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Manhattan Real Estate Quarterly Review SPRING 2014

Licensed Associate RE Broker

LAST YEAR’S VIGOR GREETS REAL ESTATES’

STRONGEST SEASON

IN THIS ISSUE

Most of the brokerage community believes that this will be another exciting year in the world of Manhattan residential real estate, albeit different from this past year. Throughout 2013, there was an incredible amount of excitement, energy and press coverage surrounding record-setting sales prices and volume in several segments of the market. A significant dynamic that has fueled the market is the status New York City enjoys as one of a handful of ‘global cities’ viewed as attractive, stable markets in which to invest.

In addition, there are other factors which fueled 2013 and will continue well into 2014: 1) We are in the midst of an improving economy nationwide with New York City leading the way, 2) This last year also saw new highs in the stock market which not only drove the 2013 real estate market but will continue to stimulate our market in 2014, 3) High demand coupled with record low inventory puts pressure on prices and 4) Low interest rates – which are inching up – have spurred people to borrow more allowing them to stretch to greater price highs.

NEW DEVELOPMENT FRENZY: 12% of salesAnxious to buy a piece of New York, foreign purchasers, investors and pied-à-terre buyers have flocked to new development and luxury condominiums that have popped up all over the city. The public and the brokerage community alike have been truly amazed at the high prices and large amounts of money flowing into real estate. A significant percentage of these transactions are all-cash.

The powerful allure that New York’s new development and luxury condos hold for so

many well qualified buyers has contributed considerably to increased prices in these markets. Additionally, new development projects launched after the downturn that are gorgeously designed and accordingly priced higher are now beginning to close, and many of these recorded sales prices have helped boost an upward momentum.

In the 4th Quarter, apartment sales of these new development projects experienced a robust 32% increase in median price, to $1.68M, from a year ago and a 19% increase in average price per square foot to $1,500. For the luxury new development market, which has performed exceedingly well, the median price of apartments rose an incredible 72% year-over-year to $7.85M, while the average price per square foot increased 34% to $2,661. There are several gold-standard examples that have set the trend in luxury new development. These include the projects at:

• 157 West 57th Street (Extell). Apartments at One57 are under contract and have sold exceptionally well. This was the first of the ultra-lux developments to come to market since the 2008 market collapse. Prices for high full floor units are selling for more than $90M. The lowest priced sponsor-listed apartments currently hover at around $19M.

• 432 Park Avenue (Macklowe). The penthouse at 432 Park is in contract for $95M as are two duplex units, each for more than $90M. This spectacular new building is brilliantly designed with a sales office that is unmatched. It is no wonder that prices per square foot are in the $4,000-$5,000 plus range and that 50% of the building is sold as of this writing. Reportedly, 50% of the buyers are foreign.

• 56 Leonard (Alexcio Group). Four of the penthouses listed between $26M-$47M are in contract and over 90% of the Tribeca-located building has sold in 9 months. This project was a total hit in an area that is outside of the traditional Gold Coast of Tribeca.

• 150 Charles Street (Witkoff Group). This building sold out in record time. It has the appeal of being on a charming West Village block by the water and across from the Richard Meier glass buildings. The marketing of this building preceded 56 Leonard and over 30% of the units sold out within the first month.

• Walker Tower (JDS Development and Property Markets Group). Located at 212 West 18th Street, this building began closings in November with 21 units selling for an average price of $8.9M. The recent record sale of a penthouse at approximately $55M made many heads turn. The location was not considered prime but the building itself,

artfully marketed, is spectacular in scale and renovation detailing. The craze for new development aided the developer in nearly selling out within a few years after marketing began in June 2012.

• 135 East 79th Street (Brodsky Organization). Fourteen condos closed for an average price of $9.07M beginning in October. This is a wonderful building with a façade that replicates a grand prewar building – totally in keeping with the neighborhood. This development sold exceptionally well and momentum plus a good market allowed prices to escalate.

