International Buyers Coming Back

Joanne Greene

After the swift travel restrictions last year following the onset of COVID, real estate professionals saw the decline of international buyers like no other. But, just as some predicted, these international buyers have been making their way back into the market and returning home to their beloved New York City. How they hunt for their luxury properties has changed, though, with technology and trust being the main pillars they are relying on.

Brown Harris Stevens’ top producing team Joanne Greene and Nada Rizk have recently facilitated two transactions, one for just under $2 million and the second for just over $4 million, with buyers from afar. In both circumstances, the duo relied heavily on Facetime tours to lock in interest and serve their clients with the same hallmark level of expertise and attention that they would receive in person.

Drawing on more than 20 years of experience, Joanne and Nada offer the following tips for those buying sight unseen.

Nada Rizk

Form your opinions: There are a number of perspectives floating around on the current state of affairs in New York City. Check multiple trusted sources and evaluate the information to form your own opinion as to whether it’s the right move. Use the time away from Manhattan to rethink your housing needs and closely evaluate the priorities. You should also plan for the future and post-COVID, will you be wanting a building with a spectacular line-up of shared amenities, or a more reserved and private space? Forward thinking, it’s a great time to plan your return to the office or look for a property with a home office space included.

Lean on the experts: Knowing where to begin can be quite overwhelming. Engage with an experienced, local agent who can sort through available listings efficiently and share on the ground information on the properties, buildings, and neighborhoods. Look for an agent with specific experience working with international buyers, especially during the past year.

Beyond the property: You’re not just buying an apartment, you’re buying a building, a neighborhood, and a community. Don’t disconnect after the Facetime property tour, ask your agent to show you the laundry room, common areas, and even where the trash is taken out; and then ask them to walk you around the immediate area. What you see – and more so what you don’t – might impact your decision and future enjoyment of the space. Some neighborhoods even have local news publications, which provide great insight into the community and neighbors alike.

After the closing: Your due diligence should include a full assessment of building policies, from move-in to deliveries and renovations. Be sure to properly evaluate any work that you might want to have done and ensure that it can be completed within the period that the building allows, taking post-COVID considerations into account.

Have a listing you think should be featured contact us or email at Jeremy@offthemrkt.com to tell us more! Follow Off The MRKT on Twitter and Instagram, and like us on Facebook.

Four Compromises Homebuyers Should Never Make, Even in a Seller's Market

Ryan Dibble

Buying a home, whether it’s your first or your fifth, is all about compromise. You start with a wishlist that includes every amenity you’ve ever wanted. Then you whittle down that list until you have your “must-haves.” Even then—because no home is perfect—you edit that list down further.

Compromise is the name of the game when it comes to buying a home, but there are certain areas where you should never budge. Here are the four things you should hold sacred while buying your home.

Your (and your partner's) goals

When buying a home, sometimes you’re buying an asset, and sometimes you’re buying a lifestyle. Either way, knowing your goals will help you decide what to invest in and what to avoid. 

If you're buying with a partner, it's crucial to make sure your goals are aligned before starting the homebuying journey. It's a much harder conversation to have at an open house or in front of your mortgage lender. 

Sticking to your goals is all about being intentional. Before you start house hunting, write your goals down, ground yourself, and come back to them regularly. The most successful homebuyers are intentional about what they want.

Budget 

It may be tempting to buy above your budget if you find a home you love, but doing so can lead to long-term problems. Getting in over your head can quickly turn a dream house into a nightmare.

Want to make sure your budget is realistic? Get pre-underwritten, not just pre-approved, by your mortgage lender. With pre-underwriting, the lender carefully reviews your ability to pay back the loan before a property is involved. Put simply, pre-underwriting is the only reliable answer to a big question: “how much can I spend on a home?” It’s a written commitment from a mortgage lender confirming the loan amount and program you’re qualified for.

Location, location, location 

You can change almost anything about a home, but you can’t change a neighborhood. No amenity matters if you're miles from where you want to live – even if it is the perfect house otherwise. 

Yes, it's true that you may not be able to afford the hottest neighborhoods, but that doesn't mean you can't find a more affordable area you love. Identify your favorites, then widen the circle. Before locking in on any location, go one step further and explore each neighborhood you're considering in person to make sure it has what's most important to you, whether it be good schools, walkability, or social life.

Fixer-upper vs. Turnkey. 

