tAg (theADVOCATEgroup): The Alpha Real Estate Agents of NYC, Specializing in Residental Sales & Rentals

Who is tAg at Corcoran/Soho?

Stephanie L Davis (tAg) (The Corcoran Group) — Tue, 10 Nov 2009 22:07:28 -0600

tAg @ Corcoran/Soho

tAg was wonderful in helping me find my NYC apartment! I posted a request on Twitter asking if anyone knew someone who could help me. And before I knew it, tAg contacted me on Twitter and we got the ball rolling! I would recommend tAg to anyone. Their services make the process infinitely easier and relieve the stress and headache involved in finding an apartment. Omayah Atassi

What is your real estate DNA? Let tAg expertly assess your DNA and provide you with a thorough analysis. tAg us to learn more! Bing us now!

Short for theADVOCATEgroup, tAg is comprised of innovative “Alpha Agents” Stephanie L Davis, Matthew Drennan, and Parish Pradhan. We take a divide and conquer approach to the New York City real estate process. We are here to change the face of real estate, knowing that “Traditional” real estate – more specifically, “deal churning” - is dead. We use a focused consumer-centric approach, and create custom-tailored services for our selective base of clients, who are our “co-agents” in the real estate process.

tAg boasts a combined 19 years of experience and proven expertise in both the Manhattan sale and rental markets. What’s more, we leverage the power of Social Media – ensuring an edge for all our clients. After all, real estate is inherently a social enterprise…and we believe we’re on the forefront. We are true "Visionaries," what we call "Alpha Agents." This is a new world where authenticity is everything. One of the ways our potential clients get to know us is over the internet, and then they choose whether they want to work with us professionally. No pushing, no hard sell.

Concentrating on Downtown Manhattan (categorized as 42nd Street and below), Stephanie, Matthew and Parish are specialists in assembling sale and rental co-op/condo board packages, expertly navigating the apartment inventory and neighborhoods, analyzing comparables, as well as prepping clients for board interviews. We have sold and rented a variety of apartments in New York City, from multi-million dollar properties to budget studios. We are true advocates for our sellers, buyers and renters!

Some quotes from past clients:

When I met with Matt and Stephanie of tAg, I knew they were a good fit for the property we were selling. Our apartment sold within our price target zone, within a week of listing. I would surely call on them again. Fred and Anne Stesney

Stephanie, Matthew, and Parish of tAg were pleasures to work with. They were professional and friendly, loyal to my cause, and always accommodated my schedule. Plus they took the time to answer my questions. Valerie Barber

tAg (Stephanie, Matthew, Parish) spent hours answering any and every question we had about the process and paperwork; even coached us on our Board interview. Rainbow Dickerson & Brett Koppin

tAgazine - First Issue October 2009! If you like, check out our cool take on the traditional newsletter!

Stephanie L Davis (tAg) (The Corcoran Group) — Tue, 20 Oct 2009 23:08:09 -0500

Click below!

tAgazine - First Issue October 2009! If you like, check out our cool take on the traditional newsletter!

Home Buying Path A to Z

Stephanie L Davis (tAg) (The Corcoran Group) — Sat, 03 Oct 2009 16:58:42 -0500

Home Buying Path A to Z

The Complete Home Buying Process

By Elizabeth Weintraub, About.com

The Home Buying Path Should be Easy to Navigate

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Every state requires slightly different steps to buying a home, although they are basically very similar. Since I am most familiar with the way California does it, here is the path to home ownership in California, broken down into simple steps:

1) Hire a Buyer's Agent

A buyer's agent will represent only you and have a fiduciary responsibility to look out for your best interests.
Buyer's agents may ask you to sign a buyer's broker agreement, but it is the seller who pays the commission.
Interview agents until you find an agent you trust and with whom you feel comfortable.
Once you have settled on an area, try to hire a neighborhood specialist.

2) Get PreQualified / Preapproved

Order a free credit report online and fix mistakes, if any.
Ask your agent for a referral to a mortgage broker, but also compare rates offered by your own bank and / or credit union.
Ask the lender to give you a loan preapproval letter, which means it will verify your income and pull a credit report.
Determine your maximum loan amount, but choose only a mortgage type that you understand and a payment level with which you feel comfortable, which may very well be less than the maximum for which you are approved.

3) Look at Homes for Sale

Ask your agent to look at homes for you before showing them to you.
Narrow your search to those homes that fit your exact parameters to find that perfect home.
Ask your agent to give you MLS print-outs of comparable sales in your targeted neighborhood.
Consider all homes on the market, including fixer-uppers, REOs, foreclosures, short sales and those overpriced homes with longer DOM.
Observe open house etiquette.
Tell your agent which online home listings you are interested in previewing and ask for additional input.

4) Write a Purchase Offer

Consider writing seller's market offers in sellers markets and buyer's market offers in buyer's markets.
Select a home offer price based on the amount you feel a seller will accept or counter.
If you are considering a lowball offer, ask your agent to substantiate this price for you.
Prepare for multiple offers if the home is considered desirable in a hot location.
If your offer is rejected, ask your agent to explain why and don't repeat that mistake with your next offer.

5) Negotiate and Write Counter Offers

Expect the seller to issue a counter offer.
If the seller counters at full price, continue to negotiate.
During offer negotiation, share personal information about your family to give the seller a reason to care about you.

6) Make an Earnest Money Deposit

When your offer is accepted, deposit your earnest money check with the appropriate party.
Do not ever make your check payable to the seller.
Your offer should contain contingencies that will return your earnest money deposit to you if you cancel the contract.

