Sotheby's International Realty Donna Stockman

Resources



Do you still have questions about buying or selling a home in New York City? Below are links to additional resources for buyers and sellers alike as you are planning your move:

REBNY Financial Statement

This form has been created by the Real Estate Board of New York and is used by NYC brokers to qualify buyers. It is submitted with an offer so that the seller can determine that the prospective purchaser is qualified, and will pass a coop board. It is generally reviewed by condo boards as well. Here is a link to the form:

REBNY Financial Statement

NEW YORK STATE AGENCY DISCLOSURE STATEMENT FOR BUYERS AND SELLERS

The New York Department of State requires that real estate agents provide their clients with a Department of State (DOS) disclosure form that explains buyer and seller agency. Here is a link to the statement:

Disclosure Statement

BUILDING TYPES

Doorman Buildings

Many people prefer the convenience of a doorman building. Doormen accept deliveries of items such as packages, groceries, drycleaning and can hail you a taxi, let guests into your property (with your prior permission), and assist if you have contractors such as the cable or telephone company working in your unit. They also serve as security for the building.

High-Rise Full Service Buildings

These are generally associated newer buildings that were built starting in the 1980s. They tend to be at least 20 story, and as much as 40 or even more story, condominium or rental buildings with doorman and concierge services. Other amenities often include health clubs and swimming pools, valet services, children’s playrooms and parking garages.

Pre-War Buildings

Pre-war buildings are those built before World War II. These buildings are usually 10 to 20 stories, and generally provide spacious lay-outs, and can have features such as fireplaces, hardwood parquet floors and high ceilings. These can be doorman or non-doorman buildings. These buildings do not feature modern amenities although a few might have added fitness centers or a rooftop deck. Most have laundry in the basement.

Post-War Buildings

Post-war buildings were built between the late 1940s and 1970s. They are generally high-rise. Post-war apartments tend to have more closet space, a live-in super and laundry facilities.

Lofts

Loft buildings were previously commercial buildings that have been converted into residential living spaces, or are newly constructed as loft buildings. The spaces typically offer higher ceilings, open spaces and can have original details such as supporting columns, tin ceilings, etc. They are usually found in Greenwich Village, Chelsea, Flatiron, Soho, Tribeca, Nolita, and lower Manhattan, and often do not have a doorman or other amenities, except for the more recent conversions of larger spaces.

Brownstones Or Townhouses

These are typically four to six story buildings built in the 1800s to early 1900s. They are either single family houses or have been converted into multiple apartments. The term “brownstone” refers to the type of material used as facing on of the structure. Generally, these buildings have features such as gardens, fireplaces, original flooring and moldings.

LEAD PAINT DISCLOSURE BROCHURE

All home purchasers in New York are provided with a lead paint disclosure brochure which explains the possibility of the presence of lead paint in homes built prior to 1978. Here is a link to the brochure:

Lead Disclosure Brochure

PURCHASER CLOSING COSTS

Attached is a list of buyer closing costs for a coops and condos. These costs are 2012 estimates and are stated in ranges. It is meant to be a guideline and for educational purposes only. Please consult with your accountant, lawyer and financial advisor for actual costs for your transaction. Sponsor sales are those that are in newly developed buildings and sold directly by the developer.

  COOPERATIVE CONDOMINIUM
 
Mansion Tax 1% of sales price, only applies when
sales price exceeds $1,000,000
1% of sales price, only applies when
sales price exceeds $1,000,000
Insurance not applicable approx. 0.5% – 0.8% of sales price
 
SPONSOR SALES
NYC Transfer Tax    
Sales under $500,000 1.000% of sales price 1.000%of sales price
Sales over $500,000 1.425% of sales price 1.425% of sales price
NYS Transfer Tax 0.4% of sales price 0.4% of sales price
Seller’s Attorney Fee $4 per $1000 of sales price $4 per $1000 of sales price
Working Capital Contribution one – two months maintenance one – two months common charges
Share of Manager’s Unit Variable – depends on number of
shares and cost of manager’s Unit
Variable – depends on common
elements % & cost of manager’s unit
 
