Gea Elika's Blog, page 148

Where to Find a Summer Adventure in NYC – and Nearby

Whether you are seeking a totally unique experience, an urban adventure, or just want some local recreation, you can find plenty in NYC and close by.

Swimming

If you don’t happen to have a pool in your apartment complex, the next best thing is to go to one of the many free outdoor pools in NYC. There is a bounty of these sporting baths in NYC, including several in every borough.

You can find spots to swim indoors, too, if that’s more your style. For a fee, you can swim inside at your nearby YMCA, the Manhattan JCC, Asphalt Green, as well as at some NYC indoor recreation centers.

 

Shinya Suzuki/Flickr

 

Sunning

If sun and sand are more your thing than chlorine and cement, head to one of the many beaches in and around NYC.

Jacob Riis is a favorite among many urbanites. Located in Rockaway, Queens with an Art Deco bathhouse, food stand and a putt-putt golf course, this historic beach on the Atlantic Ocean has something for everyone.

Everyone’s heard of Coney Island, and while the boardwalk is full of tourists, the beach folks are mostly locals. Grab your umbrella, beach chair, and a picnic lunch and spend the day at Coney, located at the end of the D, F, N and Q subway lines in Brooklyn.

Up in the Air

Want to throw yourself off a platform 25 feet in the air? Hudson River Park has an outdoor trapeze school located at Pier 40 and West Houston Street, which runs April through October.

Float along the sky in the basket of a hot air balloon in the Adirondacks. There are plenty of hot air balloon companies in upstate New York vying for your business. Read this guide for the scoop on this type of aerial adventure.

 

Garrett Heath/Flickr

 

Happy Trails

If you want to take a hike, head over to the Palisade Interstate Park in New Jersey. Sitting on the western shore of the Hudson River, the Palisades has the topography for various activities including hiking trails, a nature sanctuary, boat basins, ski trails, uplands, and cliffs.

Meanwhile, the Shawangunk Mountain Region offers 761 miles of trails in the Blue Mountains of Pennsylvania and Kittatinny Mountain in New Jersey. In New York, the “Gunks” reach from the New York-New Jersey line to Rosendale, NY.

If you want a hike, but prefer to stay in NYC, check out some of the best local hiking trails at the Bronx River Greenway, Jamaica Bay Wildlife Refuge, and elsewhere. Additionally, Central Park is a popular place for family-friendly hiking. Find the trails in the North Woods for some amazing sights hidden from view in the park proper.

Urban Adventure

The Riverbank State Park is a public recreational facility high above the Hudson River in Harlem. Riverbank offers a broad array of recreational, athletic and cultural experiences for all age ranges. Riverbank boasts an Olympic-size pool, a covered ice skating rink that doubles as a roller-skating rink in the summer, an 800-seat cultural theater, a 2,500-seat athletic complex complete with a fitness room, and a 150-seat restaurant, Sofrito On the Hudson.

For a completely different sort of adventure, “Wildman” Steve Brill guides those interested in foraging wild plants and wild mushrooms. He gives tours in Central Park in Manhattan, Prospect Park in Brooklyn, Forest Park in Queens, Inwood Hill Park in upper Manhattan, and other spots in the Tri-State area.

Indoor Sports

Seeking the ultimate indoor playground? Try Chelsea Piers. This sports and entertainment complex sits on 28 acres along the Hudson River between 17th and 23rd Streets and has a vast array of sporting options.

Like to climb? Brooklyn Boulders is a great spot with hybrid rock climbing facilities located in Boerum Hill.

For extreme indoor sports including escape rooms, archery tag, paintball, and laser tag, try Indoor Extreme Sports in Long Island City, just one stop from Grand Central Station on the 7 train.

Whatever adventure or sport you fancy, you can find it nearby. Have fun and play safe!

The post Where to Find a Summer Adventure in NYC – and Nearby appeared first on - Elika Real Estate.

How is a Buyer’s Agent Paid by the Buyer or Seller?

Many real estate buyers do not feel having his/her own agent matters. After all, the buyer’s agent receives a commission, much the same way as a traditional seller’s agent is paid. This does not tell the whole story, however. We would like to clear up any misconceptions regarding compensation and assure you that an exclusive buyer’s agent owes a fiduciary duty only to the buyer, representing his/her best interests.

More than meets the eye

While a buyer’s agent receives a commission, as with any other agent, this is built into the purchase price. When the seller is discussing price with the listing agent/company, he/she is factoring in the 4%-6% sales commission. As a buyer, you do not pay any extra fees. What does this really mean? You are paying the commission regardless, whether or not you choose to have your own representation.

