Interior design is highly personal - everyone has a slightly different idea of what a "beautiful" home looks like. However, when listing your home for sale, it’s important to make design choices that are as widely appealing as possible, to ensure that prospective buyers feel comfortable and at home in the space. While a major renovation for the sake of appealing to more buyers is usually not a sensible investments, small tweaks can mean the difference between multiple offers and hoping for the buyer who can see past your personal choices. When trying to connect with a larger audience, it’s best to stick with décor that is clean, modern, minimal, and cohesive. I often rely on mass-market brands like West Elm and CB2, who make a business of appealing to a wide and urban audience, for design ideas and inspiration. Here are my top five strategies for tweaking an apartment from niche to "nice" for the most people. 1. Use Cool Paint Colors: Cool tones (blues, greys, greens) create a space that feels calm and quiet. Lighter shades in these family are also the best at reflecting (thus maximizing) light. Darker shades in these tones make for interesting accent walls or a great wall to make strange nooks look purposeful. ​ 2. Furniture to Scale: Make sure your furniture is scaled to your home. This doesn't necessarily mean physically small items work better, it's all about the amount of visual space items take up relative to the amount of space. A tailored sectional is much larger than any single armchair, but an oversized, cushy armchair will dwarf most small spaces. I find this to be especially true with dining chairs. Even sleek chairs can take up visual space and appear like blocks, but sleek items, particularly those that are wire, caned, or acrylic recede from view. 3. Pinterest Worthy Vignettes Use specific furniture and accent items to highlight the best features of each room – if you have a large corner window, or a particularly beautiful kitchen island, create a vignette that will to draw people’s attention to it. My go-to vignette is a tall item (vase or candlesticks) next to a stack of design books, with an interesting object. 4. Decluttering Make sure there is “white space” in every room – clear surfaces, open space on shelves, etc. A room rarely looks good with every square inch filled. Bookshelves over-flowing with books, piles of paper, collections of random décor items – unnecessary clutter often makes your home appear overwhelming, and thus unappealing, to prospective buyers. 5. Impactful Minimal Décor: Rather than filling every inch of wall space with random art, thing about wall decor as vignettes. Whether it is an oversized painting or a cohesive gallery wall, your art work should create an impact. These small improvements can make a big difference, but there are more than just simple design and decor items that affect a home's price. To see how we value a home's physical space, read about our top factors here. Investing in physical improvements of a home can increase its sale price dramatically, but can be costly depending on the service. With the Compass Concierge Program, Compass will pay the upfront cost of select services that can increase a home's value. From deep-cleaning to cosmetic renovations, we'll elevate your home's appeal and create a tailored plan to maximize its potential on the market. When your home sells, the cost (and nothing more) will be added to the commission. This apartment was cleaned, staged, and painted with funds from Compass Concierge. These services, supplemented with decor and styling by the Isil Yildiz Team, gave this Park Slope brownstone a fresh, modern update to maximize its appeal. #FAQ #FAQSeller #BlogPosts

What will banks consider in reviewing my file? Banks will review your Credit, Income, and Assets. No one factor is determinative, rather the entire financial profile, as well as the condition of the building, is taken into account in determining whether a buyer qualifies for a mortgage and/or what type of loan program is available to him or her. Credit: It goes without saying that bankruptcy or foreclosures will make it very difficult to obtain financing. Other credit snafus will also negatively impact financing such as carrying a high percentage of debt or having a history of delinquencies. What is a good credit score is changes with the times... above 700 used to be considered excellent, but now many consider that benchmark to be 740. In any event, the importance of good or excellent credit cannot be overstated. Income: Income is the denominator that can limit the amount of financing. Banks consider an applicant's debt-to-income ratio in determining how much debt they can take on through financing. Debt-to-income ratio is the measure of total debt obligations (the monthly carrying costs of the purchase including mortgage and monthly maintenance/common charges and taxes on the property along with any other mortgages, student loans, outstanding credit card debt) divided by verifiable income. Debt is pretty easy to calculate though it varies from property to property that the buyer is considering. Verifiable income is easy if the applicant(s) have a salaried job, but can be much trickier with self-employed applicant(s). In fact, each bank might have different standards for determining income in these trickier cases, so an applicant's ratio may vary between different lenders. Different lenders and programs vary in the ratio they require: In most cases, on jumbo loans (loans over $625,500), banks will want ratio of 43% or below, but some use expanded criteria and will lend a higher amount. Loans under $625,500 can be obtained with a debt-to-income ratio of up to even 50 percent. There's no magic number, so it's important to consult with your mortgage professional when considering different properties. Assets: Most banks will want to see some post-closing reserves (mortgage + monthly carrying costs) -- this could be a year's worth, or or 2 months', or 6 months' worth. Some programs may accept retirement assets toward reserves, while other lenders may require the reserves to be liquid to qualify for their lowest rates. What does all of this mean? There are a huge number of lenders and even more loan programs out there, and even if you are not an ideal candidate, there will likely be a right program out there for you. If one factor is lacking (like income), banks will place greater emphasis on the other factors. It's all a sliding scale, and different lenders and loan programs require different benchmarks. There might even be special circumstances that would justify a loan where the lender's standard analysis would normally result in a rejection (like for example, if you held a great deal of assets in the bank or getting a co-signer). What do you need to know about your credit score? Once you've decided to buy a home, or better yet, well-before start thinking about your credit. The earlier you begin monitoring your credit, the more of a positive impact you can make. 1. Not all credit reports are created equal. Not to dissuade anyone from using any of the free credit report services online, but the best way to check your credit is to obtain a credit report from a mortgage professional. Not all reports are the same, and your score may vary among different agencies. The FICO Risk Score is most likely to be used by lenders and has the most strict criteria. Having a mortgage professional run your credit ensures not only that you are looking at the right report, but they can help you interpret the results and identify any quick fixes that may maximize your score. 2. Evaluate (and change) your spending habits. To have a good credit score, you have to take on credit. Notwithstanding delinquencies, the longer you've had credit, and the more credit, the better. A few concrete tips: Don't close out credit cards without a good reason (like avoiding an annual fee) and keep credit card balances at or below 30% of the limit. This might mean spending on less on several cards rather than carrying a large balance on a single card, even if you pay it all off each month. 