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You are here: Home / Archives for Buyers / First Time Buyers

First Time Buyers

Why is Central Air SO Uncommon in New York City?

June 9, 2022 by Jonathan

Whether you’re searching for a rental apartment or looking to buy the perfect home in Manhattan, you may have noticed a surprising trend (especially if you’re not a native or long-time NYC resident). Most New York City apartments don’t have central air!

Why is it so hard to find an apartment in New York with central air conditioning?

The lack of central air in most buildings in New York City comes down to when they were built. The NYC Department of Buildings reports roughly 75% of the residential buildings throughout the five boroughs were built before 1960. Central air didn’t become standard until the late 60s/early 70s. 

So, that charming pre-war you’ve got your heart set on may not have central air conditioning. If you’re renting, is it your landlord’s duty to provide a cooling solution? What did New Yorkers do to cool off before central air? What can you do now to keep your new apartment as comfortable as possible?

Beat the Heat This Summer Without Central Air

Coping With Heat Waves in the City

Most of the apartment buildings in New York City were built before central air conditioning became a standard amenity. But central air has been popular in the rest of the country for years now…so why are most apartments still reliant on other AC solutions?

The short answer: time and money.

Retrofitting older buildings with central air is expensive and extremely labor-intensive. Walls or floors must be broken down, ductwork installed, walls or floors must be refinished and repainted, and the air conditioners must be wired in and installed on the exterior or roof of the building.

Adam Dahill, the owner of boutique design and development company Dahill & Bunce, shared the costs of installing air conditioning in a CNBC article:

“Dahill is currently restoring a 3,900-square-foot Brooklyn brownstone. The total renovation cost is around $900,000. Of that, the air conditioning, a ducted split system, costs $65,000.”

In the same article, CNBC reporter Sophie Bearman gives the Plaza Hotel as an example. The iconic hotel underwent a massive renovation from 2005-2007, with the total cost of remodeling the building sitting at $450 million.

The installation of central air at the Plaza in 2005-2007 dollars? $25 million.

And that expense and time are what it costs IF you are even allowed to install central air conditioning in the first place. New York City buildings are notorious for their strict landmark and historic building regulations, so you may not even have the option to put in central air.

If you are dead-set on your apartment having traditional ducted AC, you’re probably going to want to look at new construction – it’s the only type of building in Manhattan that is more likely to have ducted AC than not.

But if you’re wanting to enjoy a beautiful pre-war or even mid-century apartment, what should you do every summer when outdoor temperatures rise?

AC Solutions for NYC Apartments That Aren’t Central Air

Though NYC landlords are legally required to provide heat for their tenants in the colder months, there are no similar requirements for AC in the warmer months. If you own your apartment instead of renting, you’re on your own as well.

Thankfully there are a number of less expensive and less complex air conditioning options available for New Yorkers to use in their homes, whether they’re renting or buying. 

  1. Portable Unit
  2. Ductless Mini-Split
  3. Through-wall Unit
  4. Window Unit
portable air conditioner

1. All About Portable AC

Portable AC units are standalone air conditioners, usually on wheels. They are commonly about the height of a mini-fridge with a freezer on top, and can usually be found at any big box home improvement store.

Typically, portable ACs use a window venting kit to expel any exhaust. The window venting kit resembles the exhaust of a clothing dryer, with accordion tubing. There may also be a drainage hose to run outside.

Many of these types of air conditioners have water reservoirs that are intended to help dehumidify the room they’re in. You do have to empty them occasionally unless they are one of the rare models which come with a drainage hose.

Portable ACs can be relatively inexpensive (compared to renovating) and easy to set up, which are two big perks. A significant drawback is that they can really only cool one room at a time. If you’re in a studio apartment with at least one window for exhaust ventilation, that won’t matter as much! But if you’ve got multiple rooms to cool it might be too much.

Portable AC units are also quite loud – depending on the model, of course.

ductless mini split air conditioner exterior

2. Everything You Need to Know About Ductless Mini-Split AC Units

Ductless mini-split air conditioners have to be installed on or near exterior walls because there are indoor and outdoor components. The outdoor part houses a compressor or condenser, while the indoor part handles the air.