CURRENT MARKET REVIEWBIDDING WAR STRATEGYCONTESTING AN APPRAISALHOMEOWNER’S INSURANCESTAGING: DO I HAVE TO?LUXURY ON THE MARKETTIPS FOR BUYERS & SELLERS2013 SALES SAMPLING

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60 Riverside Boulevard - Apt. 2101

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More recently, on the Upper West Side’s Riverside Blvd., One Riverside Park (Extell) began marketing units in November that won’t be delivered until the Fall of 2015. Sales took off immediately and the building was 70% sold by mid-December when the prices were raised. This particular building is especially attractive as it offers a 20-year tax abatement that is rarely seen these days. The area is being further developed into a real neighborhood with fine schools, community facilities, stores and parks.While luxury and new development sales have attracted a great deal of attention, it is important to note that the luxury market is only 10% of all transactions, and in the 4th Quarter new development accounted for a mere 12% of all closings, with most of these skewed toward the higher price category. Let’s review what has happened in the market as a whole.

MARKET SEGMENT BREAKDOWNThe 2013 market out-paced previous years in both transaction volume and sales prices. This notable uptick across the real estate market was aided by the unprecedented gains in the new development and luxury condo markets that tilted citywide averages upward.

Market-wide dataMarket-wide price per square foot, which averaged $1,197 in the 4th Quarter of last year, reached a five-year high and approached the 2nd Quarter 2008 all-time high of $1,261. Demand has been aggressive: 10% more contracts were executed during the past quarter than at the same time a year ago, a trend of year-over-year double- digit increases that has been ongoing for eight quarters.

This high volume of sales occurred despite the fact that Manhattan’s recent chronically low inventory has been falling steadily for the past three years. Inventory in the 4th Quarter was 54% lower than its peak of 12,336 listings in the 1st Quarter of 2009. The year-end buying frenzy, during a quarter that is typically the weakest for sales, can be attributed to pent up buyer demand unleashed by a strengthening economy, growing consumer confidence, well-preforming stock market, year end bonus projections and the continued low cost of borrowing money.

CondosCondos of all sizes and price categories – whether new development, conversion or resale

– sold extremely well and, due to condos’ ease of sale and flexibility, are gaining an increasing share of closed sales as compared to co-ops. Condos amounted to 44% of all residential property sales in the 4th Quarter. The strength of the resale condo market is reflected in the 4th Quarter average price per square foot, which reached an all-time high of $1,382 – a 7% increase from one year ago. The median price last quarter of $1,152M had a similar increase year-over-year.

Co-opsCo-ops in general sold well enough at the lower and upper ends of the market, but much less so in the mid-range of $2M to $5M. Those co-ops that did sell quickly in the mid-range had unique qualities, were in prime locations, showed nicely and were well priced. Despite a notable lack of

inventory, prices for mid-range co-ops were not driven up by demand as in other segments of the market. For co-ops overall the 4th Quarter average price per square foot reached $945 which is 6% higher than one year ago. The median sales price of $662,500 remained unchanged from the 4th Quarter in 2012. Studios and one-bedrooms had the biggest gains in median sales price, with year-over-year gains of 13% and 6% respectively.

VULNERABLE MARKET SEGMENTSWhile the media has done a wonderful job of broadcasting the spectacular gains in the new development and luxury markets, areas of weakness that do exist tend to be ignored. Along with mid-range co-ops, less robust segments include apartments that are un-renovated or properties with ‘fatal’ flaws, units in less prime areas, overpriced properties, and the above $10M sector of the townhouse market. Some of the reasons for this softness can be attributed to the increased choices in new development and

competition from condos that offer buyers more flexibility, beautifully finished units, full-services, amenities and larger and more family-friendly sized apartments. Townhouses above $10MNot so long ago record townhouse sales, most often on the Upper East Side, occurred with some frequency, but that was prior to the most recent wave of new developments. Once developers began building hundreds of condo units from 3,000-6,000 square feet, townhouses were no longer the only option for a large space in Manhattan. In 2013 there were only a handful of townhouse sales in the ‘eight-digits’.

Fourth Quarter sales figures reflect this trend away from record prices, as the median sales

price on the Upper East Side fell 44% year-over-year, from $8.375M to $4.650M, a decline of 44%. Meanwhile, the Upper West Side saw 4th Quarter prices grow by 35%, and outperform the Upper East Side, with a median sales price of $5.16M. In fact, aside from the Upper East Side, median sales prices increased citywide although activity was predominantly for townhouses priced under $10M.

