Gea Elika's Blog, page 94

Pros And Cons Of Buying a Co-Op Apartment

What is a co-op?

There’s a big difference between co-ops and condominiums. Condo buyers own the property they live in. A co-op apartment is a share in the corporation that owns the building. The purchaser of a co-op is a shareholder, not an owner. Here’s a breakdown of the pros and cons of co-op living:

PROS

Cost: Co-op apartments are less expensive than condos. Buyers jump through hoops to get their co-op apartment. There are also restrictions concerning renovations and selling. This discourages people from buying co-ops. Therefore they cost less than condos.
Low Maintenance Fees: In most co-op buildings, workers handle all repairs, maintenance, and security. Co-op owners save money over the years.
Stability: Co-ops are more stable than condos. The vetting process is a con. But it’s also advantageous. Co-op boards review each buyer’s finances and references. Owners cannot freely use their co-op as an investment rental property. The board also considers if the buyer is good for the building. Therefore the building avoids an influx of guests.
Less Risk of Value Depreciation: Co-ops outperform condos in market downturns. The vetting process eliminates the risk of investors buying shares and liquidating in times of hardship.
More Options: More than 70% of NYC housing stock is co-op.

CONS

Occupancy Rules: Co-ops do not allow part-time residence. Buyers cannot purchase their unit as investment-only. The co-op prioritizes stability within the community.
Locals Only: International purchasers are usually prohibited.
Interview Process: The interview digs into buyers’ personal and financial lives. You can read about the co-op board interview process in this Elika Insider blog.
Rejection: You may be rejected. Then you start at square one once again.
Financing: Co-ops require higher down payments than condos. Some co-ops reject buyers using loans to finance their purchase.
Renovation Restrictions: The co-op board controls changes to units. Some prohibit renovations, like adding another bathroom. Others do not allow a washer and dryer.
Flip Tax: Co-op owners pay a flip tax. The amount ranges from 3-5%. This money builds up the building’s financials.
Selling Restrictions: The co-op board approves to whom you sell. You may lose a buyer if the co-op board says no. Then you’re back on the market.

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What is a Lien and What can I do if my Property has One?

When trying to sell your property the question of liens may come up. Having one on your property means the transaction can’t go through until the lien has been dealt with. They’re a standard part of real estate transactions, and if you want to avoid unexpected delays in a sale, they need to be clearly understood. Here’s the lowdown on property liens, what they are, how to find out if a property has one, and how to get it removed.

What is a lien?

A lien is a legal claim or right against a property for unpaid debts. Its purpose is to act as a security for someone who can repossess the property or take other legal actions to satisfy the debt. For instance, if you haven’t paid your real estate taxes, the government may impose a lien on your property. Private contractors can also place liens if they haven’t been paid for work they did on the property.

For example, imagine that you’ve bought a property through a mortgage. However, the lender requires a better guarantee then your signature, so they have the mortgage documents filed at the local government office. The lender has now become the lienholder (a person or organization that holds the lien). This secures a debt and gives the lender a better chance of being repaid for the loan. If the loan is not repaid the lender may have the right to claim and resell the property. Liens are also a signal to other creditors. If you apply for another loan, they will see that they won’t be the first in line when it comes time to be paid. This typically makes it almost impossible to sell or refinance until you have paid off your outstanding debts.

How is a lien found?

Before a property can be sold, it must go through due diligence. As part of this process, a title company will be brought in to search public records for any liens against the property. There are several types of liens:

Home Loans – When you take out a home loan to finance a purchase the home will serve as the collateral. As part of the loan agreement, the home can be repossessed if you fail to keep up your end of the bargain. For instance, making monthly payments, insuring the property or living there as your primary residence for several years.Construction Liens – Contractors can also file liens if they haven’t been paid for work they completed. This also applies to sub-contractors when the contractor hasn’t paid them even if the homeowner is not at fault.Judgment Liens – If you lose a lawsuit and can’t pay back immediately then the creditor (the person who won the lawsuit) may file a lien against property you own.Tax Liens – If you fail to pay current taxes to local governments or the IRS they can place a lien against your property. This is very bad news as tax liens can be attached to current and future assets. The IRS can even jump the queue and collect before other creditors.