Between the two halves of the unit runs the conduit, which includes the power cable, refrigerant tubing, suction tubing, and a drain.

These air conditioners are usually wall-mounted, at or above head level.

Some models/systems can accommodate multiple indoor units attached to one outdoor unit. Each indoor unit has its own thermostat so those rooms can be cooled independently as needed. This and the lack of energy losses that come with ductwork makes these an extremely energy-efficient option.

Ductless mini-splits fall behind other options when it comes to the cost, unfortunately. The flexibility and energy efficiency come at a high price. If you’ve got the budget it may be worth the expense, but there are definitely more affordable options out there.

through wall air conditioners on the side of a brick building

3. Through-wall Units Explained

If you’ve ever stayed at a hotel or motel with an air conditioning unit below the window on an exterior wall, you’ll be familiar with through-wall AC units.

While some through-wall ACs resemble window units to the layman’s eye, there are a few key differences. 

Through-wall ACs only vent exhaust through the back of the unit, not the sides. They are usually permanent fixtures as well, not something you put away in the wintertime. They can be much quieter than window units, as the wall absorbs some of the noise the air conditioner makes. 

These are more expensive than window units, considering the additional construction costs. Cutting through a wall to put in an AC is labor-intensive, and if you’re working with a historic building, you may not be able to install one at all. Through-walls are still much more affordable than ductless mini-splits. 

window air conditioner

4. Window Unit Air Conditioners

If you’ve ever walked through the streets of NYC in the summertime you’ve likely spotted the favorite AC of many New Yorkers: the window unit. But why are they so popular?

Window units are seasonal appliances. You can easily install it when it gets warm in the spring and then take it down in the fall when the days begin to cool so your home isn’t drafty. And you get your view of the city back when you do so.

The modern window air conditioner is a powerful and energy-efficient workhorse. Most come with a frame that helps sit the unit squarely in your window. Add a support bracket on the exterior of your building to prevent any accidents, and you’re good to go.

They typically vent exhaust out of the sides and back of the unit, unlike the through-wall which only vents out the back. They can usually dehumidify your apartment while they cool it too, which is great for the muggy, humid summer months New York experiences.

Most window ACs manufactured today also operate on standard 120-volt outlets, which isn’t always the case for older models. Unfortunately, you’ll likely have to get one per room, and they are quite noisy.

Installing a Window AC to Code and Safety Regulations 

In New York City, you do not need a permit to install a window AC, but the city has installation guidelines on their 311 website. We recommend that you follow them, in order to ensure that your unit is installed securely and isn’t at risk of falling onto a pedestrian or car below. You could be held liable for damages or medical bills if that were to occur.

Before you get started on the installation, there are three things you should check out. Make sure there is a three-prong 120-volt outlet (a normal outlet) near the window. If you don’t have one near any of your windows and have to use an extension cord, purchase one that is rated for air conditioner use.

The next thing to be aware of is that your air conditioner cannot block an emergency exit window that accesses a fire escape. This is a violation of fire code and could result in you being fined, or worse. Make sure that the window you choose isn’t an exit.

The third action item is to install a bracket that can hold the weight of the air conditioner on the outside of your window. This is crucial to ensure the stability of your unit and prevent any falls from occurring. 

The Cooldown

While you can install central air conditioning if you have an excess of time and money, most New Yorkers opt to cool their apartments with less permanent solutions like window AC units. 

Whether you choose a portable AC, ductless mini-split AC, a through-wall unit, or a window unit, follow the installation guidelines issued by the manufacturer. Don’t forget to check for safety guidelines with NYC 311 as well.

And if you’re looking for an apartment with a particular cooling solution, feel free to reach out. Our team would love to help you find an apartment that helps you balance staying comfortable in the summertime with all of your other wishes and needs.

Filed Under: Blogs, Buyers, First Time Buyers

Washers and Dryers – Why Can’t New Yorkers Have Them?

June 9, 2022 by Jonathan

In-unit washers and dryers aren’t standard amenities in NYC apartments. While you can expect to find at least a stackable unit in most luxury-priced apartments, those in lower price points tend to rely on either building laundry rooms or external laundry services.

But why is that the status quo? Why do most New York apartments lack washers and dryers?