Consider your appetite for big renovations, and the costs associated, when buying a home. If you've never swung a hammer or don't have the patience to live in a less-than-desirable home for a lengthy period, you could end up regretting taking on a fixer-upper because of a lower price tag. 

About the author:

Ryan Dibble is Chief Operating Officer of real estate startup, Flyhomes and an early employee of the company. Over the past five years, Ryan has built several core functions at Flyhomes, including both the Mortgage and Title & Escrow divisions, and ushered thousands of customers through the homebuying process. 

Have a listing you think should be featured contact us or email at Jeremy@offthemrkt.com to tell us more! Follow Off The MRKT on Twitter and Instagram, and like us on Facebook.

Schools and their impact on the real estate market

What will back to school look like this September? The question is dominating casual conversations, back to work plans, and influencing real estate decisions. 

The flexibility of rentals

Scott Harris, a top agent at Brown Harris Stevens

Schools, jobs, childcare, and schedule coordination are just a few of the things that a family has to juggle on a regular basis, and all are currently amplified. For owners looking to transition from their current home, many are gravitating towards rentals as an intermediate step. And on the flip side, sellers are opting to list their homes for both sale and rent in an effort to expedite the process and take something off their plate, even if just for a year. Anytime a family is considering, “what do we do right now,” flexibility is always an attractive option in the absence of real information.

A change in search parameters

With a combination of in-person and virtual learning a probability, people may opt for a property closer to their child’s school in an effort to simplify the commute. Unless full isolation measures go into effect again and parents are continuing to pay New York City private tuition are caught elsewhere, it’s not sustainable to put down roots in another market and place children in those schools. 

Shifting needs of childcare

Childcare can put pressure on a dual family household in the best of times. When school begins, families generally transition to part time babysitters to full time nannies given the adjusted time needs with class occupying the afternoons. However, with an uncertain school schedule as the new year approaches, families question the best path forward. Many households may opt for one parent to remain in home indefinitely, which could impact both home needs and budgets. 

Let’s get to flat ground

From optimizing the space to learning the ins and outs of a new building, there are always a number of unknowns when moving. When due diligence is rushed, details can be overlooked and people might find themselves in a suboptimal position. Marathon runners are taught not to make strategic decisions while running up or down a hill. With that in mind, people may opt to stay put until there is a clearer view of the path ahead.

Scott Harris, a top agent at Brown Harris Stevens, has successfully transacted more than $750 million of New York City residential properties.

Have a listing you think should be featured contact us or email at Jeremy@offthemrkt.com to tell us more! Follow Off The MRKT on Twitter and Instagram, and like us on Facebook.

NYC Presents Perfect Opportunity For Savvy Buyers

As the New York City real estate market reemerges there are indications that this is one of the best opportunities one will see to buy a home.

From first time buyers to those savvy and sophisticated enough to recognize the opportunity the market presents, these trailblazers are the ones that will drive recovery, taking advantage of the moving parts aligned in their favor.

The following are clear indicators why the perfect time to buy is now. 

Long-term vision

First, anyone will need to think about their long-term goals. The city always comes back and this will be the time that everyone is going to look back at and say “I should have bought then.” If you are planning to stay in New York long-term, then it’s certainly the right time to purchase. For those in suburban markets hoping to come to the city, they are able to capitalize on a strong selling market to get a premium on their homes while simultaneously taking advantage of the buyer’s market within the city.

Minimized competition

Many foreign and out of town buyers who would be interested in taking advantage of the market cannot be in New York because of travel restrictions and safety issues. Even within the city, people are sitting in a holding pattern until they have more certainty, leading them to wait until the market is going up. This leaves a clear field for smart buyers. It's a very civilized environment for a buyer with less competition and ample supply to pick and choose from at their own pace.  

Maximized inventory

Looking for a home can be discouraging but the current market is ripe with options. For seasoned buyers and first-time buyers alike, this is an opportunity to buy something that you never thought accessible from location to size and views. It’s a dream market for taking a step towards purchasing a home you only thought as aspirational previously. In addition to the surplus of inventory available, there is more negotiability and flexible terms for purchasing.

The stock market

Despite recent events, we are still seeing a high stock market as it continues to rally. This runs in contrast to a downturn in the NYC real estate market as the two are usually in sync. So while your money is becoming more valuable in the stock market, we are seeing more deals being negotiated within the real estate market. Further, you can borrow money for as low as 2%. The strong stock market, dip in the real estate market, and low interest and mortgage rates create the ideal combination to seize the opportunity in the buyer’s favor.

