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Anna Klenkar

Licensed Real Estate Broker
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Governor Cuomo’s Dad ran this ad in ‘82

Governor Cuomo’s Dad ran this ad in ‘82

New York Values #57 - Inclusivity Will Save Us

February 5, 2020

Real estate likes to brag about how it’s an industry full of female entrepreneurs, where a single mom can work a flexible(ish) schedule and earn enough to raise her kids, an industry where the “glass ceiling” and “70 cents earned per dollar a man earns” don’t exist. The single mom narrative is the true story behind our CEO’s interest in real estate: his mother supported them by working full time as an agent, and she is still an active broker at Compass today #adorable. But while a lot of women enter the profession, at the top it is, like most industries, largely white men. Joe and Kelly is a rare male-female 50/50 split partnership, and as I’ve said before, part of my immediate desire to work with them was this equal divide. There are a handful of female-run teams that do major business. But if we are looking at ALL the top agents in the city, it’s overwhelmingly male dominated. 

I don’t watch Million Dollar Listing (starting to think I should), but I was still happy about the news that their newest cast member is a female agent, from Compass no less. The press failed to mention that her team is run by two white men, but I am still happy about the addition of a woman, even if it seems a little bit late — how many seasons have they done already? — and even if this isn’t exactly pushing the boundaries of what a luxury real estate agent can be. And lest we forget, the reason I don’t watch the show is because the first episode seemed to focus around one of the stars sexually harassing his assistant by making her listen to stories of his gross hookup exploits. But hey, it was a different time! We hadn’t even decided women were MAYBE people back then!

It may seem like a small thing, but inclusivity and representation in the media is actually super important, because we internalize what we see portrayed on TV and in print. If you only see male agents of a certain age in the luxury market, you start to believe that they’re the only ones capable of that type of business or operating in that space. And nothing could be further from the truth: even within the “white men” category, I know plenty of Compass agents who do insane business without being traditional and buttoned up. Which brings me to my first point: I love Compass’s inclusivity that allows for all of us to choose our own way of marketing and presenting ourselves.

I know, I’m a huge fangirl, but this is yet another in a long line of reasons that I love Compass and wouldn’t want to work anywhere else. Compass makes a HUGE deal of its culture, but the difference between its definition of culture and some other places I interviewed is that at Compass, culture means following a code of ethics/behavior, not looking a certain way. I certainly don’t look how most would expect from a real estate agent (at least if we are talking about how I dress and my marketing). Compass agents run the gamut and truly exemplify how the brokerage community actually looks. Real estate is, for many, a third or fourth career, and the defining common ground is the desire to run one’s own business, not a specific background or path or place that we grew up. But I am constantly “small-timed” by (mostly male) agents who don’t take me seriously because I’m not wearing a skirt or heels, don’t wear makeup, etc. And the answer to that problem shouldn’t be “well, Anna, you should start dressing the way they want you to!” The answer should be to try hard to eliminate these biases at the base level, so that I don’t get judged based on someone’s idea of how I SHOULD look. 

But this isn’t really about Million Dollar Listing, or Compass, or even real estate. It’s about the fact that in 2020 we still have an internalized bias to trust white men with money over other people, to give them the benefit of the doubt, to naturally assume that they make strong leaders, even when the opposite is proven true. No, I’m not talking about Trump, although the presidential race is a perfect example of this. I’m really talking about Governor Cuomo, the unhinged narcissist who at every opportunity manages to fuck up our city for everyone, on both sides. I’ll just use three quick examples here. 

  • Andy Byford - Andy Byford, or “train daddy,” is a British transit nerd who has overhauled multiple huge subway systems, bringing them from the depths of malfunctioning into the 21st century. After massive successes in London, Sydney, and Toronto he set his sights on NYC. Cuomo hired him, and Cuomo could have been satisfied with patting himself on the back, loudly and publicly, for bringing in the man who could save our city. Fixing the trains would increase rents and real estate value across the board, decrease physical violence on train platforms, and generally help EVERYONE, not just those who depend on the subway for their commutes. Instead, with every piece of press Byford got, Cuomo became more and more enraged until he finally wasted $4million of tax payer money bringing in his own SECOND consultant to essentially eliminate Byford’s position and make him powerless to do his job. Thanks, Cuomo. You’re the actual worst.

