Please visit the New blog DIARY OF A BROKER of New York Real Estate Broker Brian James.
Now taking pre-orders on FREE downloadable version of the REAL ESTATE SURVIVAL GUIDE, New York City edition.
http://www.brianjamesnyc.com/blog/
Earth Day should be every day, but today it is a time to remind us of how important our everyday actions affect the planet. With so many resources and information guides out there, one person can make a huge difference.
Be it recycling, walking, mass transit, or taking you own mug to Starbucks, there are many easy tasks and small changes can really make you feel like you are contributing.
Recycling everyday items alone can help protect our ozone layer, decrease pollution and decrease tree cuttings. Recycling is a start but using organic products such as food, cotton, baby products and wine are becoming readily available and economic to buy!.
Another easy change is to use compact fluorescent bulbs. Not only will you save energy by at least 75 percent, they work just as well as regular light bulbs and last up to 10 times longer.
In Manhattan, this is not only a trend but becoming a way of life. There are so many sites available to help you stay green and turn your home into an eco-friendly environment. New construction like The River House or your current apartment can achieve these guides of green.
GreenHomeNYC where their mantra is “we're working with building owners, builders, and suppliers of building products to promote the use of environmentally friendly, energy-conserving building practices and products in small buildings.”
They also hold a Green Building Forum on the third Wednesday of each month where green building practitioners present new ideas and then a discussion follows the presentation. It is co-sponsored by Pratt Institute.
Another cool city based organization is Green Apple Map. "In mid-2008, a new online interactive OpenGreenMap edition will feature NYC’s sites! Debuting a decade after our original online edition of the Green Apple Map, it will provide a forum for open submissions, commentary and green ratings, so everyone can help make this map a current resource for everyday sustainability, citywide and far beyond!" Definitely keep this in your bookmarks if going green is on your to do list!
10 Great Green Products:
1. Hybrid Cars
2. Cork Flooring
3. Organic Food
4. Organic Fertilizer
5. Organic Cotton
6. Green Cleaning Products
7. Compact Fluorescent Bulbs
8. Bamboo Clothing
9. Organic Baby Products
10. Organic Wine
Happy Earth Day! Let's all try to do our part!
Three months ago, one of my good friends attained an accepted offer on a co-op. It was a second purchase for him and he knew the ins and outs of the entire co-op process. I put him in touch with a few mortgage brokers and he went with one guy who really made sense, and informed him of some amazing products that were out there.
The Contract was signed in December and now after a long process, submitting the package and board approval we were set to close May 1. That was until yesterday.
Some big name banks and many other lenders the mortgage people work with on the wholesale side became very ugly in their rates.
After speaking with the buyer, the finance guy flipped the loan to smaller bank who has a great 7 year ARM @ 5.375% with a point.
Everything was great until they came back and said their guidelines require all 4+ story buildings to have an elevator. Ughhh! What a MESS! To make it worse the next best bank was @ 6.25% without points.
Long story short, The "Big Bank" or (retail) had better terms then their wholesale counterpart for the buyer's scenario.
So now the next step is re-submitting all the papers to the board hoping it is approved. So at this moment, The mortgage lost his sale, I may lose mine, and even more of an impact the buyer might lose his deposit. Keep your fingers crossed.
Tumbleweeds roll by and the street seems empty. It's high noon and two men at 50 paces stand ready for the fire. Arms at their sides, guns on their hips each ready to reach... grab... and shoot. But nothing happens, almost 1230 now and they are still standing.
I came across this list today while doing some research for a great couple who is buying a condo. After the accepted offer we have encountered many little hiccups that are now adding up to agita!
Check this out! And you thought locking your door or a pit bull was good security!- Brian
Homes Stolen via ID Theft on the Rise
The FBI calls it the “latest scam on the block,” but for years now we’ve been warning people and reporting about scam artists who steal your identity and then your home. Now, after years of reporting and writing about this sinister act, the FBI is stepping up its efforts to make homeowners aware of the horrible connection between identity theft and real estate fraud.
Full Story
www.flippingfrenzy.com/category/california/
Check out this magic symbol and trick. the folks at the New York Times have made it even easier and greener when you are on the hunt. If you find yourself lost or having written down the wrong address use this easy way to track down your next home!
