By David Rogoff and Bonnie Chernin
Many sellers are unaware of the potential issues they face when selling a tenant occupied property. Here are the 10 most important guidelines to follow based on our experiences:
1. Access to the property is key for selling your home in a timely manner. Buyers want to see your home on their schedule, not your tenant’s. If there are continuous delays and broken appointments for viewings buyers will move on.
2. Inspect your property and repair all obvious defects such as leaks, broken appliances, windows, electrical and plumbing issues. If necessary hire a home inspector to identify potential issues for you. Certainly a potential buyer will hire an inspector to identify a leaking roof or electrical problems. Angry tenants have been known to point out defects to buyers during walkthroughs.
3. Neatness and lack of clutter counts. Start with the outside and ensure that the lawn is mowed and the front and rear of the home is free from major obstructions. We had a tenant tell a potential buyer that they were afraid to mow the backyard because a previous owner had buried their cats in the back yard and they were afraid. This was totally false but turned off quite a few buyers. Another tenant left an abandoned rusted 1985 Cadillac in the front driveway which was quite an eyesore. The interior should be neat nothing turns people off like dishes piled high in the sink and a dirty litter pan in the kitchen.
4. Sometimes, providing your tenants with a lease can aggravate the situation when the time comes that you want them to move out. A seller’s interests are not always protected. Whether your tenants have a lease or not, engage an attorney specializing in tenant/landlord disputes. In many states such as New York you will find this discipline is separate from attorneys handling real estate closings. Before you put your home on the market you will fully understand the laws governing tenant rights and have a game plan to follow. In NYC evictions and getting on the court calendar may take 60 days or more so early planning is important.
5. In general, a vacant home will sell more quickly than a tenant occupied property. If you can afford the loss of income it is better to have the tenants vacate your property before it goes on the market.
6. If the tenants will remain during the sale period it is important to lay down a set of ground rules to follow. Introduce them to your Realtor and have them exchange numbers. If a sign is going on the property explain that they are to defer all questions to your Realtor.
7. You will probably have to negotiate days/evenings when clients can be brought over. Usually you’ll need an open window on a weekend day and two evenings during the week. Expect resistance and complaining from your tenants. Explain to them that the decision to sell is final and you require their cooperation. Make it clear that they should be looking for alternate living arrangements now and not wait until the house in is contract.
8. Many listings for tenant occupied properties state that the home will be delivered vacant upon closing. Make sure you can meet this requirement or you run the risk of the deal being nullified.
9. It is common practice to offer to pay all or part of the tenant’s moving expenses and broker fees when they move if they cooperate fully. It is strongly recommended that you consult with your tenant/landlord attorney before you offer any compensation to the tenant to move out early etc. .
10. The last thing a seller wants is to receive a complaint from his tenant telling him valuables were stolen during a walkthrough. Inform your tenants to safeguard all valuables because buyers and their agents will be walking through the home. If necessary, offer to get a safety deposit box for their valuables. The small expense is well worth it and shows good faith on your part.
By planning in advance and following these guidelines, selling a tenant-owned property should go much more smoothly.
By the way, if you are a buyer seeking to purchase a multi-family property for the purpose of renting it out, these guidelines will prove very useful to you later on when you have tenants. Now you will have an idea of what to expect.
David Rogoff and Bonnie Chernin
Licensed Realtors
Fillmore Real Estate
2926 Avenue J
Brooklyn, NY 11210
917-593-4068 - Mobile
E-mail: david@BestHomesInBrooklyn.com
Web: http://www.BestHomesInBrooklyn.com
Silver Star Restaurant
6221 18th Avenue
Brooklyn, NY 11204
718-331-2799
I recently had the opportunity to go to Silver Star Restaurant when the president of our Scrabble Club invited club members to join him in celebration of his 65th birthday. He had dined there a week earlier and said the food was really good, and so we all met there on Tuesday evening for dinner.
David and I were quite impressed with the food. The menu features Chinese and Asian cuisine, with many specialties to choose from and steamed healthy selections as well. The qua;ity is excellent and was quickly served, considering how many people were in our group. David and I ordered two standard combination dinners and split them. I got the Shrimp with Lobster Sauce and David ordered the Chicken Chow Mein and Spare Ribs, and we had egg rolls, fried rice and Wonton Soup. The Chow Mein was really delicious and had that classic nostalgic taste that you don't find these days. Ditto the ribs. The sauces and flavors of all the dishes took us back in time. Even the soup noodles were extra crispy with a taste long forgotten and worth recalling.