Many NYC buildings’ plumbing infrastructure is too old and can’t handle the additional capacity needed for each apartment to have in-unit washers and dryers. If the building happens to allow a renovation that allows for laundry facilities, it still may not be possible to add them because of wet over dry rules.

Many residential buildings in Manhattan were built in the late 1800s or early 1900s before it was common to have washing machines and clothes dryers in apartments. These buildings were meant to accommodate hand washing dishes, bathing, and not a whole lot else. But that’s not always the whole story – let’s take a closer look.

There’s Not Enough Room

A typical laundry room is realistically used infrequently, compared to other areas of an NYC apartment, so many apartment owners opt to use the space more efficiently. Why pay for space 100% of the time when you could use it for a larger closet, extra bathroom, etc?

While it’s possible to squeeze small stackable washers and dryers in most closets, the load size will likely end up so small that owners or tenants would rather take their laundry to a laundromat or pay a laundry service to take care of it all at once.

Wet Over Dry

The “Wet-Over-Dry” rule states that wet rooms, like bathrooms, kitchen, and laundry rooms, need to be placed directly above wet rooms in other units. This way, in the event of an overflow or water damage, the water will (theoretically) be contained to the wet rooms.

All co-op and condo buildings require owners to submit renovation plans before starting any work. This allows those managing the building to check for any potential issues. You can sometimes find whether or not your building allows wet-over-dry in your building’s information online, or you can always ask your building’s super.

It’s Too Expensive

Many owners or tenant/shareholders would like to add in-unit washers and dryers, but the cost is also somewhat prohibitive. Just imagine trying to renovate the plumbing (and electrical!) in a building in the middle of Manhattan, full of residents, without disturbing every single apartment…it’s just not possible.

It also certainly wouldn’t be cheap. Renovations in NYC have more red tape and regulations than most other places in the world, both of which add to the total bill. Just to add a washer or dryer, you have to file for permits with the Department of Buildings, not to mention clear things with your board.

Each washing machine must be connected to a water supply, a large capacity drainage system, and a dedicated electrical circuit. Additionally, each dryer needs to be vented directly to the exterior of the building and cleaned regularly to avoid fires.

The cost of adding all of the required infrastructure for washers and dryers to buildings not originally designed for them is not manageable for a lot of New Yorkers. 

There Are Existing Drainage Issues

If an apartment building, or even a specific unit within an apartment building, has existing drainage issues, it is unlikely the building will allow washers and dryers.

The sheer volume of water that washing machines use can make any existing pipe and drainage problems so much worse. To illustrate just how much water washers use, an average toilet uses between 1.5-3 gallons per flush, while washing machines can use up to 30 gallons per load.

If the existing pipes in the building aren’t rated for that level of flow, you’ll end up with problems both in fueling the washer with enough water to run and draining the water quickly enough after the load is finished washing.

There Are Better Laundering Solutions

Laundry is a fact of life – everyone has to do it (or have someone else do it). Many buildings that don’t allow washers and dryers in each apartment will have laundry facilities just for their residents. But that still means you have to lug your laundry down and sit with it until it’s finished.

If your building doesn’t have laundry facilities, you might find yourself making frequent trips to the laundromat. There are many available in all areas of the city, but again…you have to pack up your laundry, get it there, and sit with it until it’s clean.

That’s why so many people opt for wash and fold services instead. Some even offer pickup and delivery, and can even interface with your doorman (if your building has one). 

Interested in wash and fold laundry services? Here are the top 10 rated services on Yelp as of the time of writing!

Need help finding apartments with washers and dryers? Please reach out! The members of the Gasdaska Conlon Team would be thrilled to work with you.

Filed Under: Blogs, Buyers, First Time Buyers

EP 28: Are You Ready to Buy An Apartment In Manhattan?

January 26, 2021 by Jonathan

Want to catch the video version of the podcast? Check us out on YouTube, IGTV, or our Facebook page.


Are You Ready to Buy An Apartment In Manhattan?

The John and Jonathan Sell NYC Podcast: Episode 28

Welcome to the John and Jonathan Sell NYC Podcast, where experienced, expert NYC real estate brokers John Gasdaska and Jonathan Conlon break down what’s happening in the market, what you need to know whether you’re a buyer, seller, or agent, and their insight into the future, with a little bit of fun along the way.

