Market is about 20% below peak 2007 prices. Unless the place is unique--the place of your dreams, you should walk if the broker tells you there are multiple offers. I would not up an offer to more than 15% below peak. If history is any indication, the prices will continue to decline over the next few years or will stay the same at best.

Posted by: mkop at June 8, 2009 11:07 AM in response to State of Market?

Try Noah Rosenblatt, that runs urbandigs.com

He is a true buyer's broker and is a trader on the side, so he is very savvy when it comes to the financials and the market downturn and is excellent with comps and pricing in risk.
I don't know if he has any experience with brownstones though.

Posted by: mkop at May 15, 2009 9:13 PM in response to Help Finding a Good Bklyn Broker

As a lawyer, I also agree with lechacal. A lawyer's training does not allow him/her to take responsibility for the financials. A seasoned real estate attorney may offer insight into the financials from mere experience, but a thorough review should be done by a professional accountant or a financial advisor. The fact that your lawyer told you so, suggests to me that he/she is honest and not just out to make a buck.

Posted by: mkop at April 10, 2009 11:14 AM in response to Attorney Question

The 168 Midwood house in PLG was on the market by owner in spring of 2008 for only 100K more and she was unable to sell. This was discussed at length on this blog, it is a shame brownstoner didn't note this:

http://www.brownstoner.com/brownstoner/archives/2008/05/house_of_the_da_499.php

Posted by: mkop at March 13, 2009 3:36 PM in response to Open House Picks

There is almost no closet space. I would call in a contractor to create a closet or two. If you can't create closet space, lower the price again.

Also, the apartment looks a bit cluttered in pictures, I suggest sending some furniture to storage and/or putting away the toys under the bed.

Posted by: mkop at November 20, 2008 8:05 PM in response to Advice for a Freaked Out Apartment Seller

You are not in contract. An accepted offer means nothing and is not binding. You can renegotiate pricem as well as demand all of the things you mentioned. I would do both and would bargain really hard. If you have a broker, have the broker handle the negotiation.

Posted by: mkop at October 8, 2008 2:15 PM in response to cold feet? entering contract-negotiating?

Review these and make an educated decision based on numbers:

http://articles.moneycentral.msn.com/Banking/HomebuyingGuide/WhyRentToGetRicher.aspx?page=all

http://mysite.verizon.net/vodkajim/housingbubble/new_york.html

The graph shows what historically happened to house prices. Note that those who bought in 1988 didn't get their money back until 2002 (adjusted for inflation). The same thing as in the 1988 (if not much much worse) is very likely to happen now, while the stock market will bounce back sooner than house prices.

Crunch your numbers and make an educated decision.

Posted by: mkop at October 7, 2008 10:37 AM in response to Front Page Forum: Walk Away from Downpayment?

Those who blame the Bush administration for today's problems, please explain how Bush or his administration had anything to do with Main Street and Wall Street's irresponsible investments and dumb people taking on more than they can carry.

Posted by: mkop at October 2, 2008 12:40 PM in response to The heist of America

Pottedmum is probably Bette Cunningham or the owner of the house. On urbandigs dot com, the mortgage man (who is a regular blogger there) says that he is quoting a rate of 8% for a jumbo.

As I said before, I think it will go for 990K or maybe 999K to avoid the mansion tax. Paying 1.05 just doesn't make sense. Why would a buyer pay an extra 50K just to ensure a mansion tax? But then again, I'm not bidding on this house, so time will tell.

Posted by: mkop at October 1, 2008 7:35 PM in response to House of the Day: 208 Midwood Street

Personally, I don't see how comparables from a few months ago (i.e. 1.06) have much to do with the current state of the market.

If the buyers are not desperate and smart, they will look at the comparables and take at least 15% off. Again, this is a personal opinion, but home prices will be a lot lower a year from now, so sellers should wise up now if they have eligible buyers before it is too late.

As a buyer that has plenty of time to sit on the fence, I am very interested to see how much this house fetches in this market.

Posted by: mkop at October 1, 2008 12:16 AM in response to House of the Day: 208 Midwood Street

Looks like a nice house, but due to the market and the fact that it is one of the smaller houses in PLG, I think the price is a bit high. I think it will go for 990K or so (to avoid mansion tax).

The kitchen looks nice in the pictures, but is actually cheap ikea cabinets with wood veneer that is as thin as wallpaper. I also agree with wasder that the woodwork color throughout the house is not for everyone. Personally, I would have someone refinish all of the wood if I was to live in that house.

