Issue 6. February 2007

    Frances Katzen

Listings:
Press:
Pertinent Articles:
 
 

01/21/2007

Why Women Pay Higher Interest
By BOB TEDESCHI
WOMEN generally have better credit scores than men, so why do they pay considerably more for mortgages than men?.....MORE
[New York Times]

 
 
 

01/19/2007

Downtown economy rebounding: report
By Catherine Tymkiw
The economy of Lower Manhattan has made a significant comeback to pre-Sept. 11 levels, according to a new index published by Pace University on Friday.....MORE
[NEW YORK BUSINESS]

 
 
 

01/17/2007

NYC rental market ranked top in the nation
By Julie Satow
All signs point skyward for New York City’s booming apartment rental market, according to a new ranking report from brokerage firm Marcus & Millichap......MORE
[NEW YORK BUSINESS]

 
 
 

01/2007

Developers reconfigure condo layouts to attract buyers in slower market
By Steve Cutler
As savvy and sophisticated as they've become in planning apartment layouts in condominiums to ensure a smooth sellout, developers and marketing consultants often find themselves coming online with the wrong product mix......MORE
[The Real Deal]

 
 
 

01/2007

New rentals polish rough edges of Hell's Kitchen
By Lauren Elkies
Hell's Kitchen, the scene of a transformation from rough neighborhood to diner's paradise, can now claim another element of change as developers make it one of the hottest areas in the city for new rental buildings......MORE
[The Real Deal]

 
 
 

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Frances Katzen
485 Madison Avenue 16th Floor
New York, NY 10022

(212) 350-8575

fkatzen@elliman.com

Read Biography

   

              The Fog Has Cleared;
        The Opportunities Are There

 

       The fog created over the past year by a combination of national news reports about a decline in the housing market, an increase in supply in Manhattan and fear that the “real estate bubble” might burst is clearing away and what we clearly see now is a stable residential market evenly balanced between buyer and seller.

       This creates great opportunities for both.

       Recently released figures prepared for Prudential Douglas Elliman by the respected appraisal firm of Miller Samuel Inc. show:

       1. Prices were actually higher in the fourth quarter of 2006 than a year earlier.

       2. For all of 2006, prices were approximately 6 percent higher than in 2005.

       3.Significantly, the supply of apartments decreased by a 22% as
           apartments sold and overpriced units were taken off the market.

       4. As a further sign of strength in the market, sales increased 15.5 percent over
           the third quarter in 2006 and 55 percent over the fourth quarter in 2005. The fourth            quarter is usually a slow period for sales with a decline from the third quarter.

       With the market balanced between buyers and sellers, a greater premium is put on negotiating and having a good negotiator in your corner. This is one area where a broker can make a real difference.

       For a buyer, negotiating isn’t always about reducing the asking price. A smart buyer looks to reduce the overall cost, which can be done in various ways. But, before getting into that, let’s look at the major issue faced in the beginning. What should the buyer initially offer? That depends on a number of factors including the asking price, the urgency of the seller, market conditions and comparable sales. I will recommend an initial bid after conferring with my client.

       But there are other ways to lower the overall cost without reducing the asking price. In some cases, particularly with developers who do not want to decrease the value nor image of their properties by reducing the prices, we look to these other areas. These can include the seller assuming the closing costs and providing additional amenities in the apartment.

       Communications, manner and flexibility are important in negotiating. As my mother would say, “There is a way and a way of doing things; and a way and a way of saying things.”

       It depends on how the buyer and the broker handle the situation. The last thing you want is an atmosphere of confrontation. In some cases, long-term owners have a great attachment to the apartment, the building and the neighborhood and too forceful and antagonistic a negotiation may cause them to dig in and not be flexible. That’s why the negotiations should always be conducted through brokers who have experience and are not emotionally involved.

       As we move quickly into the new year, I believe the New York real estate will continue its healthy state with a market that is advantageous for both buyers and sellers. We see ourselves in The Katzen Group as a real estate advisor and reference point for prospective buyers and sellers and look forward to your questions and inquiries.

       Lastly, thank you for your comments, support and encouragement since we introduced The Katzen Report last year. We look forward to communicating with you throughout 2007.

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© 2006 An Independently owned and operated member of Prudential Real Estate Affiliates, Inc. is a service mark of Prudential Insurance Company of America Equal House Opportunity. All material presented herein is intended for information purposes only. While, this information is believed to be correct, it is represented subject to errors, omissions, changes or withdrawal without notice. All property outlines and square footage in property listings are approximate.

© 2006 Prudential Douglas Elliman. All Rights Reserved