Most sellers are aware of liens against their property, but it is possible to be caught unawares. You may have received a recent lien for which you haven’t been notified of yet, or the lien could be so old that you’ve just forgotten about it.

How to remove a lien

If a lien is found, you’ll be informed by the title company how much it is and who you need to pay. Until the debt is paid or the lien released, you won’t be able to sell the property. Once it’s been settled, you’ll receive a “release of lien” from the entity that originally filed it. You have several options for how you deal with it.

Pay it off – If the lien is legitimate then merely pay it off to get it removed. This is a pretty straightforward process.Settle – It’s possible to negotiate with the creditor if you can’t fully pay off the debt now. Some creditors are willing to accept less if they can get something now and put the loan behind them.Get it corrected – if you have good reason to believe a lien is not legitimate then contact the lienholder to have it fixed. It’s possible that the lien release got misplaced or lost in an earlier transaction.Dispute it – Things can get very complicated if you have to start legal action to get a lien release. Make sure you have reasonable grounds for a dispute before starting this process. For instance, a lien from the previous owner may have gone undetected during your title search on the property. Dispute though can be very long and costly. Most attorneys will advise just paying the lien as the best way to move the sale forward.

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Mistakes to Avoid When Buying and Selling at the Same Time

Buying a home can be a pretty exciting time as you think about moving day, decorating ideas and your future. Selling a home can also be exciting as you look forward to that fat check at the end. But buying and selling at the same time? That’s something you’ll want to handle carefully if it’s to go off without a hitch. Selling your current home to raise funds for the next one is pretty common in real estate transactions, but the stakes are high. If the buyer backs out, you’ll be left with no cash to fund the home purchase. If you so sell, but the home purchase falls through, then you’ll be left homeless. While there’s no way to protect yourself against everything that can go wrong, you can avoid the more predictable aspects. Here are six mistakes to avoid when buying and selling at the same time.

1. Waiting too long to prep your home for selling

Before a home can be listed, it has to be spruced up a bit. The walls might need a new coat of paint, the carpets a deep clean and the rooms will have to be decluttered. This takes time and when you’re simultaneously buying and selling it’s shouldn’t be left to the last minute. Start prepping your home for selling before you start submitting offers and visiting open houses. Otherwise, you could get an accepted offer only to find yourself scrambling to get your home ready for selling. With the current buyer’s market in NYC, you may not have a hard time finding a place to buy but finding a seller will be a different story.

2. Not having a backup plan

A real estate transaction has a lot of moving parts, and when you double the size of the transaction, then the chances of something going wrong goes up. Scheduling for a closing day that will suit you (for both transactions) will be especially difficult. Have a backup plan ready to go if can’t buy and sell at the same time. An emergency fund will provide the cash needed for a short hotel stay, but you may also have to look into a short-term rental. Your guiding principle through all this should be “Hope for the best but expect the worst.”

3. Buying too big

One of the most common mistakes that simultaneous buyers and sellers make is the same one first-time buyers make; they make their eyes bigger than their stomachs. Before you begin shopping for a new home, it is vital that you get pre-approved for a mortgage. It’s the first step towards getting qualified for a mortgage and will give you a good idea of how much you can expect to be approved for. Otherwise, you’ll waste your time looking at homes that you can’t afford. Know what to expect, and it’s less likely that a deal will fall through.

4. Not having a large enough cushion

The real estate market can be very volatile. Even a safe haven like New York isn’t without sudden price drops and times in the year when the market goes cold. You need to sell your current home for a minimum amount to pay for your next one. But ask yourself, can you still do that if the market softens and you have to revise your asking price by say $20,000? If not, then you can wish goodbye to your down payment. Give yourself a little cushion on what you need to sell for to pay for a new home. If you need all the money you’ll make from the sale to complete the purchase then it’s better to assume you’ll get less than expected.

