In the business of pairing the buyers and sellers of real estate, three qualities are paramount: Intelligence, Efficiency, and Integrity.

Stribling is large enough to know the entire New York marketplace in infinite detail. Stribling is small enough to move quickly, to seize opportunities and to keep confidences. We take the time to know the mind of every client, so that they may save time and proceed confidently and productively.

Every Stribling broker has an unusual depth of experience. Many have been with the firm for decades. Every day they are measured by their intelligence, efficiency, integrity and the perennial loyalty of their clientele.

It has been said that New York City is like no other city in the world. This is true. This city’s vibrancy, culture and history are unique. And, its residential real estate market is unique as well. This guide will help you understand the New York real estate market and make intelligent purchasing decisions.

The city of New York is divided into five boroughs: Manhattan, Brooklyn, Queens, the
Bronx and Staten Island. In this guide we will focus on Manhattan and Brooklyn, the most sought after residential boroughs in the city.

Manhattan has dozens of different neighborhoods, each with its own particular character and charm. Midtown East (the 40’s and 50’s east of Fifth Avenue including Sutton, Beekman and Turtle Bay) is the home of the United Nations and countless corporations. Many residents choose this area because of the convenience that lets them walk to work. To the south, Murray Hill is a neighborhood of vintage and modern buildings and is home to the Morgan Library. Across town, Midtown West is the center for the arts encompassing the Broadway theater area and Carnegie Hall. Today it is an increasingly popular residential neighborhood.

To the north, the Upper East Side (above 59th Street) is the traditional home of some of the city’s finest apartments and townhouses. The Upper West Side (west of Central Park) offers a plethora of excellent prewar buildings and townhouses. Both of these neighborhoods offer proximity to some of the city’s finest private and public schools.

The lower half of Manhattan has a rich variety of neighborhoods. In Chelsea, residents appreciate the vibrant and trendy neighborhood, including an abundance of art galleries and restaurants and the recreational facilities at Chelsea Piers. Greenwich Village has retained all of its bohemian charm with enclaves of townhouses and ambient light. It continues to be one of Manhattan’s most sought after residential areas. Gramercy Park is an historic neighborhood of 19th century dwellings surrounding a park quite reminiscent of London.

The Lower Manhattan loft neighborhood of Soho (south of Houston Street) is characterized by upscale international retail establishments. To the south, Tribeca (triangle below Canal Street) features spacious lofts, outstanding restaurants and excellent schools. Wall Street has recently evolved into a fashionable residential community in its own right, enjoying an unprecedented growth in popularity over the past two decades.

Brooklyn is known for its many brownstone neighborhoods, each possessing its own unique allure and characteristics. Brooklyn Heights, just one subway stop from Wall Street, boasts many of Brooklyn’s finest private schools, as well as the Promenade, a half mile long waterfront esplanade. Boerum Hill, Cobble Hill and Carroll Gardens
(BoCoCa to local residents) are known for both quiet tree lined streets and the vibrant restaurant and boutique filled Smith and Court Streets. Dumbo is Brooklyn’s answer to Tribeca, but with views of Manhattan from many of its old warehouse loft conversions. Fort Greene has as its centerpiece Fort Greene Park. One of Brooklyn’s highest points, it was designed by Olmstead and Vaux. The Brooklyn Academy of Music (BAM) is also located in Fort Greene. Park Slope residents appreciate their proximity to Prospect Park (New York City’s second largest park,) The Brooklyn Museum and the Brooklyn Botanic Gardens. Some of Brooklyn’s finest restaurants and boutiques can be found on 5th Avenue here.

Essentially, all Manhattan residences, except rentals, can be grouped into these classifications:

Co-operative apartments represent more than two thirds of all resident-owned real estate in Manhattan. Instead of purchasing the apartment outright, a co-operative buyer purchases shares in an apartment corporation. These shares entitle the buyer to a "proprietary lease" which affirms the buyer's right to occupy a specific apartment. The tenant/shareholders of a co-operative apartment pay a monthly maintenance based on the number of shares, which includes real estate taxes, mortgage interest on the building itself, employee salaries, building upkeep, etc.

