Michael Signet

Michael Signet

Executive Sales Manager

As BOND New York’s Director of Sales Michael is involved in every aspect of the sales process. As a former top producing agent Michael has represented both buyers and sellers in transactions of all sizes. As a manager, his main role is that of a teacher and motivator. Michael’s agents know that they can depend on him at any time and for any reason during all stages of a deal. From the perspective of a client, it’s comforting to know that each BOND New York Agent has an experienced mentor able to help when the tough situations arise.

2007 Manager of the Year

Voted "Top 20 over 40" in 2010 by NY Residential Magazine


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Published 04/30/2014 - By Any Deals Out There? 7 Tips for Budget-Conscious House Hunters

Any Deals Out There? 7 Tips for Budget-Conscious House Hunters

By Amy Zimmer on April 30, 2014 6:58am 

 
Slideshow
Brokers dish on how house hunters can find deal in this tight market.

Tips for Budget-Conscious House Hunters

 

MANHATTAN — It's a bleak time to be a buyer. There's limited supply, high demand and record-setting prices. All too often bidding wars are being won by those ready to plunk down all cash, leaving behind waves of frustrated house hunters who don't have deep pockets.

It begs the question — is it still possible to get a deal in this real estate market?

The answer is yes, brokers said, although it will likely require buyers making concessions, like moving to neighborhoods they hadn't considered or figuring out ways to convert a one-bedroom into a two.

Here are some tips on how to score a deal.

1. Consider co-ops instead of condos

Although many buyers prefer the sleek new construction, abundant amenities and flexible subletting policies of condos, Cindy Scholz, of Urban Compass, often advises her clients to consider looking at co-ops if "short-term solvency" is a priority.

"You're getting much more value in a co-op," she said. "You're seeing prices slashed by 30 percent and your closing costs are much less in a co-op."

Plus, the competition might be less fierce since the influx of foreign, all-cash buyers tends to be focused on condos that can be rented out and used as investments rather than as a primary residence.

2. Look for affordable housing units with income restrictions

HDFC — Housing Development & Finance Corporation — co-ops, which carry income restrictions for buyers (and sometimes for re-sales), are usually priced to allow homeowners, who wouldn't otherwise be able, to enter the market, explained Lee Williams of Rutenberg Realty.

For instance, a two-bedroom apartment on Williamsburg's South Third Street, listed for $317,000, is limited to someone earning less than $55,632 a year. A two-bedroom on West 106th Street in Manhattan Valley, listed for $385,000, is restricted to a buyer earning less than $112,164 a year.

3. Find apartments that have never been listed

When new listings pop up on real estate listing sites like Streeteasy, hundreds of house hunters and agents immediately get the alerts — and the competition heats up within minutes.

Instead, step above the fray and have your broker find a home that's never been listed, agents advised.

If a buyer, for instance, wants an Upper West Side doorman pre-war one-bedroom somewhere around Amsterdam and West 72nd Street, Michael Signet, of Bond New York, will research buildings and floor plans and send letters to residents in suitable apartment lines asking if they're open to selling.

"We try to create sellers," he said.

House hunters who have time should talk to building supers or doormen, Williams advised.

"They know who wants to move, who just had children or got a divorce," he said. "Babies and marriages and people coupling and splitting always results in change."

4. Look for "stale" properties or ones that have been removed from the market

Owners of properties that didn't sell but have been removed from the market — perhaps because they priced their home unrealistically too high — might "have come to a place where they are ready to sell based upon the current market realities," Williams said.

Since many buyers focus on the newest listings, house hunters should also look at "stale" properties that have been on the market for more than a month, RealDirect's Doug Perlson advised.

5. Look for properties that can be re-configured

An apartment might be a bedroom short, but many properties could be converted into something more suitable with some "creative configuration," said Perlson, who has been blogging about how to reconfigure layouts through a new site he's created called Homebildr.

"If you can get a real three-bedroom with open views for $1.495 million," he said of a flexible two-bedroom home for sale at 174 E. 74th St., "that winds up being a good deal."

6. Timing matters: Wait until early August

There might be fewer homes for sale in the summer, but owners with places on the market then usually need to sell.

"Get your offer in before everyone comes back from the Hamptons or upstate," Williams advised. "Once your competition is back and in shopping mode the chances of scoring a deal dwindle."

7. Location, location, location: Harlem, Upper East Side, Lower East Side, Long Island City, Inwood, Jackson Heights, Ridgewood and Prospect-Lefferts Gardens top brokers' bargain lists

Many brokers have advised clients to look at the Upper East Side where prices have dipped because of the Second Avenue subway construction — expected to be completed by December 2016 — and the coming marine transfer station in the East 90s.

A buyer who bought an apartment off of Second Avenue in the East 90s paid $150,000 less than a similar sized home a few blocks west, Williams said.

"I explained to her the downsides of the transfer station. She was fine with it," he said, adding, "My feeling, given the strength of the community there, they will keep a lid on whatever nuisance it could be."

