Gea Elika's Blog, page 151

How to Win (or Try to Win) a Bidding War

New Yorker’s understand the grueling process of finding a good home in today’s market given the shortage of inventory and increased global buyer demand. In today’s market, bidding wars are commonplace, and properties often sell for 10 to 20 percent above asking price, especially in the great locations near parks and transportation. Therefore, you need to have some tricks up your sleeve to get the perfect apartment without breaking your budget. Bidding wars can be unpleasant. However, they do present a great opportunity for reaching an accepted offer and winning a home in comparison to a Best and Final.

Research the Housing Market in Your City

Spend some time researching the housing market in New York City–real estate prices are complicated and not always as stable as they seem, as they fluctuate from year to year and are based on economic factors. For instance, it’s more expensive to move in the summer because there are more buyers; however, there are more New York City homes available in the summer. If you know that it’s a seller’s market, you’ll know when to enter a bidding war and when to back off and look for something else. Consider and estimate a home’s fair value as well as market momentum before overpaying.

 

Image via Flickr by Erik Drost

Be the First One to Make an Offer on the Home

Once you’ve found an apartment or townhouse that you like, submit a written offer as soon as possible. Sometimes, all sellers care about is quickly turning over the property. Therefore, you can avoid a bidding war entirely if you beat other buyers to the punch by carefully watching your desired area for new listings. Just be prepared that this isn’t usually the case, but it’s worth trying.

Make Yourself Look More Appealing

If you’re trying to encourage the owner to accept your bid immediately instead of waiting for a better deal to come along–or hoping the two of you get into a bidding war–try making your bid look as appealing as possible. Numbers talk but so can you. Include a letter to the seller in the offer; you may not be able to meet the seller, but you can tell them about yourself in the note. People become attached to their property and would often prefer to sell to someone that appreciates their effort as long as the offer is also strong.

Check on the Status of the Bidding War Every Day

If you’re trying to win a bidding war on a property that’s in a popular area of New York City, make sure to follow up on your offer every day–and sometimes twice a day. Try to have the broker give you an idea of the current highest bid. Brokers usually won’t release the price of competitive bids, but they may provide a hint to motivate you to outbid the other potential buyers. You have to be careful not become irrational or go over your budget, and it’s also important to have realistic expectations about what the home is going to cost you on a monthly basis. The more popular the area and desirable the home, the more expensive.

Additional Tips to Increase Your Chances

– Submit your highest and best offer to increase your chances of winning the property and avoiding a best and final.
– Consider waiving all contingencies except a mortgage contingency unless you’re able to put more money – down or purchase the property in cash.
– Accommodate the seller’s needs. Offer to close quickly or later depending on a seller’s preferences.
– Prepare a REBNY financial statement in advance and attach it with your offer.
– If you’re financing your purchase, attach your pre-approval letter.

 

Avoid a Best and Final

Do all you can to avoid a best and final. A best and final is typically held when a seller has received several offers and will ask all bidders to submit their highest and best offers. A best and final offer is essentially the highest and best price the buyer is willing to pay without the option of submitting another offer. The seller will request that potential buyers only submit one final offer and the highest and most qualified offer generally wins.

These are just a few tips for winning a bidding war. Paying a premium for a desirable well-priced home is the only way to get into the market today. Instead of looking for homes that could break your budget, look for homes 10 – 20 percent less than the highest amount you’re willing to spend. This will give you a chance to find a home and get a deal done. It’s a hard task, but if you’re dedicated, you’ll get an awesome home in one of the greatest cities on the planet. Do you have any other tips for people trying to find an apartment in New York City? Share your advice in a comment below.

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Dealing with Seller’s Remorse

Finding the right apartment in New York City is tough. You have scoured and visited numerous properties, maybe even placing offers on a couple of apartments, only to be turned down or losing a best and final offer. Now, your hard work is about to pay off, and you are on the cusp of the American Dream. Your offer has been accepted, and you think it is smooth sailing. 

However, while buyer’s remorse is a commonly known phenomenon, sellers may also have second thoughts. When a seller kicks the tires, this creates a fiasco that can cost you money, delay your purchase, or even break your deal. However, before you go through this situation, we outline some cases of seller’s remorse in order for you to be aware of a potentially troubling situation and actions you can take if it happens to you.

 

Image by Government of Alberta / Flickr

 

Reasons for seller’s remorse

While there can be any number of reasons for a seller to change his/her mind, there are several that are more common. Seller’s remorse often happens because the seller was not really motivated in the first place and was just testing the market. A related reason is a seller deciding he/she was not happy with the price after all and decides to wait for a stronger market.

Other times are a location canceled. Perhaps the seller moved to a new city and realized it was not the right place to reside, or he/she is dealing with the recent loss of a job and can no longer afford to move.

The sellers might realize other options available in the open market are not as appealing, particularly in these times when inventory is tight and if the seller is emotionally tied to renovations that were done.

There are other, emotional reasons, such as not wanting to let go of the memories. Another common reason is a separation or divorce. In this situation, one party may decide he or she wants to return back “home.”

Looking for a way out

Sellers have few options once they have countersigned a contract and accepted the deposit, which is good news for buyers. If this is happening to you, check your sales agreement. Make sure there are no contingencies that allow the seller to back out of the deal.

From the buyer’s point of view, make sure you follow the contract, such as obtaining a mortgage within a certain time frame. Otherwise, you have given the sellers away out. A mortgage contingency can provide you with protection, allowing you to back out of the deal if you cannot obtain a loan within a specified period in most cases for the full valuation of the contract price, such as 30 to 60 days. You should adhere to these guidelines, or obtain an extension promptly, lest this be used against you. Similarly, you need to follow other aspects of the process, such as getting an inspection if desired within the due diligence period, typically five to seven business days. Delays in signing of the contract can allow the sellers time to reassess and back out.

Legal recourse

Once the contract is signed, the seller is in breach of contract if he/she backs out. This assumes you have met all of your requirements, and there are no contingencies that allow the seller to exit without penalty, of course.

