There are generally more rules around how commissions are paid to buyer’s agents for new development purchases in NYC, and sponsors are generally more strict in terms of requiring buyer’s agents to register and/or attend showings with their clients. This may present issues for buyers wishing to save their buyer agent time by attending viewings by themselves.
One positive development is that the Real Estate Board of New York (REBNY) released the standardized REBNY Universal New Development Cobrokerage Agreement in October of 2019, which will smooth the process for brokers representing clients on new construction purchases. …
Meeting the Debt-to-Income (DTI) ratio requirement for a NYC co-op apartment can seem like a daunting task. While not all New York City co-op boards are equally strict or rigorous when it comes to buyer financial requirements, it can feel like a nightmare if you’re trying to buy into a co-op with a laser sharp focus on your DTI.
Many strict co-ops in NYC have a zero-tolerance policy for Debt-to-Income ratios above their guidelines. This means you’ll be rejected for having a DTI of just 25.15% or 25.4% if the building requires 25% or less.
The offer to purchase real estate form comes in various forms in New York, and can vary based on the brokerage firm. Furthermore, it’s quite uncommon to see offer to purchase forms used in the first place, especially in NYC. In practice, most offers are typically simply submitted by buyers and buyer’s agents via email to the listing agent or seller.
Both co-purchasing a co-op and utilizing a guarantor when buying a co-op are viable options for a buyer who has shaky finances that the co-op board might not otherwise approve of individually. It’s important to understand that co-purchasers share joint responsibility for all loan, monthly maintenance and special assessment payments, while a guarantor is only responsible for backstopping the buyer’s monthly maintenance charges.
Rent to own is quite rare in NYC due to co-ops and banks having strict financial requirements around debt-to-income ratios and post closing liquidity. However, if a rent to own transaction were to happen, the tenant should have a high level of income with a clear path to saving enough for a future down payment, closing costs and post-closing liquidity.
Rent to own is an arrangement where a tenant rents a property with either the option or the obligation to buy the property at the end of the lease term.
Condo house rules are a compilation of rules and regulations created by a condomimum’s board of directors regarding everyday life in the building.
Condo house rules usually encompass the use of common elements shared by all owners, such as the roof deck, hallways or basement storage. Some condo house rules will also outline procedures for renting or selling a condo unit.
House rules are typically written in a more casual manner, vs the more formal writing seen in the condo’s original offering plan or by-laws.
Sellers may be tempted to offer less than market rate buy side commissions, but this will only hurt their chances of selling as buyers’ agents regularly screen listings based on commission rates.
Furthermore, offering low co-brokes is dangerous for the reputation of listing brokers as the pool of buyers’ agents could associate all future listings by the listing broker as heavily discounted in nature, meaning that the broker’s current and future listings could be subject to boycotting by the wider brokerage community.
In the United States, commissions are customarily paid by the seller. The listing agent typically secures a signed…
A classic sign of a bad buyer’s agent is the inability to answer basic questions about the home buying process. For example, you ask whether buyers can back out of an accepted offer, and your buyer’s agent has no idea but promises to get back to you.
Keep in mind that buyers’ agents won’t necessarily know more than you about a property listed for sale, as most of the information about a listing is the same on public websites as it is in the broker database. …
A number of new rent laws and regulations recently took effect in NYC following the passage of the Housing Stability and Tenant Protection Act of 2019 by the New York State Legislature. Changes were made to rent stabilization laws, real property law as well as the procedure of housing court.
While most of the changes affect rent-stabilized units, some of the new regulation affects market-rate (unstabilized) units including individual condo and co-op apartments.
The vast majority of the deregulation pathways for rent stabilized units have been eliminated under the Housing Stability and Tenant Protection Act of 2019. Deregulation is essentially…
Sellers can negotiate the buyer agent’s fee if they are listing their home For Sale By Owner (FSBO). Keep in mind that this means no listing agreement has been signed with a listing broker, and the property is not listed on the MLS.
As a result, a FSBO seller will have no contractual obligations to do anything or pay anyone. He or she will typically have manually listed their own home for sale on a website or two, and perhaps put a for sale sign outside their home.
FSBO homes are effectively off market because the 90% of buyers who…