  • New Rent Laws - I don’t know if anyone was paying attention, but about 48 hours before the new rent laws passed in Albany and were sent to Cuomo for his signature, he called them out for infighting and speculated that legislators wouldn’t be able to come to an agreement and pass anything. If you know anything about human psychology you know that the fastest way to unite people is around a common enemy or what was basically a dare by Cuomo. So lo and behold, MASSIVE rent reform was agreed upon and sent his way shortly thereafter. Maybe they would have stopped arguing and gotten this done regardless, but he certainly didn’t help matters for himself since he opposed this reform so vehemently. 

  • Amazon H2 - This was a stupid idea from the beginning, no matter how many agents whine to me about property values in LIC. LIC is doing fine, and stop trying to tell me this would be bringing jobs to a needy community. The jobs wouldn’t be for LIC public housing residents (seriously, who does your PR?), we don’t need more tech bros, and we don’t need any tax cuts for Amazon. We don’t need more train issues. We don’t need more renters. And, as I speculated, Amazon is moving tons of its employees here anyway. But regardless of whether you wanted H2 or not, you can blame Cuomo for how this all went down. Apparently he’s as bad at negotiating deals as Trump is, because if he had done a better job we opponents probably would have had H2 shoved down our throats. Instead the deal was so pathetically bad, and was put together in such a non-transparent, shady way, that the city came together to stop it. 

While I have you, I’m going to throw in one more issue with “white male” as default for all positions of power and authority: it’s bad for those white men, too! This is why TAKING DOWN THE PATRIARCHY is actually better for everyone; it allows more than one definition of maleness, correctness, power, etc. And if you haven’t noticed, white middle aged men in this country are taking their own lives at an alarming rate. There are MANY, many reasons for this, but a significant one is that what they were promised as kids does not mesh with where they now find themselves. They were promised certain things would be theirs, and that these things defined their role as a man (wife, house, kids, ability to provide, tallness, money). But things have changed, and they were not trained to live in a world where they had to compete with everyone else. 

But I was. I am tougher, smarter, and savvier because of what I’ve gone through as a woman. I am better at my job, more personable, and my clients are DIE HARD obsessed with me. As an aside, I’d also love to stop hearing that women are “too emotional” for things from men screaming and crying over the slightest inconvenience. We are magical humans and you can barely handle life with every single thing being handed to you. 

And so in the end, I kinda win, and the losers are sad white dudes and people who weren’t able to end up in the (admittedly extremely privileged) position I’m in, where I actually do get to prove myself. By making the playing field more even and showing that ANYONE can be president, successful, important, smart, valuable, etc, we will literally make the world better. People who never had a chance to compete before will be given an opportunity to rise to the top and do AMAZING THINGS. Anyone who disagrees is small minded and believes in a zero-sum game rather than having a growth mindset. Maybe you should go back to the early ‘80’s and hang with Cuomo’s dad.

And maybe we’d have fewer Cuomos, fewer Trumps, and fewer headlines like this: https://therealdeal.com/2020/02/04/amazon-insiders-hq2-campaign-driven-by-bezos-ego-subsidy-envy/?utm_source=Sailthru&utm_medium=email&utm_campaign=NY%20Daily%20%7C%2002.05.20&utm_term=New%20York%20Daily

xo

Anna

In New York Values Tags NY Values, Cuomo, million dollar listing
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New York Values #28 - Pet Friendly

November 13, 2018

While the more compounding complications the harder the transaction will be, there are plenty of places you and your pet(s) can feel safe and secure. Just know that you won’t be able to go everywhere, and it would be in your best interest to work with an agent (and likely pay them a fee) so you avoid any pitfalls or end up in a bad situation.

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In New York Values, Buyers, Renters Tags NY Values, pets
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New York Values #24 - Dual Agency

August 28, 2018

Sometimes only the landlord, seller, or buyer is represented, and the other side comes to the table without their own agent. Or sometimes the buyer’s and seller’s agents work at the same brokerage firm on the same team. In these instances, the same agent/team represents both sides in what is known as “dual agency.”