Buyers are seeing good returns investment-wise in Harlem's Hamilton Heights and Long Island City, Scholz said, noting that both neighborhoods have good transit access. 

But Perlson advised buyers to compare prices of multi-family homes to new development in Long Island City, for instance.

"New construction in Long Island City can be $1,000 or more per square foot, but you can buy a two-family home for a lot less when you compare the cost per foot."

Andrew Barrocas, of MNS, advises clients to look at neighborhoods where new infrastructure is coming, like the Lower East Side, with the Seward Park Urban Renewal Area expected to bring a wave of retail and development and Prospect Lefferts-Gardens, on the east side of Prospect Park, where a wave of new development is expected.

Ridgewood, the Queens neighborhood along the Brooklyn border near Bushwick that has seen an influx of artists, is also poised to take off, Barrocas said.

"You can still find some real value in Ridgewood," Barrocas said. "We're planning quite a few projects there."

Brick Underground

Published 01/16/2014 - By Buy Curious: Is $500K Enough to Buy a Good Investment Property in Manhattan?

BUY CURIOUS: IS $500K ENOUGH TO BUY A GOOD INVESTMENT PROPERTY IN MANHATTAN?

 
by Leah Hochbaum Rosner | 1/16/14 - 10:44 AM

This $499k UES studio condop at 343 East 74th Street between First and Second Aves. is at the high end of our buyer’s budget, but it’s located in a full-service building in a desirable neighborhood, so it might just be worth it.

Thinking of buying an investment property in the city...for under $500,000?BOND New York’s Michael Signet reveals which neighborhoods will give you the best bang for your buck in this week’s Buy Curious.

THE WISH LIST:

“I’d like to buy an investment property for less than $500k. In which Manhattan neighborhood can I expect to get the highest rent and the best return on my investment?”

THE REALITY:

For starters, let me say how great it is that you’re in a position to buy an investment property! While nobody can predict how the real estate market will behave in any particular year, we do know that an apartment in NYC will almost definitely appreciate over the long term. According to the Fourth Quarter BOND Report, the average price for a condo in NYC increased by 7.32% from the fourth quarter of 2012 to the fourth quarter of 2013. But of course, that kind of appreciation won’t happen every year.

If you can only afford to put 20% down, you should look at this as more of a long-term investment than an instant income-generating property as you’ll probably won't earn more than a few hundred a month, which will likely be put right back into the apartment.

That's why the first question I always have for buyers who are looking for investment properties is, "How much of the purchase price do you intend to put down?"  

If you plan to pay all or mostly cash and finance the minimum amount, you are much more likely to have positive cash flow.

I would start by searching for condos and condops (a co-op with condo rules) in your price range. While there are some co-ops in the city that allow for unlimited subletting, they can be hard to find, and since their rules are always subject to change you could potentially have an investment property on your hands that you can’t legally rent out!

You should start your search by looking in neighborhoods that have a good ratio of condos that would allow subletting. You also want an area that will strongly appeal to renters, with nearby shopping, nightlife and transportation. We’re fortunate in NYC, in that our real estate market is strong city-wide, so there are people who want to live in any and every neighborhood—as long as the price is right, that is.  

If you want to live uptown, try these: 

  • Upper East Side studio/1-bathroom condop, $499,000: Most investor purchasers are looking for a prime location and a full-service building like this studio in The Forum, (343 East 74th Street between First and Second Aves.) that falls just within your budget. The condop building has a land lease (meaning it doesn’t own the land that the building is on, often resulting in above-average maintenance fees because of the rent the building pays for the land, but a lower overall price due to the high common charges). This land lease makes the apartment less expensive than comparable apartments, but doesn’t affect how much it would rent for. In October of 2013, an apartment in the same line rented for $1,995 per month. At $499,000 with 20% down and a 4% mortgage, your monthly payments would be $3,052. But if you put 70% down, your monthly payments would be $1,861 and if you paid all cash, your monthly payments would be only $1,146.
  • Harlem 1-bedroom/1.5-bathrooms condo, $425,000: This 1-bedroom at 307 W. 126th St. between Eighth and St. Nicholas Aves. is well within your budget at $425k. Located in a townhouse building that has been completely renovated, this unit has a beautiful large kitchen, as well as in-unit laundry. It also has a tax abatement in place until 2022, which enables the property owner to pay zero taxes until the year 2018. With 20% down, the monthly payments on this property would be $2,353.21. Since it’s such a small building, there hasn’t been any recent rental history, but in today’s market it’s a good guess that this unit would rent for up to $2,500. Plus, it’s close to Columbia University, so there will be a new crop of potential renters in the vicinity every semester.

If you’d rather be in Midtown, this might work:

  • Clinton studio/1-bedroom condo, $450,000: This is a lovely studio in Worldwide Plaza, a modern full-service building located at 393 W. 49th between Eighth and Ninth Aves. Renters are always looking for studios in the Theater District. It’s easy to commute to pretty much anywhere else in the city from there and there are tons of restaurants and bars in the vicinity. If you put 20% down and finance the remainder at 4%, your monthly payments would be $2,634. A similar studio just next door to this one is currently on the market for rent asking $2,700/month.

