Selling in Chelsea

Conveniently located on West 23rd St., we recently welcomed a new resident from the sale of our quaint two bedroom, two bath home. With endless possibilities for customization, we successfully marketed and sold this "as is" opportunity. 

Our client was recently quoted saying, “Jeff was instrumental in the sale of our home. He was resourceful, trustworthy, and highly proactive.” They say when the going gets tough the tough get going. Jeff has the patience, perseverance, and motivation to handle the complex buying process."

To learn his secrets to selling your property at the highest value, call Jeff today.

The Value of Outdoor Space

Private outdoor space in New York City is a luxury to say the least. Whether you're peering over from your balcony to buzz up the delivery man, sipping the morning coffee on your terrace, watching the sunset from your roof top cabana or grilling "shrimps on the barbie" in the garden with your friends – a balcony, terrace, cabana, or garden space is just about as "outdoorsy" as it gets in NYC. This week we are featuring a look at the value of this precious outdoor space that we love so dearly.  

Q: How do you put a price on outdoor space?

A: Pricing outdoor space is determined by a number of factors. First, one must consider the use of the space, design, size, views, private or shared, and its proximity to the kitchen.  For example, private terraces are obviously priced higher than shared terraces. Being able to walk out to terrace from your bedroom is convenient, but having a balcony or terrace with an entrance from your living room is more desirable for entertaining guests and more valuable. Who wants to have theirs guests traipse through their bedroom to get to the outdoor space. Size clearly matters too, but there is a sense of utility placed on every space.  For example, 500 square feet (SF) is perfect for a table, lounge area and grill area, but perhaps a 1,000 SF is just not necessary. In this case, many buyers may not want to purchase an expensive space like this so the buyer pool is narrow and hence base on supply and demand, the value will typically be less per square foot if the space is too large. 

See below for different multiples to be applied to outdoor space in order to arrive at the fair market value. These multiples are applied to the interior price per square foot of the given building. 

Garden space: ~25%

Outdoor space with views: ~50%

Outdoor space without views: ~33%

Additional characteristics affecting the valuation of outdoor space include but are not limited to direct light, shade, views, layout, planted, noise level, quality, ability to grill, the building itself, location, privacy, etc. All of these factors will help to determine how the multiplier scale of ~25% to ~50% of the interior square footage of the building will be applied. 

What about BBQing in NYC?
Summer in the city is a season for entertaining, enjoying the outdoors, and of course barbecuing! Did you know that propane grills are not allowed in New York City? The NYC Fuel Gas Code states that you can't store standard backyard propane on a balcony, roof deck, backyard, or in a courtyard [1]

In FAQ’s for Those Lucky to Have Outdoor Space, The Brick Underground also shares that, “You can use a propane tank that’s smaller than 16.4 ounces in some cases. Remember, you can be slapped with fines of up to $10,000 or more if you don’t comply, although the law is mostly unenforced.”  Fines this serious are simply necessary because the fire department doesn’t have enough manpower or time to check every terrace, therefore if you’re caught violating the law and using propane gas to BBQ you will be fined.

On a brighter note, according to New York City’s Department of Buildings, “Cooking with a charcoal barbecue is legal on a terrace or in a backyard — but not on a balcony or roof. There must be a 10-foot clearance between the grill and the building.” If you get really lucky some buildings like 125 North 10th Street, actually have induvial gas line connections installed, so yes BBQing is legal, safe, and a favorite pass time for residents who own cabanas.

It could be a conversation piece, an additional extension for entertaining, or even your private escape from four walls - it's really not classified as traditional "living space", but regardless it's coveted space and adds value to your property. 

Sources:

[1] Https://www.brickunderground.com/blog/2013/05/outdoor_in_nyc_faqs_from_those_lucky_enough_to_have_patio_roofdecks_and_gardens

[2]

http://streeteasy.com/talk/discussion/2247-how-to-price-outdoor-space-deck-balcony-garden-and-basements

The Road to a Successful Closing - No Detours!

Dropbox Link to a PDF Version

Purchasing property in Manhattan can seem like a maze at times, but our helpful info-graphic above and our three critical "next steps" below will illuminate the proper path to a successful closing! Preparing financially is the most important aspect to purchasing an apartment and it is commonly left to the last moment by the majority of buyers. Below is designed to initially explain the three key components of every co-op purchase and what everyone will need to proceed:

Ø  Financial Statement – Full disclosure of your finances is required with every offer. Please note: When working as a buyer’s broker, I have a fiduciary responsibility to my customers through reasonable care, undivided loyalty, confidentiality, full disclosure, obedience, and duty to account. An accurate assessment of the following is required:

Liquid Assets (cash, money market and brokerage accounts)

Retirement Assets (or any other long term assets)

Income (salary, bonus, interest, dividends and any of miscellaneous income)

Liabilities (any debts)

Generally, co-op's will require supporting documentation once we have a fully executed contract of sale. Below are important ratios used by co-ops as a standard to qualify buyers. 

Debt to income ratio (typically needs to 28% or less) this is all of your monthly debt plus the new mortgage and maintenance/taxes divided by your total gross monthly income including any bonuses. 

Cash reserves – Most co-ops require 2 years of mortgage maintenance and taxes to be in “liquid” reserves after closing.  They do not consider IRAs, 401Ks Keoghs, TIA CREFFs, or Real Estate assets to be liquid, unless you are over the age of 65.

Ø  Pre-Approval Letter – It is important to know your borrowing potential, especially now with lender’s tightening credit standards. A mortgage banker will qualify you and indicate what documents are required and ask to pull your credit. This will offer you piece of mind, determine your purchasing power, define the current mortgage rates and help us determine your monthly expenses. This letter is also required with every offer.

Ø  Attorney – Once we have an accepted offer, they will offer important advice throughout the process and conduct due-diligence. This is a must expense for even the most savvy investors and it is highly recommended to use a Manhattan based real estate attorney who knows the business. They will look over the co-op’s minutes, budget, tax statements/returns, contract, and prospectus/offering plan. They will review all of the closing papers, walk you through the closing and will also advise you of potential risks.

Sold! Another Successful Transaction

353 East 72nd Street, 5B

This south facing one bedroom with wall to wall windows throughout is filled with sunlight and has beautiful tree top views. In this case, the unit was only on the market for 36 days! In today’s complex real estate market, it is imperative to work with an expert who understands the unique process of selling in your specific building and neighborhood. See the link below for more details about this sunny residence.

See Property Here!

125 N 10 - Another Successful Transaction

Jeff has lived at 125 N 10 for nearly 5 years now and has had great success at both selling and renting. He takes great pride in presenting the building and what it has to offer. He just sold this triple mint, bright, south facing, ground floor, 1-bedroom, 1-bathroom residence in your building. In today’s complex real estate market, it is imperative to work with an expert who understands the unique process of selling in your specific building and neighborhood. 

Jeff offers a tailored marketing strategy with maximum exposure, insightful valuation and a keen focus on bringing the transaction to SOLD. If you are considering selling your home or buying in Brooklyn or Manhattan, call Jeff. He meets the challenge!

See property here: http://www.corcoran.com/nyc/Listings/Display/3514007