March 13- March 28 2008
Average Sales price increased to $2M from $1.3M
Median Sales price increased to $1.3M from $935k
Sales above $3M increased to 22% of transactions from 8%
Sales below $1,000,000 decreased to 41% from 54%
Discount from last asking price increased slightly to 2% from 1.4%
Discount from original asking price increased to 3% from 2.1%
Transactions sold at ask or above increased slightly to 56% from 49%
Median number of days on market from last ask price decreased to 42 days from 47 days
Active listings on market have increased to 8,984 from 8,650
Below is an article that was sent to me by one of my customers. At first I flinched, then I decided to slowly read it and take it in. Yes we are in an odd economical state, but there is opportunity out there.
Buyers can really capitalize and sellers are making profits. They might make a real profit of 400K instead of 480K on a property they are selling.
If we all decided to cash out our stocks and funds, stuff our money under mattresses and wait for a brighter day it would be much worse. We must control the situation and not let the media control us.
In time things will even out, just like the 4 dollar cup of coffee, apartments prices went up dramatically. Cheap money and limited stock furthered this phenomenon. But just because things have slowed or tipped down, it doesn't mean Starbucks will start selling their cup of joe for 1 buck instead of 4.
I say be educated, but be realistic. Its a recession, we are in one but historically 8 months is what we need to wait it out. GIVE IT SOME TIME. Time will tell and things will balance out.
By Sharon L. Lynch April 2 (Bloomberg)
Manhattan apartment sales plunged the most in 18 years in the first quarter as buyers faced the prospect of a recession and job cuts at Wall Street securities firms.
Sales fell 34 percent from a year earlier and inventory rose 4.6 percent to 6,194 units, New York-based real estate appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate said in a report today. The median price of a Manhattan co-operative apartment or condominium increased 13.2 percent to a record $945,000.
``If it continues along this pattern, we're in a period of transition to a weaker market,'' Miller Samuel President Jonathan Miller said in an interview. ``You typically see a slowdown in sales activity precede a slowdown in pricing.''
Financial companies have cut at least 34,000 jobs in the past nine months as losses and writedowns related to mortgage- backed securities climbed to at least $230 billion. Wall Street drives Manhattan real estate, with the median apartment price roughly tracking bonuses paid by investment banks since 1997, Miller said.
``There are a lot of buyers out there,'' said Prudential Douglas Elliman Chief Executive Officer Dottie Herman.
``It's not that they're not looking, but there is no sense of urgency,'' she said. ``If you continue to see inventory rise, that would be a sign that you are going to see a price dip.''
Prices Rise
Until now, Manhattan has avoided the national housing slump. Last year, the U.S. saw the first drop in existing home prices since the Great Depression, while Manhattan apartment prices rose 3.6 percent, according to Miller Samuel.
Gains continued in the first quarter, according to today's broker reports. The Corcoran Group said the median for condos and co-ops rose 9 percent to $917,000. Terra Holdings LLC, which owns brokers Brown Harris Stevens and Halstead Property LLC, said the median climbed 13 percent to $855,000. The numbers vary in part because each broker includes some of its own sales that have yet to show up in the city's public records database.
About 30 percent of all first-quarter closings were for apartments in new developments that went into contract before turmoil hit the credit market, said Gregory Heym, chief economist for Terra Holdings.
``They are pre-credit crisis, pre-Wall Street worries, pre- new mortgage standards,'' he said in an interview. ``You see a delay in impact in these numbers.''
`Emboldened' Buyers
Areas where buyers are worried about future price appreciation will be the first to slip, particularly neighborhoods that saw quicker-than-average price growth in recent years, said Pam Liebman, Corcoran's chief executive officer. She declined to be specific. Harlem in Manhattan and sections of Brooklyn including Dumbo, short for Down Under the Manhattan Bridge Overpass, are possible locations.
Brokers are waiting for any fallout from job losses on Wall Street or from JPMorgan Chase & Co.'s takeover of Bear Stearns Cos.
``What we are seeing now is buyers who are emboldened to be more aggressive in their offers,'' Liebman said. ``They don't hesitate to bid lower and sellers now will have to decide whether or not they want to lower their prices.''
Apartments are already taking longer to sell. The average time spent on the market rose 12 percent to 146 days, according to Miller Samuel.
Luxury Gains
In Brooklyn, New York's most populous borough, the median price fell 2 percent to $549,000 last quarter, according to Corcoran and real estate appraiser Mitchell, Maxwell & Jackson Inc. Both Manhattan-based companies are closely held.
The average price per square foot of a Manhattan co-op rose 16 percent to $1,128 for the quarter, Miller said. For condos, the price per square foot gained 21 percent to $1,416. Co-ops make up more than two-thirds of Manhattan apartments. Residents of them buy shares in a corporation that owns the building, rather than having a deed to the property itself.