You can hire a lawyer, and sue for “specific performance”, which compels the buyer to transfer the property under the terms of the contract. Attorney and court fees may be tacked on, should it go that far.

Furthermore, you can sue to recover “consequential damages,” which are reasonable costs that you had to pay due to the seller’s breach of contract. These include expenses for temporary housing, storage, and other living expenses.

Before reaching this point, the seller may offer you a settlement to compensate you for your time and expenditures. Providing you are satisfied with the figure, you may choose to accept it and move on.

Final thoughts

In New York, your offer is not binding upon the seller’s acceptance, unlike some other states. An offer form is filled out and a contract is sent to your attorney, but both parties are not legally bound until both sides sign a formal agreement with the deposit transferred. There is a time lag time during the due diligence period between the buyer’s acceptance, and both names are signed on the dotted line. Prior to this, either the buyer or seller can walk away from the deal without penalty. Therefore, if you love the home, it is imperative that you and your attorney work quickly to finalize the contract, including an inspection and an attorney reviewing the financial statements and board minutes for the co-op/condo.

Have you lost your ideal home due to seller’s remorse? Share your comments below.

The post Dealing with Seller’s Remorse appeared first on Elika Real Estate.

196 Orchard Street

196 Orchard is a work of art gracing the Lower East Side. Offering high-end boutique living spaces from studios to four bedroom residences, bask in timeless, impeccable design from Magnum Real Estate Group and REEC.

Architecture

In order to create a truly stand-out development, Magnum and REEC partnered with Ismael Leyva Architects for this project. Renowned for their creative and elegant design solutions, they worked with the absolute best raw materials to make 196 Orchard shine.

 

Rendering Courtesy of 196 Orchard Street

 

The building has been designed from the ground up with a focus on simple, high-quality industrial products that allow the building to effortlessly match the industrial buildings that compose the Lower East Side.

The story starts with a Jet Mist polished granite base before continuing up the two-tone brick façade, completed with hand laid glazed Spanish bricks on the bottom and black diamond brick on top. Next, comes the oversized casement windows, letting in huge amounts of light to every single residence. At every turn, you find industrial elements recast with beautiful, modern materials that are sure to stand the test of time.

Residences

The luxury and finesse of the bones of the building continue through the residences. brought to fruition by Incorporated design studio, who stamped every single element with they’re tripartite of successful design: joy utility, and craft.

 

Rendering Courtesy of 196 Orchard Street

 

Inside, this translates into soaring 9-12 feet ceilings, a custom kitchen designed to suit each unique space and fleshed out with Miele appliances, Nero Marquina marble backsplash, Zen Black quartz countertops, and walnut cabinetry. Polished concrete ceilings complete the cool, industrial feel.

 

Rendering Courtesy of 196 Orchard Street

 

The large, and double-paned Low-E insulated casement windows, complete with bronze mullions, let in plenty of light to each residence. The bright space is finished with wide planked, white oak flooring hand selected by the INC design team.

The luxury and refined design continues through to the bathrooms. Waterworks blackened nickel faucets nod to the industrial design present through the rest of the unit, but Scandinavian style reigns supreme to create a relaxed and comfortable environment.

 

Rendering Courtesy of 196 Orchard Street

 

Walnut vanities offset the Bianco Dolomiti marble showers and Eramosa marble counters and floor for a classic Northern European combination of warm wood and crisp stone.

Amenities

Magnum Real Estate Group and REEC partnered with Equinox to provide state of the art amenities to the residents of 196 Orchard.

With over 30,000 square feet of space, a private residents-only entrance, and a special 196 Orchard discount, Equinox provides amenities that are truly a cut above.

Equinox fitness services include:

– Four dedicated fitness centers and dozens of different classes
– Boxing facilities
– Juice bar
– Spa at Equinox, with private treatment rooms and an unparalleled product selection

 

But the amenities don’t stop at just the Equinox.

Residents also have free use of the communal 4,100 square foot rooftop terrace, perfect for alfresco dining with two outdoor kitchens and seating areas or just for lounging in the summer sun.

And with a 24-hour attended lobby with ornamental brass privacy screens and acid-etched Eramosa marble reception desk to the elevators finished in Athens grey marble and blanched walnut paneling, you won’t be able to wait to come home.

Availability

There are 94 units in the entire building, ranging from studios to four bedrooms, and currently, there are nine on the market, including the penthouse.

Prices start at $1.085 million for a 551 square foot, west-facing studio on the fifth floor and go up to $4.2 million for a three bed, three bath 1,555 square foot apartment on the 10th with a 146 square foot terrace. The penthouse clocks in at just under four million and has slightly more living space, two beds, and 2.5 baths.

Neighborhood

The Lower East Side has a richly residential past, but today is at the center of NYC art and culture. Orchard itself is lined with upscale boutiques, and if you adventure further in you’ll find countless quiet courtyards, hiding many an excellent brunch spot and relaxing cafes to patron.

In the LES, high-end artisan craftsmen sell the world’s best products and quietly musty vintage storefronts just beg to be explored. And when the sun goes down, the internationally recognized art scene springs into being. Contemporary galleries, museums, and lounges dot the neighborhood.

Whether you’re looking for the next addition your collection or you just want a decent Reuben, the Lower East Side has you covered.

[  196 Orchard Street ]

 

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Open Houses: 5 Tips for Viewing NYC Properties

Open houses are the best way to see if a space matches your needs by providing time for you to explore and giving insight into the neighborhood and types of people who are drawn to the area. Whether you are just starting your search or have been in the market for a while, these tips will help ensure a positive open house experience so that you can find your dream home.

Tip #1: Create a Game Plan

First, research properties online and compile a list of your must-sees while making sure to note specific facts such as rates, fees, etc. The key is to make sure that all open houses you plan to attend in a given day are in the same area, as timing is crucial. Make sure that you allow enough time to adequately look around while taking travel time into account. Also, make sure that you arrive at open houses during the beginning of the allotted time, as that will ensure a smaller crowd and more time with the agent. Finally, dress appropriately, usually business causal is key.