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In New York Values, Buyers, Renters, Sellers Tags NY Values, agent
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New York Values #22 - Airbnb

August 1, 2018

Airbnb is a polarizing service. I myself fall on both sides of the aisle depending on when you ask. At its core, I love the idea of being able to rent a room in someone’s home here rather than pay $80+ for a shady hostel bed or $200+ for a motel near LaGuardia airport. Or rent a whole apartment for friends rather than two double beds, again at exorbitant prices. And there’s the added benefit of getting more of the culture/architecture/feel for a place than if you stayed in a chain hotel. I’ve also used the site to long-term sublet my apartment when I traveled (with my landlord’s permission), and to rent the second bedroom when I was between roommates. 

However, I hate their interface, especially for hosting. I hate their customer service (or lack thereof). And it sucks if you accidentally rent to someone who doesn’t understand how it works and rates you 4 stars instead of 5 because “this is clearly someone’s home.” Yes, yes it is. It’s in my description. That’s how Airbnb works. Or how it initially worked, before people started taking advantage of the system. 

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The New York value here is that it is still easy to find an apartment or room in NYC to rent on Airbnb for a relatively cheap price. Regardless of the legality of the tenant’s or owner’s listing, as a consumer you can access this city for less than a quarter of prior costs. When I came to NY as a high school or college student I slept on floors, under desks, or not at all, depending on people’s availability. My friends and I could not afford a hotel room, and many hotels won’t rent to 18 year olds. Now? You have options, guys. It makes the gap between apartments easier, too! If you have a lease ending and a few days before the next one starts, you can just Airbnb a cheap spot while you put your furniture (if applicable) in storage somewhere. Good job, Airbnb. You may not be perfect, but you get some things right. 


I was supposed to write about sellers in a soft market this week, but I want to write more about Airbnb instead. Dear sellers, I promise to get back to you next week. Lo siento. Don’t list in the interim. 

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New York’s city council recently voted unanimously to require room-renting sites like Airbnb to supply exact addresses and personal information about their hosts (full names, whether they rent or own). The justification for this is that people are gaming the system, worsening our existing dearth of affordable housing. There are legitimate concerns surrounding “ghost apartments” and apartments being used solely for Airbnb rentals, so at face value you can make this argument. However, the hotel lobby has a lot of power in NYC, and has donated extensively to city councilman-and-womans’ campaigns. This makes it hard to separate how much of the recent measure is to protect “the people” and how much is aimed at protecting corporate interests. 

Because my relationship with my landlord is not the best (read: he’s letting the building fall apart around me), I’ve been careful to stay within the legal confines of my lease. However, most Airbnb hosts do not. Most new leases in the city involve riders that prohibit any and all Airbnb activity. There are some reasons for this that make sense. While I was careful to make sure anyone who would share my space was respectful, not everyone is so discerning. And if you live in a building where your neighbors are constantly Airbnb-ing to loud, obnoxious guests, I totally understand how that would be frustrating. Getting onto multiple leases solely for the purpose of making them into Airbnb’s and earring a profit isn’t really fair, as you aren’t taking on any of the responsibility that your landlord does, and you don’t pay for maintenance. It’s definitely unfair to make a profit off an income-restricted or rent-stabilized/controlled apartment, as you should be bound by the same limitations in price as the landlord. I was careful never to earn more than my actual rent when I was subletting. 

However, renting out the other room in your apartment — for a portion of the rent rather than a massive profit — if you are between roommates should not, in my mind, be prohibited. People move out and leave the city unexpectedly all the time, and you can’t always find another roommate with short notice, especially one with whom you feel safe. It's incredibly stressful to share your space with someone who terrifies you, and it's also stressful to suddenly pay double because someone up and bailed on you. It's usually not even possible, causing you to fall behind on payments. 

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My moral qualms aren't the only reasons that people are unhappy with this proposed law.  Multiple lawsuits have already been filed challenging the decision. Airbnb is obviously angry about it, but the second is a private citizen who rents out a portion of his two-family home using Airbnb. That is completely legal, as he is not bound by . However, after he testified about his opposition to the bill, since he sees it as an invasion of privacy (and I'm inclined to agree), he claims that city officials with Special Enforcement have been actively intimidating and harassing him. This ties back into the theory that our city council is in the hotel lobby's pocket. I can't say 100% either way, but I hate lobbies, so I'll let you guess where my bias falls. 

