Why you should review your home on GoHomeNY – Homeowners Edition

Although over 60% of NYC residents are renters, we originally started GoHomeNY for home buyers and sellers in NYC. We bought and sold three condos in NYC and had remarkably different experiences each time, with the second go around ending in such (dis)stress that we decided to start a website to help other owners in the city. Almost every buyer uses a lawyer and a broker, but beyond reading the minutes and speaking with the management company, there is little due diligence a buyer can do before making the big decision.

Our first building was fantastic. A 55 unit condo, SkyHouse (11 E 29th Street) was built by a solid developer and managed by a professional management company, so all the maintenance and building issues were often quickly resolved. The building had solid finances and was well maintained. Our second building was a dream turned nightmare. 109 Norfolk Street was a boutique building in with floor through units and wonderful living spaces, but the building had a dysfunctional board, had deferred years of maintenance spend, and was at the mercy of the developer and managing agent, who were colluding and stealing building funds. After we moved out of second home, we decided starting GoHomeNY would be the way to help other buyers and investors learn more about a building before making signing a contract.

We think other buyers and prospective buyers in NYC will face the same highs and lows that we did, and the purpose of this website is to give them a venue to highlight the positives and negatives of a building. Beyond this basic proposition, we hope the site eventually captures enough of NYC’s housing market that developers, property management companies, and brokers start paying attention to the reviews, helping raise the overall quality of the NYC buying and living experience.

There are so many factors and considerations to make before buying a home in NYC. Below is a due diligence and question list that you should consider as you embark on this exciting but exhausting experience. And don’t forget to review your new or old home in NYC on GoHomeNY!

Before you buy and the major cost items

• Condo or Co-op: enough has been written about this topic already, and we think most buyers already have an idea of which they prefer. Key difference is condos don’t require board approval and are often more expensive on a per sq. foot basis than co-ops. Most of the newer inventory in NYC is condo
• Carrying costs: often overlooked but often carrying costs (common charges + taxes) can be as much as or even more than the mortgage payments on a NYC condo. Be sure to factor in the carrying costs in your affordability calculations. Also always check if common charges have been increasing or decreasing, or if the building has any assessments
• Real estate taxes: there are still many buildings in NYC that feature tax abatements, which gives owners a discounted tax payment for a number of years. These are great for any type of buyer, but make sure you get the schedule for expected tax increases every year so you are not surprised
• Closing costs: most brokerages provide detailed breakdowns of closing costs so we will not reprint these. The broker fee is often the biggest, followed by transfer tax, mortgate tax, and mansion tax. Remember if you are looking at a new development some developers prefer negotiating on closing costs or other rebates so that they can print a higher $ / sq foot contract price (which benefits the buyer too). If you are getting a mortgage often you can negotiate closing fees with your bank too

Due diligence process

• Get a good lawyer. We have who is so tough she broker a few deals for us, but that is why we love her. Reach out to us at home@gohomeny.com if you want her contacts
• Get a good broker. A good broker knows the ins and outs of buildings, and can often steer you away from problematic buildings (bad developer, financial problems, neighborhood issues, something new is being built in front of your window and you will lose the view, etc). We have used the same broker, Robert Varvara, from Corcoran group, for six different transactions now and he is best of the best
• See the unit 2-3 times, once with a home inspector / engineer if you can. Go in the morning, afternoon, and at night. Talk to the doorman or super. If you can see the roof and basement, make sure you check them out. The most costly work in NYC is often roof repairs or basement / structural repairs
• Read the board minutes and last 2-3 years of financials. In fact, read the board minutes twice. These are the most critical, and often only, records of any major issues a building has had: major repairs, flooding, roofwork, crime, assessments, lawsuits / litigation. If a building does not have recent minutes, ask the management company / managing agent why. If the building does not have a management company ask the board directly. And whatever is not recorded in the minutes will show up in the financials, so look out for any large one time expenses or assessments
• Talk to the management company / managing agent. The larger agencies can make it hard for you to get access, but your lawyer can design a questionnaire to get answers to any key questions
• Read the offering plan, condo declaration, and bylaws. You wont be able to change them unless you get on the board and make changes, but you will find out how the building is run, any strange rules, the relationship with the developer, and what legal rights the owners have for major decisions or repairs. You will also find out a lot about the unit you are buying and its original features (if the flooring is different from described, ask why)
• Go see the building in the morning, afternoon, and night. Check out the neighborhood. Walk by the subway station or nearby transport. Check GoHomeNY and just search for the building online to see if there are any issues
• Before you close, check everything: appliances, doors, locks, sockets, switches, bulbs, cooling, heating, gas, windows, faucets and sinks, leaks on the ceiling or under the sinks, noise and temperature insulation, and look at the flooring for any warping / water damage / sloping

Common questions / things to think about

• Do you like the neighborhood
• What are the transport options
• Where is the closest grocery / pharmacy / bodega / laundromat / other basic necessity
• What are the food options
• What is the noise level
• How clean or dirty is the neighborhood. Remember a nice restaurant downstairs is convenient but probably means rats
• Which exposures (West is nice, but hot in the afternoon)
• Efficiency / use of space
• Building amenities
• Number of units
• Number of elevators
• How many building staff (see our article about tipping during the holidays)

Buying in NYC is exhilarating, but can be daunting and stressful. Hopefully the bullets above our helpful. Good luck and leave a review after you find your next home!