3. Glitches and Fixes. Reviewing the report also provides an opportunity to correct minor glitches, like a doctor's bill that was eventually paid but was reported to agencies and never remove. Some more major issues may be rehabilitated by engaging a credit repair company, while other major issues (like bankruptcy) may haunt you for up to 10 years. A collection account, even for a very low amount, can reduce your How to maximize your credit score/worthiness? Per our expert, Zack Tolmie, Home Lending Officer at Citi Bank, here are tips on maximizing your credit score. Click here to reach Zack with any questions. The difference between a 699 and a 700 credit score could mean the difference between getting approved or denied for a mortgage, or the difference of .25% on your mortgage rate. On a $500,000 loan, that’s a difference of over $25,000 in thirty years. Credit scores are critical when it comes to qualifying and getting the best interest rate on a mortgage, so if you’re thinking about buying a home in the future, there are things you should be doing now to ensure your score is the best it can be. The first step is obtaining your free credit report at www.annualcreditreport.com. Do not worry about or pay for your credit score because the scores available to consumers are completely different than the scores that lenders look at, so the score you see on a consumer report has no value to you or a bank. You can also ask your mortgage banker to pull your credit report. He can pull your report for free and let you know the exact score that lenders would see. You should go through the information in the report and make sure that it does not include any credit accounts that don’t belong to you (identity theft). If there are, call the credit reporting agencies to report this identity theft and have them remove the fraudulent reporting. Also identify all creditors to whom you owe money. Long-forgotten and outstanding medical bills, parking tickets, or even overdue library late-fees can be sent to collection agencies and reported to your credit report, and can drop your score by upwards of 100 points. Your report will show if the collection account has been paid or not, will tell you which company now owns the debt, and how to contact them. However, once it is on your report, it has done its damage. Paying off the debt will not improve your credit score. What CAN affect the score, though, is if you get it removed. Sometimes, collection agencies will agree to remove the record of your collection if you pay the balance in full (called “pay for delete”). Be sure to get this promise in writing. Whatever you do, DO NOT settle the account for less than is due. This will be an additional tumble to your score. If the company will not remove the record from your report, you may want to contact a credit repair company. These services are expensive, but may be worth it if it can lower your interest rate. Ask your real estate agent or mortgage banker for a recommendation of someone they trust. Once you’ve fixed any past blunders or mistakes, focus on your account balances. Your debt-utilization-ratio is the percentage of how much credit you use compared to how much you have available to you. To maximize your credit score, you should be using 10% or less of your available credit. This means that if you have a $10,000 credit card limit, you should never have a balance of more than $1,000 on your card. If you have some credit cards that you do not use, do not close them. These unused cards will help offset some of your higher utilized credit cards. If you’re worried you are using too much of available balance, asking for an increase to your credit line may increase your credit score in the long run. However, opening new accounts will hurt your score in the short-term. Do not apply for any credit cards, line increases, personal loans, or car loans in the three-month period leading up to a mortgage transaction. Obtaining new debt, and even applying for new debt, will hurt your score temporarily. The credit score algorithm takes into consideration that borrowers will call several banks when shopping for a mortgage rate, so you can feel free to call as many banks as you’d like. However, keep these inquiries to a period of a few weeks. Do not call Bank A in July, Bank B in September, and then Bank C in November. The final determinant of your credit score is the most obvious, and it has a bigger effect on your score than anything else: pay your bills on time. It accounts for 35% of your score. Set-up automatic bill payments online if you’re the type to forget to make payments. Neither the credit reporting model nor banks care that you have a bank account filled with money if you can’t move some of that money once a month to pay your bills. Pay credit card bills once a week if you have to. It will make sure you’re never late, and it will also keep your debt-utilization-ratio low. Credit scores can be confusing, but in the end, they are intuitive. Keep track of your debt. Don’t max out your debt. Don’t apply for too much debt. Pay your debt. Creditors update their reports to credit reporting agencies once a month, so making any of these improvements might only take a few weeks to improve your score. Common Mortgage Misconceptions Debunked by our Mortgage Expert, Zack Tolmie 1) I have a lot of student debt. That means I can't qualify for a mortgage, right? Interestingly, banks aren’t concerned about the amount of debt you have. We care instead about your monthly debt payments. As long as you can afford to make your mortgage payment and your student loan payments, the amount of your student debt shouldn’t impact your ability to qualify. 2) I read that the Fed just raised/lowered rates, this means that mortgage rates are going to go up/down, right? Not necessarily. The Fed forecasts well in advance when they expect to change rates. Banks proactively update their rates based on these forecasts. By the time that the Fed finally makes the change, mortgage rates have already been updated well in advance. During the Fed rate decrease/increase announcement, banks are already thinking ahead to the next anticipated rate change by the Fed. 3) I heard that the housing crash in 2008 was because lots of people did adjustable rate and interest-only loans. These are never a good idea or responsible choice, so I should not consider them, right? An adjustable rate or an interest-only loan might be worth considering if you know you will not own the property for a long time, or if you know that you’ll pay off the mortgage very quickly. These kinds of loans have lower monthly payments for the first 5-10 years. After that, the payments could increase substantially. Prior to 2008, borrowers weren’t always aware that payments could jump. It ended in disaster when homeowner’s couldn’t afford their new payment. If you know you’ll be long gone by the time the payment adjusts, you might want to discuss one of these options. But if you think there is a good chance that you’ll have the mortgage for a long time, a fixed rate is definitely the safest bet. 4) I shouldn't rate shop or consult with multiple lenders (or go to a lender before I'm ready) because when they pull my credit, it will lower my credit score. I work for a bank, and I still called a dozen banks before locking my rate for my mortgage. I wanted the lowest rate possible. Having a mortgage lender check your credit has a negligible effect on your credit score (it’s having multiple banks pull your credit for a credit card application that really hurts your score). If you call several mortgage lenders within a short period of time and have them pull your credit, it will only affect your credit score as if one single lender made a credit inquiry. So, get your rate shopping done in the same calendar month. But don’t avoid shopping for the best rate. 5) Do most loans have a prepayment penalty? What happens if I prepay part of my principal at some point? No, prepayment penalties are incredibly rare. If you make a prepayment (for most loans), your mortgage payment won’t go down. Instead, you’ll pay off the loan faster and shorten the term of the loan. For example, instead of having a payment of $2,000/month for 30 years, you’ll have the same $2,000/month payment for just 20 years. By prepaying, more of your payment each month will be applied toward lowering your principal balance, and less will be spent on interest. You save in time and interest. Some banks give you an additional option to recast your loan. By recasting, your term stays the same, but your payment goes down. So instead of having the payment of $2,000 for 30 years, you’d have a payment of $1,500 for 30 years. In recasting, you save in cash flow and interest. 