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3 Key Elements of Rental Income

Throughout my career, I’ve helped to manage hundreds of homes, and I’ve owned rental properties myself, so I’m well aware that rental income incorporates many factors that property owners need to consider. Here are three key items to think about in terms of producing income from a rental property:

1. Tenants are impulse shoppers. Typically, renters will select a home much quicker than someone who is in the market to purchase a home. Often, renters will only look for a few weeks to a couple months, whereas homebuyers may search for several months before finding one they’re willing to make an offer on. That in mind, if you present a property that is clean, has nice appliances, and has good photos to review, you can get 20% more in rent than if you don’t do those things. Don’t underestimate the emotional experience of seeing a home—that impulse is so important. You don’t want anything that will detract from people diving in.

"Typically, renters will select a home much quicker than someone who is in the market to purchase a home."

2. Good management is key. Once you have a tenant in place (or at least an applicant), make sure that they have access to someone who is easy to pay rent to, treats them with respect, is easy to communicate with, is honest, and has good reviews online. Additionally, it’s a myth to say that a landlord has no rights and that if a tenant doesn’t pay their rent, there’s nothing the landlord can do about it. As a landlord, you can absolutely do everything to get the money you’re owed.

3. Monthly rent fluctuates with the market. Because of inflation, the improvements you make, the economy, and the housing market, rents do go up. Now, we encourage people to be homeowners, and we help people to save money to buy a home, but 70% of the population rents. Those people are signing up for something that is increasing in price. It’s usually the case that rents go up every year, sometimes by 3% and sometimes by 10%. But when you’re a landlord, don’t focus on 12 months—focus on the next five years. Using this period to do your projections is a key element to doing improvements for rental income.

If you have any other questions about real estate investment, either in New York City or nationally, I’d love to speak with you soon. Don’t hesitate to reach out to me.

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4 Tips for Carrying Out a Well-Organized Open House

Each week of the year, I conduct at least one open house and, sometimes, I do as many as four. As a team leader, I oversee multiple agents, which allows for exponential development in the number of open houses we do.

In fact, we’ve established most of our business from the strangers we’ve met at open houses. Here are some tips for how you can do the same and cement yourself as an authority on all matters related to real estate.

1. Play some music. My specific go-to playlist is Spotify’s “Hôtel Costes.” Douglas Elliman, an employee of my company and one of the top agents in the world, has a business partner who has cited this as his music of choice for open houses.

2. Adjust the temperature based on the season. In the summer, the home should be well air-conditioned, and in the wintertime, make sure the heat is at a cozy setting—you’re going for absolute comfort here.

"Your agent’s ability to secure a higher sale price for your client hinges on these follow-ups."

3. Have fact sheets about the home readily available. Not having these on hand for each and every buyer that visits the home gives a clear signal that your agent is disorganized and ill-prepared, which doesn’t go over well with a potential buyer. My team and I not only supply fact sheets, but we also offer a buyer’s guide, a seller’s guide, our listing statistics, and a social proof (this is a series of images of the homes we’ve sold in the last year).

4. Ask those in attendance to sign in and include their contact information. Further, make sure you monitor the sign-ins closely. A cardinal rule is to never use a pen—but why? Well, through trial and error, I’ve learned what a hassle it can be to try and decipher phone numbers written in chicken scratch. And what if one person doesn’t even leave a phone number? Everyone that comes in thereafter might follow suit and, as a result, you’re left with avoidable missed opportunities. It’s incumbent on the agent to extract as much information as possible from each person in attendance. Their ability to secure a higher sale price for your client hinges on these follow-ups.

If you have any questions about how to conduct the perfect open house, please reach out to me today. I look forward to speaking with you!

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Capturing the Appeal of Luxury Homes in Terms of Price

When we use the word ‘luxury,’ what do we mean? In New York City, by definition, a luxury property is one worth more than $4 million. In the bigger picture, the word connotes something like a Lamborghini, Ferrari, or a Rolex—something more expensive than a lesser version of it would cost. Luxury items are things that people buy because they love them and see them as cool and cutting edge.