Tip #2: Focus on the Property

 

Image via Flickr by Milestone Management

 

Well-maintained landscaping, common areas, and exteriors show how well-kept the building is as well as indicating repairs that may be needed. When inside, look all around to make sure that there are no visible holes or damages. Also, note square footage, bedrooms, bathrooms, and special features in addition to looking through all storage spaces. Ask about appliances and make sure paperwork on warranties has been kept. Lastly, when walking through, visualize yourself living there.

Tip #3: Ask Questions and Listen Intently

Ask probing questions about the seller’s motivation, the reputation of the neighborhood, and nearby amenities. This is your chance to get to know the property. Also, take advantage of the crowd by politely listening to conversations. While they are your competition, they can provide insight on something that you may not have noticed or asked about.

Tip #4: Keep a Poker Face

When talking to the agent, don’t disclose personal information such as your current housing situation, financial status, or moving timeframe. Remember that the agent works for the seller, and anything you say will be reported back. Forming a positive relationship is important, but keep your topic focused on the property while keeping your interest at bay. If you seem too eager and excited, you may lose all leverage as a buyer. If interested, make sure to call your buyers agent soon after you leave.

Tip #5: Evaluating the Property

Avoid any criticism about the property until you are in the privacy of your car of back on the street. If the agent or others overhear negative comments, it can come back to haunt you. If this property isn’t for you, the agent may be. Open houses are a good way to find a potential agent as eventually they will become your house hunting partner and you want to ensure that you have the best one for you.

 



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What to do with the Construction work next door?

New York City’s revitalization over the last two decades is well documented. The quality of life has improved dramatically. For instance, crime statistics show large drops across the board, including murders falling from 2,262 in 1990 to 330 in 2016.

This has led to a growing population with more people finding the city a desirable place to live. There are 8.5 million people living in NYC, based on current estimates, up from 7.3 million in 1990. In order to meet the growing housing demand, there have been new construction projects. This means people across the city may have to live with the inconvenience and construction noise for a while. There are tips to dealing with it, however.

 

Image by Mark Lyon / Flickr

 

What to do?

Builders need a permit prior to construction starting and are also required to give neighbors notice. These requirements are typically easily met.

However, they can only work on construction from 7 a.m. to 6 p.m., Monday through Friday. If you are home during these hours – perhaps working or with your children, there is not much you can do. However, if it is outside of the hours, you can complain by calling 311 or online.

Aside from noise, debris is another major sticking point. There are regulations from the Department of Environment Protection (DEP) that govern this, serving to protect New York City’s residents, however. The construction company needs to take actions to prevent the dust from becoming airborne, such as using a tarp. Demolition of walls need DEP approval. If you feel there is excessive dust and dirt, you can file a complaint.

If developers are planning major changes and a variance is needed, they need to reach out to the community, and neighbors have an opportunity to speak out and be heard. Building in a landmark district also requires approval from the Landmarks Preservation Commission. You can also use the website to determine where New York City’s landmarks are located.

 

220 Central Park South, photo by Andrew McKeon / NewYorkYimby

 

Dealing with damage

Thus far, we have dealt with the inconvenience and health hazards presented by living in a construction zone. However, there may also be property damage from building on an adjacent property, which can range from minor to as severe as a building collapse. If that is the case, there are protections put in place. There are various options, such as reaching out to the developer and construction company, complaining to the city, and pursuing litigation. Typically, the damage is minor, and the contractor is required to carry insurance.

Keep in mind, there is strength in numbers. If there are a number of people with similar complaints, you can go en masse or have the board do it.

Final thoughts

If you feel the developer or construction company are not acting in accordance with the regulations (e.g. outside of the allowable hours or not taking the proper precautions), there are several actions you can take. Assuming you have tried to be cordial by calling the developer and contractor, the city has a lot of resources, including easy-to-file forms that are found online and below.

While there are certain inconveniences you may have to live with, others are clearly out of bounds. This guide can help you if the developer is working outside the limits.

 



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Best NYC Neighborhoods When You’re No Longer in Your 20s

NYC is great for new graduates and millennials, but it’s also a great city for growing up and starting your career, family, or both. You don’t have to be a 20-something to enjoy NYC. You just have to find the best neighborhood to enjoy living in NYC at all stages of your life.

Astoria

Astoria remains a top choice for young professionals and families. It’s a neighborhood that emphasizes community and the laid-back life. If you’re not a fan of the bar scene any longer, then Astoria has quieter options for your evening, with Greek food and Italian eateries. It also offers opportunities to see great works of art, watch a play, head to the beach, and enjoy a quite walk alone with your dog. If you have outgrown the bustle of the city and long nights at the bar, you can spend your weekend mornings at a farmer’s market in Astoria instead.

Greenpoint

Greenpoint is considered hip, but to be fair, it’s more like your cool, more mature older sibling. It has all the amenities of the 20-somethings neighborhoods, but it also provides class, quieter streets, and a slightly longer commute to Manhattan. This neighborhood attracts young professionals, people who are just starting out, and those a little more established in their careers. It is great for art galleries, eateries, safe neighborhoods, and outdoor recreation.

 

Image by Gea Elika / Elika Real Estate

 

Windsor Terrace

If you’re tired of living like a struggling artist, or if you have moved past the living-above-a-bodega lifestyle, Windsor Terrace is a nice way to ease into suburban living. It’s close to Prospect Park for your quieter weekends, and it has easy commuting options if you work in Manhattan. It also has small shops and eateries in place of tourist attractions, which keeps the streets quiet. Many of the homes in Windsor Terrace are either row brick homes or wood-framed places with stoops and backyards.

Boerum Hill

Brooklyn’s Boerum Hill neighborhood is the destination neighborhood for young professionals and new and growing families. Boerum Hill has a strong, supportive community of hardworking people just like you. It has gone through a large transformation over the years and now offers places to dine out on Atlantic Avenue, safe neighborhoods for family walks on tree-lined streets, and a day trip Carroll Park. Commuting from Boerum Hill is easy with its 10 subway lines.

