping up discounts and incentives to entice buyers. All this presents a perfect opportunity for new buyers. If you want to take full advantage of the situation, here’s how to make the most of a buyer’s market.

Know the local housing market

How the housing market looks across the city will differ to how it seems on a micro level. If you know what neighborhood you wish to make a home in, then start researching it to see how things look on a local level. One block could be a buyer’s market thanks to a glut of available price reduced properties. While another could be more competitive due to a better school district or has better light. The better you know about the hyperlocal market, the greater your position in negotiations.

Talk with your buyer’s agent about the borough and specific neighborhood(s) or street(s) you’re interested in. They can give you a host of information that will tell you whether it’s a buyer’s market or not. Keep a lookout for these factors:

Inventory Glut – If there’s a high number of available properties for sale you can afford to take your time. Be sure to contrast this with the housing inventory for the past year to see how it has changed.
Slow Appreciation – As you look at the properties on offer, take note of how their prices have changed over time. If property prices have stagnated or gone down then that’s a good indication you’re in a buyer’s market and will have leverage in negotiations .
Days on the Market – How long have the properties in your area(s) been listed for? Those that have languished on it beyond the average days on the market are more likely to accept lower offers. The sellers need to compete with new properties coming onto the market.
Selling Prices – Make sure your buyer’s agent shows you not only the listing prices for homes but also what they’re closing for. If you can find multiple comparable properties that have sold or closed for below market value, that tells you the market is right for buyers.

Get a mortgage pre-approval

In a buyer’s market, sellers have a lot at stake. The last thing they want to do is enter into a deal with someone that can’t follow through. They’re already unhappy about having to lower their asking price and If there’s a mortgage contingency, they’ll feel even less sure of accepting a low-ball offer.

You can make them more willing to accept a lower offer if you can show them straight away that you’re in a position to close the deal. Getting pre-approved for a mortgage in advance is the best way to do this. Just don’t get this confused with mortgage pre-qualification which is just a lenders speculation of what you’ll be approved for.

Cash is King

Unlike the uncertainty in the cash of a financed buyer, if you have the means of paying cash for a property you will always, aside from a co-op, have the upper hand. Make sure to play it right though, many cash buyers believe they are the only cash buyers, which is far from the case in New York. Many cash buyers also play hardball and yes this strategy can and does work but more often than not people would prefer to deal with people they like. In the case of a co-op it is not always about the money but a combination of likability and financial discipline.

If submitting a cash offer you can afford to submit a lower offer than a financed buyer but don’t overdo it. If you are a shark looking to feed, you’ll eventually find a fish to eat. But if you would like a particular home then a balanced approach is the best method.

Make an offer that’s to your advantage

A smart buyer shouldn’t just focus on price; there are other advantages you can gain in a buyer’s market. A seller whose property has been on the market for some time will be more willing to accept an offer that’s more in the buyer’s favor if it means securing a deal.

For instance, make an offer contingent upon the property appraising at a specific contract price. Ask for a reasonable period to conduct due diligence and home inspection. Perhaps ask the sellers pay some of the closing costs. Play up your ability to negotiate, and you could come away with something other than a reduced price.

Steer clear of Lemons even if cheap

A great building in a great location is a great place to start but keep in mind not all apartments in the particular building would be worth buying. Just because something is cheap does not guarantee it is a great deal. Value is not always about spending less but more about what you get for the dollar.

The post The Buyer’s Market is Here: How to Make the Most of It appeared first on ELIKA Real Estate.