Archive for February, 2013

Feb
27

How’s the Market? January 2013

Posted by: | Comments Comments Off

While Quarterly Sales Reports show closed activity for the previous quarter, monthly Contract Signed reports are the ‘crystal ball’ of closed sales to come.  Granted all contracts signed for any given month may not close in the next month, and some may not close at all but most (over 95%) will become closed sales which will become part of the next Quarterly Sales Report.

In the following charts and graphs you can see how the market stacks up against last month and this month last year.

 

 

  

  

 

 

 

 

Feb
25

Legal Question: What do I need to Sell an Estate?

Posted by: | Comments Comments Off

Q:  What should I know about selling an estate that is different from selling my own co-op?

 A:  Make sure your broker contacts the managing agent for the co-op at the beginning of the transaction to be sure you have plenty of time and are able to gather all the necessary documentation necessary to effect the transfer of stock and lease at closing. 

 Though each building may have their own process, generally they will need the following documentation:

  • Certificate of Letters of Testamentary dated within 6 months of the closing
  • An Affidavit of Debts and Domicile executed by an executor or administrator of the estate
  • Federal Release of Lien issued by the IRS (or affidavit confirming that no such release is required)
  • New York State Release of Lien of Estate Tax issued by the New York State Department of Taxation and Finance
  • The Decedent’s death certificate
  • Last Will and Testament fo the decedent (certified as true and correct).

You should speak with your attorney to be sure that the necessary documents are available and ready to be turned over when requested prior to closing.

 

Based on REBNY article by Neil B. Garfinkel, REBY Residential Counsel Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP   

This post is provided as informational proposes only and should not be construed as legal, accounting or tax advice by the RealEstateGeezer. You should seek advice from a qualified professional.

Comments Comments Off

The Elliman 2003-2012 Decade Survey for Manhattan Townhouse Sales was released recently and summarized below was prepared by Miller Samuel for Douglas Elliman.

With the drop in inventory and the rise in sales, 2012 proved to have the fastest market pace since 2006″

The Manhattan townhouse market had the most sales since the market peaked in 2007 and activity has been rising for the past three years. Prices remained stable over past year, as they have been during the past four. The market has tightened over the past year as listing inventory fell and marketing times are now faster on average than during the boom. The townhouse market has continued to perform well and we look forward to another active year in 2013.

  • Median sales price fell 4.2% to $3,500,000 from the prior year as the other indicators rose over the same period. Average sales price rose 6.1% to $5,260,136 and average price per square foot jumped 12.2% to $1,265 over the same period.
  • Townhouse inventory fell 18.9% to 411 from the prior year total bringing the absorption rate down to 17.8 months, from 25.4 months in 2011. This was the faster pace of absorption since 2006 when the rate was 16.4 months.
  • There were 277 sales in 2012, second to the decade high water mark of 343 seen in 2007. Residential market share reached 2.6% of Manhattan activity, the highest since 3.1% was reached in 2006.
  • Days on market, the number of days from the last price change to the contract date, fell to 106 days, 2 months faster than 166 days in 2011.
  • Listing discount, the percent difference between the list price at the time of sale, fell to 4.6% in 2012 from 5.4% in 2011.

The Elliman 2003-2012 Decade Survey for Manhattan Co-op and Condo Sales was released recently and summarized below was prepared by Miller Samuel for Douglas Elliman.

Despite listing inventory falling to a record low, the number of sales edged higher for the third consecutive year

The Manhattan co-op and condo market finished 2012 with the second highest number of sales in the past decade after the 2007 peak. For the fourth consecutive year, housing prices showed stability but listing inventory fell to a twelve year low, likely placing upward pressure on housing prices in 2013. Record low mortgage rates have brought new buyers into the market despite tight mortgage lending conditions. We remain encouraged about the direction of the market and will continue to keep you informed of the trends.

  • The 2012 total number of sales was 10,508, 3.4% above the year ago total and 19.4% above the 2003 level. The number of sales remained 21.8% below the 2007 housing/credit boom peak.
  • Median sales price was $835,000, 1.8% below the year ago levels. Average sales price and price per square foot followed the same pattern, slipping 0.7% and 0.1% over the same period.
  • There were 4,749 listings available at the end of 2012, 34.2% less than the prior year and 21.9% below the 2003 total. Inventory is at the lowest level in 12 years since we began tracking the metric.
  • The number of days to sell a Manhattan apartment in 2012 was 172, a month and a half days slower than in 2011 as older inventory was absorbed from the chronic shortage of supply.
  • Listing discount, the percentage difference between the list price at time of sale and the sales price, was 5.6% in 2012, up from 4.3% in 2011 and above the 4.5% decade average

 

Feb
17

In the News February 17, 2013

Posted by: | Comments Comments Off

 1/14/13  The Pricing Puzzle:  How much is that Central Park view really worth?  In a year full of eye-popping luxury listings — in the second half of 2012, four homes hit the market asking at least $90 million — pricing a New York City apartment can seem increasingly subjective.    See the full article at the Real  Deal .

