June 01, 2006

Co-op Board Package

A: Here is the top page of a board package for a co-op in the UES where a list of items to be included are shown. Most of the questions Im hearing lately are about co-op board packages and if they could pass them. The problem is that every co-op board is different just like every private corporation is different; so you MUST contact the managing agent of the building you are buying into (seller broker normally does this prior to showing the property and meeting buyers) and find out exactly 'what they are looking for' to pass the board.

QUICK TIPS

1. Keep your debt/income ratio under 30%; with a grace range of 3-5% above that before raising a red flag. If yours is above 35% then be sure to ask the managing agent if the board will be OK with it.

2. Make sure you have at least 1 years maintenence + mortgage expense in liquid assets AFTER closing costs. Closing costs will include your down payment + transaction fees. Co-op boards that require more than 25% down probably will require more liquid assets AFTER CLOSING too!

3. Start collecting the most recent hard copies for ALL assets that you will be declaring. When you fill out the financial analysis form in the board package, use the EXACT #'s that each hard copy shows and then hand in that copy with the package (you want ALL assets listed to have the exact hard copy backing it up to show the board; mistakes raise red flags!).

4. Focus on Reference Letters. Get at least 4 paragraphs from your friends and be sure all contact information is given (you dont want to hand in a reference letter that no one can call to check up on).

5. Get a Gift Letter from your accountant if you received a large deposit from a family member to 'beef up' your financials for the board. If the hard copy shows the deposit, then you better supply the gift letter to back it up; it only helps.

NOTE: This co-op board doesn't ask for PAY STUBS which is usually common for a co-op board package to ask for. So, be sure to save yours just in case you'll need them.

SAMPLE CO-OP BOARD PACKAGE

*If you have any more specific questions about passing a co-op board, talk to me while I'm online for the LIVE CHAT.

Posted by urbandigs at 09:07 AM | Comments (0)

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May 19, 2006

NYC's Strangest Studio Floorplan

A: Talk about weird layouts! Take a look at this studio apartment in the Upper West Side in which the broker even declares, "Cookie Cutter -- NOT", on the webpage.

Tough to make a call on this property's asking price when the total size is not listed, but assuming it is 475 square feet, than this studio is asking $800/Sq. Ft.. A bit pricey for a first floor unit in a co-op requiring a 25% down payment, as it seems the low monthly's are allowing this seller to test out a higher price. In any event, here are the details for those interested!

210 Riverside Drive; Apt. 1D

Size: 475 Sq. Ft. (HARD TO TELL!)
# Beds: 0
# Baths: 1
Maintenence: $448
Asking: $380,000
Price Per Sq. Ft.: $800 (Again, need actual size for this)
Marketed By: Frank Russo of Halstead



**OPEN HOUSE SUNDAY 12:00-2:00PM & TUESDAY 5:30-7:30PM**

Posted by urbandigs at 03:19 PM | Comments (1)

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May 17, 2006

What is a Co-op & Is It Right For Me?

A: If you are looking for more space for your dollar, if you are a first time homebuyer who barely has enough to cover down payment + closing costs, and if you want to put your money into renovations and not closing costs, then YES, buying a co-op is right for you.

A lot of people will tell you, "...never buy a co-op", simply because of the restrictions that the co-op board may place on its shareholders. "A Headache" is another common term that people use to describe some boards of co-ops.

However, in my humble opinion, this is a statement usually made by someone who has significant assets to his/her name, thereby affording them the luxury of buying a higher priced condominum.

Co-ops, short for Cooperative, are basically private companies whose buildings' residents own stock in the corporation, rather than real property. When you buy a co-op in NYC, you are NOT given a title but rather given a stock certificate stating how many shares of stock you are purchasing from the existing homeowner. A propietary lease is then drawn up, giving the purchaser the exclusive right to live in the apartment. The formula for deriving how many shares you wind up purchasing depends largely on the total square footage of the apartment you plan to purchase, with minor emphasis on floor, view, outdoor space, and sunlight.

There are pros and cons to buying a co-op when compared to buying a condo in NYC. They are:

PROS
Lower Closing Costs Than Condos
More Affordable Than Condos
More Space For Your Dollar

CONS
Tedious Board Approval Process
Tougher Restrictions on Subletting
Tougher Restrictions on Pied-e-Terres
Tougher Restrictions on Co-Purchasing & Parents Buying For Children
Tougher Renovations Restrictions
Tougher Pet Restrictions

While I understand why Condo owners prefer to stick with a condiminium as their next purchase, lets take into account the first time homebuyer and the overall NYC housing market.

For the first time homebuyer, buying a co-op is going to be less expensive with much lower transaction costs at closing. A good example would be to compare closing costs of a $500K Co-op vs. Condo:

500K Co-op Closing Costs
Aprox. $7,000-$12,000

500K Condo Closing Costs
Aprox. $22,000-$25,000

Now, as far as the state of the current housing market and its future, it can be debated that co-ops are more protected in a down market than condos because of the lack of speculation in the co-op market. Co-ops have a very tedious board approvals process, with many boards being extra strict on who they let into their building. As a private company, they can reject whom they please within the law. Condos, on the other hand, have a RIGHT TO FIRST REFUSAL system for passing the board. Quite simply, once your past criminal record is reported as clean, you are approved to purchase the apartment; if rejected, the Condo must buy the apartment from its reserve fund.

So, the fact that co-ops are more cautious to who buys in their building, and speculators generally only buy the condo marke, co-op homeowners are less likely to be forced to sell in a down market.

If you are looking to buy real estate in NYC for the first time, and you just barely have enough to afford a down payment + closing costs, then a co-op is for you! Dont listen to the bad press co-ops may get, or to your friends who tell you only to buy a condo. Rather, focus on location, raw space, low monthlys and STAYING WITHIN IN YOUR BUDGET as the main factors. After all, the building you buy in may have a very easy board that allows subletting and parents buying for children. If this is the case, than it will be that much easier for you to sell, when the time is right!

Posted by urbandigs at 09:58 AM | Comments (0)

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May 15, 2006

Open House Log: 308 W 103rd

A: I saw this New York Metro Article by S. Jhoanna Robledo which chronicles a broker who asked those who visited the Open House to describe what they really thought of the place; perhaps for future marketing strategy? Not a bad idea for sellers to know what buyers actually think of their place and then use that info to stress the strongpoints in the next NY Times ad!

308 West 103rd Street; Apt. 5E

Size: 998 SFT
# Beds: 2
# Baths: 1
Maintenence: $950 (Below $1/Square foot)
Asking: $759,000
Price Per Sq. Ft.: $760
Marketed By: Amy LaPeters & Petra Scholder of Halstead

WHAT BUYERS SAID

* It's on track with what we want. The closets are good -- there are three [just] in the foyer . . . The bedrooms were a bit small.

* I just didn't feel it. It's not a knockout.

* It's okay, but we want a closed kitchen -- we cook a lot and don't like the smell. Ideally, if it's L-shaped, we could create a third bedroom -- I'm pregnant, and we don't want to have to move again if we have more.

* The [rooms] are long, but they're too narrow. They need to empty the rooms out and paint them Navajo white . . . Our ideal [has a] garden to barbecue.

~ The Open-House Log

Posted by urbandigs at 10:16 AM | Comments (0)

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May 10, 2006

High Monthlys? Find The Discount...!

A: A MUST READ FOR ANY BUYER OF NYC REAL ESTATE! For the first 10 months of hosting UrbanDigs I have brainstormed and researched all the search logs and key phrases that users type in to end up at my blog in an effort to answer the questions that users really have. I have always did my best to think outside of the box and report what I honestly feel about the NYC housing market, even if it seemed anti-business to my colleagues. One of the items I have been stressing for some time now is to go out of your way to find the apartment with the 'low monthly expenses'. I'm beginning to think this strategy needs adjustment.

Monthly Expenses: Maintenence Costs + Real Estate Property Taxes

Most buyers will learn that as they browse the available inventory of apartments that are in their price range, some have high monthlys and some have low monthlys. Generally speaking, the higher the monthly costs are for an apartment the less affordable the apartment becomes and the asking price will come down to compensate!

Some apartments w/ higher monthlys stay on the market so long that the seller must lower their price very aggressively to attract a buyer willing to bite. Perhaps this will become a more wise investment strategy? My thinking is this:

AS LENDING RATES RISE AND BORROWING BECOMES MORE EXPENSIVE, WOULDN'T IT BE CHEAPER TO CONSIDER A PROPERTY WITH HIGHER MONTHLYS WHOSE ASKING PRICE WAS DRASTICALLY REDUCED TO COMPENSATE?

If I were to analyze what your monthly payment is for a $500,000 loan on a 30YR Fixed from 12 months ago, 6 months ago, today, and at 7% it would look something like this (obviously rates vary for different states or if you pay points; please use this analysis as a general one):

12 Months Ago @ 5.675%
Monthly Payment = $2,895.67

6 Months Ago @ 6.175%
Monthly Payment = $3,055.86

Today @ 6.625%
Monthly Payment = $3,203.21

6 Months From Now @ 7%
Monthly Payment = $3,326.51

So, we're looking at about a $300 increase using today's rate due to interest rate hikes from a year ago. While that probably doesn't seem like much I could have gone back to say March 2004 when 30YR fixed was at 5.2% or so and your monthly payment would be around $2,745.55/Month; some $460 lower than today's payment. Looking forward 6 months from now a buyer could easily expect to pay $3,325/month for the same loan.

Bottom Line: Money is getting more expensive to borrow!

