|
March 8, 2010 The market is kicking and we can feel it, based on our open house traffic, other of our colleague’s open houses, the amount of phone calls we are receiving and appointment requests.I can attribute the rapid pace of the market to the following: -Mortgage rates are still low-Wall Streets ’09 Bonuses were Robust- The Bottoming of the NYC Residential Real Estate Market - The “New Year Effect” = every new year people wake up on or about January 3rd and say, “ Oh my God, it is time to Sell my apartment or Buy an apartment!” - The absorption rate has decreased by a full 10 months to a new 9 month period. A good absorption rate average for a healthy market is 6-9 Months, so we are moving in the right direction. - A new feeling of confidence amongst buyers is in the air! A few things to keep in mind if you are a seller-~ It is still all about the price- do not hold on to 2006-2007 prices, those days are over for now.~ Make sure your building has been vetted by your agent. · What is the owner occupancy? 1. The majority of co-op and condo guidelines have not changed at most lenders. They want at least 50 to 70 percent of a building's units occupied by primary owners, no more than 20 percent investor-owned units, as well as strong financials, no outstanding litigation and a minimum of 10 or more units per building, which lessens the risk that one individual in default could drag an entire building into foreclosure. 2. The fear is that with a high percentage of sponsor- owned or investor-owned units, a financial default by one shareholder could place an enormous burden on the rest of the shareholders, thus placing the underlying mortgage payments in jeopardy. · How much money is in the reserve fund? · Is the building running at a deficit or is it running on budget? · Are there any major repairs in the future and how is the building going to pay for the upgrades or repairs? · How old is the roof · How old is the boiler · Does the building allow pets · Does the building allow guarantors · Does the building allow parents gifting? · What is the superintendent of the building like? Does he know the building like the back of his hands? · Does the building allow central air? · Are there current audited financials? · What type of information is in the minutes? · Many buildings are not allowing the use of interest-only loans. · Is the building on a bank approved list? At successful co-op buildings and condos, a sponsor will usually gain pre-qualification from a lender, which will then place the building on a list of approved co-ops, which in turn speeds the process of approving loans for individual apartments. · What is the size of the fidelity bond insurance on the building? The Fidelity bond insurance equals 25 percent of its annual maintenance into a bond which protects the building against employee dishonesty. The bottom line is that your agent has a lot of work to do to not only get a qualified buyer, but also to make sure that the buyer’s bank is going to give them a loan. If you have any questions, please email me:
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
|