On the East Side, the greatest price appreciation was in apartments with at least four bedrooms, with the average rising 53 percent to $13.6 million, according to Brown Harris Stevens. On the West Side, three-bedroom apartments gained 90 percent to an average of just under $5 million.
Lofts Fall
Prices on Fifth Avenue jumped 63 percent in the quarter to a median of $6.5 million, and on Park Avenue the median jumped 23 percent to $3.3 million. The median price of lofts fell 12 percent to almost $1.45 million, Corcoran said.
The luxury market also saw big increases, largely due to multimillion dollar condominium sales at the recently converted Plaza, and at architect Robert A.M. Stern's 15 Central Park West.
The median price of a luxury apartment rose 46 percent to almost $5 million, Miller Samuel said. Corcoran's estimate was an increase of 18 percent to $4.4 million. Both companies consider apartments of more than $2.8 million as luxury.
``There is no question 2007 was the record year for real estate in New York City,'' Liebman said. ``I don't think any of us will be surprised if 2008 doesn't hold up in comparison.''
To contact the reporter on this story: Sharon L. Lynch in New York at sllynch@bloomberg.net
Last Updated: April 2, 2008 10:59 EDT
In a recent article in the NY TIMES, the topic of commissions came up. Now I wont be planting flowers, but going the extra mile is always required with any sale, be it 300K or 30 Million.
Granted the 300K apartments tend to need more work!
By HOPE REEVES
Published: March 30, 2008
IN any real estate market, the question is asked, in voices both low and loud: What exactly do those brokers do for their 6 percent commission?
The wondering seems especially relevant now, when both buyers and sellers are tense, not knowing if prices will continue their upward move or if they are headed down.
On a typical sale, the broker gets 6 percent of the sales price, with 50 to 75 percent of this amount going to the broker or being shared with the broker and the company representing the buyer. The remaining 25 to 50 percent goes to the company representing the seller.
The broker’s part of the commission isn’t just gravy; it is used to cover some of the selling expenses. “Our agents pay for things a lot,” said Pamela Liebman, president of the Corcoran Group. “Being an agent is really running your own business, and if you’re not willing to invest money yourself, you’re probably in the wrong business.”
Full article: http://www.nytimes.com/2008/03/30/realestate/30cov.html?_r=1&oref=slogin
Why not? Well not so easy any more. Below are a few facts and tips on this topic. make sure you work closely with a mortgage broker and get this down as soon as possible. Closing costs
Can I do this on....New Developments, SURE! Older Condos Why Not?, Well as long as its a seller's concession. Estate Sales? Hmmm can get tricky...and Coops- Just pay it up front!
Rolling the closing costs into the loan amount on your refinancing isn't a bad thing -- as long as that is your intention. Mortgage lenders that advertise no closing costs really mean no cash paid by the homeowner at closing, other than money from the proceeds of the loan.
If you don't plan on staying in the house very long, then you really need to consider these costs when you decide whether refinancing makes sense. If you add $3,000 in closing costs to a loan balance of $100,000 and your monthly payment goes down by $50 a month, you need to stay in the house for about five years to recoup your closing costs.
As you'd expect, and shown in the example below, the monthly payment is higher when you finance the closing costs. So it will take you that much longer to recoup the closing costs. The other side of the coin is that you didn't have to come up with the $3,000 at closing. Assuming you have the money to pay closing costs, the $3,000 can stay invested earning you a return. Include the income from that investment in the analysis, and the difference in payback between the two approaches lessens.
Check out the FHA Library. Full Smart Money Article: http://www.smartmoney.com/home/buying/?story=closing
MORE ON PERSONAL FINANCE FROM SMARTMONEY.COM
Tax Breaks on Home Sales
Borrowing From Uncle Sam
With all that is going on in the WORLD around us, prices in Manhattan aren't plummeting but most definitely adjusting to the market!
CBS News Timeline: Credit Crunch
The Manhattan Market Report - A 10-Year Sales Trend Analysis of Manhattan Co-op and Condominium Apartments and The Manhattan Townhouse Report A 10-Year Sales Trend Analysis of Manhattan Townhouses.
All the reports have been posted on prudentialelliman.com in the market report area as well as on UPDATE in the Marketing area in the Market Report Folder.