Even since Richard Yee's on Avenue U closed a few years back we've been searching for a similar place that serves authentic Chinese fare - you know, like the kind we had when we were kids growing up in Brooklyn . It looks like we found it at Silver Star. It's no surprise, considering that Silver Star has been in business with the original family owners since 1944. Adding to the pleasurable dining experience is the warm 1960's style decor right down to the booths and the prices, which are very reasonable. The restaurant is centrally located in Bensonhurst, and easily accessible by car or public transportation via the 18th Avenue N Train station.
We intend to go back again and recommend Silver Star highly. They are open every day until 11pm. Try it and enjoy.
The Purim Carnival at the Kings Bay YM-YWHA in the Sheepshead Bay area promises to be sure-fire fun for the whole family. The website indicates there will be rides for kids, arts and crafts, games, costume contest, clowns, holiday performances, music, and food and fun for the whole family! Raffles and discounts! Free hamentashen cookies and presents! And best of all - FREE ADMISSION! Let's pray for good weather with NO SNOW and hope to see you there!
Date: Sunday, February 28, 2010
Time: 11:00 am - 2:00 pm
Location: Kings Bay YM-YWHA at 3495 Nostrand Avenue, Brooklyn NY 11229.
For more information visit about this event and other upcoming events at the Kings Bay YM-YWHA, visit their website at http://www.kingsbayy.org
By Bonnie Chernin and David Rogoff
July 21, 2009
They may not live here anymore, but when filmmakers Michael Morrissey and John Scaccia needed a location for their new thriller they proved their hearts remain in the Borough of Brooklyn. The film, entitled “Boy Wonder,” was shot in part last weekend in the quiet, residential neighborhood of Marine Park. We were there to see the action.
As Realtors servicing Brooklyn, David and I always keep an eye on neighborhood events. When we noticed the film trucks parked along Fillmore Avenue and got a glimpse of the crew, we approached producer John Scaccia to find out details about the project. Explaining our roles as active Realtors and writers representing the local area we asked why our quiet community was chosen as the venue for this film, a gripping and suspenseful crime drama. Mr. Scaccia explained that Michael Morrissey, who wrote and directed “Boy Wonder,” was born and raised in Marine Park and fondly recalled the neighborhood, believing it would be a perfect setting for his film. He retraced his roots to shoot this neat crime story in the neighborhood he knows and remembers.
The film’s plot centers around a teenager who seeks to avenge his mother’s murder, which he witnessed as a child. Here is a brief synopsis of the film, written by Mr. Morrissey:
“Boy Wonder is the story of Sean Donovan, a young boy whose life is dramatically altered when he witnesses his mother's death in a brutal car jacking. Sean grows up into a strong young man, and at age 17 continues to search for his mother's killer. The boundaries between justice and revenge begin to blur, and Sean finds himself drawn into an underworld. While investigating a series of vigilante murders, new homicide detective, Teresa Ames, takes interest in Sean and his case. Yet the closer Teresa gets to Sean, the more her suspicions start to rise. Teresa and Sean engage in a twisting game of cat and mouse, allies by day enemies at night.”
This is one picture we want to see. The story is set in Brooklyn and the main character, Sean Donovan, attends private high school in our borough. Based on the description, “Boy Wonder” has an edgy and gritty plot that should appeal to film aficionados seeking a tense movie-going experience sure to leave a lasting impression. It should be a winner and we look forward to its release.
As it turns out, the filming took place at night in a small realty home. These starter homes have become popular with first-time homebuyers looking to move to Marine Park while seeking an affordable yet attractive alternative to renting. Mr. Scaccia told us that as writer and former local resident, Mr. Morrissey wanted the film to be authentic. This style of home represented the typical Marine Park house of his youth, adding a sense of realism to the story. As residents of Marine Park for nearly 18 years, we have seen neighborhoods evolve but there are always things that stay the same, adding history, charm and a sense of nostalgia and belonging. It inspires creative folks like Michael Morrissey and John Scaccia to come back for awhile. That’s a good thing for art and for Brooklyn.
“Boy Wonder is John Scaccia’s eighth production. In 2007 he co-produced the film “Descent.” His other production credits include “Kiss Me Again” (2006), “2BPerfectlyHonest” (2004), “Sucker Punch” (2003) and the TV series “Straight Up” in 2002. Boy Wonder is writer/director Michael Morrissey’s first film. We wish them both great success with this project.
