Gea Elika's Blog, page 171

New York City Real Estate License – Understanding Dual Agency

Making the decision to buy a home is a very big step for any individual or couple. This is especially true in New York. Although people continue to be amazed by New York’s high property prices, the market remains extremely competitive. Because finding the right home for your budget and needs can be a real challenge, you need every advantage possible. That’s why many buyers choose to work with an exclusive agent. While there’s a lot that a licensed buyer’s agent can do for you, there’s a topic we need to address before covering the benefits of a buyer’s agent.

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The Beekman

Standing 51 stories high, The Beekman is a beautiful building that provides residents with their own private oasis to call home. Not only does the building offer incredible views and a luxurious living experience, but its excellent location in Tribeca offers convenient access to all of the best that New York has to offer.

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Neighborhood Spotlight: Tribeca

Once a haven for artistic types, Tribeca or “Triangle Below Canal Street” is one of the most costly areas to live in Manhattan. Known for it’s oversized warehouse-like lofts, quiet streets, and in more recent years, a stylish set of denizens, Tribeca is recognized as not only as one of the most desirable New York neighborhoods, but in 2010, statistics proved the area to be the safest in the five boroughs of NYC.

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Buying in Manhattan vs. Brooklyn: A Cost Comparison

If you pay any attention to the New York City real estate market, you’re well aware of the skyrocketing prices throughout the five boroughs. But most recently, word on the street is that Brooklyn, which used to offer more affordable housing options, has caught up with Manhattan prices. Let’s take a look at how much or less it costs to live in areas of Brooklyn vs. similar neighborhoods in Manhattan.

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The Handyman Special: How Much Work Is Too Much?

If you’re in the market to buy a piece of New York City real estate at a bargain price, you’ll quickly discover that options are fairly limited. You could, however, search for a fixer upper and find a few more reasonably priced listings that probably use the familiar phrase “needs TLC.” But choosing to buy a property that needs renovation work isn’t necessarily a smart idea just because you can get it for a lower price.  Here’s why.

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A Peek at your Credit Score

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

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

What is FICO?

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

 

 

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

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

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

Components of your credit score

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

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

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

What does this mean for my rate?

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

Simple rules to improve your score

Simply, pay your bills on time, keep your credit card balances low (paying it off fully every time will also save you interest charges), and don’t open too many new credit lines, including credit cards.

Conclusion

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

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

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Do Buyers Need a New York City Real Estate Agent?

While purchasing a home anywhere in the United States is a major milestone, the prices found within the New York City real estate market make this purchase an even bigger decision. Although you’ll be filled with excitement when you’re handed the keys to the new home that you own, getting to that point can be a very stressful experience. From anxiety to stress to frustration, the emotions associated with buying a home can run the entire spectrum.

Because there is so much that you’ll go through on your journey to purchasing a home, it’s important to have a trusted advisor who you can turn to along the way. Since trustworthy advice  in these situations from an expert is extremely valuable, buyers should strongly consider working with a New York City real estate agent.

 

 

What is the Role of a Buyer’s New York City Real Estate Agent?

There’s a lot that goes into buying a home. Before you can get serious about looking at potential properties, it’s important to get all of your financial information in order. Because it’s common to have questions during this first stage in the buying process, it’s very useful to have someone who goes through this process on a regular basis.

Determining exactly what you can afford and ensuring you have all the financial information you need to secure a mortgage and ultimately buy your home is the first example of how a buyer’s agent can help you. Since this type of agent deals with all of these issues on a regular basis, they can help you ensure that you don’t miss out on anything important.

The next step in this process is to start looking at potential homes. As you may have guessed, this can take quite a bit of time. Not only does identifying the right set of possibilities take a lot of research, but it also requires setting up appointments to see the homes. Because you’re already busy enough juggling your professional and personal responsibilities, having an agent who can manage this process for you will save you a lot of time and stress.

Finally, the negotiation and closing phase of the buying process can be very tense. Since it can be challenging to stay objective when emotions are running high, you’ll greatly benefit from having a professional who can give you the right guidance.

The Best Way to Find the Ideal Home

If you’re ready to get serious about finding a home in New York City, it’s time for you to enlist the help of a buyer’s New York City real estate agent. Not only will you get expert guidance throughout the buying process, but you won’t have to pay anything out of pocket. Instead, the agent you choose will be compensated when the seller pays the agent’s fees in the form of a commission during closing.

The most important thing is choosing a buyer’s agent who’s experienced and trustworthy. To learn more about why so many buyers choose Elika Real Estate as their agent, learn more about our agents.