FiDi also boasts a good selection of condos:

  • Financial District studio/1-bathroom condo, $495,000: This alcove studio in the old Cocoa Exchange at 1 Wall St. Ct. between Hanover and Pearl Sts. is asking $495,000. This is a new condo conversion with top-of-the-line finishes and building amenities, including a concierge and access to the roof deck. For this apartment, the monthly payments are at a 4% interest rate, so 20% down would be $2,406. The studio apartment just next door is currently for rent for $2,500/month.   

If you’d prefer a larger space and don’t mind going further uptown, this is a good option:

  • Hamilton Heights 2-bedroom/2-bathroom condo, $400,000: If you’re interested in a larger apartment and you need to stay under $500K, this 2-bedroom/2-bathroom duplex at 443 W. 151st St. between Amsterdam and Convent Aves. is only asking $400k and even has a den/office. The apartment is in a pre-war walk-up building with a common patio. With a 20% down payment and financing at 4%, your monthly payments would total $2,184. You could probably rent it for $2,300/month.

The Real Deal

Published 11/01/2013 - By Government Shutdown Slows Deal-Making

Government shutdown slows deal-making

Congressional debacle created uncertainty, as another debt deadline looms

November 01, 2013 
By Hayley Kaplan

During last month’s 16-day government shutdown, the business of New York City real estate appeared to operate mostly as normal, with apartments being shown and closings taking place. Nonetheless, the crisis likely damaged the housing market — at least temporarily, industry experts told The Real Deal.

The shutdown, stemming from a showdown between Republicans and Democrats over health care legislation, began on October 1 and lasted until the early hours of October 17, when Congress voted to reopen the federal government and raise the nation’s borrowing limit.

The decision came just in time to avert a financial default, in which the Treasury Department would have run out of money to pay the nation’s debt obligations.

Since the end of the shutdown, furloughed government workers have gone back to work, while government-run tourist spots have reopened. Many New Yorkers turned their attention to spotting the newest works by Banksy, the anonymous British graffiti artist who did a “residency” in New York last month. (While in town, Banksy also slammed the design of the new One World Trade Center, calling it a “shyscraper.”)

But the effect of the stalemate — which took an estimated $24 billion out of the United States economy, according to the financial ratings agency Standard & Poor’s — on the housing market could be longer-lasting, sources said.

First, the Congressional impasse caused credit to tighten as lenders proceeded with caution, fearing the economic results of the debacle.

Even before the shutdown, “many lenders [had] begun to move slowly,” said Lee Williams, a broker at Rutenberg Realty, adding that they were operating “from a place of uncertainty.”

And while the immediate crisis has passed, the uncertainty isn’t over: Congress only raised the debt ceiling until February, and Williams said industry insiders are concerned about another battle occurring then.

Uncertainty on the lenders’ part makes it more difficult for home buyers to get mortgages, which in turn could delay the housing market’s recovery by “a few quarters,” said Jonathan Miller, president of the appraisal firm Miller Samuel.

He said federal litigation with large banks — such as JPMorgan Chase’s record $13 billion settlement over mortgage-backed securities — is further delaying the easing of credit.

The national housing market is “already weak, and [these factors are] keeping the conditions weak,” he said.

Closer to home, New York City real estate brokers said the drama in Washington slowed the pace of sales in October, with home seekers hesitant to buy and sellers reluctant to put their apartments on the market.

“There is an expectation [among buyers] that a default would have a catastrophic effect on the global economy, and the New York City real estate market as an extension,” said Jeff Schleider, the founder of the brokerage Miron Properties.

As a result, he said, several of his firm’s clients delayed putting in offers or signing contracts during the crisis.

Luckily, there has been an uptick in deal volume at the firm now that government shutdown is over, he said.

Michael Signet, the director of sales at Bond New York, said he witnessed a similar phenomenon.

“This business is about perception,” he said, adding that the shutdown and possibility of the U.S. defaulting on its loans gave “the public the perception that the economy is heading in the wrong direction and that now is a good time to hunker down, hold onto their cash and wait it out.”

With the crisis over, Signet said, that perception “vanished pretty quickly,” however.

The full impact of how the slowdown impacted deal volume in the third quarter won’t be known until market reports comes out in January, Miller said.

Brick Underground

Published 10/29/2013 - By A 7-Step Guide For The Under 25 Buyer

A 7-STEP GUIDE FOR THE UNDER-25 BUYER

 
by Anne Machalinski | 10/29/13 - 8:59 AM
Yes, it's possible to buy a NYC apartment at age 22, but it's not easy. Here's how.

While many 22-year-olds are looking to snag their first job and shacking up with a crew of roommates in far-out Brooklyn, one--Polly Mosendz--recently bought her first piece of property in Manhattan, a $250,000, 418-square-foot co-op in the Village.