Posted by: mkop at September 30, 2008 2:47 PM in response to House of the Day: 208 Midwood Street

We use Oz Movers. They come in like gang busters, careful, super fast, and professional. They should be able to give you a quote over the phone.

Posted by: mkop at August 28, 2008 12:22 PM in response to Ballpark cost for move & tipping movers?

We found the situation to be the same as bayridgegirl. If you want to buy a shell, it is almost impossible to obtain a construction loan these days (you can't get a standard mortgage on a shell).

The only choice for us was to look at properties that were in bad shape, but inhabitable (meaning floors and ceilings in tact, kitchens, bathrooms, etc.). Even when the property is "inhabitable," in this market the problem is that the property won't upraise and your mortgage deal will fall through because of that. The best bet is to have cash for reno and enough cash for the actual purchase to cover any difference in the price and upraisal value. Estimates we received on gut reno in Harlem are in the 450-600K range, depending on the size of the brownstone.

Posted by: mkop at July 23, 2008 3:59 PM in response to Brownstone Shell question

No idea how to renew, but I know that that you cannot get a permanent one because it is meant as a transitional certificate while you do renovations and work towards obtaining a permanent C of O.

Posted by: mkop at July 1, 2008 3:25 PM in response to renewing Cert of No Harassment?

The ikea cabinets look good from afar, but not so great up close. Don't know exactly which line you are referring to, but I believe they are composit, not solid wood.

Posted by: mkop at June 20, 2008 12:43 PM in response to IKEA Kitchens

No pets means no pets (cats included). I must premise this by saying that I'm not a pet person. But also, that if you allow a cat for one apartment, you will be hard pressed to disallow other pets in the building.

If I were you, I would first ask them about the cat (before assuming that it is their cat, and not a visitor to the apartment who stopped by with his/her cat). If it IS their cat, I would remind them of the rider in the lease (no pets) and ask them to either vacate in 30 days (since they are in violation of the lease) or give the cat to another family. If you don't really care that much about the cat, then I would ask for an extra security deposit.

As a landlord, if you ignore this situation, then you waive any right to reforce that clause of the contract in the future. They will be able to successfully argue that you saw the cat and agreed to its presence (basically by doing nothing about it).

Posted by: mkop at June 12, 2008 12:38 PM in response to Tenants Have a Cat!!!

We are looking in PLG as well and have seen some of the places you posted. It seems from your posts that you have not walked around the neighborhood (as walking around and going to the blocks where some of these listings will likely answer your questions as to differences in price, etc.). In addition, you should make an attempt to go see these places and keep in mind that some of them (if not all) are overpriced.

Posted by: mkop at June 10, 2008 4:03 PM in response to Prospect Lefferts Gardens

5:16 is correct. You are out of luck if you are not immediate family.

Posted by: mkop at June 9, 2008 5:43 PM in response to Subletting and then assigning a Rent-Stabilized Lease?

Thank you everyone for your insight.

2:21, how does $200 per month on a garage (lets assume $600 per month on all three) translate to 100K extra on the price tag?

Posted by: mkop at June 7, 2008 12:12 AM in response to How Much is Commercial Space Worth?

NY Times says that a doctor's office cannot be used (legally) by another professional tenant (like an accountant).

http://query.nytimes.com/gst/fullpage.html?res=9D0CE3DD103EF93AA15751C1A967958260

It says:
"I own a four-family brownstone in a residential zone where a doctor's office is a permitted use for one of the units. Can this space be rented to another commercial use, such as for an accountant, or be used by the professional as a residence as well as an office? . . . Elliot Schuman, Brooklyn Answer: No. Vahe Tiryakian, a spokesman for the Department of Buildings, said the doctor's office cannot be rented to a commercial tenant."

If still true, the price of 218 needs to be adjusted accordingly. It may take a very long time to find a doctor for the space.

Posted by: mkop at June 5, 2008 6:52 PM in response to How Much is Commercial Space Worth?

3:34 Thank you for the info. Good to know about the parking issue. We just started looking in PLG after looking in Harlem for awhile and we are very serious (and tend to think that we are as good as it gets in terms of buyers in this market, with the exception of all cash buyers).

Since you live in PLG, what is the scoop on the cable issue in Leffers Manor? I can't seem to get a straight answer on this. Can we get cable?

