Tane Waterman & Wurtzel, P.C.Tane Waterman & Wurtzel, P.C.2024-03-11T09:32:25Zhttps://www.tww.nyc/feed/atom/WordPress/wp-content/uploads/sites/1101127/2019/02/og-img-2018-11-23-05-37-21-75x75.jpgOn Behalf of Tane Waterman & Wurtzel, P.C.https://www.tww.nyc/?p=488812024-03-06T10:33:03Z2024-03-11T09:32:25ZSix trends we are watching this year
Predicting the future is risky, but these are trends that we are seeing:
Rate drops are on hold until mid-year
After 11 interest rate hikes in the past few years, the Federal Reserve forecasted three rate cuts in 2024 during its December meeting. Still, higher-than-expected inflation in the new year made people wonder if it is wishful thinking. Experts are now saying that mid-year cuts are more likely.
Continued rise in luxury condo developments
With demand for luxury living spaces in New York City showing no signs of slowing down, developers continue building high-end condo towers in prime locations across the city. These luxury developments offer state-of-the-art amenities, stunning views, and the prestige of living in a sought-after building, making them highly attractive to affluent buyers.
Focus on sustainability and green living
As sustainability becomes an increasingly important factor for many homebuyers, green living features are becoming more common in New York City residential buildings. From energy-efficient appliances and LEED certification to rooftop gardens and solar panels, environmentally conscious buyers seek properties that align with their values.
Shift towards outer boroughs
With rising prices in Manhattan and parts of Brooklyn, buyers and renters are exploring options in Queens, the Bronx, and Staten Island. These areas offer more affordable housing options, vibrant communities, and easy access to public transportation, making them attractive alternatives for those looking to get more bang for their buck.
Emphasis on health and wellness amenities
The COVID-19 pandemic highlighted the importance of health and wellness in our daily lives, leading to an increased demand for properties with amenities that prioritize well-being. Expect to see more residential buildings in New York City offering features such as fitness centers, meditation rooms, spa facilities, and outdoor green spaces to cater to the growing interest in holistic living.
Rise of virtual real estate tours
With technological advancements making it easier to showcase properties online, virtual real estate tours are becoming increasingly popular in the industry. In 2024, we can expect more real estate agents and developers to offer 3D tours, virtual reality experiences, and live video walkthroughs to give buyers a comprehensive view of properties without physically visiting them.
Spring is here
Spring is traditionally when the market kicks into gear after a few sleepy months over the winter. Overall, the New York City residential real estate market in 2024 is projected to be dynamic, diverse, and full of opportunities for buyers, sellers, and investors. By working with real estate professionals, New Yorkers can stay informed on these key trends and others that will emerge. They enable buyers and sellers to make informed decisions and confidently navigate the market.]]>On Behalf of Tane Waterman & Wurtzel, P.C.https://www.tww.nyc/?p=488782024-03-05T15:46:49Z2024-02-14T05:19:57Ztwo four-story properties is $37 million.
In the challenging real estate market of New York City, homeowners of condominiums, attached houses, and residential cooperatives may find strategic advantages in listing and selling their properties jointly. This approach involves neighboring homeowners partnering to sell their properties as a package deal, potentially attracting developers and buyers looking for more significant or unique properties.
Advantages of a Joint Sale
One of the primary benefits of a joint sale is the enhancement of the property's appeal to buyers. By offering a larger parcel of land or multiple units in a building, homeowners can target a different market segment, including those interested in redevelopment projects. It can result in a premium price compared to selling individually. Additionally, sellers can split the cost of marketing and legal fees, reducing individual expenses and increasing net profits.
Structuring a selling partnership
A selling partnership should be structured carefully to protect the interests of all parties. Homeowners should draft a formal agreement outlining the terms of the partnership, decision-making processes, distribution of expenses, and allocation of proceeds from the sale. Even before an offer, sellers should use a real estate attorney to ensure that the agreement is legally sound and safeguards each homeowner's rights.
Legal considerations and restrictions
Before proceeding with a collaborative sale, homeowners and buyers should be aware of any legal constraints that might impede their plans. Condominium associations and co-op boards typically have rules and bylaws that govern the sale of units. These may include rights of first refusal, which allow the association or board to purchase the unit before it is sold to an outside party, or there may be restrictions on bulk sales.
The sellers should review their governing documents and consult with a legal professional to ensure compliance and address any potential issues before listing their properties for sale—failure to do so could lead to disputes or compliance issues.