Uptown West & East – mid-rangeMid-range co-ops on the Upper West and East Sides remained on the market longer than the other

categories. Some of the reasons for this are market-related but others are related to unrealistic seller expectations. Some sellers have been inspired by the attention paid to high prices and quick sales, believe the value of their properties is similar to new condos, and mistakenly overprice them. Overpricing, even in a seller’s market, can substantially reduce the value of an apartment, considerably lengthen the sales process, and ultimately result in a lower sales price when it does sell.

2014 SPRING MARKET All signs point to one of the strongest spring markets this City has seen since 2007. As we move into the most active season for residential sales, we expect the trends of the past year to continue to fuel the market. These trends include: an improving economy, strong stock market, low interest rates, high demand, low inventory, and the enduring appeal of New York City as an investment venue.

market review negotiation strategy

In a market where there are more buyers than there are homes for sale, multiple offers and bidding wars inevitably erupt. Asking all bidders for highest and best offers can be the most efficient way for a seller to select the offer that works best for him. Although stressful and frustrating, highest and best scenarios do give all bidders an equal opportunity to have their offers considered.

For now, multiple offers are the new normal, especially in the condo market. Buyers who aren’t comfortable with making highest and best offers may be better off delaying a purchase until the market takes a turn and competition abates. But if you’re a buyer who wants or needs to purchase now, there are several steps you can take to improve your chances of coming out on top.

Assemble your teamWork with a real estate broker who knows the market well and has had plenty of experience handling highest and best offers. You need a broker who knows how to best position your offer and advocate on your behalf. Line up an attorney in advance who will be available to turn around a contract quickly. Working with a broker and attorney who are well known and liked by their peers can be a big plus. When similar offers are compared, the people who are representing you just might tip the balance in your favor.

Mortgage preapprovalIf financing, contact a mortgage broker or loan officer to find out how much you can borrow. Get a pre-approval letter from a lender and keep it current. When you are ready to make an offer, check with the lender or mortgage broker to make sure the building is on lenders’ pre-approved lists. Knowing in advance that the building is considered loan worthy is crucial if you plan to waive a financing contingency.

Financial statementFill out a statement of financial worth, keep it up to date, and have it ready to submit along with

your offer. Your financial qualifications are part and parcel of your offer. Be proactive and include it with your offer to show the seller that you are motivated and qualified to buy.

Do your homeworkFamiliarize yourself with what’s on the market and what’s recently sold. Understanding the market will enable you to recognize the right property when it comes along and give you the confidence to move quickly to secure it.

Be proactive and trust your gutWith buyers circling around every new listing don’t wait for the first open house. Make the time to see anything new as soon as possible. If you’ve done your homework and see something that will work for you, trust your judgment. Don’t lose time by second guessing yourself. If you act quickly and confidently with a strong offer you may even pre-empt other buyers and avoid a highest and best scenario.

Give it your best shotIt’s a seller’s market—unrealistic, lowball offers will get you nowhere. When it comes to highest and best offer, determine your “walk away” number – the number above which you won’t feel regretful if a higher bid is accepted. This may be your only opportunity to bid so don’t hold back.

Be flexible with termsOver half the transactions these days are all-cash; if possible, offer cash and then, if desired, finance after you’ve closed. If you are financing,

be prepared to waive the financing contingency. Other terms that can sweeten the deal for sellers include putting down a large down payment (if financing), offering to close at the seller’s convenience, and agreeing to sign the contract within a limited amount of time.

Don’t be too demanding or pickySellers want a buyer who is easy to work with. Making demands or coming across as picky will work against you in a competitive situation. Limit requests to what is absolutely necessary

and listen to your broker if she advises against pressing too hard on a point.

Win over the seller’s broker. The seller is the one who decides which offer to accept but he typically looks to his broker for insight and guidance on how to evaluate the offers. Make a good impression on the seller’s broker by taking the time for a friendly chat, and be sure to convey how much you like the property.

Introduce yourself in writing to the sellerAlmost every seller has an emotional attachment to his home and hopes his buyer will love his home as much as he does. Write the seller a personal letter to let him know how thrilled you are at the prospect of purchasing his home and include the letter with your offer.

Ask to be a back-upAn offer accepted in a highest and best situation does not always lead to a signed contract. If your bid isn’t selected let the seller’s broker know you remain interested and ask her to keep yours as a back-up offer.