Earlier this fall, she wrote about that experience in  The Observer. Major Internet backlash ensued in publications like Gawker and the Huffington Post, where her experience was categorized as anything but “normal"--at least as far as coming up with a $50k downpayment at the typically paycheck-to-paycheck age of 22. 

But to Mosendz, amassing the necessary capital was only a fraction of the challenge at hand.

"Buying an apartment in your early twenties is more than a matter of having the money to do so," she told  BrickUnderground when we caught up with her. "It's a constant fight to be taken seriously by sellers, their agents, lawyers, financial institutions, and in the worst cases, even your own broker. All the money in the world doesn't matter if you don't have a good team on your side pushing the process forward." 

If you're under 25 looking to make your property dream a reality, read BrickUnderground's guide to How to Buy a NYC Apartment and keep the following age-appropriate tips and tactics in mind:

1. Understand that your youth may work against you

While buying a property is in theory all about the financials, young buyers can expect that their age will work against them in certain parts of the process. Or as Mosendz told us, expect a “tedious balancing act of proving yourself over and over again” to brokers and sellers and eventually to a co-op board.

Even if you have money for a downpayment (typically 20-25% of purchase price) and a salary that will cover monthly mortgage payments and maintenance,  a strong work and credit history takes time. Thus, experience sometimes wins out. 

“I don’t believe that the market is meant to keep young buyers out, but I do believe that the seller—and the sellers’ broker—are going to take offers from the best qualified candidates. And more often than not, somebody who’s been in business for a long period of time and who’s got steady income and steady credit history and isn’t borrowing from their parents, is a more likely co-op candidate than somebody who is," says real estate broker Michael Signet of Bond New York.

Another potential issue for young buyers—albeit one that can be overcome—is the question of how serious they are about closing a deal, says Gary Malin, Citi Habitats’ president.

To show that you're committed to buying and have the financials to get things done, Malin recommends preparation and organization through and through. Have everything ready to go before approaching a seller or seller's broker so that you're taken seriously from the beginning.

“If you come somewhat disorganized to the process, it sends a message to them that maybe you’re not really going to follow through,” Malin says.

And then there’s the board approval process, the key to closing on a co-op.

Boards are likely not concerned by age per se, says Toni Kamins, who spent six years on the board of her West Village high-rise, nor are they necessarily worried that a youthful buyer is going to party all night.  It's more that a board may wonder where you got the money from with only a few years of work history, and question whether you'll be able to make all of the monthly payments.

To offset these concerns, a co-op board might ask for some money to be placed in an escrow account.

To get board approval, Mosendz had a relative co-sign on the deed who is legally obligated to step in and pay her monthly maintenance if she ever defaults.

2. Get pre-approved for a mortgage

Unless you're prepared to pay for an entire property in cash, you'll need to secure some financing.

Robbie Gendels, a vice president and senior loan officer at National Cooperative Bank, says that she can work with first time buyers who have a job, good credit, and the down payment. The down payment may come from parents, but the buyer alone needs to be approved for a mortgage, as Fannie Mae no longer allows a non-occupant co-borrower on a fixed rate mortgage.  (Note that a co-borrower is allowed on an adjustable rate mortgage with a 25% downpayment.)

If you don’t have credit, you'll need to establish it before attempting to buy, as lenders today look for a credit score of 720 and above. You'll also needs to show some savings outside of your down payment -- enough for closing costs and about three months reserve -- which might include a kernel of a 401k, bonds, checking and savings. 

In terms of the down payment, a down payment of 20% eliminates the need for mortgage insurance, and 25% will get you a better rate in today’s environment, Gendels says.

Get pre-qualified for a mortgage before you start shopping, at a price point that takes into account the monthly mortgage payment, mortgage insurance payments (if applicable) and maintenance or common charges.

3. Find a real estate broker who will work with you

So why do you want to work with a buyer's broker in the first place? 

Having an experienced professional to walk you through the ups and downs of buying in New York City is helpful from a learning curve standpoint and to minimize any age-related bias you may encounter.

Mosendz searched without a broker for the first three months of her 14-month hunt.  She wasn't taken seriously, she says.

"At first, I went to a lot of random open houses by myself, without a broker at all. I was feeling out the market to see if there were properties that even existed in my price range that were in livable condition--I wasn't looking for much, just basic things like hot water and a toilet," she says. "When I tried to explain this to the seller's broker, they more or less blew me off as 'oh she isn't buying, whatever, not important'. Many wouldn't even show me the apartment without a broker, or would demand a brief description of my financials to be sure I was qualified."

After she began working with a broker, things went more smoothly. "It is much, much easier with a broker, especially a well connected one that knows what they are doing," Mosendz says

Not all real estate brokers are willing to work with a first-time buyer with a relatively modest budget, but they ought to be.

“Just because you’re going to buy something at the beginning entry price today, most real estate brokers are smart enough to realize that this is just the first of hopefully many transactions with you,” Citihabitats' Malin says, noting that a happy first time buyer will also likely send their friends. 