MORTGAGE RELATED FEES – APPLY IF FINANCING
Mortgage Tax    
Sales under $500,000 not applicable 1.800% of loan mount
Sales over $500,000 not applicable 1.925% of loan amount
Bank Underwriting Fee $500 and up $500 and up
Bank Attorney $750 and up $750 and up
Bank Credit Report Fee $50-$100 per applicant $50-$100 per applicant
Origination Points 0 to 3% value of loan 0 to 3% value of loan
Loan Application Fee $500 and up $500 and up
Appraisal $500 and up $500 and up
Short Term Interest one month one month
UCC-1 Filing $100 and up not applicable
Recognition Agreement $200 and up not applicable
 
MiSCELLANEOUS EXPENSES
Buyer’s Attorney Fees $2,000 – $2,500 $2,000 – $2,500
Managing Agent Closing Fee $250-$500 $250-$500
Managing Agent Credit Report Fee $50 to $100 per applicant $50 to $100 per applicant
Board Application Fee $500 and up $500 and up
Move In Fee $500-$1000 (non-refundable) $500-$1000 (non-refundable)
Move In Deposit $500-$1000 (refundable/no damage) $500-$1000 (refundable/no damage)
Maintenance Adjustment up to one month not applicable
Lien Search $475-600 not applicable
Flip Tax normally imposed on seller but may
be imposed on buyer
usually not applicable to condos
Common Charge Adjustment not applicable Up to one month
Real Estate Tax Adjustments not applicable one to six months
Title Search not applicable $300-$500
Tax Escrow not applicable two to six months
Title Closer Gratuity not applicable $125 – $150
Recording Fees not applicable $200-$350

All information is provided subject to periodic law and rule changes. These costs are 2012 estimates and are stated in ranges. It is meant to be a guideline and for educational purposes only. Please consult with your accountant, lawyer and financial advisor for actual costs for your transaction.

SELLER CLOSING COSTS

Below is a list of seller closing costs for a coops and condos. These costs are 2012 estimates and are stated in ranges. It is meant to be a guideline and for educational purposes only. Please consult with your accountant, lawyer and financial advisor for actual costs for your transaction.

  COOPERATIVE CONDOMINIUM
 
Broker Commission typically 6% of sales price typically 6% of sales price
 
NYC Property Transfer Tax $100 filing fee plus $125 filing fee plus
Sales under $500,000 1.000% of sales price 1.000% of sales price
Sales over $500,000 1.425% of sales price 1.425% of sales price
 
NYS Property Transfer Tax    
0.4% of sales price $4 per $1000 of sales price $4 per $1000 of sales price
 
Mortgage Satisfaction Payoff of Seller’s Mortgage and
Home Equity Loan
Indebtedness, if any
Payoff of Seller’s Mortgage and
Home Equity Loan
Indebtedness, if any
 
Seller’s Attorney Fee $2000 to $2500 $2000 to $2500
 
Managing Agent Fee $500 to $1,000 $500 to $1,000
 
Payoff Attorney Fee $500 and up not applicable
 
Title Agent Pick-Up Fees not applicable $200 to $300 for each loan paid off
 
Co-op Attorney Fee $500 – $800 not applicable
 
Stock Transfer Tax $0.05 per share not applicable
 
UCC-3 $100 and up not applicable
 
Flip Tax Normally associated with
co-ops. Defined by co-op
boards and can be either
(i) a percentage of the sales
price, (ii) a percentage of the
seller’s gain or (iii) a fixed
dollar amount per share.
usually not applicable to condos
 
Lost Stock and Proprietary Lease Fee $250 – $750 not applicable
 
Estate Fee – Sales from estates
may require additional fees
payable to managing agent
$500 – $1000 not applicable
 
Title Charges not applicable $150 – $250
 
Move-Out Deposit $500 – $1000 (generally refundable) $500 – $1000 (generally refundable)
 
Move-Out Fee $500 – $1000 (non-refundable) $500 – $1000 (non-refundable)
 
FIRPTA Tax Withholding If seller is a foreign national, withholding tax of 10% of sales price unless FIRPTA Waiver Certificate is obtained from IRS
 
NYS Estimated Capital Gains
Tax Withholding
Capital gains tax withholding of 8.97% of estimated gain is withheld at closing unless (i) seller is a resident of NYS at time or sale or (ii) property sold was seller’s primary residence for 24 months within the last five years or (iii) property was sold subject to a 1031 exchange or another exemption under the IRC.