The path forward
The West Village townhouses offer a rare opportunity for a buyer with considerable resources. Still, sellers of more modest properties can also benefit if, for example, the sale would be for a multi-unit property that was previously a one-family home. By understanding the legal landscape and structuring their partnership effectively, homeowners can work together to maximize their return on their investment. As with any significant financial transaction, it is critical to seek professional legal advice to navigate the intricacies of the NYC real estate market and ensure a successful and compliant sale.]]>On Behalf of Tane Waterman & Wurtzel, P.C.https://www.tww.nyc/?p=488652024-01-10T04:04:25Z2024-01-16T04:03:59ZRenting offers better deals
Potential buyers willing to wait out the interest rates (or gamble that they don't go higher) may find more options if they rent. Rental rates rarely go down, but experts see the largest number of rental options in the market since the pandemic. This fact puts more pressure on landlords to get places rented.
Manhattan is now an option?
Manhattan has traditionally been the most expensive borough, with notable exceptions elsewhere in the city, but those numbers started softening in the fall of 2023 and trending down by November.
This is a reaction to the previous surge: soaring rental rates encouraged owners to rent out their living space, causing a 16% increase in inventory.
Local Law 18 is another reason for the increase. This new regulation aimed at limiting illegal short-term rentals likely pushed some landlords back to standard rentals rather than deal with registering their property with the city and displaying the registration number on the unit's listing. Failure to comply can result in steep fines.
Landlords may need to cut deals
Great apartments at a reasonable price are always hard to come by in New York. Still, landlords need to put people back in their units. New Yorkers love a deal, and the tried and true negotiation approach still works, perhaps offering a free first month, no fees, or simply pricing it to move.
Winter is a slow time in New York real estate, and this could change in the spring as the temperatures rise and people traditionally think about moving.]]>On Behalf of Tane Waterman & Wurtzel, P.C.https://www.tww.nyc/?p=488672024-01-09T04:18:11Z2024-01-13T04:17:33ZHere are some tips on finding the right fit and avoiding being taken advantage of.
Have a clear plan: Make sure the offspring understands the deal's key points, such as the parents paying a downpayment of half, leaving junior to pay a modest mortgage. Other vital points can include issues surrounding utilities, extra expenses, renting out a spare bedroom, parents' visitation privileges, who has the final say on location, and choosing the property.
Determine priorities: Establish buckets of needs and wants. The parents’ and child’s will differ, but parents may establish non-negotiables like a safe neighborhood or a doorman building. The child may want a reasonable commute to work, outdoor space or in-suite laundry.
Look out for restrictions: Non-New Yorkers may be surprised by the long list of restrictions associated with co-ops (which can include the buyer being the primary resident or not allowing parents to buy a unit for their children). A workaround for rules could be co-purchasing the apartment or acting as a guarantor. It’s important to remember that rules will differ from one building to the next. And finally, don’t try to pull a fast one with the board – it will get ugly, and your child will have to deal with fallout if they live there.
Look at condos: They typically have fewer restrictions and require no board approval. They can also be turned into investment property if the child outgrows the space.
Find a good broker: Let them know the details of the situation. Chances are they’ve had experience finding apartments for children and may have insight specific to your situation.
Use an experienced attorney: Attorneys can draft the terms of the deal and better ensure that the terms are equitable. They can also handle the closing if the parents live elsewhere.
]]>On Behalf of Tane Waterman & Wurtzel, P.C.https://www.tww.nyc/?p=488692024-01-09T04:18:05Z2024-01-13T04:17:32ZClear Cooperation Policy, which requires the listing broker working with multiple platforms to submit the listing within one business day. Public listing can be as old school as a paper flyer or sign, or a modern-day online listing or email. NAR may require this unless the seller stipulates that they do not want the property publicly listed.
The benefits
A healthy bidding war created by a public listing can benefit the seller and their time, but there are pros to whisper listings:
The seller may like the idea of hand-picking who they pass the property.
The seller may be a celebrity or want to avoid making their space open to the public, who may be more curious than motivated.
The seller wants to avoid the stress, expense, and time of staging their home.
The buyer likely faces less competition.
The buyer has access to what they perceive as a special or desirable property.
If the home never officially hits the market, the listing agent may represent both the seller and the buyer, broker a deal and keep the entire commission.
Attorneys more important than ever
The thrill of the real estate hunt can be exhilarating as well as rewarding, but buyers and sellers still need to be thorough. The terms of the unusual transaction need to make sense and adhere to all applicable rules and regulations surrounding the building, the City and business organizations. Working with an attorney can help minimize the risk of violations or an unfair deal.]]>On Behalf of Tane Waterman & Wurtzel, P.C.https://www.tww.nyc/?p=488592024-01-08T04:39:12Z2024-01-12T04:38:28ZLocal Law 97 was drafted as part of the De Blasio administration’s New Green Deal and passed by the City Council on November 15, 2019. It addresses the fact that New York City’s largest source of greenhouse emissions is buildings, which contribute two-thirds of the total. The law goes into effect now in 2024, ahead of the first report in 2025.