6) I already identified my property, put in an application, and got a loan commitment. But my commitment says it expires on X date. What happens if I can't close by then? Nothing to stress about here. Your paystubs, bank statements, and credit report have a “shelf life” of about four months. After four months, you’ll need to update your paystubs or bank statements, or have your credit pulled again. Once we’ve updated those items, we can update the commitment letter. Zack Tolmie is a home lending officer at CitiBank, previously vice president of mortgage lending at Guaranteed Rate. Thank you Zack for answering our questions this week! How can I make sure my mortgage is approved? 1. Keep your finances SIMPLE for 2-3 months prior to applying This seems obvious but might be more complicated than you think. When you first apply, the bank will look at you last 2-3 months of statements. Any large withdrawals, deposits, or “interesting” activity is cause for concern on their part – even if you just loaned a friend money, or went on an extravagant vacation. Any unusual spending patterns, no matter how explainable, can complicate the process. Other things, like applying for a new credit card or having your credit run, will affect your credit score for around 6 months. 2. Minimize your liabilities Did you cosign a loan for a friend or relative? Are you still on your old lease a year after moving in with your significant other because it was easier to just let your roommates cousin move in unofficially and sublet your room? Did you apply for a new credit card and buy all your Christmas gifts on Amazon to get frequent flier miles for that awesome trip to Aruba in January, but plan to pay it all off next month? Is your name still on that joint credit account with your sister that your parents set up when you were in college, where she has now racked up to $6,000 of debt? These things may sound trivial, and are not expenses you actually expect to have to pay, but in the calculating eyes of an underwriter, any debts, notes, or accounts you have a legal obligation to, whether or not you are the one paying them in practice, will be considered a liability and can ultimately bring down the size of loan you can qualify for. This includes and leases, loans, credit cards, and any other accounts payable that your name is attached to. 3. Be BORING during underwriting Keep your finances as boring and steady as possible between the time you apply for a mortgage and the time you close on the loan. That sounds simple in theory, but it's sometimes difficult in practice. However, the reason behind it is simple: when you apply for the mortgage, the lender looks at your credit report and your credit score. Then, shortly before closing, the lender will survey your credit again. If there's a substantial change of any kind, the lender might have to delay your mortgage closing. Which brings us to #4… 4. Don’t apply for a new credit card or loan Mortgage lenders always caution mortgage applicants to avoid getting new credit cards or auto loans while home loans are in underwriting. Remember that your credit debt (liabilities), not just your credit score, are used to determine what monthly loan payments you are able to qualify for – the more debt you have, the higher your expected monthly expenses become. Assume that everything you do will be examined up until the minute of underwriting and spend/behave accordingly. 5. Don’t change jobs Getting a new job, or a new position with a different pay structure at your same employer, may jeopardize your mortgage. This is especially the case where your income from salary is decreased, even if you ultimately expect a bigger pay day with commission or bonuses. Finally, a disclaimer: I'm no mortgage expert, but I know a few. An experienced mortgage banker is the best (really, only) person to advise you properly on your specific financing options, and they should be on speed dial as soon as you decide to you want to buy a home. Once they review your mortgage application, run your credit, and verify the information via the underlying financial documents, such as tax returns, paystubs, bank/brokerage/retirement plan statements, canceled rent checks, any other proof of assets or explanation for recent large deposits, they will be able to advise you on how to finance your home. #FAQ #FAQBuyer

How much should I put down? One of the questions we are asked about most often is about the size of the downpayment. In most of the country, this answer is determined by credit and income factors. Lenders offer pre-loans that require anywhere from 5-20% downpayment - so in theory many first time home buyers would be financially qualified to buy a home with as little as 5% down. However, the New York housing market it unique, and a number of factors drive us to advise almost all buyers to consider 20% downpayment a minimum for purchasing a home in NYC. First, a majority of the apartment inventory in New York City (roughly 70%), are co-ops. Co-ops are unique to New York, and most require a minimum downpayment of at least 20% down, with some requiring higher percentages, with 25% most common, and even higher amounts more rare. For more information on what a coop is and other financial requirements they might impose, see our earlier post here. Condos typically allow buyer to put as little as 10%, but in reality, where demand for a particular unit is high, we find that 10% is simply not competitive, even if those prospective buyers are offering a higher purchase price. A higher downpayment gives the seller more assurance that financing is not going to be an issue, either due to the borrower's qualifications or factors related to the building or specific unit. Thus, especially at lower price points (under $1.5M), we advise our buyers to be prepared to put 20% down, even if the building permits greater financing. Also note that in addition to downpayment, buyers should be prepared to have the liquidity for closing costs. We've outlined these costs here, but note that they are much higher when a buyer is financing a condo than a coop. That said, coops will have reserves requirements, so in either case, a buyer must be in a position to have additional cash beyond the downpayment to complete the purchase. The structure of your offer, not just the number, is important when buying a home in New York City. An experienced and knowledgable buyer's agent will advise you on what range of purchase prices you are most qualified for and how you can structure your offer to be the most competitive. Do I need to be all-cash to be competitive? In the last few years, we've all heard the news: All-cash buyers are flooding the market; unless you can buy outright, stay out of the market. Well, there was some truth to this until recently, but only really if you were looking at properties valued over $2 million. Even at the peak of the all-cash-buyer phase, most purchases still involved