7) Open Escrow / Order Title

Your agent or transaction coordinator will open escrow and title, if the listing agent hasn't already done so.
Ask for the escrow officer's name, phone and escrow file number.
Give this information to your lender and your insurance agent.

8) Order Appraisal

Your lender will require an advance payment for the appraisal.
If you receive a low appraisal, discuss options with your agent.
Ask for a copy of the appraisal.

9) Comply With Lender Requirements

Lenders may ask for additional information.
Do not make home buying mistakes such as altering your financial situation while in escrow.
When the file is complete, the lender will submit it for final underwriter approval.

10) Approve Seller Disclosures

Read and question items you do not understand on the TDS, Seller Property Questionnaire, natural hazard report, pest inspection / completion and other documents such as a preliminary title policy.
Realize you have 10 days to cancel if lead paint is a health hazard.
Read every document in its entirety; ask questions about all seller disclosures.

11) Order Homeowner's Insurance Policy

Order your homeowner's insurance early.
Sometimes previous claims by a home owner can make it difficult to get insurance.
Get replacement coverage.

12) Conduct Home Inspection

Hire a reputable home inspector.
Bring a home inspection checklist with you.
Attend the home inspection.

13) Issue Request for Repair

If the home inspection turns up health and safety issues, issue a request for repair by asking the seller to address those issues or give you a credit for them.
Realize no home is perfect, and the inspector will find faults.
Be reasonable.

14) Remove Contingencies

By default, California C.A.R. contracts give you 17 days to remove contingencies.
Make sure your loan is firm and the appraisal is acceptable before removing your loan contingency.
If you do not remove contingencies, the seller can issue a request to perform and then cancel the contract, on top of demanding your deposit.

15) Do Final Walk-Through

Do not pass up doing a final walk-through.
Inspect the property to make sure it's in the same condition as when you agreed to buy it.
If you find a serious issue, address it now before you close.

16) Sign Loan / Escrow Documents

In southern California, you will sign escrow documents shortly after opening escrow.
In northern California, you will sign escrow documents along with your loan documents near closing.
Bring a valid picture ID.

17) Deposit Funds

Bring a certified check payable to escrow.
Expect escrow to pad the amount, so you will receive a refund after closing.
Consider asking your bank to wire the funds to escrow, saving you the hassle of waiting in line at the bank.

18) Close Escrow

Your property deed, seller's reconveyance and deed of trust will record in the public records.
Title will notify you and your agent when it records.
After recordation, unless your contract specifies otherwise, the property is yours -- change the locks immediately.

Should You Tell Your Buyer's Agent the Highest Price You Will Pay?

Stephanie L Davis (tAg) (The Corcoran Group) — Sat, 03 Oct 2009 16:56:00 -0500

Should You Tell Your Buyer's Agent the Highest Price You Will Pay?

The Case for Not Sharing Your Highest Sales Price With Your Agent

By Elizabeth Weintraub, About.com

It might be risky to tell your agent how high you will go.

You might be tempted to tell your agent everything, including the top price you will pay for a home. After all, your buyer's agent is supposed to be on your side and keep your information confidential.

This reminds me of my mother's advice from a long time ago. She used to tell me that the only sure-fired way to safeguard a secret was to keep my trap shut. After I share a secret with another person, it may no longer be a secret.

It's Not That You Can't Trust Your Agent; It's That Agents Can Slip Up

When my clients write an offer, I often advise them to keep their top sales price private. I truly do not want to know how high they will go. My job, when I am a buyer's agent, is to present and negotiate the offer I have in my hand. With blinders on.

If I know the buyer will pay more, that knowledge could possibly weaken my conviction. Not that I would willingly violate a fiduciary relationship with a buyer, but I am human, just like anybody else.

See, when the shoe is on the other foot and I am the listing agent, I am generally able to wrangle out of buyers' agents how much higher their buyers will go. It could be a slip of tongue over a single word or a shift in the tone of voice that I'll pick up on. Sometimes they just blab it out.

Although I am confident that I would never break a client's trust and accidentally spill the beans to the listing agent, it's possible that the listing agent may also be sensitive to subtle clues like I am. If I make myself believe that I am presenting my buyer's highest and best offer, my case for offer acceptance rings through loudly.

Why You Should Not Tell Your Agent Your Top Price

Right after writing an offer, it's common for home buyers to play through scenarios in their heads. They can drive themselves crazy by this process, but they can't seem to help it. Here are some of their thoughts:

What will we do if the seller outright rejects our offer?
Should we tell the seller we will consider a counter offer?
If the seller accepts our offer, maybe we offered too much.
Maybe the seller will be insulted because we offered too little.
If the seller counters at full price, should we accept that price or should we make a counter offer?
If the Seller writes a counter for $10,000 more than our offer, should we split the difference and increase the sales price by $5,000?

All of this may result in an urge to tell your buyer's agent exactly how much you will pay. That's understandable. As a buyer, you want and need strategic advice.

But my advice is don't cross the bridge twice. Deal with a known quantity. Apart from the examples above, there are dozens of ways a seller can react to an offer. Much depends on factors such as the temperature of the marketplace, competition for the home, available financing, and the seller's motivation. Offers should be structured from the beginning with those conditions in mind.

When buyers tell me they want to share in advance how high they will go, I feel a need to put my fingers in my ears and sing: "lalalalalala." I don't need to know at that point. My practice is if we receive a counter offer, we should develop a strategy based on that counter offer. To do otherwise wastes mental energy and can drive you nuts. Every situation is different. Why plan out your next 10 chess moves if the king is in checkmate?