Now, when people look at luxury real estate, they may or may not expect some negotiability; I don’t think that Ferraris are highly negotiable, and when I think of penthouses, I know they sometimes sell for asking price, and they sometimes sell for less. In the last 30 days in New York City, over 100 properties sold for more than $4 million, according to an Olshan report.

"In New York City, by definition, a luxury property is one worth more than $4 million."

As real estate professionals, we want to use round numbers to price a luxury property and create impulses for the buyer. While it won’t necessarily skyrocket in value, we want to convey confidence that this asset’s price is in line with the coolness that it projects. Optimistically, there’s a buyer out there that will marry with that price.

If you have any questions about the luxury market, I’d love to speak with you. Who doesn’t want to talk about the most precious and beautiful real estate in the entire world?

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3 Key Tips About Pricing a Property

Over the past two years, my average sales price was 99.7% of the last asking price, and my median days on market was 35 days. I am the foremost expert on listing homes and getting the price I want in the New York City resale market. But that’s not the product of anything other than fastidious attention to detail and working with both buyers and sellers. Here are some of my tips for pricing properties:

1. Price things at round numbers. People tend to be more comfortable with going over the asking price of a property with a rounded number, but less so with complicated numbers. I also think that when there’s a “99” at the end of a price, it’s a subconscious invitation for buyers to lowball you.

2. Don’t price per square footage. Not all square feet are the same; pricing this way presupposes that hallway square-footage and bedroom square-footage are similar, which they’re not. Price-per-foot is a way of manipulating numbers, and it’s often lied about in NYC co-ops. It’s dirty data.

"I am the foremost expert on listing homes and getting the price I want in the New York City resale market."

3. Buyers are more informed than you may think. When someone buys a home, they’re typically taking all the money they’ve saved up, plus another invaluable asset—their time—and moving both into that new home. If you don’t think that they’re an expert on what similar homes in the area are selling for, you’re wrong. If you price your property outside of the very tight field of their expectations, they will immediately recognize your weakness and either avoid you or lowball you, since they don’t feel like they’re missing out. Since buyers are so well informed, you have to entice them with your price.

Have you ever gone to a department store and seen, for example, a suit you really liked that was priced at $2,000, and then later found the same suit on sale for $375? That’s the way we like to price things: by first creating an anchor price (the $2,000) and then coming under that anchor price. There is a psychological principle behind that strategy, and I’ll discuss it more in a future video.

When it comes to questions about pricing a property, the thing that real estate professionals are the foremost experts on, please reach out and contact me. We’ll look at supporting data for anything you’re interested in buying or selling. As you can tell, I’m very passionate about this topic. I hope to hear from you soon!

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How Real Estate Became What It Is Today

We all know what real estate refers to, but do you know where the phrase “real estate” actually came from?

Well, way back during a time when only kings and queens could own land, the term “royal estate” was used to refer to their property. Eventually, this privilege was extended to others of high societal standing, like knights, and the term evolved to reflect this change. So, “royal estate” became “regal estate.”

But as time went on, the merchant class became more powerful and what we now know as “real estate” was eventually democratized. This made it so that more and more people were able to own property than ever before.

"The fundamental right to own property is a founding principle of any democracy, and this is how we’ve arrived to where we are today."

Within America’s own history, the right to own property was deemed so essential to our foundation that before our three unalienable rights were revised in the constitution to be “Life, Liberty, and the Pursuit of Happiness,” they were “Life, Liberty, and the Pursuit of Property.”

The fundamental right to own property is a founding principle of any democracy, and this is how we’ve arrived to where we are today. Our current real estate market is the product of history, and we’ve certainly come a long way.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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The Qualities of a Great Buyer’s Agent

Buyers, like sellers, need someone to coach them and help them make sure that the process is as successful as possible. Trust me when I tell you that buying a home without a buyer’s agent is crazy, like giving birth in the woods outside a hospital. So how should buyers pick their agents?

If you want to pick not just an average agent but a great one, you should first check their online reviews. Myself, I have almost 100 five-star reviews. Why is that? I’ve had tons of success getting people great deals, and also because my team is compassionate, honest, educated, and focused.