Condominium apartments are an increasingly popular concept in New York City. Unlike co-operatives, condominium apartments are real property. Instead of shares in a corporation, a buyer receives a deed to the apartment itself. Each owner is responsible for his own real estate taxes and his own mortgage payments. Condominium buildings by law cannot have an underlying mortgage. The building's common charges, for maintenance and upkeep, are billed to the owner on a monthly basis. Most new construction falls in this category.

Townhouses or Brownstones represent a much smaller though highly coveted percentage of the Manhattan real estate market. The purchasing and upkeep requirements are similar to owning a house in any other American city. Small multifamily dwellings are included in this category and offer the opportunity to offset expenses with rental income.

• The co-operative's Board of Directors, typically elected by the tenant/shareholders, are able to accept or reject potential shareholders without having to provide a reason why. The qualifying standards may vary from building to building.
  
  
• Each co-operative has its own rules regarding how much financing a prospective tenant/shareholder may assume. Many buildings insist on a substantial down payment. Others require as little as 20 percent.
  
  
• Of the maintenance charges tenant/shareholders pay each month, a significant percentage is often tax deductible; specifically, that portion which is applied to real estate taxes and interest charges on the building's mortgage. These percentages may vary greatly. And, if the purchaser uses financing, naturally the interest on the loan, with certain limitations, may also be tax deductible.
  
  
• When a tenant/shareholder wishes to sublease, permission must be granted by the Board of Directors. Some buildings sharply limit subleases.
  
  
• Buyers are required to provide detailed personal financial data including one or two years' tax returns and personal and professional reference letters. They must also be personally interviewed by the building's Board.
  
  
• "Flip taxes" are a common feature in co-operatives.
  This tax, imposed by the co-op, is used to build up the capital reserve and/or pay for improvements to a building. Generally the tax is one to two percent of the purchase price (although other formulas exist) and is payable by the buyer or seller, depending upon the co-op's rules or market conditions.

Because both are real property, they share the following features:

• The purchaser receives a deed to the land which is recorded in the office of the county clerk.
  
  
• Owners are responsible for real estate taxes.
  
  
• Financing is readily available.
  
  
• Owners will need to maintain insurance coverage on the dwelling.
  
  
• Title may be held in the name of a corporation or trust.

In many cases, the application process is less formal than for co-operatives. An applicant is almost always accepted except for the rare occasion when the condominium exercises the option to buy the apartment itself.

Rules about leasing the condominium are becoming more complicated, yet the ejection of a renter is rare.

A buyer has every reason to demand and expect an efficient and seamless experience from the opening search to the final closing.

A smart broker listens carefully and produces viable options without squandering your time.

A smart broker knows the marketplace in great depth.

A smart broker knows the process—the mistakes to avoid.

A smart broker knows the cast of characters and the roles they play: the lawyers, the appraisers, the mortgage brokers, the engineers, the closing coordinators, the accountants.

Whether purchasing in a luxurious new high-rise with a long list of amenities or in a converted loft building, there are certain points to bear in mind about new developments:

• There will often be a wide choice of units and floorplans, and all finishes throughout will
  typically be new.
  
  
• A buyer must be prepared to use his or her imagination. Initially, a buyer may tour a model apartment or sales center that will often include a fully built-out kitchen and bathroom, along with sample materials and renderings of the building’s amenities. While a buyer will see floorplans of individual residences, he or she may not be able to view their actual unit or have specific dimensions or scale drawings released to them prior to purchase.
  
  
• Since most purchase agreements in new developments do not include a financing
  contingency, a buyer may wish to obtain pre-approval for financing from a mortgage
  broker or bank before signing.
  
  
• A buyer should retain an attorney who has experience reviewing offering plans for new
  developments, or–better still–find one who is already familiar with the offering plan for the development in question.
  
  
• When it comes to a closing date, a buyer’s expectations should remain flexible because of construction delays and other considerations. In both new construction and conversions, a buyer cannot close until the building receives a Temporary Certificate of Occupancy from the New York City Department of Buildings. This process often takes longer than anticipated.
  
  
• Buyers should realize that there are additional closing costs for new developments. Buyers are typically required to pay New York City and New York State transfer taxes and attorneys fees on behalf of the developer, and may be required to purchase a pro-rata share of the superintendent’s apartment as well.
  