The best outcome, of course, is the seller will accept the buyers' offer upon presentation. And that, believe it or not, happens all the time.

NEW YORK TIMES - your money: 7 New Rules for the First-Time Home Buyer

Stephanie L Davis (tAg) (The Corcoran Group) — Sat, 12 Sep 2009 13:22:36 -0500

September 12, 2009

Your Money

Seven New Rules for the First-Time Home Buyer

by RON LIEBER

Too many people bought too much house for too many years.

Yes, the financial system almost collapsed because mortgage bankers and brokers told lies about loan terms and loosened standards in dangerous ways, and investment bankers packaged those loans into bonds that were far more toxic than ratings agencies predicted.

But the roots of the mortgage contagion lie with all of us and our desire to own just a bit more house.

So as the one-year anniversary arrives of our near financial collapse, it’s a good time to blow up a long-standing but underexamined maxim of real estate — that you should always stretch financially when buying your first home.

No one is quite sure who came up with this idea, though suspicions rest on real estate agents or kindly parents with the best of intentions who never expected that real estate prices could fall. Whatever its origin, the economists and financial planners I spoke with this week are almost unanimous in their rejection of it.

Here’s how they dismantled the old saw — and a list of seven suggestions they offered up in its place.

START WITH THE BASICS Let’s begin with some other standards, tried and true advice that served banks and borrowers well for years, until they forgot all about them in the race to write more loans and buy bigger houses. Put 20 percent down, so you have less of a chance of owing more than your home is worth if prices fall again. Get a fixed-rate mortgage, so the biggest part of your monthly housing bill remains stable.

If you’re determined to be truly conservative, don’t spend more than about 35 percent of your pretax income on mortgage, property tax and home insurance payments. Bank of America, which adheres to the guidelines that Fannie Mae and Freddie Mac set, will let your total debt (including student and other loans) hit 45 percent of your pretax income, but no more.

That said, if you end up with an adjustable-rate loan, banks may not be concerned with whether you’ll be able to afford the maximum possible payment when the interest rate adjusts in five or seven years. But you should be worried about it.

CONSIDER YOUR INCOME The best case for stretching for a first house is that first-time home buyers in their 20s and 30s will probably see their incomes grow more quickly than older people buying their second or third home.

Harvey S. Rosen, a Princeton economics professor, finds in a forthcoming Journal of Finance article that he co-wrote with two Federal Reserve Bank economists, Kristopher Gerardi and Paul S. Willen, that the size of a house that someone buys tends to be a good indicator of what their income will be later. “People can, on average, make reasonably good predictions of their future incomes and act on them in sensible ways by buying bigger houses,” Mr. Rosen said.

Indeed, much of the mess in the mortgage market has been because of people borrowing money with loans that they didn’t understand — or betting that housing prices would continue to rise enough that they would be able to refinance their loans before the payments rose. Income overconfidence may have had something to do with it (and high unemployment worsened the problems), but it’s probably not the primary cause.

BOW TO UNKNOWNS This research is all well and good as long as you continue to work. But if you’re buying your first home before you have children, you may feel quite differently about work once you become a parent. And if you do, you may not want a mortgage boxing you in to going back to the office three months after the baby is born.

Bobbie D. Munroe, a financial planner with Fraser Financial in Atlanta, encourages younger clients in this situation to model out their budget, including any proposed mortgage, three ways — with both spouses working full time, one working part time and one staying at home for a few years. She also suggests imagining or even practicing living on one income, to see if it’s truly realistic.

“What people should do is ultimately their own decision,” she said. “But they should do it with eyes wide open.”

Even people who don’t want to have children need to consider this. Besides the obvious possibility of sustained unemployment, what about the need to escape a dying industry or an early midlife crisis that necessitates career change to stave off depression? Even government employees and medical residents who believe that their incomes are set for life ought to consider this possibility.

MAP OUT EXPENSES It stands to reason that anyone tempted to stretch for a house will be inclined to play down the expense of maintaining it. These costs are anything but ancillary, though.

For many years, Dennis G. Stearns, a financial planner in Greensboro, N.C., has been alarmed enough by clients’ unrealistic expectations that he’s maintained a home cost spreadsheet that he shares with clients shopping for houses. He also updates it periodically with aggregate, real-world data based on their subsequent experiences.

Mr. Stearns estimates that owners of a newer home that do some work for themselves but contract major work out to others will pay 3.6 percent of the original purchase price annually for maintenance and 4.5 percent if it’s an older home. So if you own a $400,000 home, your costs will probably hit the five figures each year — and may rise with inflation. These expenses will be another 20 percent or so higher if you live in a severe weather area. He does note, however, that the tax benefits of home ownership can offset half or more of these costs in some areas of the country.

BUY BEST (OR CHEAPEST) All of these caveats have given rise to some unusual strategies. Michael Kalscheur, a financial planner with Castle Wealth Advisors in Indianapolis, suggests buying the dream house you covet (if you can afford it) or an inexpensive starter house but not anything in the middle.

“If people have their heart set on something, inevitably, if they can’t afford what they really want, they buy the next best thing,” he said. “That’s absolutely the worst thing you can do. Not only do you not get what you want, but it sucks you dry.”

Why? Well, if you buy that entry-level home instead of the silver-medal home, you can save a lot more money each month after making the house payment (as long as you’re disciplined) than you would if you were paying a big mortgage toward that next best house. And all of your other housing costs will be lower, too. Then, several years later, you’re in a much better position to buy what you actually want.