Thanks in advance.

Posted by: mkop at June 5, 2008 3:49 PM in response to How Much is Commercial Space Worth?

I assume all of that goes up (insurance, electricity, etc). I even think that the mortgage rate goes up because it is treated as a two-family.

Posted by: mkop at June 5, 2008 12:50 PM in response to How Much is Commercial Space Worth?

Any brownstoner regulars care to opine on the price?

My incling is that it is still to high (considering a new bathroom needs to be added).

Posted by: mkop at June 4, 2008 8:57 PM in response to How Much is Commercial Space Worth?

The C of O says doctor's office and three garages (nice to see an accurage C of O). I think it is easy to use as a professional office of another type, not sure if the C of O has to be legally changed... On craigslist, people are asking from 2000-2700 for like offices.

Either way, do you think the asking price is in the range?

Posted by: mkop at June 4, 2008 3:26 PM in response to How Much is Commercial Space Worth?

We recently (only a few weeks ago) used Johann Grobler for a pre-contract inspection and we were really happy with him. He talks you through the entire inspection in lay man's terms. He is not an alarmist and will mention when something is common and knows the cost of repairs (he is also an architect). He also gave us a very thorough written narrative report, not just a check list. In addition, his price was very attractive.
His information can be found on:

www.grobler-inspect.com

Posted by: mkop at May 29, 2008 6:41 PM in response to home inspection?

Not unusual in my experience. I had to provide certified checks, it is not a money order, so they still have to present it. Just make sure the lease has a clause covering this issue, that the agent will hold the checks in escrow until the fully executed lease is returned to the renter.

Posted by: mkop at May 22, 2008 4:43 PM in response to Agent wants fees, security, first month etc. BEFORE I receive lease?

Thank you denton and Lauren. We estimated 100-150 per sf. Glad to hear our estimate was within reason.

Lauren, how long did the conversion take? Did you work with an architect or did you rely on a structural engineer and a general contractor? Thank you in advance.

Posted by: mkop at May 6, 2008 7:35 PM in response to Cost of Conversion: General Estimate

Apple Mortgage is not theapplebank
Apple Mortgage is located on in midtown, on 44th and their website is applemortgagecorp

Posted by: mkop at April 10, 2008 5:55 PM in response to Jumbo Mortgage Rates...

4:26 and 4:27, are you a mortgage broker for another company? Apple Mortgage definitely does jumbos on multi-families. We had several discussions with them about rates on a single family versus two and three-family.

Posted by: mkop at April 10, 2008 4:59 PM in response to Jumbo Mortgage Rates...

The quote was this Monday and was for a single mortgage (not a combo) with no points (or so we were told). I generally found that major banks don't always give competative rates (have a friend working at a major bank). We are working with Apple Mortgage.

Posted by: mkop at April 10, 2008 3:51 PM in response to Jumbo Mortgage Rates...

For a jumbo mortgage on a 3 family, with a 20% down payment and credit score above 700 (plus a good debt to income ratio) we were quoted in the high 6's and low 7's. Definitely not 8.

Posted by: mkop at April 10, 2008 2:09 PM in response to Jumbo Mortgage Rates...

Slopefarm, good advice on asking for a list and time on the market. The broker is our broker, so he wasn't trying to sell us anything at the time, he just suggested that a two family may be better. I guess the mortgage rates are also lower on a two rather than a three.

Posted by: mkop at April 9, 2008 4:15 PM in response to Two Family v. Three Family

Adam, let me ask you a question: if you (as a mortgage broker) review financials for one of your clients and miss something important that you shouldn't have missed, and they have some sort of loss as a result, would you expect your client to be able to sue you for professional negligence? You may be happy to cast an experienced eye over financial statements and give sort of an "as is, no promises" view, but I seriously doubt you consider yourself to be taking on the kind of professional duties that a doctor takes on when performing surgery, or a lawyer when drafting a contract, or an accountant when reviewing financial statements (or for that matter a mortgage broker when arranging a mortgage). Some lawyers may inappropriately hold themselves out as able to provide what is effectively financial advice, but they should not do so. It sounds like this lawyer is just being honest by telling the client that if he wants that kind of professional advice he should engage the right kind of professional.

BTW I deal with financial statements and complex financial issues on a pretty much daily basis and regularly have to walk the line between providing legal advice and financial advice (obviously I stay on the legal side).