1. The bid or offer to buy is made orally or in writing through your real estate agent. This process includes presenting the buyer's financial qualifications.
2. The seller may accept or they may counter the offer thus initiating a price negotiation. The conclusion of this process should result in an agreement upon price, terms and the closing date.
3. The buyer should engage a capable and experienced New York City-based real estate attorney who will begin by evaluating the financial condition of the building. Meanwhile, the seller's attorney begins to prepare a contract of sale.
4. The buyer's attorney must make three determinations: that the building's financial condition is satisfactory, that the building's by-laws are acceptable and that the contract of sale is in order.
5. With the buyer's attorney's approval and agreement, the contract of sale is signed and the buyer presents a deposit, typically 10 percent of the sale price. The contract and deposit are forwarded for the seller's signature. The buyer's deposit is usually held in the seller's attorney's escrow account until the closing date.
6. At this time the buyer should proceed with a loan application if financing is desired.
7. The real estate agent presents the buyer with the building's board requirements and application papers. A typical "package" may include: An application, a signed financial statement, tax returns, bank statements, brokerage statements, personal and financial letters of reference, professional reference letters, contract of sale and, if financing, approved bank financing documents.
8. The buyer's package must be completed in a timely manner as specified by the contract of sale. When it is fully completed, it is submitted to the seller's broker for review and then to the building's management agent. Once they have found it to be in order and credit checks acceptable, they forward it to the building's Board of Directors.
9. Co-operative buyers then wait to see if their application has received an initial approval from the Board. On occasion, additional information may be requested. Once conditionally approved, they will then be invited to be interviewed by the Board or a board-appointed committee. Condominium buyers are typically not interviewed.
10. With the Board's approval, the final step is the closing. The closing usually occurs in the
    office of the building’s managing agent. Because of the number of parties involved (you, the seller, the attorneys, the banks and the managing agent) the exact date has to be flexible to accommodate everyone’s schedule. For this reason, most attorneys will advise clients to expect a leeway period of up to 30 days from the closing date in the contract.

Buyer's Attorney (negotiated flat rate):  $2,500±

Bank Fees (if financing):  $2,200±
(application, credit, appraisal, bank attorney, etc.)

Mansion Tax: 1% of entire price when price exceeds $1,000,000

Lien Search:  $350

Managing Agent or Co-op attorney:  $750±

Maintenance Adjustment:  up to one month*

Short-Term Interest adjustment:  up to one month*

Move-In Deposit or Fee:  $1,000±

Flip Tax (if any):  generally around 2%**

* Prorated for month of closing
** Flip taxes vary in amount and by whom they are payable (buyer or seller).

These figures are presented as a general guideline only. Actual closing costs will vary for every transaction. Before signing any contract, buyers should have all closing costs explained to them by their attorney.

Buyer's Attorney (negotiated flat rate):  $2,500±

Bank Fees (if financing):  $2,200±
(application, credit, appraisal, bank attorney, etc.)

Recording Fees:  $200

Mortgage Tax: 1.8% of amount of mortgage on loans under $500,000 or 1.925% of entire amount of mortgage on loans over $500,000

Mortgage Title Insurance: Approx. $200 per $100,000 (if financing), however when combined with title insurance fee the rate is lower (consult mortgage broker)

Title Insurance Fee : Approx. $450 per $100,000

Mansion Tax:  1% of entire price when price exceeds $1,000,000

Misc. Title Charges: $500±

Managing Agent's Fee: $500±

Common charge adjustment: Up to one month*

Real Estate Tax adjustment: 1 to 6 months**

* Prorated for month of closing
** Expect to pay eight months' Real Estate Taxes – combined between Buyer and Seller as an adjustment and escrow established by lender.

Note: When purchasing a condominium unit from a Sponsor, the Purchaser will be required to pay New York City and New York State Transfer Taxes (1.825%) as well as the Sponsor's attorney's fee.

These figures are presented as a general guideline only. Actual closing costs will vary for every transaction. Before signing any contract, buyers should have all closing costs explained to them by their attorney.

The New York City real estate market has a language all its own. An understanding of the following building terms can be most helpful.

Loft apartments are typically found in former commercial buildings that have been converted. These often feature large open spaces, high ceilings and are mostly located in lower Manhattan. Today however, "loft-style" apartments are being developed all over the city.

Postwar Buildings (often referred to as "luxury doorman") are those built following WWII to the present. They are high-rise buildings, often with narrow rooms and alcoves. Most feature through-the-wall or central air conditioning and other technological amenities. Most have doormen.