Post-COVID due diligence

COVID has offered a new perspective on due diligence. Across the board, buyers should ask questions about the financial health of a building they are interested in to have a clear understanding of if and how a shortfall could be passed on to the shareholders. Instead of being content with the past couple of years, look at closer to a decade of history on any capital assessment. This also includes examining the building’s retail client. You can work with your agent and attorney on due diligence and history of the property.

It's also worth noting that boards are being more flexible with regulations such as sublet policies to make purchasing more appealing.

Brown Harris Stevens’ top producing team of Nada Rizk and Joanne Greene have navigated the Manhattan real estate market for more than 20 years.

Have a listing you think should be featured contact us or email at Jeremy@offthemrkt.com to tell us more! Follow Off The MRKT on Twitter and Instagram, and like us on Facebook.

Five tips for buyers to ensure a successful transaction

The Halstead Fahy Team

New York City real estate can be tricky to navigate for first-time and repeat buyers alike. With endless amounts of market data available, experiencing the process firsthand is the best training for what one truly needs and wants in a home.

From creating the initial wish list to reconciling that a must-have might be more of a nice-to-have, the following tips can help ensure an elevated home buying experience.

Chris Halstead and Sharon Fahy

Don’t create your dream list from the Internet

The decision to purchase a home is an exciting one, and buyers often jump online to begin the process. While online listing aggregators like StreetEasy and others are good resources, not even the savviest buyer can fully appreciate every nuance through viewing listings online. Pros warn not to firmly set your sights on specific attributes solely through online viewing. The height of a low- versus high-floor, noise level from an adjoining wall, and the feel of the neighborhood are among the things best experienced in person. 

Decode nice-haves and must-haves

In New York City, people can be very resistant to considering an opposite side of Central Park, moving outside a specific proximity, or venturing north or south of a particular street. It’s important to be open minded during your search and to look beyond these pre-determined boundaries. Through exploring new areas, more often than not, buyers have architectural options they did not know existed and find the perfect home within walking distance of the same park or perimeter.

Similar to location, nice-to-have and must-have features frequently change once people begin to see properties in person. A home is meant to last for years at a time – even if the listing does not appear to be a sweeping match, check the box and take a visit, it’s worth an hour of your time.

No detail is too small

While it is a real estate agent’s job to listen, it is the buyer’s job to share. It is important to communicate every detail of your dream home with your agent. And when viewing apartments, nothing is too trivial, and all feedback is good feedback, even if it is negative. An agent is not responsible for how an apartment was renovated so it will not hurt their feelings. Open and transparent communication ensures that the agent is able to focus the search and be more efficient in presenting you with homes that would truly be a fit. Your agent may also be able to pick up on features that you verbalized, but didn’t even realize.

Look at things from the seller’s perspective

The past two years have been a fluctuating market and many buyers have tried to take advantage of the opportunity. What they may forget is, buying a home is a two-sided transaction. We’ve seen buyers who will just put in offers on homes trying to get a deal and then wonder why it wasn’t accepted. Buying a home is a gray area because it deals with very personal topics to people – emotions and financials. When making offers, consider from the seller’s perspective if an offer is reasonable. This makes for a more productive conversation rather than going into with blinders on solely from your own viewpoint.

Allow your priorities to change

As we’ve seen in recent months, unexpected circumstances can cause our property-priorities to shift as we reevaluate what we need on a day to day basis. Trading space for an incredible amenity package may be something that was essential before, but is less so now. A small private terrace and a carve out for an in-home treadmill may for the foreseeable future be more valuable than a tricked out roof deck and state-out-the-art building gym. Priorities change, and lifestyles do as well. The home that may have been a fit yesterday may not be today, and that’s okay.

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How to Maximize Space in a Small Studio Apartment

By Aleksandra Scepanovic, Managing Director, Ideal Properties Group

Aleksandra Scepanovic

Most New Yorkers are self-quarantining at home during the COVID-19 pandemic…and some are even finding themselves isolated in a petite studio apartment. The average Manhattan studio apartment runs at about 550 square feet, which in comparison to the average home size in the United States (of 2,700 square feet), can be quite the squeeze. This holds especially true in a city hard hit by the novel virus, in the days when New Yorkers spend so much of their time – at home.