I don't know what will end up happening, whether the challenges will result in a change or, if not, how the enacted law will affect short-term rentals in the city even more than the "Airbnb lease riders" already have. My hope is that, even if this does go through, people who rent out a portion of their space responsibly are able to continue to do so, for the good of both hosts and travelers.

Thanks for reading,

xoxo

Anna

In Buyers, Renters, New York Values Tags NY Values
It says "buyer," so I'm going with it

It says "buyer," so I'm going with it

New York Values #21 - Buyers' Market

July 24, 2018

Today’s New York Value is inspired, as usual, by a combination of real life events and an article I read, and it’s all about buyers!

Yesterday I submitted a board package for my FIRST sales deal (all 350 pages of it), which is equal parts exciting and terrifying. Co-op boards are like the Wizard of Oz: no transparency, no peeking behind the curtain, simply an announcement of whether your client is granted an interview. If not, they don’t tell you why, and you’re left to dejectedly speculate. But I’m sure this will go well. My client is a gem. Positive thoughts, yo! The Secret! Tony Robbins! High Frequency! 

Then today we had our agent sales meeting, where frustrated listing agents talked about their strategies for price drops in a market where seemingly nothing is moving. The even more frustrating part is that buyers are not acting on this opportunity, but are still waiting for the floor to fall out, worried that mortgage rates are going up while the market may still drop lower. As one agent put it, the market is going through turbulence and buyers are strapping in, preparing for a crash. The turbulence isn’t actually a sign of a crash, however, but a market correction that was inevitable after the past years of rapid price increases. 

Where I keep all of my money

Where I keep all of my money

The value here is how much data is available in NY real estate, although not in real time (yet, but don’t worry, Compass is on it). You can run comps for any apartment or building, no matter how bizarre and unique. You can read endlessly about the new development being proposed or built, to predict how neighborhoods will look years down the road. Quarterly reports, The Real Deal, Brick Underground, broker spam (my spam is the best spam, though), no other market has quite as many resources or as much activity, or as much data about said activity, as this city. 


The actual real estate value is related to this article in The Real Deal. Brokers have been telling buyers that it’s a buyers’ market for months. And it is. Just ask any seller or listing agent; they will rant about it. But because there is a lag between when new development is planned/priced and when it hits market (years), a lag between when someone thinking about listing their place and when it goes into contract (months), and even a lag between when something goes into contract and when it’s actually listed as sold (months/weeks), many of these homes priced too high, that aren’t moving, were priced based on the data available when the market was still artificially inflated. 

Also due to the lag time in information, buyers have remained skeptical of acting, concerned that the market will continue to drop and that they should wait it out. But today, FINALLY, The Real Deal published an article backing us (the experts, if you will) up. The New York Times is writing about the power buyers currently have. Now that the news has caught up with our reality, buyers will start jumping into the pool, the market will readjust, and prices will stop falling. It’s 2009 all over again!

This is true at all price points; I was able to negotiate a price 10% below listing for my co-op buyer, at the sub-1 million point, which is usually the most competitive. The more expensive the property, the smaller the buyer pool, and the more leverage you generally have in negotiation. 

Me, advising my clients on how money works

Me, advising my clients on how money works

So, if you are in the market to buy, start looking. We’re reaching the bottom, and if you don’t act now you’ll end up with higher interest rates, less inventory, higher prices, and less power. I’m honestly just upset I am not currently in a financial position to purchase an apartment…or the plane tickets I’m constantly looking at (travel bug forever). 