For more information about “Boy Wonder” and producer John Scaccia’s background, as well as a list of the cast and crew, visit the following links:
http://www.imdb.com/title/tt1456060/
http://www.imdb.com/name/nm0768661/
It was with a great deal of satisfaction that I approached the Empire State Building for the closing of a two bedroom co-op we had sold for an associate broker in our office.
Our buyers had missed our Sunday afternoon open house but had noticed one of our flyers on a light pole in Coney Island on Sunday evening. They called and arranged a private showing the following weekend. They were happy with the 2 bedroom co-op and made a fair offer which the out of town seller immediately accepted. Within a week on so contracts were signed (August 2008). Little did we realize the odyssey that would follow.
Next steps was to fill out a pre-application form which is basically stating your income, expected downpayment, savings declaration and employment history. This single page document is completed and forwarded to the Board president without any documentation to support the financials etc. If acceptable, the management company would forward the full buyers package that requires supporting documentation plus references. My buyers were foreign born so I needed to complete the pre-application for them. This took 2 weekends but we finally got it in. It took 10 weeks to get an approval from the Board president, so in effect now they needed to obtain the actual documentation (pay stubs, tax returns, references, bank statements etc.) In the interim, they obtained a mortgage commitment so we needed to let the appraisers in to take photos etc and wait to get an appointment before the board. It was now November 2008 with no closing date in sight.
My clients got notified in December that their application was approved and were to meet before the board of directors. The first board meeting was cancelled without notifying them so that further delayed the process. They were immediately approved by the board in early January. Unfortunately their mortgage commitment had expired and we were at square one again. So now another round of documentation, phone calls to loan officers and underwriters and a new appraisal. It wasn't until May 2009 that all the underwriting documents were obtained except one. The closing was set for June 2 but the co-ops insurance policy expired on June 1 so without proof of renewal no final bank ok. Fortunately our broker made some calls to the insurance company and banks and he got things straightened out.
Kudos to our broker for saving the day and credit to the listing agent for keeping the seller in the loop.
Funny facts to consider:
We have a co-worker who also sold a co-op apartment in the same development and he is in month 13 without a closing date in sight!!!
None of the people intimately involved on the buyer side used English as their primary language. It took some extra time to communicate with the lawyers, paralegals, loan officer and buyers but my experience working in Asia in the past certainly helped a lot.
Keeping you posted...
David and Bonnie
Hi all,
For those of us who've lived in Brooklyn all our lives and know Sheepshead Bay, Glick Bros. Kosher Meat Market was a familiar store and a staple on Nostrand Avenue for the past 30 years.
Last Thursday, April 30, Glick's closed their doors for good. There was an article in Sheepshead Bay Bites announcing the sudden closing, which allegedly is due to a series of Board of Health violations. According to posters who responded in the piece, vermin droppings and rodent hair were prevalent throughout the store. In addition, the posters indicate the meat being sold was non-kosher packaged as kosher. Finally, some of the posters stated that dog food was mixed with the chopped meat, and people were getting sick.
None of this is verified by the article itself, which just announces that the store is closed. We had buying food from Glicks for many years, including many of their prepared dinners. Not long ago, we purchased packaged neck and skirt chopped meat and noticed a foul taste immediately, and had to throw it away. We never got chopped meat after that but did continue to purchase chicken and frozen goods.
Needless to say, we are very dismayed to hear about health violations, and we await the report from the inspectors. I hope the people who responded to the piece are wrong. I certainly don't want to find out that I've been eating dog food without knowing it. EWWW!
To make matters worse, we had purchased a beef brisket during the Passover holiday and quite frankly, it tasted fine. That certainly doesn't make us feel better now. We still have a veal brisket in our freezer and we're stymied and don't know if we should eat it. Do we have any takers? Should I have it tested for Alpo?
I knew the owner very well for many years so this whole story comes as quite a shock. Supposedly, he took off for Florida.
Here is the article link, for those interested:
http://www.sheepsheadbites.com/blog1.php/businesses/glick-kosher-closes-after-30-years
Have a dog day afternoon, folks!
Keeping you posted...