So how can you maximize your living space in a New York City studio? Consider these tips – they are evergreen but can be especially important during the pandemic:

Opt for double-duty décor

When you’re living in close quarters, the Mies van der Rohe’s “less is more” rings even truer. But that doesn’t mean you should sacrifice your personal style by forgoing decorative pieces in order to save space. There are plenty of ways to work your décor into functional, purposeful pieces. For example, bar carts, storage ottomans, macramé baskets or apothecary jars are all ways you can store additional items in a more polished manner without your storage options being obvious or taking up too much space. A bar cart can serve as a stylish, decorative yet functional piece for parties, but can also house and display special-occasion glasses and dishware when not in use. Storage ottomans can be a practical place to store bulky sweaters or blankets. Apothecary and mason jars can store just about everything – from kitchen items to cosmetics.

Customize

If you’re renting your first studio apartment and don’t plan to stay forever and a day, this might not be the right option for you. But, if you do plan to call your studio home for a few years, it could make sense to invest in furniture pieces that fit your specific space. Apart from beautifying, the choices may help improve your apartment’s functionality. An alcove studio (often L-shaped) separates a traditional studio with the living and sleeping quarters. If your residence’s configuration allows it, you can partition the areas off by allowing custom furniture to transform them: a cleverly placed and curated Murphy bed or table that folds up into the wall can help maximize your living quarters while lending charm to the entire space.

Fake it ‘til you make it

When in doubt, deploy tricks of the (interior design) trade that can help make a space feel larger. Hanging mirrors on the walls can create an illusion of a larger space by providing a sense of depth. Interior designers are also known to hang a curtain rod slightly above the window frame, a discernible modification that draws the eye up and makes the ceilings feel higher. In a studio, it can be difficult to distinguish one area or section of the space from the next, but using different sized area rugs can help to visually separate the spaces. Bright colors can often make a small space feel crowded, so if you have the option to paint, opt for soft neutrals for the wall color, and add dashes of color through hanging art. Making these minor adjustments can trick your mind into thinking you have more space than you really do… and inch your studio a step closer to it feeling like home.

While studio apartments vary in size, traditionally speaking, they are significantly smaller than other housing options in the city. The layout of a studio (and its inherent openness) may not be for everyone, but the lessons from interior design portfolios – especially during these times when people are sheltering at home – can offer some creative ways to make your small space feel like a home of much grander proportions.  

Aleksandra Scepanovic is Managing Director of Ideal Properties Group, a leading residential real estate firm specializing in premier Brownstone Brooklyn and Manhattan neighborhoods including Park Slope, Carroll Gardens and Brooklyn Heights, as well as Williamsburg, Gowanus, Chelsea and other sought-after locations.

Have a listing you think should be featured contact us or email at Jeremy@offthemrkt.com to tell us more! Follow Off The MRKT on Twitter and Instagram, and like us on Facebook.

The New York real estate market has not gone anywhere

Nada Rizk

New Yorkers are known to be forward thinking and resilient –– and this applies to the city's real estate. While we are definitely in a current market pause, and will probably continue to be in one until the situation calms, the Covid-19 outbreak hasn't fully stopped purchases that were already underway from being completed and we continue to market some available properties. As everyone adjusts to this global pandemic, we do not know what the new norm will be once the Coronavirus settles, however, there is a strong indication for market activity. We have been communicating with clients––from investors, to local residents––and it seems that so far, people remain committed to buying properties in New York. None of our buyers and sellers have expressed an interest in changing their plans.

There is a strong foundation for a market recovery

We expect to see a delay in our usual real estate Spring peak seasons due to the city's lockdown and global restriction of travel, but there is every indication that the city will still have an active real estate season. Transactions that were in progress have remained on track and the market report (for the months of Jan-March) which came out in the midst of New York's quarantine, pointed to many more deals being made, with sellers willing to adjust their prices and buyers interested in seizing these opportunities. Interest rates will remain historically low. Traditionally, the success of the stock market and low unemployment rates tend to favor sellers. This past year, these were at opposing ends prompting some buyers to seize this unusual occurrence of a robust stock market coexisting with a strong buyer's real estate market.

