NYC Real Estate

Louis Snitkin

 Bellmarc Realty
Greetings!

PortraitWhen was the last time that your favorite newscaster reported that, "Peace has broken out?"  The media tends to feed off of the negative, and, when it comes to real estate, reports on things that happened in the past; not "real time."  The "news" that you read about simply reports on closed transactions from the last two or three months.  For the most part, those transactions where put into contract 2 to 3 months before they closed; so you are essentially being shown the state-of-affairs as they existed 4 to 6 months ago.  
 
Fast forward to "real time."  May showed a glimmer of hope, and June was a great month! The sales made in May and June will close between July and September. So, when the 3rd quarter report comes out at the beginning of 4th quarter, the media will report that we have turned a corner, and real estate is selling.  That might be too late for someone hoping to take advantage of a buyers' market, because it's happening right now!
 
 
Sincerely,
 
Louis Snitkin
Bellmarc Realty
(212) 688-8530  x294
(914) 589-2394  Cell
Light at the End of the Tunnel   
 
The most common question that I hear from family, friends, and acquaintances is, "How is the real estate market?"  My latest answer is that it's rebounding significantly.  
 
Buyers are now unequivocally more confident about the future of investing in real estate, and sellers are more realistic about the value of their homes. The result has been a dramatic increase in the number of transactions.
 
Why?  I can go on for quite a while, however, I'll give you the two top reasons:
 
1. Real estate is still one of the best investments you can make. Ultimately, the proof is in the numbers.  If you invested in the stock market ten years ago, the value of your money would have effectively remained flat; whereas money put into the Manhattan real estate market (even with the recent decline in value) would have seen an increase in value. Properties, on average, have more than tripled in value since 1997.  Aside from that, you had to have a place to live; so why not pay off your mortgage instead of a landlord's? In most cases the numbers work out more favorably to own rather than rent, particularly given the tax benefits.  Ask me, and I'll show you how.
 
2. Interest rates are still historically low, and are still hovering around 5.375%.
 
Couple those two things with the best buyers' market in decades, and all I can ask is: "What are you waiting for?"

No Mystery to Getting A Mortgage
Lenders are lending!  

The cautionary adage "too good to be true" often comes to mind when we first learn of a great financial opportunity. Understandably then, some prospective homebuyers might be looking for "the catch" when they hear about the historically low-interest rates currently available to borrowers.
 
Given the current economic challenges banks and financial institutions are facing, many consumers believe "the catch" is that while it is extremely affordable to borrow money, it is also virtually impossible to qualify for a loan.
 
Ability to Repay: One of the first things a lender will look at is the borrower's ability to repay the loan. To determine this, they will consider several questions: Is the applicant currently employed? Are they in a steady line of work? Have they earned a similar income in the past? Typically, a borrower will be asked to provide documentation of their income. Lenders want to see stability both in terms of the position the borrower has held and their earning potential. A prospective homebuyer who has worked for the same employer and earned an income within the same range as their current salary for several years stands a great chance of being approved for a loan.
 
Track Record: Granting someone a loan ultimately is based on risk taking. A lender will be far more likely to grant a loan to a low-risk borrower - that is someone with a proven history of paying off debt in a timely fashion - than someone with a poor track record.  A person's credit score, or FICO score, is the most commonly used method to evaluate their bill-paying history and debt profile. Credit scores range between 300 and 850.  Typically, someone with a credit score of 660 and above is considered to have good credit.  The higher the score, the more likely a borrower is to get a loan, and a better interest rate.  If a person has an excellent credit score, there is even the possibility that a lender will grant a loan with less than the traditional 20% down.  I recently had a customer who had a credit rating of over 800, and a reliable source of income, and was pre-approved for a 90% loan.  Conversely, a borrower with a less-than-excellent score (typically under 720) may be granted a loan, but be required to put down 20% or more.

One important factor for borrowers to consider when selecting a lender is the stability of the company loaning them the money. A secure, reliable lender with a reputation for getting their clients to closing.

The Bidding Wars are Back

   Contrary to popular belief, there are transactions happening in today's real estate market. Undeniably, the volume has decreased, but there is activity - contracts out, multiple bids, and yes, even some bidding wars.

   The serious sellers who truly understand the market are pricing their apartments slightly below market and are offering incentives to attract attention. Recently, properties that have been on the market for months have seen multiple bids after taking significant price reductions.  Price is king in today's market!

   I've had three instances in the last weeks where this has happened, and my buyers suspected that the seller's broker was not being truthful.  In fact more and more brokers are reporting the same situation as buyers sense that an apartment has reached a price near, or at, the "bottom." The deals are out there, and the pent up demand will help the market turn in a positive direction.

From Neil Binder, Co-founder of Bellmarc:
 
Most of you who have been reading the press and have seen numerous articles portraying the decline in the market values throughout the country. The most recent of these articles that I have seen state that prices have declined almost 20%. I suggest to you that these figures are not really reflective of the current market environment since they relate to transaction closings where the offer and acceptance normally occurred three months prior. The true decline in prices has been dramatically greater. At the present time, I am easily seeing 25% declines and in some areas the declines are 35%.            
 
As real estate brokers, we focus on the trend. An upward trend puts pressure on buyers to accommodate the seller and in a declining market this is reversed-buyer reticence puts pressure on the seller to accept less. Transaction activity intensifies as both parties become more aware of this trend - what we call the bandwagon effect. Let me give you Bellmarc's activity portrayal over the last six months. I use January 2008 as the benchmark for an "average month":
 
December 2008 - 25% 
January 2009 - 35%
February - 35%
March - 30%
April - 40%
May - 55%.
 
