We start the buying process by identifying the client’s objective, which may be to have as primary residence, vacation home, or to rent out.  While criteria may differ, the overall goal is to buy a property that will appreciate over the long term.

All agents, through the real estate trade agreement of the Real Estate Board of New York, have access to the entire inventory of properties for sale.  The role of a buyer’s agent is hence to identify the right property and not to merely provide access to view. As such, the brokerage community strongly discourages the buyer from using multiple agents as this would create confusion.

We recommend that a potential client interview several agents and then decide on one. As we will be 100% focused on helping our client identify the right property, we in turn expect client loyalty. This expectation is consistent amongst all good brokers.

Contact:  tan@castle-avenue.com

Read about Wei Min’s style in Best Manhattan property agents and Role of a buyer’s broker. 

Outlined below is the buying process we go through with clients.

• Evaluate objective – purpose, long-term plan, attributes
• Identify and arrange properties to view
• Perform analysis and due diligence
• Present upsides/downsides of each property
• Negotiate
• Recommend financing source, whether US Bank or an international bank.  Also, lenders that service foreign buyers.
• Recommend attorney (Closing, form company)
• Recommend  accountant (annual filings, taxes)

If financing is used, transaction costs (bank, attorney, accountant fees, mortgage tax, title insurance) are approximately 5-6% of loan amount. Buyers need to show required down payment, usually 20 to 50 percent of property price depending on whether the property would be a primary residence, vacation home or investment property. In addition, banks may require proof of liquidity cushion, eg 10 – 18 months of monthly payments in liquid assets.

If the buyer pays in cash (no financing), then closing costs would be about 2-3 percent of the property price.

It typically takes 3 months from property identification to closing. At closing, all parties – buyer, seller, bank, attorneys, brokers, would come together at a table. A lot of paperwork would be signed and funds would be provided to the seller in exchange for the buyer getting legal title to the property. The deal would be completed at the table and usually no future follow-ups would be necessary.

For investor clients who intend to rent out the property, the next step is to market to potential tenants. Here are the steps we perform. One of the risks of owning rental property is tenant delinquency. This means special attention needs to be paid to screening potential tenants with regards to credit quality.

• Market property for rent
  • Personally, show property to potential tenants/their agents
  • Convincing presentation of property’s upsides
  • Internet marketing (Website, Broker system, Streeteasy, Trulia)
  • New York Times
  • Professional photography
  • Professional floorplan
  • Google marketing
  • Social media marketing (Facebook, Twitter)

• Screen potential renters / tenants (FICO credit score, income, financials)
• Process paperwork
• Arrange for tenant move in
• Set up automatic transactions for the tenant to automatically deposit monthly rent checks into owner’s account. The tenant/landlord pays their respective brokers’ fees in the rental process.  The fiduciary responsibility  of each broker will be stated in the New York real estate landlord and tenant disclosure form.
• On handling tenant and repair issues, we can be the point of contact, or we can refer the landlord client to a property management company.

• Price property based on market comparables
• Market property to domestic and international buyers
• Leverage media popularity to gain exposure for the property
• Marketing Strategy:
  • Personally, show property to potential buyers/their agents
  • Convincing presentation of property’s upsides
  • Internet marketing (Website, Broker system, Streeteasy, Trulia, Zillow)
  • New York Times
  • Professional photography
  • Professional floorplan
  • Google marketing
  • Social media marketing (Facebook, Twitter)
  • Open houses for broker previews
  • Open houses on Sunday catering to buyers

Always consult your CPA or attorney on tax matters as individual situations differ.

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