 

Image by BriYYZ /Flickr

 

How can this be so? A seller negotiates a commission with the listing agent, who receives half the commission. The other half is paid to the party that brings in the buyer. If this is the same agent, he or she keeps the entire commission. Obviously, the agent has an incentive to sell his/her listings. However, under The Real Estate Board of New York (REBNY) bylaws, cannot refuse to submit an offer from a buyer with his/her own representation. In fact, approx. 90% of the sales transactions settled in New York City involve an agent representing each side.  If a colleague of the listing agent sells the apartment, the brokerage firm gets the whole fee. It is important to understand that if you use a buyer’s agent within the same dual agency company as the listing agent, the buyer’s agent also owes a fiduciary duty to the seller. This is unlike using an exclusive buyers agent in a single agency real estate firm.

“Would you use the same attorney as your spouse in a divorce and pay for it?’’ Gea Elika said.
Click To Tweet

While the same incentive remains for a buyer’s agent, whose commission also increases with sales price, he/she follows a different standard. A buyer’s agent has a fiduciary duty to his/her client at all times. Members of the National Association of Exclusive Buyer Agents (NAEBA) are required to follow a strict Code of Ethics and Standards of Practice, which include a duty to act on behalf of the buyer/client with due diligence, professionalism, and reasonable care, along with a duty of undivided loyalty. In other words, a buyer’s agent is legally bound to work for your interest and pass information that helps you decide on a property best poised to outperform and to negotiate the best price. A seasoned exclusive buyers agent performs a comprehensive market analysis much like an analyst, which traditional agents do not perform to the same degree.

At Elika Associates, we value our reputation and would rather expand our business with satisfied client relationships that refer other people over the long term.

How about I represent myself?

Readers are probably asking themselves, what happens if I merely represent myself? That way, I can avoid paying a 2%-3% commission and save on the purchase price. However, it does not work that way. In actuality, the listing agent just keeps the entire commission, with none of the savings passed on to you. This is because it is not solely the listing agent but the real estate firm for whom they work that is bound to the seller.

You may also think the seller’s agent will help you since he/she does not have to split the commission with another agent. This is also false. The seller’s listing agent contractually owes a fiduciary duty to his/her client, not to you, the buyer. This typically involves trying to obtain the highest price for the seller with little to no disclosure. A listing agent’s job is an important one, which is to sell a property. An exclusive buyer’s agent role is to be unbiased and provide full disclosure.

Watch the discount buyers agents

There are buyer’s agents that offer to rebate part of the fee to you. This sounds nice, but you should understand it might not be once you dig a little deeper. You should ask why an agent is offering to discount his/her fees. Perhaps the agent is inexperienced and looking to drum up business. Worse, it may be a veteran agent whose book of business is not at a level he/she wants for some reason.

You also need to ask what level of service you are going to receive. Do they just visit properties with you or provide a full scope of services as seasoned exclusive buyers agents perform? This includes a comparable market analysis along with the experience and knowledge to provide expert advice. We wrote a blog post to help you ask some important questions before hiring a buyer’s agent. Going the discount route may cause you to miss out on the experience of a strong, venerable buyer’s agent.

You may only purchase one home in your lifetime. You should go with proper representation, not the cheapest. Buying the right home for the right price is the prerequisite for longer term capital appreciation and building wealth.

Don’t leave home without one

Since you are paying the same commission regardless, doesn’t it make sense to have your own representative that is legally bound to you? In fact, the New York State Department of State Counsel’s Office states that homebuyers have the right to refuse a dual agency and can choose a broker that represents his/her interests with undivided loyalty. On a federal level, the U.S. Department of Housing and Urban Development (HUD) recommends using an exclusive buyer’s agent.

“An exclusive buyer's agent is 100% Loyal 100% of the time’’ Elika said.
Click To Tweet

At Elika Associates, we like to compare not having your own representative to using your spouse’s attorney in a divorce and paying for both sides. You would hire your own lawyer to represent your best interests; similarly, you should have your own real estate, agent.

Related Articles

8 Reasons You Should Work with an Exclusive Buyer’s Agent
Understanding Dual Agency


Learn Why You Need a Real Estate Buyer’s Agent
Passing the Ten Commandments from a Buyer’s Agent
Questions to Ask Before Hiring a Buyer’s Agent
Do Buyers Need a New York City Real Estate Buyer’s Agent

 



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New York State Disclosure Form for Buyer and Seller

The post How is a Buyer’s Agent Paid by the Buyer or Seller? appeared first on - Elika Real Estate.

Is a NYC Real Estate Buyer’s Agent Paid by the Buyer or Seller?

Many real estate buyers do not feel having his/her own agent matters. After all, the buyer’s agent receives a commission, much the same way as a traditional seller’s agent is paid. This does not tell the whole story, however. We would like to clear up any misconceptions regarding compensation and assure you that an exclusive buyer’s agent owes a fiduciary duty only to the buyer, representing his/her best interests.

More than meets the eye

While a buyer’s agent receives a commission, as with any other agent, this is built into the purchase price. When the seller is discussing price with the listing agent/company, he/she is factoring in the 4%-6% sales commission. As a buyer, you do not pay any extra fees. What does this really mean? You are paying the commission regardless, whether or not you choose to have your own representation.