5. Agreeing to too much just to get the deal done

With handling two different transactions at once, you’ll be under a lot of pressure during negotiations. Those you’re dealing with may be aware of your situation and could be using that to make extra demands. Don’t cave in just because you want to get the deal done. Make sure you’re okay with what you agree to and that you’re not being taken advantage of. If you need time to think something over, then tell them. Yes, this will delay the closing, but that’s better than an expensive financial mistake.

6. Using two different real estate agents

Things are already messy enough with handling two transactions at once, don’t make it messier by having two real estate agents. Instead, have one agent who can coordinate both for you. You’ve got a far better chance of closing on both simultaneously this way. The only exception to this would be if you’re moving between states. If an agent you like works exclusively with either buyers or sellers, not both, then ask for a recommendation within their own brokerage. You can still keep things smooth if both transactions are under the same roof.

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What are the Most Affordable Apartment Types with the Most Space in NYC?

It’s not easy keeping up with daily expenses and the costs of housing in NYC. The city offers no end in excitement and opportunities, but all that comes at a price. When it comes to housing, that price comes in the form of either high rent or very limited living space. Given a choice, most New Yorkers are willing to sacrifice space if it means living in a hot neighborhood or a building with incredible amenities. But if you like hosting parties with more than ten people or weekly yoga classes, then space might be a concern. Generally, the further out you go from Manhattan the more space you’ll get for your buck. However, there are other ways you can save on money and get more space. Here we have a list of apartment types that will get you more space for your money.

A First-Floor Apartment

Everyone wants a nice view from their apartment, and that view tends to come with a higher price tag. One easy way to save on housing is to choose a first-floor apartment. On average, the difference in price between a first and second-floor apartment can be as much as 15%. As you move up each level, it tends to go up by another 10%, which makes the difference between a first and third floor as much as 25%. Just keep in mind that in a walk-up apartment (no elevator) this will be reversed.

A Walk-Up

Speaking of walk-up apartments, that’s your next option. If you don’t mind walking up a few flights of stairs each day, then this can translate into significant savings. Compared to an elevator apartment, the price difference between each floor can be as high as 5%. Adding to that, your legs are going seriously toned within a few months of living in a fifth-floor walk-up. But if you’re planning to spend your golden years there, then this might not be an ideal choice. Also, these types of units are typically located in buildings with six levels or less. Buildings with more than six floors must have an elevator.

A Post-War Apartment

Pre-war apartments are highly sought after for their high ceilings, thick walls, crown moldings, and other architectural details. But all the charm comes at a high price. If you want something cheaper, look instead for post-war apartments. These are buildings built just after WW 2 when there was a housing shortage. As such, they’re usually less extravagant and come with simpler furnishing. But the one major trait they still share with pre-war apartments is spacious floor plans. They may not come with all the modern amenities and floor-to-ceiling windows that you’ll see in new developments buts that exactly why they go for a lower price.

No-Doorman Buildings

No doubt, a doorman is a great extra to have. They can receive packages for you and provide an extra layer of security. But if you want more space for less then they’re an extra you’re better off without. Narrow your search down further by looking for non-doorman buildings.

Unpopular Layouts

Simple economics tells us that the more demand there is for something, the higher the price and vice versa. Open-plan apartments are currently all the rage in NYC. These are apartments in which the kitchen, living room and dining room all seamlessly blend into one. But if you prefer a traditional setup with a separate room for each area, then you stand to get a better price. Look into what the latest design trends are in the city and then look for something else.

Final Thoughts

Unless you’re in the Fortune 500, it’s just not possible to find an NYC apartment that covers all your wants and needs. You’ve got to prioritize things and make sacrifices. If space is one of those priorities, then be willing to go without an elevator, doorman, popular layout or all three. Talk with a local real estate broker and let them know what your priorities are and what your willing to go without. If space is a priority than the others really won’t feel like sacrifices when it comes time for the next dinner party.

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How Much do Real Estate Agents make in NYC?

It is easy to think that becoming a real estate agent is a road paved with gold. As with many professions, those with the right attributes, which include diligence, hard work, intelligence, and drive, make a good living. There are a select few that do better than that and earn enough to become truly wealthy.

It is not for the faint-hearted, however. This is particularly true in the ultra-competitive New York City real estate market.

