Luxury Real Estate

Courtesy of Frederick Peters, President of Warburg Realty

The summer rentals are ending, the vacations are winding down, and all over New York City real estate agents are preparing for the fall season. After the economic uncertainty of the summer, it seems likely that both buyers and sellers will be second guessing their own decisions as the season progresses. So let’s try to answer some of the most basic questions here and now:

Why buy?

Although most New Yorkers rent, the answer to the question “why buy?” is a fundamental one which weaves it way through American life. In no other country is the concept of home ownership so enshrined. We give tax breaks for mortgages, tax breaks for real estate taxes, all because we as a nation believe so profoundly in the concept of home ownership. Kids grow up believing that owning a home is an indication of success, proof that you have made it. Home ownership has burrowed deep into the American mind set; it embodies both security and success. Renting is easy, it can be cheaper, but it doesn’t provide the same level of satisfaction or sense of arrival.

Why buy now?

This is a question agents can never answer. I have learned over the years that the smartest and most successful agents are facilitators, not convincers. The customer always has to answer this question for him or herself. I never try to talk anyone into anything. That said, there are always good reasons to buy now. It means you can begin the process of ordering your life around your new home. But…If you find what you want, then the time to act is now. Many buyers I have dealt with over the years have let go of a property they really liked because they were sure the market was too high, or a better one would come along, or that they could somehow second guess the trajectory of the marketplace. No one ever knows what will happen next, and more often than not they end up sorry. When you and your life are ready, be ready to act. The rest is all, ultimately, irrelevant.

What should I buy?

It always makes sense to reach just a little bit. Not to seriously overextend yourself; that is NEVER a good idea. But to try to buy the best space in the best location you possibly can. When my wife and I did that, we lived for a year with a 50 year old kitchen and over 20 years with original bathrooms. It took us a while to afford the renovations, but every day we enjoyed the wonderful location and spacious rooms of our apartment. Maybe it takes a few years to get new furniture. Maybe it takes a few years to tear down those walls or re-imagine that dining room as a family room. But as long as you got yourself good bones in a good spot, everything else will fall into place.

Courtesy of Michelle Poitevin of Realogics Sotheby's International Realty

SEATTLE, WA. (July 25, 2011) – Executives at Realogics Sotheby’s International Realty unveiled a property showcase of the Seattle area’s most exclusive condominium and town home offerings on the market. A progressive open house for brokers is being hosted tomorrow on Tuesday, July 26 from 3pm to 6pm. Each property listing and relevant market data is arrayed online at www.RealogicsSothebysRealty.com/Penthouses.

“Its peak season to present luxury homes in downtown Seattle as many locals and visitors are experiencing the allure of our world-class city,” says Dean Jones, Principal of Realogics Sotheby’s International Realty. “We’ve noted a steady increase of property inquiries from buyers around the corner and around the globe. We hope to add these fine properties to our growing list of sold listings so far this year.”

According to the American Society of Travel Agents, Seattle remains in the top 10 most visited US destinations during the summer months. Meanwhile, the US Department of Commerce says Washington (primarily Seattle) tied with Nevada for the greatest annual increase of overseas visitors in the country in 2010 – up 32 percent. The Port of Seattle reports cruise ship passengers will bring more than 800,000 visitors to Seattle with nearly 200 cruise liner port calls. More than 10 million people a year tour The Pike Place Market and The Space Needle with the greatest visitor traffic during July and August. Many of the featured listings are within walking distance of these attractions (tours by appointment only).