 

Image by Marcela /Flickr

 

How can this be so? A seller negotiates a commission with the listing agent, who receives half the commission. The other half is paid to the party that brings in the buyer. If this is the same agent, he or she keeps the entire commission. Obviously, the agent has an incentive to sell his/her listings. However, under The Real Estate Board of New York (REBNY) bylaws, cannot refuse to submit an offer from a buyer with his/her own representation. In fact, approx. 90% of the sales transactions settled in New York City involve an agent representing each side.  If a colleague of the listing agent sells the apartment, the brokerage firm gets the whole fee. It is important to understand that if you use a buyer’s agent within the same dual agency company as the listing agent, the buyer’s agent also owes a fiduciary duty to the seller. This is unlike using an exclusive buyers agent in a single agency real estate firm.

“Would you use the same attorney as your spouse in a divorce and pay for it?’’ Gea Elika said.
Click To Tweet

 

While the same incentive remains for a buyer’s agent, whose commission also increases with sales price, he/she follows a different standard. A buyer’s agent has a fiduciary duty to his/her client at all times. Members of the National Association of Exclusive Buyer Agents (NAEBA) are required to follow a strict Code of Ethics and Standards of Practice, which include a duty to act on behalf of the buyer/client with due diligence, professionalism, and reasonable care, along with a duty of undivided loyalty. In other words, a buyer’s agent is legally bound to work for your interest and pass information that helps you decide on a property best poised to outperform and to negotiate the best price. A seasoned exclusive buyers agent performs a comprehensive market analysis much like an analyst, which traditional agents do not perform to the same degree.

At Elika Associates, we value our reputation and would rather expand our business with satisfied client relationships that refer other people over the long term.

How about I represent myself?

Readers are probably asking themselves, what happens if I merely represent myself? That way, I can avoid paying a 2%-3% commission and save on the purchase price. However, it does not work that way. In actuality, the listing agent just keeps the entire commission, with none of the savings passed on to you. This is because it is not solely the listing agent but the real estate firm for whom they work that is bound to the seller.

You may also think the seller’s agent will help you since he/she does not have to split the commission with another agent. This is also false. The seller’s listing agent contractually owes a fiduciary duty to his/her client, not to you, the buyer. This typically involves trying to obtain the highest price for the seller with little to no disclosure. A listing agent’s job is an important one, which is to sell a property. An exclusive buyer’s agent role is to be unbiased and provide full disclosure.

Watch the discount buyers agents

There are buyer’s agents that offer to rebate part of the fee to you. This sounds nice, but you should understand it might not be once you dig a little deeper. You should ask why an agent is offering to discount his/her fees. Perhaps the agent is inexperienced and looking to drum up business. Worse, it may be a veteran agent whose book of business is not at a level he/she wants for some reason.

You also need to ask what level of service you are going to receive. Do they just visit properties with you or provide a full scope of services as seasoned exclusive buyers agents perform? This includes a comparable market analysis along with the experience and knowledge to provide expert advice. We wrote a blog post to help you ask some important questions before hiring a buyer’s agent. Going the discount route may cause you to miss out on the experience of a strong, venerable buyer’s agent.

You may only purchase one home in your lifetime. You should go with proper representation, not the cheapest. Buying the right home for the right price is the prerequisite for longer term capital appreciation and building wealth.

Don’t leave home without one

Since you are paying the same commission regardless, doesn’t it make sense to have your own representative that is legally bound to you? In fact, the New York State Department of State Counsel’s Office states that homebuyers have the right to refuse a dual agency and can choose a broker that represents his/her interests with undivided loyalty. On a federal level, the U.S. Department of Housing and Urban Development (HUD) recommends using an exclusive buyer’s agent.

At Elika Associates, we like to compare not having your own representative to using your spouse’s attorney in a divorce and paying for both sides. You would hire your own lawyer to represent your best interests; similarly, you should have your own real estate, agent.

Related Articles

8 Reasons You Should Work with an Exclusive Buyer’s Agent
Understanding Dual Agency


Learn Why You Need a Real Estate Buyer’s Agent
Passing the Ten Commandments from a Buyer’s Agent
Questions to Ask Before Hiring a Buyer’s Agent
Do Buyers Need a New York City Real Estate Buyer’s Agent



New York State Disclosure Form for Buyer and Seller

 

The post Is a NYC Real Estate Buyer’s Agent Paid by the Buyer or Seller? appeared first on - Elika Real Estate.

How to Prepare a REBNY Financial Statement Form

Getting through a co-op board interview can be a rigorous and stressful experience with success far from guaranteed. Part of your preparation involves filling out an REBNY financial statement. Virtually all co-op sales involve presenting these financials as part of the package you present. Remember, the board often has more stringent financial requirements than your lender. Therefore, a pre-approved financing letter is only the first step. The REBNY financial statement is an important part of the process, and you need to understand how to fill it out the form. View PDF form below or Download Excel File

What is an REBNY financial statement?