It’s also important to remember that a great buyer’s agent is not a one-man band; they’ll have a whole team behind them, helping carry the transaction out to its end. In our case, we’ve got the biggest company in New York City, complete with a paid team manager on call to help with all sorts of things. If the agent doesn’t have an established presence, then they’re really just trying to force you into whatever works for them, not what works for you.

"A good buyer’s agent is someone who’s informed about many things, including the news, culture, and science."

Finally, work with someone who is educated. I don’t just mean educated about the market, though that is obviously vital. I also mean someone with a college diploma, a master’s degree, or equivalent. Why is that? Well, educated people are the ones who are buying real estate, at least more than those who didn’t complete high school are. A good buyer’s agent is someone who’s informed about many things, including the news, culture, and science; this will allow you to relate to your clients, which will translate into trust. This, in turn, translates to helping you get the best deal possible.

If you have any other questions about how to pick a buyer’s agent, I’d love to speak with you. Feel free to reach out to me, and I’ll respond to your message quickly.

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5 Tips for Finding the Right Listing Agent

If you’re in the process of interviewing listing agents for the right to sell your home, here are five tips that will help you pick the right one:

1. Ask for reviews and references. If you were considering hiring me, for instance, I’d encourage you to reach out to other sellers who’ve hired me so you can learn about their experiences. You can also check an agent’s reviews online.

https://www.zillow.com/profile/thedavidrosen/#reviews

https://thedavidrosenteam.elliman.com/testimonials

2. Weigh the pros and cons of hiring a local expert. Many buildings have a resident agent who’s made a small fortune selling their neighbors’ homes over time, but these neighborhood experts can limit what you can get for your sale price. Not only can they be sensitive to their reputation and be less bold, but they typically aren’t up to speed on crucial factors like population movements.

"If you follow these tips, you’ll pick the right agent and love the choice you made."

3. Inquire about sales statistics (e.g., how many homes an agent has sold in that last 12 months). I provide all of my seller clients with my listing statistics, including my median days on market and my median sale price.

4. Ask if they’ll customize a marketing strategy for your property. Each property needs a game plan. An experienced agent, such as myself, should have many strategies for different types of situations. In addition to knowing what to do, they should have a team in place to implement their strategy.

5. Make sure their personality meshes with yours. There are plenty of agents in this city who have great sales statistics, but the bottom line is you have to like who you work with and they have to like what they’re doing. If they like what they’re doing, that will lead to a win-win situation for everyone involved in the transaction.

If you follow these tips, you’ll pick the right agent and love the choice you made.

If you have any more questions about how to pick the right listing agent or you have any other real estate needs I can help you with, feel free to call or email me. I’d love to hear from you.

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Negotiation Tips for Sellers Part 3: Advanced Tactics

Now that we’ve reached the third installment of our series on negotiation tips for sellers, we’ll be covering the advanced tactics you need to know to successfully list and sell your home. We’ve already covered beginner and intermediate tips (which you can find here and here), and before we get into today’s tips, which will mostly apply to the final stages of the deal, please realize that they aren’t ones you’ll want to rely on all the time.

Ideally, the negotiations in your real estate deal shouldn’t be contentious. Even so, it sometimes isn’t feasible to keep the other party’s feelings in mind when you’re trying to earn the best possible deal. With that in mind, let’s cover our advanced negotiation tips:

1. Raise the price after going under contract. This certainly won’t make you any friends, but it will help you earn a high price.

"Never apologize for seeking the best possible deal."

2. Go deep on contingencies. Doing away with inspection, financing, and even appraisal contingencies is an aggressive, yet powerful, way to strengthen your position in a real estate deal. Money may seem like the most important thing, but if you go deep on contingencies in order to make sure you get the buyer’s deposit, then all the cards are in your hand.

3. Remember that today is different than yesterday. Things change. The majority of advanced negotiation tactics people use are actually based around renegotiation. Don’t be afraid to make changes to what you’re asking based on new developments in the market or economy, and never apologize for seeking the best possible deal.

At the end of the day, all of these tips are most effective if you also have a strong agent by your side. As your broker, I would be happy to act as the “tip of the spear” on your deal.