What Do We Know? We know that the fed rate hikes take time to funnel down the economic system which would mean that lending rates probably will trickle higher over the next 6-8 months or so. We also know that the fed will probably raise rates today 1/4 point, and might even raise rates again in June by another 1/4 point. So, we can add on another few months to that trickle theory I just mentioned which would lead me to believe that lending rates will slowly creep higher over the next year or so.

Now lets take this train of thought and relate it to the real world of NYC real estate. Lets take 2 fictional identical apartments that are in neighboring buildings w/ the same level of amenities and service, whose units sell for exactly the same price per square foot. Lets also assume that every aspect of these 2 apartments are the same except for the monthly costs.

Apartment A - Low Monthlys
Size: 700 sft
Type: Condo
Maintenence: $500/Month
RE Taxes: $350/Month
Total Monthlys: $850/Month
Asking Price: $625,000

Apartment B - Higher Monthlys
Size: 700 sft
Type: Condo
Maintenence: $700/Month
RE Taxes: $450/Month
Total Monthlys: $1,150/Month
Asking Price: $525,000

WHICH SEEMS THE BETTER BUY? LETS DO THE ANALYSIS ASSUMING FULL ASK OFFER, 10% DOWN, AND 30YR FIXED AT 6.675%:

Apartment A - Low Monthlys
Monthly Mortgage = $3,622.23
Total Monthly's = $850
Total Monthly Payment For Buyer = $4,472.23

Apartment B - Higher Monthlys
Monthly Mortgage = $3,042.67
Total Monthly's = $1,150
Total Monthly Payment For Buyer = $4,192.67

CONCLUSION: The apartment that first appeared better because of the lower monthly expenses actually will turn out to be more expensive since you are borrowing more money to purchase that apartment at a time when money is expensive to borrow. Turns out, the apartment with the higher monthly expenses is being discounted to the point that it makes it the better value and saves you about $280/Month when all is set and done. Buyers are scared of high monthlys which causes the seller to endure longer time on market and slow open house activity; you never know how aggressive they will get with pricing to spur activity!

While this is just a simple analysis, you can do the same calculations based on properties you see. If you find a property whose monthly charges are having a negative affect on the asking price, then take some time to do the math and see whether or not the lower price turns out be a money saver for you in the end! As always, have your attorney review all building documents BEFORE you sign the contract of sale to be sure that the higher maintenence costs of the building are not a sign of worse underlying problems; i.e. low reserve, poor management, landlease, etc..

Posted by urbandigs at 10:30 AM | Comments (0)

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May 09, 2006

East Village Oasis Back on Market

A: I was doing my weekly checks on price changes in the NYC market when this listing caught my attention. It's a walkup on 533 E 13th Street and is being marketed by Heloisa Gilbert of Corcoran. I'm passing it along to you because of the recent price change and unique features of this property; as long as you can stand the 4th floor walkup! After being taken off the market due to inactivity last year, hopefully the price change will spur some buyers back to this one.

This 4th floor walkup apartment is obviously not for everyone but is unique enough to pass along to you guys. With 1,500 sq. ft. floor through interior and private 1,500 sq. ft. private roof deck, this 3BR/2BTH co-op with reasonable monthlys is now asking $883/sq.ft.. The price has been reduced $270,000 from its original asking price of $1.595M and probably has some more room for negotiating. Details:

533 East 13th Street; Apt. 4A

Size: 1,500 sft Interior + 1,500 sft private roof terrace
# Beds: 3
# Baths: 2
Maintenence: $1,788 (Aprox. $1.19/sft)
Asking: $1,325,000 (Reduced from $1.595M LAST YEAR!)
Price Per Sq. Ft.: $883
Marketed By: Heloisa Gilbert of Corcoran

Apartment Features:

- Exclusive Roof Rights
- Established Perennial Roof Garden
- 2 Skylights
- Exposed Brick
- Sun Drenched North & South Exposures
- W/D
- 9 Year-old Japanese Red Maple (the deal maker)

**Open House is Wednesday 6-7PM & Sunday 1-4PM**

Posted by urbandigs at 10:10 AM | Comments (0)

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May 07, 2006

UrbanDigs in Manhattan Living Magazine

A: I recalled doing the interview about a month ago but completely forgot about it and which publication it was going to be used for. Funniest part is my wife is reading the magazine when she stumbles upon an article titled, "Beating The Board", which discusses a bill before city council that would require a co-op board to disclose why it turned down a prospective buyer. As she gets my attention to read me the article out loud she quotes something that sounds very familiar to me! It didnt take long before she mentions the source of the tips: Yours Truly!

Passing it on to you guys. Here are the tips as mentioned in the article to help AVOID REJECTION from a co-op board:

Posted by urbandigs at 02:59 PM | Comments (0)

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May 05, 2006

How To Retain The Most Re-Sale Value

A: If I were to rate in order the most important features of a property that will help you retain the most money in terms of ultimate re-sale value in a slower housing market, than it would be: 1. View/Sunlight, 2. Location, 3. Size, 4. Monthly's

In a slower market there is always more competition and less buyer demand. Put those together and there are a few MUST HAVE's that buyers will always look for and pay more money for. Lets go into the minds of a couple looking to buy a 1BR apartment in Gramercy with a budget of $550K. What would you look for?

View/Sunlight: If you have great sunlight and clear city views than you are in the perfect position to ask for top dollar value when pricing your property for sale. These days, I find buyers willing to sacrifice location (at least on a small scale) and consider nearby areas to live in as well. For the homeowner that makes the permanent features of your home that much more important; in this case, the VIEW and the NATURAL SUNLIGHT.

Location: I place location a very close 2nd behind view/sun. The only reason I dont rank this as #1 is because of buyers willingness to consider other areas. Simply put, buyers are tired of getting priced out of a market that is driven by prime location. The slowdown in demand is enough to cause some type of slowdown in the high end market (read my post on High End Blues).

Size: Raw Space in a good location with sun and views that is in horrible condition! Ahhh, the dream of so many wise real estate investors! Look for the wreck! Who cares if you don't have the money now to renovate. Suffer and live in a craphole until you can muster of enough money to renovate the kitchen, and then the baths, and then the floors. Size is the standard by which we calculate the purchase price and value. Damn, that is so important Im gonna say it again.

SIZE IS THE STANDARD BY WHICH WE CALCULATE PRICE & VALUE

Your broker should always tell you what the apartment you saw is asking per square foot? $800/Sq. FT? $1,200/Sq. Ft? You must know this. You also must know what the very last comparable (same unit) that sold per square foot? This is the info the appraiser will look into when calculating whether or not the apartment is really worth what the buyer has offered to pay.

Monthly's: Your monthly's are the total charge of the monthly maintenence and the monthly real estate taxes that you pay. If your monthly's are high, than you must lower your asking price to compensate. Vice Versa, except how much higher you set your asking price due to very low monthly's is still limited. In the end, the lower the monthly's are in the building you buy matter!

When you look to buy, think about when you will look to sell. Use view/sun, location, size, and monthly's as the main selling points when making your ultimate decision. These are the deal makers and breakers! Renovations can be done after and at your financial leisure and discretion. Do NOT use renovations as a deal maker if you are looking to buy; rather, try to find the wreck that is asking for less money and then renovate it yourself!

Originally Published 1/19/2006

Posted by urbandigs at 02:20 PM | Comments (0)

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April 21, 2006

House-Hunting in NYC w/ $150K

A: Check out what $150,000 buys you in Manhattan: 229 West 144th Street in West Harlem where the description is long enough to describe a 3,000 sq. ft. penthouse asking $5M!

Brand New to the market with the first showing at Saturday's Open House, this certainly is priced low enough to gather a significant crowd! This is 1 of 2 apartments that this Corcoran team are selling in the same building; Apt. 46 is asking $175K and has a slightly bigger floorplan.

According to the listing:

Nestled between two of Harlem's most prestigious neighborhoods...Sugar Hill and Historic Hamilton Heights you will simply not find more value for your dollar anywhere on the Island of Manhattan. Minutes away from many area attractions including Bradhurst Park where you can cool off in the outdoor pool open from July 4-Labor Day, St. Nicholas Park, Aaron Davis Hall at City College, The Alvin Ailey Dance Academy, and so much more! Supermarket shopping will be a breeze at the all new Pathmark Supermarket located at 145th Street and 8th Avenue.

229 West 144th Street; Apt. 41

Size: 426 Sq. Ft.
# Beds: 1
# Baths: 1
Maintenence: $293 (LOW - includes taxes as well!)
Asking: $150,000
Price Per Sq. Ft.: $352 (See the value!)
Marketed By: Anthony Morris & Michelle Joyce of Corcoran


1 BR Floorplan

Posted by urbandigs at 11:08 AM | Comments (1)

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April 18, 2006

Rising Interest Rates & Your Plan

A: When it comes to interest rates and the effect of rising borrowing costs on our daily lives, recent history probably carries much more weight than ancient history. In this post I will try to analyze the psychology behind a 'more expensive' world in the hopes of finding the best way to invest in it.

Ancient History will tell us that borrowing costs are still 'historically low' and that even if 30YR fixed rates climb above 7% we should be just fine. On the other hand, recent history tells us that those who locked in 30YR fixed did a very wise move!

Lets take a fictional property that sold for $520K 3 years ago compared to the same property that is asking $550K today with rates higher (the market slowdown started around June of 2005 so 3 years ago asking prices and lending rates were lower). Lets also assume the fictional buyer puts 20% down:

3 YEARS AGO $520K - $104K Down Payment (30YR Fixed @ 5.10%):

Monthly Mortgage Payment = $2,258.67

TODAY $550 - $110K Down Payment (30YR Fixed @ 6.375%):

Monthly Mortgage Payment = $2,746.47

Hmm...yea...interesting..the monthly payment for today seems kind of expensive compared to 3 years ago. It seems that RECENT HISTORY is more painful financially than something that happened 30 years ago! Heck, I'm only 30 years old why should I care if mortgage rates right now are still historically low? They certainly are a lot higher than they were a few years ago and will only continue to rise slowly over the next 12 months (since fed rate hikes take time to funnel down the economic system). By this time next year I wouldnt be surprised if 30YR fixed interest rates are around 7.25% - 7.5% or so (unless something unexpected happens that would cause the fed to lower rates).