Commission structure

In the typical arrangement, real estate agents are paid strictly on a commission basis. There is no salary or even a draw. This means an agent is only compensated when a deal closes.

Traditionally, the total commission rate is 6% of the purchase price. The agent/broker negotiates the amount with the seller, so this is not a hard and fast rule. You could see a full-service firm lower the rate to 4% – 5% based on some factors. Assuming a 6% commission, this leaves 3% for the seller’s brokerage firm, which is then divided with listing agent based on their commission split agreement.

If the buyer has representation, it is customary to split this evenly with the other firm. Therefore, the buyer’s brokerage receives 3% (further divided with the agent), assuming the 6% commission structure.

A wide range

The average New York City real estate agent makes approximately $80,000. This is misleading, though. Given New York City’s high real estate prices, there is an opportunity for agents to make a lot of money. However, many do not make a dime. There are also those that work on a part-time basis.

There is an old saying that 20% of a company’s sales force represents 80% of the total sales. We have heard it is even more lopsided for New York City’s real estate market, with 90% of the closings completed by 10% of the agents.

For buyers, you want to pick an agent that has staying power. When you interview the agent, it is advisable to ask questions such as how long he or she has been in the business and how many deals he or she closed on in the last year.

Exclusive Buyer’s Agent

We suggest having your own representative. An exclusive buyer’s agent represents your interests in the deal. The seller pays the entire commission cost, so having a buyer’s agent is a prudent option. If you chose to go it alone, the listing agent and his or her brokerage merely split the entire commission.

Your buyer’s agent can help you through the process, without you having to pay a dime. These are a myriad of items, including sorting through listings, crafting an offer, compiling your board application, and helping you prepare for your interview in the case of a co-op purchase.

Final thoughts

The process of selecting either a buyer’s or seller’s real estate agent, with a plethora to choose from, is a challenging endeavor. But, venerable agents have proven their staying power. They know how to close a deal and have mutual respect for the players in the process

It is also important to remember that your agent earns his or her entire living based solely on commissions. You should undoubtedly expect him or her to provide you with top-notch service, including answering all of your questions and not rushing you off the phone. However, you need to respect his or her time, too.

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What is Equity and Why is it Important?

You’ve probably heard how homeownership builds wealth, usually with the word “equity” mentioned at some point. Whether you’ve already committed to buying a home or you’re just looking into how the buying process works, you’ll hear the word a lot. It’s a term that causes some confusion for new arrivals to the real estate game. Making sense of it is essential if you want any investment or home purchase to pay off in the long run. So what is it and why is it important?

What is equity?

Equity is the current appraised value of your property minus any loans you’ve taken out against it. Put another way it’s what you own, minus what you owe. Sure, your signature may be scribbled on the deed, but until you’ve paid off the mortgage, you technically own only a share of the home’s value. You can easily calculate your current equity by subtracting the amount you owe the bank from the current market value of your home. The best way to think of it is as a savings account or investment. The value is tied up in the home and can’t be accessed unless you sell or use it to take out a second mortgage (more on that later).

Let’s imagine you bought a home in New York for $400,000. To secure a loan you made a 20% down payment of $80,000 and received the loan for the remaining $320,000. That $80,000 you made as a down payment now represents your equity. You may be the homeowner, but for now, you only own $80,000 worth of it.

How can you build equity?

There are three ways in which your equity can grow: market appreciation, forced appreciation, and debt reduction.

1. Market Appreciation

This is when factors in the local, state or national economy undergo changes that affect property values. This can happen when a neighborhood experiences a sudden influx of jobs and population growth with demand outpacing housing supply. Taking the same example from above, let’s imagine your home’s market value rises to $500,000 and you still only owe $320,000. Your equity on the home is now $180,000. The exact opposite can also happen. If the market value on your home falls then so does your equity.

But don’t think you’ll get sudden increases like that. Market appreciation is a long-term game but one that can pay off if you stay in it long enough. Since it depends on market forces, it’s mostly out of your control. But you can put things in your favor by buying a property in a neighborhood which is predicted to experience significant growth in the coming years.

