Are you in the market for a NYC condo apartment? Are you looking for something sparkling new, sleek and dynamic?

Consider a NYC Green Home. Featuring all of the amenities of traditional doorman, luxury hi-rises; eco-friendly buildings offer something even more: peace of mind.

Set your mind at ease. Not only will you purchase a home which is built from re-used, recycled, reusable or sustainable products, a home in which the air and water is filtered, and the rainwater reused to keep the grounds beautified, but you will also purchase a house in a micro-market that seems to be weathering the current economic downturn. According to Lydia Depillis’ article in the November 13, 2008 “New York Observer Article” the market for environmentally friendly housing in New York City is “…going strong: Driven by growing demand for eco-friendly living and working space, developers are forging full steam ahead on plans to obtain green certification.”

With many new LEED certified buildings in Manhattan, Queens and Brooklyn, you’ll have a variety of neighborhoods and styles to choose from. Of course, you’ll have to do your due diligence by reviewing the building’s financials and having a lawyer look over your contract before purchasing.

Have questions? Want more information on LEED certified buildings? Would you like a tour of the newest eco-friendly condos? Ask Lala.

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You don’t have the time to do your own thorough search.  You don’t know if you’re getting access to all the listings.  You are dealing with too much back and forth between different agents – who you know all share the same listings.  And negotiating… you don’t even know where to start.  Does paying more up front give you a discount on the rent or purchase price?  If so, does it still give you a discount if you have bad credit?

There are many reasons to hire a real estate professional to help you with your search.  It’s picking the right person to handle all your real estate needs that really matters.

Here are some considerations in finding the right agent or broker:

1. Does your agent have access to all the co-brokered listings?
2. Do they have expertise in the areas you would like to live?
3. Are there other agents in the company that would help manage your search if your agent becomes unavailable?
4. Is your agent punctual in responding?
5. Does your agent seem to understand the market?
6. Does your agent have the support of his/her agency? If this is a less experienced agent, do they have the advice of more experienced agents at their company?
7. Is your agent always reachable?
8. Does the agent you’re working with have the upper hand on technology?

The right agent will show you apartments in your budget and just above your budget to allow for negotiations.  To figure out your budget, they will ask you questions about your income and assets.  If you’re buying there will be additional inquiries into what you have to put down, where money is coming from and what assets you will have after down payment, closing costs and other charges associated with buying a co-op.

It is important to work with the agent you feel comfortable with.  Real estate professionals work on commission, and commission alone.  If you searching for the right agent do so only in the preliminary process.   Due to REBNY rules, all REBNY members share the same listings.  Stick with the agent you have come to know and trust.  Of course, if your agent is not representing your interests, it is always advisable to find a new agent as quickly as possible.

If you have any questions, Ask LaLa!

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The unfortunate truth is that, unless your building is rent-stabilized or rent-controlled, your landlord can raise your rent at the end of your lease as much as he or she wants.

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Pet policies vary from building to building and sometimes from apartment to apartment. Your best bet is to work with a broker who specializes in finding pet-friendly apartments. One broker who has found homes to a variety of pet is David Calderazzo. David’s pet-centric site can be found at www.allpetproperty.com.

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There are really two contingencies that comprise the “mortgage contingency”: (1) the risk that the sellers won’t be approved for the mortgage because of their credit risk as judged by the bank; and (2) the risk that the property won’t appraise for a value equal to, or greater than, the agreed purchase price. Buyers generally already know through the preapproval process how much money they can borrow, and at what rate, given their credit rating, salary, savings, assets, etc. So, the first type of risk is generally mitigated before the contract is signed. The risk that a property won’t appraise at a high enough price does not get mitigated until AFTER the contract is signed and an appraisal is conducted. What exactly is this risk? This risk is no less than the entire amount of your downpayment!
The bank will only loan you a percentage of the appraised value of the property. If the property does not appraise for the contract price or higher, then the bank will only be lending you a percentage of that lower value. If the buyer waives this contingency upon entering the contract, and the property appraises for a value lower than the contract price, the buyer must come up with the difference between the contract price and the appraised value at closing or forfeit his downpayment.
Example: Buyer contracts to buy a Condo for $1.3M, putting down 10%, or $130,000. The appraisal comes in at $1.2M. At closing the bank will lend the buyer whatever percentage of $1.2M that was bargained for (let’s assume 80% of the purchase price, or $1,040,000). So, the buyer now has $1,170,000 of the purchase price and had expected to add only the other 10%, or $130,000, at closing to complete the deal. Instead, the buyer must come up with another $100,000 to complete the deal. If he doesn’t, then he loses his $130,000 downpayment.
Lesson: Unless you know that you have the funding to make up whatever difference there may be between the contract price and the appraisal price, NEVER waive the mortgage contingency!

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Brokers charge a fee to either the renter or the property owner/landlord. In a low supply, high demand market, a landlord can pass the broker’s commission to the renter. So, in most cases, the fee is paid by the renter.

“No Fee” apartments from brokers generally signifies that the property owner is paying the broker’s fee.

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The term “OP” stands for “Owner Pays” and means that the landlord or property owner will pay the broker a commission if he brings a tenant who signs his lease. The standard OP amount is one month’s rent. Today’s OP apartment tend to be the luxury high rise buildings on the Upper Eastside or Downtown Financial District.

When the broker collects s fee from the landlord, he usually does not charge the tenant a commission. However, there are brokers who try to double tip and collect fees from both the landlord and the tenant.

Renters should ask the broker if he will be receiving a commission from an landlord for any particular apartment.

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It is purely a function of supply and demand. Outside of New York, the vacancy rate is much higher and apartments are much more plentiful, so landlords or property owners pay the broker’s commission.

With low vacancy and high demand for NYC apartments, landlords or property owners can pass along the cost of the broker’s commission – usually 15%, or about 1 and 3/4 months’, of the annual rent — to the tenant.

Immediately after 9/11, many people fled the City, or were forced to move back with their parents. Apartment supply increased, demand decreased and for many months after 9/11, landlords paid the broker’s commission.

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Your dilemma is a common one: how to start in New York when landlords want tenants already established. There are two alternatives. If you can find a job while still outside the city, then some landlords will accept an employer’s letter confirming your position and salary. That you would have a roommate who could do the same would improve your chances. But understanding that you have to be here to find a job, there appears but one solution: find an apartment share. Most people new to New York start out with a share. Opportunities are abundant, financial requirements are low, if they exist at all, initial cost are very low (usually just first month and one month security). Most roommate situations are month to month, meaning that one you are here, have a job and a bank account with something in it, then you can find a place of your own. One thing you may have overlooked: finding a reasonably priced place in the city takes time, a lot of time. You really have to be in New York already to look at apartments as they come on the market. A share gives you that time.

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It’s not unusual for management companies to wear two hats, that of managing agent of the property and that of broker. Managing companies frequently augment their management fees, which tend to be modest, with broker commissions. In fact, management companies expect and depend on this income and view it as part of their compensation package. Fees are charges to the tenant if the apartment is leased and to the owner if the apartment is sold. As long as the management company is properly licensed as a broker by the New York Secretary of State, the arrangement is entirely legal.

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