STRETCH THE HOUSE Better yet, keep in mind that you don’t ever have to move from that first home — and incur all of the transaction costs associated with selling and buying and moving again.

J. Michael Collins, an assistant professor in the department of consumer science at University of Wisconsin’s School of Human Ecology in Madison, suggests paying less for a home that you can upgrade periodically when your income is stable and your savings or available credit make it possible.

In other words, stretching out your tenure in a home (and the physical boundaries of the home itself) may make more sense than stretching for each successive mortgage in a series of two or more houses.

THE EIGHT-HOUR RULE One rule about all of these rules is that it’s unlikely that every one will apply to every circumstance. Individuals and their income streams are too varied, and real estate markets are themselves unique.

When all else fails, however, you can always fall back on the eight-hour test. Whatever the size of your mortgage, you have to be able to sleep soundly at night. So if an impending loan has you stretching for the Ambien, it’s a pretty good sign that the loan is a bit of a stretch as well.

Free rent leads to success at Silver Towers

Stephanie L Davis (tAg) (The Corcoran Group) — Thu, 03 Sep 2009 16:57:12 -0500

Free rent leads to success at Silver Towers

September 03, 2009 03:00PM By Candace Taylor

Nothing beats free stuff.

That may be the lesson learned from Larry Silverstein's Silver Towers at 42nd Street and 11th Avenue, which is leasing up faster than expected after offering two months of free rent to new tenants.

When the two 60-story glass towers began renting in May, Silverstein wondered aloud in the New York Times how he would lease up the largest and tallest rental project in the history of New York in the midst of a deep real estate slump.

"I'd be lying if I said I wasn't scared when we opened," Clifford Finn, the managing director of new development marketing at Citi Habitats, who is heading up leasing at the project, told The Real Deal. "You open it when the market is declining, and have to wonder how we're going to fill 935 market-rate apartments."

The still-under-construction project is located in a not-so-well established neighborhood on the far West Side and has a total of 1,275 units, including 234 affordable units previously available through a housing lottery, and 106 corporate suites.

Moreover, Finn said he was nervous because Silver Towers, at 600 West 42nd Street, is a "much higher-end building" than other rentals in the city, with studios starting at $2,300 per month, one-bedrooms at $3,200 and two-bedrooms at $4,300.

"The intention of the design was to deliver something that had more of a condo standard, but do it as a rental," Finn said.

He wasn't sure how that would play in a recession, where bargain-hunting is the name of the game. But the project is doing surprisingly well, he said.

Since May, some 250 Silver Towers market-rate units have been rented, and 100 of those residents have moved in. While that's slower than the lightning-fast lease-ups of the boom years, it's better than he expected in the current market, with rental transactions way down.

"Surprisingly, the audience we hoped was out there, was out there," he said. "Everything we had for September and October is pretty much absorbed."

Units below the 36th floor are ready for move-in, he said.

How did they do it?

For starters, the developer has been offering two months free rent for leases signed before Oct. 1. The technique appears to be working so well at Silver Towers that the team is considering extending the program beyond its original endpoint, he said.

"Absorption has been so good, we may leave it," Finn said.

This indicates that New Yorkers are still drawn to offers of free rent, even though that incentive is now being offered all over town.

In addition, he said, the project seems to be helped rather than hurt by its condo-style finishes. During the boom years, he said, consumers developed a taste for Bosch appliances and marble countertops and are reluctant to give them up, even as they look for a good deal on rent.

"So many people who are choosing to rent, they just have a tough time accepting the typical generic rental," he said. "They want views, they want luxury, they want nicer finishes. The bar has been raised."

That's due in part to the fact that many renters are former condo owners who are waiting for the market to improve before buying again.

"Now that sales have slowed down, there's more of that pool in the rental market," Finn said.

The project also has an advantage over the recent spate of condos turning rental in the midst of slow sales.

Because Silver Towers was planned and financed as a rental, it's more affordable than many condo-turned-rentals, he said. And its finishes -- including Afromosia wood floors and Fisher & Paykel cook tops -- look and feel high-end, but they're less expensive than those used in your average $1 million condo.

"There are so many more options today, you can achieve the same look without spending the money," he said.

Silver Towers is slated for completion around the beginning of 2010, Finn said.

Got a tip? E-mail Candace Taylor at ct@therealdeal.com.

Tags: Larry Silverstein citi habitats clifford finn silver towers

Pending Home Sales on a Record Roll - rollin and rollin - keep it up!!

Stephanie L Davis (tAg) (The Corcoran Group) — Tue, 01 Sep 2009 14:38:03 -0500

Daily Real Estate News | September 1, 2009 |

Pending Home Sales on a Record Roll

Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007, when it was 100.7.

Affordability at Record High
Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said.

“Other buyers are taking advantage of low home values before prices turn higher. Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family’s monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable,” Yun said.

First-Time Buyers
NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. Buyers have little time to act because they must complete the transaction by November 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible – it is taking approximately two months to complete home sales in the current market.

By Region

Northeast: The Pending Home Sales Index declined 3.0 percent to 78.8 in July but is 4.7 percent higher than July 2008.
Midwest: The index slipped 2.0 percent to 88.1 but is 8.1 percent above a year ago.
South: Pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008.
West: The index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago.

"Keep the Momentum Going"
NAR President Charles McMillan said Congress needs to keep the momentum going. “Even with a good recovery taking place, the market is not yet back to normal. With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices,” he said.

“To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, we’re encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences. The faster we stabilize home prices, the fewer families will face foreclosure and the quicker credit can be extended to other sectors of the economy,” McMillan said.