The seven featured properties include the following penthouses and town homes:

• Fifteen Twenty-One Second Avenue I #3800 I 2 Bed / 2.5 Bath I 2,999 Sq. Ft. I $4,995,000

• Olive 8 I #PH2 I 2 Bed / 2.5 Bath I 2,224 Sq. Ft. I $2,495,000

• Mosler Lofts I #PH2 I Two Bed / Two Bath I 2,000 Sq. Ft. I $1,990,000

• The Enclave at Lake Union I 2,500 – 5,200 Sq. Ft. I Pre-selling from $1,365,000 - $3,450,000

• Market Place North I #E18 I 2 Bed / 2 Bath I 1,919 Sq. Ft. I $1,195,000

• Waterfront Landings I #524 I 2 Bed / 2 Bath I 1,888 Sq. Ft. I $1,175,000

• The Sanctuary I 2 Bed / 2+ Bath I 1,278 – 2,428 Sq. Ft. I Accepting Reservations from $600,000

Jones estimates about half of the most recent $1 million+ sales have come from buyers out of state; be it for employment relocation, retirement, as a second home or even investment. Demand is also picking up locally but the majority of homebuyers in Seattle need to sell a home before they will buy a new home, which limits the number of transactions, he said.

“We’re exercising our (international) brand to attract a broader pool of buyers for our clients,” adds Jones. “It helps too that we have such amazing inventory to present – these properties are clearly in a league of their own.”

In addition to property detail information, the web page at www.RealogicsSothebysRealty.com/Penthouses offers helpful tools for prospective homebuyers trying to better understand the market dynamics. A “heat map” demonstrates where the $1 million sales have occurred over the past decade, there’s links to recent articles on the downtown housing market, a development pipeline illustrates the supply and demand and other statistics are provided from indices like The Northwest Multiple Listing Service and the popular S&P / Case-Shiller Home Price Index.

“I believe we’re at real turning point with downtown housing - so statistical information has become as important as the architectural design, location or views,” says Jones. “That said buyers and brokers tend to look at these unique penthouse properties a little differently than more typical condominiums. They’re similar to waterfront listing because like land, they’re not making any more towers. Penthouse living is an inherently finite commodity.”

EDITORS NOTE: For high-resolution images or statistical information please contact Michelle Poitevin at 206.448.5752 or Michelle.Poitevin@SothebysRealty.com.

About Realogics Sotheby’s International Realty

Launched in February 2010, Realogics Sotheby’s International Realty has quickly emerged as the top-selling brokerage of luxury multifamily properties (by dollar volume) in King County, according to Trendgraphix, Inc. The Seattle-based firm is comprised of more than thirty brokers and offers full real estate services for new construction, resale and mixed-use developments of single-family, townhome and condominium properties. For more information visit www.RealogicsSothebysRealty.com.

Courtesy of Frederick Peters, President of Warburg Realty

Every buyer is at some point a seller. But the personality of a buyer changes completely when that transition occurs. The same person who, as a buyer, offers low and doesn’t want to raise the offer to meet the seller’s “unrealistic expectations” becomes a seller and behaves in an identical fashion to the seller he so recently reviled-and usually without an ounce of self-consciousness. The question is how to make those seller expectations as realistic as possible? What do you need to do to maximize the value of your property? The economy is uncertain, the Eurozone is struggling-the last thing most buyers want is an additional headache. So how do you, as a seller, make your property the SOLUTION to a buyer’s problems rather than an extension of them? Let’s look at some ideas:

· Make sure you have all the proper documentation. Do you have all the sign offs from the contractors who did your renovation? Do you have a record of the Board’s approval of the renovation? Any buyer’s lawyer will want to see them. Did you combine apartments? If so, do you have a record of the Board’s approval of THAT? Have you removed the second kitchen and taken the other steps to make sure the combined space is completely legal? Do it before you take the property to market. How about the building’s recent financial statements? You will need them.

· As soon as you decide you are going to sell, start throwing things away. You can put a lot of your possessions in storage, but make triply sure you REALLY want them first. When we moved our second home recently, we threw a lot of our stuff away and then put the rest in storage for 18 months while we renovated. Then we moved into the house, unpacked everything, and threw away half of the things we had stored. So be ruthless the first time.