But forget housing for now and lets consider credit card debt. Whether you know it or not all of these fed rate hikes actually do end up having a negative impact on all that debt you piled onto those Capitol One cards! According to Sun-Sentinel.com:

Credit card debt is usually the most expensive kind of household debt, which is especially tough for consumers when interest rates are heading up. "Card rates are rising faster than the rise in general interest rates," said Justin McHenry, research director of the Cleveland-based survey firm.

The higher interest rates will add a few dollars to minimum monthly payments. But over time, that can add hundreds of dollars to consumers' debt loads. Interest rate hikes can actually sneak up on consumers. That's because most credit cards in use today carry variable rates, which card companies can change without notifying customers in advance.

What psychological affect will this have on people once they realize that they are living in a more expensive world? Did your minimium required payment increase in the past year (assuming your spending vs. payoff rate remained constant)? I'm betting it did!

If your housing + credit expenses have risen over the past few years than chances are you will be forced to sacrifice the luxuries in life that you may have gotton used to such as dinners out or weekend getaways.

FACT IS: Rising Interest Rates affect more than just housing! Here's how I view it:

BORROWING/LIVING COSTS GET MORE EXPENSIVE --> PEOPLE HAVE LESS MONEY TO SAVE/SPEND ---> PEOPLE TIGHTEN SPENDING ---> CONSUMER DEMAND EASES ---> INFLATION STAYS IN CHECK/CORRECTS

WHEN IT COMES TO INVESTING IN HOUSING: Use the philosophy of 'If you can afford it, than find the deal and buy it". NYC Rents are rising to levels that in my opinion makes buying much more attractive. Plus rental inventory is so tight now (NYC Vacancy Rate at 0.89%!) that people are settling, instead of getting something they truly like. If you have a secure job w/ sufficient salary (see Brady's post on What Co-op Board's Look For), good credit, sufficient liquid assets, and a 3+ YR timeline to live there than BUY NOW! It is still a buyers market and there are deals out there. If you wait to buy for another year or so you will also have to hope that asking prices across Manhattan come down to compensate for higher interest rates (cause there going up!).

REMEMBER: With real estate you are being forced to save by building equity, you are entitled to tax benefits when you file your return and on gains when you sell, and you can live in and upgrade your investment!

If you plan to sell in 2 years or less now may not be the best time to be buying. I'm still flat to down on the NYC housing market for the short term and wouldn't be surprised if it remains that way the next few years. The only reason to buy now with a 2YR timeline to sell is if you find a deal that can't be missed!

IF YOU DON'T HAVE ENOUGH MONEY NOW: Be smart. Sacrifice living style and do what you can to get the lowest rental possible so that you can put the extra money AWAY in a money market account or CD. Interest rates are getting to very attractive levels these days with most 1YR CD's at or above 5.00% (WorldBank has 5-month CD at 5.01%). As much as it pains me to say this, tighten your spending habits and get used to budgeting for the next 1-2 years so that you can instead put away an extra few hundred dollars a month or use it to pay down credit debt quicker.

What you are doing is preparing yourself financially for your future investment of buying NYC real estate. By correcting your credit you will be able to get a better rate and save thousands over the term of the loan. By cutting back spending you are hopefully saving more and building up your liquid assets (Cash, Stocks, Bonds, CD's, Money Markets, etc.). After a few years both your credit score and net worth will be higher and you will be ready to afford a down payment without crippling your cash reserves!

Good Luck!

Posted by urbandigs at 12:49 PM | Comments (1)

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April 17, 2006

NYC Co-ops More Protected Than Condos?

A: What a great topic to discuss as the housing market continues to remain flat-to-down across most parts of the country. In New York City there are basically 2 property choices for most buyers: Co-op or Condo. Should the housing market take a short term temporary hit down the road, what apartment type do you think will be more protected? I'm going with liberal Co-ops.

Here are some reasons why I think sellers of condominiums might have to stretch lower than sellers of Co-ops should the housing market hit a rough patch down the road.

1. Speculators/Foreign Investors Buy Condo's NOT Co-ops: For those speculative investors in New York City, buying a condo is a must due to the liberal transaction process associated with the legal structure of condominiums. Most condos allow the buyer to put ONLY 10% DOWN, SUBLET THE PROPERTY, experience NO BOARD INTERVIEW, and a RIGHT OF FIRST REFUSAL APPROVAL PROCESS (rather than passing the co-op board members) all of which allows the seller to market the property to a much larger buyer pool.

According to NY-Condos.com:

Prospective buyers lacking U.S. citizenship will find that New York condos give them the chance to own a U.S. apartment without having to suffer from a weak dollar, along with potential for short and long-term appreciation.

Whenever you are talking about buying a property for investment purposes rather than to live in for the next 15 years (especially one in a foreign land), you must also consider the prospect of hard times and being forced to sell should something not turn out as expected! It only adds to the list of condo owners in NYC that might be forced to sell in a housing correction.

2. Financially Weak Homeowners Buy Condos: Lets face it, if you know you are going to buy rather than rent in NYC but don't have enough assets to put 20% down and still have enough to show a co-op board, than you will learn quickly that you will have to sacrifice space or location and buy a condo; your only other choice is to find a condop or a sponsor sale. However if you have a secure job with rising salary, sufficient liquid assets, and low debt than you are in good position to pass most co-op boards and less likely to be forced to sell in hard times.

Using this logic you could predict a situation in a rising interest rate environtment where more condo owners will be forced to sell their apartments. Any homeowner who has to sell for financial reasons usually has to sell quickly; to sell quickly you MUST price below market value!

3. Most New Developments Are Condo: Think about all the new development that has taken place in New York City over the past few years. Now think about all the development that is almost finished and about to start! As the market cools, are these guys going to be able sell their units for $1,300+ a square foot when premium exisiting products go for much lower? Percentage wise, new developments will have to lower prices more aggresively than existing co-op owners who are already offering discounts simply because they are co-op. Some developers refuse to lower their pre-construction pricing which will result in unsold units all the way to the occupancy date; where does that leave the speculative investor who paid $1,300/Sq. Ft. in the first round of pricing a year earlier?

Considering these 3 concepts I would think that liberal co-op buildings (those co-ops that allow 80%+ Financing, subletting, pied-a-terres, parents buying for children, and guarantors) to be well protected as owners will be LESS LIKELY to be forced to sell once the actual decision to sell is made. Any homeowner that has more time to sell can afford to keep their property on the market long enough to 'get their price'. Maintaining building pricing is very important as future sales are largely priced based on the most recent closed deals in the building.

If condo owners are forced to sell at way below market value simply because they need the money or want to cash out, it will hurt the building as a whole and particularly hurt those who are looking to sell soonafter as appraisers will wonder why some units sold for much less!

Posted by urbandigs at 08:13 AM | Comments (0)

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March 31, 2006

The Cheapest Full Service 1BR in NYC

A: Excluding Harlem & FSBO's, I did a search to find the cheapest 1BR apartment on the market right now that has a Full-Time Doorman, at least 500 square feet in total size, and monthly expenses under $650. NOTE: This only includes those properties being marketed by the brokerage community as I used Corcoran's system to do this search. Usually there is a 1-2 week lag for new listings to appear in the system.

AND THE WINNER IS....drumroll please...

1 Gracie Terrace (East 82nd St): Apt. 4J

Size: 500 Sq. Ft.
# Beds: 1
# Baths: 1
Maintenence: $617
Asking: $315,000
Price Per Sq. Ft.: $630
Marketed By: Hilary Rovins of BrownHarrisStevens

Building Details: 24HR Doorman & Concierge, Gym on 1st Floor, Central Laundry Room, Bike Room, Reserve Fund of $2M+, Underlying Mortgage of $4.4M (your attorney will review this info and advise you accordingly)

This apartment is 7 weeks on the market and has a 70% financing restriction that may be causing this listing to not sell as quickly as it should. Nevertheless, I can't find any more listings that meet these criteria other than alcove studios that are around 350 - 400 square feet. Be sure to check this one out if you have the liquid assets to put 30% down!

Posted by urbandigs at 10:15 AM | Comments (1)

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Greenwich Village Price Drop

A: For a buyer with a 800K budget looking for a large and sunny 1BR in a full service building in Greenwich Village that is at least 850+ Sq. Ft. with monthlys under $1,000 could be tough. Lucky for you a recent price drop at The Lawrence House on 79 West 12th Street brought a sunny 1BR down to $799K.

The seller of this property looks 'ready to go' after almost 5 months on the market as a price reduction 3 days ago brought this property down to $799K. Some of the reasons I bring this to your attention is that it is in a great location where values are hard to find, is a large 1BR that can be converted to 2BR, in a full service building with landscaped roofdeck, and has monthly's under $1,000. Put it all together and a aggressive bid might get someone a great deal! Here are the details:

79 West 12th Street; Apt. 5F

Size: 888 Sq. Ft.
# Beds: 1
# Baths: 1
Maintenence: $967 (Reasonable for apt. size)
Asking: $799,000
Price Per Sq. Ft.: $900
Originally Priced: $859,000 on 11/10/2005
Marketed By: Guy Abernathey of Corcoran


5F Floorplan

Here is another attractive listing in Greenwich Village which offers a set back terrace; you know how big I am on outdoor space in NYC as a selling point. Slightly more expensive and smaller than the above referenced apartment:

101 W 12th Street: Apt 16G Marketed By Rochelle Bass of Bellmarc Realty

Good Luck & Always Remember The 5 Ingredients For Real Estate Success:

1. LOCATION
2. RAW SPACE
3. NATURAL SUNLIGHT
4. REASONABLE MONTHLY EXPENSES
5. BUILDING AMENITIES & OUTDOOR SPACE

...now if you can just get all of this at a good price point!