HOW TO WIN A BIDDING WARStaying Competitive in a “Highest and Best” Scenario

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A large number of new developments have been added to the market and are selling at a fast pace, however few of these developments have started closings yet. As such, new developments only account for 12% of sales, which is unmoved since Fourth Quarter 2012. Market shares of co-ops and condos was also largely unchanged.

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Are we in a bubble? No!Inevitably, the soaring prices and high sales volume of 2013 have raised worries for some that we are headed for trouble. For instance, some question whether another real estate bubble is building. It’s important to keep in mind that we are not in the situation we were in leading up to the last bubble period in 2007 through mid-2008. Now sub-prime loans are a thing of the past, lenders are more tightly regulated, and despite a great deal of energy in some categories, the market here is not overheated across the board as in the past.

Concerns over rising interest ratesAn increase in interest rates is another area of concern. Yes, rates will likely rise, but they will remain low relative to double-digit rates of decades past. That being said, the current policies of the Fed will keep interest rate increases in check as economic performance overall is carefully monitored. Signs of any downturn will surely hold rates steady or push them slightly downward. So in the year ahead the likelihood of huge escalations is extremely low.

Low inventory concernsAnother concern focuses on the progressively low inventory of available apartments and the possibility that it will adversely affect market momentum and sales volume. Inventory in the short term will remain low at least until more new development projects in the pipeline come on the market. On the plus side, low inventory and the resulting price increases may encourage more sellers to stop sitting on the sidelines and decide to list.

CONCLUSIONOf course it’s not possible to foretell with any certainty how well the spring selling season will perform. After such an extraordinarily strong finish for 2013, it remains to be seen if that momentum continues full force or abates to some degree. But even if 2014 does not ultimately shatter as many records as the previous year, most real estate professionals anticipate a vigorous and exhilarating spring market for New York City residential real estate.

Whether you are already a homeowner, about to close on a property, or just starting the search, securing the proper insurance coverage is a critical part of the process. Like everything else, the dollars are in the details.

Assess your assets. Your home is your castle and your possessions may be as valuable to you as the crown jewels. But the insurance companies will only reimburse you for the loss of items you can prove you owned. Take a photographic inventory of all the rooms in your home, section by section. Store these photos off-site, whether in a safety deposit box, on a cloud-based Internet photo site or with your insurance broker.

While a homeowners policy is a great way to protect personal belongings like clothing, furniture and electronics, consider a Valuable Articles policy for your unique or expensive items, such as jewelry, fine art or other collectibles. Such specialized policies offer itemized coverage and the peace of mind of knowing that your expensive possessions are appraised and insured to value. Since most Valuable Articles policies do not include a deductible, you get to recover the full value of the item(s) in the event of a loss. To keep these policies current, it is best practice to have your high valued items appraised every three to five years to account for market changes.

Renovating your home? Renovate your policy. Prior to renovating your home, speak to your broker to make sure that you have the proper coverage. Depending on the length and scope of the construction, some high-end carriers will waive or reduce any surcharges to cover the work. Be prepared to provide your broker

with details of the construction as well as evidence of both general liability and workers’ compensation insurance from your general contractor. If a claim occurs and the carrier has not been properly notified, the carrier could deny coverage or raise your deductibles.

Let your home protect you…even when you’re not home. In addition to providing coverage for property damage caused to your home or damage you cause to your neighbor’s home, your insurance policy also provides some level of protection for bodily injury that you or your family members cause to others (e.g. your dog bites a pedestrian or your golf club flies out of your hand and hits a fellow golfer). Talk with your broker to make certain that you have the appropriate coverage limits.

Many homes, one policy. Buying or renting a second (or third…) home? There is no need to secure an additional insurance policy. Talk with your broker about extending coverage from your primary homeowners policy to the additional residence(s). This will save you money and streamline your protections.

You’ve worked hard to create it. Let your broker work hard to protect it. The right insurance broker is essential to helping you evaluate your existing policies in an effort to identify coverage gaps and potential blind spots. Since the majority of the high-end carriers work exclusively with brokers (not directly with the insured), only a broker can help guarantee that you’re getting the most comprehensive coverage at the best price. In the event that you experience a loss, the right broker will also be your greatest resource and advocate. Insure and be sure.