You can download and email the PDF file or send a link to our external site - http://mail.elliman.com/exchweb/bin/redir.asp?URL=http://www.prudentialelliman.com/MainSite/MarketReports/ReportsMenu.aspx - please do not print out the report in it's entirety - save a tree:-)
With the sale just announced of Bear Sterns for $2/share after it stood at $30/share on Friday to JP Morgan and all the other financial problems in Wall Street, you may wonder what is the outlook for higher end Manhattan property?
Average Sales price decreased to $1.3M from $1.9M
Median Sales price holding close to $1M at $935k
Sales below $1,000,000 hold strong at 54%
Discount from last asking price slightly increased to 1.4% from -.5%
Discount from original asking price decreased to 2.1% from 2.7%
Transactions sold at ask or above increased slightly to 49% from 47%
Median number of days on market from last ask price decreased to 47 days from 55 days
Active listings on market have decreased to 8,650 from 8,470
Sunday afternoon I was out with a buyer taking a look at two bedrooms south of 23rd street on the east and west side. After a myriad of properties we ended up just east of union square at a coop. A no fuss no thrills building but nice and presentable. Good location etc etc.
We walked in and the 1300sq ft apartment. This place was bustling with people. It was bright and had an interesting layout, but in the original condition since....the late 70s early 80's? It was an estate sale, blue carpeting, fogged windows peeling paint, old and awkward baths but it had two things going for it. PRICE and POTENTIAL.
We walked out and were waiting with a couple and their daughter for the elevator. " I say we low ball em, 750...you offer 755" she said. " 1.2 for that? are they crazy?" I smiled and thought the 1.2 number was a hop but that they would take less.
After we left the wheels began to spin and both the buyer and I thought this was a great opportunity and were ready to move. His wife came to see it and the potential was agreed upon. We called the next morning to set up an appointment for a contractor. I waited patiently for the call back.
I called again. I was told I could go at the requested time and the key would be with the doorman.
We were set, armed with a bid and a contractor's appraisal we were meeting then submitting the offer. two hours later I got a call saying, we have an accepted offer so don't bother showing it tomorrow.
Unreal, an estate condition apt for 1.2 can sell in 24 hours while there are so many nicely done apartments just sitting out there. I guess the moral of the story is people would rather pay for nothing, than pay for someones time and tastes.
by Amey Stone Mar 13th 2008 @ 10:30AM
This is part of our series on strategies you can adopt to free yourself from burdensome debt.
There is no doubt that the hardest part about getting out of debt is finding the extra cash to do it with. Most of our posts here on WalletPop deal with different shades of that perplexing question -- how to generate extra income, spend less money, find the cheapest credit cards -- all towards the goal of reducing your punishing levels of debt.
But there is another, not quite so hard question about getting out of debt that we've only scratched the surface of so far on WalletPop. That is, once you've unlocked that extra cash and are in a position to start actually getting out of debt, what is the best way to pay it off?
Simple answer: That depends on your goals. In this series we list common reasons people want to reduce their debt load and the best strategy for that goal.
The two main techniques for spending down debt, our blogger Lita Epstein has come up with are the 'Snowball Effect' and the 'Round Robin.' The snowball effect is best for people who are getting eaten alive by high interest charges on their credit card balances. The plan there is to simply pay off your high interest credit cards first.
Things get more interesting with the round robin plan. That technique is best for people who are anticipating needing a large loan in the near future and want to improve their credit score in a hurry. The round robin technique advises you to pay off a chunk of each credit card in consecutive months until the balance on multiple cards (assuming you have them) is a small percentage of your total credit limit. That's a great way to raise your credit score, Epstein advises.
From those two basic methods, we've come up Wit some other situations that call for different debt-elimination techniques.
- You want to repair relations with the friends and family members you've borrowed money from.
- You are afraid of losing your home.
- You are close to retirement and don't want to leave your job with a heavy debt burden.
- You just got a big windfall and have a one-time chance to get out of debt.
Any of these fit your situation? Read on through the posts in this package. Do you have any additional questions for our credit and debt experts? Write to us at WalletPop and we'll do our best to help you come up with a solution.
By CHRISTINE HAUGHNEY
Published: March 9, 2008
NEW YORK CITY real estate has become a shadow of its frenzied former self in recent months, as buyers and sellers take a more deliberate approach to reaching deals.
Some sellers have pulled their apartments off the market for now, in the hopes that they will have better luck in the traditionally more robust spring season, which typically begins in April. Others have pulled out altogether, thinking it would be better to wait for a year or more to get the price they want. Sellers who really need to sell now are finding that they have to work a lot harder to attract buyers.