Posted by urbandigs at 09:35 AM | Comments (0)

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March 27, 2006

ATTN Investors: 328 West 86th Fire Sale

A: Check out this listing that is less than 3 weeks on the market in a Pre-war UWS Co-op at 328 West 86th street. With a rent stabilized tenant in place paying a low $745/Month, this seller is chopping the asking price down to under $400K while another 1BR in the same building and line is asking $750K!

I told you deals will popup every once in a while! This deal has a catch though. The catch is you can't live in the apartment because of a rent stabilized tenant that is living there. What I do not know is how long of a lease the tenant has and if the tenant has an option or right to extend the lease. Still, here is your chance to own a 1BR Co-op in the Upper West Side with NO BOARD APPROVAL at way below market value. Here are the details:

328 West 86th Street: Apt 14B

Size: 750 Sq. Ft.
# Beds: 1
# Baths: 1
Maintenence: $696 (LOW - includes taxes as well!)
Asking: $399,000
Price Per Sq. Ft.: $532 (Holy Snikees!)
Marketed By: Ray Kiswani of Bellmarc Realty


Apt. 14B Floorplan

FYI: Apt. 10B in this building is currently being offered for sale at $750K, with maintenence slightly lower at $584/Mth because of the lower floor. Assuming the same total size, this apartment is asking $1,000/Sq. Ft. which shows the value for the above referenced apartment.

Good Luck!

Posted by urbandigs at 09:28 AM | Comments (0)

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March 21, 2006

4BR Value in Gramercy

A: Check out this 6-Day old listing marketed by Richard Healy of Halstead which to me represents a fantastic value for a 4BR Condop in Gramercy. For those in the market for a 4BR family home in these neck of the woods, be sure to check this one out ASAP! While the high end is a bit sluggish right now, props to this broker for pricing it correctly.

Its hard enough to find a 4BR family home in Gramercy for under 3M, let alone one that is 3,600 Sq. Ft. in size. While this pre-war building doesn't have a doorman, it does have a wrought iron gated entrance w/ stone floor, a computerized key entry security system, a keyed passenger elevator, and investor friendly board policies. Priced at only $815 a square foot, somebody will get a lot of bang for their buck with this one in a great location with 4 exposures! Some more details:

118 East 25th Street; 3rd Floor

Size: 3,600 Sq. Ft.
# Beds: 4
# Baths: 3
Maintenence: $2,464 (LOW - includes taxes as well!)
Asking: $2,975,000
Price Per Sq. Ft.: $815 (See the value!)
Marketed By: Richard Healy of Halstead


4BR Floorplan

Posted by urbandigs at 10:36 AM | Comments (0)

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March 17, 2006

Co-op Board Package Red Flags

A: When preparing a Co-op board package, either on your own or having the broker do it, there are a few things that you should know that are considered 'red flags' in the eyes of most Co-op boards.

NOTE: Every Co-op board sets unique policy's for their building's stance on board approval, subletting, pied-a-terre's, pets, renovations, and re-selling. Before a buyer's offer is accepted, either the seller or the seller's broker should pre-qualify the buyer based on information that is gathered from the building's Managing Agent regarding what the board looks for in accepting the prospective purchaser.

There are certain items that are cause for concern as they could possibly raise a red flag when the board meets to review the prospective purchaser. Here is a discussion on each of them.

1. Debt/Income Ratio Over 30%: Your debt to income ratio (DTI) is a key indicator of your true financial picture. It is definitely the lending industry's measure of fiscal health. Your debt to income ratio is calculated by dividing monthly minimum debt payments (excluding utilities, food, entertainment) by monthly gross income. The higher this ratio, the more burden there is on the individual to make payments on his or her debts. If the ratio is too high, the individual will have a hard time accessing other forms of financing. A Debt/Income Ratio above 30% starts to raise a red flag in the eyes of board members because it increases the risk that the buyer will default on payments (especially Maintenence payments) in the future.

2. Declining Income Reported on Tax Returns: Most board packages will request the past 2 years of Tax Returns be submitted by the prospective buyer. It's always good to have successively increasing reported income on these tax returns as it shows that you have a stable job with a rising salary. Basically it tells the board that you are in good financial shape. However, if you had a SHARP decline in reported income over the past 2 years (i.e. Reported Income of $75,000 in 2004 but $50,000 in 2005) it will raise a red flag to board members reviewing your application. Declining income tells a story of a worsening financial situation and may cause the board to ask more questions or dig deeper into your financial history before considering accepting your application.

3. Hard Copies Do NOT Match Financial Anaylsis Form: When submitting the board package ALL #'s provided in the financial analysis form should MATCH UP PERFECTLY with the hard copies that are usually requested to be submitted. For example, if you state that you have $123,456.14 in your checking account and $23,498.46 in stocks than you better have the hard copies to back that up TO THE PENNY! As the board reviews your financial analysis form they will look to the hard copies provided as proof that you really have what you state you have in liquid assets. UrbanDigs Tip - Do it in reverse! Collect your hard copies first that you intend to submit with the board package and then take the statement balance and copy that into the appropriate section on the financial analysis form (this way you know for sure that all data you enter about your liquid assets has the exact amount on the hard copies to back it up).

4. Incomplete/Missing/Poorly Written Reference Letters: You may think that the personal and professional letters of reference are the easy part of the board package, so be careful NOT to discount the importance of these letters (Read my post on Reference Letters Layout). If the board asks for 5 Personal Letters & 3 Professional Letters of reference than make sure you hand in ALL OF THEM! Not only that, but make sure you tell your friends and work associates to type up the letter and include a good 3-4 paragraphs of information describing their relationship with you, why you would be perfect for this building, and contact information so that the board may follow up if needed. Don't skimp on the reference letters as I know for a fact that some boards weigh this aspect of the board package very heavily!

If you are selling a Co-op apartment be sure to know every detail of what the board will look for BEFORE accepting anyone's offer. Now that you know what the board wants and some of the RED FLAGS that boards look out for, you should be able to assess whether a particular buyer is in good shape to be accepted. Although a Co-op board may reject a buyer for any reason they wish, this is a good set of guidelines to follow to put the prospective buyer in the best possible light for passing the board! Good Luck!

Posted by urbandigs at 11:23 AM | Comments (0)

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March 16, 2006

Priced To Sell: 200 East 36th Street

A: I found this listing today that was originally priced at $525K back in December and reduced twice to $450K today. With 2 reductions in 3 months on the market you know this seller is ready to go! Whoever is in the market for a 1BR in Murray Hill with at least 725 Sq. Ft., 24HR Doorman, Renovated Common Areas, Gym, Courtyard Garden, Storage Room, and low monthly's which includes basic cable should definately check this one out.

A clip from the central listing system:

Drastic Price Improvement!!! Will not last!!! This beautiful large one bedroom apartment has a great layout and high ceilings. The apartment is very sunny with western exposure & Empire State building view. Apt has parquet floors and five closets and is quiet. This full service building boasts a 24 hour doorman, brand new lobby and hallways, courtyard garden, roofdeck, live-in suoper, laundry room, private storage room, bike room and luggage room. Brand new gym just opened! The low maintenance includes basic cable. Pets Welcome! Great building in fabulous neighborhood that offers it all-- restaurants, entertainment, transportation.

Unfortunately this Co-op board discourages parents buying for children or the use of guarantors.

200 East 36th Street; Apt 2C

Size: 725 Sq. Ft.
# Beds: 1
# Baths: 1
Maintenence: $720 (Below $1/Sq. Ft.!)
Asking: $450K
Price Per Sq. Ft.: $621
Originally Priced: $525K on 12/9/2005
Marketed By: Caitlin Hughes of Corcoran

OPEN HOUSE SUNDAY FROM 4:00 - 5:30PM

Good Luck!

Posted by urbandigs at 09:12 AM | Comments (0)

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March 14, 2006

Co-op Board Reference Letters

A: When preparing a package for a Co-op board you want to be as professional as possible and present yourself in the best possible light. The most important aspects of the board package include your financial history, current job and liquid assets, and personal & professional letters of reference. For this post I will go over how your letters of reference should look before submitting the package to the board.

Below are 2 reference letters (1 personal & 1 professional) that were used in a past deal that the Co-op board ultimately accepted. To protect the privacy of the buyer, all names, numbers, and author of the letters are blacked out.

PERSONAL LETTER OF REFERENCE EXAMPLE

PROFESSIONAL LETTER OF REFERENCE EXAMPLE

Although I had to black out the names and numbers listed in the letter you should still be able to get a good idea of how the reference letter should be made. Keep it 3-4 paragraphs in length and have it typed up on a corporate letterhead with the author's signature at the bottom along with contact info. Good Luck!

Posted by urbandigs at 10:45 AM | Comments (0)

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March 13, 2006

What is a Sponsor Unit?

Sponsor units have NO BOARD APPROVAL! When an individual or company converts a rental building to a co-op or condo, the first transfer of an apartment, or "sponsor unit" does not require board approval.

