Life is seldom fair. One of the more difficult aspects of life is that it only takes a small minority of irresponsible people to ruin it for the vast majority who are responsible. Owning a pet of any kind, but particularly a dog, involves a high level of personal responsibility for that pet. This is particularly true with respect to walking it regularly, cleaning up after it, training it so it doesn’t bark incessantly and so forth. A few bad owners spoil the whole bunch and these bad owners have had enough of an impact to severely limit the ability of responsible pet owners to purchase a condo and coop with their pet. To that end, I closed my previous entry on this subject by stating that when it came to purchasing a condo or coop, the pet owner was buying for their pet first and themselves second. This is not an exaggeration. And although the comment was not meant to create pessimism for the buyer, it was meant to be a reality check. Pet owners that truly want to keep their pets most certainly can. But it will involve sacrifices and as an agent, I have to be sure that the commitment to purchase a home that will accommodate the pet is truly there.
So, when you set about looking to purchase a condo or coop, we have to start with first things first. Like every other buyer, you need to get a pre-approval for a loan! This is not nosy or intrusive. For any purchase, the agent needs to know what you can truly afford. I find that I often meet a great deal of resistance on this point. Much of the resistance comes from the fact that people’s wants are generally higher than their budget. For many, this is a reckoning point. This is particularly true in an area like this where everything is hideously expensive. However, since finding a unit that will accommodate a pet (particularly a dog) is challenging enough then getting the budget right from the get-go is vital to success. Pets notwithstanding, 99% of all agents (myself included) will not go out with anyone unless they have a written pre-approval in hand.
Once the budget is set and we start looking, many pet-owners will be shocked at the limited number of units available to them. This is where flexibility is key. I’m not withholding options. There aren’t any “secret” units available. When someone gives me their criteria, I send them everything that is available. However, as Part I of this blog indicated, the choices can be very slim indeed. In order to ensure enough of a selection, the pet-owner typically has to expand their geography and be willing to compromise on their wish list. Yes, there would be more options if there was no pet. No, it doesn’t seem fair, but we have to deal with the reality we are presented with. Once again, you are buying a unit that will accommodate your pet and you - not you and your pet.
Let’s take an example: if you own an 80 lb. dog and you want a unit with a minimum of 2 BR with a limited budget, and the unit must be within ½ a mile of a specific train station, have a terrace and laundry in the unit – the chances are you are never going to find anything until you cut down on the list of wants. Expanding to another community, being willing to accept a longer commute to the train and considering a complex with a nice common laundry are compromises you may well have to make.
One of the biggest bones of contention is the number of bedrooms. I see this a lot with young people who want to jump right into a 2 BR unit. If you have a pet, this is much, much harder. Many young people seem to want to stretch for that extra bedroom. In general, when someone stretches for more space, they limit their options. Certainly, there is a pool of less expensive 2 BR units available. But a less expensive 2 BR unit that ALSO allows for a dog is like looking for a needle in a haystack and depending on the budget might well leave the buyer cash strapped. I did a brief search on the web for units available in White Plains. There are currently 59 active listings. But when you include pet-friendly that number goes down to 11. So having a dog wiped out over 80% of the options. If your top price is $260k, and you insist on a 2 BR unit, your options shrink from 6 to 3. Cut in half. And generally, a lower priced 2 BR unit is probably in need of some TLC. This is common sense. If you look at the low end of a price range, there is bound to be a “catch” and usually that catch is the condition of the unit. So not only is the buyer paying more for that bedroom, but they are also going to have to fork out considerable money in order to properly renovate the unit. So in addition to about $450/month more for the second bedroom, most buyers immediately have added renovation expenses. If you are stretching for that extra monthly fee, how are you going to renovate the unit and still have a comfort zone?
A better idea is to buy what you can afford and increase your buying options. Let’s say you buy a 1 BR unit at $190k. Within five years on a 30 year fixed loan, you will amortize about $11,000. Now, if you want to secure a bigger down payment for a 2 BR unit, you can aggressively amortize the loan. Instead of paying out $450 more a month in payments and fees for a 2 BR unit, paying out an additional $150 a month to amortize the loan will give you roughly $20,000 in equity for your next down payment over five years . Let’s say you put down 15% or $28,500, that means in a few years, with no appreciation, you will have $48,500 to put down on a bigger unit – without appreciation. Sure, its not what you dreamed about, but you lock in the tax benefits, AND you stabilize your monthly expenses because you have a fixed rate loan so any increases will be from maintenance fees and taxes. But that only represents a much smaller percentage of your monthly payment. Rents are going up at an alarming clip because of increased demand, but once you are in a fixed loan, you have stabilized your situation. So doing something like this,gets you where you want to go and allows you to keep your pet.
Finally, when you find a good unit that will work for you and your pet…you need, once again, to be realistic. Nothing is more frustrating than working for months with a client and we finally find the perfect unit – and then the buyer insists on a real low-ball offer! BAD IDEA! The market that we are in is slower than the giddy heights of 2005, but units are selling and inventories are quite low. Sellers know this and are not tolerant of low-balls. If you start out that way, you may slam the door shut forever. Once a seller is insulted with a low offer, there is a very high chance that they won’t entertain any future offers. Although all asking prices are negotiable, if you have a pet and very limited options, care must be taken to make a FAIR offer. A person with limited buying options is in no position to try to “steal” a home. These days many buyers with and without pets are overestimating their power in this market and losing homes that they really wanted by low-balling. For those without pets or other special circumstances, there is always another home to make an offer on – and hopefully, the first rejection teaches them the lesson they need to move on and get the next one. For the pet-owner, that is not necessarily the case. A fair offer is one that is in line with the comparables and was arrived at objectively. This is vitally important. Everyone comes to the table with a certain amount of wiggle room. If you don’t have much room, you are at a disadvantage. It may not be fair, but realizing that from the get-go will allow you to purchase the best unit for you and your pet at a fair and reasonable price.
The good news is that it is always possible to keep your pet. A careful well thought out purchase will put the buyer in strong position for now and in the future. Buying what you can afford offers tax benefits, the ability to build equity (even in a flat market) it stabilizes living expenses more than any rental can and sets you on the right course towards the home of your dreams.
To Search for Homes and for further information go to my website/blog with free home search at The Westchester View.
I am always happy to answer your questions and you can speak to me directly on my moble phone: 914-374-5529.
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