FEATURING LUXURY MANHATTAN CONDOS FOR SALE AT COMPETITIVE PRICES
Sellers Of coops and condos for sale in NYC Hire Real Estate Brokers To Get Them The Highest Price Possible...
You Should Have Your Own Buyer's Specialized New York Real Estate Agent To Protect Against Making The Mistakes That Cost Thousands Of Dollars
Whether you are interested in looking at New York apartments for sale in Manhattan as a first time buyer, or moving to a larger space, it is understandable that you may have unanswered questions. Some points to consider include whether to shop for Manhattan condos with an agent, or on your own, focus on pre war co-ops as opposed to new developments, and when is the right time to gather the financial records necessary to include in a board application. The following is a list of the questions I am asked most frequently:
It is important to understand that when using the Internet, NY Times, etc., to look at condo New York apartments for sale in NYC, the info being displayed is advertising by the Seller's Broker. The Seller's Real Estate Broker is contractually obligated by New York Real Estate Law to work for and negotiate on the behalf of the seller in order to sell their property for as much money possible, and to make the best deal for the seller, NOT the buyer.
Note: As of January 1, 2011, the Department of State made it mandatory for Licensed New York Real Estate Brokers and Agents to properly disclose their role as either the Seller's or Buyer's representative. For more information about these new disclosure rules, Click Here to visit the Department of State (DOS).
Q) "Since New York Real Estate Agents work with buyers for free, how and when do they get paid?"
A) Upon the purchase of a New York apartment, the seller pays the entire commission to the "Seller's" Real Estate Broker. The amount is usually 6% of the agreed-upon purchase price of the apartment. This amount is then shared between the Seller's Broker and the Buyer's Broker in what is known as a "co-broke" agreement.
Q) "Can I save money if I look at New York Apartments for sale in Manhattan if I look without a Real Estate broker?"
A) The short answer is no... a commission is always paid by the seller to their Seller's Broker whenever Manhattan condos for sale in NYC are advertised and sold by a Seller's Broker. Since the sellers almost always have a broker working for them, as a buyer, it is more likely to cost you time and money, if you do not have your own New York Real Estate Agent.
Q) "How can I tell if the Broker represents the seller?"
A) When you search ads for New York apartments for sale in the NY Times, online, etc., to view condos for sale in NYC, those ads have been placed by the Seller's Real Estate Broker. keep in mind that while the Seller's Broker will be friendly, accommodating and cordial, they are always working for the seller, with the seller's best interests in mind, not yours.
Q) “What is the difference between condos, coops, and condop New York apartments?”
A) Manhattan condos are real property, and come with a deed and a portion of common space in the building. Investors prefer condos because they offer considerably more flexibility to sublet. Condos generally require proof that one has obtained adequate financing and can afford the monthly common charges. When considering a coop, which is short for co-operative housing project, you are purchasing shares in a corporation. Most co-ops do not own the land that the building occupies, and has a land lease. A condop is a coop with much more lenient requirements set forth by the board. This type of apartment ownership is much less common. With all coop and condops, including pre-war coops, you have a leasehold interest in your apartment, but you do not own your unit. In all cases, a board package will have to be assembled, carefully prepared and submitted for review by the building's board before a purchase can take place.
Q) "What does "pre-war" mean when describing New York apartments?"
A) The term "pre-war" indicates that the building was built before World War Two. Most pre-war apartments for sale in NYC were originally set up as coops, and include the majority of upscale Manhattan addresses. Residents who purchase pre-war co-ops do so in order to live in a white-glove building that also maintains a certain level of exclusivity. Pre-war co-ops typically impose strict guidelines that include a thorough background check, minimum income requirements and sometimes an all-cash purchase. Some pre-war coops require prospective buyers to show monthly earnings equal to or more than four times their monthly expenditures, including mortgage, monthly maintenance, outstanding loans, alimony, and child support payments. All of this can take several months before an in-person interview is granted by the co-op board. There are pre-war condos for sale in NYC, however there are much fewer to choose from.
Q) "With so much info out there, why not try to shop on my own when looking at New York apartments?"
A) It is important to keep in mind that the New York Real Estate industry is a highly specialized one. Similar to brokers who invest in stocks, bonds and commodities, New York Real Estate Agents have tools that are not available to the general public. If you had an income tax question, would you attempt to deal with it without the help of a CPA? If you face a major legal situation, would you attempt to handle it without a qualified attorney? Even attorneys know it is foolish to represent themselves, and most seek their own counsel when facing their own legal situation. Because there are so many risks associated with making an investment in Real Estate, it is unwise to start the process without proper representation, protection and advice.