Advice on Searching for a Brownstone
Hi, I’ve searched the forum archives about this, but I haven’t found anything recent or maybe my question is just too broad–so sorry if this is repetitive, and thanks in advance for any advice. We’re just starting to search for a brownstone, and wondering if people have any advice about the process (especially how it…
Hi,
I’ve searched the forum archives about this, but I haven’t found anything recent or maybe my question is just too broad–so sorry if this is repetitive, and thanks in advance for any advice.
We’re just starting to search for a brownstone, and wondering if people have any advice about the process (especially how it might be different from looking for a coop or condo)? Are there red flags we should look for that may cost money down the road or potentially compromise the mortgage process?
Are there things to look for during the inspection (that wouldn’t be obvious)? Or anything you wish you would have done while looking? Is it better to go around to all the listings with a real estate agent? We’ve just started and have gone to some open houses but wonder if there’s a better way.
I know these are a lot of questions — thanks so much!
Thank you all for the excellent advice! I already feel so much better prepared for this.
check nyc dep for open violations. facade, sidewalk, etc. check nyc HPD if more than 3 units. check propertyshark for lis pendens or any other legal action pending affecting title.
look for ceiling / wall wet stains, perhaps that have been recently painted over. ask how old roof and mechanicals are, annual heating costs, what is original to the house and what has been upgraded. ask about history of water in basement if you are considering living space there. check out the electrical panel, see what kind of power service is coming in, and ask if sewer or water mains have ever been upgraded. check if there is a tree in front of the house – if yes you will possibly be roto-rooting 2x a year. (no biggie only a few hundred a year but just expectations).
check sidewalk – if uneven by more than 1/2 inch you may need to replace when city finds it or someone complains (it happens). check brickwork brownstone of other facade, ask when the last time it was upgraded / repaired.
verbal offers obviously reflect what broker represents about the property, your inspector will hopefully find the truth.
if you are looking in brownstone brooklyn with a “buyers broker” you may be met with cold shoulder syndrome. brokers do what is in there best interest and many times don’t even tell / ask seller things if its not in their best interest. never ever tell a buyers broker how much you love a place and what is your highest offer. better yet, don’t let on to any broker anything ever, buyers or sellers.
make your offer in writing, and if broker tells you they have another offer at x, tell them you might like to counter after seeing a written offer. if you would love to severely overpay and bid against yourself, don’t rigidly stick to this. and oh, will they try to give you every excuse in the book. you must be willing to make a very competitive offer in this market but walk away at nonsense. your competition isn’t quite as sophisticated as you think.
beware any offer over asking price may not appraise for the loan -and assume the appraiser will be a moron. the comping process is not like a condo where units in the building are considered – they’ll pick one next to the city dump despite you bidding on PPW.
you’re not going to get a “deal” unless you’re looking at something completely hairy (structurally or legally or tenant related), something with commercial space, or something that isn’t on the open market. expect to pay a fair price in this market and you won’t beat your head against the wall for years.
good luck!!
Much of what GA has said above is correct.
But not for the neophyte.
Most important is grasping what you know and what you don’t.
Try to “suss” the possible conflicts of interest. Even supposedly “disinterested” parties can be incompetent.
The father of a friend in the construction business is on your side. A home inspector may be clueless, forget his credentials. Normal paranoia isn’t enough when considering such a large purchase.
If we knew what our teenagers were going to be like, we certainly would never have children. So obviously some leaps of faith are necessary or we’ll all spend our lives sitting on the couch wearing a helmet.
I am in the “business” and I can assure you that any renovations completed by a contractor for the purposes of selling a property… run the other way. His every incentive would be to cut corners, and that’s not good.
Good luck
Grand Army’s advice is good about signs of problems to look for. I would also add, smell around in the garden level, English basement or cellar for mildew and mold smells. Many houses will smell funky there but really damp baseboards or walls in those spaces or strong smells may mean a problem that’s been difficult for previous owners to fix. It should also raise red flags if you smell strong bleach odors. If they cleaned with bleach they may be covering something up. If a house interests you be sure to see it on a rainy day. If the broker or seller says no then walk away. It’s not legal for them to do this, but NYC brokers will cancel open houses or not show houses on rainy days when a house tends to be leaky.
Sorry if this is too much, but the other important thing (to my mind) is — once you’ve found a place you’re seriously interested in — to do really thorough due diligence about the location. Street traffic, noise, nearby commercial establishments, bus routes, neighbors, nearby vacant lots that may become development sites, etc etc. You can never find out everything ahead of time but you’d be amazed how many people don’t bother to check anything out. Then they’re horrified to discover they’re living next door to a private school for trumpet players!
1. Know your budget and stick to it. Develop two scenarios — one for a house in movie-in condition; the other for a house needing at least some renovation.
2. If the house needs renovation, bring your architect before you make an offer.
3. Look at as many houses as you possibly can in order to educate yourself (will help you develop a baseline regarding the condition you’re OK with and will teach you much about functional brownstone layouts). Don’t bother with a broker. Even consider looking at houses/neighborhoods outside your price range just to develop your eye.
4. To assess structural condition, see if the staircase is pulling away from the wall; see if the floors are straight; look up at the ceiling of the wall that divides the front room from the rear room on each floor and see if that is straight; see if the brick work in the rear wall has any irregular interruptions or repairs; see if the lintels over the windows on the rear wall are straight; check out the condition of the windows including the frames; look carefully in the cellar for signs of flooding (water stains on the walls); check out the columns in the cellar; take note of how “bouncy” the floors are (may indicate beam damage); water stains on the ceilings of the top floor indicate roof leaks.
5. Regarding the mechanics, look at the boiler/furnace and ask how old it is; turn on the faucets, especially at the top of the house to test for water pressure; look at the panel box; ask about average heating and electricity bills(maybe not on the first visit!) — this will tell you much about the building’s energy efficiency.
I think part of your budget should be a cash reserve that should take into account the results of the inspection. We keep at least $20k in cash account because we have a very old furnace and the house is 100 years old so plumbing tends to crumble every now and then. Lucky for us our roof is solid, if it weren’t, I’d probably want a line of credit or more liquid assets.
Maintenance needs to be part of your annual budget, not just mortgage, insurance and taxes. I don’t know what’s average but we’ve spent $10,000/year on our building in the past two years, but it’s not been renovated since the 1950s except for a new roof. One day we’ll do a larger renovation, and presumably after that, we’ll spend more like $3-4k/year on projects.
The smart thing is to set aside that money automatically. You may get lucky with some quiet years, but use that as an opportunity to save for a rainy day.
You want to know how sound the building is structurally, and the condition of the mechanicals (boiler, plumbing, electricity)and the exterior. Initially the broker should be able to provide you with the basics (when stuff was upgraded, etc, and you will learn a lot with the inspection prior to signing a contract.
Then it’s a question of how much you like the interior and what you would want or need to change.
You don’t need to go to listings with a real estate agent, but if you have one you like, you list them on the sign-in sheet at the open house and they can negotiate on your behalf.
Bear in mind it’s work having an old house. Even if you buy a place that’s been meticulously restored, there’s annual maintenance and repairs. It’s a big change from apartment living!