According to Wallfly.com's Glossary: Sponsor Unit: Apartments that are held as an investment by the sponsor - the original develeper who built the building or converted the the building to a co-op. Sponsor apartments are usually exempt from board approval.

But there are some other important things to note!

Sponsor units command a premium because people who might not pass a board can buy them. For example, a sponsor unit would be a good choice for parents who want to buy an apartment for a child who is a student. A sponsor unit may be the best apartment for someone who is not working, or only has a short job history. Basically, if you aren't a candidate for a co-op building and can't quite afford a condo, keep an eye out for a sponsor unit!

Buyers of a sponsor unit should take note that they will need to pay NY State and NY City transfer taxes, and often the seller's attorney fees. You still have to submit a board package (Homeland Security! The management company needs to know who is moving into their building) and you almost always have to abide by the building's house rules as far as sublet requirements and pets. Although it varies from sponsor to sponsor, you may be able to put down less than the minimum financing normally required by the building.

Check out these sponsor units under $550K:

$539K - One Bedroom - Central Park West and 101st St

$499K - Convertible two bedroom - 25th St. and 2nd Avenue

$289K - Studio - 311 East 25th Street

Posted by Toes at 03:17 PM | Comments (0)

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Rate Your Co-op Board

A: Although I registered the domain www.passthecoopboard.com months ago it looks like I was beaten to the punch by this well thought out website called Wallfly.com. Wallfly is a site dedicated to building a database of rating Co-op boards; a problem that I was dying to solve. A difficult (data and user reviews will take time) yet rewarding model that lets residents lookup and rate their own building's board policy on toughness, restrictions, what its like to live there, what it takes to get in, and who deson't stand a chance!

NOTE FROM SITE: To review you must register. A member may only write one review per building. If you wish add to a posted review, however, you may edit your review at anytime.

Moving on, the main page has a RAVE REVIEWS section that points out the best reviews for buildings that were left by residents.

In addition the site has added some fun stuff such as a TOP 10 list of most infamous board turndowns; with Madonna & Howard Stern being the current leaders. Add in Recent Reviews, a Watchlist, Co-op Buzz section, Glossary of terms, and Real Estate Links (no UrbanDigs though..whats up with that?) and this site is on the right path to building what will eventually be a very useful resource!

If you are looking to buy a Co-op then you should know that the board approval process can be tedious, frustrating, and painful at times. A site like Wallfly.com will be very handy once their database gets filled with user reviews. Currently the site is lacking in content but that should be expected from a 7 month old startup! Good Luck Wallfly guys! Now lets try to help them out by submitting a review of your Co-op!

~ WallFly.com - Rate & Review Co-op Boards

Posted by urbandigs at 09:03 AM | Comments (1)

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March 07, 2006

Coco Selling Studio's in Upper East?

A: Check out this $210K studio apartment that Citi-Habitats own Coco Mindreau is selling at 531 East 87th Street.

Only 1 flight up and getting southern light, this seems like a nice deal for anyone looking for a cheap home in the Upper East Side. When calculating the monthly expenses for a buyer who puts down 20% with a mortgage rate of 6.25%, the total comes out to $1,477/Month BEFORE TAX DEDUCTIONS!

If you are renting a studio apartment right now paying close to $1,300 a month, and you have the means to buy, I would strongly consider viewing this 7-day old listing. It will go fast!

531 East 87th Street; Apt. 2B

# Beds: 0
# Baths: 1
Maintenence: $443
Financing Allowed: 80%
Asking: $210K
Marketed By: Coco Mindreau of Citi-Habitats

Posted by urbandigs at 08:40 AM | Comments (0)

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March 06, 2006

Upper West Side Value

A: If you are looking for a 1BR in a prime location of the Upper West Side near Central Park and with the luxury of a 24HR Doorman and planted roofdeck, check out this 6-day old listing at 200 West 79th Street.

The Gloucester building is located on 79th street between Broadway & Amsterdam Avenue and is a full-time doorman building with a live-in super and porter available 24 hours. The lobby and hallways were just renovated meaning future assesments for this type of work shouldn't be a concern for you.

It's always best to ignore renovations and focus on the 4 things that can NOT be changed about a property: LOCATION, SIZE, VIEWS, & LIGHT. With regard to this property the location is great, the size is fine, the views I'm not sure about, and the light seems great. Not a bad start.

*Note: Your real estate attorney will review all building financials, offering plan, board minutes, and contract of sale before advising you to sign the contract. You should be notified if any major renovations are planned which might lead to future maintenence assesments!

200 West 79th Street; Apt 9B

Size: Aprox 650 Sq. Ft.
# Beds: 1
# Baths: 1
Maintenence: $859 (a bit high for apartment size)
Asking: $495K
Price Per Sq. Ft.: $762
Marketed By: Doron Zwickel of Douglas Elliman

Posted by urbandigs at 10:02 AM | Comments (0)

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A Rent-Hike Induced Housing Surge?

A: Why not? A Cooling Housing Market + Rising Rents & Lower Vacancy Rates could put buying back in favor again down the road (not just yet because interest rates still have some room to rise)! Something to think about when crunching the numbers. While I still believe we have some softness in the housing sector ahead of us, I can't help but notice that if rents keep rising like they have been than the disparity between the cost of renting vs. buying will narrow!

The rental market in Manhattan is certainly favoring landlords rather than tennants right now as the vacancy rate continues to drop and rents continue to rise. Add in a 9-Month Old Housing Slowdown and all of a sudden the difference between the cost of owning (w/ tax benefits) vs. the cost of renting becomes much closer. If this trend continues could this lead to a Rent-Hike induced housing boom in New York City?

Its something that can be argued for Manhattan only, as almost all other markets do not have that rare combination of limited supply of housing plus high demand for housing at the same time. It could also be argued that there are many buyers out there who have been 'priced out' of the New York City housing market for the past 2 years, and are now facing rent hikes as they look to renew. The question now presents itself: Do Renters consider buying now that:

1. They Have Saved For A Few Years & Are In Better Financial Shape

2. Are Faced With Higher Renting Costs & Less Rentals To Choose From

3. Have Experienced A Slowing Housing Market & Gained More Control of the Bidding Process

In a recent NY Mag article the focus is on rent hikes at Peter Cooper Village & Stuyvesant Town. According to Jay Heydt of Citi-Habitats:

Driven by all the bursting-bubble talk, buyers are waiting and renting, says Jay M. Heydt, managing director of Citi Habitats' Union Square office. So "as of January 2006, there's a less than one percent vacancy rate for rentals," he says, adding that there's no tighter market than downtown; putting Peter Cooper Village at the improbable center of a boom. If Eric L. wants to stay put, he'll have to pay 25 percent more: $2,800 a month, non-negotiable. Nor is he alone. The tenants-association Website teems with postings from sticker-shocked renters. "At first [I] thought it must be a mistake!" writes one. "Bon voyage, PCV!" huffs another.

Its just such an interesting topic that I do not understand why it is not covered more in the mass media. I guess there is no personal angle on the idea; no angle, no story. Anyway, thats why we blog!

UrbanDigs Says: If NYC housing continues to soften (which I think it will, without crashing) and NYC rentals continue to get more expensive (which I'm not sure what will stop it), it's hard to ignore a situation where it just makes much more sense to BUY rather than RENT! If you have been priced out of the NYC market for the past year, KEEP YOUR EYES OPEN and continue to save your money and get your credit score as close to perfect as possible and put yourself in good financial shape so that you can take advantage of a deal when it presents itself. Trust me, it will!

~ Out with the Old, In with the Newer

Posted by urbandigs at 07:59 AM | Comments (0)

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March 03, 2006

Real Estate Lingo Explained

A: Check out this great post I saw on Matrix today that explains to the general public all the real estate babble that us brokers use to describe apartments in New York City. Be sure to watch the short video clip when the reporter goes out into the streets of NYC to test out what New Yorkers really know about real estate lingo!

In A Nutshell

Some basics

1. frplc, fplc, FP = fireplace
2. gar = garage
3. HDW, HWF, Hdwd = hardwood floors
4. hi ceils = high ceilings
5. MLS = Multiple Listing Service
6. vw, vu, vws, vus = view(s)
7. FDR = formal dining room
8. HVAC = Heating, Ventilation, and Air Conditioning

Is it really worth abbreviating?

1. expansion pot'l = expansion potential
2. grmet kit = gourmet kitchen
3. assum. fin. = assumable financing
4. nr bst schls = near the best schools
5. fab pentrm = fabulous pentroom
6. q pos= quick possession

OMG

1. Wow! = better check this one out.
2. lo dues = low dues
3. FROG = finished room over garage
4. OWC = owner will compromise

Warning!

1. close to or convenient to = a lot closer than you would want
2. compact = tiny
3. mature garden = needs an industrial weeder
4. intimate = claustrophobics
5. TLC = wreck
6. interesting or unique = shag carpeting and a floor plan designed by Dr. Seuss

I can't believe the dog didnt know that WBFP means 'Wood Burning Fireplace'. I mean, if it was my chocolate lab Stella (who never barks!) she would say that this is the thing she sleeps in front of when we go to Uncle Lex's house in Vermont!

~ Real Estate Lingo, Jargon, & Acronyms Are A PITA

Posted by urbandigs at 10:15 AM | Comments (2)

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March 01, 2006

What Will The Co-op Board Ask For?

A: A lot. If you are a first time buyer of a Co-op, then read this post so that you know exactly what YOU are getting into, and what the potential buyer when YOU SELL will have to provide to get a board approval.

A Co-op board will most likely look deepest into your financial history, current salary, and references when evaluating your board package. So for sake of ease I will break down by category what you will be required to provide for most Co-op boards.