financing. So what if you are one of the majority that needs financing... well the first step is contacting a mortgage professional and getting a preapproval letter. In order to make an offer where some part of the purchase price will be financed, a buyer will have to submit a preapproval letter. It could take a few days to gather the documents necessary to present to a bank, and the bank will have to review and verify the buyer's financial profile before issuing such a letter. Thus it is important to have started the process of obtaining a preapproval letter with a mortgage professional very early in the process. A preapproval letter states that the lender's representative has reviewed the financials of the buyer/borrower, and that the potential borrower has met all conditions for lending up to X amount. In reaching this determination, the potential borrower has to fill out lengthy forms, submit to a credit check, and provide documentation of assets, salary, debts, etc. Gone are the days (at least for now) of the pre-meltdown "no-doc" loans with 2% down. The relationship with the mortgage professional is ongoing. The initial prequalification will state some approved amount. But what if the potential borrower/buyer sees a perfect property and wants to put an offer in that's higher than the initial preapproval amount? Well, based on certain apartment-specific factors (like if there is unusually low monthly maintenance), the pre-approval could be increased, and a subsequent letter issued. Similarly, if the potential borrower/buyer wants to place a bid that is significantly lower than the preapproval amount, a new letter for a lower approval amount might be better for negotiations so as not to tip off the seller that the offer could be increased. I've been using the term mortgage professionals because the relationship could be with a banker, a broker, or a broker/banker. The mortgage professsionals at major banks are mortgage bankers. They will approve the loan based on their bank's criteria and the bank will fund the loan. A broker will preapprove the individual based on their creditworthiness and later find an appropriate lender once a specific property is identified. A broker/banker can do both: They can tap into banks, other lenders, and could even have their own bank fund the loan. Depending on your circumstances, it might be appropriate to work with one of these individuals over the others. Should I make a lowball offer? As an agent, I’m often asked, how low can I go? Especially where buyers smell negotiability, it may be tempting to make a lowball offer and just see what happens. The truth is lowball offers have a tendency to alienate sellers and can preclude negotiations, rather than encourage a dialogue. A low (but not lowball) offer may be appropriate in some cases, depending on current market conditions, the type of property, and your relative strength as a buyer, and other factors. However, a perceived lowball will almost always be counterproductive. In a normal market, I advise clients to stick within 7% of the asking price if we believe there is negotiability. Any lower than that and the sellers would have lowered the price themselves. Even if a property is truly overpriced, an offer that is perceived as a lowball -- no matter how fair or appropriate under the circumstances -- is unlikely to be the reason why a seller finally comes to their senses. In those cases, it’s usually better to make no offer on the property unless and until there’s a price cut. Of course, your strength as a buyer may have some effect on your ability to negotiate. An all-cash buyer may have a freer hand to make aggressive offers without alienating sellers, particularly in a slower market. Being all-cash is especially advantageous when a property is difficult (or even impossible) to finance -- but then again, most such properties are already priced to reflect these challenges. Generally speaking, the perceived advantages of being all-cash are frequently overblown or exaggerated. For example, in the more common scenario of a financeable property, the main advantage an all-cash buyer has over a financially qualified borrower is an earlier closing date. Unlike resale properties, luxury new developments may offer greater opportunity for price negotiation. Depending on the sheer number of similar new development units that hit the market at once, what percent of units are currently in contract, and and how aspirational the sponsor was in pricing those units, there may be significant (20-30%) room to negotiate below the asking price. Sponsors are also unlikely to be personally offended by low offers, compared to a seller who is more emotionally attached to their home they are selling. As always, if you’re looking to buy a property and want to know more about how much you should offer and any other steps in the process, feel free to reach out. #FAQ #FAQBuyer

One of the first questions we ask prospective buyers is what type of property they’re interested in buying. Most of the time, this involves a discussion of condos vs. coops, and determining if one or both of these types of apartments would suit them. However, for some folks — particularly clients looking in Brooklyn, with a budget between roughly $800,000-$2,500,000 and an interest in exploring new neighborhoods — a multifamily home can be a financial boon. Here’s why. More House for Less Money Each Month When you own a multifamily home, the rental income offsets your total monthly carrying costs — so you can essentially get more house for less money each month. For example, $2,500 in rental income is equal to mortgage payments on a $500,000 loan. Not only can a multifamily owner thus afford more house due the rental income, the monthly carrying costs are almost always less since there are no building common charges which are often more than the ongoing expenses relating to maintaining the building. This means you could live in a large triplex apartment with a yard for less than a cheaper condo or coop in a higher-priced neighborhood. Higher Value = More Appreciation Appreciation on a $2 million property versus appreciation on a $1.5 million property will be more in absolute terms at the same rate of appreciation. In reality, the appreciation rates are rarely the same. These investments can carry more risk, but in recent years we have seen them appreciate far more rapidly than properties in neighborhoods with historically higher prices. Long-Term Investment Potential Like a condo, a multifamily owner can keep the property long after they decide not to live there in hopes of maximizing appreciation and generating income. Unlike a condo, however, a multifamily home will usually yield a much higher net annual income (CAP rate) than a comparably-valued condo. While the multifamily can be a more hands-on investment, we almost always see that the net monthly costs are lower and the combined rent combined rent on two apartments is higher. If you’ve decided to explore multifamily homes, there are many considerations that will shape your search. For example: “Out of Pocket” and The 5 Major Carrying Costs First, buyers need to determine their ideal monthly “out of pocket” cost. This will help your agent determine which homes will work best for you based on their potential rental income and approximate carrying costs. Carrying costs can vary greatly depending on the type, size, and configuration of the home. There are five major expenses to keep in mind: 1) property tax, 2) mortgage payment, 3) homeowners insurance, 4) water & sewer costs, and 5) heating costs. Some of these are easier to estimate than others, but your real estate agent can help you with this. “Rentability” When looking at a home with multiple units, it’s important to consider the size and type of rental units it contains. Depending on the neighborhood, some rental products (1 vs. 2 vs. 3 beds) may be far more desirable -- the configuration