· Once you have gotten rid of a lot of debris, walk through the house with your broker and a critical eye to see what needs to be done. Chipping paint on the ceiling? Fix it. Bulging tile in the bathroom? Fix it. Those dark purple walls you thought were so cool? Paint them white. Replace the 40 watt bulbs with 60 watt bulbs. Or 75 watt bulbs. Buy a couple of halogen torcheres and but them in the dark corners to cast uplight. The goal is a space which looks under-furnished, airy, and bright.

· Try to think of the convenience of the buyer and not your own convenience. Make the showing hours as liberal as possible. Work overtime to keep mess to a minimum. Keep buying flowers. Make the beds. Kids (even teenagers) can be made to understand that selling the property is financially significant, and having their rooms look like Satan’s lair is NOT conducive to a successful sale!

· Price to sell. Remind yourself of what it felt like to be a buyer and let that inform your decisions as a seller. You want to choose a number which will draw the buyers in, not shut them out.

There are no guarantees in real estate sales; even the most experienced agents cannot say for certain how long the sale of your home may take. But if you follow these steps you are significantly improving the odds in your favor.

Courtesy of Frederick Peters, President of Warburg Realty

How do co-op Boards manage the purchaser approval process, and are they acting in an appropriate manner when doing so? These questions are the driving forces behind a contentious new bill which is currently before the New York City Council. The bill has been proposed to end hidden discrimination in the co-op selection process; it would require that all Board members sign an affidavit every time they reject an applicant confirming that they have not discriminated based on the New York City Fair Housing guidelines, which are among the most stringent in the nation. The bill would also create some parameters around Board response time: Boards would be given a certain number of weeks to request more information, a certain number of weeks within which to meet or reject an applicant without a meeting, and a final number of weeks within which to render a decision after a meeting.

Last week at The Real Estate Board of New York, members of the Residential Brokerage and Residential Management Divisions met together to discuss the bill and how REBNY should best respond to it. All were in agreement that, as long as they are reasonable and leave the Boards some latitude, time limits make sense. It is simply not fair to punish prospective purchasers, who only want to buy a new home, and prospective sellers, who only want to sell the home they have, by forcing them to waits months for a decision, or by issuing a seemingly endless series of requests for additional information. And of course these delays are particularly dispiriting when the ultimate answer from the Board is a “no”.

The other part of the bill requires a more nuanced response. First, those of us who have been in the industry for many years must acknowledge that co-op Boards do occasionally indulge in discrimination. It is not the norm, but it happens. Many protected categories, including race, children and family, sexual orientation, marital status, and religious faith, have been known to lead to turndowns in certain buildings. That said, the vast majority of co-op Boards act with the utmost integrity in pursuing the greater good of the buildings they manage. Evaluating prospective purchasers occupies a small percentage of their time; most of their work as a group is devoted to overseeing the staff and physical plant of the buildings for which they are responsible. And let’s not forget that this often thankless and time consuming task is done on a volunteer basis.

So the question is: is this bill the most effective way to guarantee that Boards do not illegally discriminate in their choices? I would argue that the answer is no, for several reasons. First and foremost, the proposed law is simply an invitation to litigation. Even if it does not cut back on discrimination, it will certainly discourage any well-informed person from wanting to expose themselves to lawsuits by serving on a co-op Board. Insurance costs for co-op buildings would almost certainly skyrocket. And who would be in charge of all those affidavits? And affidavit or no affidavit, who will admit to discriminating? Often Board members are not even aware that questions they ask are illegal or inappropriate. And some believe that because a co-op Board is a private corporation, these laws do not apply to them.

At the REBNY meeting I attended, Hall Willkie, the President of Brown Harris Stevens, had a terrific suggestion: Board education. Real estate agents are required to complete Fair Housing training. Why not do the same for Board members? One hour each year, why not require that an attorney come in and school the Boards on what they can and cannot ask, or consider, when evaluating a candidate? Before the law is punitive, it should be didactic. I am certain that Board education would substantially reduce discrimination of all sorts in the co-op world. And that would be a win/win outcome for buyers, sellers, Board members, and brokers.

You can read more on www.warburgrealty.com/blog.