NAR’s Housing Affordability Index stood at 158.5 in July, below the peak set in April but is still 36.0 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates, and family income.

Yun expects existing-home sales to rise through the fourth quarter. “Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year,” he said. “However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. The buyer psychology may be shifting from, ‘Why buy now when I can purchase later?’ to ‘I don’t want to miss out on a recovery.’”

Source: NAR

Your Weekly Newsletter from Michael McGivney - Mortgage Updates/News

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 30 Aug 2009 13:28:12 -0500

MARKET RECAP

With the passing of each week it becomes increasingly difficult to argue that housing isn't in full-recovery mode. This week's data makes it nearly impossible, considering that sales of new homes spiked 9.6%, in July, to an annual pace of 433,000 units. The “experts” had expected sales to post at only 390,000 units. The increase was the largest since February 2005, helping to force the inventory of new homes down to a 7.5-month supply, the lowest in 16 years.

Even more encouraging, the most recalcitrant housing bear is starting to turn bullish. Robert Shiller, co-creator of the S&P/Case-Shiller home-price index, told Bloomberg that “we might be seeing a turnaround.” Understated, to be sure, but that's Shiller's style. As for his index, 18 of the 20 cities tracked showed improvement in June, up from eight in May, four in April, and only one in March.

Detractors will counter that the recovery is concentrated in lower-priced homes. True, but that's changing as well. Toll Brothers, a luxury homebuilder, stated that declining cancellations and firming prices has allowed the company to reduce incentives and raise prices in selected communities. To quote Toll Brothers Chairman and CEO Robert Toll, "We believe that customers are recognizing that now is the time to get into the market to take advantage of near-record affordability in what is still, for now, a buyer's market."

More optimism can be gleaned from the fact that housing isn't the only big-ticket sector showing signs of recovery. Orders for durable goods – those meant to last several years – jumped 4.9% in July, posting the biggest increase in two years. Yes, the “cash-for-clunkers” program was a contributing factor, but even without this incentive, other durable goods orders moved ahead 0.8%.

The gross domestic product numbers also suggest that all, if not well, is getting better. On that front, the government says the economy shrank at an annual rate of 1% in the second quarter, a better-than-expected showing. The drop, while representing a record fourth consecutive decline, was far smaller than the previous two quarters. It also was stronger than the 1.4% decline that many economists had expected.

Finally, mortgage rates continue to hold steady, a sign that inflation remains a non-issue. The 30-year fixed-rate loan continues to hold at 5.5% while the 15-year fixed-rate and five-year adjustable-rate loans continue to hold at around 4.9%. Today's housing market remains a buyer's market, with low prices and low borrowing rates, but keep in mind Mr. Toll's quote, “for now.”

Economic Indicator	Release Date and Time	Consensus Estimate	Analysis
Construction Spending (July)	Tues, Sept. 1, 10:00 am, et	0.1% (Increase)	Important. Aggregate spending is improving on increased home building.
Pending Home Sales (July)	Tues, Sept. 1, 10:00 am, et	94.1 Index	Important. Sales continue to show strength heading into the latter stages of the “selling season.”
Mortgage Applications	Wed, Sept. 2, 7:00 am, et	None	Important. Another increase in purchase applications is further evidence of a housing recovery
Productivity & Costs (2 nd Quarter 2009 Revised)	Wed, Sept. 2, 8:30 am, et	Productivity: 5.9% (Increase) Costs: No Change	Moderately Important. Productivity out pacing costs means employee-driven inflation remains subdued.
Factory Orders (July)	Wed, Sept. 2, 10:00 am, et	1.0% (Increase)	Important. Based on recent strength in durable goods orders, markets might be underestimating factory-order strength.
Federal Reserve FOMC Meetings	Wed, Sept. 2, 2:00 pm, et	None	Moderately Important. The minutes are expected to reveal the Fed's bias toward economic growth.
Employment Situation (August)	Fri, Sept 4, 8:30 am, et	Unemployment Rate: 9.5% Hourly Wages: 0.2% (Increase)	Very Important. Another broad-based improvement in unemployment will further boost the economic outlook.

How Technology Helped Avert Disaster

The economy was never going to get as bad as many had thought, and by many we mean the doomsayers predicting a replay of the 1930’s. Reason being, markets are too efficient and too knowledgeable today; many people are following all segments of the economy, thanks in large part to today's information and communications technology.

A stock-market analogy is in order: Back in the 1930’s, Ben Graham, Warren Buffett's mentor, discovered that buying stocks trading at dirt-cheap prices proved highly remunerative. Graham would parse financial statements for companies with a lot of cash and little debt – a tedious and time-consuming endeavor at the time. Graham's modus was to buy companies for their current assets and get everything else – land, plant, and equipment – free. Graham's strategy can't be replicated today because information is so widely and cheaply disseminated that investors pounce before companies reach such levels.

Homes aren't homogeneous like stocks, but there are many more information-savvy buyers vetting housing opportunities today than there were in the 1930’s, so prices – on the national level – are highly unlikely to collapse. (They can collapse in niche, depressed markets – inner-city Detroit, for example – but that's always been the case.) Of course, there is always a risk of buying too soon, but buying too soon is still usually remunerative over the long run. The same can't be said for buying too late.

First-Time Buyer Tax Credit Extension Possible

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 30 Aug 2009 12:40:51 -0500

Daily Real Estate News | August 24, 2009 |

First-Time Buyer Tax Credit Extension Possible

Bills to extend the maximum $8,000 tax credit for first-time home buyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.

Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate Banking, Housing, and Urban Affairs Committee, is co-sponsor of a bill with Georgia Republican Sen. Johnny Isakson that would raise the credit amount to a maximum of $15,000.

Senate Majority Leader Harry M. Reid of Nevada favors an extension of the current credit. He was quoted by the Las Vegas Sun saying, "It's something we can get done."

Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount increasing aren’t as good, observers say.

Source: Washington Post Writers Group, Kenneth R. Harney (08/22/2009)

GEN X-Y Heather Ehret Faircloth Says Real Estate Biz Is Still About Referrals - go genNOW!

Stephanie L Davis (tAg) (The Corcoran Group) — Thu, 27 Aug 2009 20:52:52 -0500

Gen X - gen Y Brokers Have Bright Future - that is us, team tAg!

Stephanie L Davis (tAg) (The Corcoran Group) — Thu, 27 Aug 2009 20:50:00 -0500

An Offer Accepted, but can Open Houses Go On???

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 09:41:06 -0500

An Offer Accepted, but Open Houses Go On

By Jay Romano

Can a seller’s real estate agent legally and ethically hold an open house after a contract to buy an apartment in New York State is issued? I’m the buyer, and my lawyer is reviewing a contract sent by the seller’s lawyer. I have just found out that the seller is having an open house for the apartment that I am in the process of buying.

Edward I. Sumber, a White Plains lawyer who is counsel to the Westchester County Board of Realtors, said that whether or not a contract has been signed, the seller may still market a home so no time is lost if the buyer defaults or cannot get a mortgage.

But, Mr. Sumber said, even if a better offer is made, the seller and buyer are bound by the terms of the original contract if it has been signed and delivered to each party.

Condos vs. Co-ops: The Monthly Charges

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 09:36:12 -0500

Condos vs. Co-ops: The Monthly Charges

By Jay Romano

While I understand the fundamental differences between a co-op and a condominium, I am curious about the monthly charge. If one were to compare the maintenance charge in a co-op with the condo’s common charge (plus real estate taxes) in identical buildings, would the maintenance and common charges be different, and, if so, why?

Steven Sladkus, a Manhattan co-op and condo lawyer, said that co-op maintenance is typically a function of the building’s operating expenses, the real estate taxes assessed against the entire building and the debt service — that is, the principal and interest paid on the underlying mortgage (which most co-ops have).

Condominium common charges are a function only of the building’s operating expenses because most condominiums do not have a mortgage on the building or its common elements. While real estate taxes in a condo are assessed against the units individually and paid separately by each unit owner, as a general rule, the aggregate real estate taxes should be the same whether the building is a co-op or a condo.

So, Mr. Sladkus, if all things are equal, the difference between a co-op shareholder’s maintenance and a condominium unit owner’s common charges would be the shareholder’s additional payment of his or her proportionate share of the underlying mortgage (if there is one).

Co-op Tips: Co-op Board Repeatedly Rejects Potential Buyers

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 09:26:44 -0500

Co-op Board Repeatedly Rejects Potential Buyers

By Jay Romano

I own a one-bedroom co-op in Yonkers, and the board has rejected four buyers for my unit in the past two years. The mortgage is paid for, so I am paying the maintenance for an empty unit. The board is unsympathetic. What happens if I just walk away from the apartment?

“Most co-op proprietary leases allow a tenant-shareholder of an apartment to cancel the lease and relinquish possession of the apartment,” said Alexander Suslensky, a Manhattan real estate lawyer.

Typically, Mr. Suslensky said, the cancellation right is available on only one date per calendar year and requires the apartment owner to follow strict notice provisions. Many proprietary lease forms, he said, allow cancellation to be effective as of Sept. 30, provided proper notice is given to the co-op on or before April 1 of the same year. To complete the cancellation, the apartment owner must pay all maintenance and other charges due, and the apartment must be relinquished free of all liens and encumbrances.

Mr. Suslensky acknowledged that simply walking away from the apartment and not paying the maintenance might work out fine for the letter writer if the apartment is subsequently sold and the sale price covers any outstanding maintenance charges and other fees. Any proceeds of the sale left over after the bills are paid would go to the writer.

But walking away without following the cancellation procedure may subject the owner to liability for additional charges (including the co-op’s attorney fees and accumulating maintenance charges until the apartment is sold). In the event the apartment is not sold, the letter writer could be liable for many months of maintenance charges.

Co-op Shareholder Tips: Failure to Pay Maintenance

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 09:23:30 -0500

Failure to Pay Maintenance

By Jay Romano

What happens when co-op shareholders don’t pay their monthly maintenance fees? Are the fees charged to the other shareholders? Are there legal avenues that the board or the management company can pursue?

“When a shareholder fails to pay the maintenance, the portion of the building’s expenses attributable to the delinquent shareholder will ultimately be borne by all other shareholders,” said Alan L. Kazlow, a Manhattan co-op and condo lawyer.

Usually, Mr. Kazlow said, the co-op will have operating or working capital to cover temporary shortfalls in maintenance. “The amount available for this purpose will vary, “ he said, “depending upon the financial structure of the co-op and any other sources of income from, for example, rent from commercial space, flip taxes and the like.”

The failure to pay maintenance, he said, is a default under the proprietary lease and may result in the cancellation of the lease. “The co-op’s bylaws customarily will provide that the co-op has a first lien on the shares of each shareholder to secure payment of the maintenance and all other indebtedness due from the shareholder,” Mr. Kazlow said.

As a result, the co-op can enforce the lien after a default in payment of maintenance and sell the shares and the related proprietary lease at a lien foreclosure sale.

