If you’ve listened to, watched, or read any of our content, you already know what we’re about to say: New York City real estate is unlike any other market in the country (or the world!) We’ve got unique descriptors of architecture, floor-plans, building politics, the structure of deals, even different career paths that work on real estate transactions.
Whether you’re new to the city, transitioning from renting to owning, or re-entering the market after a long time in your apartment, you’re probably going to encounter some phrases you’re unfamiliar with. This glossary will help you navigate the Manhattan real estate market with a little more savvy and know-how.
| Appraisal | A valuation of property by a qualified individual who uses his or her experience to prepare the appraisal estimate. |
| Appraisal fee | Fee charged by an appraiser to estimate the market value of a property. |
| Appreciation | An increase in property value. |
| As-is condition | The purchase or sale of a property in its existing condition, without repairs. |
| Asking price | A seller’s stated price for a property and a starting point for negotiations. |
| Assumption clause | A provision in the terms of a loan that allows the buyer to take legal responsibility for the mortgage from the seller. |
| Attended elevator | A throwback to the pre-World War II days, this is a building—there are few left in New York City—with a manually operated elevator run by an attendant who may also do double duty as a doorman. |
| Back-to-back escrow | Arrangements that an owner makes to oversee the sale of one property and the purchase of another at the same time. |
| Board interview | The co-op board interview is the final step in obtaining approval from the co-op board to purchase an apartment in that building. |
| Board package | A compilation of financial, legal, and personal documents that you present to the co-op board of a building in order to gain their approval to purchase an apartment in that building. |
| Brownstone | The term brownstone refers to a type of sandstone that was cheap and abundant during the 19th century, as well as townhouses across the city whose façades were clad with it. Brownstone townhouse entrances usually lead from the street to the ground floor or into an English basement, located half a story below street level. The first floor of a brownstone is also known as the parlor floor. |
| Capital improvements | Property improvements that either will enhance the property value or will increase the useful life of the property. |
| Capital, or cash reserves | A person’s savings, investments, or assets. |
| Certification of title | A certificate of ownership stating that the title to the specified property is free and clear except for a mortgage. |
| Classic Six | A family-sized apartment that has two bedrooms, a maid’s room, a separate kitchen, a full dining room, and a living room. Similarly, a Classic Seven has an additional bedroom. |
| Closing | The fulfillment of a contract especially for the sale of real estate. |
| Closing costs | Fees for final property transfer not included in the price of the property. Typical closing costs include fees, taxes, and insurance payments that are due when you sign a mortgage and take possession of the apartment. These vary based on purchase price and the mortgage itself. |
| Co-op building | One that is owned by a corporation formed by an association of members, called a board, who own shares in it. Buying into a co-op—which requires board approval—is merely buying shares of the corporation, not the apartment itself. |
| Co-signer | A person who signs a credit application with another person, and assumes equal responsibility for the loan’s repayment. |
| Condo building | One in which each apartment is owned privately, and all owners share a common ownership of common areas such as the lobby and hallways. |
| Credit report | A report generated by the credit bureau that contains the borrower’s credit history for the previous seven years. |
| Credit risk | A term used to describe the possibility of default on a loan by a borrower. |
| Credit score | A score calculated by using a person’s credit report to determine the likelihood of a loan being repaid on time. Scores range from about 360 to 840. A lower score means a person is a higher risk. |
| Deed | A written instrument by which a person transfers ownership of property to another. |
| Doorman building | A uniformed staffer is stationed in the lobby, at the ready to open the door for you when you enter and exit the building. In some buildings, the doorman will carry bags or hail a taxi for you. |
| Down payment | The portion of a home’s purchase price that is paid in cash and is not part of the mortgage loan. |
| Duplex | Apartments that have two floors connected by stairs or an elevator. |
| Elevator building | Generally, this is a larger building—with an elevator, of course—that is staffed by a live-in super or handyman. These buildings tend to have voice or video intercoms in lieu of a doorman or concierge. |
| Escrow account | A deposit of funds by buyer and seller — controlled by a third party, typically a broker — until the consummation or termination of the transaction. |
| Estate condition | The purchase or sale of a property belonging to someone recently deceased. It’s essentially as-is condition for someone who inherits an apartment and wishes to sell it. |