First Time Buyer In Manhattan?

Buying an apartment in New York City isn’t like buying it in the rest of the country. We have co-ops, condos, different taxes, and different requirements than most other markets. So, if you want to buy an apartment in New York City, you should be informed. We’re here to give you NYC Real Estate 101.

How To Become A First Time Buyer In Manhattan

Purchasing a Manhattan apartment is likely one of the most serious financial decisions you’ll ever make, and for first-time buyers, it can be a huge undertaking.

After all, sales prices have been climbing for years, and though the pandemic during 2020 opened the market up for more negotiations, Manhattan remains one of the most expensive real estate markets in the country.

There’s so much you need to know and prepare before you are handed the keys to your new home. Real estate taxes, attorneys, brokers, board interviews…the list goes on. Fortunately, we can help.

In this article, we’ve outlined absolutely everything you need to know before you purchase your first apartment.

Why trust us? The Gasdaska Conlon team has been selling real estate for over 20 years, and we are experts in the field. We know the ins and outs of the market, have seen it through many ups and downs, and know what it takes for a first time buyer in Manhattan to find the apartment of their dreams.

Step One: Take An Objective Look At Your Finances


Find Out Your Credit Score

Generally, you need to have a good credit score to be eligible to buy in the majority of Manhattan’s co-ops and condos. Lenders want to see a good credit score, too. Knowing your score (and the score of any co-purchasers score as well) is a great first step towards owning your own apartment in Manhattan.

Your credit score will also impact your interest rate – the lower the score, the higher the rate. If you pull your credit score and don’t like what you see, do what you can to improve it before falling in love with a property.

Get Pre-Approved

Connecting with a qualified lender and discussing your financial picture honestly can help you determine your price range. This also gives your broker some of the information they need to help determine the often even more stringent requirements NYC buildings place on buyers.

There are many different banks you can work with, but it is often beneficial to reach out to an expert broker who can recommend someone who is familiar with the unique requirements we see here in NYC.

Determine Your Debt to Income Ratio

Most banks, especially in Manhattan, will only lend up to a certain percentage of your income.

In other words, just because your monthly budget says you can afford a property doesn’t mean that the bank will agree.

Generally, you can’t spend more than 43% of your monthly gross income across all your debts. Those debts include your mortgage, carrying costs, maintenance fees, taxes, student loans, credit card debt, etc.

Source Your Downpayment and Save Up for Post-Purchase Liquidity

This is often the hardest step for first-time buyers in Manhattan (and the rest of the country for that matter). Often, it requires years of planning and saving. A good rule of thumb is to save 15% or more of your target property price for a down payment. Also, don’t forget to have extra money set aside for closing costs.

Closing costs vary by the transaction (and by property type, which we’ll outline below), but generally, you’ll need 4-5% of the purchase price on top of your down payment.

NYC Buyer Closing Costs

Condos

  • Attorney: Pricing varies
  • Building Application: $500 and up
  • Title Insurance, Title Search, & Recording Fees: 0.6% of sale price and up
  • Move-in Deposit: $500 – $1,000 (usually refundable if no damage)
  • Common Charges, Property Taxes, & Insurance Premium: Adjustments prorated as of the closing
  • Mansion Tax:
    • $1M but less than $2M = 1%
    • $2M to less than $3M = 1.25%
    • $3M to less than $5M = 1.5%
    • $5M to less than $10M = 2.25%
    • $10M to less than $15M = 3.25%
    • $15M to less than $20M = 3.5%
    • $20M to less than $25M = 3.75%
    • $25M and up = 3.9%

Mortgage Associated Fees

  • Origination Costs & Points: 0 – 3% of the loan
  • Appraisal: Varies
  • Bank Attorney: $800 – $1,250
  • Mortgage Recording Tax: 1.8% for all mortgages less than $500,000; 1.925% for all mortgages of $500K or more, minus $30 for townhomes
  • Real Estate Tax Escrow: 0 – 6 months, depending on lender requirements

