No Comments

5 Essential Steps to Sell Your Apartment in NYC

 

So, you’ve decided to sell your home in New York City. Congratulations! While this is typically an exciting time, it can also be overwhelming as there is much planning and effort that goes into selling a home. Thank goodness NYC is among the most investor-friendly cities in the world for residential real estate, with homes perennially appreciating in value. This means you are likely to sell your NYC apartment at a higher price than you originally paid for it. Of course, market conditions do change from time to time, alternately favoring buyers or sellers. But the long-term trajectory is one of rising value.

Whether you are looking to start a family and need some more space, moving to another city, or simply moving from one neighborhood to another, the end goal is the same: get the highest price in the shortest time frame possible. Doing this effectively requires a smart strategy.

Following are the 5 Essential Steps to Sell Your Apartment in NYC, along with expert tips to help you maximize your sale:*

  1. Get a Good Team Together
    While it is possible to market your property on your own (i.e, for sale by owner), research shows this is not a smart strategy, as it typically takes longer to sell and yields a lower price. Rather, the surest way to speed the selling process and command top dollar for your property is to work with an experienced broker and real estate attorney. Your broker will ensure your property gets maximum exposure on all relevant advertising platforms and within their own buyer network, as well as provide pricing and negotiation expertise. In fact, a good agent will give you expert guidance at every stage of the sales process. Your real estate attorney will handle any potential legal issues that arise. This could include any title claims against the property, outstanding loan payments that must be addressed, or sorting out any complicated paperwork. Your team is required by law to operate in your best interest at all times, which should make your home-selling journey seamless and worry free.
    _
  2. Effectively Market Your Home
    When it comes to marketing your home, nothing is more important than effective pricing. List your home too high and nobody will call, which in itself causes several problems. The longer your property is on the market without a sale, the less desirable it becomes and the less leverage you will have in negotiation. List it too low, and it could cost you dearly in return on investment. That said, the most common and effective pricing strategy is to list the home just slightly below its appraised value. This will help to generate a steady flow of prospective buyers and can lead to competitive bidding that raises the price considerably.It is also essential to stage your home for marketing photos and showings, including any simple renovations known to help attract buyers. Expert advice is critical here, as some upgrades are worth the time and money, while others are not. As a general rule, you’ll want to sell the home as is, but with more appealing decor. If you could only do one thing to upgrade your home … paint the walls. Nothing freshens up a home more than this. You will also want to declutter, remove all photos and other personal effects, and use very neutral but modern furnishings (which you can rent if necessary). You can learn more about effective staging here.Your agent will also help you get maximum global advertising exposure, including listing your home in the OLR database, StreetEasy, Zillow, Trulia, PropertyShark, the broker’s website, social media, email campaigns and more. Your agent will then help qualify buyers and conduct showings and open houses.
    _
  3. Accept an Offer and Negotiate Contract
    Once any offers come in, your agent will help you move the sale into the contract phase. Good real estate agents take their fiduciary responsibility seriously. They will not only try to negotiate in your favor, but will also use proven tactics to get it done. Strategies such as “price anchoring” and negotiating in person rather than on the phone are proven to yield better results. A good agent will have well-developed negotiation skills specifically suited for NYC real estate transactions. Moving to the contract phase is a significant step forward in selling your apartment, but it is not yet a done deal. Once in contract, a buyer will typically request a Home Inspection, which could affect the deal should there be any surprises. If the buyer will be taking out a mortgage, the bank will request a Property Appraisal, since they only lend money based on appraised value. This shouldn’t affect the deal, however, since most appraisals come in relatively close to the contract amount.
    _
  4. Await Board Approval
    The final hurdle to selling your home is awaiting your buyer’s Board Approval, which is required by both co-ops and condos (though co-ops are notoriously more stringent). At this stage, the buyer collects all the required financial documents (which can vary by property), including tax returns, proof of income, income-to-debt ratio, etc., and completes and submits the Board Package. If your buyer has been forthcoming throughout the process, this should go through without a hitch. Reasons for being turned down include such things as: the buyer doesn’t have enough money, they lied, they have a weak job history, or the deal itself is deemed unfair, among others.
    _
  5. Schedule Closing
    The Final Walk-Through and Closing are typically formalities. It’s a safe bet at this point that the deal will now close, although it won’t be official until the final forms are signed on closing day.The final walk-thru is the buyer’s last chance to see the unit before closing and confirm that nothing has significantly changed in the unit since they signed the contract. The Closing itself includes representatives in fancy suits, mounds of paperwork and lots of check signing, as this is when closing costs are paid and the deed to the property is exchanged. While there is typically a frenetic energy in the room, the day is not a stressful one. Rather it is typically exciting, relieving and joyful all at once.