Jeff Bernard is a full-service insurance agent with The Rampart Group, located in Lake Success, NY. He is an authority when it comes to complicated, high risk insurance matters for business owners and individuals. He has a primary specialty in real estate and construction.

Jeffrey Bernard Rampart Insurance (516) 390-3778 jbernard@rampartinsurance.com

property values asset protection

HOMEOWNERS INSURANCE - ARE YOU COVERED? By Jeffrey Bernard

When a bank appraisal comes in low – more likely to happen in the kind of market we are in right now – with price jumps every quarter – buyers (and their sellers) are at a loss on how to proceed. The common wisdom is that, no matter how far off base, it’s just about impossible to successfully challenge a faulty appraisal. As noted in a recent New York Times article, buyers are advised that their only realistic options are to either put more money down or turn to another lender. Successfully challenging a low appraisal isn’t easy, but it can be done. Recently I persuaded an appraiser to revise his appraisal of two condo units (both on high floors, with terraces) that the buyers planned to combine.

Here’s what I did: I reviewed the appraisal and quickly saw that the appraiser, who was based outside the city and not completely up-to-speed with Manhattan’s market, made several errors: 1) he underestimated the value of terraces, 2) he didn’t properly factor in room count when calculating price per square foot (ppsf), and 3) he used comparable sales that were, in most cases, poorly selected.

Because lenders and their appraisers are so resistant to revising appraisals, I knew I had to build a strong case. So, along with writing extensively on the above issues, I backed up my rebuttal with information from the Real Estate Board of New York (REBNY) and Jonathan Miller, president and CEO of the appraisal and consulting firm Miller Samuel.

• To address the terrace issue I provided an article by Jonathan Miller on how to calculate the value of outdoor space. I then explained how each terrace should be properly valued. (A terrace off the living room should be valued at 50% of the unit’s ppsf, and a terrace off the bedroom – a less desirable location – at 33% of the unit’s ppsf.)

• For the room count/ppsf issue, I included a chart outlining how REBNY calculates room count, and a chart from millersamuel.com

CONTESTING A LOW APPRAISAL

showing that even the potential for an additional room enhances value. I then corrected the room count for the subject condos and each of the comparable units in need of revision, and I adjusted the ppsf accordingly. (The number of rooms, or potential rooms, increases ppsf.)

• Lastly, I commented on each of the 7 sold units the appraiser used to compare with the subject condos. Unlike the appraiser, I had actually viewed the apartments and was familiar with their backstories. The room count for some units was incorrect. Some

units were on very low floors, lacked views and/or light, or had inferior layouts or locations. I provided several more appropriate comparable sales and explained why they were more supportive of the true value of the condo units.

After reviewing my five-page letter, the appraiser agreed to revise his appraisal, and the lender then increased the amount of the loan. The buyers were greatly relieved that they could borrow what they needed for the purchase.

Of course, the best strategy when working with an appraiser is to point him in the right direction from the start. I always meet the appraiser and bring along information on relevant sales, including photos, floor plans and my written comments. I may also provide Information on units with signed contracts (especially useful when prices are on the rise) and a list of any renovations or upgrades to the property.

My best advice to anyone who wants to refute a low appraisal is to enlist the help of an experienced broker. To succeed it’s critical to have someone on your side who is familiar with the appraisal process and has first-hand knowledge of current market activity, recent sales, and the many nuances that affect property values.

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The Deanna Kory Team

Exclusive Book Series

Continued from page 2

Tips for Buyers & Sellers, see pages 6 and 7

After reviewing my five-page letter, the appraiser agreed to revise his appraisal, and the lender then increased the amount of the loan.

‘‘ ‘‘

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preparing to sell sales sampling

Staging has become part of the standard drill in preparing a home to sell. Making a good first impression, whether via photos on the internet or as the buyer walks through the door, has never been more important when marketing a property. Brokers typically advise sellers to undertake some

level of staging, ranging from a thorough cleaning and de-cluttering, to rearranging furniture and adding accessories, or in some cases, an interior redesign or renovation, or renting furniture to fill an empty home. The appropriate level of staging depends on the home’s condition and the seller’s budget, and depending on the level of staging and size of the home, can cost $2,000 to $50,000. Ideally sellers trust the process and take to heart the suggestions of real estate professionals who,

1. First and foremost, do not overprice your home. Be realistic and don’t be seduced by agents who toss out a high price. Overpricing will work against you in the long run.