Courtesy of Frederick Peters, President of Warburg Realty

This wonderful opening line from Keats’s poem “On First Looking Into Chapman’s Homer” also accurately describes my excitement (Philistine that I am!) every time I open the Select Register to look at a floor plan! In many ways I became a real estate agent, back in 1980, because of my love of floor plans. What makes them so great? I will try to classify my obsession:

· Through floor plans you can trace the history of the deployment of space in Manhattan. Manhattan is one of the world’s great apartment cities. From the late 19^th century, when multiple dwellings first entered the architectural vocabulary of New York, until now, the way we think about our lives and what is important is reflected in how we use space. 5 maids’ rooms? Not any more! Few people have that sort of staff. Efficiency kitchen? SO 1950s and 1960s. Today everyone hangs out in the kitchen. Formal dining room? In the first few decades of the 20^th century, it was the second largest room in the apartment. Now for most owners it is a multi-purpose TV/play/eating space. And the foyer – an important element of early apartment plans, it was then abandoned as “wasted space” for decades before making a triumphant comeback in the condo construction of the last 10 years. Architects have figured out that “wasted space” is rarely wasted-that it gives a sense of space and connection to everything around it.

· Through floor plans you can observe the ebb and flow of wealth and how it expresses itself. The early apartment buildings were tenements, definitely not planned for the wealthy or even for the middle class, since they lived in houses. Early grand apartment buildings like 998 Fifth Avenue, built by McKim, Mead, & White, struggled to find tenants. 998 had to offer cut rate rents to appeal to the rich man’s ever present sense of economy. And 998, with its towering ceiling heights, 40’ entrance halls and sweeping staircases, and multiple reception rooms all with fireplaces, resembled a private house as much as an apartment building possibly could. It wasn’t until the 1910s and 1920s that a truly specific New York apartment style was born, with buildings like Emery Roth’s San Remo and Rosario Candela’s 720 Park providing a variety of apartment sizes for wealthy clients who might need only one bedroom but still wanted maids’ rooms, a formal dining room, and a paneled library. Later, glass towers like Trump Tower and Museum Tower catered to globe hoppers, some American but many not, who found midtown a convenient address but who lived elsewhere, or nowhere, commuting between continents.

· Through floor plans you can watch the refining and redefinition of New York architecture. The tortuous plans of the early apartments, usually just a long hall with a series of rooms off it, are often echoed by their heavy neo-Gothic or Queen Anne facades. As the interior gives way gradually to the far more pleasing central foyer layout, there is a coincident move towards the iconic Manhattan apartment buildings which grace our skyline to this day. The beautiful interior planning of the Beresford, or the Normandy at 86^th and Riverside, or 1220 Park, are echoed in the graceful exterior shapes with which the buildings occupy their lots. The sleekness of the International Style and its aftermath find residential expression in such buildings as Museum Tower or 860 and 870 United Nations Plaza, where neutral curtains were provided in every window so the visual line and sweep of the space would not be broken by chintz! And today postmodernism shows itself in every prewar imitation, every red brick and banded limestone exterior; their interiors have updated and imitated the foyers, dining rooms, fireplaces, and setbacks of buildings conceived and created 80 years ago.

But my greatest fascination with floor plans lies in what they allow me to imagine about people’s lives. How wonderful to walk down that 30’ gallery towards the dining room for a dinner with friends. How beautiful to pause halfway up that semi-circular staircase to gaze out over the skyline of New York from the fan window. Our apartments embody us; they tell our stories. And for thirty years I have had the privilege of bringing those stories to the customers and clients I serve.

You can read more on www.warburgrealty.com/blog.

Courtesy of Michelle Poitevin of Realogics Sotheby's International Realty

Executives of Realogics Sotheby’s International Realty today released a sample price list for remaining inventory above the 27th floor at Olive 8 – a 229 unit condominium and hotel development in downtown Seattle. The new pricing strategy includes reductions across the board that vary from about 15% to more than 25% on some homes, according to Julie McAvoy, the Community Sales Director for Olive 8.