 

Selling your apartment in NYC is a journey that can take several months to complete. By following these 5 essential steps, you’ll be well on your way to a successful sale.

For more information on selling your apartment in NYC, or any real estate questions you may have, contact Batra Group at (646) 202-1877

No Comments

The Difference Between Condos and Co-ops

 

Buying a home is an exciting journey, especially in the capital of the world. For first-time New York City homebuyers, however, there is typically much to learn before the search even begins. Not only do property values and local flavor differ from borough to borough, but also from neighborhood to neighborhood and block to block.

Perhaps the best example of how unique the New York City market is lies in the types of housing it sells – primarily condos and co-ops. Most people are familiar with condos and use the term to describe any apartment for sale within a multi-unit property. But co-ops can also be described this way. And while co-ops are relatively scarce worldwide, they make up 75% of homes for sale in New York City. So it’s more than likely than not that you will come across one in your apartment search. So what are they exactly? And how do they differ from condos?

Following are the key differences between condos and co-ops to help you better prepare for buying an apartment in New York City:

 

Condominiums

When you buy a condo, you become the owner of that specific property. You generally have jurisdiction over what you do with the property, so long as it is within the city’s zoning laws and condo board rules. Want to add or remove a wall? Change the flooring from carpets to hardwood? Maybe upgrade the kitchen and its appliances? These options are all available to you as the owner of the property.

Condos tend to more expensive per square foot, making them more costly overall than co-ops. But they are typically easier to finance, as banks prefer them. Both condos and co-ops typically require a 20% down payment, although some banks require 25% or more for co-ops. Condo fees are usually lower, while property taxes tend to be higher. The tax advantages of owning a condo or a co-op are about the same. All said, the overall cost is 10-40% higher for condos, but that also typically comes with a higher return on investment.

 

Cooperatives

With co-ops, you are not actually buying a piece of tangible property. Instead, you are buying shares of a corporation that owns the building. Think of it as if you’re buying stock in a company. The actual size and price of your unit determines your share, but you still don’t own it as your individual property. This has large implications for you as a buyer, as your actions as a resident are limited by the collective co-op board of the building. This means that the executive board has a say in what you do with your unit, requiring you to adhere to the building’s rules.

While this may appear to be constricting, there are actually several advantages in having a co-op board. The board is there to ensure the stability of the building. Their responsibilities include keeping turnover down, screening tenants, and taking care of simple maintenance work. This can be very appealing, as you’ll have fewer concerns about neighbors and maintenance.

Co-ops tend to be cheaper per square foot. They typically offer buyers more control as an individual shareholder and often have lower closing costs. It is typically a bit harder to obtain a mortgage for a co-op, with some lenders requiring higher down payments. Monthly fees also tend to be higher and can include payments for the building’s underlying mortgage, property taxes, amenities, maintenance, utilities and security. Property taxes are typically lower, whitle tax benefits are about the same.

 

Summary

  • While condos offer more autonomy and a better return on investment, their higher cost and lower inventory makes them less popular than co-ops.
  • It is likely that you’ll come across many more co-ops throughout your home buying search, as they make up 75% of NYC homes for sale.
  • By taking the time to understand the differences between condos and co-ops, you’ll be more prepared to work with an agent to find the apartment that’s right for you.