of the rental units (or the ability to easily reconfigure them to a more desirable layout) can significantly impact your future rental income. Certificate of Occupancy In NYC, it’s also important to know a house’s legal CO (certificate of occupancy). The CO determines how the property can be used - townhouse classifications include single, 2, 3, and 4 family, as well as single-room occupancy (SRO). These classifications determine how it is taxed, financed, and insured. Failure to comply with a home’s CO usually results in violations and fines from the city -- and a house with these sorts of outstanding fines and/or violations will be hard to finance. Inspection One of the major differences when buying a house, as opposed to an apartment, is that all of the internal systems and structures will belong to, and will be managed by, YOU - not a co-op or condo board or management company. Having an experienced inspector do a thorough examination of your home before you sign the contract of sale is critical when purchasing a townhouse. Your inspector will examine the entire structure and should point out any issues or damages. They will also review the internal systems in place (heating, cooling, electric, plumbing) and can point out any immediate repairs that need to be made, as well as explain ongoing maintenance. If you’re curious about a multifamily home and would like to learn more to see if it’s the right option for you, please don’t hesitate to reach out! Also check out our neighborhood spotlight of BedStuy, which has a large inventory of multifamily homes. #BlogPosts

Today there is a wealth of real estate information online and many intelligent and capable New Yorkers have begun to wonder why working with an agent is still beneficial. Given that real estate agents still thrive, there's got to be some reason they are useful to prospective buyers, right? An agent... 1) Saves you time. (And true as ever, time is money) 2) Makes you a more informed buyer which makes you competitive in a constantly changing market. 3) Helps you navigate through the complicated process of acquiring a home in New York. 4) Finds the right mortgage agent to arrange the necessary financing. 5) Puts together a strong offer package to be competitive in the market. 6) Negotiates the price and terms of the sale more effectively via collegiality shared among agents. 7) Finds the right attorney to represent you. 8) Assembles the best possible board package to qualify you for acceptance, and takes the load off of the process. 9) Coaches you for the Board interview. 10) Prepares you for your closing. More Common Questions About Agent Representation: Should you have one agent from each real state company to have access to all properties? What about broker exclusives? An exclusive listing means that the seller of the property is represented exclusively by a selling agent, not that buyers represented by other brokers cannot view or purchase it. Exclusive listings are co-broked, you will not be missing out on any other agent’s exclusives by working with a Compass agent. What about Sunday Open Houses? A great way to see many properties in one day is by going to Sunday open houses. If your agent is unable to go with you, ask him or her to register you for the open houses you wish to attend. When you sign in at each place, be sure to put down your name, your agent’s name and your agent’s phone number. This way you will be represented if you want to make an offer on any of the properties you have seen. Do I have to pay an agent fee? No. Sales commissions are paid by the seller; not the buyer. When a property is co-broked, the commission is shared between the seller and buyer’s brokers. The seller pays the same commission whether there are one or two agents involved, so there’s no out-of-pocket expense or advantage to being unrepresented as a buyer. #FAQ #FAQFindingaHome

The Isil Yildiz Team staged this listing for a studio which received an offer after the very first open house. For larger projects, we have a roster of top stagers that we can help you engage. A few months ago, we sent out a newsletter with design tips — how to spruce up your apartment and prepare it for sale. However, one thing we didn’t cover was what to do when you have an empty apartment. Empty apartments, no matter how visually appealing, force potential buyers to use their imagination to come to a reasoned conclusion, rather than just react with emotion at the onset. While most of us think we are logical beings, the truth is emotion plays a huge role in many of the decisions we make, especially with something as personal as buying a home. Logic can re-affirm these emotional reactions, and presenting a beautiful “home” rather than an empty space can be a powerful marketing tool in selling a home. For empty apartments, this can mean full-scale (placement of actual furniture and decor) or virtual (digitally added) staging. Full-scale staging can be expensive and is usually reserved for larger, more expensive properties where the return on investment makes sense. For example, a townhouse or 3-bedroom apartment may cost $15-$30K to stage for the duration of the listing, but this expense can be more than justified if it shaves a few months off the listing time or results in even a 2% higher price. For smaller apartments, even a minimal investment in staging can help prospective buyers get a better sense of scale since people tend to underestimate the size of an empty apartment. I’ve seen many people point to a 10+ foot wall and claim their couch wouldn’t fit, when in reality, it would, with room to spare. In my experience, different stagers can produce drastically different results, and some agents are able to do a spectacular job on their own or can recommend boutique stagers or designers to create a truly unique and stunning apartment. I find that the larger, more commonly-used staging companies in the market produce results that look a little “cookie-cutter” (think the items the Ramada Inn got rid of during their latest renovation). With effective and high level virtual staging, the Isil Yildiz Team difference captures what made this property unique, and helps bring the empty space to light. The listing sold at-ask with an offer after the first open house. A more cost-effective option, and one we employ for many apartments and rentals, is virtual staging. Virtual staging cuts out the cost and hassle of full-scale staging by using advanced software to place items into the space digitally. Want an Eames chair in the living room and an antique mirror in the bathroom? No problem. Virtual staging can certainly transform a space, but again, there are huge differences between the good and bad. Bad virtual staging is quite obvious — e.g., no shadows created by the furniture — and looks like stickers on an image. Good virtual stagers pay attention to the smallest details; they understand the angles created by light and can simulate creases to drape blankets and linens realistically. While it is not quite the same as being in a space that is actually decorated to the nines, the first impression of the property — viewing the listing online — gives the buyer a glimpse into its potential, provides a sense of scale, and captures the imagination. #FAQSeller