Malin recommends finding a broker through a personal reference, as Mosendz did, eventually working with Marc Solomon of Douglas Elliman,whom she calls "an incredible agent for young buyers." 

"I think that many first time buyers have a 'what if' moment--what if this one is the one, what if it gets away, what if our offer isn't quite right," she adds. "Marc helped me avoid a lot of 'what if' moments by being so diligent in his research, and understanding of what I needed even when I was frazzled."

4. Find a place you want to buy 

Once you hit this stage of the process, you probably will already have a good idea what you want, be that a neighborhood, or a necessary amenity, like a doorman or elevator building, outdoor space or a dishwasher. But real estate broker Michael Signet of Bond New York, recommends some flexibility, too. 

“We’re very rarely in a deal where there’s not multiple offers,” he says, adding that a young buyer with limited means shouldn’t “zero in on one property and make it all or nothing,” but should spread themselves out and make offers on multiple properties.  

He advises forgetting about the hottest areas, like SoHo or TriBeCa, and also forgo looking at units that have just hit the market. Instead, consider areas like the Upper East Side, where there is a solid inventory of smaller units, and focus on properties that have been on the market for longer, where the seller is more likely to take a chance on somebody.

Check out any neighborhoods you're considering and get comfortable with what you want and where you're willing to live, so that when you find the right place you're ready to pull the trigger immediately.

“The more decisive you are, the more you overcome what someone may perceive to be inexperience in the transaction,” he says.

Mosendz  was certainly decisive about what she wanted. She looked at about 100 properties, she says, and had a list of 20 questions she carried with her scaled from most to least important.

She wasn’t willing to compromise on the neighborhood and had other must-haves, like a bathtub and a live-in super. While she admits to being “very, very picky,” in the end, the list helped her narrow her focus and not waste anyone’s time.

“It eliminated the process of ‘I think I like it,’” she says.

5. Make an offer… and get it accepted

Overcoming inexperience in the eyes of the seller--and the seller’s broker--is a major worry for young first-time buyers. But all of this preparation should put you in a good position to close a deal.

“In the end, every seller really wants to get the best price, and they want to make sure that the person they’re dealing with, whether they’re a first time buyer or not, is financially capable of closing this deal,” Malin says. 

When a buyer is committed to making a purchase and is realistic about what they can afford and where, a sale should come together.

“You just want to show someone that you’re prepared, you’ve got all your ducks in a row, and you’re ready to act,” Malin says.

6. Get approved by the board

Many New York City properties are co-ops, which means that a board must approve every buyer before a deal is closed. While some boards are pickier than others, most, like Kamins', just care about financials. 

“We’re not going to discriminate,” she says, noting that her 120-unit building had a fair number of youngish buyers. “If your financials are solid, you’re going to get it,” she says.

Even with solid financials, Signet wants his clients to come to showings, and specifically board meetings, looking professional. “I don’t want them in jeans or tee-shirts,” he says, noting that a young buyer should always dress to be taken seriously.

In addition to solid financials, says Kamins, a board is just looking for somebody who is “going to make a good neighbor and who’s going to pitch in and become part of the community.”

7. Close the deal and enjoy your home

With the deal closed, it’s time to celebrate owning a piece of New York City property, no matter how small it may be.

While Mosendz says she’s found owning her own place scary at times (e.g dealing with surprise repairs, or when she thought she'd flooded her neighbors' apartment a few weeks ago) overall it’s been a positive experience.

"My toolbox has grown quite a bit, but I love it, because it is my toolbox and my apartment, and I am fixing it for myself to enjoy," she says. “I would never go back to renting now.”

residencyNY

Published 10/17/2013 - By Sales in the City

The Real Deal

Published 08/13/2013 - By Fore! TRD and 100 Power Players Hit the Greens

 

Fore! TRD and 100 power players hit the greens

August 13, 2013 10:00AM

« PREVIOUS NEXT »

 

From left to right: Corey Shmelka, Jim McPartland, Matt Keller and David Axelrod

The winning foursome at The Real Deal’s 3rd annual golf outing at Baiting Hollow Golf Club. From left to right: Matt Keller, Jim McPartland, Gerard Lynch and David Axelrod

Making a few deals while playing 18 holes on a lush course in the heart of Long Island Wine Country is not a bad way to start the work week.

And that’s how about 100 real estate power players spent their Monday — at The Real Deal’s third annual golf outing at the Baiting Hollow Golf Club in Baiting Hollow, N.Y. 

Brokers, lawyers, bankers and developers on both the commercial and residential sides came together for a lot of fun — and a little business.

From the pro shop to the driving range, the consensus was that the market is “very active,” as Michael Signet of Bond New York put it, and “somewhat frantic and very eclectic,” in the words of Eric Anton of Brookfield Financial.

The power players teed off for a game of scramble. After a few raindrops and more than a few missed shots, three teams came out on top.