The Financial District

 

Image by Vivienne Gucwa / Flickr

 

The Financial District is nice for those who have to commute and have a little more money to spend on rent. The Financial District doesn’t pretend to be a “cool” neighborhood, and it shies away from “trendy,” which means the 20-somethings and students stay far away. Peak hours are at lunchtime, and then it dies for a quiet night at home or a local brew or slice of pizza. The Financial District attracts tourists to its historic cobblestone streets and Manhattan skyline, but when the sun goes down, the tourists leave and the streets are quiet again.

 

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What is depreciation?

Unlike various investment options such as stocks and bonds, rental property is a depreciable asset. According to the IRS, depreciation is an “annual allowance for the wear and tear, deterioration, or obsolescence of the property.” It should be noted that this is only allowed for investment property and used for an income-producing activity. If you use any of it for personal uses, you can only deduct depreciation from the portion used for business.

 

Image by dean ambrose / Flickr

 

Depreciation allows you to write off the cost of the property over time. Similarly, if you have any capital improvements, such as a major kitchen upgrade, these costs are also allocated over a period, rather than in the year it was done. This is opposed to other expenses such as general maintenance/repairs and HOA fees. For example, if you merely paint the kitchen, that is expensed immediately.

Delving deeper

The first thing to know is that you cannot depreciate land. Therefore, you need to separate the cost of the land from the building. Second, for residential real estate, the IRS allows a useful life of 27.5 years. The IRS requires you to use the Modified Accelerated Cost Recovery System (MACRS) to depreciate residential real estate (assuming the property was put in service after 1986). Under MACRS, you can choose to depreciate the property under the straight-line method, which expenses the same amount annually, or under the General Depreciation System, which is more complicated.

Condos and co-ops

Living in New York City, you may choose to purchase condo or co-op units for rental. If you rent condo units, it becomes challenging since you own the air space and the common elements, such as the land. If you have a property tax bill that separates the assessed value, you can divide the amount based on this allocation. Alternatively, you can use an independent appraisal or an insurance’s agent’s estimate. If there are special assessments charged for long-term improvements, you can deprecate the amount you paid.

For co-op rentals, you depreciate the stock owned by the corporation rather than the apartment (which you technically do not own).

Crunching the numbers

Presenting a simple numerical example should provide more clarity. You purchase a co-op and calculate the depreciable real property is $1.1 million. You may deduct $40,000 annually for depreciation expense, assuming you utilize the straight line method. This is the $1.1 million divided by 27.5 years.

You cannot have a passive loss in a year (there is an exception if you are an active participant subject to an income limit). However, if you have $50,000 left over when subtracting your other expenses from your rental income, this leaves $10,000 of taxable income. Your tax savings amount to the annual depreciation multiplied by your marginal tax rate. Assuming you are in the 28% income tax bracket, you saved $11,200 in your taxes for the year.

Concluding thoughts

We have seen how utilizing depreciation, a non-cash expense improves your yearly cash flow. However, we noted this merely defers your taxes. When you sell your property, assuming it has appreciated, you are subject to a capital gains tax. In figuring this amount, the depreciation is “recaptured.” If you have a cumulative depreciation of $400,000, you owe a depreciation recapture tax at a 25% rate, or $100,000 ($400,000 times 25%). However, capital gains tax rates are currently lower than those for ordinary income, and there are ways to defer taxes on both capital gains and depreciation recapture taxes, such as a 1031 exchange

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NYC Real Estate Cheat Sheet: 147 Terms You Need to Know

If you’re thinking about playing the New York City real estate game, you’ll need to learn the terminology. While purusing properties you’ve probably come across some foreign words and phrases, so first things first. Learn what you’re reading and what you hear before you can wheel and deal on the apartment of your dreams.

Abstract of Title

A comprehensive summary of facts regarding the title, including ownership and legal proceedings related to the title.

Adjoining

A property that is in contact with, or attached to, another property. Same as contiguous.

 

 

Air Rights

The property rights an owner has to the air space above their property or ground; these rights are determined by city ordinances and necessity.

Alcove Studio

A studio apartment with a separate space adjacent to the living room. Often a wall can be added to create a bedroom.

Appraisal

An estimate of the value of a particular property, based on a comprehensive examination of the property, its location, and other related factors.

Architectural drawing

A formal illustration drafted by an architect that includes all layouts for a planned building, including plot plans, floor plans, elevations, sections, details, schedules, and other information. These exclude mechanical, electrical, and structural drawings, as well as specialized illustrations that are typically created and controlled by specialists.

Assignment

The transfer, in writing, of interest in a contract from one party to another. The holder of the lease effectively transfers the contract to another individual, who is the new tenant, for the remaining time and amount left on the lease. The new tenant is now liable for rent to the original owner of the lease.

Broker

Another term for a licensed real estate agent who lists properties for sale and rent, and or represents buyers.

Brownstone

These townhouses were constructed in the 19th Century, made from brown sandstone. They have below-level entrances, which are sometimes called English basements, and many have a garden at the back. These homes have many charming features of the times and maintain that old-fashioned feel.

Building Amenities

The specific services or perks that a building offers its tenants.Common amenities are garages, pools, fitness areas, laundry facilities, doormen and lobby attendants.

Building Permit

A formal, written approval granted to a builder by a state or local authority. Drawings and specifications for the proposed structure must be filed with legal authorities for the building permit to be issued.

Classic 6

A three-bedroom apartment with a separate living room, dining room, and a full kitchen. Often considered the ultimate NYC family residence.

Condo

A unit or part of an apartment building or large property that is individually owned. Common areas are shared. Also called a condominium.

Co-op

A membership-based corporation in which a person buys shares to live in a building. The more square footage, the more shares owned in a co-op. Many of the apartment buildings in New York City are cooperatives or co-ops.

Convertible

Can be converted. A convertible two-bedroom could be turned into a three-bedroom.

Cash flow

The net operating income of a property (minus its debt servicing fee, interest, and other expenses). An amount, expressed in a percentage, calculated by dividing a property’s cash flow by the total amount invested in the property and multiplying by 100. guarantee also called the cash yield.