Many sellers, it seems, are discovering that they have to spend some money to spruce up their apartments before they can sell them. In fact, the decision on when to sell is often based on how much work needs to be done. Some sellers are tackling long-term plans, like carving an extra bedroom out of existing space, while others are making quick fixes, like replacing light fixtures and switch plates.
In the end, overall prices are stable or even rising, and the properties that are selling are priced just right or have sellers who are willing to negotiate.
“There’s definitely always that sense of fear that we may not sell it or that we may have to drop the price,” said Christopher Lauretani, who, with his wife, Maria, is trying to sell their two-bedroom on the Upper West Side.
The couple want to sell because they are sharing a bedroom with their 10-month-old daughter, Gabriella, and they want to be settled in the suburbs by the time their 3-year-old son, C. J., starts kindergarten.
But they are approaching the process very differently from when they bought their apartment, at 2166 Broadway, at 76th Street, in 2004. As buyers in a boom market, they didn’t worry that the kitchen needed renovations, and they paid more than the asking price just days after the place went on the market.
“It was a frenzy when we bought it three and a half years ago,” Mr. Lauretani said.
This time, as the sellers, they’re giving themselves 18 months to find a buyer. They had already meticulously renovated the space, but they repainted anyway. They believe the apartment, with two bedrooms and two baths and a large terrace, is priced competitively at $1.2 million.
But after more than a month on the market and no offers, their broker, Elaine Clayman of Brown Harris Stevens, advised them that an “active but not frenetic” market requires patience. They’re still adjusting to these new conditions.
Brokers and researchers say the current low inventory in New York City could help the city withstand the problems that have plagued much of the rest of the country, where inventory is high.
In January, Manhattan had just 5,641 apartments for sale, compared with 7,640 at the height of the market in the second quarter of 2006, according to data tracked by the Manhattan appraisal company Miller Samuel Inc.
At the same time, the inventory of for-sale apartments is soaring nationally. There were 4.19 million homes for sale in the United States in January 2008 compared with 3.54 million in January 2007, according to the National Association of Realtors.
Diane M. Ramirez, the president of Halstead Property, said that these conditions are making New York City a healthier market. Sellers are working harder to get buyers, and buyers aren’t distracted by too many choices. Both sides appear willing to make deals.
“The inventory is part of the reason that’s keeping the market so strong,” Ms. Ramirez said. “There’s so little choice. Excess inventory is always going to drag your prices down.”
Sellers who do their homework are finding that their efforts can pay off.
Carolyn Walkin and her husband, Jim, wanted to move to the Long Island suburbs to find better schools for their daughters, Ava, 4, and Veronica, 2. But they were so worried about a potential recession that they did extensive research to ensure they could sell their three-family brownstone on Henry Street in Cobble Hill, Brooklyn, for the price they wanted.
Ms. Walkin spent about five months and had conversations with at least seven brokers before choosing Terry Naini of Prudential Douglas Elliman. Before that, she had also researched auction houses and considered selling the brownstone without a broker.
Even though they finished an extensive renovation two years ago, they added details like art on the walls to attract sellers. Within one hour of their first open house, they received an offer for their asking price of $2.5 million. But Ms. Walkin didn’t relax until the paperwork was signed.
“I wasn’t confident that I was going to get the price I wanted to ask,” she said. “I believe we timed it well.”
Some sellers are looking for ways to get their price, even if it means waiting a year.
In 2005, Justin and Lucia Muntean bought a two-bedroom condominium at 227 East 111th Street for $650,000. Back then, they expected to live in their apartment, in East Harlem, for two years and sell it for $850,000 to $925,000, Mr. Muntean said. When they put it on the market in August, however, they asked $799,000.
FULL ARTICLE:
http://www.nytimes.com/2008/03/09/realestate/09cov.html?_r=1&oref=slogin
At 2 a.m. on March 9, 2008, groggy Americans will turn their clocks forward one hour, marking the beginning of Daylight Saving Time (DST).
In case anyone is wondering how they could have missed the most expensive co-op ever listed on Central Park West, it's because it came and went in less than 72 hours. Today's Observer has the story of the $36 million, 12-room duplex penthouse at 55 CPW. The listing went up on Feb. 21 on the Brown Harris Stevens website. Steve Gottlieb of TVT records (Nine Inch Nails, Guided by Voices, Lil Jon, Ying Yang Twins) had bought the penthouse in 1999 for $8.6 million. Alas, the listing was posted on a Friday and vanished by Monday morning after calls from the Observer's Max Abelson, who writes, "Mr. Gottlieb might not have wanted the press that comes with such a big listing" because of some trouble at TVT Records. The same week the co-op (with monthly maintenance of $10,691) was listed, the label filed for bankruptcy protection. Presumably, it's still on the market, though.· Central Park West’s Priciest Listing—Now You See It, Now You Don’t [NYO]
By JAY ROMANO
Published: March 2, 2008
MOST co-op and condominium owners know they get income-tax deductions for the mortgage interest and property taxes they pay on their apartments.