2. Make sure your apartment shows the best it can. Get a great stager if necessary. I cannot stress this enough. An apartment that shows well, sells well.

with years of experience, have a keen sense of how to present a home to its best advantage. But even with staging widely accepted as an important element of marketing a property we do meet with resistance from time to time. Some sellers assume that, in a seller’s market, such as the one we have right now, with inventory in such short supply staging isn’t necessary. Other sellers attentively listen to brokers’ suggested fixes and entertain stagers’ proposals, but at some point begin to feel completely overwhelmed and question the necessity. Sometimes sellers are resistant to staging because they feel their home is perfect as is, or they believe they have the skills to make changes on their own. Occasionally a home is ready to list without staging, but even the most pristine home can benefit from some tweaking to ensure the photos stand out on the internet. Most homes profit from an evaluation by someone with an impartial eye who can identify the strengths and weaknesses as perceived by buyers, and who has the expertise to enhance the property’s appearance in the most efficient and cost-effective manner. And even though staging may seem like a lot of work, much of it involves de-cluttering, which can be useful as an organizational exercise for moving out. Here is why it’s worth it to stage – in any market, and for the majority of properties: It pays off. Staging typically raises sales prices by 2% to 5% (and often many times more), which amounts to an additional $20,000 to $50,000 for a $1,000,000 sale. As an added bonus, properties that are staged also tend to sell faster. Yes, staging is an investment of time and money for the seller, but, as I’ve seen countless times, it’s an investment that pays off handsomely in multiples of the money spent.

STAGING – DO YOU HAVE TO? On the MarketA sampling of Deanna Kory Team Exclusives

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If you would like to view one of our exclusive listings, please contact us at dek@corcoran.com.

Luxury Living on the Market4th Quarter 2013

226 West 71st Street Asking $15.9M

60 Riverside Blvd - 2101 Asking $15.9M

1235 Park Triple Mint Full Floor Penthouse w/2000 SF Wrap Terrace $9.45M

Address Price53 West 88th - Townhouse* $14,390,000 190 Riverside Drive - 8C $5,125,000172 West 79th - 17AF* $4,925,000

205 East 69th - PHA $3,600,000151 West 86th - 12C* $1,900,000455 Central Park West - 21C $3,300,0002628 Broadway - 35A $3,150,000119 West 82nd - 1 $3,775,00050 Riverside Drive - 10EF $3,885,000151 West 86th - 10C* $2,495,000246 West End Avenue - 10BC $3,850,000255 West 84th - 12E $2,923,0006 West 77th - 10B $3,650,000100 Riverside Boulevard - 6N $1,875,000375 West End Avenue - 11CD $3,825,000215 West 78th - 6/7D $2,950,000639 West End Avenue - 14D $2,450,00041 Central Park West - 8CH $4,537,000

161 West 75th - 2/3D $6,000,000140 East 63rd - 5E $2,925,000139 East 94th - 11B $1,475,000150 East 77th - 10AB* $3,335,0001158 Fifth - 5D $3,300,000140 East 83rd - 10/11AB* $3,460,000400 East 85th - 11L $2,250,000140 East 72nd - 21st Flr $3,750,000535 West End Avenue - 20th Fl* $18,200,000860 UN Plaza - 33/34F* $4,125,000*represented the purchaser

The Deanna Kory Team 2013 Sales Sampling

While the overall luxury market pricing dropped year-over-year, this is covering up extremely large gains in the luxury new de-velopment market. The luxury market dropped in median price by 4% and in price per foot by 3% since last year. However, lux-ury new developments increased by a striking 72% in median price up from $4.565M to $7.850M. Price per foot saw a 34% gain, up to $2,661 from $1,989 in Fourth Quarter 2012. The overall luxury market sales figures declined due to the resale market, which fell in median price and in price per foot for both co-ops and condos versus last year. Quarter-over-quarter every subset of the luxury market remained stable or increased.