Posted by: lechacal at April 10, 2009 1:42 PM in response to Attorney Question

I should follow all of this up by asking if there is any lawyer who deals with small real estate closing who can provide a view as to how they would view their professional duties and competence in this situation. I deal with larger corporate transactions and admit I am not familiar with "on the ground" practices for these types of matters.

Posted by: lechacal at April 10, 2009 1:52 PM in response to Attorney Question

N attorney who has done these types of deals should have enough confidence to stand by his/her financial.s

My attorney did not advise me as to my rehabbed condos financial because I am a trained in finance and do building financial for a living.

My attorney asked me about stuff. ALmost everyone who bought into my condo had no idea that 80 percent of the revenue came from common charges when it should be about 100 percent.

The reason our building was 80 percent is because we have a sprint antenna that provides 20 percent to our budget in rent.

ANyone looking at scedule A and Schedule B can find all this info out.

If anyone would like me to review their offferigng I would be glad to for a small fee.

Posted by: bonsavant at April 10, 2009 1:58 PM in response to Attorney Question

N attorney who has done these types of deals should have enough confidence to stand by his/her financial.s

My attorney did not advise me as to my rehabbed condos financial because I am a trained in finance and do building financial for a living.

My attorney asked me about stuff. ALmost everyone who bought into my condo had no idea that 80 percent of the revenue came from common charges when it should be about 100 percent.

The reason our building was 80 percent is because we have a sprint antenna that provides 20 percent to our budget in rent.

ANyone looking at scedule A and Schedule B can find all this info out.

If anyone would like me to review their offferigng I would be glad to for a small fee.

Posted by: bonsavant at April 10, 2009 1:59 PM in response to Attorney Question

Lechacal- When I state a mortgage broker/banker should be able to review financials I mean a coop with bad financials will not be able to obtain financing. The loan would not be able to get approved if the financials are in bad shape. If the financials are good enough for the bank they should not affect marketability. Anything outside of that is your own risk of buying shares in a corporation and I or the bank would hold no responsibility.

Let's speak with an actual real estate lawyer that does these transactions before jumping to conclusions. The vast majority of RE lawyers that I deal with review the financials with the client. Hey I only do this for a living.

FYI And I am a Mortgage Banker not a broker. I am actually responsible for the loans that I make.

Posted by: Adam Dahill at April 11, 2009 1:13 PM in response to Attorney Question

Brooklyn Bridge Realty
Angela Ruggiero

Posted by: christopher at May 16, 2009 12:42 AM in response to Help Finding a Good Bklyn Broker

Thanks for all the great feedback everyone

Posted by: MoneyForNothing at May 16, 2009 11:34 AM in response to Help Finding a Good Bklyn Broker

Sorry - late to the party on this - We used Gabriele Sewtz at PDE. She worked for us as a buyer's broker. Rickintheridge is right that all brokers are seller's brokers, but I found Gabriele to have tremendous integrity, and I wouldn't say that lightly about someone in the real estate business. Can't recommend her highly enough. gsewtz@elliman.com or 718 360 7326.

Posted by: UnprotectedWrecks at May 17, 2009 9:52 PM in response to Help Finding a Good Bklyn Broker

I am an actual, on the ground, real estate lawyer and have done over 1,000 closings in NY and NJ during the last 6 years.

When I represent individuals buying a condo or a coop I let them know the limits of my expertise, as Sloper5's attorney did. I believe in being frank with my clients and that I am not an accountant, but know what to look for in terms of the typical financial arrangements of buildings under common ownership. As part of my due diligence, I tell my clients what red flags I see, but when they are particularly concerned I advise them to spend a hundred dollars to get an accountant to review it as well.

I also think it is fair to charge my clients a fee based on my expertise and services. Thus I don't charge as a "one stop shop" for detailed financial analysis.

If you want an attorney who has additional expertise outside of Real Estate Law, you should look for someone with a dual accounting degree or an L.L.M. (legal master's degree) in Finance.

Good luck Sloper5! I hope by now you are well on your way to buying a great home!

Posted by: LegallyBevin at May 19, 2009 12:17 PM in response to Attorney Question

Brokers are denial. Prices have further to slide. I would wait unless you find your absolute dream home that you want to stay in forever, and you get a deal on the price (at least 15% below ask, although my target is more like 20%, since asks are still so high).

Posted by: Miss Muffett at June 8, 2009 5:54 PM in response to State of Market?