Certificate of Insurance

A certificate issued by an insurance company and its authorized agents. Verifies that there is a current and valid insurance policy in effect for certain amounts and coverage for a particular property. Also, contains the named beneficiaries of the policy.

Certificate of Occupancy

This called COO. A document issued by the local government stating that a piece of real estate is up to all proper health and building codes and is able to be occupied by the public.

Co-broke

When the real estate firm representing the seller states they will split the commission of the sale 50/50 with the real estate firm representing the buyer.

Commission

The payment a real estate broker receives from selling a property. The commission is set by the owner selling the property and is usually 6% or 5% of the value of the property. In some cases, as if the property is difficult to sell or is very valuable, the commission rate may be adjusted up or down.

Common areas

Areas that are used by two or more tenants and/or third parties, not controlled by any one tenant; public areas that are open to using from the building’s tenants.

Concierge

A concierge is a person situated inside the lobby of a building who acts as a receptionist. This individual is responsible for receiving packages or alerting tenants of visitors. In some buildings, the concierge may work as security in the lobby as well. This person usually does not have the same duties as the doorman.

Constructive eviction

The process by which a landlord, through negligence or a willful act, renders a property unsuitable for occupancy. The tenant is not liable for further payment of rent and may seek damages.

Contract documents

Documents consisting of the agreement and the conditions of the contract (general, supplementary, and other conditions). They include the drawings, the specifications, all addenda issued before execution of the contract, and all modifications. A modification is (1) a written amendment to the contract signed by both parties, (2) a written interpretation issued by the architect in the form of a drawing or otherwise, (3) a change order, or (4) a written order issued by the architect for a minor change in the work.

Conversion

Change in use of a building, like from a commercial space into a residential space. Also referred to a rental building being changed to a condominium or co-operative property ownership.

Convertible

A large one or two bedroom apartment that has an “L” shaped room. This room could year’s into another bedroom with the addition of a wall. For the new room to be considered a bedroom, it must have a window.

Contract Out

The time at which a buyer and seller agree on a price. At this time, the seller will have their attorney write up a contract of sale for the purchaser to sign.

 

 

Deed

A legal document stating title of a property.

Default

The failure of a party to meet a financial obligation when due, or to perform any provision of a lease, mortgage, or other agreement.

Diffuser

A device that reduces air flow velocity from a mechanical duct system supplying a building with air. The shape of a diffuser is usually circular or square, and it is set in the ceiling at predetermined locations to diffuse air within that space.

Duplex

An apartment with two levels, joined by stairs.

Effective gross income

The scheduled gross income of a property, minus the vacancy rate.

Egress

The right to leave a tract of land. Often used in connection with access.

Eminent domain

The right of a government or municipal quasi-public body to seize private property for public use. It is acquired through a court action called condemnation, in which the court determines the use is a public use and decides upon the compensation for the owner.

Encumbrance

Any lien, such as a mortgage, tax, or judgment lien, placed on a property. It can also be an easement of a restriction on the use of the land or an outstanding dower right that may diminish the value of the property.

En-suite

A bathroom directly connected to the bedroom. Generally, this type of bathroom is for the use of the bedroom occupants only and is attached to the master bedroom.

Encroachment

A building or structure that extends beyond the legal limits of the owner’s land past the borders of public or private land next to it.

Equity

The interest or value an owner has in real estate over and above the mortgage against it.

Escrow

A process by which two or more parties, through a written agreement, agree to place certain instruments, assets, or property with a third party for temporary possession until certain conditions are fulfilled. The holdings are then delivered to a designated party upon completion.

Estate Sale

The total of all property, personal and real, a person has at the time of death.

Exclusive Listing

A listing contract in which the owner appoints a real estate broker as the exclusive agent for a designated term. The broker must sell the property on the owner’s stated terms, and the owner agrees to pay the broker a commission when the sale is complete.

Facade

Generally one side of the exterior of a building. Typically, this refers to the front, but can at times refer to the sides or the back. From a design standpoint, the facade sets the tone for the building and refers to the materials on the outside of the building such as brick, marble or brownstone.

Fiduciary

An individual to whom power or property is entrusted for the benefit of another party. A real estate broker is a fiduciary for an owner who is selling his or her property or when representing a buyer in the case of an Exclusive Buyer Agent.

Financing Allowed

Something unique to co-operative buildings. Co-op’s may allow an owner to finance up to 70-80% of the purchase price. However, some buildings do not allow financing at all. The co-op’s board of directors determines whether or not this is allowed.

Flip Tax

A transfer fee or tax charged when selling a co-op apartment in New York City, and most often paid by the seller. Most flip taxes range between one and three percent of the purchase price. Flip taxes are a way for a cooperative to generate surplus funds for building improvements.

Fixture

Personal property or improvements so attached to the land as to become part of the real property. The right of the tenant to remove fixtures may be given by stipulation in the lease or by separate written agreement.

 

 

Floor-thru

An apartment occupying an entire level of a building, which runs from the front of a building to the back wall of a building. This is often seen in townhouses.

Foreclosure

A court action in which the owner of a mortgage or lien has the underlying property sold in order to pay for a debt owed by a debtor. A landlord who does not pay the mortgage as stipulated in the mortgage agreement is subject to foreclosure.

Full Service Building

A building that employs a doorman and a Concierge. At some buildings, both of these positions are staffed 24 hours.

General Contractor

An individual and/or firm contracted to work on construction projects. There are different classes of contractors, which are normally listed under the heading of subcontractors. The function of the subcontractor is to perform a particular task only under the direction and coordination of the general contractor, who is normally selected through bidding procedures and is wholly responsible for completion of the project in a skillful manner that is acceptable to both the architect and owner. The contractor also could be contracted on a time-and-material basis, which may or may not have a guaranteed maximum cost.

Ground lease

A lease of land to a tenant who intends to occupy and develop the land for a specified period of time. If the tenant defaults, the owner may foreclose on the tenant (see “subordinated ground lease”).