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How to Comfortably Host an Overnight Guest in A Small One-Bedroom Apartment

When we bought our one-bedroom co-op, a room for a guest was high on our list, but many New Yorkers live in such compact spaces that their living room is the only option for hosting a visitor. Don’t fret if this scenario applies to you. There are a few viable alternatives to sleeping on the floor or putting your BFF in a hotel.

If you plan well when you decorate your apartment, you should be able to make a guest or two quite comfortable, even in the closest quarters. What’s more, with the addition of a few ancillary items, you’ll be ready to host a guest in no time.

Invest in the appropriate piece of furniture to accommodate an overnight guest, such as a futon, convertible sofa, or daybed.   A futon is a fairly practical piece of furniture since it can act as or replace a living room sofa, and can almost instantly transform into a bed.

Contemporary Home Office by Winchester Interior Designers & Decorators Kristen Rivoli Interior Design

When shopping for a convertible sofa –– also referred to as a sleeper sofa –– you’ll notice that the upscale models tend to have a plusher feel, both to sit on and to sleep on. If spending several thousand dollars isn’t in your budget, a potential alternative is a daybed.

Ultra practical, a daybed can act as a sofa and be a bed too. Placed against a wall with pillows lining the back, you can use a daybed as your sofa by day, and then swap out the decorative pillows for bed pillows by night.

Be sure to have high-quality sheets for whichever piece of furniture will serve as a guest bed. Having a storage trunk or chest to store the pillows and linens is also a great idea if space permits. Although NYC apartments rarely get cold, have an extra blanket or hand as well.

Create a place for your guest’s belongings. Whether you can free a corner in your living room for a luggage rack, or have a freestanding piece of furniture with drawer space, your guest will appreciate having a place to unpack and get organized.  And you’ll avoid the clutter in your living space.

Eclectic Living Room by New York Photographers Rikki Snyder

Be thoughtful and clear a few inches in your closet for your friend’s hanging garments, as well as bulkier items such as boots and winter coats.

Invest in a comfy bathrobe just for guests. A terry cloth robe will make your friend or family member feel at home and they won’t be prancing around your apartment in a towel. Keep the robe on a hook in the bathroom along with soft, fluffy towels.

Traditional Bathroom by Denver Architects & Building Designers Ashley Campbell Interior Design

Spruce up with flowers or plants. Fresh flowers add color and will brighten your apartment. Just be sure your guest doesn’t have allergies. If you have enough light, a houseplant or two can bring life into a space that might otherwise look drab and boring.

New Yorkers aren’t known for keeping stocked fridges, but if you’re hosting a guest (or two) have a variety of beverages including coffee, and some basics such as eggs, milk, and fresh fruit for snacking. Point your guest to the nearest bagel shop, as almost everyone who visits New York City wants a fresh bagel with cream cheese in the morning.

Most importantly, to make guests feel comfortable in a tight space, ask if there’s anything in particular they need. Not only will friends and family appreciate your kindness, but extra thoughtfulness will personalize their stay.

Contemporary Bedroom by New York Architects & Building Designers Axis Mundi

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The State of Luxury New York City Apartments in 2015

When compared to competing global markets, the value of luxury New York City apartments have grown more over the past year. Out of a total of twenty luxury markets, New York City topped the list with an 18.8% increase. The next highest market was Aspen, which saw an increase of 16%.

Rounding out the top five were Bali and Istanbul, which tied with a 15% increase, followed by the 14.7% increase in the Abu Dhabi luxury market. And even though there’s been a lot of talk about the rising costs of the San Francisco market, the luxury segment came in sixth on this list with a 14.3% increase.

Luxury New York City Apartments vs. London

Although there were concerns that the proposed pied-à-terre tax by NYC Mayor de Blasio would discourage high-net-worth buyers from making purchases in the New York City luxury market, that hasn’t occurred as of yet. However, it is worth noting that one of the reasons that London didn’t make this list is because of its new purchase tax. Since the tax had a direct impact on the cooling of London luxury purchases over $2.95M, the city’s entire luxury market grew by only 5.1%.

3 New Luxury Developments to Consider

Since the market for luxury New York City apartments continues to grow, we want to highlight some of the developments that are setting the stage for this market in 2015 and beyond:

210 West 77th

This location is home to a total of 25 units. Spread out over 18 floors, the price range for this building starts at $4.975M for a 3 bedroom and goes up to $12M for a 5 bedroom. It’s worth noting that the 5-bedroom property includes a full 1,283 square feet of exterior space. Major selling points of this development include its two private marble steam rooms and a cedar lined sauna, as well as its highly desirable location in the Upper West Side.