3. Make sure your apartment is available to be shown when people want to see it. Provide access for everyone, especially in the first two weeks.

4. If you are fortunate enough to have multiple offers, seize the best offer and do not push the bidders to go higher. I have seen many sellers go through this process and actually come out with a much lower price than they would have if they had acted on the best offer.

5. Have a good attorney lined up to send out a contract as soon as possible. Maintaining the momentum of a deal can be critical in any market.

There are plenty of buyers in the market right now and that number will likely increase throughout the spring. This is an amazing opportunity for owners contemplating the sale of their properties. If you are considering selling, I am happy to meet with you to discuss value and strategy specific to your property.

Even though we are headed into one of the strongest seller’s markets we’ve seen, I cannot stress enough that there is still strong potential opportunity for buyers right now. That opportunity comes in the form of “stale” listings. When a property sits on the market, a perception is created that something is wrong with it. Most of the time this is not true. Properties must be perceived as a value proposition to sell and more often than not, the owner of a “stale” apartment simply overpriced the apartment in the beginning and turned off most prospective buyers. This is a predictable outcome. All of the apartments currently on the market that have been listed since the fall will likely sell sometime this spring so the window of opportunity for buyers is fairly immediate. Many of the perceived ‘flaws’ can be mitigated by a creative buyer.

There are several reasons why properties turn stale, in the following order of importance:

1. An apartment is overpriced by at least 10%. (That’s right, even 10% can kill a sale!)

2. It “shows” poorly – this holds true for renovated as well as un-renovated apartments.

3. The apartment is not being marketed properly – either the broker is not showing the unit in its best light on paper or in person.

4. There was a recent low sale that was truly an outlier and it affects the other sales in the building.

Often, an apartment that doesn’t “show” well is perceived as an apartment in need of a renovation. These properties are the opportunities that many buyers might not see. With properties that have flaws that cannot be changed, such as units with low light or bad views, a high maintenance or an inconvenient location, these apartments have usually been unrealistically priced and can be a great opportunity for a buyer willing to overlook flaws at the right price.

Strategies for Sel lersFor sellers there are many ways to maximize the chances of selling quickly, and at a great price.

Opportunities for Buyers

The Deanna Kory Team is comprised of seasoned professionals who are highly skilled in the many facets of buying and selling real estate in New York. Together we focus on your needs, tailor an individual strategy to achieve your goals, and provide you with unsurpassed expertise in real estate marketing and negotiation. Unique to most any team in the city, Deanna offers a full marketing team that will facilitate a customized plan of action for you while staying ahead of the industry in its innovation.

the corcoran group real estate660 Madison Avenue, New York, NY 10065

DEK@corcoran.com

The Corcoran Group is a licensed real estate broker. Owned and operated by NRT LLC.

corcorancorcoran group real estate

deannakory.com

Meet the Team

THE DEANNA KORY TEAMWith nearly thirty years of experience in the real estate industry, Deanna Kory has built a reputation as a hardworking broker with the intellect, knowledge, sensitivity, and expertise to assist all of her clients in realizing their real estate goals. She has a predominantly referral-based clientele which is a testament to these attributes. Along with her team, Deanna Kory consistently ranks within the top 3 at Corcoran in sales volume and has sold well over $1.5 billion of residential real estate in Manhattan in the last decade alone.

Deanna Kory | Licensed Associate Real Estate Broker

Ileana López-Balboa Stacey Pashcow Jane Martin Deanna Kory Christine Morgan Lynn Nguyen Carlin Wright Cindy Kitch

In order to provide you with all of the market segment newsletters we have in the past while remaining environmentally responsible, these special reports will now be featured online*.

Our Exclusive Newsletter Series is back in 2014!

Facebook.com/DeannaKoryTeam

Twitter.com/DeannaKory

Our EXCLUSIVE newsletters include:• The Riverside Drive-West End Avenue Report• The Townhouse Edge• The Central Park West Perspective• Uptown Luxury Newsletter• The Condo Report

Our EXCLUSIVE content wil l comprise:• Intelligent Analysis on the Market• Pertinent Trends & Historical Study• Average Price Per Square Foot & Sales Prices• Tips and Strategy for Buying & Selling• Forecasting Future Trends

*You will always be able to contact us for a printed copy if you desire.