Financial History
Last 2 Years Tax Returns w/ W2's
Financial Net Worth Form (All Assets & Liabilities)
Bank Account Hard Copies (Last Month)
Hard Copies backing up Assets

Current Salary
Last 2 Pay Checks or Deposit Transfers

References
Up to 5 Personal References
Up to 3 Business References
Letter from Employer stating position, salary, & length at firm
Letter from Bank confirming accounts and balances
Letter from present Landlord

In addition to all of this you will need to gather these loan documents from your lending institution (usually takes the longest to receive):

Copies of Aztec Recognition Agreement (3)
Copy of Loan Commitment Letter

Things The Board Looks For:
1. No more than 1/3 monthly salary to be used for housing costs
2. At least 1 Years worth of Mortgage + Maintenence in liquid assets AFTER closing costs
3. Increase in salary from previous year

Other items the board may ask for can be copies of personal ID's, certificate of foreign status, hard copies of individual item's net worth, or the contract of sale if you are selling a property.

NOTE: The seller broker has a responsibility to their client to pre-qualify you (the buyer) for purchase of the property. The seller broker should be well aware of what the board will look for in terms of financial and situational (such as no parents buying for kids) and should NOT allow their client to accept the offer of an UNQUALIFIED buyer.

If you plan to buy a Co-op be prepared to present original copies of everything noted above, and possibly even more, for the board to review. Also keep in mind that you will be in a position later on when you sell where you will have to pre-qualify the potential buyer; no one wants a board turndown!

Originally Published 01/07/2006

Posted by urbandigs at 03:34 PM | Comments (0)

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No Finance Contingency Explained

A: A 'NO FINANCE CONTINGENCY' refers to when the Finance Contingency is OMMITTED from the contract of sale by the seller of an apartment to protect themselves in the event that the buyer can NOT secure a loan prior to closing. Should this occur, the buyer will have to come up with cash to buy the apartment at closing or risk losing their 10% deposit. Read The Comments For Detailed Answer By Real Estate Attorney Peter Graubard.

Its amazing that when I google 'No Finance Contingency' I see a past UrbanDigs post as #1 on the search results and then pretty much garbage thereafter to describe what this really is for homebuyers. Lets try to clear it up right here:

Definition of Contingency: An event that may occur but that is not likely or intended; a possibility. A possibility that must be prepared for; a future emergency.

When the New York City housing market was going crazy a year ago (mainly because of no inventory, tons of demand, and lower mortgage rates), it was clearly a sellers market with packed open houses and multiple bids on properties. I recall an office meeting when our sales manager told us that 7/10 deals were going OVER ASK! That is an incredible statistic. In this type of crazed sellers market, many buyers had to deal with a No-Finance Contingency clause being added to the contract of sale. There was not much you could do about it. If you didn't accept the clause and sign the contract, the seller would just move on to the next bid. Not the case in today's market.

Sellers omit the Finance Contingency from the contract of sale to protect themselves from a deal going sour. Once you have a fully executed contract of sale there is not much that a buyer can do to get out of the deal; except not be able to secure a loan! So, the No-Finance Contingency clause protects against this emergency and states that even if the buyer cannot secure a loan prior to closing, they must either come up with all cash or surrender their 10% deposit. In contracts of sale that do NOT have this clause and a buyer cannot secure a loan, the seller is usually out of luck with the buyer getting out of the deal and their deposit back since the deal was contingent on securing financing!

You can see the appeal of doing this by the seller. But in today's market where the dynamic or power has shifted closer to buyers, seller's should find it very difficult to get a contract signed with this clause in it. Talk to your real estate attorney about this and be sure to find out if your contract of sale has this clause in it before you sign; especially if you have bad credit, are self-employed, or have reported declining income on your tax returns from successive years. These are all items that a bank will look at before committing to your loan!

REMEMBER: After the contract is fully executed the bank will send an appraiser over to appraise the value of the property. Assuming the #'s come in where they need to be, the bank will then process the appraisal and work on getting the buyer a loan committment. This loan committment letter is needed to submit to the condo or co-op board (with the rest of the board package) for final approval. Once you have board approval a closing date could be set up. So, just because you have a signed contract doesn't mean the deal is done; you still have the loan and the board approval to take care of!

~ The Finance Contingency
~ Is Your Earnest Money Protected By The Finance Contingency

Posted by urbandigs at 09:19 AM | Comments (4)

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February 24, 2006

The Art of the Offer: How To Submit A Bid

All too often I receive offers from brokers and buyers that tell me nothing more than the amount of money they are willing to pay for the apartment. This is not a problem if you are willing to pay whatever is necessary to close the deal but the reality is that money is only a portion of the negotiation, especially with coops that require board approval. After all, my job is not only to get the highest offer possible but to also get the most qualified offer possible! Presenting my seller with an unqualified/not serious bid is simply a waste of their time and energy.

My Advice: Put all your cards on the table without disclosing how high you are willing to go to get a deal done. Here are a few ideas:

1. Always put the initial offer in writing: Type it up if possible to make it appear more credible.

2. Paint a solid financial picture of yourself: List your company name, job position, time with firm, salary & bonus.

3. Include how much down you are willing to pay: Back this up with a Pre-Approval letter from your mortgage lender.

4. When can you sign a contract: Include the amount of time you will need in order to produce an executed contract and usual 10% deposit (I would suggest hours not days; i.e. 72-96 hours).

5. Include when you can close: Sellers love a quick closing date (i.e. 30-45 days from contract signing).

6. Explain your offer with facts: Recent comparable sales, renovations, views/sunlight, location, etc.. Let them know that 'you know' whats going on in the building and surrounding neighborhood!

7. Let them know you are serious: Go ahead and state that you are 'ready to go' and that a timely response would be appreciated.

If the broker or seller asks you for more information after reviewing your offer, which obviously means that they are willing to work with you, give them what they ask for and present that in the best possible light.

Stay firm; don't be afraid to be patient and best of luck!!

Posted by Brady at 03:05 PM | Comments (0)

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February 23, 2006

Buyers Alert: In-Building Competition Helps

A: One side effect of a cooling housing market is that there will be competition amongst property or equity owners of the same building. Depending on the 'urgency to sell' factor there could be some good buying opportunities here as sellers lower their price to get the most activity in the building.

Its one of a seller's more painful headaches. Here is how it happens:

You spend a month planning your selling strategy and renovating your apartment. You place your ads, you take your pictures, you design your showsheets, and you start the showings. A few weeks later another 1BR in your building comes on the market asking $50K less than you. And all you can think is, "...ARGHH!! Now I have to lower my price".

Well you don't have to lower your price right away but you might have to at some point down the road to get a deal done. Savvy buyers should use any in-building competition to their advantage by putting pressure on the seller of the higher priced unit during negotiations.

Here are a few buildings that have some like units for sale at the same time, putting even more control into the hands of the buyers!

245 East 93rd - Astor Terrace Condo

Apt: 22A
# Beds: 1
# Baths: 1.5
Size: 967 Sq. Ft.
Price: $850,000
Marketed By: Rachel Melniker of Corcoran

Apt: 25J
# Beds: 1
# Baths: 1.5
Size: 960 Sq. Ft.
Price: $795,000
Marketed By: Sara Waisman of Elliman

301 East 79th - Continental Towers Condo

Apt: 7P
# Beds: 1
# Baths: 1
Size: 700 Sq. Ft.
Price: $765,000
Marketed By: Nancy Marshak of BrownHarrisStevens

Apt: 19D
# Beds: 1
# Baths: 1
Size: Aprox 700 Sq. Ft.
Price: $700,000
Marketed By: Angela Rapoport of Corcoran

Apt: 19E
# Beds: 1
# Baths: 1
Size: Aprox 700 Sq. Ft.
Price: $725,000
Marketed By: Angela Rapoport of Corcoran

Just a few to give you the idea. The next time you go out viewing apartments and find a building you really like, ask your broker if there are any like units for sale. If so, you may be able to negotiate a better price as the sellers compete with each other!

Posted by urbandigs at 08:13 PM | Comments (0)

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February 22, 2006

Greenwich Village Doorman Studio's Under 350K

A: So you want to live in Greenwich Village and you require a Doorman with a budget of 350K. Thought it wasn't possible? Think again!

I found 2 Studio apartments in Greenwich Village that are in doorman buildings and still under 350K! For those of you in the market for this location and price range, be sure to check these out!

175 West 13th Street

# Beds: 0
# Baths: 1
Size: N/A
Maint: $668
Asking: $338K
Marketed By: Michael Johnson & Tami Solomon of Corcoran

101 West 12th Street

# Beds: 0
# Baths: 1
Size: 400 Sq. Ft.
Maint: $590
Asking: $340K
Marketed By: Linda Partland of Corcoran

Both of these units have been on the market since September of 2005 and both were originally priced at $359K and lowered to what you see now. So, there may still be some negotiating room available (something to keep in mind should you go for it). Good Luck!

Posted by urbandigs at 11:20 AM | Comments (3)

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February 21, 2006

High End Blues: 111 East 85th Street

A: The latest in the high end blues saga brings me to 111 East 85th Street Cooperative where a sprawling 2,600 square foot 3 Bedroom / 4 Bathroom property is now asking $3.05M.

There are many growing families out there living in Manhattan that absolutely must be close to central park and be in a good school district (PS 6 in this case) at the same time. Buying a 3+ Bedroom Condo that is at least 2,600 square feet with these requirements could put you back a good $4-5M or so; check out this 3BR/4BTH Condo on 1049 Fifth Avenue asking $5.395M and almost 3x the monthly's. So, when a 3BR/4BTH Co-op between Park Avenue & Lexington Avenue on 85th Street gets a price chop of almost $500K, buyers in this market should know about it and take a trip over to check it out!