Co-op Buyer Tips: Buyer Inspections of Co-ops - is it costumary after offer is accepted??

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 09:18:54 -0500

Buyer Inspections of Co-ops

By Jay Romano

I recently made an offer on a co-op, which was accepted. I assumed I would need to get an inspector to look at the apartment and the building in general, but I have heard that this is not necessary in a co-op. Is this true?

“Under normal circumstances, there is no need for an engineer’s inspection when purchasing a co-op apartment, since the purchaser is not actually purchasing the apartment itself, but rather shares of stocks of a corporation that owns the building,” said Lior Aldad, a Manhattan co-op and condo lawyer.

As a shareholder, the buyer will be leasing the apartment from the co-op corporation through a document called a proprietary lease, he said. The responsibility for maintaining the building falls on the corporation and all shareholders.

But many co-op offering plans and proprietary leases state that the shareholders are responsible for the repair and maintenance of elements within an apartment, like the windows, the opening in the wall for an air-conditioner unit and any alterations made to the original apartment.

Therefore, the reader should review co-op documents and question the current owner to determine if any major alterations have been done to the apartment. If so, an engineer’s inspection of the alterations may be beneficial.

Co-op Buyer Tip: Why Some Fees Are Not Negotiable

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 09:14:37 -0500

Why Some Fees Are Not Negotiable

By Jay Romano

In today’s market, is it possible to negotiate on co-op maintenance fees?

“No,” said Richard Siegler, a Manhattan co-op and condominium lawyer. Maintenance charges under a co-op proprietary lease are customarily determined by multiplying the co-op’s annual cash requirements by a fraction that represents the shareholder’s proportionate ownership interest in the co-op corporation. (Mr. Siegler said that the fraction is determined by dividing the number of shares allocated to the apartment by the total number of shares of the co-op.)

Under federal tax law, he said, in order for co-op shareholders to obtain the same income tax benefits as home and condominium owners, the value of the shares issued for an apartment must bear a reasonable relationship to the total value of the co-op’s property.

“Once shares have been issued and allocated to specific apartments,” Mr. Siegler said, “the co-op documents make no provision for change — usually, absent the vote of the holders of two-thirds of the corporation’s shares — because any change would affect the maintenance charges of all shareholders.”

Co-op Buyer Tips: Contract Price not in line with Appraisal, what happens??

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 09:09:45 -0500

A Loan Contingency and a Buyer’s Rights

By Jay Romano

Does the financing contingency in a contract to buy a co-op allow the buyer to back out of the deal if the appraisal of the apartment does not come in at the contract price?

Steven Troup, a Manhattan real estate lawyer, says the standard co-op sales contract provides that if a lender’s commitment to make the loan is conditioned on obtaining an appraisal satisfactory to the lender, this is not considered a firm loan commitment until that condition is removed.

“If the appraisal eventually comes in at a number that is too low to support the amount of loan applied for,” Mr. Troup said, “the purchaser may elect to terminate the contract and receive back the down payment.”

At the same time, he said, a buyer must be mindful of the date of the mortgage contingency period in the contract. If the loan commitment is not received by the listed date, “the purchaser may terminate the contract and receive back the down payment, or ask the seller for an extension of that date,” Mr. Troup said.

If an extension of the mortgage contingency is not obtained from the seller in writing, the purchaser could be deemed to have waived the mortgage contingency and be required to close without financing and could lose the deposit.

Renter Tips: Paying the Rent in Advance in roomate situation - (only 1 paying in advance - is this acceptable?)

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 09:04:33 -0500

Paying the Rent in Advance

By Jay Romano

I am applying for a one-year lease for a three-bedroom apartment in Midtown that I will share with roommates. I would like to pay one year’s rent upfront (for my share of the apartment, not for the entire apartment). Is there an incentive for one tenant on a lease to pay one year’s rent in advance? Would I be able to use this tactic to lower the rent, waive the security deposit, or negotiate one month or more free?

“In most cases, there is no advantage for a tenant to pay a year’s rent in advance with the hope that the landlord will give concessions,” said David Ng, a Manhattan lawyer who frequently represents tenants. “And there is certainly no advantage for one of several co-tenants on a lease to pay her individual portion of one year’s rent in advance without the other co-tenants making similar payments.”

For a tenant to gain any benefits from a landlord for accelerated rent payments — other than increasing the likelihood of having the rental application approved — the tenant must obtain in writing, in advance of prepaying the rent, any concessions that the landlord is granting.

“If the rent is prepaid, some landlords may be willing to waive or reduce the security deposit,” Mr. Ng said, adding that others may waive the need for personal guarantees from creditworthy relatives.

Co-op Interviews - DELAYED Interview - what do I do???

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 08:58:35 -0500

July 31, 2009, 2:05 pm

Board Interview Is Delayed

By Jay Romano

We are trying to buy a Manhattan co-op. The board of directors has had our package for nearly two months but hasn’t yet scheduled an interview. Our apartment lease is running out and it is too late to renew it, so we have to find a new rental within the next few weeks and sign a new lease. As buyers, do we have any recourse against the board?

“The purchasers have no claim against the board,” said Howard Schechter, a Manhattan co-op lawyer. He explained that a prospective buyer and a co-op board have no legal relationship and the board owes no duty to the people it is considering.

“Even the seller, with whom the board does have a legal relationship, would be unlikely to be successful in pursuing a claim based on delay,” Mr. Schechter said, “especially a delay of only two months.”

He said that while such a delay may seem excessive from the buyer’s point of view, it may simply be a function of the approval process and the time of year.

