What's It Really Like To Be A Buyer In Manhattan

Actually experiencing what my clients go through has been a total revelation. I have new appreciation for my clients’ angst while looking for a new home. The process has made me a better agent, but --- OUCH! It is really painful!

As an experienced agent, I know what to expect. Despite there being fewer surprises for me personally, the process remains difficult and archaic. Seeing the market from my family’s perspective has given me additional insight. Here are my observations:

Looking for properties on line is difficult - Don’t fall in love on line. On line listings that seem too good to be true usually are. Many are no longer available because they are not updated as frequently as they should be. Certain listing databases are better than others and unfortunately, there is not one truly reliable spot for buyers to search for accurate, up-to-the-minute listings. Once a buyer finds a listing, the fun begins. Why there are no uniform rules for measuring square footage is beyond me. Sellers and their representatives lie about square footage the way they lie about their ages and weight, except that square footage us almost always estimated high.

Looking for properties in person is no easier - Why is it so difficult to show properties? In the suburbs, lock boxes make showings a breeze. Coordinating schedules of Manhattan sellers, listing agents and buyers is a full time job.  Open Houses would seem to be an easy solution, but they’re not. They often require appointments; see the paragraph above. Waiting in the lobby to be escorted upstairs is beyond annoying, especially when our car is illegally parked. Some Open Houses are three ring circuses, akin to shopping at Zabars on Sunday mornings or at Saks the week before Christmas. No thank you.

Know the finances - “Cost” versus “Price”

Price is obviously a significant part of the cost equation. But there are other pieces as well. Assuming one is financing, interest rates play a huge part in determining monthly cost. Timing a purchase to take advantage of a dip in the market and low interest rates is tricky, but today’s buyers have been lucky; real estate has been and continues to be “on sale” with prices discounted off the highs of a few years ago and interest rates at or near all-time lows.
The more confusing piece of cost is comparing the monthly carrying charges associated with each of the properties being considered. Variations result from building size and level of service, but many other factors need to be examined as well. In coops, maintenance charges vary as a result of a building’s real estate taxes and underlying mortgage. Similarly, there are huge discrepancies between various condos’ common charges and real estate taxes. Quite frankly, there is little rationality to variations in real estate taxes; two buildings can look alike, but the taxes can be profoundly different.

Be flexible - Once you’ve determined the amount you’re comfortable spending, both in terms of down payment and monthlies, remember the other costs: bank and attorney fees, title charges, moving expenses and miscellaneous closing expenses. Know the tax consequences of a transaction. In New York City, there are income taxes to consider, as well as possible transfer taxes (for new construction projects, especially) and flip taxes.  Have your lender’s pre-qualification letter and your personal financial statement ready. A savvy seller will want to examine them as part of any purchase offer.

Educate yourself about your options - Everyone should choose a real estate expert for representation in a purchase. Although no one can look into a crystal ball or read tea leaves to accurately predict the future (no offense intended to anyone…), an expert’s experience and insight is invaluable. A real estate professional will understand your priorities and simply and effectively explain your choices. Once an option is selected, your agent will strategize on a plan to help you accomplish your goals. He or she will accompany you as the process evolves and help you make adjustments as necessary to ensure the best possible outcome. Your agent will also negotiate on your behalf and guide you through a very complicated process.

Act quickly and decisively - Well priced properties, especially those in good condition and well located are always in demand. It is not unusual today for there to be multiple bids and sale prices above ask for well marketed homes. From a distance, we witnessed quite a few bidding wars while looking for properties, but chose to sit them out. This market is not for the faint of heart.

Closing comments - Like many buyers, we changed our minds about moving and aborted our search but only after viewing hundreds of listings on line and visiting dozens in person. Unfortunately for my readers but luckily for my family, we missed out on the drama of negotiating a sale, reviewing a contract, doing our building due diligence, and undergoing the loan application process. We didn’t need to prepare and submit a Board package, experience a Board review and interview, time a closing or coordinate a family move. Undergoing any of these experiences as a principal, including the earlier activities of searching for a home, is way more anxiety provoking than acting as an advisor, consultant and agent. Here’s my sage advice: don’t try navigating the process alone; hire the most competent and experienced professional you’re comfortable with. And while you’re at it, dust off that crystal ball.

Manhattan Real Estate / Michael Shapot / Keller Williams NYC.