 

For more information on condos, co-ops or any real estate questions you may have, contact Batra Group at (646) 202-1877.

No Comments

Buying vs. Renting an Apartment in NYC

 

It’s the age old question. Does it make more sense to buy or rent an apartment in New York City? The answer is a personal one and depends largely on the time and money you have to invest.

Importantly, New York City is among the most expensive places to live in the US, second only to San Francisco. According to 2019 Miller Samuel Reports, the median rent for a one-bedroom is $3,500 in Manhattan, $2,852 in Brooklyn and $3,000 in Queens. The median purchase price is $1,075,000 in Manhattan, $765,000 in Brooklyn and $550,000 in Queens. For most NYC residents, the option to buy just isn’t on the table. But for those in a more favorable financial situation, the question of buying vs. renting is an important one that can significantly affect their financial health.

Here are 3 important factors to consider when deciding whether you should buy or rent an apartment in NYC:*

  1. Short vs. Long Term
    If you only plan to stay in your apartment for a couple of years, and you don’t have a spare million dollars for an all cash deal, renting is the better option. Roughly 5.4 million people (63% of residents) in New York City rent their homes, so you’ll be in good company. Not only is it more cost-effective for the short-term, but it also saves you the effort of the 3-6 month journey to buy and then again sell your home. If you were to buy, you would be just two years into a 15- or 30-year mortgage, which wouldn’t have built enough equity to make money in the transaction.
    _
  2. The Tipping Point
    When renting an apartment, there comes a time when the cost of renting exceeds the cost of owning. StreetEasy calls this the tipping point, which in New York City can take an average of 5-6 years to reach. If you do plan to stay in the same apartment that long, and you do have the funds, buying is the smarter option. And this is true not only for the cost but also the equity. Each mortgage payment is an investment in real property that you can sell or borrow against in the future, while each rent payment is money you’ll never see again. A great way to determine the tipping point for your apartment is to use a Buy vs. Rent Calculator.
    _
  3. Money & Mortgages
    Some people find themselves just at the borderline of being able to buy. They may have some or all of the required down payment (typically 20%), a good job and decent credit. In this case, you really have to sort through the numbers. For example, if you are looking to buy a home worth $800,000, the required down payment would be $160,000. Now there are a number of city and federal programs that offer assistance with down payments, particularly for first-time homebuyers. In some cases, they can reduce it to as low as 3.5%. However, this will likely affect the mortgage rate you get and whether you will be required to buy mortgage insurance. Of course with a lower down-payment the balance will be that much higher, which typically results in higher monthly payments. It’s not unlike being offered a credit card with an extremely high APR rate because of a low credit score. The question is whether you will be in over your head or can find a way to make it work. Many pundits agree that if you don’t yet have the money needed up front, it is probably a sign that it’s too early for you to buy.

 

There is no one-size-fits-all solution to decide whether you should rent or buy an apartment in NYC. But by taking these expert tips into consideration, you will be well on your way to making the decision that best suits your needs.

For more information on renting or buying a home in NYC, or any real estate questions you may have, contact Batra Group at (646) 202-1877

No Comments

5 Reasons to Buy an Apartment in Manhattan Right Now

 

Buying a home in Manhattan just got a lot easier, thanks to a record turnaround in the market not seen in nearly a decade. In fact, recent market activity indicates that 2019 has become the year of the buyer. You may want to hold off your apartment search in the outer boroughs and find your steal of a deal right here in the heart of the city.

Here are 5 reasons why you should consider buying an apartment in Manhattan right now:

  1. More Available Units

While sellers have had the edge in negotiations for years, recent data suggests that transactions have been slowing down. According to the 4Q 2018  Miller Samuel Marketing Reports, Manhattan experienced a 6% decrease in median sales price year over year, with a 12% increase in inventory. And this past quarter 1Q 2019 marked the 6th consecutive quarter of year-over-year sales decline, the longest streak since 2008-2009.