If you’re aiming to sell, check back in next week. Because my team just had a closing yesterday on an apartment that should have been hard to sell, but wasn’t. If you price your place right, it will sell, and sell quickly (unless it’s above $5 million, but that’s always a tricky market). If you insist on listing it way above its value, it will sit stagnant, which will lead to a whole host of problems I will get into next week on New York Values! 

xo

Anna

In New York Values, Buyers Tags NY Values
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New York Values #18 - Reading

June 26, 2018

I got some criticism after last week's post. Some people thought it was too fluffy or optimistic. And to those people I say, "I'm sorry, this week isn't going to be better." Today sucked. It really sucked a lot for a lot of reasons. Thankfully I have amazing people in my life and I got to lean on them, so then I was in a much better mood and this week's post 

So obviously I am obsessed with the trains, either the good or the bad, at all times. Maybe it was due to what a shitty day I had that I found solace in the car I was just stuck on. 

Today’s New York Value is about reading, and trains, and reading on trains. 

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Hot Guys Reading is a relatively popular NY Instagram featuring — you guessed it — hot guys reading on the train. It’s also a staple of any commute; people have books and Kindles out and are keeping their frustrations at bay by leaning into literature instead of throwing tantrums. Which is great, because it leaves room for me to throw the tantrums for everyone. 

There are two other train-related reading initiatives New Yorkers will be familiar with. The first is “Poetry in Motion,” which I see on my commute every day and features poems by American authors in a wide array of styles and on a variety of topics. How many cities can boast that they provide their citizens with poetry right in their face every day? 

Then there’s One Book One New York, which is basically a city-wide book club where people vote on a book and then everyone reads the same thing. Have I done it? No. Do I think it’s a great idea? Absolutely. 

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Today's real estate value is tangentially related -- artist/writer housing! New York real estate is hideously expensive, as we all know, and artists or writers, at least starting out, don't make that much money. New York is less of an artist haven than it once once *cough Wall Street cough*, but there are still ways to make it work if you're willing to hustle and/or get involved in a community.

Aside from housing groups geared towards the artistic community and general affordable housing, there are also live-work communities like Mothership NYC in Greenpoint and Westbeth Artists Housing in the West Village, where likeminded individuals can pay sub-market rent. 

Unsurprisingly, there are also nonprofits dedicated to providing resources to artists, including giving them information about housing options or actively helping them. NYC Arts and Brooklyn Arts Council are two of these.

But the CRAZIEST one, the one that is the most New York and also real estate related (because I've visited a listing that qualified) is the SoHo AIR or Artist in Residence zoning law. Per StreetEasy (because I am so, so tired):

“The artist-in-residence zoning law was passed in 1971 to allow for the conversion of 200 commercial lofts to residential use, on the condition that each loft contain a certified artist. Soho and Noho were essentially zoned for “joint living-working” spaces, so that these properties would be off-limits to any non-certified artists. For years, the law was widely ignored as agencies like the Department of Buildings concentrated their efforts on matters more pressing than carving out affordable spaces for artists to live.”

As much as this city has changed, at least we are nostalgic for the artistic past, and make at least vague attempts to keep some of it alive!

xoxo

Anna

Tags NY Values
Some of these buildings are rent stabilized

Some of these buildings are rent stabilized

New York Values #16 - Rent Stabilization

June 12, 2018

Today’s NY Value is inspired by my apartment and a conversation I had last night with my new roommate’s mother. Pulling inspiration from real life 24/SEVVVV (still tired)!

I discussed tenant protections a little bit in an earlier post, but this one is specifically about rent stabilized apartments versus rent controlled apartments versus free market apartments versus housing projects versus section 8. With me so far?

Rent stabilized apartments fall on the spectrum between rent control and free-market. I’ve laid out the exact differences in the “real estate” section, but essentially rent stabilized leases guarantee the possibility to renew (landlord can’t just sell the building and kick you out), and keep your rent from going up more than a limited percentage.

There are, however, a ton of misconceptions about these units. They are not necessarily much cheaper than market rate; in fact, a lot of rent stabilized units offer tenants a preferential rate that is lower than the legal rent, because legal is actually ABOVE market in those neighborhoods. They cannot be deregulated while a tenant is in place unless that tenant has made $200,000/yr for the previous two years AND the market rent is above the stabilization threshold (currently $2700). However, they are not only meant for low-income tenants; they are meant to protect the middle class. There are types of housing that are limited by income, but NOT rent stabilized units. There are also nearly a million of them in the city. ONE MILLION! 