But what they may not know is the full range of tax breaks available when their apartments are sold.
“As a starting point, many owners of co-ops and condos overstate their profit when they sell because they understate their tax basis,” said Julian Block, a tax lawyer in Larchmont, N.Y. “And that is because they fail to take into account improvements made to the building itself and in the case of co-op owners, their share of the amortization of the building’s mortgage.”
At present, Mr. Block said, owners who sell their houses or apartments can exclude up to $250,000 in profits on the sale, provided the home was their principal residence for two of the five years before the sale. (For married couples filing jointly, the exclusion is up to $500,000.)
The profit — or capital gain — is calculated by subtracting the tax basis of the home and the costs associated with the sale (broker’s commission, lawyer’s fees, transfer taxes) from the sale price. The tax basis is the acquisition price plus the costs associated with the purchase and any capital improvements.
Co-op or condo owners are covered by these rules, just as any other homeowner is. So, for example, an apartment owner who completely renovates the kitchen can add the cost to the tax basis. But an owner who simply paints the kitchen walls cannot add that cost to the tax basis because routine maintenance is not considered a capital improvement.
What is unique for owners of co-ops and condos is that they can include in their basis their proportionate amount of the money spent for buildingwide capital improvements.
“Over the years, this can amount to a significant amount of money,” Mr. Block said.
Co-op owners get an additional tax break. Along with an annual deduction for interest paid on the mortgage on their apartments, co-op owners also get to increase their tax basis for their share of payments that reduce the principal of the building’s mortgage. This does not apply to condo owners because there is no mortgage on the building itself.
“And there is yet another way for a co-op or condo owner to reduce capital gains,” Mr. Block said. Many co-ops and some condos impose flip taxes, often a small percentage of the sale price. Since the flip tax is really a transfer fee, the seller can subtract it from the sale price as a cost of the sale, thereby further decreasing the gain realized.
Joel E. Miller, a Queens tax lawyer, said that since co-ops and condos keep detailed financial records, it should be fairly easy for owners to determine their share of qualifying capital improvements made over the years — as well as their share of the amortization of the underlying mortgage — by getting the information from the managing agent.
But he added that it was up to individual owners to keep accurate records of capital expenditures made in their own apartments.
By TERI KARUSH ROGERS
Published: February 24, 2008
By Mark Heschmeyer
Much has been made of the impact of the credit crunch on the slowdown of commercial real estate investments. But just as impactful as the lack of available credit right now, is that buyers and sellers have not yet come to terms with the the 'new reality' and remain at opposite extremes in terms of pricing, which further exacerbates the current deal paralysis gripping the market. There is almost no investment real estate market at this time, say industry executives and brokers... »
Click here for full story
» Retail REITs Seizing Opportunities in Soft Market
» Medical Office Deals Give Shot In The Arm To Ailing Commercial Market
» Stock Prices Linked With Sustainability, Survey Finds
Where will Britt and the rest of us go?
Tomorrow evening, starting at 5:30 p.m. (local time), your neighborhood Starbucks is closing. Yes, yours -- and yours, too. (If you live in the U.S., that is.) CEO Howard Schultz has ordered this emergency intensive remedial training, hopefully giving baristas valuable skills they should have learned in the ordinary 40-hour new "partner" training. One of the skills -- which, according to one New York Starbucks manager involved in the test training program, was a "revelation" to some of her workers -- is a milk steaming technique that will allow baristas to "free pour" (without holding foam back with a spoon) the milk no matter how the customer orders the drink. Partners will also be instructed to wipe the steamer wands and rinse the pitchers and shot glasses every time -- not a new idea, but according to anecdotal evidence, also not commonly done. A new procedure will be instituted for the espresso machines; baristas will always pull a double shot, instead of occasionally pulling only one when only one shot is needed. This, apparently, will assure a better-tasting espresso.Baristas, customers, stockholders and analysts all seem to agree that, much though retraining may be necessary for some individuals, it's not bad foam that has prompted the dip in Starbucks' (NASDAQ: SBUX) stock price; no, it's the uneven and quixotic management initiatives. Now, we're a coffee shop... now we're the "third place" with comfortable chairs... now we're a movie studio... now we're an Apple store... now we're a book publisher/record company/toy store/candy store/cookbook... now we're a fast food joint. It's enough for stakeholders to all rise up with a single voice and ask plaintively:
Contract Signed Report.