There are many factors that may have influenced this drop in sales, including affordability concerns, the disconnect of the housing market from the robust overall economy, and the new tax law. Regardless of the reason, the fact remains that Manhattan has a surplus of units available, giving buyers the most favorable market in a decade.

  1. Dip In Prices

As one might expect, the result of an increase in available units throughout Manhattan has lead to a decrease in average payments made by buyers. According to the Q4 2018 Miller Samuel report, average sale prices for units dropped 3.6% year over year, going roughly from $2,000,000 to $1,900,000.

  1. Strong Local Economy

While high inventory and low prices would suggest a softening economy, this is not the case. As cited in the New York Quarterly Economic Update, Q4 saw an increase in economic growth throughout the entire city. Average hourly earnings are up with solid job growth across most industries. This should be encouraging to those looking to buy or rent in Manhattan, as solid financial footing makes it easier to commit should the time come.

  1. Low Interest Rates 

Mortgage rates are already historically low. But with the Federal Reserve’s recent announcement that interest rates will not rise through the entirety of 2019, we can expect mortgage rates to dip further. According to Fortune (March 21, 2019), the 52-week low drop rate in average mortgage rate fixed for 30 years is 4.34%, making this the best time in years to be a buyer. 

  1. Global Economic Uncertainty

According to Bloomberg, the Global Uncertainty Index, a measure of unpredictability in 20 countries (including US, China and Eurozone), reached a record high in December 2018. This has led to fewer transactions by foreign investors in New York City – particularly those from China, the UK and many South American countries where economies are collapsing.

In fact, China’s recent crackdown on money leaving the country has had a significant impact on NYC realty, as China had been a key foreign investor in Manhattan for years. This translates into more opportunity here at home.

Manhattan remains one of the most dynamic residential markets in the world. By all indications, now is the time to buy.

For more information on buying an apartment in NYC, or any real estate questions you may have, contact Batra Group at (646) 202-1877.

No Comments

4 Ways Homeowners Can Reduce Indoor Allergens

 

With spring allergies on the way, it’s important to take extra precautions to keep the scratchy, sneaky, watery-eyed culprits at bay. By following these tips recommended by the Mayo Clinic, you’ll be well on your way to an allergen-free home:

 

  1. Switch to Hardwood Floors

Since carpets trap dust, hair, and other irritating particles, it’s best to switch to hardwood or linoleum floors. If you can’t remove your carpets, try switching to low-pile carpeting and clean them as frequently as you can with a vacuum.

  1. Change Out Upholstered Furniture

Like your carpets, your furnishings can easily collect allergens. If you have any upholstered couches or chairs, consider replacing them with leather pieces, as they’re much easier to clean.

  1. Clean Your Air Filters

If your air filters aren’t properly taken care of, they’ll be circulating dirty air throughout your home. To prevent this from happening, clean your filters regularly. Also make sure that there isn’t anything blocking your filters so that they can be working as efficiently as possible.

  1. Stick to a Weekly Cleaning Routine

Arguably the best way to remove allergens in your home is to have an effective weekly cleaning routine. What needs to be done will vary from home to home, but some of the staple recommendations would be to wash any curtains, vacuum the floors, and dust any appliances. By sticking to this routine, you’ll have a better chance of removing most of the culprit particles in your home.

No Comments

6 Expert Tips to Land Your Dream Rental Apartment In NYC

 

If you’re like most NYC apartment seekers, you’ve likely already started your search online, only to discover how quickly the market changes from day to day. In fact, New York City is among the most competitive places in the world to land an apartment, with the most enticing listings getting applications within hours of being posted. This is particularly true during peak summer months. But have no fear. By taking the following steps, you’ll be well on your way to beating out the competition and landing your dream rental apartment in New York City.