Hazard Insurance

Insurance that protects property when damages are incurred by fire, natural disasters, vandalism. All insurance policies are written differently, be sure you know what your policy covers.

Historic District

A specific area in a community in which the properties have historic significance or value. This value is not always reflected in the market value. City zoning or historic societies usually define historic districts.

Holdover Tenant

A tenant who remains in possession of leased property after the lease has expired.

HVAC

An abbreviation for Heating, Ventilating, and Air Conditioning.

Insured

The beneficiaries of an insurance policy in the event of insurable loss or damage.

Income approach

An approach to value that estimates the value of an income-producing property by capitalization of the annual net income expected to be produced by the property during its remaining useful life.

Interest Rate

A fee that is charged to a one who is borrowing money from a lender. The rate it self can vary and is ultimately set by The Federal Reserve board.

Junior 1 bedroom (JR1)

A small one-bedroom apartment or a studio with a nook for sleeping. Similar to an alcove studio.

Junior 4 (JR4)

A one bedroom apartment with a separate space that can sometimes be converted to a second bedroom. Most often the additional space is a dining area outside the kitchen.

Joint tenants

Two or more landowners who have been specifically named in an agreement as joint tenants. Upon the death of a joint tenant, the surviving joint tenant or tenants receive the deceased tenant’s interest by the right of survivorship.

Keyed Elevator

An elevator that usually opens directly to an apartment or the foyer of an apartment. These elevators are usually seen in lofts or penthouses, or any large apartment that covers the entire floor of an apartment.

Landlord

One who leases a property to a tenant.

Lease

A written agreement between a property owner and a tenant defining the responsibilities and agreements of each party.

Lessor

The landlord in a lease.

Lessee

The tenant in a lease.

Loft

This usually refers to property that has been converted from commercial use to residential use. The loft usually covers one entire floor of a building. Some of the benefits of a loft space are large windows, lots of open space and high ceilings.

Lien

A right, given by law, to a creditor to have a debt satisfied out of the property of the debtor, usually through a right to possession. A tax lien, for example, is a lien placed on a piece of property by government for failure to pay taxes.

Loss Factor

The percentage of the gross area of a given space that is taken up by walls, elevators, etc.

Maintenance

This is another fee that is unique to co-ops. It’s comprised of: 1) The daily cost to operate the building. 2) A share of the building’s underlying mortgage 3) A share of the building’s real estate taxes. These three things combined are the monthly charges paid by a co-operative owner to the co-op.

Maisonette

A ground floor apartment usually in a co-op that has a separate street entrance than the rest of the building. Apartments like this give the tenants the feel of a townhouse in a co-op environment.

 

 

Market Price

The actual selling or leasing price of a property.

Market Value

The expected price that a property will bring if put on the market for rent or purchase. Assumes that the property is on the market for a reasonable period of time with reasonably competent owners and potential tenants.

Managing Agent

An independent company hired by a co-op or condominium to manage the property.The management agents are responsible for things such as collecting rent or dues, property maintenance or enforcing building policies.

Mansion Tax

A one percent state tax paid by the buyers of any properties costing over $1 million.

Mechanic’s lien

A lien established by law in favor of those who provide labor or material for the improvement of real estate.

Mortgage

A contract between a lending institution and a borrower to ensure repayment of a loan. The components of a mortgage are the amount being lent, the time period of repayment and the interest rate set for the borrowed money.

Multiple Listing

An arrangement between real estate brokers that calls for each broker to make available his or her real estate listings to other brokers. Then, if a purchase contract or lease is written, commission for the listing is divided between the broker who owns the listing and the broker who makes the lease.

Murphy Bed

A bed that is attached and built into a wall and can be pulled down or out of the wall. You will usually find Murphy beds in small apartments.

No Board Approval

This can refer to one of two things. 1) When a prospective purchaser of a co-op unit does not have to be reviewed by the co-op board. Or 2) When a prospective renter of a co-op unit does not have to be approved by the op-op board or owner.

Notary public

An officer appointed by a state governor with authority to formally identify and acknowledge persons executing documents, sign the certificate, and affix a seal.

Note

A legal document that outlines the obligation a borrower has to pay off a mortgage at a stated interest rate over a specific period of time.

Oblique Views

This term refers to an apartment that has somewhat panoramic views of either Central Park or both of either of the two rivers.

Offer Accepted

This is the point at which a seller accepts the terms of an offer submit by the buyer.

On-site Broker

This is a person hired by a building owner to show the apartments, answer any questions about the units or take care of any transactions at a building.

Open House

A sales tactic that is used my a real estate broker to advertise an available listing usually on a Sunday or Wednesday for a two-hour period. At an open house, prospective buyers are able to take their time and look around the property as well as question the broker about the property.

Option

A contractual agreement giving one party a privilege of demanding, within a specified time, the carrying out of a transaction upon stipulated terms.

Open Kitchen

A kitchen that is not separated from the other living areas of the apartment; this is a pretty common feature in loft style apartments.

Open listing

A listing contract under which the broker’s commission is contingent upon the broker producing a buyer before the property is sold by the owner or another broker.

Original Detail

This refers to original design details on the interior of a pre-war apartment.The design details can refer to ceiling moldings, fireplaces mantels or staircases etc.

Parlor Floor

The second floor of a townhouse. Typically this room is the room in the townhouse that has the highest ceilings and because of this, it was traditionally used for entertaining.

Partial Views

This term’s refers to units that offer partial views of either the City Skyline, Central Park or one of the two rivers.

Pass-through Kitchen

A kitchen one is able to walk through to enter into another room, usually a dining area or the living room.

Penthouse

An apartment located on the top floor of a building, often quite luxurious and offers more privacy than other apartments in the same building.

Pet Policy

A policy a building has about what types, sizes and how many (if any) pets a tenant may have.

Pied-á-terre

Literally translated from French it means “foot on the ground”, but we would call it a “landing pad”. These apartments are usually small, but quite comfortable and kept often by business travelers that need to be in the city for business monthly or weekly. At times these apartments are kept by the well to do so they can have a location in the City without the bother of traveling frequently from their home to enjoy the City life.