2. Forced Appreciation

Unlike market appreciation, you have more direct control over how this affects your home equity. Forced appreciation is when you invest in your home by making renovations that raise the market value. Major improvements like installing a new kitchen or bathroom can effectively pay for themselves so long as your costs don’t exceed the increases in market value. Make sure as well to choose the right renovations that will pay off by increasing the market value.

3. Debt Reduction

Debt reduction builds equity by paying down the principle on your mortgage. Since most of your early payments go towards the interest rather than the principal of the loan, you can speed things up by making extra payments on the principal. Doing this early on not only builds equity but also reduces the interest you will pay over the lifetime of the loan.

Why is equity important

Your home’s equity is an asset and contributes to your overall net worth. As a loan purchased asset, it’s truly a unique one. Unlike a car, which loses value as you pay it off, your home can gain in value. How you use it is entirely up to you, but if you want to make the most of it, it’s better to be in for the long-haul. There are three primary ways you can put it to use.

Buying a new home – If you don’t plan on staying in the same house forever, then you can sell and use the money from that purchase to make a down payment on a new one. The more equity you build, the more capital you’ll have left over after the sale. This is a common way of upsizing to a bigger home every decade or so.Borrow against the equity – it’s even possible to tap into a home’s equity without selling. You can do this by taking out a home equity loan (also known as a second mortgage). There are two types of loans like this, home equity loans and home equity lines of credit (HELOC). But this can be risky and should only be used as a way to increase the home’s value through renovations.Fund retirement – Somewhat similar to a home equity loan, you can draw on your equity by taking out a reverse mortgage in your golden years. These are loans only available to retires and don’t come with monthly payments. Instead, you receive money each month with the loan not coming due until the borrower leaves the house. The loan is then usually paid off by using the proceeds from the home’s sale. However, these loans can be complicated and create a lot of problems for your heirs.

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Uncovering Costly Building Assessments That Apartment Sellers Want to Hide

Nasty Surprises Await Condo & Co-op Buyers Who Don’t do a Little Detective Work

Isn’t it a nice surprise when you reach into your pocket or purse and find a couple of $20 bills you forgot you had? Those are the type of surprises we wish happened more often. There are, however, surprises that we can do without, particularly if you are a condo or co-op buyer. In many instants, sellers hide costly repairs that the building plans to undertake. They hope the new buyer will be stuck with the bill after the property is sold.

Often these repairs are quite costly. The new condo and co-op owners will be “assessed” to pay for them. No buyer wants to open their mail, shortly after moving in, to see a $10,000 assessment to redo a roof or repair the elevators. If buyers knew this beforehand, many would simply walk away. Others will demand a major price reduction. It’s little wonder that sellers want to keep this stuff under wraps.

An Assessment Bushwhacking

New buyers who get bushwhacked by “surprise” assessments usually have only themselves to blame. The law says sellers must provide “full disclosure” about their property prior to a sale. However, many will not mention an upcoming assessment, assuming, that is, they know of it themselves. It’s up to the buyer to do their due diligence and find out if a nasty surprise awaits them after the closing.

This is particularly true in cities like New York and L.A. where a large percentage of the housing stock consists of condos and co-ops. New York, in particular, is prime territory for assessment bushwhacking because it has a lot of aging buildings, many in need of costly repairs.

Become a Detective

There are a number of ways buyers can uncover pending building assessments.  Buyers have to put on their Sherlock Holmes cap and do some digging. The first thing to do is take a close look at the building itself. Does it look rundown and not well maintained? Is the lobby furniture dog-eared? Is the exterior in need of cleaning or a paint job? These a sure signs that either the building is being neglected or that the current board of directors is not charging owners enough in monthly maintenance fees to properly maintain the building. If this is the case, you may get whacked twice. Once for an assessment and another in increased monthly maintenance fees.

A little personal sleuthing can uncover upcoming problems as well. If the building has doormen, ask them about the place. These guys know everything. They know if elevators are constantly out or if people are complaining about the heating system. They are typically the recipient of tenant complaints.

Tap the Gossip Channel

If you know other owners in the building or have a friend who does, they are a great source of building gossip. People often talk about problems within the building. Also, current owners have access to building newsletters which are often used as forums to address shortcomings such as leaky pipes, faulty air conditioners or barking dogs.  