All information is provided subject to periodic law and rule changes. These costs are 2012 estimates and are stated in ranges. It is meant to be a guideline and for educational purposes only. Please consult with your accountant, lawyer and financial advisor for actual costs for your transaction.

NYC TAX ABATEMENT DEFINITIONS

  • Tax Exemption Program
    This program covers new buildings as well as certain restorations. A 421-A or 421-G tax abatement is for new buildings and a J-51 applies to converted buildings.
  • 421-A
    The 421-A program phases out tax exemptions over 10 years. The real estate tax will increase 20% every second year until maturity (first and second year – 100% exempt, third and fourth year – 80% exempt, continuing to the tenth year).
  • 421-G
    The 421-G incentive applies to a specific area – below Murray Street in Manhattan. Eligible properties within this area will see tax benefits for a period of 14 years. The lower payment is applicable in the initial 8-10 years and will phase out gradually until year 14.

FAIR HOUSING INFORMATION

There are fair housing laws on the federal, state and local level which give the right for anyone to live where they chose and be treated according to the same rules as everyone else. Fair Housing laws promote equal opportunity and prohibit discriminatory practices that can unfairly limit the housing choices of numerous groups. The federally protected classes are:

  • race
  • color
  • religion
  • national origin
  • sex
  • disabiity
  • familial status

In addition to these protected classes, New York State offers legal protection based on:

  • creed
  • marital status
  • sexual orientation
  • age
  • military status.

New York City offers protection based on these additional protected classes:

  • partnership status (domestic partnership under local law)
  • citizenship status (citizenship or immigration status)
  • lawful source of income (including income from Social Security or any form of public assistance or housing assistance)
  • gender identity

Links to New York City fair housing information:

SOTHEBY’S INTERNATIONAL REALTY MARKET UPDATE

Sotheby’s International Realty publishes a NYC real estate market update each quarter. Here is the latest quarter:

Sotheby’s Market Update

STAGING TIPS

Many buyers have difficulty imagining themselves living in someone else’s space and making that space their home. This is particulary true if the space is cluttered, is decorated in a bold manner or painted with unusual colors. I have been with buyers who could not recall anything about the space except the fushia paint or a unique and bold piece of dominating art on the wall.Staging a home so that it appeals to the broadest base of people, with neutral colors and a lack of unique and personal possessions, and upgrading or repairing leaks, aging tile and stained tubs, will garner a seller a higher price and be well worth the investment. I am aware of instances where sellers resisted “staging”, and after disappointing marketing results subsequently elected to take the property off the market and stage it, only to achieve a higher selling price.The following links provide additional objective information on staging. As your broker, I would discuss the specifics of your property with you prior as part of your marketing plan.

MOVING TIPS

Canada Buy South

Canada Buy South: Visit this site for information and resources geared towards Canadians interested in buying property in the United States

Reference Letters

Coop Boards in NYC typically ask for both personal and business reference letters. Boards use business reference letters to determine that you are secure in your job and that you will be financially responsible. They use personal reference letters to get a feel for your character and personality. Boards are looking for good people who will be considerate neighbors and community members.

Reference letters are extremely important, and should be substantive. Always ask for more than you need so that we can select the best letters. Additionally, you can arrange for your references to send a draft to the broker for comment prior to finalizing so that you are not in the uncomfortable position of asking someone to change a letter. Always ask early, as reference letters can hold up a board package.

Carefully read whether the board requires a particular format so that you can make that clear to your references when you request a letter. Reference letters should be addressed to the Board of Directors of the building, at the building address, but should be sent to the broker for inclusion in the board package. Reference letters should state your relationship to the person, how long you’ve known them and should highlight your defining characteristics: friendly, cooperative, considerate, ethical, etc. Relating an example that highlights one of your attributes is extremely helpful and compelling. Generally letters should be a few paragraphs, and no more than one page. Business letters should be on business letterhead and personal references on personal or business letterhead. Both personal and business letters should contain contact information.

It is always best to ask someone who knows you well, but never to ask a relative. Particularly for personal reference letters, it’s best to ask someone who’s known you for a long time. If you know someone influential or in a position of power, it is advisable to ask him or her for a reference–just avoid people who are controversial. If you know someone who is on, or has been on, the board of their own coop or condo, he or she should mention that in the letter it as that establishes further credibility.

Links to Sample Reference letters:

Currency Converter