FAQ
Q: The offer has been accepted and the contract has been signed, next step: The Board Interview. How do I prepare?
1. Being invited to the interview is a good sign. The interview is the board’s opportunity to meet you and ask specific questions about your application. The style of the interview can range from an informal gathering of board members in an apartment to a formal interview with board members lined up at a table with you in the hot seat.
2. Dress-up and be prompt. In terms of dress and promptness only a board interview should be treated no differently than a professional job interview.
3. Prepare for a lack of privacy. The board has great latitude in the kinds of questions it can ask, be prepared for this and do not avoid answers to personal questions, or be angered by this intrusion.
4. Know your application. You should be able to quickly, and concisely answer any questions asked regarding your application, preferably without having to look at your application. However, if necessary, bring a copy along.
5. Unlike a job interview, do not try to sell yourself. Only answer questions asked and let the board run the show. Boards rarely turn down applications for being too boring.
6. Never volunteer information or engage in unsolicited conversations except for the basic cordial remarks and greetings.
7. Do not ask questions. Questions can often unintentionally convey negative information to the board. For example: “Do you have any plans to renovate the lobby?”, is the kind of seemingly innocent question likely to offend the board member who was in charge of the last lobby renovation. If you have additional questions you can direct them to me.
8. A short interview is better than a long one. While there are no hard and fast rules, a short cordial interview with a few board questions and remarks is often the best co-op board interview.
9. Couples should decide in advance who will answer what types of questions. For example, you may agree to answer all financial questions and your spouse will answer all other questions. Avoid discussing answers to questions with your spouse in front of the board.
10. Do not expect an answer at the end of the meeting. Most boards do not give their decision until a day or two after the meeting. I will take the necessary steps to determine if you have been approved.
Q: What do the various buzz words I read in Real Estate ads mean?
A: Good question. New York "isms" can be very confusing. Here are some definitions.
Alcove Studio Apartments are one- or two-room apartments with an “L” shaped alcove, which is usually used as a sleeping area. These apartments may be more expensive than a straight studio.
Balcony is a small outdoor space generally located off of a living room.
Brownstones or Townhouses are often four to six floors and may be single-family homes or multiple-family dwellings. Most were built in the early part of the 20th century and are known for their charm, wood moldings and lovely outdoor space.
Junior Apartments are similar to "convertible" apartments in that they are typically apartments with an alcove adjacent to the living room that can be walled off to create an additional space.
Loft Apartments are usually large open spaces with high ceilings and large windows. Many have been converted from commercial properties and seldom have doormen or attended lobbies.
Maintenance is a monthly fee that is paid by every shareholder in a Co-op. The money is used to pay the expenses to operate the building, including heating oil, insurance on the building, staff salaries, water and real estate taxes.
Post-War Buildings were built from 1950s forward. Most have doormen, elevators and more modern architecture.
Pre-War Buildings were built before World War II and generally have large rooms and windows, high ceilings and hardwood floors. These can be doorman or non-doorman buildings.
Studio Apartments are one or two rooms that combine the sleeping and living areas.
Terrace is a much larger outdoor space than a balcony and is usually found in penthouse apartments or apartments that are set back. Terraces add a significant amount to the purchase price.
Walk-Up Buildings are no more than five stories high and do not have elevators or doormen.
Q: What is a FSBO?
A: Literally, it means: For Sale By Owner.
To those of us new to the industry, it is a prime prospect to pitch our firm’s services to property owners who are attempting to market and sell their own property and skip the commission. These owners, who would never consider polishing their own nails or cutting their own hair, think that selling property is easy. Trust me, as with everything else in New York, it is complicated. Attorneys, doctors, investment bankers, teachers and entrepreneurs are all following the “do it yourself” route. The downturn in the market over the past two years has left many sellers feeling that they cannot “afford” the commission that accompanies a professional listing. The Internet is partly to blame with easy Business to Consumer, or in this case Owner to Buyer, access through Craigslist, The New York Times and StreetEasy. But it is a BIG MISTAKE. Buyers know that the FSBO is trying to avoid the commission and will take advantage by low-balling their offer. Every week I go to open houses of these eager sellers to find that critical information is missing from their “show sheets” and that they do not know how to qualify a buyer. They are wasting time and losing money by not taking advantage of professional assistance. Many claim to be “broker friendly” meaning that they will pay the typical 3% fee to a real estate professional who brings the buyer whose offer is accepted. For another 3% they could turn the whole thing over to a professional who would manage and market the listing and bring more qualified buyers.
Here is my top ten list of mistakes made by FSBOs:
#10: The apartment # is left off of the ad and potential buyers cannot find the open house. (This happened to me the first week in the business. I was fortunate to have the seller’s phone number and called to be let in. He did not understand why no one had shown up for his open house.)
#9. Not having a show sheet and information on getting into the building on the front of non-doorman buildings.
#8. Not listing the required % financing allowed by the coop in the ad or on the show sheet. (The difference between 20% down and 25% down, can be a deal killer.)
#7. Misstating the “pets allowed” policy. (Pet friendly buildings may be thinking pussy cat not your Great Dane.)
#6. Pricing too high. (I know you love it, but if you over paid at the top of the market, you have to face reality, the market price is what someone is willing to pay and they do check other listings in the building and neighborhood. Even if you find someone who does not check around, the chances are the apartment will not appraise for the amount asked and the mortgage will be denied and time will be wasted on an unqualified buyer.)
#5. Pricing too low. (Don’t start with your back up position. You may think you are pricing for a quick sale but the buyer may think there is something wrong with the apartment.)
#4. Not making sure that the apartment is completely clean. (An owner showed me a “custom” built in bar and every bottle was layered in dust.)
#3. Accepting offers from buyers who are not qualified to meet the coop board’s financial standards. (Typical question and answer: ME: Have you had any offers? FSBO: Yes, we have had a lot of interest and had two offers. ME: What happened? FSBO: They couldn’t qualify for the financing.”)
#2. Not keeping a sign in sheet and following up with potential buyers (this really happens), and
#1. Failing to list your property through Susan Bari, Licensed Salesperson, Prudential Douglas Elliman.
Call me, I am a business person who can help you to market and sell your home.