 

  1. Do Your Research

Before you start your search, it is essential that you know the lay of the land. Take the time to learn about each neighborhood and all the various apartment types. Do you want to live in a doorman building? Perhaps one with a fitness center and bike storage? This process will take some time and care, as there are multiple factors to consider, most importantly your budget. It is also important to keep an open mind throughout your research, as you might be surprised by what you find. By doing this upfront, you will have a better sense of the market, allowing your dream apartment to come into better focus.  

 

  1. Know What You Want

After doing your research on what is available, the next step is to determine which of the features you looked at are necessary to your life in the city. While it is certainly possible to find an apartment that has everything you want and is within your budget, it more likely that you’ll have to prioritize your needs and go with an apartment that most closely matches them. Therefore, you will need to distinguish your must-haves from the features you would be willing to compromise on. These vary from person to person, but it is important to figure this out in the beginning, as you’ll be better able to spot a perfect listing when you see it.

 

  1. Align With an Experienced Agent

Once you have narrowed your search, it is recommended that you speak with an experienced real estate agent. While it is possible to avoid this step in the hopes of saving on broker fees, it is usually more trouble than it’s worth. “No fee” apartments typically have a higher monthly rent to compensate for having no fee. That said, there are several key advantages to using an agent. First, the agent will better understand the market, giving you expert insight into what you should pay attention to throughout your search. Additionally, the agent will have access to all available listings, not just what is advertised, thus increasing your odds of finding a place you love.

 

  1. Make a Good First Impression

While this advice may seem cliche, it remains extremely relevant when looking to secure an apartment. Acting in a professional manner can help you stand out, especially if you are in a position to meet the landlord upfront. At the very least, it ensures you will not be taken out of the running. From a strong handshake to dressing professionally to responding in a timely manner, a good first impression goes a long way.

 

  1. Have Your Documents Lined Up

Your  rental application will include multiple documents, including your past rental history, your credit history, proof of income, and more. These documents will likely be combined with a traditional rental application, as seen here. By having these documents prepared, along with your checkbook in hand, you will be ready to apply on the spot when the opportunity presents itself.

 

  1. Be Ready To Commit

This, above all else, might be the most important measure to consider. When looking to rent in New York City, the best thing you can do is be ready to commit to an apartment on the spot. If you decide to wait, even for one day, your listing might be gone. This is especially true during peak summer months. While it is important to make sure that the listed apartment is the one you want, it is in your best interest to act quickly.

 

By following these steps, you’ll be well positioned to land your dream rental home in New York City.

Ready to start your search? Call Batra Group today at (646) 202-1877.

No Comments

5 Ways To Make Moving Easier For Your Kids

 

Moving to a new home is a life-changing event typically accompanied by strong emotions. For all the excitement and optimism, there can also be a fair amount of anxiety. This is because two things are taking place simultaneously. You are saying goodbye to the familiar and hello to the unknown. This transition can be particularly challenging for kids, who often need extra support to cope with the change. Here are 5 ways to make your move easier on the kids and unite the family in optimism:

 

  1. Take Them on a Tour

For some kids, the anticipation of what their new home will look and feel like can be stressful, especially if it’s in a far away place. All sorts of questions can pop up in their minds – from the size of their new bedroom to whether they’ll make friends in the neighborhood – which can keep them fearful of leaving their old home behind. To help reassure them, take them to your new home before you officially move in. By walking them through the rooms and driving around the neighborhood, you will be familiarizing them with what their new life will be like, showing them that everything will be just fine. If you are unable to do so for any reason, try sitting down with them and showing them pictures or taking them on a Google street view tour.

 

  1. Allow Them To Express Themselves

Coping with change requires accepting a new reality and reframing it in a positive light. Of course, most kids don’t have such coping mechanisms in place just yet. They will typically need to work through some difficult emotions first. As your children try to come to terms with leaving their friends, school, and extracurriculars behind, along with the place they’ve called home for years, they can react in a variety of ways. As parents, it’s important to understand that this can be difficult and allow them to express their feelings in a healthy and constructive way. Afterward, you can help them reframe the move by celebrating the positives.

