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Deanna E. Kory NEWSLETTERWinter 2006 Deanna E. Kory Tel. 212.937.7011 Fax 212.230.8191 E-mail: [email protected] www.corcoran.com In this issue: Third: The general economic trends inventory now from which to choose. • Market News and the steady demand for luxury • Legal Issues for Sellers apartments have encouraged devel- Buyers who need to buy may do well • Innovative Marketing by purchasing now for a number of • Stuyvesant Square Historic District opers to start scores of new projects • Townhouse Interiors throughout the city in the last 12 good reasons, including securing a • Featured Properties months. The fact that more than low interest rate, having a better • Meet the Team 25,000 new units will be available in selection of properties, buying into 2006 and early 2007 does not new development projects, and pur- appear to have dampened the confi- chasing in a more positive environ- dence in the uniqueness of New York ment for buyers. The Market Today: City and its continued growth. 131 Riverside Drive Striking a Balance Fourth: There is now a clear consen- Apartment 9-10C he question that most prospec- sus that there is no real estate bubble tive buyers and sellers are ask- to burst. In Manahttan the market Ting, as we enter the spring sea- underwent a natural adjustment and son, is whether this is the right time to overpriced properties have gone buy or sell. Some speculate that if it down 10% on the average. As a is a good time to sell, then it may not result, a growing number of sellers be a good time to buy, and visa have listed their properties during the versa. To provide, however, an past three months and an increasing answer that truly reflects not only the number of apartments and town- current real estate market condition houses are currently being listed. but market trends for the next six to twelve months, one must survey sev- Fifth: The psychological disparity eral critical market indicators: between buyers and sellers has now narrowed dramatically. Buyers are realizing that prices may not go down First: Interest rates, which directly Triple Mint Home in the Sky! effect borrowing, remain relatively much further and sellers concede that prices are not likely to escalate. 10 Room Duplex Home - 4 Bed / 4.5 Bath low. Because inflation is tempered Web # 841316 $6,200,000 and it is an election year, economists That is, the influx of new inventory project that interest rates will remain and the growing demand seem to be relatively low throughout 2006. reaching a rough equilibrium. Although this may sound self-serving, choosing a top-notch real estate bro- Second: All other economic indica- Putting it all together, the overall con- ker to help you buy or sell is critical- tors, including new jobs and con- dition of the market translates into ly important. Buying or selling is not struction of new houses, as well as the following: If you need to sell, do only a major financial transaction, it's the manufacturing and banking sec- not wait, list your property now but emotionally taxing; a professional tors, are strong as reflected in the be cognizant of what the market can and sensitive broker on your side can stock market. The Dow surpassed the bear. Overpriced properties will not make the whole experience not only 11,000 mark for the first time in sell even in the high season, espe- pleasant but most rewarding. more than three years. cially because buyers have a greater Legal Issues for Sellers the property. Is it being purchased Legal Issues Sellers May Face for use as a primary residence, as a pied-a-terre, as a live-work situation, in Today’s Market or for the buyer's child? Different By Serena R. Brownell coops have different rules, and not all of these reasons are acceptable to ven in a seller's market, selling in his account, or by mistakenly all coops. Do not assume it is being an apartment in Manhattan assuming some portion of his assets purchased for use as a primary resi- E can be challenging. The are liquid, when in fact they are not. dence - you may want to have your majority of apartment buildings are Another issue that may arise is the broker elicit that information from the coops that require board approval of prospective buyer depleting existing purchaser prior to accepting an offer, a prospective purchaser, and the cur- funds prior to obtaining board and speak with your attorney about rent real estate market, with its limit- approval - such as by making a having a provision added to the con- ed inventory and hordes of prospec- major purchase after signing the tract of sale specifying the buyer's tive purchasers, seems to have made contract, and thus changing his intention of use, so that if the buyer's many coop boards even more strin- financial picture and jeopardizing intentions change in a manner that gent about whom they accept. There his chances of obtaining board could lead to a board turndown, it are also numerous other potential approval. One way to attempt to could be considered a default under pitfalls that can befall a seller. Below avoid these situations is by having the contract. are five issues that savvy sellers your broker obtain back -up docu- should be aware of. mentation from a prospective pur- The fewer contingencies the better. chaser, such as his last two years tax Contingencies of any sort, especially Know the buyer's finances. With returns and most recent bank state- those involving financing, can be coop boards being as demanding as ment. Another suggestion is to have both stressful and detrimental to a they are, it is of the utmost impor- the purchaser prepare and sign a seller. This holds true even when the tance for a seller to know a buyer's financial statement affirming that it is prospective buyer has been pre- true finances when deciding whether a true and accurate representation of approved for a mortgage. In today's to accept an offer. Typically the his finances, and that his finances will market, it is not uncommon for prop- buyer's broker will provide the seller's not diminish/change in any substan- erties to sell at or even above the ask- broker with a written offer outlining tial manner prior to the closing of ing price. If a buyer is planning on the buyer's finances, and this is relied said property. financing a property that appraises upon by the seller in determining below the selling price, the bank may whether the buyer is an appropriate Know how the buyer intends use the not lend the buyer the full amount he candidate to purchase the apart- apartment. In addition to being was planning to mortgage, or the ment. However, a buyer may mis- concerned about a prospective pur- bank may deny the mortgage alto- lead the seller, even unintentionally, chaser's finances, it is important for gether. If the contract contains a such as by including a sum of money the seller of a coop to know why the mortgage contingency clause, the that will be gifted to him but is not yet prospective purchaser wants to buy buyer may be able to get his deposit back and simply walk away from the deal, leaving the seller back at square one with an apartment to sell in a market that may have changed for the worse. Timing may become an issue. Many sellers are also simultaneously pur- chasing another property, and need the funds from the sale in order to effect the purchase of their new home. It is important for sellers to understand that the closing date specified in the contract may not be the actual closing date. The closing [ continued on page 6 ] Selling Real Estate in style Transcending the Ordinary in Marketing Properties ur dedication is unfaltering when it comes properties. We hosted a beautiful cocktail party to achieving the widest exposure possible at a Fifth Avenue residence featuring a profes- Ofor our exclusive properties. We offer inno- sional quartet with opera singers, including one vative and creative ideas to showcase the prop- of our own team members….Karen Kelley (our erties such as special events where we gain the team is comprised of limitless diversity and tal- attention of potential buyers, the brokerage ents)! community, and the media. Not only did we gain exposure from the event, Deanna was recently quoted in New York our efforts were doubled with the attention of the Magazine regarding special events to expose media. JANUARY 9, 2006 Let's Put On a Showing! Nobody's turning up at your open houses? Bring in a soprano, a fancy chef, or Quincy. BY S. JHOANNA ROBLEDO Deanna entertaining guests s mezzo-soprano Anna Tonna launched into the final few notes of Handel's sweeping "Ombra Mai Fu," accompanied by the Figaro Quartet, a cluster of audience members stood in one corner discussing the condition of the her- Aringbone floors. Anywhere else-Lincoln Center, perhaps, or Town Hall, where Tonna has performed before-this behavior would've been inexcusable. But this was no ordinary show; this was "Figaro on Fifth," where the bait was a recital but the prize was Tonna's performance space, an eight-room Fifth Avenue co-op on the market for $4.8 million. "It was a way to showcase the space," says Karen Kelley and soprano Raymond Aparentado Corcoran's Deanna Kory, who has the listing. When it comes to high-end properties, fancy brochures, newspaper ads, and a Tenor Raymond Aparentado performs with the Figaro Quartet at flowery description on 1060 Fifth Avenue open house a Website may not always be enough.