Bonnie & David
The weather is supposed to be sunny and very mild in New York City this entire weekend, so it’s a great day to come to Marine Park’s Salt Marsh Nature Center and check out the Earth Day celebration. The event is on Sunday, April 26 starts at 10 am and runs through the afternoon. Folks so inclined can participate in community service, park clean-up, nature crafts and an ecology hike. The Brooklyn Dance Center Ensemble will also be there at 3 pm, and the afternoon will be filled with entertainment, dancing and singing. So if you’re here, come enjoy the Salt Marsh. It’ s located at Avenue U and East 33 Street. Take the B3 bus to get here. There’s nothing like it, which I guess is why we live in Marine Park and love this neighborhood.
Another idea for a lovely spring day is to check out the Brooklyn Botanic Gardens Hanami, which is the annual Cherry Blossom Viewing Season at the gardens. The Botanic Gardens are beautiful any time of year, but the Cherry Blossoms make a visit here extra special. The viewing map which tracks the blossoms was updated on April 24 and shows the progress of blooming. Along the lake, many of the trees are in peak bloom but along the Cherry Walk the weeping Cherry trees are not even in bloom yet. So don’t miss out. The Hanami Viewing Season runs until Sunday May 10. Definitely worth a trip, and one of the many events we enjoy each year in Brooklyn. The BBG is at 900 Washington Avenue, and is easily accessible by the #2, 3, B, Q, #4 and Franklin Avenue Shuttle. The link to the website is: www.bbb.org
Keeping you posted....
Bonnie & David
There is a new radio show that began today and will be broadcast every Saturday, 10 am - 12 noon EST. It is called, "Eye on Real Estate," on WOR 710 am. The show is terrific, and covers everything from foreclosures to mortgages, credit issues and financing options, staging, and the market in general. The show is hosted by three powerhouse name in the Real Estate Industry - Dottie Herman, CEO of Prudential Douglas Elliman, Jeff Appel, Senior V.P. of Preferred Empire Mortgage Company, and Jonathan Miller, co-founder of a residential and commercial real estate firm and one of the top appraisers in New York. This show is a welcome tribute to talk radio, since there has not been any show dedicated to our industry and this important topic.
The first hour was spent taking calls from listeners, and topics ranged from the foreclosure market, mortgage rates, what makes a buyer's market vs. a seller's market, and whether now is the time to buy, sell or hold real estate. The second hour centered on two interviews: the first with a professor of finance who discussed issues in the economy and Cathy Hobbs, an expert home stager.
The link to the WOR show is: http://www.wor710.com/pages/4206905.php
There is a podcast of the show on WOR's website.
David and I found this show to be very informative and the hosts are superb. Since the convergence of unsteady economic indicators with a soft real estate market has caused much concern amongst buyers and sellers alike, this is a don't-miss show, and a great way to enjoy your Saturday morning coffee, with news and updates in real estate from top experts in the tri-state area.
Enjoy!
Keeping you posted... Bonnie & David
Our listing at 1221 Avenue P in the Midwood section of Brooklyn has been reduced. The asking price is now $759,018. This is a gorgeous home, fully renovated with lots of luxury upgrades and 2,600 sq. ft. Any interested buyers or agents with clients please contact either Bonnie or David at 917-593-4068.
For more information and photos, please visit the following link:
http://www.1221AvenueP.com
Keeping you posted...
Bonnie and David
We just had a price reduction on our co-op at 1075 Sheepshead Bay Road, Unit 7-T. The price is now $209,000. We just sold a similar unit at $215,000. Our unit currently for sale is larger than the unit we sold at $215,000.
Unit 7-T is the largest one BR co-op in the building. It is on the top floor with a sunny exposure and lots of closet space. The dining area can easily be converted to a Jr.-4. The location is excellent, near all transporation and maintenance includes free access to the Russian Bathhouse. All interested buyers, or agents with possible customers can call us at 917-593-4068 to set up an appointment. The apartment is vacant.
For more information and a photo tour, visit the Single Property Site: http://www.1075sheepsheadbayroadunit7t.com
Keeping you posted...
Bonnie & David
Hi all....!
We recently listed another co-op in the Sheepshead Bay area. This is a very nice corner unit with 3 nice sized Bedrooms, lots of closet space and is close to all shopping and transportation. Newly painted, and maintenance includes all (G/E) plus nightime on-site security. 4 new window a/c units are included. The listing price is $289,000.
If you are a buyer looking for a 3 BR co-op in Sheepshead Bay, or an agent with a buyer that may be interested, please give us a call and we'd be happy to arrange for a showing. For a complete description and photos, go to the following Single Property Site:
http://www.2461East29thStreet.com
Keepig you posted....