“Boards typically review an application for completeness and financial acceptability before scheduling an interview,” Mr. Schechter said. “The financial review may take weeks to complete, especially if it is done by committee, and committee members are out of town.”

Co-op Board Members Qualifications - did not know this!! Read!

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 08:54:13 -0500

Co-op Board Qualifications

By Jay Romano

Q. I live in a co-op in Manhattan. A major shareholder, who owns several units in the building, is also on the board. Is this a conflict of interest?

A. “One of the basic rights of any shareholder of any corporation is to vote and have their voice heard,” said Andrew P. Brucker, a Manhattan co-op and condominium lawyer. “If this shareholder votes himself onto the board, he has every right to do so.”

Mr. Brucker says the state’s Business Corporation Law has only one qualification for a director: he or she must be at least 18 years old.

A co-op, however, can impose other qualifications if they are added to the bylaws. For example, Mr. Brucker said, “the shareholders can vote to add a requirement to the bylaws that a board member must be a resident of the building.”

NYT Q & A - Tenants’ Rights in a Sublease

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 08:51:35 -0500

Tenants’ Rights in a Sublease

By Jay Romano

I am subleasing an unregulated apartment on the Upper East Side. My rent is under $2,000 a month and my income far below $175,000. I am over 65. My landlord is the owner of the apartment. Do I have any rights at all as a tenant?

Sherwin Belkin, a Manhattan lawyer who represents owners, says that if the apartment is not regulated, any rights the tenant has are governed by the sublease agreement and state and city laws.

The $2,000 rent and $175,000 income relate only to the deregulation of rent-stabilized tenants and have no bearing on the rights of the letter writer. Neither does the writer’s age.

NYT Q & A - Strict Requirements and High Maintenance

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 08:48:42 -0500

Strict Requirements and High Maintenance

By Jay Romano

I am thinking of buying a reasonably priced co-op that has a relatively high maintenance fee. The financial requirements for potential buyers seem quite strict; buyers must have at least two times the purchase price and four times the maintenance fee in liquid assets. Will these requirements be a hindrance when I try to sell?

Sandor Krauss, a Manhattan co-op and condo lawyer, said that a “relatively high maintenance” charge should be scrutinized by a buyer. “The letter writer should be careful to analyze the reasons for the high maintenance and the likelihood of increases in the future,” he said.

During the precontract “due diligence” period, the buyer’s lawyer or accountant will analyze recent financial statements of the co-op and minutes of board meetings. “Due diligence may reveal helpful facts” that may assist the buyer in determining whether the low price offsets the high maintenance, he said.

Mr. Krauss added that boards considering an application had great latitude in setting levels of liquid assets that must be available. The amounts established by this board may seem high, he said, but unless the due diligence indicates they are, they shouldn’t hinder a future sale.

NYT: Q & A - Gift Taxes in Transfer of Co-op Shares - important, great info!

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 08:42:17 -0500

Gift Taxes in Transfer of Co-op Shares

By Jay Romano

Last year, my mother entered a nursing home. We have removed her name from the shares and lease of our co-op for estate reasons. Our C.P.A. now says that she should file a gift tax return since she gave her shares to me and my brother, and that we have to determine the cost of the shares when the co-op was purchased. Is the C.P.A. right?

“A transfer of stock of a cooperative corporation between family members for no consideration constitutes a gift,” said Eliot Zuckerman, a Manhattan real estate lawyer. “The amount of the gift is the fair market value of the stock as of the date of the gift,” not the purchase date.

A gift tax return is required if a gift to a particular person exceeds the annual gift tax exclusion amount, now $13,000 a year. Mr. Zuckerman said any portion of a gift over that amount also reduces the giver’s federal gift and estate tax exemption — the amount of a decedent’s estate that passes tax free to heirs. At present, up to $1 million in gifts that exceed the annual exclusions are exempt.

While the cost of the shares when they were initially bought is not relevant for gift tax purposes, that amount will be needed to determine the tax basis of the shares. In addition, Mr. Zuckerman said, the proprietary lease should be reviewed to determine if a transfer to family members requires board approval.

Men, Women Vary on Home Shopping - well, duh! but quick read for sure...

Stephanie L Davis (tAg) (The Corcoran Group) — Sun, 23 Aug 2009 08:26:18 -0500

Daily Real Estate News | August 19, 2009

Men, Women Vary on Home Shopping
When it comes to buying a home, women are in a bigger hurry, according to a national survey for Coldwell Banker Real Estate that delved into the homebuying psyche.

Coldwell Banker wanted to understand the difference between men and women in the homebuying process so it could help its practitioners do a better job of guiding first-time homebuyers who must make up their minds before the tax credit expires on Dec. 1.

Here are some key findings:

When asked how long it took before they knew their home was “right” for them, almost 70 percent of women had made up their minds the day they walked into the house vs. 62 percent of men. On the other hand, significantly more men needed two or more visits (32 percent of men vs. 23 percent of women).

55 percent of women find it more important to be closer to their extended family than to their job, compared to only 37 percent of men.

64 percent of women said that if they found the home of their dreams but had concerns about its security, they would no longer be interested. More than half of men agreed (51 percent).

When the respondents were asked how they would use an extra 12x12 room if it could be anything they wanted, men and women agreed on the top three responses: Bedroom, office/study, and family room/den.

8 percent—nearly all of which were men—said they would use the extra space for recreation/entertainment.

70 percent of couples said the responsibility for making major financial decisions--such as homebuying--are shared equally.

Source: Coldwell Banker Real Estate (08/17/2009)