The Real Estate Board of New York (REBNY) is a trade association. The organization provides a financial statement that is widely used by listing real estate agents and sellers to easily compare the financial strength of the potential buyers.

The form is only two pages, but there is a lot of information to provide. There are two columns, the applicant and co-applicant (such as your spouse). It may feel invasive, but sellers do not want to entertain an offer that is going to be rejected by the board. For its part, the board wants to ensure that you have the proper assets and income to afford the unit and not run into any financial trouble down that road.

The Assets

The first section requires you to list your assets. The board carefully examines your liquidity. Boards have different requirements, but many want to see that you not only have the down payment and closing costs covered but enough liquid assets to cover your mortgage and maintenance fees for a period of time, such as one or two years.

The form starts with your most liquid assets, with cash in the bank and money market deposits the first two lines. These are pretty straightforward. Next up is the contract deposit.

You are asked about investments in bonds and stocks, with a schedule on page two where you are expected to provide details, such as the number of shares and description (e.g. 1,000 shares of Microsoft that have a marketable value of $66,000) for each security you own. This is easy for securities that readily trade on an exchange, such as a publicly listed equity. If you have other invests that are not as liquid, such as an investment in a private company, this is more challenging. If you have these types of investments, do your best to accurately depict its value.

In fact, you should do your best to accurately reflect the fair market value for several other asset categories, such as an investment in your own business (if applicable), and any real estate that you own (there is a separate schedule on page two to provide details). Retirement funds should be fairly straightforward, but do not forget to aggregate the total if you have more than one plan. These are not considered part of the liquid assets the board considers for the year or two of required reserves. For your own knowledge, if you need the funds and withdraw prior to reaching a certain age, there is a penalty and you will owe taxes on any gains.

After your offer is accepted, supporting statements such as bank and brokerage statements are going to be required to validate each entry.

Liabilities

Besides what you own, the board also wants to see what you owe. This section asks about your liabilities, which is relatively straightforward. This includes mortgage balances, real estate taxes, credit cards, and any other loans owed to banks or others.

Income & Expenses

The first two sections can be considered your personal balance sheet. Equally important, the board wants to see that you have the income to afford the co-op. This includes your wages and dividend/interest income.

The board can now access a very important ratio, debt/income. Lenders typically want to see the ratio of your income going to your housing expenses (e.g. mortgage, real estate taxes, maintenance, and homeowner’s insurance) at no more than 28%. The board may have more stringent requirements, with a 25% debt/income not uncommon.

Lastly, the form asks for your projected expenses. These are not your current expenses, but what you would pay if you owned that apartment. This means your maintenance fees, financing cost, and bank/auto loans. Obviously, this changes depending on the apartment you are bidding on, so this needs to be updated.

Moving forward

You may feel sharing personal information with strangers is too much. However, it is a standard process in buying a New York City co-op, and no offer should be submitted without a financial statement.

Assuming you have the financial wherewithal to purchase an apartment, the form can give you a leg up in the competitive process. An inferior offer may end up being the winning bid based on your finances and greater ability to pass the board’s muster.

REBNY Financial Statement Excel: Download

The post How to Prepare a REBNY Financial Statement Form appeared first on - Elika Real Estate.

How to Prepare a REBNY Financial Statement

Getting through a co-op board interview can be a rigorous and stressful experience with success far from guaranteed. Part of your preparation involves filling out an REBNY financial statement. Virtually all co-op sales involve presenting these financials as part of the package you present. Remember, the board often has more stringent financial requirements than your lender. Therefore, a pre-approved financing letter is only the first step. The REBNY financial statement is an important part of the process, and you need to understand how to fill it out the form. View PDF form below or Download Excel File

What is an REBNY financial statement?

The Real Estate Board of New York (REBNY) is a trade association. The organization provides a financial statement that is widely used by listing real estate agents and sellers to easily compare the financial strength of the potential buyers.

The form is only two pages, but there is a lot of information to provide. There are two columns, the applicant and co-applicant (such as your spouse). It may feel invasive, but sellers do not want to entertain an offer that is going to be rejected by the board. For its part, the board wants to ensure that you have the proper assets and income to afford the unit and not run into any financial trouble down that road.

The Assets

The first section requires you to list your assets. The board carefully examines your liquidity. Boards have different requirements, but many want to see that you not only have the down payment and closing costs covered but enough liquid assets to cover your mortgage and maintenance fees for a period of time, such as one or two years.

The form starts with your most liquid assets, with cash in the bank and money market deposits the first two lines. These are pretty straightforward. Next up is the contract deposit.