2/4/13  Despite real estate ties, Ed Koch was lifetime renter:  Despite having been a force in real estate, the late former Mayor Ed Koch never personally owned a piece of New York City.    See the full article at TheRealDeal.com

2/5/13 Douglas Elliman releases Manhattan Townhouse Decade Report:  The Manhattan townhouse market had the most sales since the market peaked in 2007 and activity has been rising for the past three years. Prices remained stable over past year, as they have been during the past four. The market has tightened over the past year as listing inventory fell and marketing times are now faster on average than during the boom. The townhouse market has continued to perform well and we look forward to another active year in 2013.  See the full report at Elliman.com   

2/5/13 UES residents deterred from use of privately owned public spaces, new study finds:  A majority of the Upper East Side’s privately owned public spaces, or POPS, discourage public use, new research from Hunter College’s urban planning institute reported by DNAinfo shows.  See the full article at TheRealDeal.com 

2/6/13  NYC Remains bargain among top world cities:  New York may feel like a squeeze for all but the city’s top earners, but compared to other major world metropolises, the five boroughs are still a relative bargain.  Read the full article at TheRealDeal.com

2/13/13 New Housing Legislation levels the playing field:  Last month the New York State Legislature passed an important piece of housing legislation called the Omnibus Housing Bill.  Signed into law by Governor Andrew Cuomo on February 5, the bill renews the coop/condo abatement and J-51 programs as well as amends certain provisions for the 421a program.  See the full article from REBNY on Facebook.com.

Feb
15

Tips for creating a Quiet Sanctuary at Home

Posted by: | Comments Comments Off

If you live in a New York City apartment, you are likely subjected to any number of loud and often disturbing noises.  Neighbors cooking, garbage trucks rumbling past, car alarms and construction noise are just a few of the sounds that can disrupt your peaceful environment. 

Here’s some advice from Real Estate experts:

Consider the location:  both inside the building and the neighborhood.  If you’re looking for a quiet apartment, you may want to think again before relocating next to a school, hospital, fire station or construction site.

Don’t judge a building by its exterior:   If you’re looking for absolute quiet, avoid apartments near elevators, buildings that allow pets, and tiled hallways.  Decorate with soft materials to dampen noise, like carpeting, draperies, and textiles on the walls.

Put technology to work for you:  Sound barriers such as wall and window treatments, soundproofing between units and dropped ceilings help deaden the sounds from within the building.  Replacing windows out of your budget?  Consider adding an additional layer of window inside your existing window.  CityProof Windows provides this service  at a relatively affordable price.

Do your homework:  Check out your target neighborhood during different times of the day and week.  You’re unlikely to hear anything disturbing during a 9-5 visit (unless the apartment is near a construction zone), but you could get an earful if you wander by in the early morning or late evening.  Also check in with the doorman and other residents if possible to determine if this is the right place for you.

 

http://www.dnainfo.com/new-york/20130110/new-york-city/tips-on-making-your-home-quiet-sanctuary-from-citys-bustle

Feb
12

1031 Exchange made Simple

Posted by: | Comments Comments Off

A 1031 Exchange, a strategy once very fashionable and frequently used had gone by the wayside during the Real Estate slump. This is something I feel will be big again as people begin selling their properties.

A 1031 exchange, otherwise known as a tax deferred exchange is a simple strategy and method for selling one property, that’s qualified, and then proceeding with an acquisition of another property (also qualified) within a specific time frame. The logistics and process of selling a property and then buying another property are practically identical to any standardized sale and buying situation, a “1031 exchange” is unique because the entire transaction is treated as an exchange and not just as a simple sale. It is this difference between “exchanging” and not simply buying and selling which, in the end, allows the taxpayer(s) to qualify for a deferred gain treatment. So to say it in simple terms, sales are taxable with the IRS and 1031 exchanges are not. US CODE: Title 26, §1031. Exchange of Property Held for Productive Use or Investment http://www.1031exchangemadesimple.com/uscode-1031.html

Due to the fact that exchanging, a property, represents an IRS-recognized approach to the deferral of capital gain taxes, it is very important for you to understand the components involved and the actual intent underlying such a tax deferred transaction. It is within the Section 1031 of the Internal Revenue Code that we can find the appropriate tax code necessary for a successful exchange. We would like to point out that it is within the Like-Kind Exchange Regulations, issued by the US Department of the Treasury, that we find the specific interpretation of the IRS and the generally accepted standards of practice, rules and compliance for completing a successful qualifying transaction. Within this web site we will be identifying these IRS rules, guidelines and requirements of a 1031. It is very important to note that the Regulations are not just simply the law, but a reflection of the interpretation of the (Section 1031) by the IRS.