52 Lispenard

The seven exclusive units of 52 Lispenard are conveniently located in the heart of Tribeca. Pricing for a 5 bedroom with 3,432 square feet is $6.65M, while the asking price for a 4 bedroom with 3,804 square feet is $7.5M. Since this building is defined by high ceilings and lots of natural light, it creates a very desirable living environment for residents.

The Chatsworth

For buyers who value the history of New York City, it would be hard to beat everything that this 111-year-old building has to offer. With a total of 81 co-ops, The Chatsworth boasts an enviable location on the Upper West Side. Pricing for 2 bedroom residences range from $2.3-$5.25M, while prices for 3 bedrooms start at $6.1M.

How to Find the Right Luxury Apartment in New York City

If you’re ready to make a purchase in this market, find out why working with a buyer’s agent is the best way to find the ideal property in the city with the world’s hottest luxury real estate market.

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Neighborhood Spotlight: Fort Greene, Brooklyn

Recognized for its tree-lined blocks and intimate feel, Fort Greene is listed on the National Register of Historic Places, the New York Registry and is a New York City-designated historic district. A charming Brooklyn enclave since the 19th century, Fort Greene’s future looks bright, and even more culturally distinct than its past.

Considered one of the most diverse parts of Brooklyn if not the entire city, Fort Greene’s gentrification hasn’t ousted the neighborhood’s African American roots, but rather synchronously integrated other cultures. Famous faces that have walked Fort Greene’s streets include Spike Lee, Walt Whitman, Robert Mapplethorpe, Keri Russel, Chris Rock, and Wynton Marsalis.

The Neighborhood

Fort Greene is situated between Clinton Hill and Downtown Brooklyn. The Brooklyn Navy Yard sits to its north, and Atlantic Avenue lies at the southern border. Known for its gorgeous examples of mid-19th century Italianate and Eastlake architecture, the neighborhood has long been home to brownstones, brick townhouses, and single frame residences. Fort Greene’s face is changing, however, particularly on the western edge.

 

 

New luxury housing developments continue to rise in the midst of performing arts centers such as Theater for a New Audience’s Polonsky Shakespeare Center, and the BAM (Brooklyn Academy of Music) Fisher Building, which opened in 2012. An upscale Marriot property called “Autograph Collection” is underway as well, with plans to open this year. The new “Brooklyn Cultural District” will provide hundreds of housing options and new jobs for Brooklynites, as well as a complete facelift to the neighborhood.

What to do

Living in Fort Greene brings plenty to do. Fort Greene Park is a major attraction for the area’s denizens. Appreciated for its majestic trees, the parcel is a hub for gathering and socializing as well as shopping at local farmer’s markets. People from all walks of life can often be found  relaxing, shooting basketballs and hitting tennis balls, or playing with their children in the park’s playground.

Founded in 1861, BAM hosts performers and concerts year-round. Drawing people from all over the New York City metro area as well as from around the world, the venue has its own four-screen cinema as well as a bar and restaurant.

 

 

Famed Brooklyn Flea, the large indoor/outdoor market  boasts more than 150 vendors selling vintage furniture, handcrafted jewelry, and delicious foodstuffs such as lobster rolls, tacos, hot dogs, and more. Get in touch with your literary side while you meet and greet some of Fort Greene’s authors at the Greenlight Bookstore on Fulton Street.

Foodies will appreciate the myriad dining and drinking options in the neighborhood. Favorite spots include Prospect, Walter’s, and Colonia Verde.

For grab and go, Farmer in the Deli has been a staple in Fort Greene for years, and supposedly makes the best sandwiches in the neighborhood. And caffeine addicts can sip their preferred cup of Joe since the area has its share of coffee houses, some of which offer free Wi-Fi.

Shoppers won’t run out of choices in Fort Greene, either. Beyond its indie shops, Atlantic Terminal Mall is a fixture in this section of the borough.

What it costs

Expect to pay in the $800,000 range for a one-bedroom condo. You might find a shoebox for less, but for a generous amount of space, prices tend to climb toward the million-dollar mark. You might come across a few reasonably priced co-ops in the neighborhood, but townhouses generally start around $2.5 million.

Transportation

Close to the Atlantic Terminal railway station, the neighborhood has access to a multitude of subway lines. The B/D and N/Q/R trains pass through the DeKalb Avenue station, and the 2/3, 4/5, B/D N/Q/R pass through the Atlantic Avenue – Barclays Center. Also, close by at Lafayette Avenue are the A/C trains, and the G train at Fulton Street. The LIRR is also served in Fort Greene, and the area is accessible by several bus routes.

 

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