By MICHAEL STOLERFebruary 21, 2008
As the second month of 2008 comes to an end, members of the real estate community are beginning to accept the fact that the market has seen a price correction. Purchasers of residential rental property in New York City have had to adopt a whole new terminology, with phrases like "all-cash purchaser," "seller financing," "full and limited recourse," "higher debt service coverage," "lower loan to values," and "personal guarantees."
Despite the new rules now in place, investors are actively pursuing ownership of residential rental developments across New York City. With steady and even rising rents, demand is booming for the city's rental apartment buildings, which represent a safe haven for investors weary of uncertainty elsewhere in the real estate market.
"We continue to see strong fundamentals in the New York rental market," the president of Vantage Properties, Neil Rubler, said: "While operating expenses, particularly energy costs, have inflated significantly in the past 24 months, demand for rental units remains strong, with vacancy rates running south of 3% in most neighborhoods." Mr. Rubler added: "On the investment sales side, continued support for the asset class among both balance sheet lenders and financing agencies, like Fannie Mae and Freddie Mac, make both acquisition financing and refinancing far easier than in other asset classes. This said, leverage levels are generally in the 65% range versus the 80% and plus range that had been commonplace at this time last year, and spreads are up by several hundred basis points, offsetting lower benchmark pricing, which include Swaps or Treasuries. The net effect is that a buyer's overall cost of capital has significantly increased, and deals are generally being underwritten at levels of between 5% to 15% off of the highs achieved in the second quarter of 2007. Sellers generally have taken a wait-and-see attitude, and many aren't yet willing to accept enough of a price adjustment to make most deals work. This said, New York rental multifamily property remains far more liquid than other real estate categories, and we continue to have a very full pipeline of pending transactions."
The co-founder and managing director of Stonehenge Partners, Ofer Yardeni, is very bullish on New York, and especially its residential rental market. Late last year, his firm closed its Stonehenge Opportunity Fund II, and in the last three months it has closed on more than $400 million in property acquisitions. Last month, Stonehenge acquired both 360 E. 65th St. and 347–351 E. 58th St. for $126 million and $10 million, respectively. Last week, Stonehenge closed on the acquisition of 8 Gramercy Park South and 141 E. 33rd St. for $82 million.
http://www.nysun.com/article/71584?page_no=1
By SARA SCHAEFER MUÑOZFebruary 19, 2008; Page D1
In a bid to stand out in a sagging housing market, an increasing number of real-estate agents are marketing themselves as eco-friendly -- connecting environmentally conscious buyers to "green" homes and helping sellers make their homes more eco-sensitive.
These agents are promoting their knowledge of eco-friendly and energy-efficient properties on their Web sites and blogs. Some are taking courses to learn about things like geo-thermal heat pumps and how to help home buyers qualify for grants and tax credits for energy-saving improvements.
Yet some housing experts question whether some agents are using a cursory knowledge of green building as a marketing ploy in a tough market. "A Realtor may support [a purchase] regardless of how green the home is," says Jay Hall, acting director of the eco-friendly homebuilding program at the U.S. Green Building Council in Washington.
Still, there are ways to check a real-estate agent's earth-friendly credentials. And for consumers who don't know much about green building or the recent proliferation of green construction labels, these brokers can be helpful, Mr. Hall says.
Many Realtors hope so. Green Key Real Estate in San Francisco asks on its site: "Wouldn't you rather work with a Realtor who shares your values in environmental and social responsibility?" and sends its agents to environmentally friendly building courses. Last fall, Harry Norman Realtors in Atlanta had 48 Realtors certified by EcoBroker International, which educates Realtors on eco-friendly homes and marketing. Meanwhile, individual Realtors are carving "green" niches for themselves: Celeste Karan, of Keller Williams Realty in Chicago, started www.greenhomechicago.com, a site where she lists properties and promises "to help home buyers understand what truly constitutes a 'green building.'"
Such agents say their knowledge of environmentally friendly designs and materials can help clients in several ways. First, the brokers will link interested buyers to homes that are built with eco-friendly features, like solar power and energy-efficient appliances. Even if the property is old and lacks such features, agents can walk buyers through possible retro-fits that will lower their energy bills or improve indoor air quality.