 

  1. Make Sure They’re Involved

Kids typically have little say in the decision to move, which can leave them feeling powerless. You can mitigate this by making sure your child is actively involved throughout the moving process, even if they are just responsible for making small decisions. Whether it’s choosing the color of the walls in their room, packing their clothes a certain way, or giving their input on what they would like to have in the new place, involving your children in the decision making process will make them feel better about the move.

 

  1. Create A Travel Pack

One of the best ways to provide a sense of comfort for your kids is to create a travel pack together with all of their favorite things – including toys, games, stuffed animals or other items they can keep in a backpack for the trip. Not only will this give them a sense of control, but they will also have their feel-good belongings close at hand.

 

  1. Throw a Goodbye Party

A simple party to acknowledge friends and memories is a great way to create a sense of closure. You may also wish to take a final goodbye tour of the neighborhood and all the places that have been a part of their world for years. While this activity is likely to bring up feelings of nostalgia and a bit of sadness, it is an important part of the process of moving on. You can then look ahead to all the possibilities and new memories you will be creating in the years ahead.

 

While there’s no surefire way to avoid moving anxiety, getting your kids involved early and often is your best bet for a smooth transition that benefits the entire family.

For information on moving in NYC or any real estate questions you may have, contact Batra Group at (646) 202-1877.

No Comments

3 Essential Staging Design Tips for Your Open House

 

There’s no place like home, and surely you’ve put much time and effort into making yours as lovely as can be! That said, when you’re ready to move out, you’ll want to give potential buyers the chance to envision it as their own. This likely means making some changes. Here are 3 Essential Staging Design Tips to help you create the perfect environment for your showings and open houses:

 

  1. Cleanliness

 

There’s nothing that turns off a buyer more than an untidy presentation. Before you even think about hosting an open house, make sure your floors are clean, your countertops are polished, your windows are smudge-free, your furniture is dusted, and so on. Remember to ventilate your house as well, and perhaps use air freshener or light a few candles to chase away any unpleasant odors. If you’re not the housekeeping type, now might be a good time to call in some backup and hire a cleaning service!

 

  1. Decluttering

Take the time to declutter and depersonalize your home. The idea behind this is that a prospective customer should be able to imagine themselves living here, making changes that would match their own vision. With that in mind, remove personal photographs, souvenirs, and other knick-knacks for showings. That collage from your trip abroad or grandma’s antique tea set may have to find a new temporary home! Aim for a neutral, spacious vibe, and consider renting a storage unit for larger items, such as quirky pieces of furniture or loud rugs and posters.

 

  1. Professional Style

Make sure your home looks as professionally styled as possible. You don’t have to go full Martha Stewart to succeed here, but it wouldn’t hurt to do some research and/or get some advice. Aim for contemporary style and comfort. In some cases, you’ll simply want to add a piece of accent furniture or artwork, or perhaps some new bedding or an area rug. You can even rent them from a staging company. The idea is to excite your buyer with the most attractive look possible.  

A few quick tips to get you started are:

  • Give your walls a fresh coat of neutral paint. This will make your rooms look both bigger and cleaner.
  • Opt for strategic lighting, such as standing lamps or wall mounts. Overhead lights tend to give off a harsh glare.
  • Buy a few succulents or a bouquet of flowers and set them up in a prominent place. Natural touches will make your house look more homey without compromising neutrality.

On a final note, don’t be shy in asking your real estate agent for help. It’s your agent’s job to guide in you in all matters related to the sale of your home, and they are typically well versed in staging. That said, be open to inspiration and put some creative effort into the process. It can actually be quite fun.

For more information on selling NYC property or any real estate questions you may have, contact Batra Group at (646) 202-1877.