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Negotiating Tips for Sellers: Part 2

Now that you’ve received a serious offer on your home and you and your potential buyer have started negotiating over its price, here are three next-level tips that will help you secure the best deal possible:

1. Counteroffer with emphasis. There are a few ways to do this, but one way I recommend is lowering your list price. This not only creates a binary dialogue with your potential buyer, but it also creates more competition for them because it shows that you’re willing to make a deal at that threshold.

The only reason not to do this is the fear of missing out. In other words, you think another buyer might swoop in and offer you full price. Here’s the thing, though—if two or three weeks have gone by and that hasn’t happened, it probably never will. If you don’t want to counter by lowering your price, you can also create scarcity by telling the buyer that you’re talking to many other parties.

2. Find out what else is valuable to the buyer (other than price). When you know what’s important to them emotionally, you can build on that and have a more collaborative negotiation. For example, let’s say their monthly mortgage payment is important to them. If you asked for $1 million and they offered $900,000, you can tell them that if they’re willing to come up to $975,000, you’ll pay a certain number of discount points that will lower their monthly payment.

"Negotiation isn’t about giving in; it’s a dynamic process where many other factors besides price are discussed."

3. Remember that they need you too, so don’t give in. Negotiation isn’t about giving in; it’s a dynamic process where many other factors besides price are discussed. Buyers have to come to you. They want to come to you. If they want to buy your home, they understand they you’ll only sell it to them at a certain price and under certain terms. At the end of the day, for most real estate negotiations, the seller has more leverage than the buyer—especially in a market like ours.

Even in a soft market where a buyer might feel like they have tremendous leverage, they’re not going to buy a home just for fun. They’ll buy it because they need a place to live and they can see themselves living in your home—they just don’t want to overspend and feel like they’re losing money.

So counter with emphasis, find out what else is important to the buyer other than price, and remember that they need you and they want you to agree with them. If you do that, you’ll be more successful than if you just negotiate haphazardly.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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Negotiating Tips for Sellers: Part 1

Welcome to the first episode of my three-part series on negotiating tips for sellers.

I’ve helped negotiate thousands of transactions, and over the last two years, I’ve maintained a track record of earning sellers 100% of their asking price.

If you’re interested in achieving this kind of success for your own deal, simply follow the tips in this series. For this installment, we’ll be covering three beginner-level tips:

1. Create scarcity. Treat your property like the only diamond available in a market full of coal. Make sure buyers know that your home is a fleeting opportunity and that if they don’t make a move, someone else will.

 

"Sellers should pause after they receive an offer so that the buyer becomes more invested in the deal."

 

2. Price compellingly. Home price is not an exact barometer of value. Price is a marketing tool. You can get people to bid over asking price. In fact, between 15% to 25% of properties sell above asking price in New York City during any given month. We don’t live in a bazaar-style economy—many people would prefer to pay above asking price over haggling. You don’t necessarily need to underprice your home to achieve these results, but you do need to price it well.

3. Pause every time you receive an offer. There’s a French child-rearing method called “The Pause,” and this method can also be applied in real estate. Per this method, parents are encouraged not to rush to their child’s side when they hear them begin to cry. Instead, they take their time. This isn’t to say that the child should be completely ignored, just that parents should wait a moment before responding. When applied to real estate, the sellers must do the same. Sellers should pause after they receive an offer so that the buyer becomes more invested in the deal.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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Part 3 of 3, Advanced Negotiating Tips for Buyers in NYC

Today, we’re excited to share the third and final installment into our series on negotiation tips for buyers. If you didn’t catch the first two installments, you can find part one here and part two here.

This time, we’ll be discussing three advanced negotiation tips for New York City buyers. If you are located in another market, though, feel free to reach out to me for more information about buying in your specific area. So, without further ado, here are today’s three tips:

1. Wait a week (or more) before following up on your offer. Not all brokers will tell you to do this, but, if done properly, this technique can help you add a lot of leverage to your position as a buyer.

 

"Citing recent statistics to support your offer will help show the seller the logic behind your position."

 

2. Reference a new development in the market. Decisions involving money tend to be emotionally driven, but citing recent statistics or data to support your offer will help counteract this by showing the seller the logic behind your position.