Hire a knowledgeable buyer agent and lawyer

Perhaps the best way to determine if an assessment is pending is to hire a seasoned real estate agent. They usually know the right questions to ask and can research the history of the building or may have had the experience of working with the building before.

Some states, including New York, but not California, require that a lawyer be involved in this transaction. An experienced real estate lawyer will sift through the building’s financial statements to see if there are any red flags indicating upcoming repairs.

Check the Reserve Fund and Boardroom Minutes

These financial documents also show how much there is in the building’s reserve fund. These funds exist to cover unforeseen expenses. Many buildings underfund their reserves so when something breaks down, the only way to pay for it is to assess owners.

A lawyer also can examine the minutes of the building’s annual board meetings. This often reveals persistent problems or upcoming maintenance projects. Buyers usually have five to seven days after the offer has been accepted to conduct this sort of due diligence.

It is never a bad idea to hire a lawyer, even if you’re not required to do so. Buying an apartment is likely a person’s largest single financial transaction. Nobody wants to find something costly was overlooked after the closing. When agents and lawyers work together as a team, it can only benefit the buyer.

Sellers Almost Always Hide Problems

Most condo and co-op sellers won’t hesitate to put a potted plant over a scuffed-up floor to hide a blemish. Others have no problem hanging a picture over a hole in the wall put there by a hockey puck gone astray. And some will go to great lengths to keep upcoming owner assessments from coming to light before the ink dries on the sales contract.

It’s left to buyers to uncover these omissions.

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The Full Guide to Rent Stabilized Apartments in NYC

In New York, there are two types of renters, those who live in rent-regulated apartments and those who don’t. Most of the time, the latter group badly wants to be part of the first, and for a good reason. With rents in NYC so high (and going higher every year) many people are in desperate need of affordable housing. Finding a rent-stabilized apartment will mean getting a series of guarantees and protections that regular market-rate renters don’t have. Primarily, the safety net of relatively predictable rent increases and automatic lease renewals. But even with about one million rent-stabilized apartments in the city (comprising roughly 44% of the rental stock) finding one of these apartments isn’t so easy. To give you the best chance of finding and holding onto one, this full guide will take you through all the ins and outs of rent-stabilized apartments in NYC.

Rent controlled and rent stabilized apartments

When on the hunt for an NYC apartment on the cheap you’ll often encounter these two terms. It’s important to establish right from the start that these are not the same things. Both come under the broader term of rent regulations. New York, starting in 1943, was the first state in the nation to adopt these laws as a way to ensure affordable housing. Since then rent regulation laws have changed substantially.

The oldest of these which is still in effect is rent-controlled apartments. Unfortunately, you can pretty much forget about scoring one of these. To qualify as a rent-controlled apartment, the unit must be in a building that was built before 1947. In addition to that, it also has to have been occupied by the same family since 1971. Such units can only be passed down through the family, and the receiving heir has to have lived in the apartment for at least two years before the death of the previous leaseholder.

A newcomer to the NYC rental market stands a much better chance of landing a rent-stabilized apartment but these still come with restrictions. The benefits, as with rent-controlled apartments, include a maximum amount by which a landlord can increase the rent, the right to a lease renewal each year and protection against arbitrary eviction. To qualify as a rent-stabilized apartment, a unit must be in a building that:

Was built before 1974
Has more than six units
Is not a condo or co-op building
Has not been previously deregulated through vacancy decontrol

Also, the unit itself cannot be priced (presently) at over $2,700. If the rate goes above this, then the apartment can be deregulated. Each year the rent increases are set by the Rent Guidelines Board. At present, the rent increase for lease renewals is:

1-year lease: 1.5%
2-year lease: 2.5%

This is set to expire on September 30th, 2019, meaning that if you sign a lease before then, these increases will apply to you. The RGB will take another vote in June this year to determine what the increases for 2019-2020 will be. You can check their website to keep up-to-date with the latest announcements and read more into the intricacies of rent regulation laws. In particular, you’ll want to look into the laws regarding deregulation of stabilized apartments.