You are asked about investments in bonds and stocks, with a schedule on page two where you are expected to provide details, such as the number of shares and description (e.g. 1,000 shares of Microsoft that have a marketable value of $66,000) for each security you own. This is easy for securities that readily trade on an exchange, such as a publicly listed equity. If you have other invests that are not as liquid, such as an investment in a private company, this is more challenging. If you have these types of investments, do your best to accurately depict its value.

In fact, you should do your best to accurately reflect the fair market value for several other asset categories, such as an investment in your own business (if applicable), and any real estate that you own (there is a separate schedule on page two to provide details). Retirement funds should be fairly straightforward, but do not forget to aggregate the total if you have more than one plan. These are not considered part of the liquid assets the board considers for the year or two of required reserves. For your own knowledge, if you need the funds and withdraw prior to reaching a certain age, there is a penalty and you will owe taxes on any gains.

After your offer is accepted, supporting statements such as bank and brokerage statements are going to be required to validate each entry.

Liabilities

Besides what you own, the board also wants to see what you owe. This section asks about your liabilities, which is relatively straightforward. This includes mortgage balances, real estate taxes, credit cards, and any other loans owed to banks or others.

Income & Expenses

The first two sections can be considered your personal balance sheet. Equally important, the board wants to see that you have the income to afford the co-op. This includes your wages and dividend/interest income.

The board can now access a very important ratio, debt/income. Lenders typically want to see the ratio of your income going to your housing expenses (e.g. mortgage, real estate taxes, maintenance, and homeowner’s insurance) at no more than 28%. The board may have more stringent requirements, with a 25% debt/income not uncommon.

Lastly, the form asks for your projected expenses. These are not your current expenses, but what you would pay if you owned that apartment. This means your maintenance fees, financing cost, and bank/auto loans. Obviously, this changes depending on the apartment you are bidding on, so this needs to be updated.

Moving forward

You may feel sharing personal information with strangers is too much. However, it is a standard process in buying a New York City co-op, and no offer should be submitted without a financial statement.

Assuming you have the financial wherewithal to purchase an apartment, the form can give you a leg up in the competitive process. An inferior offer may end up being the winning bid based on your finances and greater ability to pass the board’s muster.

REBNY Financial Statement Excel: Download

The post How to Prepare a REBNY Financial Statement appeared first on - Elika Real Estate.

How to Find the Best NYC Real Estate Attorneys

Choosing a real estate attorney is an important decision you need to make when buying New York City real estate. He or she can help you navigate the difficult and often contentious real estate market. Besides a buyer’s agent who represents your best interests in a real estate transaction, a lawyer represents your legal and contractual rights. While you are not required to have one, it is certainly a wise choice to hire a local lawyer specializing in real estate.

Where to find a Real Estate Attorney?

Your agent is an excellent source for a recommendation. Combined with his or her colleagues, they have done many transactions over the years, and can confidently recommend a lawyer. By the way, a lawyer is not allowed to accept a referral fee from a real estate broker, which should raise your confidence that he/she is on your side since there are no outside incentives.

 

Image via Flickr

 

Take a referral from a friend with a grain of salt. Remember, individuals, are probably only going to buy or sell a home three or four times in a lifetime, at most. That means he or she has limited experience using a real estate attorney. Still, this is better than randomly picking a lawyer blindly from an advertisement or Yelp review. There are certainly plenty of lawyers advertising for your business. But you have better options than merely picking one from the Yellow Pages (if you are old school) or an Internet advertisement, however.

You are certainly welcome to interview the lawyer. You can ask about his/her experience and see if you are comfortable working with him/her. The Office of Court Administration allows you to check that the lawyer is licensed and in good standing.

What does the attorney do for their fees?

Your buyer’s agent helps you find the right property, advises you on the price to offer by running a comparative analysis and providing you information that you can use to your advantage, and he or she negotiates the final price with the seller’s agent. Once a price has been accepted, you have your inspection. At this point, your lawyer works with your agent.

In New York, the seller’s attorney prepares the contract’s first draft. Your attorney may add additional terms to a rider based on your needs and wants. He or she is also conducting due diligence, which takes on extra meaning in New York City condos, co-ops, and townhouses. Among other things, your lawyer should be checking to see if the building has any lawsuits, liens, seeing how significant improvements are handled, building permits, speaking to the property manager, and reviewing the building’s financial statements. You can do some of this work yourself, but it is highly recommended to have a trained lawyer looking too. Assuming there are no issues, both parties proceed with signing the contract.

At this point, your lawyer prepares for the closing. The attorney communicates with you to ensure you are providing the necessary information to obtain your mortgage. He or she is also preparing the breakdown of closing cost fees you will owe to the various parties at closing. At closing, he or she has the documents for you to sign in order for you to get the keys and disburses the funds.

Attorneys’ fees are reasonable

A typical attorney’s fee is in the $2,000-$3,000 range. This is part of your closing costs, but this is one fee that is well worth it.