It will remain a buyer’s market

We feel that when we return to business it will remain a buyer’s market. Buyers who have been on pause with their search will be eager to move forward and sellers who have had a property sitting on the market will be just as eager to sell. Everyone will be anxious to move forward.  Buyers will be motivated and looking to take advantage of opportunities in a market that continues to offer low interest rates, high inventory and realistic pricing.

Joanne Green

We anticipate a lot of activity due to pent-up demand, but we don’t think that will translate to higher prices, just more accurate pricing and deals being consummated. There may be opportunities in new development as developers continue to offer incentives.

What the market will look like

While buyers looking for a primary residence are unlikely to buy their new home sight unseen, they are reevaluating their new home needs given the current situation and preparing a list of properties to view as soon as possible. There will always be real estate needs – relocation, expansion, downsizing, etc. We expect there to be a lot of activity and deals being made.

New Yorkers are resilient - they like to move forward as we’ve seen after other setbacks we’ve experienced. We have adapted quickly to a new way of working despite everything changing. We have managed to continue our lives, work, school in a different way but know everyone misses their old lives and are eager to regain a sense of normalcy and move forward.

Nada Rizk and Joanne Greene are a top producing team at Brown Harris Stevens.

Have a listing you think should be featured contact us or email at Jeremy@offthemrkt.com to tell us more! Follow Off The MRKT on Twitter and Instagram, and like us on Facebook.

How To Navigate In The Current Market

Barbara Fox

After 30+ years as a residential real estate professional, I thought I’d experienced it all – but then along came this unprecedented pandemic. Nevertheless, while we are certainly in unchartered waters now, there are some relevant takeaways from what I’ve learned navigating other uncertain markets such as the post 9/11 period and several business recessions. Throughout it all, I’ve witnessed the strength and resiliency of New York City, and its residential market invariably bounces back.  Please keep that in mind, buyers and sellers, along with the following points during these difficult current times.

Buyer Demand 

Prior to the March order to shelter in place, our spring sales market was showing an uptick in activity for the first time in over a year.  There were abundant buyers in need of new homes and poised to purchase at that time, and sellers had become more realistic in their asking prices. Then, of course, activity came to a screeching halt in March.

I believe that once the city is back up and running, the pent up buyers’ need or desire to purchase will resurface. Those buyers who were poised to purchase before the pandemic will have had sufficient time to browse listings online and set their wish list during this period.  Having spent an inordinate amount of time hunkered down in their current homes, buyers will have acquired more insight into exactly what their home needs should be going forward. Once restrictions ease, I envision them picking up the hunt for the right property in earnest.  

Sellers Keep Calm 

First and foremost, I don’t believe there is any benefit to sellers removing a property from the market during this period. With “days on the market” having been suspended since March on listing websites, there is no real downside to keeping a listing in the public eye for interested browsers. Once showings are activated again, I advise sellers against rushing to lower their asking prices. In the negotiations that ensue, anxious sellers who need immediate deals will have to be willing to take what they can get.  But as activity ramps back up, we should see a surge of pent-up buying needs and as more buyers are looking for properties, and as demand increases, prices will begin to firm up.  So, don’t panic, this business standstill will end.  Our market has endured many downturns, but eventually life resumes.

As far as listing new properties, my advice is that now is not the optimal time.  It will definitely be better to hold off until restrictions ease and properties are again available for showings.  Take this time now to prepare your property – clean it up, declutter closets and cabinets, etc. – so that when the market resumes, you can put your property’s best foot forward. 

About Barbara Fox

Barbara Fox founded Fox Residential, a boutique real estate firm specializing in the sale of Manhattan’s most upscale residential properties, in 1989. Fox Residential Group currently has 30 agents skillfully assisting buyers and sellers in all boroughs of New York City. 

Barbara provides expert guidance to clients based on her unrivaled knowledge of Manhattan’s housing inventory, in-depth understanding of shifting market conditions, and savvy negotiating prowess. She is an active member of the Real Estate Board of New York (REBNY), serving on its Residential Board of Directors and as co-head of its annual fund-raising gala event.

A North Carolina native, Barbara resides on the Upper East Side of Manhattan with her husband and a menagerie of dogs and cats. She is the founder of WOOF Dog Rescue, a nonprofit organization which rescues and rehabilitates homeless dogs and cats from the New York City shelters and then finds them permanent, loving new homes.

Have a listing you think should be featured contact us or email at Jeremy@offthemrkt.com to tell us more! Follow Off The MRKT on Twitter and Instagram, and like us on Facebook.