At least one of these buildings might be rent stabilized.

At least one of these buildings might be rent stabilized.

There is definitely still a lack of affordable apartments for rent in the city, largely because new construction is pretty much all luxury unless it’s Mitchell Llama (income-restricted and offered by lottery). I get it; developers want to make as much as possible and building costs are steep. But I wish there were more incentives to build middle-ground apartments. Since there is a big delay between when a project is conceived and when it’s actually available to buy or rent, hopefully in a few years we will see a change based on the over-saturation of the luxury market.

But either way, at least we still have a cool milli of these on the market today. 


Look at all the buildings which may be rent stabilized!

Look at all the buildings which may be rent stabilized!

Your Real Estate value: breaking down the difference between rent controlled, rent stabilized, market rate, and section 8 housing. I know a lot about this stuff, but I still learned a thing or two in the process.

Housing Projects:

  • 328 physical projects in NYC housing over 400,000 people

  • public housing

  • income restrictions

  • you can apply for housing in one of these “projects” now, if you qualify

Section 8 Housing Vouchers:

  • 235,000 households in private apts in NYC

  • income restrictions

  • used to pay rent in private buildings that are NOT specifically income restricted

  • new applications for Section 8 housing have not been accepted since 2009, so this doesn’t help people who aren’t already in the program

Rent Controlled:

  • roughly 27,000 exist in the city

  • built before Feb 1947, continuously occupied since 1971

  • not income restricted

  • rents can go up based on the DHCR (Division of Housing and Community Renewal) rulings

  • guaranteed renewal at the end of your lease

  • if landlord sells, you get to remain a tenant on the same lease for same price

  • you can't get one now unless you have a family member who has one and find a way to get on the lease

Rent Stabilized:

  • roughly 1 million exist in the city

  • built before 1974, unless they are a more modern building that received tax incentives for offering rent stabilization

  • not based off income

  • rents can only go up a set amount set by DHCR

  • guaranteed renewal at the end of your lease

  • if landlord sells, you get to remain a tenant on the same lease for same price

  • you can rent a vacant, rent-stabilized place now!

Free-market:

  • everything else

  • no guaranteed renewal — your landlord can sell the building at the end of your lease and you gotta bounce

  • rent can go up with the market, so no protection if the location becomes super popular

I want to write more in the future about the other types of rental units, but for now let’s call it a day, and I’ll see you back next week with another NEW YORK VALUEEEEEEE.

xo

Anna

In New York Values, Renters Tags NY Values
A team that some New Yorkers like

A team that some New Yorkers like

New York Values #15 - New Yorkers

June 5, 2018

Today’s New York Values are both inspired by experiences I’ve had with one listing. 

First, there is a type of person who thinks that if you weren’t born in NYC you shouldn’t live here. These are the “America First”-ers of New York, who somehow don’t see the irony of making those claims while also railing against Trump for his policies and calling themselves progressive. 

But the value here is that these people are a dying breed. I’ve met very few, and always baby boomer or older. And while I kind of understand the sentiment (anyone can see that this city is vastly different than it once was), it’s outdated and small-minded, just like wanting us to go back to the 1950’s white supremacy and women-belong-in-the-kitchen era. All of our ancestors have been immigrants at some point, even if we have to go back really far, and we need to stop the cycle of hating on the new-kids-on-the-block, whoever it may be. If only people born here lived here, then this city wouldn’t be the incredible place it is. 

A thing that all New Yorkers hate

A thing that all New Yorkers hate

If it isn’t clear, this is largely based on one person who repeatedly said very rude things and basically told me I should go back to where I came from, while justifying it all with the phrase “I’m just a New Yorker; we say what we mean!”

I call myself an aspiring New Yorker because I know I’m not one, and I will never be one to many people, no matter how many decades I call it home. And no, I am far too soft-spoken and polite (stop laughing) to fit into the classic New Yorker stereotype. But the good thing is that although this city can and will chew you up and spit you back out, those of us who choose to put up with that do have, for the most part, respect for one another. 