The post How to Find the Best NYC Real Estate Attorneys appeared first on - Elika Real Estate.

How to Find a Great NYC Real Estate Attorney

Choosing a real estate attorney is an important decision you need to make when buying New York City real estate. He or she can help you navigate the difficult and often contentious real estate market. Besides a buyer’s agent who represents your best interests in a real estate transaction, a lawyer represents your legal and contractual rights. While you are not required to have one, it is certainly a wise choice to hire a local lawyer specializing in real estate.

Where to find a Real Estate Attorney?

Your agent is an excellent source for a recommendation. Combined with his or her colleagues, they have done many transactions over the years, and can confidently recommend a lawyer. By the way, a lawyer is not allowed to accept a referral fee from a real estate broker, which should raise your confidence that he/she is on your side since there are no outside incentives.

 

Image via Flickr

 

Take a referral from a friend with a grain of salt. Remember, individuals, are probably only going to buy or sell a home three or four times in a lifetime, at most. That means he or she has limited experience using a real estate attorney. Still, this is better than randomly picking a lawyer blindly from an advertisement or Yelp review. There are certainly plenty of lawyers advertising for your business. But you have better options than merely picking one from the Yellow Pages (if you are old school) or an Internet advertisement, however.

You are certainly welcome to interview the lawyer. You can ask about his/her experience and see if you are comfortable working with him/her. The Office of Court Administration allows you to check that the lawyer is licensed and in good standing.

What does the attorney do for their fees?

Your buyer’s agent helps you find the right property, advises you on the price to offer by running a comparative analysis and providing you information that you can use to your advantage, and he or she negotiates the final price with the seller’s agent. Once a price has been accepted, you have your inspection. At this point, your lawyer works with your agent.

In New York, the seller’s attorney prepares the contract’s first draft. Your attorney may add additional terms to a rider based on your needs and wants. He or she is also conducting due diligence, which takes on extra meaning in New York City condos, co-ops, and townhouses. Among other things, your lawyer should be checking to see if the building has any lawsuits, liens, seeing how significant improvements are handled, building permits, speaking to the property manager, and reviewing the building’s financial statements. You can do some of this work yourself, but it is highly recommended to have a trained lawyer looking too. Assuming there are no issues, both parties proceed with signing the contract.

At this point, your lawyer prepares for the closing. The attorney communicates with you to ensure you are providing the necessary information to obtain your mortgage. He or she is also preparing the breakdown of closing cost fees you will owe to the various parties at closing. At closing, he or she has the documents for you to sign in order for you to get the keys and disburses the funds.

Attorneys’ fees are reasonable

A typical attorney’s fee is in the $2,000-$3,000 range. This is part of your closing costs, but this is one fee that is well worth it.

The post How to Find a Great NYC Real Estate Attorney appeared first on Elika Real Estate.

Buying a Co-op: Top 5 Mistakes to Avoid

Buying real estate in New York City is a challenge, but even more, care must be taken when you are purchasing a co-op. Owning a co-op provides some benefits, such as not worrying about fixing the electrical/plumbing, or competing against foreign cash buyers to secure a home. But, we would like to use our experience to offer some potential pitfalls that you should know in advance.

1. Not using a buyer’s agent

The traditional real estate model is so ingrained; many do not realize there is another way. You should engage a buyer’s agent to help find your co-op. Under a traditional arrangement, the seller hires an agent, who lists the apartment and tries to find a buyer. This agent’s fiduciary duty is to the seller and does not represent your interests, obviously. His/her main goal is to sell the unit quickly and for the highest price. The agent’s commission is greater as the selling price goes up. But, there is another way. A buyer’s agent has a fiduciary duty to you. His or her only goal is to make sure you get into a co-op that is right for you for the right price. Also, a buyer’s agent knows his/her way through the nuances of a board package that is crucial to get right in order to make board approval more likely. You buyer’s agent also helps you prepare for a board interview.

 

Image by Halstead Property / Flickr

 

2. Not properly checking the building’s financials

Many people are turned off or intimidated by financial statements. You should not be one of those since you do not need to be a CPA to understand what is going on. But, what do you need to hone in on? You want to see that an accounting firm properly audited the statements, particularly if it is a large building. When looking at the financials, start with the balance sheet. A key figure to look at is the cash balance. Ideally, there is an adequate reserve covering three to six months worth of expenses. If not, you may be charged a special assessment for an emergency such as a new roof or elevator repairs. You can also check how much debt the building carries.

Turning to the income statement, see the sources of income. Ideally, you want a significant portion to come from commercial rents, which help keep your maintenance fees down.  You can also see the expenses to learn what the co-op is spending its money on.

The statement of cash flows is very useful since it tells you how the co-op is spending its money. You want to see that it is generating positive cash flow. Otherwise, you can expect a hike in your maintenance fees down the road.