Bank of America Home Loans — David Axelrod, Gerard Lynch, Matt Keller and Jim McPartland — walked away with the win. Second place went to the Douglas Elliman team of Jon Evans, Tom Drew and Michael Constantine. Coming in third was Rapid Realty’s Gabriel Chapman, Simon Day and Tyler Evenson.

Now, check out the video — and start planning for next year’s event. – Melanie Gray

residencyNY

Published 06/19/2013 - By Sales in the City

 

ABC News

Published 03/12/2013 - By Home Ownership a Long Shot For Many New Yorkers

 

Home ownership a long shot for many New Yorkers

Tuesday, March 12, 2013
 
Web produced by Jennifer Matarese, Eyewitness News

NEW YORK (WABC) -- New York City is an amazing place to live and an amazingly expensive one.

 

It's a city where nearly a third of the population pays more than half their monthly income in rent.

That means families who desperately want to own their own home are losing hope that they'll ever be able to do that.

28-year-old Nona Willis Aronowitz is a true New York City gal, having grown up in Brooklyn and Manhattan.

But, as she contemplates setting down roots and starting a family, the real estate reality has hit with a vengeance.

"I'm not sure if I'll ever be able to own property in the city, it's just too expensive," said Nona Willis Aronowitz, a renter.

Nona is a freelance journalist. Her husband an independent filmmaker.

As careful as they are with their finances, they fear they will never be able to save enough for a down payment, much less find a place they can afford.

"For me this is my home so I can't just go back to Iowa," Willis Aronowitz said.

New York City real estate has never been cheap, but for many young couples now hoping to start a family, it's not even about saving a little bit more, a city home for them is beginning to seem like the impossible dream.

"You're fighting a double edged sword. On one hand, rents continue to climb. As rents get higher and higher it makes it more difficult for them to save money toward the down payment," said Michael Signet, of Bond Real Estate.

According to Trulia.com the price per square foot for a Manhattan apartment has jumped 167.9% in the last year. That plus a shortage in inventory has not been good for first time homebuyers.

For Nona, the only silver lining is that she was able to find an affordable rental in Crown Heights.

But will she ever be able to own and raise her children in the city she loves?

"It is depressing," Willis Aronowitz said.

 

http://abclocal.go.com/wabc/story?section=news/local/new_york&id=9024711

 

 

Click To View Original Article..

Brick Underground

Published 02/19/2013 - By Looking For a Two-Bedroom? Better Hurry--or Set Your Sights On a 1.5 Bedroom

 

Looking for a two-bedroom? Better hurry--or set your sights on a 1.5 bedroom

by Lucy Cohen Blatter | 2/19/13 - 8:58 AM

 

As two-bedrooms get harder to find, buyers may turn to "1.5 bedrooms" like this $515,000 one-bedroom plus home office (pictured) at 102 Gold Street in Vingear Hill, Brooklyn, 

 
 

In the current real estate market, size matters when it comes to buying a co-op or condo.

A perfect storm of low mortgage rates, high rents and foreign investment has tightened inventory in almost all segments of the market--but especially so on opposite extremes of the spectrum, with starter apartments and large, family sized units in shortest supply, say the real estate brokers and market analysts we polled recently.

That means that if you're looking for a two bedroom, you may be in luck--or at least, enhanced luck--as compared to buyers hunter for bigger or smaller places.

For now.

Here's a quick segment-by-segment snapshot of how the real estate landscape looks right now.

1. Huge demand for starter apartments expected to continue

The entry level market--defiined as studios and one-bedrooms around $500,000--has been the busiest segment of the real estate market for the past year "in direct response to falling mortgage rates and rising rents," market analyst and appraiser Jonathan Miller of Miller Samuel tells BrickUnderground.

Real estate broker Ari Harkov of Halstead says he's seeing the same thing within an even more expansive definition "starter" apartments.

“With rents being what they are, there’s been a big spike in demand for apartments in the $500k to $1 million range,” he says. 

While it's true that in the past 90 days, the number of pending sales of under-$1 million apartments fell by 11.8 percent, that's likely a result of the slowing winter season and not necessarily a sign of a weak market, says Noah Rosenblatt, founder of Manhattan real estate analytics company UrbanDigs.

"Compared to a year ago, we’re seeing a much more competitive market,” with multiple bids and apartments moving quickly, says City Connections’ Holly Sose, who sold four clients their first apartments in the last quarter of 2012--all studios and one-bedrooms.

2. Two-bedrooms: Here for now, gone tomorrow?

Two bedroom inventory hasn't tightened up as much as studios/1-beds or 3-bedrooms, says real estate broker Michael Signet of Bond New York.  But that's probably temporary.

Like the other we spoke with, Halstead’s Harkov expects to see a shortage of two-bedrooms soon, primarily because many owners of two-bedrooms are being forced to stay put.

“The spread between two and three bedroom is too big for most buyers, so people are staying in their two bedrooms longer than they’d like to,” he says.

“Once inventory dries up we’ll see a similar situation to the smaller apartments,” says Signet.