No Comments

5 of the Best Dog Parks in New York City

 

Among the most important factors people consider when looking for an apartment in New York City are building and neighborhood amenities. For an increasing number of people, the must-have features include accommodations for pets, particularly dogs. In fact, according to StreetEasy.com, pets and pet services are among the top 2 most important amenities for renters and buyers in New York City. Many upscale buildings have taken note and now offer pet spas, grooming services and even indoor dog runs. But arguably the best treat for you furry friend is a great run in the park. 

Here are 5 great dog parks to know about when looking for neighborhoods to buy or rent in:

1. Carl Schurz Park – Upper East Side

Located between E 84th and E 90th streets, the Carl Schurz Park is a perfect spot to bring your pets if you’re living on the eastern half of Manhattan. Offering dog runs every Wednesday and Thursday from 12:15-1:15 pm, the park allows your pets to exercise freely in a safe environment. It’s also a comfort to owners that the park regularly sanitizes these spaces, cleaning them on a weekly basis in the summer and bi-monthly throughout the year.

2. De Witt Clinton Park – Upper West Side

On the opposite side of the borough, De Witt Clinton Park is a great place to bring your pets to if you’re in the Upper West Side of the city. With multiple dog runs throughout the park, your pet will have an opportunity to run and play to its heart’s content.

3. Washington Square Park – Greenwich Village

At the base of 5th Avenue, Washington Square Park is another great area for pet owners living in the heart of Manhattan. Like De Witt Clinton Park, Washington Square Park offers several dog runs for pets to play in. These spaces are open throughout the duration of the day, allowing dogs to get all their energy out until the park closes around 9 pm. 

4. Prospect Park Dog Run – Brooklyn

With acres of open green space, Prospect Park is a fantastic place for Brooklyn pet owners. Located next to Park Slope, the area is extremely pet friendly, allowing owners to choose whether or not their dogs should be leashed when playing in the grass.

5. Gantry Plaza State Park – Long Island City

Offering two different dog runs, Gantry Plaza State Park is a great spot for dogs to play in western Queens. The park also offers owners to walk their dogs along paved pathways from 8-10 am every morning, giving them an amazing view of Manhattan while they are out. So whether you’re on the go or there for the afternoon, Gantry Plaza is perfect for you and your furry friend.

 

For information on pet-friendly apartments, neighborhoods, or any real estate questions you may have, contact Batra Group at (646) 202-1877.

No Comments

What are the Closing Costs for a Seller in NYC?

 

Congratulations! You’ve put your home on the market, found a buyer, and are now ready to close a deal. But before you break open the champagne, you’ll need to plan for some final closing costs. The good news is that there are fewer of them for sellers than for buyers, although you will still need to factor in agent commission (typically 5-6% of the sales price). To help get you through the home stretch, we’ve compiled a list of standard seller closing costs, so you can plan ahead:

 

Fee type Amount
NYC real property tax Typically 1-1.5% of purchase price
New York State tax .40% of purchase price
Attorney fee $1000-$4000
Move-out fee $500-$1000
Flip tax 1-3% of purchase price
Payoff/loan satisfaction Varies, but expect $500+

 

This looks like a lot, but don’t worry. While transfer taxes and attorney fees are a given, depending on where you live, move-out fees and flip taxes may be optional. The move-out fee should be mentioned in your original lease, and if it isn’t, you might not have to pay it. Similarly, a flip tax, which covers renovations, is generally paid only when you’re selling from within a co-op. Finally, loan satisfaction is necessary only if you have a mortgage provider.

 

What about real estate commission? While not technically a closing cost, the agent commission is still paid at this time to both the buyer’s agent as well as your own (seller’s) agent. You should expect to pay around 5-6% of the purchase price, with both agents receiving an equal share. Importantly, if the buyer doesn’t have an agent, your agent will be required to represent both parties in the transaction, and earn the entire sum.

 

For more information on selling your apartment in NYC or any real estate questions you may have, contact Batra Group at (646) 202-1877.