Which buildings are affected?
There will be exceptions to these rules on a case-by-case basis, but the following must now comply with energy efficiency guidelines and greenhouse gas emission limits:
Buildings that are larger than 25,000 square feet.
Two or more buildings on the same lot that total 50,000 square feet.
Two or more buildings totaling 50,000 square feet that are part of the same condo association and governed by the same board of managers.
Some notable exceptions include city-owned buildings, classified religious places of worship, and non-profit hospitals and healthcare facilities.
Complying with the new law
The target date is 2024 because all applicable buildings must file their annual report with the Department of Buildings by May 1, 2025. Buildings that report emissions that exceed the limits will face penalties. If the building makes no changes, about 20-25% will be non-compliant in 2025 and 75%-80% in 2030.
Applicable buildings that do not comply will face stiff fines:
The difference between the limits and the reported total is multiplied by increments of $268.
Submitting a fraudulent report is a $500,000 fine.
Failure to report is a $0.50 per square foot per month fine.
Where to start
Owners, boards and managers can start by determining if their building is subject to the LL 97 guidelines. They can then hire an energy auditor to do a performance study to determine current performance and how to make the building compliant now and down the line. There is also building analytic software and different cost-reducing programs available. Common retrofit suggestions include adding solar panels, converting building HVAC from gas to electric, and installing energy-efficient windows. Less expensive fixes include changing to LED lighting.]]>On Behalf of Tane Waterman & Wurtzel, P.C.https://www.tww.nyc/?p=488572023-12-07T07:48:37Z2023-12-12T07:47:53ZWhat is the proper amount?
Tipping is a personal decision that is a custom rather than a requirement. Some people tip a certain percentage regardless of the quality of their service; others base it on the quality of service. Some carry cash and tip regularly; others do lump sums during the holiday season. However you do it, we recommend that you tip well: Some say it's good karma, but it's a fact that getting the stink-eye from staff can weigh on a resident looking for a little extra assistance when they are in a jam. The folks over at Brickunderground.com conduct an annual poll on holiday tipping. The averages in 2023 were:
Super: $150 to $300, but as high as $500.
Doorman or concierge: $75 to $200, but as high as $1000.
Porter/handyman/maintenance: $25 to 50, but as high as $100.
Garage attendant: $25 to $75, but as high as $100.
Other things to consider
Keep in mind that this is per staff member. Also, consider being more generous if your family regularly needs a little "extra" help. Those who worry about setting a precedent can add a note saying a high amount was due to above-and-beyond help during a difficult stretch (new baby, physical injury, pandemic, etc.) or one particular event. Conversely, residents can tip on the low end if a staff member is never around or doesn’t offer to assist when they are. Longtime or favorite staff may deserve or get more but don't ignore the others.
Residents usually tip in December, but money generally rolls in until the early weeks of the new year. We also encourage residents to tip people like nannies, dog walkers and others outside the building who regularly perform services for residents.]]>On Behalf of Tane Waterman & Wurtzel, P.C.https://www.tww.nyc/?p=486092024-01-26T16:29:02Z2023-11-08T08:13:44ZCity Comptroller Office saw a $616 million increase in annual rents in the city with 13,000 units dedicated to short-term rentals.
After witnessing these and other downsides, co-op and condo advocates celebrated the passing of Local Law 18 in 2022. Lawmakers designed it to end illegal short-term rentals in the city. In the few months that the law has been in effect, the impact is a clear win for the law's advocates.
What does it do
The new law requires hosts to apply to the Office of Special Enforcement (OSE) for a license if they plan to rent lodging for less than 30 days. It also requires that the host (either owner or renter) be present during the time of the short-term rental. Buildings can also sign up to a list of buildings that prohibit short-term sublets, automatically discounting applications from those buildings. The list currently includes 1,500 buildings.You can access the link here.
As of Oct. 9, 2023, the city received an estimated 4,794 short-term sublet applications and reviewed 1,697. The OSE returned 57% of the applications it reviewed, requesting additional information or to correct clear violations. The OSE has approved 481 applicants who meet building codes and occupancy regulations. Common grounds for returns are:
Too many people living in the residence.
The host clearly does not live in the place.
Platforms hit hard
After fighting potential regulations in New York and cities worldwide, rental platforms like Airbnb and VRBO have seen a steep decline in the number of listings in New York City since the new law went into effect in September, going down 89% in the first month of the law.