As the supply of true two-bedrooms dwindles, the "one-and-a-half bedroom"--a room with no windows legally marketed as a home office or den--may become the next hot commodity.

“There’s a lot of value in that extra ‘half bedroom,'" says City Connections’ Sose, who has already noticed an uptick of interest in the "unofficial" two bedroom market. "You’re seeing savings of about 20 percent compared to a two-bedroom, and in many cases you’re getting just about the same amount of space."

In a soft market, a windowless room is worth about half as much as a legal bedroom of the same square footage,  Roberta Axelrod, a real estate broker and asset manager with Time Equities, told BrickUnderground recently.

"In a market where prices are rising quickly and there is limited availability," says Axelrod, "the discount may be as low as 30%."

3. Big game: Lack of three-plus bedrooms continues to taunt the wealthy

Even if you have a couple (or several) mil to spend on an apartment, you won't necessarily have an easy time finding one.

“This is the segment of the market that is probably the most starved for inventory,” says Harkov. Perhaps that's why “New York City is one of the only places in the world where you pay more per square foot when you’re buying a bigger place," he says.

As an example of the higher-per-square-foot prices, Harkov says, he recently sold a co-op in a building on 12th Street with very few large apartments. The three-bedroom, which needed a full renovation, sold for $1,300 per square foot, while the one-bedrooms generally go for about $1,100-$1,200 per square foot.

Tracie Hamersley of Citi Habitats reports that "some buyers I’m working with are looking for large spaces--5,000-6,000 square feet, and there’s just nothing downtown with so many bedrooms."

She points to two luxury condominium buildings -- Manhattan House on the Upper East Side and The Apthorp on the Upper West Side -- that have reconfigured some of their apartments into larger units “because there’s such a scarcity and demand.”

UrbanDigs' Rosenblatt says that unlike the starter segement, a typically slower winter season doesn't isn't getting in the way of demand for huge abodes.

In the last 90 days, he says, the number of pending sales of apartments priced from $1 million to $2 million is up 2 percent; pending sales for apartments in the $2m-$5m range are up 5.3 percent, and apartments over $5 million are up 13.9 percent.

Those looking for larger apartments may find some solace in new developments.

“The [new development] market in general has over the past 10 years geared itself to the upper end of the market, which means building larger apartments to meet the demand created by a more international and affluent clientele who need more space,” says new development marketer Steve Kliegerman of Terra Holdings.

Much of this inventory is in super luxury buildings with prices starting at over $3,000 per square foot.

The nosebleed pricing may wind up boosting values of large prewars, says Kliegerman.

"They have characteristics that many new construction buildings lack such as formal layouts with dining and maids rooms, moldings, inlaid floors, archways and other classic features," he says, and with prices below $2,500 per square foot, "older buildings with lesser amenities will be seen as a value at prices below say $2,500 per square foot.”

Bond’s Signet adds that bidding wars are most common when it comes to high-end apartments, thanks in large part to foreign buyers from Russia, China and Brazil, who often pay in cash. “Over $3 million apartments stay on the market for very little time,” he says.

No matter what size apartment you're chasing, the good news is that while prices are getting higher, sellers are not generally getting more than asking price.

“We’re seeing apartments going for ask, not generally above ask,” says Chandra Cadogan of Miron Properties. “We’re not there with boom-time prices yet, but it’s pretty darn close."

The New York Times

Published 07/16/2012 - By Market Ready

 http://mobile.nytimes.com/2012/07/12/garden/getting-rid-of-popcorn-ceilings-market-ready.xml

The New York Times - Market Ready - July 12, 2012

HomeFinder.com

Published 01/18/2012 - By Big Apple Real Estate Brokers Maturing

 

Big Apple real estate brokers maturing

Posted on: January 18th, 2012 by HomeFinder.com News

In the wake of the housing collapse, many young real estate brokers in New York City were left locked out of the market, The Real Deal reports.

According to the news source, recent data from the National Association of Realtors indicates the average age of brokers in the Big Apple has spiked during recent years, resulting in more seasoned professionals handling the sales transactions of homes for sale in New York City. 

"I've definitely been seeing a more mature group entering the business," said Bond New York executive director of sales Michael Signet. "It's been a boon for us. Older brokers come with a work ethic that you don’t get from 20-year-olds."

More specifically, NAR data shows the average age of brokers in the city increased from 52 in 2008 to 56 in 2010. In addition, most brokers had 12 years of experience in 2011, compared to just 10 in 2010.

As the average age of real estate brokers in New York City rises, it could result in a growing number of local industry experts able to identify and effectively handle market trends.

The Real Deal

Published 12/28/2011 - By Brokers Get Grayer

 

Brokers get grayer

NYC firms see unexpected benefits from older agent pool

December 28, 2011 
By Lucy Cohen Blatter

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In 2008, 21-year-old Jared Seligman had sold some $40 million worth of real estate and gained fame for listing the Olsen twins’ Morton Square penthouse.

