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New York, NY - May 1st, 2013 -
Greetings!
Well spring has finally sprung and with nature's new beginnings so go mine. After a year at Keller Williams (and 3.5 in the business) I have started my own team at Keller Williams!
Braswell & Associates was created to better serve both repeat and new clients. Due largely to a strong referral network (thank you!) there have been more new clients than I alone could take on. I decided to ask hardworking agents with great customer service to join in my vision of a successful and compatible team.
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As such, please welcome Jennifer Hsu as my first Associate!
In 2012 Jennifer was able to provide my clients with a knowledgeable Queens resource for both sales and rentals. It was apparent from their feedback that she was a great fit for my team. While her top 3 Queen's hoods are LIC, Astoria and Forest Hills, she is also well versed in Manhattan's UES, UWS, Morningside Heights and Harlem. I am so pleased to have her on board.
In the last year our sales workload has increased significantly. Our clients are about 50/50 sales and rentals on both sides, be it Sellers, Buyers, Landlords or Renters. While we continue to grow our sales volume year over year, we're still taking rental clients as well. So if you know anyone in need of real estate services in Manhattan, Queens or Brooklyn, please introduce them to me and we'll get them going in the right direction.
Unfortunately it appears that Braswell & Associates may need to enact a name change by January 2nd, 2014 as new team name rules are coming into place supported by 'Big Brokerage'. However, for now I'd like to go with what we planned and also show of graphic designer Jon Orchin's great logo work.
Cheers,
Grant Braswell Licensed Real Estate Salesperson 202-841-2370 |
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We're a 'Best Real Estate Agent in Manhattan' on Yelp!
Alright, so this doesn't mean Braswell & Associates is a top 5 producer when it comes to volume of sales (yet...). However, thanks to our clients that have shared their appreciation with fellow Yelpers we have cracked the top 5 list! If you have enjoyed our services and would like to help us move up the ladder, please consider leaving a review here on Yelp.com.
 | | Click this photo to see the results on Yelp (and see it isn't photoshopped lol) |
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 NYC Market Report: Q1 2013
In 2012 the story revolved around slowly rising housing prices, declining inventory and the dearth of new development. As the year came to a close and 2013 began, the extent of those issues came to a head. The effects were generally unwelcome to buyers though developers and sellers are sitting in the catbird seat. Renters saw a few months of minimally declining rents, but that ended this February.
As new development has still been slow to hit the market after most of it stalled post 2008, developers have been able to sell out buildings extremely quickly. Chelsea Green, a sold-out yet unfinished new development by Alfa, sold half their stock very quickly out of the gate last summer even after a 5% bump on all prices. As fall rolled around they increased the prices of their remaining stock as high as 28%! The Citizen, an Anbau development between Chelsea and Flariton, also tried this approach. However after a shocking 43% increase in prices, they have had to cut the new prices by about 20% to date to try and finish selling out (around a 15% increase from the initial offering). The Walker Tower still being worked on by JDS development has had an incredible 13 price hikes which is incredible for a building with 2BRs going from $4m to $21m for 4BRs.
Resale inventory is also hurting significantly. The number of units on the market is down 50% to around 5,000 whereas that number had been historically around 10,000. As well, the apartment absorbtion rate (ie the number of months it would take to sell all the inventory on the market barring new inventory) is down 40% to around 6 months, the 10 year average is 10 months.
Why the low inventory? As Jonathan Miller states in his article on inventory, the current thinking is that owners have not gained enough equity through appreciation and mortgage payments since the peak of the market to resell and trade up (trading up is a primary driver of selling properties). This sentiment has been echoed in other places as well and makes plenty of sense. Why sell if what you can buy is going to be no better? This creates more holdouts who shrink the inventory pool further.
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Courtesy of Miller Samuel Inc
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So where will it go from here? From working with buyers, we know that this low inventory has created an unfortunate and difficult situation where anything priced reasonably, which is generally a touch higher than Q4 2012 closed price per foot, is going into contract within 2 weeks for 5%-10% over ask. As such, when these apartments close the actual sale price will show these new and higher achievable price per foot. With a higher sales price sellers will be getting more equity in a sale and thus will consider listing their property.
So what can a buyer do to be prepared? See below.
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Featured Braswell & Associate Listing
$975,000 -
$1,764 monthly maintenance (includes taxes)
This large apartment has over 30' of frontage overlooking Morningside Park and east for sunrises over Harlem. It needs some TLC but has wonderful bones in a sought after building (I sold another apartment here in 2011 - they love it!). Possible alternate floorplans can be seen by clicking here.