Second part of this value is….you should always paint an apartment white before selling/renting. I was going to try to give an exception, but there isn’t one. Ok, maybe the ONE exception is new development by a Pritzker-Prize-winning architect can pull off a shade of grey, but that isn’t relevant to anyone reading this (unless one of you has been keeping something from me!).

Look how white these walls are!

Look how white these walls are!

I was discussing this with a friend, who, knowing my obsession with Fixer Upper (Chip & Joanna 4ever), made a good point. While the incredible Mrs. Gaines can look at a falling down building and see a beautiful home, she is rare. That is not a skill most people possess; it’s even hard to sell or rent an apartment currently tenant-occupied, because your average client can’t see past whatever furniture is currently in place.

White looks better in photos, feels cleaner, and gives a buyer the best chance of mentally placing him or herself in the home. It’s already a blank canvas, so there’s less imagination required. Here's an article by Brick Underground that talks about the best shades of white to use. 

So white, so clean.

So white, so clean.

With the listing I referenced earlier, we ended up virtually staging the apartment including changing the walls white. Although I love the color choices the owner made, it simply gets more traction online when it looks less styled. There's a reason staging companies exist!

So go forth and avoid telling anyone to “go back where they came from,” paint your apartments white, and circle back here next week for another New York Value.

xo
Anna

Tags NY Values
My Via driver answering the phone again instead of watching the road

My Via driver answering the phone again instead of watching the road

New York Values #14 - Not Driving

May 29, 2018

We all know how much I hate the MTA, but I hate commuting via car way more. I also hate that when I go home to VA I sometimes forget driving is a thing, so I'll meet friends, have a couple beers, and then need to sober up for an hour or so before heading home (#notolerance). 

People do drive in New York, especially real estate agents, but I'm mostly not among them. I drive out of NY, but do everything in my power to avoid using my car in the city. I’m a huge public transit proponent, which is part of why I’m so heated about the state of our subway. This is our nation's most walkable/functional-without-a-car city; don't ruin that with bureaucracy and incompetence!!!

The MTA is next-level awful right now, and all the ride sharing apps that have sprouted up are taking full advantage. In the absence of functioning trains, companies that started as reasonably-priced options have begun gouging people. Which brings me to what I really want to complain about (classic): Via. Via has joined the MTA on the list of things I am railing against for their treatment of customers. The other night I paid an exorbitant amount for a shared cab because I was so tired after flying from Berlin that I was worried for my safety were I to take the train and pass out. What should have been a 25-35 minute ride quickly became an hour when the driver repeatedly mapped to the wrong place, used an app NOT sanctioned by Via (you are required to use theirs to navigate), and nearly got into an accident with a white Volvo. The ride ended with me having to switch seats to direct him (because apparently he couldn't read his map), while whatever navigation system he had set to the incorrect address yelled over me. I was on the verge of tears because of how tired and unsafe I felt throughout the whole thing, while he repeatedly said it "wasn't his fault," as though it could be anyone else's.

I wouldn't be quite so upset had I not spent so much time on planes leading up to this, but the way their customer service has handled it is inexcusable. Not only do they claim I'm lying about the whole thing, but they wouldn't even respond to me for three days. And now I am putting them on blast in the hopes that nobody else has to go through such horrible treatment. I will pay the extra dollar or two for Uber or Lyft, because I have never received this kind of response from them. Worst customer service EVER, and I'm including Time Warner in that. Thanks, Via, for joining in the victim-blaming of 2016. Didn't you hear we're past that by now? 

No Via drivers to be seen; they're too busy getting in accidents

No Via drivers to be seen; they're too busy getting in accidents

But, always the optimist (sorry, really mad at Via, hence the rant), I still LOVE that we don't have to depend on cars to get around most of the time. I wrote this whole NY Value on my phone while on the train today between appointments, because I was running around the city for 12 hours. I wouldn't be able to do that if I had to drive. I love driving, but not when it involves traffic and I feel like I need to get work done!


Real Estate Value - how the trains affect rents/sales prices. 

