New York City Real Estate | Daniel Gershburg

Archive for the ‘New York City Real Estate’ Category

How to get a rooftop Cabana and save thousands on a New York Real Estate Purchase

Monday, March 28th, 2011

As a New York City Real Estate attorney, I saw the decline in the market a few years back, and many of my clients were now in a position of power. Want a rooftop cabana in your new condo purchase? Used to be 20k, now theyll give it to you. Want a parking spot? Sure, free. Sponsors were bending over backwards to unload unites, and purchasers (usually first time purchasers) were winning in the process. So what happened? Many sponsors pulled back and said “the markets going to recover” or “We can rent these units instead.” With this new attitude, purchasers, once again, began to become complicit and not ask for things that they wanted to. Closings in the past few weeks have shown that, as is always true, when you as a purchaser speak up, the seller will almost always listen.

We had one closing where we needed to close way before our mortgage expired. There were just some pretty serious circumstances surrounding the purchasers personal lives, and they needed to get in there. Initially, I just didn’t think it would happen. Contract stated that there was plenty of time to close. But, to the credit of my clients, they didn’t give up and they kept pushing and pushing and pushing. Sellers initially said “No”, but they finally got into the unit in the time period they needed. Squeaky wheel. Sponsors and sellers dont want to deal with that. Most of the time, if you complain loud enough and long enough, the sellers will in fact give in, or at least meet you half way.

Same thing happened on a similar deal last week for a new construction in Williamsburg. Sellers didn’t want to throw in the paying of transfer taxes (literally tens of thousands of dollars). The Purchasers basically threatened to walk. They meant it. This wasn’t so much of an emotional deal for them as it was a financial one. Purchasers complained and said everyone in the neighborhood had the sponsors pay transfer taxes. You know what? They got it. Sponsors ended up paying.

So the lesson here is (and it was also a lesson for me): Don’t stop being aggressive just because you think the seller is in a position of power, because typically they are not. Sellers still need to move units. They still need cash. The market is still WAYYY in the favor of the purchaser. Be aggressive. Have your lawyer be aggressive. It helps if your lawyer also wears pocketsquares, because that screams “aggressiveness” (even silk ones). The things you think you have no shot of getting are those very same things the seller will likely throw in if you make enough of a fuss.

Springtime is coming. People will start buying real estate in New York again. Make sure you get what you need from the purchase.

Posted in Co-Op, Gersh Blog, Loan Modifications, New Construction Condominiums, New York City Real Estate | No Comments »

Save yourself thousands of dollars in a New York City Real Estate Purchase

Tuesday, March 8th, 2011

…..is the OFFERING PLAN. Time and again we see that many people have been burned by this. In short, the Offering Plan is a “book” thats huge and is filed with the New York State Attorney Generals office. Think of it as the instruction manual and code of conduct all thrown into one lovely large volume. It lists the rules of the Condo, including who has control of the Condo Board initially, how many people can get a garage spot, how much the sponsors believe electricity will cost. It lists…everything. So, whats the problem? The problem is that many new purchasers overlook this book (some attorneys may be guilty of this as well.) Some will say “Every offering plan is the same. Once you’ve read one, you’ve read them all!” Not so. Not even close.

One of the most important aspects of the offering plan is that it lists what you, the Purchaser in New York, is responsible for paying for at the closing. Typically, in most real estate purchases in New York, the Purchasers pays their own attorneys, mortgages taxes, and a few other fees. Not so with new construction. Here, you might have to pick up the tab for the Sellers (Sponsors) transfer taxes to New York City and New York State. You might have to chip in to pay THEIR attorney…as well as yours. Lovely. You may also have to pay for tax abatement fees, offering plan fees, fees of fees fees. Im serious. There is a ton in there. It literally can cost tens of thousands of dollars if you go into this blind. Soooo…what do you do? Clearly, you read the book on your own in addition to your trust New York City Real Estate Attorney reading it. You need to come in armed with questions. You need to ask your attorney to explain each fee, etc. You’re buying something that you’re going to live in for years, so you want to know exactly whats going on.

Which brings me to my next point. If you see that the attorney that your Real Estate broker may have recommended isn’t giving you the time of day on the phone. This may be an indicator as to how much time the attorney will devote to your questions. It may not be though. The attorney might be great. My point is you have to be 100% comfortable with who you choose. This isn’t a pitch in any way, but I can tell you that we go through each offering plan because I’ve seen, firsthand, what happens at a closing when someone…shall we say “goofs”. Its not pretty. And no client needs to ever be in that position. So make sure you ABSOLUTELY read the Offering Plan on your own, and hire a real estate attorney in New York City you feel confident will do the same.

Good luck!

Posted in Gersh Blog, Mortgages, New Construction Condominiums, New York City Real Estate | 1 Comment »

Question Closing Costs-Advice from a NYC Real Estate Lawyer

Monday, January 31st, 2011

I was perusing the Sunday Times this weekeend when I came upon a great article, which I am linking here. The just of the article is that you should always question the closing costs when purchasing Real Estate in New York. Further, it goes on to give great advice about negotiating many of these closing costs. This is really practical and helpful advice that we use for basically every deal where we represent a purchaser.

I can tell you that many of my real estate clients are first time home/apt/condo buyers. They have tons of questions, and thats normal. I can also tell you that many of these clients are not aware of just how much closing costs can run on an average purchase. Say, for example, you, like tons of of people out there, have just had an offer accepted on a new construction condominium in Greenpoint, Brooklyn. You’re purchasing for $500,000. The closing costs can literally add anywhere from 3-6% on top of that price. But heres the thing. MANY of these costs are completely negotiable. In a new construction, typically the developer will try and make you, the purchaser, pay the New York City and New York State transfer taxes, which could be thousands of dollars. You can negotiate that. The Seller can have you try and pay THEIR own attorneys fees. You can negotiate that out. The Seller can try and have you pay for a re-imbursement fee for filing the Offering Plan (a document thats required to be filed with the New York State Attorney General when building new construction). You can negotiate that out. You can literally cut your closing costs by 50% if we just take charge and attempt to get many of these fees reduced.

Furthermore your lender charges all types of fees (many of which seem to be redundant, and many of which they cant even explain). Some of my best clients have been able to call their lenders and negotiate these fees down, or even eliminate them altogether.

Sometimes, attorneys will say that they like clients who just “sign” and purchase, without the hassles of discussing every single fee. I completely disagree. I love clients who want every fee explained. That sounds somewhat crazy, but it means the client is an informed consumer. That actually makes it easier for us, because we know that were on the same page. Our whole mantra is “No Surprises”. The last thing we ever want is to come to the closing table and have our clients say “What in the world is this fee???” With some negotiating skills and tactics, you can make sure that doesnt happen.

Any questions, as always, feel free to call.

Posted in FHA, Gersh Blog, New Construction Condominiums, New York City Real Estate | 4 Comments »