3. Renegotiate after the contract is drafted. The number you and the seller initially agreed upon isn’t set in stone. If you are in a strong enough position to do so, trying to renegotiate down to a lower price as you approach closing can be a very effective power play. Make sure when you counter back with your new price, though, that you let the seller know this new offer is final.

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

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Part 2 of 3, Intermediate Negotiation Tips For Buyers in NYC

Negotiating in a real estate deal is no easy task, so today in part two of our series on negotiation tips for buyers, we’ll be covering even more tips for tackling this crucial point in the home buying process:

1. Work with trusted partners. When you make an offer, your chances of success will be vastly improved if you’re working with professionals who the agent on the other side of the transaction knows and trusts. Having trusted partners on your side will reinforce a sense of confidence within the seller, and confidence leads to a good price. A good lawyer, a good lender, and a good agent will all help you earn the best possible deal.

 

"To be an expert negotiator, you’ll need to know everything you can about the person you’re negotiating with."

 

2. Put yourself in the seller’s shoes. The key to your success as a buyer lies in understanding why the seller is listing their home in the first place. You may even want to go so far as to look up the seller on LinkedIn or Facebook. To be an expert negotiator, you’ll need to know everything you can about the person you’re negotiating with.

3. Remind them that you have other options. The seller needs to know that you’re ready to walk if they aren’t willing to meet you in the middle.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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3 Negotiation Tips for NYC Homebuyers

I’ve helped hundreds of people buy homes here in NYC, some for 15% to 20% below their asking price via negotiation. How do we do it? Here are three tricks of the trade:

1. The sellers and their agent should view you as trustworthy. In NYC, this is especially important. You do not want to set a paradigm of being adversarial. You want to be friendly and polite and for people to like you.

 

"Thinking outside the box is key."

 

2. Add value outside of the box. For example, we recently got a deal done where we donated a sum of money to the employer of one of the principals, who had a big charity. In donating $1,000 to the charity, we were able to come to an agreement over a price gap that was originally $70,000. Adding value in other ways besides price is huge. It could be anything from appliances to tickets to an introduction to a third party. That’s the secret to masterful negotiation: thinking outside the box.

3. Relate to the data. Why should this seller think they’re going to sell their home for more than anyone else ever has? Constantly reconnecting to the data that suits you is your friend.

When you’re negotiating, if you want to get the best possible deal, you need to do these three things. If you have any questions or would like to work with me and put my expert negotiation skills to work, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

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What Buyers Need to Know About Agency Disclosures

As a buyer, what do you need to know about agency disclosures?

First, as it states in bold ink at the very top of the first page, an agency disclosure is not a contract. A contract is a binding agreement between two parties, and an agency disclosure doesn’t bind the buyer or the seller to any specific action.

What it is instead is a declaration of where an agent’s loyalties lie, whether it’s with you, the seller, the landlord, or some other third party. By law, they have to declare in writing whether they’re loyal to you or someone else in the transaction. They may also be acting as a dual agent, which still requires fiduciary loyalty. For example, if you hire a brokerage with multiple agents, one of those agents might be loyal to the buyer and the seller.

 

"A contract is a binding agreement between two parties, and an agency disclosure doesn’t bind the buyer or the seller to any specific action."

 

As I said, an agency disclosure is required by state law. It’s not there to confuse you or drive you crazy, and since it’s not binding, you shouldn’t worry about it. However, a lot of young agents will sometimes tell you that if you sign the agency disclosure, you have to be loyal to them, and that’s simply not the case.

If you have any more questions about agency disclosure or you have any other real estate needs I can assist you with, please feel free to reach out to me. I’d be happy to respond.

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Should You Buy a New Home or an Existing Home?

So, you’re looking at homes and you’ve seen some existing homes as well as some brand-new ones. What are the pros and cons of buying a new home versus an existing one?  

There are some great pros to buying a new home. With a new home, you get the newest appliances, the newest finishes, oftentimes great locations and layouts, and that fresh, contemporary feel. These are all important because the person you sell your home to later will also find it appealing. 