111 East 85th Street; Apt. 16DE

Size: 2,600 square feet
Maint/CC: $2,484
Price Per Sq. Ft.: $1,173
Originally Priced at $3.5M, Reduced to $3.05M on 2/14/2006

Price Reduced: $445K
Marketed By: Robin Foxx of Halstead

Posted by urbandigs at 08:40 AM | Comments (0)

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February 16, 2006

Bidding War? In Today's Market?

A: What happens when you have a 235K exclusive for sale in the Upper West Side? A bidding war thats what!

YOU BETTER GET YOUR BUTT IN GEAR AND SEE THIS STUDIO AS BEST & FINAL DEADLINE IS TODAY AT 5PM!!!

Marketed By: Joshua Nathanson with Corcoran

Posted by urbandigs at 10:23 AM | Comments (0)

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February 15, 2006

BuyMyApt.com? This FSBO takes charge!

A: I saw this comment on Curbed.com today by Julie. Julie is selling her apartment on her own and reserved the domain www.buymyapt.com to help market her property! After a quick call to the owner for the OK to help in her marketing efforts, here it is. Good Luck!

301 East 22nd Street: OH Sunday 12:00 - 3:00PM

ASKING: $699,000
SIZE: 725 Sq. Ft.
MAINT: $933/Month (Low?)

After some quick investigating I found this one in same building whose seller is using the services of a broker, yet is listed 80K cheaper? Taking into account renovations expenses, I'm wondering what is wrong or different with this unit than the above FSBO?

301 East 22nd Street; Asking 619K; 1BR/1BTH; Marketed w/ Bellmarc

I guess we can throw that 'brokers don't bring anything to the table, they just add on 3-6% to the asking price as their fee' talk now!

More ACTIVE comps for this Gramercy neighborhood:

1. 235 East 22nd; Asking 645K; Elliman

2. 305 East 24th; Asking 600K; Halstead

~ One Main DUMBO: Buy From Owners, Save 50K (comments)

Posted by urbandigs at 04:04 PM | Comments (3)

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February 10, 2006

To Rent or Not To Rent?

A: Read this post I saw on Matrix today about whether you should write your check to a mortgage lender or a landlord.

Its always a tough question and one that should be answered based upon your OWN financial situation. Lets go over the facts and then the figures of owning your own home first before trying to answer the RENT or BUY question.

FACTS IN OWNING:

1. There are Tax benefits to owning a home.
2. You are building wealth for yourself in real property value (condo) or equity value (co-op).
3. You will have something to sell in hard times.
4. Owning is NOT for you if you plan to move in the near future.

FIGURES IN OWNING:

1. Its expensive to own your own home when the housing market has boomed for the past 4 years; Monthly Payment will include MORTGAGE + MAINTENENCE + TAXES!
2. Property taxes may RISE raising your monthly payment.
3. Money is MORE expensive to borrow today than it was over the past few years.
4. There is a 'shrinking' difference between the total cost of owning and the rental price of like apartments in NYC. Owning is still more expensive than renting but when you calculate in the tax savings of owning, the gap is closing.

If stocks have a P/E ratio to evaluate value than housing should have a owning/renting ratio to evaluate owning a home vs. renting.

Lets look at a 1BR in Murray Hill that is about 750 sq. ft..

132 East 35th Street: Listed By Richard Silver of Corcoran

TO OWN: At 25% Down and a interest rate of 5.875%, this apartment will come to about $2,968/Month.

TO RENT: To rent a similar unit in Murray Hill my sources say it would cost about $2500 or so; give or take a few hundred for better location and building. Here is a Craigslist Listing.

My thoughts:

It seems to me that the combination of the slowing housing market combined with rising rents is leading to a better BUYING market when you crunch the numbers and take into account tax benefits. Therefore, the formula for whether you should BUY or RENT falls onto the answer to these 2 questions?

1. Do you have a secure job making enough money to put aside 1/3 your monthly income to housing payments?

2. Do you have enough liquid assets to cover the down payment + closing costs, and still have some money left over to cover 6-8 months of housing payments?

If you answered YES to both of these 2 questions then you should BUY now.

If you answered NO to any one of these questions, then you should RENT now.

~ Build Them & They Will Go Rental

~ $2,495 1BR in Murray Hill on Craigslist

Posted by urbandigs at 04:51 PM | Comments (3)

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January 30, 2006

One Carnegie Hill: New Condop Update

A: With One Carnegie Hill, 215 East 96th Street, almost finished I see 14 listings currently for sale by those who purchased units last year during pre-contruction. As we get closer to occupancy, planned for Winter 2006, expect more units to be up for sale setting the stage for in-building competition amongst investors. However, this building is NOT entirely made up of sales units, as Related Companies will hold on to a portion of units for rental use.

The Related Companies new condop (A Co-op with Condo Rules/By-Laws) is part residential sales, part rentals with tons of amenities. While the location is right on the cusp of the "Do Not Cross 96th Street" mantra of Upper East Siders, and it is right next to a Mosque (a pretty nice one too), sellers are valuing units for sale here at aproximately $912-$1350/Per Square Foot.

Occupancy for this new building is expected during the Winter of 2006. Based on the description on file:

Over 16,000 Square Feet of ammenities including a private Swim and Health Club, Pet Spa, Aerobic and Yoga studio, Childrens Play Room, His & Her Locker Rooms with saunas and showers, Massage Room, Business center, and outdoor Garden Patio with private Barbecue Areas. Additionally, the roof top sun deck boasts Panoramic views and has an indoor Party Lounge. Kitchens feature luce de Luna granite, porcelain tile floors, stainless appliances and Waterworks fixtures. Bathrooms feature Botticino Marble tub surround, a honed Imperadore Floor, high gloss ebonized cabinet and kohler fixtures. The warm enveloping lobby is designed by Rockwell Group and the entrance is on 96th Street. It features Spanish ambarino pavers, Santos Rosewood Panelled Walls, and a copper leaf vaulted ceiling.

Of the more expensive units listed for sale are:

Apt. 33B
Asking: $1.95M
Size: 1,653 Sq. Ft.
Price Per Sq. Ft: $1,180
Marketed By: Carol Kelly of Corcoran

Apt. 37B
Asking: $1.9M
Size: 1,513 Sq. Ft.
Price Per Sq. Ft: $1,256
Marketed By: Carol Kelly of Corcoran

Apt. 31D
Asking: $900K
Size: 679 Sq. Ft.
Price Per Sq. Ft: $1,325
Marketed By: Carol Kelly of Corcoran

And finally, the 1 Unit in the building priced UNDER $1,000 per square foot:

Apt. 31A
Asking: $805K
Size: 883 Sq. Ft.
Price Per Sq. Ft: $912
Marketed By: Carol Kelly of Corcoran

Related is certainly one of the most popular developers in NYC and you can be assured that their buildings will be very luxurious with great amenities. However, with a cooling market and location that is suspect I'm not sure that these units are going to sell as fast or as high as investors' hoped. They should still make money on the deal, just not as much as they previously thought. Let's see what happens when deals are closed and the first units are flipped.

Posted by urbandigs at 08:27 AM | Comments (0)

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January 16, 2006

When a Co-op is not cooperative?

A: If your co-op board has rejected your buyer, there is unfortunately not a lot you can do about it. I have seen on occasion buyers resubmitting information to the coop boards through their attorney, but it is rare that a board will reconsider their decisions. The best thing that you can do is pre-qualify your buyers. Don't be willing to accept an offer from a buyer based on the monetary offer alone.

Here are a few general tips to use when prequalifying buyers.

1. Debt/Income Ratio: Monthly mortgage and maint. payments should not exceed 25% their income. For stricter co-op boards I would also consider: mort. + maint. + current debts to not exceed 25% of monthly income.
2. Mortgage Pre-Approval Letter: Be sure to get the loan pre-approval from the applicant's mortgage broker and review loan conditions required for approval. Also, just because it's a cash deal doesn't necessarily mean it's a done deal.
3. Tax Returns: Review their past 2 years tax returns and measure their income according to the Adjusted Gross.
4. Employment History/Salary: Look for solid work history and consistency of income. Also pay attention to the type of job and consider that their income may fluctuate with the industry in which they work.
5. Liquid Assets After Closing: As a general rule I would look for 2 years worth of monthly mortgage and maintenance payments LIQUID AFTER CLOSING. This may vary from building to building; some will allow less and others may require substantially more assets to be available after closing.
6. Gifting Money: Are the applicants being gifted money? If so, be sure to include the proper tax documents (Gift Letter) that were used for by your accountant.
7. Gaurantor Needed: Does the applicant need a guarantor? Be sure to check with the managing agent first to make sure the board will allow it.
8. Pied-a-terres/Pets: Pied-a-terres and pets (be sure to ask how many, breed and the weight) also must be permitted by building rules.
9. Credit Score: Review the applicant's credit report for major red flags. You can obtain a copy of the credit score/report from the buyer's Real Estate Broker or the buyer's Mortgage Professional.

The requirements of a co-op board for transactions amongst shareholders varies from building to building. As the seller, you better be sure to fully understand what your board requires for approval BEFORE you accept any offer. Its not just the highest offer, it's also the best qualified offer! No one wants a board turndown.

Posted by Brady at 10:07 AM | Comments (0)

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January 09, 2006

How Low Can You Go - High End Blues

A: High End housing in NYC is slowing down with units staying on the market much longer, and if not priced aggressively is putting sellers in the bad position of having to reduce their asking price numerous times. How low can it go? It depends on how desperate the seller is and how soon they need the money!