Prewar Buildings are built before Word War II. Characteristically they have larger and wider rooms, fireplaces, hardwood floors and higher ceilings with moldings. Most, but not all, have doormen.

Townhouses or brownstones are single family houses that in many cases have been converted into multi-unit apartment buildings. Most of these were built in the late nineteenth and early twentieth centuries. Many offer gardens, fireplaces, and beautiful floors and ornamental interior details.

Walk-up Buildings are usually five story buildings without an elevator or doorman. They are among the most affordable housing in Manhattan.

The popular terminology for New York City apartments can be confusing and daunting. When counting rooms, for example, it is helpful to know that in Manhattan a room must be 65 square feet with a window, except for a kitchen. Baths are not counted as rooms. Therefore, a four room apartment would have a living room, kitchen and two bedrooms, or one bedroom and a dining room.

Classic Seven or Eight usually refers to a prewar apartment with a living room, dining room, kitchen, three bedrooms and one or two maid's rooms.

Classic Six is the same as above, with two bedrooms and one maid's room.

A Duplex is an apartment with two floors or levels, not two apartment units.

A 4 1/2 Room consists of a living room, 2 bedrooms, kitchen and dining alcove or foyer.

A Studio refers to one or two rooms with a combined living and sleeping area plus kitchen.

Loft Area refers to additional space created in apartments with very high ceilings. Usually it is accessed by stairs or a ladder.

An Alcove is a small, usually contiguous space leading off of the living room, customarily used as a dining or sleeping area. It is counted as a half room.

An Appraiser is an expert who renders an opinion of value. Generally, an appraisal is performed on behalf of a bank in the process of evaluating a property for a mortgage. The reason for an appraisal is to insure that the property, which is security for the loan, has adequate value to meet bank requirements.

Amortization is the payment of principal on a liability (including a mortgage), or the write-off of a non-depreciable asset over a scheduled term of years.

An Assessment is an extraordinary payment called for by the board of directors of a co-operative or condominium building for the purpose of making a capital improvement, or to provide some other essential service for which funds in the reserve account are inadequate.

A Balloon Mortgage is one which matures with a balance still owed at the end of the term.

Board Approval is a condition in the bylaws of a co-operative requiring that the seller obtain approval from the board of directors as a prerequisite to transferring the shares or, in the case of a condominium, obtaining a waiver of the right of first refusal.

Building Codes are regulations established by the state or city government stating fully the structural requirements for the building.

By-Laws are the rules by which the co-operative corporation and condominium association operates.

A Cancellation Clause is a provision in a lease or other contract which confers upon one or more of all the parties to the lease the right to terminate the party's or parties' obligations there under upon the occurrence of the condition or contingency set forth in the said clause.

A Capital Improvement is a permanent improvement to real estate, usually extending the useful life and value of a property.

A Certificate of Occupancy ("C of O") is a document issued by a governmental authority that a building is ready and fit for occupancy. (Likewise, “TCO” or Temporary
Certificate of Occupancy.)

Co-brokerage is an agreement between two brokerage firms to share listings and commissions. This is usually used when one of the brokers is the seller's exclusive listing agent and the other broker represents the buyer.

Collateral is the security put up in exchange for a loan. It can be taken by the bank if the loan goes unpaid.

A Commitment Letter is the letter issued by a lending bank which legally binds it to provide funds as specified subject to written terms and conditions.

A Condominium is an apartment building in which each apartment owner owns his or her own
apartment plus a percentage of the ownership of the common areas of the entire property. Each
owner receives a unit deed, proof of that ownership.

A Contract, also known as a Purchase or Sales Agreement, is a written agreement between seller and purchaser in which the purchaser agrees to buy certain real estate and the seller agrees to sell upon conditions and terms set forth therein.

Conversion is a change in ownership type or status. Example: A rental housing building may be converted to co-operative or condominium ownership. A commercial loft building may be converted into residential apartments.

A Co-operative is a corporation that owns a building. Purchasers receive shares of stock in
the corporation, and a Proprietary Lease for their apartment.

A Covenant is an agreement(s) written into deeds promising performance or nonperformance of certain acts or stipulating certain uses or non-uses of the property.

A Deed Restriction is an imposed restriction in a deed for the purpose of limiting the use of the land.