One thing you want to keep in mind, however, is if there is tax abatement in place that can erode your equity over time. Also, at what point in the sales cycle are you purchasing? If you are the first person in and you want to wait until they sell the last location, sometimes you can make 50% on your money or triple your cash down payment. It is a great investment.

 

"It is most often the case that an existing home bought at the right price is undoubtedly the way to go."

 

However, your equity could also be gutted if they have trouble selling the last quarter of the available properties and have a fire sale. 

You do not want to make the wrong choice when you are stressed and looking to buy a home and all of these indicators are telling you that it’s a good idea because it’s new and it’s got great salespeople and a nice smell. 

Now to look at resale homes. A resale home may or may not have been recently renovated, and it may involve more negotiation, whereas a new home doesn’t involve much negotiation at all. Existing homes, however, are a great way to make the most equity because you can make small improvements to it. Existing homes also have some of the best neighborhoods because they have been lived in longer. 

When it comes to investing in your home, the truth is it’s really an outlying occurrence when buying a new home is a better investment. It’s most often the case that an existing home bought at the right price is undoubtedly the way to go. 

If you have any further questions about this or are interested in buying or selling, please feel free to reach out to me. I look forward to speaking with you soon.

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Getting a Home Inspection in New York City

Today I want to talk about home inspections. When I started my career, I did not sell real estate in New York City. Instead, I was in Arizona helping investors buy literally thousands of homes. I did home inspections and hired home inspectors.

Home inspections are a vital part of the real estate sales process everywhere in the United States except for New York City. Here, about 95% of homes do not get inspections. However, this does not mean that inspections are worthless.

For the majority of the people here, they worry that a home inspection will kill the deal. However, it is not the end of the world. For a condo or a co-op, a broker can deliver the message from the buyer to the seller that they want to do a home inspection. It will let the buyer know about the electrical service, the condition of the appliances and HVAC, etc.

 

"Home inspections are a vital part of the real estate sales process everywhere in the United States except for New York City."

 

There is nothing wrong with that. However, the time to do this is before you sign the contract. And, you have to approach this in a way that gives the seller comfort because the majority of people are not doing it. So, if you are going to do it, deliver that information gently and with tact.

If you are buying a free-standing home like a townhouse, you will always need to get a home inspection. You need to inspect the roof, the boiler, etc. In this market, you should be paying at least $600 for an inspection, otherwise they may not be doing a good job. In New York, you can get a structural engineer on-site to walk you through the property as they complete the inspection.

When you are buying a townhouse, you should be doing an inspection. Even for some co-ops, it is not a bad idea to inspect the entire structure. However, a lot of people will lead you to believe that it depends on the situation.

If you have any additional questions or are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.

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How I Broke Into New York City Real Estate With a Short Sale

When I moved back to New York City from Scottsdale, Arizona, I was already an expert in short sales because I had gone through five of my own. I had bought a bunch of properties that lost their value, so I knew what it took to sell a home for less than you owed. My prior experience is the reason I have this story to share with you today. 

Since I was looking to break into the New York City real estate world, I met a broker who said that if I helped him with a complicated short sale I could be part of the transaction.

There was a first position mortgage, a second position mortgage, and a bankruptcy estate. The gentleman owed $4.2 million and could only sell it for $3.8 million. It was hard to sell because the market was slow and people did not know what a short sale was.

We had to negotiate with three banks and get them to accept the offer of $3.8 million. While that is a lot of money as far as Chase Bank was concerned, it was not enough. Since there was also a bankruptcy involved, we had to show all the parties that we were getting them the most money possible, which we were.

 

"We had to negotiate with three banks and get them to accept the offer of $3.8 million."

 

The secrets to doing a short sale are as follows:


1. The property must be listed professionally.
2. The agent and seller must demonstrate strong marketing strategies.
3. Ethics and honesty must be shown by getting the most money for the property.
4. An excellent attorney, who can set the minds of the banks and lien holders at ease, must be involved.
5. The seller must be patient.

I was very grateful for the opportunity to break into New York City real estate with this complicated but lucrative transaction.

If you have any questions about short sales, please feel free to call or email. I look forward to speaking with you soon.