Prewar Apartment

If a building was built before 1945, it is considered pre-war. At 10-20 stories tall, they are mid-size as far as apartment buildings go. Some buildings might have a doorman. The advantages of living in a pre-war apartment often include hardwood floors, spacious rooms, and higher ceilings. Many also have a fireplace.

 

 

Post-war Apartment

Refers to buildings built after the World War II, or after about 1945. The style of these buildings and the apartments in them are drastically different than the pre-war apartments. Generally the interior and exterior are less ornate with less trim, moldings and exterior decor.

Purchase Agreement

A written contract signed by a buyer and a seller defining the terms under which a property will be sold.

Pullman Kitchen

A small kitchen situated against one wall, consists of room for a fridge, oven and a sink. These kitchens are often found in pre-war apartments or pre-war buildings that were originally hotels. This small kitchen generally does not count as a separate room. Pullman Kitchens are sometimes referred to as Petite Kitchens.

Quiet enjoyment

A clause present in leases that guarantee’s the tenant will be able to reside or do business in the premises in peace and without disturbance from the landlord.

Real Estate Salesperson

An individual who is employed or contracted by a real estate broker to buy, sell, or lease a property, or to help in facilitating the negotiations involving buying, selling, or leasing a property. These individuals receive compensation per the contract between the salesperson and the broker.

Real Estate Broker

An individual, association, or business that facilitates the buying, selling, or leasing of any real estate or real estate improvements and represents interested parties involved in the process. In turn, the broker receives compensation or consideration per the terms of contractual agreements. Real estate brokers must be licensed by the state in order to operate within its jurisdiction.

Real Estate Board

An organization comprised of real estate professionals, such as agents and brokers.

Realtor

A term designating an active member of a local real estate board that is affiliated with the National Association of Real Estate Boards. A realtor facilitates the buying, selling, and leasing of real estate.

Recessed Lighting

Lighting that is located set into the ceiling and not hanging from a light fixture. This style of lighting offers continuation of clean lines in a building.

Recording

The official act of entering a record of documents representing real estate in a county recorder’s office. Until recorded, a deed or mortgage generally is not effective against subsequent purchasers or mortgagees or other third parties (see “constructive notice”).

Replacement cost

The current cost of completely replacing a property with property containing the exact same utility (usefulness) and amenities.

Rent Control

A form of rent regulation; a limit on the price a landlord can charge or increase rents.

Rental Commission

Refers to the commission a real estate broker earns from the rental of an apartment. It is typical for a renter to pay the commission and the rate is about 10-15 percent of a year’s rent.

Reserve Fund

A fund set a side by a co-op or condo’s board to pay for monthly expenses or unexpected expenses.

Revocation

The act of rescinding a power or privilege previously authorized by the terms of an agreement.

Room Count

The number of rooms an apartment has. Every style of the apartment has a different number of rooms.

Styles:

Straight Studio, Petite Kitchen: One room.

Straight Studio, Full Kitchen: Two rooms.

Alcove Studio, Full Kitchen: 2.5 Rooms.

Junior-One, Full Kitchen, Wall: 3 Rooms.

One Bedroom, Living Room, Kitchen: 3 Rooms.

Junior-Four, Living Rooms, Kitchen, Dining Alcove: 3.5 Rooms.

Convertible-2, Living Rooms, Kitchen, Dining Alcove, No Wall: 3.5 Rooms.

Rules and Regulations

Building standards of use that are binding on the tenants and are usually established in a part of the lease. Consequences for violating rules and regulations are usually stipulated in a lease agreement.

Security Deposit

Money deposited by a tenant to a landlord or a rental agency as security against damages and terms of the lease.

Service Entrance

An entrance usually into the kitchen from the rear of a building or a secondary hallway. In the past, this entrance was typically by servants, and still may be used the same today.

Shares

This is something unique to a co-op building in real estate world. Each apartment owner in a co-op owns a share in the building, like a publicly traded company. The share represents the amount of the building that is owned by a shareholder, and the amount is determined by the size of the apartment, which floor it’s on and if there are any special features associated with the apartment.

Square Feet

The amount of livable space, in square feet, in an apartment or building. Sometimes the amount of square footage is approximated, while at condo’s the measurements are often more accurate.

Sublet

An agreement a new tenant would make with the current tenant of a property who is moving out. The new tenant would assume responsibility for all rental costs from the person who is moving out.

Sponsor Unit

An apartment owned by the original owner (sponsor) who converted the building to a co-op or condo.

Super

Super is short for superintendent. The super runs the show and is responsible for maintaining the building.

Tax Abatement

Tax breaks offered to developers for developing residential properties in certain areas. Many developers pass along these tax breaks as incentives to home buyers that reduce monthly tax payments for a period.

Tax Deductible

The percentage a shareholder at a co-op is able to deduct from their annual taxes.

Townhouse

Townhouses are usually single-family homes, up to four stories high. They can be freestanding or in a building of between 4-6 stories. People who move into townhomes are afforded a privacy that is rare in New York City, and as such, these homes can be quite pricey. However, many people say the price is worth it, since a townhouse exudes a charm that other dwellings just cannot compare with. Many townhouses have “extras”, including a private backyard, eat-in kitchen, fireplace, expanded living space and classic decor. Best of all, residents purchase townhouses without the need to go through a co-op and its lengthy application process. Most townhouses were built in the late 19th century through the early 20th century.

Unsold Shares

These are shares or apartments in a co-op that have not been purchased outright. It is common when a rental property is converted into a co-op that some renters would prefer to continue paying rent on their unit for a period as opposed to buying it.

Utilities Included

This refers to charges for some of an apartments utilities to be included in the monthly rent price. Often the utilities will be water, electric, gas and sometimes cable.

Vacancy Rate

Amount unoccupied units or apartments in a building compared to all units in the building. This rate is usually expressed as a percentage

Window Treatments

This refers to the types of coverings someone may put on windows. This can refer to blinds, shades or curtains.

