Mirador Real Estate broker Eydie Saleh said concessions and financial sweeteners that landlords will likely start throwing in may not be reflected in bottom-line rental prices. But she said renters should expect to be relieved from the money they burn on agents’ fees.“There will be an increase of landlords paying my fee,” Saleh said.
The issue is now available on newsstands, but you can read the Residential Scorecard online here.
The Real Deal reports that the mid- and high-level Manhattan real estate markets – those units priced $5 million and above – are becoming increasingly favorable to buyers. The price-per-foot has actually lowered for properties $10 million and up, and there are signs the decreasing prices will reach the mid-level market. On the other hand, prices for entry level units – those $2 million or less – remain high, with buyers still likely to pay more than the asking price.
To discover the reasons for these opposite trends, The Real Deal spoke with Mirador Real Estate’s managing director, Karla Saladino:
Overall, the median sale price in Manhattan was $1.1 million during the second quarter, up about 13 percent year-over-year from $980,000, according to real estate appraisal firm Miller Samuel.
Karla Saladino, managing partner of Mirador Real Estate, said that jump was a byproduct of an oversupply of new development units across most price points — with the exception of the entry level.
“You can’t dump thousands of units onto a marketplace in a three-year period and not expect the market to correct or flatten out because of it,” she said.
Saladino also noted that some buyers who can afford apartments in the $5- to $10-million range simply don’t want to be saddled with such a large asset. As a result, they trade a tax deduction for flexibility and rent an apartment for $10,000 to $15,000 a month instead. “Young entrepreneurs value freedom of everything. So purchasing a home and leveraging yourself doesn’t appeal to them,” she said.
In real estate, a contingent offer (also known as a contingency) is a purchase offer in which certain conditions must be met for the deal to go through. For example, if a buyer wants to purchase a house but has to sell her own apartment first, she can make a contingent offer to the seller, asking the seller to take the house off the market until she raises the necessary funds. If she doesn’t meet a given deadline, the deal can be canceled, and she may even face agreed upon penalties.
One solution? A reasonable monetary compensation, say a promise to cover what’s called the carrying costs of a property—maintenance and utilities, for instance—for each month the seller has to wait for the buyer to make good on the sale. (The agreed-upon compensation doesn’t have to be tied to carrying costs, of course, but it’s a good place to start.)
“If the buyer is strong, and their contingency is specific to an appraisal or an amount, then the seller’s risk can be mitigated and they can probably move forward (obviously after agreeing on all the other basic terms),” says Chad Thomas of Mirador Real Estate.
From the buyers’ perspective, Thomas suggests those who are risk-averse and want mortgage consistencies to offer to forfeit a portion of the contract deposit—as opposed to the entire amount—”if it’s a highly desirable property or a competitive buying environment.” This way, there’s some skin in the game, so to speak. “It’s a way of showing the seller that they’re willing to do everything possible to close,” explains Thomas.
Improve Your Mood by Improving Your Living Space
BY ISABEL NAVARRETE
Brick Underground recently interviewed Dr. Lynn Saladino, Mirador Real Estate’s own Health and Wellness Consultant, about how our living space can affect our emotions. In the article, Dr. Saladino explains how a cluttered or noisy apartment can increase stress, and provides seven tips to alleviate that stress and improve your overall mood, such as by increasing the amount of light or using softer colors when painting. Read all of her tips here.
One of the tools we are proud to use is Nestio, a cloud-based software platform that helps us manage our listings so we can connect renters with open apartments more quickly and efficiently. Mirador Real Estate was one of the first clients of Nestio, adopting it in its earliest stages and providing feedback to the developers as they continued to refine it. Nestio founder Caren Maio describes this development process in an article about empathy and its importance to building and growing any business. Empathy is a cornerstone of our own organization, and we couldn’t agree with her more.
Caren Maio: “It’s all well and good to solve people’s problems. But businesses also exist to make money. What I’ve found most eye-opening of all, however, is how often these two things go hand-in-hand. Care for customers, first and foremost, and growth and profit follow. Partly this is human nature. When you’re constantly talking with your customers and gathering feedback, you’re also cultivating rapport and confidence. This builds the kind of deep relationships that endure even when things don’t go exactly as planned. At the highest level, empathy actually reciprocates empathy. Your customers become your champions: rooting for you as your product evolves and improves.
An example: One of my earliest customers was Mirador Real Estate, a prominent residential brokerage in New York. Their managing partner, Karla Saladino, offered some of the most incisive and honest feedback about our initial iterations. Today, she’s a good friend and also one of our fiercest advocates. I’ve seen this sense of ownership from customers time and time again. They happily refer us to other clients, help us with promo videos and even do reference calls. Without empathy, it’s hard to imagine this kind of dynamic.”
Read the rest of the article here.