For more information, see 1031 Exchanges Made Simple: http://www.1031exchangemadesimple.com/

Categories : Investors
Comments Comments Off
Feb
11

Lot Line Windows – Question of the Week

Posted by: | Comments Comments Off

With the Second Avenue Subway and other construction on the Upper Eastside,  several buildings, most notably 233 East 69th Street, have seen blocking some of their lot line windows. This certainly impacts the value of those affected apartments.

Q:  What are Lot Line Windows?

A:   A “lot line window” is a window that is built on a side of a building that shares a boundary line with a neighboring property.  If the adjacent building is built up to or higher than this window, then the lot line window will likely need to be sealed off.  For this reason, lot line windows are not counted towards light and ventilation requirements.    

In condominiums and cooperatives, the offering plan will generally indicate whether there are any lot line windows in the building, and if so, which apartments may be adversely affected by the lot line windows.

Important Tip:  If a building has lot line windows, it can be very difficult to determine the probability of whether the lot line windows will actually be sealed off.  Signs indicating that an adjacent property may be developed (i.e. vacant, adjoining lots or a rental building) could increase the probability that a lot line window may be sealed off.  An architect or attorney who specializes in zoning and land use should be consulted.

Neil B. Garfinkel,
REBNY Residential Counsel
Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP

From REBNY Newsletter

This post is provided as informational proposes only and should not be construed as legal, accounting or tax advice by the RealEstateGeezer. You should seek advice from a qualified professional.

Comments Comments Off
Feb
07

Bloomberg Announces Micro-Apartment Design Winner

Posted by: | Comments Comments Off

Mayor Michael Bloomberg announced the winner of New York City’s micro-unit apartment design competition this week.  The design competition we reported on in July seeks to address some of the City’s housing problems.   

The winning team of Monadonck Development LLC, Actors Fund Housing Development Corporation and nARCHOTECTS, designed the modular units with 10-foot-high ceilings, Juliet balconies, big windows and ample storage.  See the slide show of images  here.  The 250 to 370 square feet micro-apartments are being built as pre-fabricated modular units at the Brooklyn Navy Yard, and will be placed on a city-owned site at 335 East 27th Street in Manhattan.  They should be ready for move in by September 2015.  It is being reported that 22 of the 55 units will be set aside for the low- and middle-income renters with a price range of $940 to 1870 per month.

Many of the space-saving plans including completion entries are featured in an exhibit at the Museum of New York City called “Making Room:  New Models for Housing New Yorkers”    

http://homes.yahoo.com/blogs/spaces/york-micro-apartment-design-winner-announced-214258808.html

Feb
04

5 Tips for Buyers Who Use Down payment Gifts

Posted by: | Comments Comments Off

About a quarter of first-time home buyers use gifts from relatives to fund a down payment for a home purchase, according to data from the National Association of REALTORS®. But lenders are carefully scrutinizing such gifts.

“Basically, the banks want to make sure that you’re not getting a second loan,” Ray Mignone of Ray Mignone & Associates, a financial planning firm, told The New York Times. “If all of a sudden $50,000 pops into your account, they want to make sure it’s not a loan against the property that they’re going to put a mortgage on.”

In a recent article, The New York Times provided some of the following tips in making make these lenders’ checks and balances go smoother for home buyers:

  • Have the money come in a check or wire transfer so that it’s traceable. Lenders often be-come cautious over cash gifts.
  • Have the giver provide the lender with a gift letter, which verifies the money is a gift, the specific amount being given, the relationship to the borrower, and that repayment is not required.
  •  Deposit any gift money into the borrower’s account a few months before applying for a mortgage so the lenders have fewer questions about it, Mignone says.
  •  Consider federal gift-tax regulations: Individual gifts of more than $13,000 must be reported to the IRS and are subject to tax.

Be aware that certain types of mortgages may limit how much of a down payment you can receive as a gift. For example, with conventional loans, lenders may require at least 5 per-cent in the borrower’s own money that is not a gift. However, Federal Housing Administration loans — which are popular among first-time home buyers — do not have any limits on gifts and borrowers can use gifts to cover the entire down payment.

 

 

http://www.nytimes.com/2012/12/30/realestate/mortgages-to-givers-of-down-payments.html?_r=1&

Comments Comments Off