And he wasn’t the only youngster flocking to residential brokerage during the mid-2000s. During the real estate boom, hordes of recent college grads entered real estate, hoping to cash in on the myriad six-figure deals taking place in Manhattan.

There are, of course, still some young hotshots in the field. But for the most part, the dream of getting rich quick — before age 30 — died with the Lehman Brothers collapse, as The Real Dealreported last spring. But now, new data from the National Association of Realtors confirms what real estate executives have been reporting anecdotally: NAR’s 2011 Member Profile, a national survey of the group’s members, showed that the median age of residential real estate brokers and agents across the country increased to 56 in 2011, up from 52 in 2008. Meanwhile, the average NAR member had 12 years of experience last year, compared to 10 in 2010. While New York City-specific numbers are hard to come by, brokers here said they’ve noticed the same thing.

“The average age of [real estate agents] is absolutely increasing,” said David Schlamm, CEO and founder of Manhattan brokerage City Connections Realty.

And while some predicted that a graying of the profession would have negative consequences, industry veterans say the more experienced workforce has proven to be unexpectedly beneficial.

“I’ve definitely been seeing a more mature group entering the business,” said Michael Signet, executive director of sales for Bond New York. “It’s been a boon for us. Older brokers come with a work ethic that you don’t get from 20-year-olds.”


Not getting any younger

New York City real estate brokers tend to be younger than their colleagues in the rest of the country. The Real Estate Board of New York said it doesn’t keep track of members’ ages, but brokers estimated that the average age of their colleagues is somewhere between 35 and 45, significantly younger than NAR’s countrywide average of 56.

“I would say that the average of those taking the 75-hour licensing course in my classes is 38 to 45,” said John Vitteriti, who teaches at the NYU Schack Institute of Real Estate.

The preponderance of young agents in New York is due in part to the city’s large number of rental apartments, brokers said. Rentals — a fast-paced, high-energy business — tend to attract 20-somethings, who often move on to sales as they gain experience. Plus, MNS CEO Andrew Barrocas noted, 20- and 30-somethings looking for rentals tend to prefer brokers in the same age range.

Greg Young, founder of the Manhattan real estate training and consulting company Broker Heaven, said the average sales agent he works with is around 45, while rental agents are closer to 30.

Still, the struggling economy and real estate downturn of the past few years have made brokerage less appealing for new graduates, brokers said.

“Fewer newcomers are coming into the industry than once were,” said Walter Molony, a spokesperson for NAR.

According to the New York Department of State, the number of residential and commercial brokers’ licenses issued across the five boroughs dropped from 3,245 to 1,897 between 2008 and 2009, during the worst of the recession. Between 2010 and 2011, the number fell from 1,952 to 1,519.

“Less and less people are calling me after college and asking to get into the business,” said Schlamm. “I think the economy has flushed out a lot of confidence.”

When Kathy Braddock, cofounder of Rutenberg Realty, appeared on a recent career panel at Harvard University, she asked the audience of undergraduates how many of them thought their parents would be proud if they became residential real estate brokers. Only one student raised their hand.

These days at Rutenberg, Braddock said, “we have a couple of people who come to work for us right out of college, but they’re very much in the minority.”

Many of the firm’s new recruits do come from other fields, however. “This is a logical job for people who have been laid off,” she said.

Others echoed that point.

“Recently, there’s been a larger influx of mid-level career-changers than in previous years,” said Marina Tokar, marketing representative for the New York Real Estate Institute. “The young, just-starting-out people … who entered the industry during the boom are being supplanted by career-changers.”

Experienced brokers also tend to have more staying power in today’s tough times, so they’re less likely to leave the field when the economy flounders.

“Realtors tend to become more successful over time — with referrals and return clients — so they’re likely to stay in the business longer,” said NAR’s Molony.

Older and wiser

But this more seasoned broker population has had unintended benefits for the industry. For one, agents with previous business experience under their belts often have advantages that help them succeed in brokerage.

“As an older person, you have more contacts, and this business is based on contacts,” Braddock noted.

And the wealthy buyers who can afford New York City homes — often baby boomers — often “don’t want to buy a $2 million apartment from a 22-year-old kid,” said Esther Muller, who runs the Academy for Continuing Education.

Overall, today’s pool of agents tends to have stronger skills and ethics than in the past, brokers said.

“Becoming an agent in New York City doesn’t necessarily lead to becoming profitable right away,” Schlamm said. “This is good, because it tends to eliminate the agents who are only in this business temporarily. The ‘get rich fast’ mentality seems to [encourage] newly licensed agents to take shortcuts in the way they do business.”

Of course, there are also downsides to the loss of younger brokers.

“Many agents who have been in the real estate business for a long time tend to be stuck in their ways and sometimes find it difficult to change the way they operate,” Schlamm said. He added that older agents are sometimes reluctant to embrace social media and other new technology.

“Seasoned agents must be constantly learning more and more,” he said, “in order to fully service their clients.”

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