With the holiday season upon us, we’ve all been thinking about our wishlists. This time of year means putting together a list of things we’ve been pining after, whether we actually need them or not. While most items on your wishlist fill a specific want or need, a home has to balance several (often competing or conflicting) wants and most of us can’t have everything we want, especially in a market like NYC. Coming up with a wishlist for a home is hard enough, but it can be particularly tricky for those who are not purchasing alone, and it’s always important to get on the same page about the basics before beginning your search. Budget Budget is not really a wishlist item. It is the elephant in the room affecting the feasibility of your wishlist items or how you might need to compromise among different wishlist items. The budget question is much more involved than simply deciding how much you want to spend. Unlike a new coat or pair of shoes, a home’s purchase price is usually paid off over a period of many years and there are ongoing expenses that have little to do with the purchase price. The purchase price only tells part of the story and must be weighed against other factors like monthly maintenance costs and how much you might want to spend on renovations. Budget must take into account your liquidity and ongoing obligations, as well as your comfort level in making the investment. Location versus Size If you have a defined budget, location versus size is a hugely important consideration. Sometimes this is a sliding scale (a slightly larger one bed in one neighborhood versus a slightly smaller one in another) or it may be more drastic where the price of a studio in one neighborhood may get you a single-family house in another. If there is a real need to be in a certain area or have a certain size home, this may significantly narrow your choices. Even then, I always ask buyers why they are drawn to a certain neighborhood. There may be a neighborhood you never heard of that has the same qualities at a price point better aligned with your budget. Commute Commute is one of the biggest factors that can affect your quality of life on a daily basis, so it can be a deal breaker for some and rule out certain areas. Especially if you are sharing your home, you should consider each party’s commute and try to find an optimal location. However, this may not always be necessary. If, for example, one of you works from home, you can focus on the preferences of the commuter. Amenities By definition people like amenities, but you can’t always get what you want. For example, many of our buyers in Brooklyn want the aesthetic of a brownstone, but that usually means an elevator or doorman won’t in the cards. With highly-amenitized buildings (e.g. those offering gyms, playrooms, wine cellars, pools …), remember there is a price for these luxuries, which means higher common charges. It’s important to consider whether these amenities would be nice to have or are really worth paying for now and in the future. You can always cancel a gym membership, but common charges are not optional. Renovations Some people are excited by the prospect of renovations while others sprint the other way. You should get on the same page about your appetite for a renovation and educate yourself about the realistic costs. If you want to sprint the other way and purchase something that is brand new or already renovated, it’s important to evaluate the home for the quality of the work done, how it will stand the test of time (beware of passing trends), and how well it fits your lifestyle. While these may seem like obvious considerations, many buyers do not think about them until they are getting deep into the search. If you don’t have all the answers from the get-go, fear not. Some answers will crystallize as you explore the spaces. I have had many buyers say they are “open to renovating” only to discover that the apartments they end up considering all have brand-new finishes. The wishlist will evolve, so it’s critical to have open dialogue with everyone involved throughout the process. #BlogPosts

I’ve been in real estate for about 6 years and recently I’ve been seeing some familiar faces. Some of my earliest clients have outgrown their first homes and have come to me for help in making the move to a second home. The question becomes how to sequence the transactions with minimal inconvenience. Financial circumstances will determine which of the three options — buy first, then sell; buy and sell simultaneously; or sell first, rent, and then buy — is the right way to go for a given client. Buying first and then selling is certainly the most ideal situation — there is no timing pressure and just a single move to coordinate. However, this is also the most difficult financially as most people are unable to cover the downpayment and monthly expenses of their new home while continuing to carry the old. This is particularly true if the second home is going to be a co-op since co-ops require prospective buyers to meet certain debt-to-income requirements which would almost certainly be based on the carrying costs of both apartments. So while buying first and then selling is clearly the simplest option, it's just not feasible for many folks. A second option is to buy and sell simultaneously. If it's too expensive to carry both homes at once, you could - theoretically - close on the sale of your current home and then, minutes or hours later, use the sale proceeds to close on your new home. In reality, closing dates are very difficult to line up, and the proceeds may need to be liquidated to meet other approvals along the path to purchasing the new home (such as for clearance on the loan or approval by a co-op board), so there will usually be some gap between the sale and the purchase. However, since this period is limited and there is reasonable certainty about how long such housing is needed, many inconveniences related to the move can be avoided without great expense. The downside with attempting to sell and buy simultaneously (of course assuming a proper home is found during the pendency of the sale) is that the offer on the purchase may be much less competitive if there is any doubt about whether the sale on the existing property will go through in time. If a buyer lacks the funds to cover the new downpayment without the proceeds from the sale, a “sell first” contingency could be included in the offer, which would allow the buyer to back out of the purchase (and get the 10% deposit back) if the sale falls through or is delayed. A “sell first" contingency significantly weakens an offer, however, so it is generally reserved for purchases where there is little to no competition from other prospective buyers or the buyer is willing to substantially overpay. It can be possible to avoid a “sell first” contingency and still have minimal risk depending on the timing; if there are no conditions left (board approval, bank commitment letter, etc.) for the closing on the sale, it may be worth the risk to move forward without a contingency. The most common option is to sell first, rent for a set period of time (usually we recommend a 6-12 month lease term), and then buy. This way the proceeds from the sale are liquid and can be used without any financial constraints or contingencies on the next purchase. Of course this option requires multiple moves, and there is also the unavoidable uncertainty about how much time to commit to the rental. While this can be a hassle, selling first provides the most flexibility for the next purchase by making the seller-turned-buyer more financially qualified (i.e. competitive) and by removing any pressure on having to find the perfect "forever" home before a deadline. Clearly there are numerous routes available when transitioning between a first and a second home, and the right answer will depend on individual, personal, and financial circumstances. If you currently own and are thinking about making the move to a new home, I would more than happy to speak with you about your options. Together we can figure out the best way to make your transition as seamless as possible. #FAQSeller