I have already worked with several of what I call “L train Relocation” clients. These are people fleeing Williamsburg and Bushwick in anticipation of the L between Brooklyn and Manhattan closing for at least 18 months, but knowing the agency’s complete incompetence it will likely be closer to 3 years. This begins in January of 2019, and the market has already adjusted to the "rumor" part of this improvement (with sales prices not really dropping, rental prices dipping slightly). The "actual" market adjustment will occur when the train finally shuts down and people living there experience how good or bad the alternatives are in their day to day. I find this extremely fascinating because behavioral finance is my favorite finance, and this is completely a question of human lived experience affecting markets. Look forward to a lot of data-driven writing around this once it happens, because I do love a case study!

A car that would never work for Via

A car that would never work for Via

But on a positive train front, the mythical 2nd Avenue line (it's been a rumor so long it's even mentioned in Mad Men) finally opened in early 2017, and it's one of the most functional parts of our subway system. Areas of the Upper East Side that were four avenues from the train are suddenly more accessible. And, like in Williamsburg, the exact effects are hard to track, but it does seem to have contributed to a rise in rents/sales prices. Here's an interesting article if you want to delve more into it. 

Alright, guys, drive (or don't) safe, and I'll be back next week!

xo

Anna

Tags NY Values
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New York Values #13 - Flights

May 22, 2018

Today is my BIRTHDAY and I woke up at 4am in Reykjavik, Iceland after a 24 hour layover to head to Berlin. Iceland was cool and I’m glad I had a day to check out Reykjavik, which is really beautiful, but I’m definitely going back with a crew and enough money/time to rent a car and drive the whole country. 

In light of my being abroad, today’s New York Value is about how living in NYC makes it so easy and cheap to travel compared to most of the United States. New York is home to two large airports, JFK and LaGuardia, and although Newark is in NJ it’s still very much a NYC airport. LaGuardia is a domestic Delta hub, while JFK and Newark are major international airports with cheap service around the country and world. I thought living in VA and having such easy access to Dulles was amazing, but pretty much any time I compare prices, flying from NY is substantially cheaper.

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I met a girl yesterday who goes to school in LA, and she expressed how jealous she was at what I’d paid for my flight (very little), and how easy it is for her East Coast friends to visit Europe, Africa, and the Middle East (ok, she just said Europe, but it holds true for all). Although it’s easier for West-coasters to get to Hawaii and Southeast Asia, Eastern Europe is my favorite place ever, so I’m glad I’m on the better coast (KIDDING! I love CA/Oregon/Washington, but I have no interest in living there). 


Real Estate Value? Also international themed.

NYC’s housing market has remained stable throughout time in a way that very few can. Part of this is the city’s role in the international economy. Part of it is also the barrier to entry of owning, especially in Manhattan, and most specifically related to the concentration of co-ops.

Having enough money to purchase a co-op is not enough; you also need to show you have two years of “post-closing liquidity” after the sale. In a co-op your monthly HOA fees are called “maintenance,” and you basically need to prove that you will have, in cash or easily liquidated stocks/investments, 2 years of this amount, as well as your mortgage payments, after you buy. For instance, many apartments on the lower end of the price range in Manhattan, at $500k, will then have maintenance at roughly $1000/month. So with 20% down, you’re looking at handing over $100k in cash, getting a $400k mortgage, paying your closing costs (which vary, but let’s say 4% of the purchase price for this example, so another $20 grand), and then need to show about $70-80k more in the bank. This is, of course, after you have an accepted offer, sign contracts, submit a board package that includes such documentation as your past 2-4 years of tax returns, recent bank statements, letters of recommendation, landlord recommendation, employment letters, have your credit and background checks, etc. Oh, AND then you have the interview with the co-op board if they think your application is up to snuff. 

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I don’t mean for this to scare anyone off of buying! Honestly, in this city it’s shocking the amount of money and documentation needed simply to rent mean that if you’re in the habit of signing leases rather than just subletting and floating around, buying isn’t all that much crazier. And because co-ops are so strict, during recessions there is very little fluctuation in their values; your asset’s value is pretty protected. There’s a reason all these very wealthy foreign investors have historically and continue to park their cash in the NYC housing market. 

Hope you’re all having a great week, and are getting more sleep than I’ve had the past few days! It’s shocking that this is even remotely coherent.

xo

Anna

In New York Values, Buyers Tags NY Values, coop vs condo, international
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