Exclusive To New Developments

  • NYC Real Property Transfer Tax: 1% to 1.425% of the sale price
  • NYS Transfer Tax: 0.4% of the sale price, or 0.65% of the sale price for transactions greater than $3M. Transfer taxes are added to the sale price (for tax purposes only) and then re-calculated based on the bulked-up price.
  • Sponsor Attorney Fee: $2,500 – $3,500
  • Working Capital Fund Contribution: One-time fee equal to 2 months common charges

Cooperatives

  • Attorney: Pricing varies
  • Building Management Agent Fee: $500 and up
  • Judgment and Lien Search: $450
  • Move-in Deposit: $500 – $1,000 (usually refundable if no damage)
  • Financing/Recognition Agreement Fee: $250 – $500
  • Maintenance Adjustment: Prorated for the month of closing
  • Mansion Tax:
    • $1M but less than $2M = 1%
    • $2M to less than $3M = 1.25%
    • $3M to less than $5M = 1.5%
    • $5M to less than $10M = 2.25%
    • $10M to less than $15M = 3.25%
    • $15M to less than $20M = 3.5%
    • $20M to less than $25M = 3.75%
    • $25M and up = 3.9%

Mortgage Associated Fees

  • Origination Costs & Points: 0 – 3% of the loan
  • Application, Credit Check, etc: $500 and up
  • Appraisal: Varies
  • Bank Attorney: $800 – $1,250

More about Closing Costs for Buyers

On top of the down payment and closing costs, you’ll also need to maintain a certain amount of post-purchase liquidity or cash in your bank account after closing. Most co-op boards want to see that you have enough cash on hand to cover two years of mortgage and maintenance.

If someone in your life is willing to gift you a portion or all of the downpayment, that’s wonderful! Just know that you will still need to keep a healthy debt-to-income ratio and have adequate post-purchase liquidity. Also, some co-ops may not allow gifting.

Get Copies of Your Tax Returns

When you finally find the right apartment, you’ll want to make a great offer quickly – and that means being prepared. Pull the past 2 years of your tax returns to have on-hand for when you fall in love with your future home. This is often submitted to sellers to show you have the purchasing power to finance the transaction.

Step Two: Find A Broker You Can Trust


Recommendations Are Excellent But Do Your Own Research

While technically you can buy an apartment without a broker, you really shouldn’t. The real estate market here isn’t like the rest of the US – it’s complicated, intricate, and constantly changing. Going it alone might look like it will save you money on paper, but it will cost you dearly in the long-run.

Buying an apartment in Manhattan is likely the biggest financial decision of your life, and you will be giving your broker immense amounts of information about your financial situation. As a first time buyer in Manhattan, you might be tempted to go it alone to save money, but purchasing a property in Manhattan is an incredibly complex process, and you want to make sure the person you choose to work with knows what they’re talking about.

 

Recommendations from friends and family do go a long way, but your needs might be vastly different than your loved ones. You need to be able to completely trust them, and generally…just get along with them.

Being a first-time buyer in Manhattan is stressful enough – don’t let a less than stellar relationship with your broker make it harder.

If you are looking for a great broker or team, consider reaching out – we’d love to chat with you, no pressure and no strings attached.

Step Three: Decide Between Co-op or Condo


One of the ways Manhattan’s real estate market is different from the rest of the country is a unique property type: cooperatives.

We actually talked all about the differences between Co-ops and Condos way back in Episode 5, in case you are more of an aural learner.

While there are also townhomes and a few single-family homes (only really above 110th Street), co-ops and condos make up the vast majority of the real estate market in Manhattan. Defining what co-ops and condos are, the intricate ins and outs, characteristics, pros, and cons, etc. could be an article all by itself, but we’ll cover the basics here.

Cooperatives

When you purchase a co-op, you are not technically purchasing the apartment you live in, but instead purchasing shares of a corporation that owns the building.  This is an arrangement unique to NYC, and something that you will want to fully understand if you intend to purchase one.

Co-ops are governed by a board of directors that determine who is allowed to live there. The boards interview potential buyers and can either approve or deny them, which means board packages (paperwork your broker will submit on your behalf) are incredibly important.