The building is the Mont Cenis and is about 100 years old. It has an elevator, a live-in super, laundry facilities and storage in the basement. The monthly maintenance also includes heat, water and basic cable.
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Tips for Buyers: Be Prepared!
OK so my tip does not stray far from my Boy Scout roots, but it rings very true in most life circumstances. As a buyer in this seller's market you are often competing with 10-20 offers for any new well priced apartment. Does that mean you need to make offers on 10-20 properties before you land your new home? Not if you come ready with a stronger profile than everyone else.
As you're getting ready to search for a new home, consider the following ways in which you can increase your profile to a seller and be a more attractive candidate. You'll quickly see that a mortgage contingency is one of biggest problems buyers face with multiple offers since often there is a cash offer or a risky buyer willing to drop their contingency.
Unless certain steps are taken, I do not recommend a buyer drop their mortgage contingency if they are borrowing.
Ideas for Buyers:
- Be ALL CASH. OK, so this will be the hardest option for most buyers, but cash is still king surprise surprise. You'll get the best price possible on a home and owners don't have to worry about a mortgage contingency.
- Have cash backup. Make your offer and say you're going to get financing, but, you have cash backup from yourself or someone willing to loan you the cash be it short or long term. A contingency isn't needed and you can proceed like an all cash offer even if that is the last resort.
- Can't finagle all cash? Most buyers can't. If you are definitely getting a mortgage, talk to your banker about getting a full commitment letter. Any buyer needs a pre-approval for a mortgage at minimum, but a commitment letter goes a step further. A commitment letter is when the bank's underwriting department looks into you as a borrower and gives you official approval for a mortgage (pending building approval). Once you have a mortgage commitment letter the bank can look at the building you are interested in. If the bank has approved the borrower and the building, then a mortgage contingency's terms are generally satisfied. Your lawyer should still review the minutes and financials before signing to look for any other red flags, but you may be able to drop your contingency and hace a stronger buyer profile.
- Put more money in the down payment. With or without a mortgage commitment letter you may still decide not to waive your mortgage contingency in the offer. It is understandable, though then how else can you stand out? One option is to increase the amount of cash you put down. Instead of the general NYC minimum of 20%, perhaps you can put down 30%. This appeals to owners because it shows stronger financials and should the appraisal come in low, you can cover the difference yourself. Another benefit is less money spent on interest and more equity when the market shifts up. You are also less likely to be underwater if the market shifts down.
- Bid higher. If you are in a position where your money down is limited you may have to appeal to an owner's sense of greed. They may be willing to risk not closing on an offer if you are offering the highest price. You will still need to show a pre-approval for your offer amount. You may end up paying more than someone else would have for the apartment, but, if you feel the apartment is destined to be your new home you may just need to go for it.
- LOOK AGAIN AT APARTMENTS THAT HAVE BEEN ON THE MARKET LONGER. It may be that you are not positioned well to compete with other buyers or that you are not interested in best and final bid situations. In this case, looking back through apartments that have been on the market longer may be the right move. Perhaps there is a lower priced apartment in need of renovation that, once renovated, will match your budget and be a home that fits exactly what you wanted. You may also like an apartment that is priced too high to sell and has been sitting waiting for you. This is where we can get into real negotiations and try to get the apartment into your affordable range.
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NYC Announces 3 winners to adAPT NYC Competition
 | | Click for more information on the design |
A Micro Apartment is an apartment less than 400 square feet. In the near future they may represent a significant portion of the affordable housing in NYC. Smaller footprints mean lower costs to renters, and the current design uses pre-fabricated units which will reduce building costs as well. Mayor Michael Bloomberg announced that 40% of the 55 units at "My Micro NY", the upcoming building at 335 East 27th street, will be low to middle income housing and extra affordable.
This is a departure from current trends which have seen new developments come in at 450 square feet or MORE. The competition actually called for units of 250-370 feet. A city like New York has so much to offer in terms of services an individual may chose not to have the extra room at home. They will test the program with My Micro NY and if it works will look for more development opportunities.
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A Call for Customer Service
Having been in the business 3+ years now I've heard a lot of stories from people about working with a real estate agent and the poor customer service they received. In many cases that is why a new client was told by their friends to reach out to me in the first place!
I too am well aware of the various levels of quality in customer service one can find in NYC and thus have made it extremely important that my clients be taken care of in the best manner possible whether when working with me directly or with a coworker I referred them to. Since all agents have access to the same property information one of the best differentiators in the real estate business in the level of customer service provided.
Please forgive the somewhat awkward thumbnail - I can't seem to fix it!
 | | Five Star Service from Grant Braswell, Keller Williams NYC |
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The KWNYC Office:
425 Park Ave South, New York, NY, 10016
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