About Real Estate Market
in New York City
Choosing a real estate lawyer
By Yonatan David Biton
February 20th, 2023.
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When closing on a real estate transaction in Manhattan, it is crucial to choose a good real estate attorney. It will help ensure that the transaction goes smoothly and that your rights are protected. However, not all attorneys are created equal, and it is important to choose one who has the expertise and experience needed to handle your specific situation.
First and foremost, the attorney you choose should have expertise in real estate law. This is essential as real estate law is complex and ever-changing, and you need an attorney who is familiar with the latest developments and trends.
In addition to expertise in real estate law, the attorney you choose should also have relevant experience in Manhattan. Manhattan real estate is different even from other NYC boroughs let alone NY state and other states around the US.
An attorney who has experience in Manhattan will be familiar with the laws and regulations that apply to your transaction and will be better equipped to handle any issues that may arise.
It is also important to choose an attorney who is responsive to you and to your broker. The attorney should be easy to reach and should be able to answer your questions and address your concerns in a timely manner. This is important as real estate transactions can be stressful and time-sensitive, and you need an attorney who can help you stay on top of things.
Beware of attorneys that tend to be what I call litigation driven rather than transaction driven. You can quickly witness it during the first conflict between the parties. A transaction-driven attorney will focus on getting the deal done, while a litigation-driven attorney will focus on litigating disputes. You need to keep your eyes on the prize and so the attorney of your choice.
Finally, consult your broker as they work with plenty of lawyers and will have a good idea of who’s a good fit. For the most part, they will be able to recommend an attorney who has a proven track record of handling transactions similar to yours.
Condo vs Co-ops
By Yonatan David Biton
February 15th, 2023.
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Coops and condos are two popular types of housing in New York City, but they have significant differences that potential buyers should be aware of before making a purchase.
One major difference between the two is the cost of closing. Condos tend to have higher closing costs than coops. Even though condos tend to ask for a smaller downpayment than coops, they do have other costs such as title fee and title insurance that can be significant depending on the apartment price point.
Another key difference is in the ownership structure. When you purchase a condo (a “fee-simple” ownership), you own the physical unit and have the right to do with it as you please, within the limits of any building or community rules. In contrast,
when you purchase a coop, you are purchasing shares in the corporation that owns the building. You then have the right to live in a specific apartment, but you do not own the physical unit.
Flexibility in property usage is also different between coops and condos. Condos generally offer more flexibility, as owners have the right to rent out their units or make changes to them as they see fit. In contrast, coops typically have more restrictions on property usage. For example, many coops have rules that prohibit renting out units, and they may also have strict rules about making changes to the property.
Another difference between coops and condos is the process of buying and selling. Coop purchases require board approval, which can be a long and rigorous process. The board will review your financials and may even interview you before approving the sale. In contrast, buying and selling condos is generally a simpler process, as long as the unit is in good condition and the buyer is able to secure financing.
Buying a coop in NYC and the need to use a broker
By Yonatan David Biton
January 25th, 2023.
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Buying a coop in NYC can be a challenging and overwhelming process. From finding the right building and unit to navigating the legal and financial aspects of the transaction, there are many obstacles that can arise. That's why it's important to have a knowledgeable and experienced broker by your side to guide you through the process.
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Make sure the broker of your choice has specific knowledge about the neighborhood you are interested in. New York City is a big and diverse place, and different areas have their own unique characteristics and dynamics. A good broker will have a deep understanding of the strengths and weaknesses of different neighborhoods, and can help you find a coop that meets your needs and fits your budget.
Another important aspect of buying a coop in NYC is experience with specific buildings and management companies.
Different buildings have different policies, procedures, and requirements, and it's important to have a broker who knows the ins and outs of the buildings you're interested in. An experienced broker ideally worked with several different management companies and can help you navigate any potential issues that may arise.
Perhaps one of the most crucial reasons to use a broker is their access to off-market inventory. A broker will have access to listings that are not available to the general public and simply aren’t advertised. This could be a huge advantage as it opens up opportunities for you to buy a coop that you would not have known about otherwise, and could save you a lot of time and energy. Among my other sales, in 2021 I had 2 completely off market coop transactions that simply weren’t available on the market at that time even though we looked for months on end.
Another key benefit of using a broker when buying a coop in NYC is their ability to help solve problems and bring all the parties of the deal together. Buying a coop is often a complex process, with many different parties involved, such as lawyers, financing institutions, and closing agents. A good broker will have experience working with these different parties and can help ensure that the transaction goes as smoothly as possible.
Current Interest rate status
By Yonatan David Biton
January 10th, 2023.
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When it comes to buying a home, interest rates play a crucial role in determining the overall cost of the mortgage. The current interest rate of 6.5% is a steep increase from the 3% interest rates of the past few years, which may make some buyers hesitant to enter the market. However, there are several advantages to buying a home at this time despite the increased interest rate. Here are 5 reasons why now is still a great time to buy a home even with the current interest rate at 6.5%.
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Buying now locks in your interest rate: Although the current interest rate is higher than in recent years, it's still relatively low in the grand scheme of things. By buying now, you'll be able to lock it in for the life of the loan, which can save you a significant amount of money in the long run.
The economy is strong: The current economic conditions are favorable for home buying. Unemployment is low, and wages are rising, which means more people can afford to buy a home. Furthermore, low-interest rates usually signify a healthy economy, which means that the home value is likely to increase over time. Interest rates are expected to rise further: Experts predict that interest rates will continue to rise in the coming months, which means that waiting to buy a home could make it more expensive in the long run. By buying now, you'll be able to avoid paying a higher interest rate in the future.
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Increase in Value: Historically, home values tend to increase over time. By purchasing a home at an interest rate that is still considered low, you'll be able to take advantage of this appreciation in value, as you'll be able to sell the home for a higher amount later on.
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Forced Savings: When you're paying a mortgage, you're also forced to save money. The mortgage payments go towards paying off the home and building equity, which can be used as a nest egg for retirement or to purchase a larger home down the road.