Bonnie & David
Hi all,,,,
We've been pretty busy over here, and are happy to report that our co-op unit at 1075 Sheepshead Bay Road, Apt. 7A closed last week at a price of $215,000.
This was one of the highest prices obtained for a one BR co-op in Sheepshead Bay. Especially considering the maintenance on this unit was $697 per month, the final sales price is quite good. We marketed the unit heavily on the web, and did several twilight open houses. Because the unit was absoutely gorgeous and showed so beautifully, we think the transaction went well all the way around and left everybody happy. It was a pleasure to market this apartment.
Keeping you posted...
Bonnie and David
Big changes are in store for those involved in real estate transactions. These changes will make it easier for both sellers and buyers to know in advance the true costs involved in closing.
Effective January 1, 2010 a new Good Faith Estimate (GFE) and HUD-1 closing statement form will be required at every closing. The following changes have been made:
1. Lenders must calculate yield-spread premiums as part of their origination fee. This is the spread or as others have called the “vig” that compensated mortgage brokers. This was the difference between the interest rate the borrower actually qualified for and what they were locked into by the broker. Borrowers will now be able to see the spread allowing for more transparency. Not surprisingly, the National Association of Mortgage Brokers is challenging the new rules citing that smaller mortgage brokers will be hurt by the new regulations.
2. Lenders can no longer change origination fees and transfer taxes that are stated on the GFE.
3. Other third-party costs can only be changed a maximum of 10%. These include title searches and inspections. Each party has 30 days to reconcile the discrepancies (variances over 10% between estimated and actual costs).
It should be noted that lenders can start applying the new rules earlier than January 1,2010. If implemented, lenders are required to comply with the new cost discrepancies and yield-spread premium rules immediately.
Everyone involved in real estate transactions prior to January 1,2010 should be aware of these new rules and ask their lenders and attorneys if the new or old rules are applicable. To better prepare for the changes that are mandated as of January 1,2010 go to:
http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm
Keeping you posted…..
Bonnie and David
Source: RESPA Reform Lite by Robert Freeman REALTOR MAGAZINE February 2009.
A recent issue ofRealtor Magazine offered the first of a series of articles that will help realtors learn about the latest news in home construction using renewable resources that will help sustain our environment and methods for updating older homes in an ecologically-responsible way.
In his article, "A Realtor's Quick Guide to Green Trends," Texas realtor and certified Eco-Broker Erik Fowler wrote that "according to several studies including the U.S. Department of Energy, homes and buildings account for 40 - 50 percent of total U.S. energy consumption and at least 20 - 40 percent of greenhouse gas emissions and pollution."
We were intrigued by this piece, because any energy savings we can pass on to our clients is good news! There are details realtors can explore about the ways in which remodeling an older home or constructing a new one can have a positive and lasting impact on the environment, and on overall community health and lifestyle. There is also a new NAR GREEN designation which we are considering. For interested realtors the link is:
www.greenresourcecouncil.org
The U.S.Department of Energy publishes A Consumer's Guide to Energy Efficiency and Renewable Energy.
The link is:
http://apps1.eere.energy.gov/consumer/your_home/
If you are a homeowner, there are numerous links offering ways to lower your energy costs, including reducing the energy costs of appliances and electronics, proper insulation and air sealing, landscaping, lighting, heating and cooling systems and energy-efficient windows, doors and skylights.
When undergoing any remodeling project, by investing in energy-efficient materials you not only save money, but at a future time if you decide to sell your home it certainly is a good selling point with buyers. Given the choice, a buyer would rather choose a home that costs less to heat, cool and maintain than one which needs updating. This is especially true with older homes.
Keeping you posted....
Bonnie & David
Always confirm with the management company the specific form they require for the documentation to be in. Do not assume that faxed documents,,copies or form letters are acceptable.
We have a situation where the buyer's professional and personal recommendations were being rejected by the management company because similar wording was used on both. Also the letters were typed and not handwritten. This was done because the buyers are not fluent in English and had their daughter type out the recommendations for their work supervisors and personal friends to sign. Each recommendation had the person's full name address work title and telephone number on it so it would have been easy just to call them and confirm the authenicity of the recommendation letters.
Unfortunately we were delayed almost 2 weeks until handwritten recommendation letters were obtained again and forwarded to the management company. We are hoping there are no more surprises as we move onto month FIVE since contract signing.
Wishing our friends and neighbors all the best....
Bonnie and David