Walk-up Building

A walk up is an apartment without an elevator and can range from 4-7 stories. You’ll hear the terms “third-floor walkup,” fourth-floor walkup,” etc. You walk up to that floor number to reach the unit. For example, a fifth-floor walkup would be on floor five of the building.

 

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The post NYC Real Estate Cheat Sheet: 147 Terms You Need to Know appeared first on Elika Real Estate.

Two Kids in One Bedroom: How to Make It Work

 

With the average NYC apartment coming in at only 866 square feet, it’s common and often necessary for families to put two (or more!) children into one bedroom. This presents a number of challenges, but with the following tips you can successfully put two siblings in the same room and give each their personal space.

Creating Privacy and Personal Space

 

Image by Tina Fussell / Flickr

 

Younger children probably don’t have the need for privacy when they share a room, but older children may take issue with a lack of personal space. To address this, you can divide the space into separate areas, giving each child their own bed, dresser, and night stand. Sharing a room doesn’t necessarily mean the children have to share every one of their belongings all the time. Set up rules that teach your children to respect each other’s belongings and ask permission before using things that don’t belong to them.

In very small rooms, consider loft beds that allow you to put the children’s dressers and/or desks underneath them to maximize the space. Some families use dressers (or other tall furniture) to physically divide the room into separate areas, placing the beds on either side of the dressers. Some families will string a curtain down the middle to provide a little privacy. A curtain can be pulled back when the kids want to socialize, which makes it a great, flexible solution.

White Noise Machine

If your children are not getting a good night sleep due to sharing a room, consider a white noise machine, or simply play white noise over an MP3 player. If one child coughs, talks in their sleep, or snores, it can prevent the other from getting a solid night’s sleep. Using a white noise machine can promote deeper sleep and prevent kids from waking up throughout the night.

Honor Age-Appropriate Bedtimes

Just because your children share a room doesn’t mean they should have the same bedtime. Older children should have a developmentally appropriate bedtime—not be sent to bed at the time required of younger siblings. This also helps make the bedtime process much easier. If you put your children to bed at the same time, you can probably expect talking and playing instead of sleeping. Staggering the bedtime means the younger child has a chance to fall asleep before the older child comes in, and with the younger sibling already asleep, the older child is more likely to read quietly or fall asleep without distraction.

Decorate for Each Child

Sometimes parents put emphasis on decorating the room to match, but if your children have different preferences, this may not be the best way to approach room design. Instead, consider letting each child have a say in how to decorate their side or area of the room. This may mean using different paint colors on opposite walls or choosing non-matching comforters, but it’s more important for each child to express their personality than it is to have a perfectly designed and matching room.

Siblings who share a room have a lot of time to bond with one another. While this can present challenges at times, ensuring each child has their own space and some privacy, and that the bedtime kinks are worked out, will result in successful room sharing.

 



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The post Two Kids in One Bedroom: How to Make It Work appeared first on Elika Real Estate.

12 Tips for a More Organized Home

The more disorganized your home is, the harder it is motivate yourself to take care of it! Tackle one room per week to avoid getting overwhelmed, and try the following 12 tips for a more organized home.

1. Arrange Your Entryway

Put a small dresser, night stand, or cube storage system (with a fabric bin for each member of the family) in your entryway. Stock it with everything you need when you leave the house: gloves and hats during the colder months, backpacks and purses, umbrellas, etc. This will eliminate the last-minute scramble to find your belongings before heading out the door to work or school.

 

Image by Katie / Flickr

 

2. Use a Cedar Chest

Place a large cedar chest at the foot of your bed and use it to store all of your extra blankets and pillows. It frees up closet space and keeps your bedding clean in between uses.

3. Two-Compartment Hampers

Invest in hampers with two compartments, and place one in each bedroom or bathroom. Teach everyone in the family to sort light and darks as they place laundry in the hampers to make laundry day quicker.

4. Weed Out Clothes You Don’t Wear

Arrange the clothes hangers in your closet with the hooks facing out toward your room. Whenever you wear something and return it to the closet, turn the hanger back in. At the end of the season, anything you haven’t turned around can be donated.

5. Deal with Mail Immediately

Open the mail over a wastebasket or recycling bin, and toss junk mail and envelopes as soon as you open them. Immediately file or take care of everything else to avoid the buildup of the pile of mail on the counter.

6. Take Pictures of Objects and Then Declutter

If you tend to hold onto objects for sentimental value (even those you’ll never use again), get into the habit of photographing the items and then donating or tossing them. That concert t-shirt you wore on your first date that’s now two sizes too small? Take a photo. The five Lego creations your son made for you last week? Take a photo and return the Legos to his inventory.

7. Clean One Room Each Day

Cleaning the whole apartment or house is overwhelming, especially for people already pressed for time. Instead of trying to clean the whole home all at once, pick a room for each day of the week and make it your mission to organize and clean just that room on its assigned day.

8. One In, Two Out

If you feel like your home is in a constant state of clutter, adopt the one in, two out philosophy. Every time you come into the home with a new item, donate or put two other items in the trash.

9. Furniture that Does Double-Duty

In small spaces, opt for furniture that performs two functions. A coffee table with shelving underneath, or an ottoman with storage space inside are two great ways to maximize your space.

10. Transition to a Paperless Home

Use a scanner to digitize paperwork and save it in file folders on your computer. Back it up with a cloud-based storage solution (so if something happens to your computer hard drive, you have another copy) and shred the physical copies of anything whose originals you don’t need. Organize your file cabinet or use an accordion file system for all of the documents you do need to keep.

11. Maintain the Medicine Cabinet

Whenever you change the batteries in your smoke detectors, also go through your medicine cabinet and clean out any expired prescriptions and medications and give the shelves a good cleaning. If you need more storage for these items, consider adding shelves or a small cabinet in the wall above the toilet.

12. Organize Toiletries

If your cosmetics and other toiletries are overflowing on the counter tops and bathroom space, hang a plastic shoe organizer on the back of the bathroom door and fill each of the pockets with your items.

The post 12 Tips for a More Organized Home appeared first on Elika Real Estate.