“Effectively, the price reductions is our seller making the first offer to homebuyers in this dynamic marketplace,” said McAvoy. “Selling today requires a conversation and we’re listening.”

The new price list comes out about a year after prior reductions that ranged from 10-15% and last fall an auction helped sellout targeted inventory below the 27th floor, according to McAvoy and NWMLS history. She estimates the total reductions in aggregate now range from 30-40% below presale pricing in 2007. “It a compelling opportunity for savvy homebuyers,” said McAvoy. “With prices correcting, timing the market may now have more to do with securing preferred selection and historically low interest rates versus anticipating further price cuts. I think we’re at a pivotal time in the center-city (Seattle) housing market and each community has a unique relationship within it.”

A preliminary look at median home prices (year-over-year) for all condominiums (new and resale) in downtown Seattle suggest a 13% correction from a peak in 2007 compared with 2010, according to NWMLS records. Meanwhile inventory appears to be shrinking, most notably due to a lack of new construction since the credit crunch stopped additional development in 2007. Pundits agree no new condo towers are expected to arrive to market for at least several years.

David Thyer, President of RC Hedreen Company and developer of Olive 8 says he monitors market values but acknowledges the only price that matters is the one that a buyer wants to pay. “We’re not inclined to further discount given recent sales comps in the building,” he said. “We know Olive 8 provides a great value today and we’re working our way up the building. Our three year construction loan extension provides us the time to sell into an improving marketplace over the next two years or so. Fortunately, we’ve saved our best inventory.”

McAvoy reports 10 new sales have been accepted so far in 2011 and active negotiations are taking place on several other homes. “I think buyers and sellers are finding better balance in supply and demand at Olive 8 and elsewhere,” she said. “It’s a signal that the market is stabilizing and an increase in sales means buyers are becoming more confident in home values.”

About Realogics Sotheby’s International Realty: Representing a significant volume of new construction condominium closings in downtown Seattle since 2008, Realogics Brokerage, LLC (DBA Realogics Sotheby's International Realty) has emerged as a leading sales and marketing company in the Seattle area. Managed by Realogics, Inc., the collective presents a fully integrated real estate solution comprised of market research, product development, full-service marketing and sales. The Realogics Group of Companies owns a long-term franchise within the Sotheby’s International Realty network and has since established a fastgrowing resale division. Realogics Sotheby’s International Realty is independently owned and operated by Realogics, Inc. For more information, visit www.RealogicsSothebysRealty.com.

Courtesy of Frederick Peters, President of Warburg Realty

Officially our recession is over. That said, there was more to our recent economic woes than bad mortgages. Too much borrowing by everyone - the Federal government, investment banks, individuals -, a NIMBY attitude towards any sort of economic pain inherent in realigning debt with equity, and the difficulty of competing with incredibly cheap third world labor in our globalized marketplace, all have their part in bringing us to our current economic identity crisis. And we are seeing a similar scenario play out in other nations around the world. So what does this mean for our local real estate marketplace?

First, condos, especially the prime buildings and locations, will be more in demand than ever. The US is still seen as a safe place for money, and buyers from all over the economically destabilized world want to park money here. The recent sale at 15 CPW for $10,000 per foot is only one of numerous examples, although the price is unique. But large units in ultra luxury condo buildings all over town are seeing multiple offers as Russian, Korean, Chinese, European and South American buyers compete for them. Alongside this phenomenon we still see an overhang of smaller condo units from the overbuilding of the last few boom years. Increasingly these units are moving from the rental market, where the developers had parked them while there were no purchasers to be found, back into the sale inventory, where they are being absorbed when properly priced. Increased sales activity in FiDi, Harlem, and the East 20s attests to this. This market for smaller units is at least as likely to be domestic as foreign, and buyers are shopping price point more than anything else. My prediction is that this inventory will be substantially absorbed within 12 to 18 months, and then what? The city’s population is growing but very little is being built. We will move from glut to scarcity – the only condos for sale will be resales. That will put upward price pressure on the existing condo housing stock.