Whenever I meet with prospective sellers, they’re always anxious to get to the big question: “So what do you think we can get?” While location and square footage are obvious factors, similarly-sized apartments in the same area can sell for vastly different prices, and it often comes down to a handful of both physical and intangible factors. Take a look at the top five physical attributes that affect the value of a property: Part 1: The Physical Space 1.) Layout Almost as important as overall square footage is how that square footage is distributed within an apartment. Important layout factors that can add or detract from a home’s value include long hallways that eat up space but have no real utility, the number and usability of bedrooms, windows or lack thereof (think lofts that technically have no windows), the ability to convert to higher usage level (i.e. add additional bedrooms). 2.) Windows, Walls, & Floors No, we’re not talking about the actual windows and floors, but rather views, exposures, light, and ceiling height which affect the overall feel and, therefore, desirability of an apartment. While there is no precise formula, again, it comes down to nuance. Whether an apartment is on the 5th or 6th floor may not matter much, unless the 6th floor clears a neighboring building and has wide open views. The number of exposures is a related but distinct consideration, as multiple exposures usually means more flexibility in layout, greater light, and can make up for challenged views from some rooms. Another major consideration is ceiling height, which can change the entire feel of an apartment, and make up - to some extent - for size/layout challenges. 3.) Condition Renovations work a little differently in NYC than on TV shows like “Love it or List it” where $20,000 worth of work adds $35,000 in value to the home (not to mention what $20,000 gets you in NYC...). Renovation value is based more on overall condition than specific finishes or features — i.e. what matters most is whether a home is in mint, good, fair or poor (think estate) condition. That said, very specific finishes or style of renovation, even if costly or recently done, will not add the same value as one that appeals to a broad audience. If a property needs extensive renovation it can still benefit from spiffing up before listing. Even buyers looking for a “project” (like our recent sale in Chelsea) may have trouble seeing the potential of a space that is cluttered, dingy, or dirty. A thorough cleaning, paint job, and some new light fixtures can make a huge difference, not necessarily in value, but in saleability. For our tips on small improvements that can make a big impact, see our previous post here. 4.) Outdoor Space Not all outdoor space is created equal. A balcony is worth less than a terrace, deck, or yard. Access is also important. A box staircase inside an apartment leading to a roof deck or double doors that open directly from the living room onto an expansive terrace are going to be worth far more than a steep spiral staircase or when access is via a common staircase, elevator, or a bedroom. Also, marginal differences in size of outdoor space matter less than interior square footage; for example, a home with a 1000 sf terrace versus a 1200 square foot terrace is unlikely to command a materially higher price. 5.) Building Age & Period Details Everyone knows that pre-war charm sells — high ceilings, original woodwork, crown mouldings, wood burning fireplaces are all at the top of many buyers lists — and, there are only so many pre-war buildings. However, not all buyers are in love with pre-war details. Some prefer floor-to-ceiling windows, brand new finishes, high-end amenities, and hi-tech offerings that are typically only available in new buildings. Part 2: Beyond The Physical Intangible factors can have a dramatic impact on home values. Here are five additional factors that can increase or impair the resale value of NYC apartments: 1.) Monthlies There is a broad range for what is considered normal or “acceptable” for the monthly carrying cost on an apartment (common charges, taxes, and/or maintenance). A monthly that is above or below the “acceptable” range can have a massive effect on sale price. Not surprisingly, apartments with very low monthlies generally sell at higher values and are more resilient when market conditions turn sour. By contrast, apartments with very high monthlies -- or a track record of high increases in monthlies -- will often languish on the market before selling at a steep discount compared to similar apartments with more favorable monthlies. Buyers tend to be highly sensitive to monthly carrying costs, and for good reason: Since most buyers finance the purchase price over 30 years, incremental increases in price have little effect on their bottom line. However, monthly carrying costs are felt directly by buyers, and for the length of ownership. (Ex. An extra $500 per month in carrying costs equates to the additional mortgage payments on a property that is priced about $140,000 more.) 2.) Required Down Payment Amount A typical down payment for NYC co-ops is 20-25% of the purchase price, but it is not unheard of for some buildings to require a 40-60% down payment. A high minimum down payment will reduce the pool of potential purchasers and might negatively affect sale value, especially in areas where a higher minimum is less common. It could also prolong the amount of time an apartment sits on the market, exposing the seller to the risk that the market could worsen in the meantime. On the flip side, some buildings have no down payment requirements at all. But in those cases the building’s financial condition may make it impossible or difficult to finance. When pricing such units, the lack of available financing may impact the price by 10-20% which could be a great opportunity for cash buyers who could resell later for great upside when the building’s financial condition has improved. 3.) Service Level Amenities don't just mean high-end features like a roof deck, pool, or fancy new gym -- equally important are things like doorman service, a live-in super, elevators, a laundry room, storage bins, bike storage, etc. There are certain kinds of amenities, especially elevators and laundry, that matter a great deal to most buyers, and therefore will affect price. While inventory is different in every neighborhood - for example, most buyers looking in Park Slope are not expecting an elevator - keep in mind what the building offers compared to others in the area. If the building is in a neighborhood made up predominantly of doorman/elevator buildings, the absence of these amenities will probably deter some buyers, and ultimately lower demand when it comes time to sell. 4.) Building Policies Of course, every building is going to have its own policies or rules. But if a building’s policies are especially restrictive or severe, potential buyers may be deterred. For example, restrictions on subletting are quite common, but some co-ops prohibit it completely which can limit the market and reduce value. While many co-op buyers do not go into a purchase with the intent of subletting their apartment, they may feel more comfortable with their purchase if the building permits some subletting in case their circumstances change. Another area of concern for many buyers is a building’s policies on pets. A strict “no pets” policy might deter even a buyer without a pet since the policy will limit the market for resale since it means any potential buyer is committed to never having a pet. 5.) Building's Financial Health Buildings with a history of hefty assessments, or sudden large increases in monthly charges, will usually be a red flag to prospective buyers, as they can indicate disorganization or poor budgeting on the part of the management company or Board. A building’s financial health could be indicative of whether or not a buyer can afford the unit in the long term, and is an important factor for any savvy buyer. Whether you live in your home for 5 or 35 years, these considerations should factor into your bottom line both in terms of your monthly outlay and what to expect when it comes time for resale. Home values depend on much more than what meets the eye, so it’s important to have a complete picture before committing to such a significant investment.