Default is the act performed by either the buyer or seller that breaches the contract of sale and permits a claim for damages.

An Easement is an interest in land/property
owned by another that entitles its holder to a
specific use or enjoyment.

Earnest Money, also known as a Deposit or Down Payment, is made by a purchaser of real estate as evidence of good faith.

Escrow is the means by which money (a deposit or down payment) is held by one person in trust for another, for the purpose of assuring performance under an agreement. Normally, in a residential real estate sale, the attorney for the seller is the "escrow agent" for the deposit money securing the deal until closing.

Exclusive Right to Sell Agreement is an agreement between a broker and a seller which designates the broker as the seller's sole representative. Under this agreement, a commission is due to the broker even if the apartment is sold directly by the owner.

A Financing Loan is secured by personal property. The stock and lease of a co-operative corporation constitute such personal property. Real estate brokers often refer to these financing loans as mortgages, though technically they are not.

Fixtures are personal property so attached to the land or improvements as to become part of the real property.

A Flip Tax is a levy issued on the transfer of ownership by a co-operative corporation or condominium association against either the buyer or seller.

The Grantee is the party to whom the title to real property is conveyed.

A Landmark is a designation given to a building which is under New York City protection for the purpose of preservation.

A Lien is a legal right or claim upon a specific property which attaches to the property until a debt is satisfied.

A Listing is the term used by brokers for an apartment for sale after it has been "listed" by the broker in its system.

A Listing Agent, also known as the Exclusive Broker, is the broker who represents the interests of the seller.

Maintenance is the monthly charge paid by co-operative tenant/shareholders to cover the building's operating costs, real estate taxes and debt service on the building's underlying mortgage.

The Market Value is the most probable price that a property should bring if exposed for sale in the open market for a reasonable period of time, with both the buyer and seller aware of current market conditions, neither being under duress.

A Mortgage Broker is the real estate professional who represents an array of banks seeking to issue mortgages. This person meets with a customer, assists with the mortgage application and effectuates the mortgage process on behalf of the borrower and the bank. Generally, the mortgage broker is paid a fee by the bank for this service.

Net Worth is one's assets, less one's liabilities. Liquid net worth (that which is cash or can be immediately converted to cash) is what co-operatives look at.

An Offering Plan, also known as a Prospectus, is a document issued by a sponsor in the process of converting a building to co-operative or condominium ownership (or developing a new building). Its purpose is to provide full disclosure of all relevant data associated with evaluating an investment in the property.

Points are payment made to a bank as consideration for issuing a mortgage. These are usually based upon a percentage of the loan amount.

Power of Attorney is a written instrument duly signed and executed by a person who authorizes an agent to act on his/her behalf to the extent indicated in the instrument.

A Pre-payment Clause is a clause in the mortgage which gives a mortgagor the privilege of paying the mortgage indebtedness before it becomes due.

A Proprietary Lease is the lease issued by a co-operative corporation to each tenant/stockholder prescribing the right to occupy a specific apartment. It includes general obligations.

Real Property is land and generally whatever is erected upon or affixed thereto.

A Recognition Agreement, also known as an Aztech, is generally provided by the lender to be issued by the co-operative and recognizes the secured rights of a lender to the shares of stock and the proprietary lease on an apartment.

A Right of First Refusal is a condition found in many condominium by-laws which permits the board to review any party seeking to purchase or rent an apartment. It gives the board permission to refuse the applicant. If the applicant is refused, the condominium must purchase or rent the apartment under the same terms and conditions stipulated in the contract or lease.

Schedule A is the list in the Offering Plan of all the apartments being sold in a newly-constructed building or one that is in conversion. It presents allocated shares or unit percentage interest, room count, prices and other material cost elements including the projected maintenance charges and the tax-deductible portion of the maintenance.

Schedule B is the projected estimated cost of operating a co-operative or condominium during its first year.

Subject to Financing, also known as Financing Contingency, is a term stipulating that the agreement is conditioned upon the buyer obtaining financing from a financial institution in an agreed upon amount.

A Tax Abatement is a reduction in the amount of real estate tax due over a period of time.

Title Insurance is an insurance policy which indemnifies the holder for any loss sustained by reason of defects in the title.

A Title Search is an examination of the public records to determine the ownership and encumbrances affecting real property

A Waiver is the renunciation, abandonment or surrender of some claim, right or privilege.