As you can see, activity levels were lumbering along and suddenly in April a glimmer of activity showed after a decline in production in March. In May activity became the strongest it has been in six months and it appears to be further intensifying.
 
While this increase in activity is apparent to us all, it is also interesting that the increase in activity is coupled with a much greater decline in prices in a short period of time. It seems that people are getting it. Sellers are beginning to recognize that in order to sell their property they have to face the buyer's demands rather than insist on numbers that are just not achievable in the current environment.
 
My prediction is that inventory will continue to decline. We have finally dropped below 12,000 apartments for sale for the first time in six months. We are seeing strong attendance at open houses and managers are reporting strong buyer interest generally. We are also registering increased numbers of transactions.  These are all good omens that portray the beginning of a very strong real estate market. Hold on to your seat ladies and gentlemen. Three months from now you'll read it in the newspapers: the recession has come to an end. 
I APPRECIATE YOUR FEEDBACK. PLEASE LET ME KNOW HOW I CAN IMPROVE MY SERVICES.
About Bellmarc Realty
The Bellmarc companies have been in business since 1979. With five neighborhood offices, Bellmarc is Manhattan's largest independent real estate firm. The co-founders, Neil Binder and Marc Broxmeyer, are dedicated to promoting professionalism in every real estate transaction. 
 
681 Lexington Avenue
New York, New York 10022
Bellmarc Realty
 
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Chelsea Park Coming to Life

chelsea park

Hudson River Park's Pier 64 in Chelsea and the upland between 24th and 26th Streets are now open to the public, including walkers, strollers, joggers, sunbathers and nature lovers. 
 
The first of Chelsea's trio of waterfront parks, Pier 64, recently opened to the public, marking the halfway point for construction of the 5-mile-long Hudson River Park.
The Michael Van Valkenburgh-designed pier, between 24th and 26th Sts., features an extended mall jutting into the Hudson River with open seating, sloping lawns and English oak trees lining the length of the 500-foot pier.
 
"Each addition to Hudson River Park makes this magnificent treasure an even greater gift to our city and state," said Diana Taylor, chairperson of the Hudson River Park Trust, the city-state public authority that oversees construction of the park, in a statement. "It is thrilling to witness the continued construction progress as the park becomes a beautiful finished product."
 
Pier 64 is one of three that will make up the Chelsea section of Hudson River Park, also known as Chelsea Cove. Two others, Piers 62 and 63, are currently under construction and scheduled to open next year. When complete, Chelsea's waterfront parkland will measure more than 9 acres in total, and will include a Hudson River Animals Carousel, a new skate park, a public garden, great lawn bowl, and a sculptural landscape created by the artist Meg Webster.

Grilled Vegetables with  Garlic Aioli
veggie aioli
Searching for a succulent side or tempting main dish for non-meat-eaters? With an herb-and-garlic-infused topping and grilled bread base, this vegetable dish is sure to satisfy.

Basil Aioli:
1 garlic clove
1/4 cup torn basil leaves
1 egg yolk
1/2 cup olive oil
2 teaspoons lemon juice

2 large red peppers, quartered, core and seeds removed
1 eggplant, cut into 1/4-inch-thick rounds
1 orange sweet potato, peeled and cut diagonally into 1/4-inch-thick rounds
3 zucchini, sliced lengthwise into 1/4-inch-thick slices
2 red onions, cut into 1/2-inch-thick rounds
1/3 cup olive oil
1 loaf Turkish bread, split and cut into 4 equal pieces

To make the basil aioli, put the garlic, basil and egg yolk in a food processor and blend until smooth. With the motor running, gradually add the oil in a thin stream until the mixture thickens. Stir in the lemon juice and season to taste. Cover and refrigerate until ready to serve.

Preheat a barbecue grill to medium. Put the pepper, skin side down, around the cool edge of the grill and cook it for 8-10 minutes or until the skin has softened and is blistering.

Meanwhile, brush the eggplant, sweet potato, zucchini and onion slices on both sides with olive oil and season them lightly. Cook the vegetables in batches on the middle of the grill for 5-8 minutes or until they are cooked through but still firm. As the vegetable pieces cook, put them on a tray in a single layer to prevent them from steaming, then grill the Turkish bread on both sides until it is lightly marked and toasted.

Spread both cut sides of the bread with 1 tablespoon of basil aioli and pile some of the grilled vegetables on top. Top with the remaining toast and serve immediately.



RESULTS 

Fancy presentations are nice, but what you really want when you buy or sell an apartment is RESULTS. In the midst of all the doom-and-gloom in the market, I've been busy putting deals into contract.

 

My entire career has been based on a simple premise:

Be fair and honest in my business dealings, and intelligently work my tail off to do the best job possible.

 

Many people choose their real estate broker for the wrong reasons.  Or they devote their precious time to selling or searching on their own, instead of hiring a professional.

 

ü     Take advantage of my 30+ years of sales and marketing experience for a customized and unique program tailored for your property.

 

ü     I have successfully negotiated multi-million dollar deals, always keeping in mind that it's my clients' money that's at stake.

 

ü     After a sale is negotiated, the real work begins. I will efficiently manage your transaction, addressing every detail in a timely fashion.

 

ü     You can benefit from the flexibility & value in a personalized strategic plan and fee structure for the sale and/or purchase of an apartment.

 

So, let me show you how I get results!  Please contact me with any questions, or if you would like to discuss your real estate needs.