Rent stabilization is still not 100% secure

Everyone wants a rent-stabilized apartment because of the security they provide. But don’t fall into the mistake of thinking there will never be any sudden rent hikes. A few exceptions and loopholes currently exist that allow landlords to raise the rent year-round.

Improvements to the apartment – If a landlord makes any new improvements to your apartment, such as renovations or installing new appliances, they can pass on 1/40th (buildings with 35 units or less) or 1/60th (those with more than 35) of the cost to the tenant in the form of higher rent. To do this though they must first get written permission from the tenant.
Capital upgrades to the building – if a landlord makes major upgrades to the building, like installing a new boiler, they can raise the rent by spreading it over a number of years. However, tenants can challenge this in court if they can prove the upgrades were unnecessary or that the cost of upgrades doesn’t justify the rent hike.
Getting rid of preferential rent – This is when a tenant is paying less than the standardized legal rent, usually because the legal rent is higher than the average for a neighborhood. A loophole currently exists that allows landlords to raise the rent to the legal amount once the lease is up for renewal. You can protect yourself against this by checking the wording in your lease. If the lease only states your preferential rent rate and makes no mention of the legally regulated rent, then your rent cannot be raised to the legal rate at the end of your lease. But if the lease cites both different rates, then your rent can be raised to the legal amount once it’s time for renewal.

How to find rent-stabilized apartments

The problem with finding a rent-stabilized apartment isn’t low inventory. It’s mainly because those who find them tend to hold on to them. They typically won’t be advertised as landlords can easily find new tenants through the family or friends of vacating tenants. But if you’re determined to find one then get ready for what could be a long search. The first place to look is the database of the Rent Guidelines Board. But the PDF files the lists come in can be a chore to work through. Another useful source is the DHCR’s website, which allows you to search by address. The only catch to these two recourses is that they don’t say which units in a building remain stabilized.

Employing the services of a real estate broker can help speed things up. But ask them first to demonstrate that they have a good network of contacts across the city. Narrow down your search by finding buildings constructed between February 1st, 1947 and January 1st, 1974. You can also leave out condo and co-op buildings and any units priced over $2,700. Keep your ears close to the ground, dig deep in your search and stay patient. You may get lucky.

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Do-It-Yourself Home Repairs

You may decide your New York City condo or co-op needs some sprucing up after you have completed your purchase. Alternatively, perhaps you have been living there for some time and would like to do some upkeep. You may find hiring a contractor for a large job is the prudent course. But, there are basic jobs you may discover, to your surprise, which you can easily handle.

These do-it-yourself projects should save you a considerable sum of money.

Common charges vs. maintenance fees

We have mentioned doing work in your condo unit and co-op. The key difference is that you are a shareholder in a co-op while in a condo you own the airspace between your walls.

The two ownership structures result in a difference in what your monthly charges cover. Condo owners pay a monthly fee to maintain and fix common areas, such as the lobby, and certain amenities. In a co-op, shareholders’ maintenance includes a range of repairs such as plumbing and electrical.

You may wish to have certain work done in your co-op, but the process is typically more arduous. For certain jobs, you may need the board’s approval. While other work may not need the board’s blessing, it is wise to check with the management company before you start the project. You should not merely assume you can go ahead without their permission.

Painting

Painting intimidates many people. But, if you have the time, this can truly save you a lot of money in labor. The key is the prep work. You need to move things out of the way (you have to do this anyway, but a painter usually moves the big stuff), put down drop cloths, tape, scrape, and spackle. You may have to apply primer, depending on the new and existing colors, and finally, paint the room.

The key is to take your time and not rush the process. For your protection, you should wear safety goggles.

If you are merely patching a small hole in the drywall, this is an easy fix, too. First, clean the area, use a putty knife to fill the hole with spackle, and sandpaper it once it dries.

Basic plumbing

These items likely apply more to condo owners since a co-op shareholders’ maintenance fees probably cover these items.

Rather than calling a plumber, there are certain basic jobs you can do yourself. Your first step to tackle a clogged sink is to snake the drain. You may have to clean out the trap (the curved piece of pipe below the sink).