3. Not doing the rest of your homework

You have checked the building’s financials, and everything checks out. Are you in the clear? Sadly, the answer is no. You need to do the rest of your due diligence. Is the board involved in series of lawsuits? You can check here. As part of your detective work, you should also read the board minutes as well as review the building board application to make sure you can provide everything needed for approval. An REBNY financial statement form or something similar is requested in all board packages. It is very important to start with this even before going to see a co-op. It allows sellers to compare the financial strength of competing buyers. The form lists your assets, sources of income, and debt/income ratio, among other things.

Your homework should also include doing a check of the building’s structure (you can ask to see reports or hire your engineer), while you can walk around the neighborhood and the building to see what it would be like living there.

4. Not presenting the right offer

You only get one chance to make the right impression. It is tempting to present a low ball offer, but in this market, it might be quickly rejected, and you may not get a second chance. Similarly, you may bid too high, and end up overpaying. Remember, if you engage a buyer’s agent, he or she is on your side. An exclusive buyer’s agent runs a comparable market analysis and is in the best position to advise you on the right offer. For instance, the agent will let you know if there are special circumstances that he/she is aware of that can help your bargaining position. A couple of common ones are a pending divorce or if the owners are buying another property and may not want to have the burden of carrying both properties at the same time, thus looking to sell sooner rather than later.

Also with co-ops, it is not just about the price you offer but the package as a whole. You will be you in a competitive position if you work at a large company with a transparent history with supporting letters and documents. If you are a freelancer with less transparent past, this will likely cause the seller to have a concern on whether you will be approved by the board. A good offer with a well-compiled board package and supporting documents helps you get a board interview.

5. Celebrating too soon

Do not celebrate right after your offer has been accepted. It is tempting to pop the champagne corks, but you must resist. You must still pass the board’s interview. You should bring a copy of your board package to the interview and know your financial statements in case questions are asked.

The post Buying a Co-op: Top 5 Mistakes to Avoid appeared first on Elika Real Estate.

NYC Neighborhoods by Predominating Ethnic Cuisine

New York City’s Three Chinatowns

Two hundred thousand-plus Chinese Americans live in Southern Brooklyn, including Sunset Park, Bensonhurst, and Gravesend with the largest concentration being in Sunset Park. Sunset Park’s 8th Avenue, known for Chinese culture, is called Brooklyn’s Chinatown and its Chinese population is comprised of a majority of Fuzhounese Americans. Serious Eats provides a roundup of the local favorite Chinese restaurants and dishes in Sunset Park, including the Spicy and Cold Jellyfish at Bamboo Garden.

Incidentally, a very large number of Chinese restaurant workers in the U.S. are from Fuzhou. In Manhattan’s Chinatown, Little Fuzhou is a central gathering spot for Fuzhou residents. Time Out New York’s guide to the best Chinatown restaurants is an excellent roadmap for those looking to sample some local Chinese eats. Additionally, there is a large concentration of Chinese in Flushing, Queens – NYC’s third Chinatown.

 

EventPhotosNYC /Flickr

 

Jewish Flavor

The neighborhoods of Borough Park, Williamsburg, and Flatbush are the stomping grounds for many Brooklyn Jews. There are more than 600,000 Jews in NYC – particularly Orthodox Jews and Hasidic Jews. Kosher food is the order of the day for most of these folks. Try the kosher restaurant Vostok in Borough Park for some local flavor.

The Upper West Side of Manhattan is populated with German Jews as well as some of the last remaining Jewish refugees from WWII. The UWS is also home to a large community of young modern Orthodox singles. The Manhattan neighbored populated by a large number of non-Orthodox Jews. Meanwhile, the Lower East Side is another popular enclave for Jews in NYC. The Nosher weighs in on the best Jewish food in NYC.

Fuhgeddaboudit: Italian Fare

New York City has the largest population of Italian Americans in the U. S. as well as North America. In Manhattan, Little Italy is the most populous Italian neighborhood. Italian-Americans in Brooklyn are concentrated in Bensonhurst, Dyker Heights, Bay Ridge, Bath Beach, Gravesend, and Carroll Gardens. In these communities, you can find many different Italian restaurants, bakeries, delis, pizzerias, and cafes. NY Eater provides a list of the top 10 old-fashioned Italian-American restaurants in Brooklyn. Meanwhile, Thrillist gives recommendations for the best Italian restaurants in NYC.

Bushwick, More than Just Street Art

Brooklyn’s largest Latino American community is located in Bushwick. Like other Latino neighborhoods in NYC, Bushwick has an established Puerto Rican presence. Along with Dominicans, South Americans, Central Americans, Mexicans, Bushwick’s Latin residents comprise approximately 80 percent of the neighborhood. One Bushwick spot you should definitely try is the tortilla factory-based Tortilleria Mexicana Los Hermanos, where you won’t want to miss the taquito with chorizo. Additionally, there are a range of Latin restaurants in Brooklyn. Check out Foursquare’s 15 Best Latin American Restaurants for inspiration.