Two things to keep in mind when deciding between purchase a co-op or a condo are the ease of transfer and ease of use. With a co-op, there are certain limitations on what you can do, and how you can do it.

Ease of transfer refers to what happens if/when you want to sell the property. The buyer will have to submit a co-op board package, as well as an interview (just like you did when you bought the property). Also, there can be limitations on how future buyers can finance their purchase – sometimes gifting or co-purchasing aren’t allowed, and they cannot buy in the name of a trust, LLC, or other legal entity – only as individuals.

Ease of use refers to what you can do while you own the property. Co-ops often limit how you can use the apartment, generally with restrictions on subletting, pieds-a-terre, and more.

Co-ops are found at all price points, from affordable and practical to prestigious, but generally cost about 15-30% less than condos of similar characteristics.

All of that being said, co-ops are a huge portion of the market and it’s likely as a first-time Manhattan buyer that you will be looking at several. The lower cost means you’ll be able to get more apartment for your money, which is even more important to those that don’t have real estate equity yet, like first-time buyers.

Condos

Most first time buyers don’t purchase condos, but that doesn’t mean you can’t. Condo owners generally have more freedom in what you can do with your property – meaning if you want to rent your apartment out someday, you can.

Co-purchasing, gifting, buying in the name of a trust or LLC, and many other scenarios are allowed when purchasing a condo, but the increased ease of transfer and ease of use come at a price.

Condos are generally about 15-30% more expensive than co-ops, but you make up for the higher prices in the flexibility you are allowed.

Step Four: Figure Out Your Wants and Needs


Here’s where being a first time buyer in Manhattan isn’t so different from the rest of the country – figuring out your wants and needs.

What are the things that you really want and the things that you really need? Being clear on this can really help streamline the purchasing process – but don’t feel like you need to strictly stick to your original list. Wants and needs change over time, and it can take a few months to find your dream apartment.

It’s normal for these to change, but you still want to be clear on what is a want and what is a need, so when you find the best apartment for you, you are emotionally ready to make an offer instead of looking for the ‘perfect’ apartment.

Step Five: Determine Your Location


Manhattan is a big place.

Choosing a location or neighborhood is important to help narrow the search. A lot of this will be determined by the feel, amenities, transportation needs, nightlife, etc. that you’re looking for, and it’s one of the areas in which our team’s expertise can help you save loads of time.

We know Manhattan like the back of our hand, so if you reach out and tell us a little bit about what you’re looking for, we can help you narrow down the neighborhood you’d most likely be happy in.

If you’d like to do some research before meeting with a broker, looking into individual neighborhoods can be a great first step. We’ve recorded tons of episodes where we’ve dived deep into individual neighborhood’s culture, amenities, transportation, cultural venues, history, restaurants, bakeries, and more – check out the podcast page for more info.

Step Six: Go See Properties!


Finally – the fun part!

Work with your broker to find properties you are interested in seeing in person, and be open to their suggestions.

You should start more broad than narrow, and have an open mind. Seeing properties that are an okay fit for you as well as those that are clearly not right helps your broker get to know exactly what you’re looking for.

Also, know that everyone (especially if you are a first time buyer in Manhattan) needs to see a certain number of properties before they are ready to purchase- maybe that’s 5, and maybe that’s 50.

You likely won’t know how many you need to see until you are ready to make an offer. Just keep looking, and eventually, you will find the right apartment for you.

Step Seven: Get an Accepted Offer


Congratulations – you’ve found the apartment of your dreams and the offer has been accepted. At this point, you’ll have a solid relationship with your broker, who will guide you the rest of the way.

One thing to note is the total transaction time with properties here in Manhattan – it generally takes about 90 days from when the contract is signed to move-in day.

Whether you’re a first time buyer in Manhattan and you’ve just started saving for your first apartment, or you are ready to speak with a broker, we wish you the best in finding the right property for you. If our team can do anything to help, please let us know and don’t hesitate to reach out.

Filed Under: Buyers, First Time Buyers

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JOHN GASDASKA

Office: 212.821.9138
Mobile: 646.345.7350
jwg@corcoran.com

JONATHAN P. CONLON

Office: 212.508.7162
Mobile: 347.564.2440
jconlon@corcoran.com

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