Its the toughest niche market to sell in when the housing market starts to slowdown as the New York City real estate market has over the past 6-8 months. Those looking to sell their properties on 5th Avenue, Madison Ave or Central Park West are finding it tough to get their original asking prices. I'm hearing that Open Houses are just that, OPEN with not many people showing up. Are buyers scared to put down their millions in NYC real estate if they think the market is slowing down? Seems to be the case. But savvy buyers will be especially vigilant during these times to try to low-ball a high end property that has already reduced their asking price 1,2 or even 3 times.

Look at 1016 Fifth Avenue, a very desireable pre-war co-op building on 5th Ave between 82nd & 83rd streets. Even with Central Park right across the street units in this building are being reduced drastically in an attempt to spur buyer demand.

There are currently 4 high end units listed for sale in this building:

Apt. 5A
On the market since 1/11/2005
Reduced from $8.3M to 7.3M

Reduced $1M

Apt. 5D
On the market since 3/17/2005
Reduced 3 times from 3.55M to 2.995M

Reduced $555K

Apt. 5B
On market since 6/7/2005
Not Reduced Yet - 5.95M

Apt. 14B
On market since 9/24/2005
Not Reduced Yet - 7.8M

Now, this is a first class pre-war building that resides in a prime location in the Upper East Side. The building is literally steps from Central Park & the Metropolitan Museum of Art while the building offers a brand new fitness center, individual basement storage, and a staffed elevator. How low will it go? No one knows for sure but I can tell you that the units that have not been reduced yet are sure to be feeling the pressure from the ones that have reduced their asking prices closer to market value already.

Those in the market to buy a high end 2-4 bedroom apartment with a high priority on proximity to Central Park should keep their eyes on these units for further price cuts. In the end, you might be able to squeeze out a substantial discount for this very high quality product.

High end buyers should use this philosophy for other luxury buildings across Manhattan where the seller is in the uncomfortable position of lowering their asking price until a buyer steps forward!

Its important to note that sellers usually rely on their hired broker to advise them on how much the price should be reduced, and that the concept of price-reducing is NOT an exact science. After months on the market, the seller broker probably just wants to do a deal and might lower the property's price too aggressively to get one done.

Will you be the lucky buyer of a property reduced too much?

Posted by urbandigs at 11:28 AM | Comments (0)

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January 06, 2006

A Condop? Whats that? Is it For Me?

A: A Condop is the marketing term given to a Co-op that has rules and by-laws similar to that of a Condiminium. The freedom to sublet, put only 10% down at closing, and easy board approval are characteristics of a Condo that have been adopted by a Co-op. The subsequent term to define this type of entity has been "A Condop". Closing costs will be similar to that of a Co-op (significantly lower than Condo's) and you will be buying shares in a corporation rather than real property. *Although you are technically buying a Co-op (shares of stock), I will refer to a Condop as a Condop throughout this post.

Buying a Condop definately has its advantages if you are lucky enough to find one in the neighborhood and price range that you require.

Financial: The closing costs will be much lower than if you were buying a Condo. Transaction fees usually end up being a lot more than most think at closing, and if your buying a Condo they could be twice as much as if you bought a Co-op. Talk to your real estate attorney before signing the contract to get a estimate of your closing costs.

Freedoms: Just like a Condo, a Condop allows you to sublet your property without restrictive policies; such as, 'Must Live-in 2YRS & then can Rent out for 2YRS' which happens to be a frequently occuring policy in Co-op's.

Board Approval: Condop's usually take on the NO BOARD APPROVAL or EASY BOARD APPROVAL policy of only looking into a buyer's credit and criminal history when reviewing for approval. On the other hand, a Co-op Board process is very tough with customized financial and personal policies lowering the pool of potential buyers that the property can be marketed to.

Required Down Payment: Most Condop's take on the 90% financing allowed policy that is so common in Condominium's. Allowing a buyer to finance up to 90% of the purchase price is a big selling point of Condo's and opens up a larger audience of buyers that can possibly purchase the unit. Co-ops that require more than the traditional 20% down are restricting the group of people that can potentially purchase a unit (which is usally exactly what the board wants).

Median Valuation: Condop's are normally valued in between a Co-op and a Condo. If I were to describe how the same apartment would be valued, under each of these property tyes, it would look something like this:

500K --------> 550K ---------> 600K
Co-op --------> Condop ------> Condominium

Put all these characteristics together and you get a property type that will be very attractive to a first time buyer with limited funds, who needs to finance 90% of their planned purchase. With loans going out to anyone with a credit score over 500, the fact that there is NO BOARD APPROVAL is the next vital ingredient for the potential homebuyer who normally wouldn't have enough liquid assets after closing to appease the co-op board. Add in a valuation lower than a pure Condominium but higher than a pure Co-op, and you can see why Condop's have their own niche market.

Posted by urbandigs at 02:55 PM | Comments (0)

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January 04, 2006

Using A Buyer Broker

A: After reading a Curbed.com reader ask the question of loyalty to her Buyer Broker, I had an urge to write this post explaining the job of a Buyer Broker and how one can help you in your real estate needs. There are NO FEES to use the services of a Buyer Broker as their commission is split with the Seller Broker at closing!

My Definition of a NYC Buyer Broker: A broker who represents the buyer and has a fiduciary responsibility to the buyer in finding a property that meets their needs on all levels (price, location, size, condition, style, and living quality). A buyer broker should look to find the best value for their client and negotiate on their behalf during the bidding process to get the lowest possible purchase price from the seller. In times of bidding wars, the buyer broker should advise their client on how high over ask the buyer should bid without overvaluing the property or putting their client in financial risk.

In addition to these services a Buyer Broker will prepare the client for the real estate transaction in a number of ways:

1. Assist the buyer in finding a Real Estate Lawyer if one is needed to review the property's offering plan, 2-Years building financials, and contract of sale.

2. Assist the buyer in finding a mortgage broker if one is needed. A good buyer broker will ask their client what their strategy is with their investment and advise their client on possible mortgage products that could be used. Ultimately, the mortgage broker is the professional you should rely on for the final product to use.

3. Preparation of the board package. If buying a Co-op, the buyer broker should be especially vigilant to providing everything that is requested by the board and preparing the package in a professional manner. If buying a Condo, this process becomes much less tedious.

4. Co-ordinate visits to the property for contractors as needed and accompany the client on the final walk-through prior to closing to fully inspect the property based on the contract of sale's terms and conditions. All electrical, plumbing, and appliances should be in working order.

Most buyer brokers, also known as Real Estate Salespersons or Agents, are in real estate as their full time profession which does not mean they know what they are doing. It is up to the buyer to determine whether or not their buyer broker is responsible, knowledgeable, and privy to the current housing market prices and developments.

I can tell you that as a broker (aka, Real Estate Salesperson) there is a ton of competition out there and very little loyalty. The more experienced brokers understand the need to 'set themselves apart' by offering their clients exceptional service in the most professional manner possible. My thinking is:

I am going to find you the highest quality apartment that meets your needs for the lowest possible price, and do it in a way that makes this transaction a positive experience for you that you will refer my services to all of your friends and family when they need to satisfy their real estate needs

As a buyer you should be especially vigilant that your buyer broker is really out there to assist you, and is not just trying to make another sale. Is your broker showing you apartments in your price range? Is your broker showing you apartments with low monthly's? Is your broker doing the necessary homework to only show you apartments with S/W exposures? Is your broker going out of their way to accomodate your schedule? Is your broker constantly showing you properties that are away from your desired neighborhood? These are the things you should ask yourself when analyzing your broker.

In the end its not about the deal, its about finding you the best apartment possible and making you happy with your new home and investment!

Posted by urbandigs at 10:52 AM | Comments (1)

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January 03, 2006

Floors & EasyClosets.com

A: Do some research and ask around for a few reputable contractors to give you a quote for sanding, staining, and poly'ing the hardwood floors. It will probably be about $3/Sq. Ft. for a good company which will prove to be well worth it. Then, go to www.easyclosets.com
and follow the on-screen Closet Design Wizard to create your new closets based on your own needs.

First lets discuss the floors. The impression a potential buyer has on a property when they FIRST open that door is critical. Based on my own experience I would tell you that within the first 30 seconds my clients know whether or not this is the apartment they will ultimately place a bid on. Having said that...

Having a good floor that shines back out at you and just looks fantastic will almost certainly gaurantee you a 'admirable' first impression as buyers come in.

Floors is another renovation that varies with each apartment but generally speaking I would look to put about $3/sq. ft. aside for floor refinishing. After a quick search on Google I found these:

SpotLessFloors
Masterpeice Floors
NY Hardwood Floors

Now on to the closets. Most apartments in NYC dont have incredible closet space and most dont have them furnished either. For a very little money and about 30 minutes of labor you can really maximize and enhance your closets with www.easyclosets.com.

Using the Closet Design Wizard on the link above you first select the shape of the closets that you will be renovating. Then enter in the actual dimensions and you will be sent on to the design wizard. Its actually pretty cool after a good 5 minutes or so of figuring the thing out. For me, I tried to keep my budget at $450 a closet so I can get both of mine done for under $1,000. Here's how 1 turned out:

One very important note I can offer you is to be sure to use the togglebolts (which are the v-shaped bolts that are pushed through your drywall to add stability to the support bar) as you follow the install instructions or else the support bar may not be able to withstand the weight of the closet, and it will fall to its impending death. FYI: Below is an image of a toggle bolt and its screw on the left and exactly how this bolt is used on the drywall to the right.

If you are a seller with limited funds or a buyer/owner looking to enhance your new property, then this broker advises you to invest in refinsihing your hardwood floors and furnishing your closets!

Posted by urbandigs at 09:40 AM | Comments (0)

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