When it comes to sellers, agents can advise them on simple projects that can make the home eco-friendly, such as improving insulation or touching up the interior with nontoxic paint in a bid to attract buyers.
EcoBroker International, which offers courses for Realtors, says its program has certified more than 2,600 agents total, doubling the amount since last year. Based in Evergreen, Colo., its classes include things like how to make improvements in indoor air quality, what types of eco-friendly retro-fits will be the most cost-effective, and how to piece together the state and local tax credits or grants for "green" projects. Realtors then earn an EcoBroker designation, something concrete that agents can use as a marketing tool, says EcoBroker chief executive John Beldock.
Kermit Baker, a senior research fellow at Harvard's Joint Center for Housing Studies, says it's a potentially good strategy at a time when there's a glut of homes for sale. "Anything that would make you stand out in this market would help," he says.
So-called green real-estate agents represent properties such as this planned solar-powered home in Geos, a community in Colorado (above) and eco-friendly apartments in the Green Armitage building in Chicago (below).
Existing-home sales fell 2.2% in December from November to a seasonally adjusted annual rate of 4.89 million units, according to the National Association of Realtors, a national trade group. The median home price was $208,400 in December, down 6% from a year earlier.
Hugh Morris, the community outreach representative for the National Association of Realtors, the national trade group, says pitching environmental certifications isn't the only way Realtors are trying to distinguish themselves these days. A few are marketing themselves as experts in historic properties, while one even says his specialty is homes near nature trails. Yet Mr. Morris says interest in "green" properties has surged; he now answers about five calls a week from Realtors asking how they can get eco-friendly credentials, compared with none a year ago, he says.
When Tonia Lee wanted to sell her one-bedroom live/work townhouse outside Atlanta, she turned to local EcoBroker Carson Matthews after coming across his blog online. The home, which she listed at $325,000 a few weeks ago, is part of a sustainable-development community and has many eco-friendly features, including a highly efficient heating and cooling system, energy-efficient appliances and a permeable driveway surface (which absorbs the water instead of adding to run-off). With his blog and knowledge of the benefits of "green" building, she figured Mr. Matthews was well-positioned to sell the property.
With a regular agent, "I don't think I would get the niche buyer I am looking for," she says.
The growing number of such real-estate agents come as the building community is in the midst of defining what "green" is. In December, the U.S. Green Building Council -- a nonprofit that rates commercial buildings on things like energy use and indoor-air quality -- introduced similar rating systems for people's homes. The National Association of Homebuilders, meanwhile, is working with the International Code Council to develop a green building standard. Yet another certification is available through the federal government's Energy Star program, which requires homes to be at least 15% more energy-efficient than those built to the 2004 residential code. States and local building associations, too, may have their own green building programs or guidelines.
Real-estate agents say they will sort through the confusion. Celeste Karan, of Keller Williams Realty in Chicago, asks to see prior utility bills or whether the home is Energy Star rated so she can promote how much actual savings a buyer can expect. She also points out that some homes with quick-fix improvements -- so-called greenwashing -- may not be as eco-friendly as they sound: Bamboo floors, for example, are often touted as "green" because bamboo is a rapidly renewable material. But most bamboo comes from China, and lots of energy is used in shipping the products halfway around the world.
Another perk EcoBrokers can offer is helping to find buyers energy efficient or eco-friendly mortgages. These are mortgages that offer bigger loans or discounts if buyers make energy-efficient improvements or if their new home meets certain efficiency standards. Last year, Bank of America Corp. launched an Energy Credit mortgage, which offers a $1,000 credit toward closing fees for mortgages on new homes that meet efficiency requirements set by the government's Energy Star program, and Indigo Financial Group, based in Lansing, Mich., started selling such mortgages in Michigan, Indiana, Illinois and Florida in 2005, and recently expanded to Kentucky, Missouri, Tennessee and Alabama.
Yet some consumers say that when it comes to environmentally friendly homes, it's easy enough to do research on their own. Bruce Ray, a Chicago pastor, is seriously considering a $400,000 three-bedroom apartment in Green Armitage, a new building made with features like recycled and locally sourced materials, nontoxic paint, and insulation so tight it promises buyers no more than $600 a year in energy bills for the first two years. He says his belief in stewardship of the environment led him to research the various eco-friendly properties and understand the features they offer. As for the "green" agent who showed him the place, he said she was knowledgeable, but her pitch wasn't what sold him on the property.
"There's so much green information for people now," he says. "I think people who are interested in these buildings are already pretty eco-friendly, already driving a Prius and recycling and composting."