Similarly, for a clogged toilet, a plunger may very well do the trick. After that, you can snake the drain.

If these basic steps do not work, you may have to call a plumber. But, you may very well solve the problem since these are typically a plumber’s first steps.

Basic electrical

Electricity is another area that makes people nervous. This is understandable since not doing the work correctly can result in a severe injury and major damage. However, there are some jobs that are easy to accomplish, such as changing the light switch,

As a note of caution, make sure you turn off the electricity before doing the work. You need to remove the faceplate and then the switch. There are two wires that you should test to ensure there is no electricity running through them. Once you connect these wires to the new switch, you are all done.

Reaching out for help

You can use the Internet as a source at any time during the job. There are sites such as YouTube that have instructional videos. If these are not helpful, you can go to your nearest hardware store, such as Home Depot or Lowe’s, and ask someone who works there for advice.

Lastly, if all else fails, you can call in a professional to finish the job with the knowledge that you have given it your best.

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Red Flags when Viewing Home Listings Online

Looking at online home listings can be a bit like using a dating app. You scroll through different profiles swiping left and right until you have a list of a few favorites. You then read through each profile, narrow down the list further, and email the real estate agent to set up a meet-and-greet. But just like a first date, the initial meeting can turn out very different to what you expected. Strategically shot photos and industry buzzwords like “cozy” and “unique” are frequently used to hide a home’s less glamorous features. If you want to save yourself time and energy, you need to identify red flags that say a listing may not be what you anticipate. Here are four red flags to watch out for when viewing online home listings.

Photos at odd angles or taken with a fish-eye lens

Photos are the bread and butter of every home listing. But as we’re all aware in this age, photos don’t always tell the whole truth. It’s standard practice when selling real estate to use listing photos that make a room look bigger or more appealing. Anyone who’s shopped for a home before knows this. Be on guard for any listing photos that don’t show a room from multiple angles. The sellers may be trying to hide something. Don’t waste your time either with listings that have no photos. That usually means that the apartment is either in terrible shape or has a floorplan that is difficult to photograph.

Be especially suspicious of photos taken with a fish-eye lens. These are camera lenses that warp the view of a shot to make the foreground look bigger, and the background looks further away. Pay attention also to what you do see. If the windows look especially bright or are frosted over, that may not mean that you’ll have a lot of natural light. Instead, it could be a way to cover up that the windows face a brick wall or other undesired exposure. It’s one thing to stage a shot and quite another to use tricks to make a room look like something it’s not.

Heavy use of real estate “buzzwords.”

Just as photos can be used to inaccurately reflect how a home looks, so can the words in the listing description. If the description includes a lot of industry buzzwords like “quaint,” “up-and-coming neighborhood” or “cozy” then that’s a cause for concern. Such words are usually a form of doublespeak, meaning they don’t reflect what the words actually mean. Consider it a red flag when you see listings using these words:

Cozy/Quaint – The apartment or house is very smallTLC – Usually means the property is in need of major renovationsUnique – Too unique or way out thereCharming – Often means dated

What you want to find is listings with detailed descriptions, not ones with obscure language. Country houses make use of some of these words as a positive but when an NYC apartment is described this way it’s rarely a good thing.

For sale by owner (FSBO)

Be wary of any listing where the seller is not represented by a real estate agent. More often than not, a seller that’s going FSBO is either pricing too high, inexperienced, unreasonable or all three. Caveat emptor or “buyer beware,” is the name of the game in New York real estate. FSBO homes also take longer to close on average as there’s one less professional in the equation. Make sure you have your own real estate agent to advocate for you and protect your interests.

Someone other than the listing agent picks up the phone

When it’s time to start making phone calls, you’ll usually be answered by the listing agent or someone on their staff. But not always. Sometimes you’ll reach a different agent who offers to handle it all for you. This can be a problem because good agents will always ensure you deal directly with them or a member of their staff. When that’s not the case, it could mean delays or confusion as you try to move towards an accepted offer. An agent who tries to steal another’s business when they’re out of the office could also mean an unscrupulous agent. If you feel uncomfortable with who you’ve been routed to then feel free to look elsewhere.

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