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Why NYC Homebuyers Should Always Work With an NYC Lender

So you’re buying some real estate, but you don’t want to pay cash for it. Guess what? That makes you smart. Why not borrow money at 4.5% or 5% instead of paying cash? Most people don’t have enough money to pay all-cash for a home. And if they do, this probably wouldn’t be the best choice for them, anyway. Buying with a mortgage is always a better financial decision. 

What if your income isn’t necessarily what they call “W-2” though? 

This is the case for many New Yorkers, including myself. As a real estate agent, I use a 1099 form because my income can fluctuate from year to year. If you’re in a similar situation and you work in an industry where your income can fluctuate, do lenders know how to deal with that? Most of them do, but not all of them.

 

"When buying a home in New York City, always work with a New York City lender."

 

This is why we always insist that you use a lender whose office is located here in New York City. When I worked in other states, it wasn’t uncommon for me to see a buyer go onto lendingtree.com or quickenloans.com and end up working with a loan processor that was in a different state. If a loan processor gives you a good rate, it’s no big deal if they’re out of state, but it doesn’t work that way in New York City. The buildings are all unique, and they each need to be individually underwritten. 

The underwriters at Chase Bank in New York City will treat bonus income much differently than the underwriters at Chase Bank somewhere in Ohio. They’ll tell you that the process is the same, but I’ve been doing this for 14 years, and I can tell you that it’s not the same. 

That’s the secret—when buying a home in New York City, always work with a New York City lender. All banks have New York City offices, and a local lender will be able to account for factors like your bonus income or any exceptions that may be needed for the building. They’ll also be able to work with you on the financial disclosure if you have a high net worth and you want to structure things in a way that protects you. 

If you have any more questions about the mortgage process or you have any other real estate needs I can help you with, don’t hesitate to give me a call or send me an email. I’d be happy to assist you.

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What’s Going on in the New York Real Estate Market?

Today I want to take some time to answer a few questions about the New York real estate market. My guest for this is discussion is Sean, who had a bunch of great questions for me to address. I answered these questions in detail on Facebook Live and in the video above, so for convenience’s sake, I’ll be providing timestamps below so you can skip around to the sections that most interest you:

0:40- The hottest type of property in the city and the forces that are driving them.

2:30- The segments of the market that aren’t selling as quickly as the others.

 

"Watch the full interview in the video above."

 

4:35- Pricing data for some of the hottest areas of the New York market.

5:50- Where to start if you’re looking to break into the market as a first-time homebuyer.

9:15- The best place to get the most accurate value of your home in today’s market.

Thank you for taking the time to listen to our discussion. If you have any questions about the market, buying or selling a home, or how find out your home’s value in today’s market, you can always give me a call or send me an email. I’d be glad to help you out.

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Renting a Home in a Buyer's Market

I am here today to tell you three signs that you are ready to be one of the 50% of national homeowners who are under the age of 36.
 
1 ) You've got around 20% of the down payment plus six months to 12 months of monthly living costs saved. You probably can’t afford a home if you don’t have the encouraged down payment and some reserves.
 
2) You are tired of spending money on rent. Maybe you don’t have the money to put down right now, but you are tired of spending your money on rent. This can be an excellent motivator to make a financial plan to save that money. Rent will continue to rise, but the majority of your monthly housing costs will be fixed so you can save money in the long run.

 

"Rent will continue to rise, but the majority of your monthly housing costs will be fixed so you can save money in the long run."

 

3) Major life decisions are happening. Maybe you're thinking about getting married, having a child, or growing your family. All of these decisions usually go hand-in-hand with buying a home. Prepare yourself when making these decisions by saving as often as possible.
 
Downsizing can also encourage home purchasing. People buy a home oftentimes when their families get smaller—children leave or couples divorce.
 
No matter what your motivation may be, buying a home is a major decision. If you can plan the next three to five years and you have the assets at hand, you should consider investing in a home. If you do, you can become one of the many millionaires whose wealth is made through home equity. In America, more millionaires are made this way than any other way.
 
If you have any specific questions about planning for buying a home, please feel free to call or email me. I look forward to speaking with you.

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