Seller Tips
Why Deals Die and How to Avoid These Problems
It’s an unfortunate reality of the New York City marketplace that not all deals end up closing. But given the amount of work it takes to successfully market a property and find a willing buyer, just as much effort should go into ensuring that deal gets from the handshake to the closing table. Let’s start …
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The 1031 Adviser: Converting 1031 Replacement Property into a Principal Residence
It’s not uncommon for an investor to convert a property held for business, trade or investment into one’s principal residence. Change in investment potential of the property, or a desire to get out of the landlord business, might make the investor decide to change the use into one held as a primary residence. And prudent …
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Who Pays for What?
There are two times during the lifecycle of a transaction that I am routinely informed about a “repair” that the seller needs to make. The first is when a buyer uses an inspector as part of due diligence before the contract is signed. The other time is at the walk through, or the final inspection …
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Buying a Short Sale? Some Rules of the Road
Sellers who owe more on their home than it is worth often choose to try a short sale, which requires approval from the bank to sell for less than what is owed. These deals can be good for both the buyer and seller, but before entering into one, there are some important considerations a buyer …
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Leaving Thousands of Dollars on the Table?
Even the most saavy buyer and seller in New York City may not realize a hidden saving that can cost them thousands in unnecessary recording taxes. And better brokers are versed in this loophole and will alert clients of the potential. Here is how it works. In New York City, there is a tax when …
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Financing Contingencies: Navigating The Minefield of Real Estate Transactions
Among the biggest changes we have seen in our market post-Lehman is the return of the financing contingency. Prior to Lehman and the seizing up of the mortgage credit markets, it was quite typical for buyers to “waive” a contingency and accept the risk of financing. With contract deposits typically 10% of purchase price, this …
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Seven Rules for Successful Deals in 2012
2011 was a tricky year, and closing deals this year required a much different mind and skill set than in the past. I think 2012 will be even more robust, and with consumer confidence posting record increases, we’re poised for a banner year. As we start the year, I want to share some trends that …
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A Sales Tax on Real Estate Sales? Yes, Well Sort of…
The internet can be great for providing information on any number of subjects. And real estate is among the most popular, with “experts” weighing in on any issues raised by (confused) consumers. Recently, there has been a flurry of activity offering “guidance” on the new 3.8% sales tax on real estate. Much of the “analysis” …
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Is My Building Really Worth Less Than my Apartment?
Building financial statements have taken on a new found prominence in the age of tough bank underwriting, as institutional lenders are now scrutinizing these reports to determine whether the collateral – the apartment being financed – as opposed to the borrower, are worthy of extending a loan. But to the non-CPAs in the crowd, these …
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Negotiating to Win?: Be Careful
I spend a good part of my day negotiating real estate transactions, contract terms and resolving disputes that arise in the course of a deal. It’s one of the few good things that came out of the financial collapse of a few years ago: it allowed me to dust off my negotiating skills and begin …
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