Is it enough?
Compliance will remain a concern for buildings, particularly if hosts find workarounds, such as one person using Facebook Marketplace. Those with questions or concerns about short-term rentals in their building can discuss the issue with an attorney who handles co-op and condo association disputes and issues. Those who violate these rules can end up in housing court and subsequently evicted.]]>On Behalf of Tane Waterman & Wurtzel, P.C.https://www.tww.nyc/?p=485842023-10-31T21:14:02Z2023-10-31T21:14:02ZNo right to evict
Since there is no landlord tenant relationship between the condominium and the unit owner, there will not be an eviction. In a foreclosure of common charges, the unit owner may be removed from the property in the event of a successful foreclosure. That eviction action may be brought by the entity who purchased at auction or could be brought by the foreclosing lender or foreclosing condominium (in event of a common charge foreclosure). Sometimes, the condominium or the lender will be entitled to an appointment of a receiver to collect use and occupancy from the unit owner during the foreclosure process. If the court grants that request, the receiver may have the right to evict the condominium owner who is not paying the court ordered use and occupancy.
In a situation where the unit owner is engaged in a non-monetary default (like unauthorized leasing or unapproved alterations), the unit owner also will not be evicted. The basic remedy that a condominium has to deal with these type of violations is to obtain an injunction preventing the unit owner from engaging in the unauthorized conduct. While it is possible that a unit owner who violates multiple court orders enjoining the conduct may be subject to the contempt power of the court and removed, it's a long road before the court will exercise its contempt power to remove the owner.
What about occupants who lease?
This analysis does not apply to a unit owner who leases his apartment to a tenant. That unit owner certainly has the right to evict their tenant . In a case where the tenant is violating condominium rules, some leases and condominium by-laws give the condominium the right to bring an eviction proceeding against the tenant in the unit owner's name and at the unit owner's expense, That is controlled by the lease and condominium documents.
Before exercising any remedy to enforce condominium rules, the board should consult with experienced counsel to ascertain what rights it has under the circumstances.]]>On Behalf of Tane Waterman & Wurtzel, P.C.https://www.tww.nyc/?p=486022023-10-20T04:59:00Z2023-10-25T04:58:42Znew report from Property Shark, properties in flood zones sold less often and at a lower price in 2023 than in 2012, which happens to be the year of Hurricane Sandy. According to the report, property sales in flood zone areas comprised 11% of all New York deals before Sandy, which dropped to 9% after Sandy.
A map of the city’s flood zones generally highlights the coastline and inlets around the boroughs. Still, other notable low-lying areas also appear: Tribeca and Canal Street area, the southern tip of Manhattan, East Village, Upper East Side, Green Point, Williamsburg, East Williamsburg, Howard Beach and Red Hook.
Brooklyn sees the biggest disparity
Brooklyn saw the largest difference in prices. Prices for apartments jumped 74% to an average of $800,000 in those 11 years, while comparable spaces in flood zones (in such neighborhoods as Greenpoint, Williamsburg, and East Williamsburg) jumped a mere 16% to $610,000 in designated flood zones. The pre-Sandy sales in Brooklyn were 17% of sales, but that number dropped to 11% after Sandy.
Risk-averse home buyers and property investors lived through flooding in the past and understand that global warming is a growing problem that increases the severity of storms. It's not a matter of "if" but "when" flooding occurs. With that in mind, owners and buyers need to understand that flooding is not just a significant inconvenience for residents and businesses; water damage and mold can lead to severe damage with expensive fixes.
Planning for it
Not everyone is afraid to live in a flood zone. For instance, Red Hook prices increased by 279% in the last 11 years. Those who do invest in flood zone area properties can also explore options for minimizing the damage (moving mechanicals out of basements or employing flood prevention measures into the construction). Getting flood insurance is an obvious choice for owners or renters, and lenders likely require it. Flood insurance is also required for those who previously received federal disaster assistance for flood damage.
Addressing these matters
A lower price can be appealing to buyers who are not risk-averse. Those interested in buying property in New York City should do their due diligence by asking the seller (they are obligated to say if there is a history of flooding) and check maps to see if the property is in a high-risk area.
If flood issues arise, it also may be a legal matter. Buildings or owners can take issue with ineffective work or design meant to mitigate flooding issues with the property. They may also file a claim against a previous owner who mischaracterized past flooding issues.
Those with questions or concerns can consult with a knowledgeable team of real estate industry legal professionals. They can help clients determine the most effective course of action for addressing a dispute or issue.]]>