 

Image: Pexels

 

No Polish Jokes, Please

Greenpoint, Brooklyn, home to Little Poland, has the largest concentration of Polish residents in NYC. The Lower East Side, that ethnic mosaic, is home also to a large number of Russian and Ukranian folks. If you don’t know about the legendary Polish restaurant, Veselka, on the corner of 9th Street and 2nd Avenue, go and order a plate of pierogies with sour cream and caramelized onions as soon as possible! Also visit Streecha Ukrainian Kitchen, the basement cafe that serves as a fundraising arm of the St. George Ukrainian Catholic Church.

Many Russians and Ukrainians are concentrated in the Brooklyn neighborhoods of Brighton Beach and Sheepshead Bay, nicknamed Little Russia and Little Odessa. Originally mostly Jewish, more recently, the non-Jewish Russian and Ukrainian communities of Brighton Beach are prevalent in the local ethnic culture. At the Ukranian Café Glechik in Sheepshead Bay, which boasts an endorsement by Anthony Bourdain, try the Pelmeni, boiled dumplings with small portions of ground meat and onion wrapped in a thin, unleavened dough.

More NYC Food Tips

Visit the Museum of Food and Drink for a spotlight on the culture of food.

For a sampling of a variety of ethnic eats, take Local Expeditions Midtown ethnic food tour.

Finally, pay a visit to the Tenement Museum, an institution dedicated to urban immigrant history, for the very best historical view of the shifting cultural and ethnic population in New York City.

The post NYC Neighborhoods by Predominating Ethnic Cuisine appeared first on Elika Real Estate.

How to Break Your NYC Apartment Lease

If you’re a renter, you’ve probably wondered multiple times how to break your NYC lease. The easiest way to get out of your apartment rental lease is the most informal: Just ask your landlord! Depending on the overall market, generally speaking, a landlord can raise the rent for a new tenant. Even a stabilized or controlled apartment’s rent can be increased if renovations are done, so there is an advantage for a landlord to rent to someone new in a healthy rental market.

By and large, big landlords and real estate holding companies that own a lot of property have the resources to find new tenants quickly. They also are not prone to be overly burdened by an apartment standing empty for a month or even two. These companies are more likely to be more agreeable to ending a lease early.

 

Image by Sarah / Flickr

 

Smaller landlords, who cannot afford to have an empty apartment for even one month, might not be so agreeable. However, if you have a friend who wants to take over your apartment or you are willing to do outreach to find someone take over your space, this often lessens the negative impact of ending your lease. In this case, your landlord might be very willing to accommodate your request.

If you are moving out of the state or country for a new job, you may have a better chance at negotiating the termination of your lease. Splitting the cost of remaining rent with your landlord if you are near the end of your lease might be a satisfactory compromise.

The NYC Rent Guidelines Board has some answers to the question of how to break a lease: “Generally speaking, breaking a lease is like

breaking a contract, and the landlord can claim part or all of your security deposit for unpaid rent. The landlord could also go to court to enforce the terms of the lease (i.e., ask you to pay additional rent until a new tenant is found). Under current rulings, landlords also have no duty to promptly re-rent the apartment.”

 

Image: Pixabay

 

Of course, there are exceptions to every rule, and terminating a lease early without financial or other consequences are permitted in particular circumstances.

You may be able to legally move out before the lease term ends if you meet the following criteria:
You are beginning active military duty:

You are protected by federal law if your military duty includes the armed forces, the commissioned corps of the Public Health Service, the commissioned corps of the National Oceanic and Atmospheric Administration, or the activated National Guard.

 You are 62 or older and are moving into a senior residence:

Tenants 62 years of age or older who cannot live independently and are moving to a nursing home or other assisted living situation are protected by NYS property law.

You and/or your children are victims of domestic violence:

NYS property law provides for early termination rights for those tenants who are victims of domestic violence if the tenant has an order of protection.

Your apartment is uninhabitable (the landlord/unit has been cited with violations of the NYC health or safety codes):

You will likely be able to claim a case of constructive eviction if your landlord does not provide safe housing under local and state housing codes.

Your landlord is harassing you or violates your right to privacy:

If your landlord takes such actions as turning off your utilities or changes your locks without your consent, you might also be able to claim constructive eviction.

Remember that all these exceptions have related legal requirements such as the specific amount of notice you must give your landlord to terminate your lease and many other conditions. We firmly suggest you consult a tenant attorney, obtain pro bono legal counsel through the many legal nonprofit organizations in NYC, or seek advice/representation from a community housing advocacy agency.

Next time you are wondering how to break your NYC lease, Download this comprehensive guide to the rules and regulations related to tenancy in New York City, see the (PDF) NY State Attorney General’s Tenant’s Rights Guide.

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