"Going green" used to mean foregoing luxuries, but today's green technologies make it easier than ever for city dwellers to minimize their environmental impact and even have a net positive effect on their surroundings. In fact, green features are becoming THE new hot amenity. Thanks to a city-sponsored green building initiative and changes to building code that require new and existing buildings to incorporate green technology, New York City boasts more than 519 million square feet of green building space, and currently ranks higher than any other US city in reducing energy usage and increasing efficiency through the LEED certification program. Green features can be found everywhere in New York City, from low-income housing to the city’s most iconic structures (like the Empire State Building) which are helping to substantially reduce carbon emissions. But in new construction, the possibilities are almost limitless. Here are some of the most innovative uses of green technology in new high-end residential and office buildings: - 570 Broome Street’s facade is coated with a spray-on water-based solution called Pureti that provides the building with the purifying power of 500 trees—the equivalent of taking 2,000 cars off the road for a year. Pureti breaks down contaminants clogging Manhattan’s air via a photocatalytic process that transforms polluting particles into oxidizing agents. They’re then released into the atmosphere as harmless minerals. This process happens incredibly quickly, so that the surface is perpetually self-cleaning, minimizing operational costs for the building. - 200 East 21st Street may seem indulgent, but many of the building's most luxurious features are designed with sustainability in mind, and it is targeting LEED Gold Certification. It incorporates LED lighting, wind-generated electricity, and state-of-the-art energy systems and equipment wherever possible. A solar-powered domestic water production system provides 60% of the building’s hot water. The building’s double-paned, oversized windows let in natural light while reducing electricity use, noise pollution, and heat gain, and all units feature energy-efficient appliances, responsibly-sourced finishes, and water-conserving fixtures. - One Bryant Park, a/k/a The Bank of America Tower, was the first commercial high-rise in the United States to earn LEED Platinum Certification, and ranks among the most sustainable skyscrapers in the world. The building’s advanced technologies include a clean-burning, on-site, 5.0 MW cogeneration plant, which provides approximately 65% of the building’s annual electricity requirements and lowers daytime peak demand by 30%. A thermal ice storage system further helps reduce peak load on the city’s over-taxed electrical grid by producing ice at night, which is then melted during the day to provide cooling. Rain and snow that fall on the site are captured and re-used as gray water to flush toilets and supply the cooling towers. These strategies, along with low-flow fixtures, save approximately 7.7 million gallons of potable water per year. Other features include rooftop gardens that utilize compost produced in the tenant cafeteria and a high-tech air quality system that pumps fresh air throughout the building. Mere mortals can go green too -- switch to energy efficient lightbulbs, use your dishwasher rather than hand-washing, try thermal shades, skip bottled water and opt for our delicious NYC tap. #BlogPosts

2015 wrapped up with a flurry of activity for my buyers, in part due to friendlier pricing and a motivation to secure financing before the Fed raised rates. Properties that were priced correctly sold briskly, and over-priced properties saw swifter price adjustments and drew negotiations. For buyers, this meant a more rational marketplace, and for sellers, it meant adjusting to a more rational marketplace. As for interest rates, last week the Fed finally announced that it was raising interest rates by 0.25 to 0.50 percent. In response, mortgage rates creeped up a few hundredths of a point. While rates are expected to continue their climb, it will most likely be a steady uptick and not significantly impact the housing market in NYC in the next 12-18 months. In the last few months, many buyers have expressed concern to me about rising rates and their potential impact. My advice has been to examine the actual effects of a few hundredths or tenths of a percentage point on their monthly payments and remind them that in 2013, 4.25% on a 30-year fixed mortgage was considered a great bargain. Moreover, for many buyers, rising interest rates may be the harbinger of better returns on the rest of their investment. #CompassMarketReports #BlogPosts

No man is an island, and no real estate agent can single-handedly get you to the closing table. What we can do, however, is assemble and coordinate the "dream team" of professionals you will need. One of the most daunting challenges for any home buyer is making sure they have top-notch professionals to make sure the transaction goes smoothly. A critical function for real estate agents is to develop relationships with stellar partners to do the heavy lifting for you. Here are some of the other players on the team*** and their functions: Real Estate Attorney: A great real estate attorney is crucial, especially in this market. As I've discussed before, in New York, an accepted offer is nothing more than a starting pistol to begin due diligence and contract negotiations. Your real estate attorney's familiarity with the process and ability to aggressively work within it could make a world of difference. An extra day or two before contract may cost you the entire deal or tens of thousands of dollars to beat out a new, higher offer. Not only does your attorney have to be fast, he/she has to be thorough and make sure that your interests are adequately protected. Mortgage Banker: Not all mortgage bankers are created equal. Even within the same bank, different bankers have vastly different abilities. Some are better at moving along the process and getting exceptions granted. It's no coincidence that these bankers earned superior access through a proven track record of hard work on behalf of their clients, which not only means you will get the deal done, but receive professional and diligent service in the process. Someone may be a lovely friend, but an ineffective mortgage banker who could jeopardize your purchase. Inspector: Depending on what type of property you are buying, it may make sense to bring in an inspector prior to signing the contract. The inspector can make sure there are no major defects with the apartment or building, and can also help you understand smaller repairs that you may consider bringing up during negotiations or that you would want to fix yourself upon closing. Property & Casualty Insurer: Your lender and the building will likely require you to have insurance prior to closing. A capable insurance broker will guide you toward obtaining the protection you need. Title Insurer: You will probably never meet your title insurer, but your attorney or the lender will retain them anytime you are buying real property (so condos and houses, but not coops). The title insurer not only checks for defects in title to make sure there are no issues, but if an ownership dispute does arise, the one time premium they charge covers you against any future claims. Architects and General Contractors: Unless you are buying a turnkey, perfect home, you may be considering doing some work, whether it's painting or refinishing floors or a total gut. Many people vastly underestimate the cost of renovations -- call it the "HGTV syndrome." So in some cases, you may want to get an estimate prior to signing the contract to allocate your resources appropriately. This may require bringing in an architect, general contractor, or both. Once you've closed, the list of services/professionals you need may increase: Movers, floor refinishers, cleaning services, interior designers, painters, you name it. It really does take a village, and you can think of your real estate agent as the mayor or chamber of commerce who can refer you to the best fit. *** This post does not cover the other players in the process who are associated with other parties, such as the building management, underwriters, seller's agent and team, and more. Of course, any transaction requires communication and coordination among everyone. #FAQ #FAQBuyer