We are already seeing that upward price pressure in the co-op market, especially at the higher end. Admittedly there has been enormous price capitulation in the past two years. But here too the excess inventory has mostly been absorbed and buyers have returned to the marketplace, eager to take advantage of the new pricing. And very little is for sale. Each appropriately priced new listing, whether 7 rooms or 12 rooms, receives a flood of visitors and often multiple offers in the first few weeks. There is far more demand than supply. That said, the dynamic of this process is very different from 2007. Almost no-one pays more than the asking price. Buyers are cautious and care a lot about value, even in the most expensive properties. I do not expect that this situation will change much as 2011 unfolds. Buyers will continue to be astonished throughout the year that there isn’t more to look at.

In 2011 we need to begin to get our national and individual debt/equity ratios back under control, so banks will lend money and creditworthy buyers will have access to it. We need to incentivize our developers to build so we can accommodate the growing population of our city. We need appropriate taxation, Federal, state, and local, which will pay for what we need but will not drive business and opportunity away from New York. We need inventory to sell, and purchasers to buy. And, of course, brokers to manage the process!

By: NBC New York

Courtesy of: Jacky Teplitzky of Prudential Douglas Elliman

Pam Godwin is on the hunt for a new apartment with her broker Max Dobens of Prudential Douglas Elliman. Pam has a place in the Hamptons and in the city, but she’s looking to cash out on her NYC condo to reduce monthly expenses. She’s looking for a three-bedroom co-op on the Upper East Side with a budget of $1.7 million. Watch as Max brings Pam to 420 E 72nd St and 525 E 89th St.

This episode of Open House was hosted from 151 Wooster St., contact Angela Latigona of Brown Harris Stevens at 212-906-9240. View the listing.

By: Puget Sound Business Journal - Jeanne Lang Jones

Courtesy of: Realogics Sotheby's International Realty

The two-story penthouse atop the Four Seasons Hotel and Private Residences in downtown Seattle has been sold for $7.19 million.

The 5,256-square-foot unit sold earlier this week as an unfinished shell for approximately $1,368 a square foot. Finishing the interior could cost anywhere from $200 a square foot on up, depending on what level of finishes the new owner wants, said Scott Wasner, director of the Four Seasons Private Residences and co-founder of Realogics Sotheby’s International Realty.

When the project opened, prices for finished units were running between $2,100 and $2,400 a square foot. Prices were later lowered by roughly a third to help spur sluggish sales.

There are 11 condo units remaining in the 36-unit project. Wasner said there were “a couple of deals in play” for the remaining units.

Realogics picked up representation of the Four Seasons Private Residences in August, partly because of the firm’s exposure to foreign buyers who have been displaying interest in high-end properties in the U.S., said Realogics principal Dean Jones.

“A large reason why we associated with Sotheby’s was to optimize our client listings for the international and interstate audience,” he said.

While he wouldn’t disclose whether the penthouse buyer was from another country, Jones did say several recent high-end sales on Mercer Island have involved foreign buyers. Additionally, about a fourth of the sales in the single-family homes and condominium projects his firm represents are to foreign or out-of-state buyers taking advantage of softer pricing and a weak dollar.

“Sales are good for the project — proceeds go to pay off obligations,” said Bill Lewis, CEO of the Seattle construction firm Lease Crutcher Lewis. The company has several liens against the project as it waits, along with several other companies, to be paid for its work on the project.

“We still have some things to work out with our client there and are working diligently on that and making progress,” Lewis said.

Read more: Four Seasons penthouse sells: $7.2M | Puget Sound Business Journal

Member Bob Hurwitz of Hurwitz James Co. provides insight on the 14-story oceanfront building.

In the U.S., the McMansion craze may be fading, but down in Costa Rica luxury has taken a super-sized turn. New to the market: the penthouse unit of the 14-story Genesis Puntarenas, a 68,459-square-foot oceanfront spread that’s a good 10 times the size of your standard American mansion.

For full article click here