| Floor through apartment | Units that occupy the space from the front of the building to the back of the building, and often the full floor. |
| Full-service building | Much like a grand hotel, these buildings have a full staff, including porters, have a full staff, including porters, have a full staff, including porters, concierges, and doormen, and a lobby that’s attended around the clock. |
| Garden apartment | Apartments that have access to a private garden, generally on the ground level of a building. |
| Joint tenancy | Two or more owners share ownership and rights to the property. If a joint owner dies, his or her share typically passes to the other owners, without probate. |
| Junior one & four | A junior one apartment is a studio with an additional area that can be separated from the rest of the main living space, commonly used as a bedroom. They are typically smaller than a one-bedroom apartment, and larger than a by-the-book studio apartment. In a junior four, you’ll find a kitchen, living and dining area, bedroom, and the additional fourth room. |
| Land-Lease building | Apartment buildings that sit on land owned by an outside party. Most land lease buildings function as cooperatives, and each resident pays a monthly “land rent” as a part of their monthly fees. |
| Lender | A term referring to a person or company that makes loans for real estate purchases; sometimes referred to as a loan officer. |
| Live-in super | In this building, the superintendent lives on the premises and serves as the go-to person for emergencies and fix-it tasks. |
| Loft | Such apartments typically offer an industrial ambience and feature a large open living space with high ceilings, exposed structural members, and outsized windows. |
| Maisonette | A ground floor apartment that has its own street entrance, sometimes with a garden. |
| Mansion tax | Revised for 2019, an eight-step tax on New York City high-end home purchases, starting at 1 percent of the purchase price for homes between $1 million and $2 million, and rising to 3.9 percent for homes over $25 million. |
| Market value | The price at which a buyer is ready and willing to buy and a seller is ready and willing to sell. |
| Mortgage | A legal agreement by which a bank or other creditor lends money at interest in exchange for taking a lien on the debtor’s property. |
| Multi-family home | In NYC, this usually refers to townhouses (or other smaller structures, usually 6 stories or less) that have been separated into multiple apartments. |
| Penthouse | Derived from the French apentis, meaning a shed or a lean-to, the term “penthouse” originated in the 1920s when smaller houses were being constructed on the rooftops of apartment buildings to cash in on the growing demand for city apartments. The modern penthouse is usually a luxuriously outfitted space that occupies one or more of a building’s upper floors and often includes a private terrace or rooftop access. |
| Pied-a-terre | Non-primary residences intended for occasional use. |
| Postwar building | Built from 1946 until the construction boom of 2000, most of these apartments can be considered cookie-cutter, with fewer architectural flourishes, less vintage charm, and, often, lower ceilings and thinner walls. Postwar buildings, however, tend to have more amenities, including laundry rooms and fitness centers. |
| Preapproval | A lender commits to lend to a potential borrower a specific or maximum loan amount based on a completed loan application, credit reports, and debt and savings statements, all of which have been reviewed by an underwriter. Preapproval could happen before a property search begins or while the search is in progress. |
| Prewar building | Built before World War II, these apartments are solidly constructed and typically filled with vintage charm, including hardwood floors, crown moldings, arched doorways, and thick walls for reduced noise. They tend to have fewer luxe amenities than newer buildings. |
| Punch list | A list of items that have not been completed at the time of the final walkthrough of a newly purchased apartment, but for which the seller remains liable. |
| Railroad | Apartments made up of several rooms that are directly connected to each other without a main hallway. |
| Single-family home | Standalone residences that only house one family. |
| Sponsor unit | Units that are on the market for the first time. Typically, this is either a new construction or conversion from another type of building, or it’s a unit that was retained by the original developer and sold off at a later date. |
| Studio | This is a one-room apartment with a bathroom. An L-shaped studio has an alcove space with a separate dining or sleeping area. |
| Tenant-occupied | The purchase or sale of a property that is currently occupied by a renter. selling an apartment with a renter in place requires a careful review of the lease terms—with your agent and preferably with a lawyer. If the tenant plans to stick around as a renter, and has the lease to back up those plans, you’ll need to market the apartment very specifically to investment buyers. Tenants require a solid 24 hours’ notice for showings. |
| Terms | The period of time and the interest rate agreed upon by the lender and the borrower to repay a loan. |
| Townhouse | These buildings started out as—and may still be—single-family residences; they can be attached or semi-attached. Most have a private backyard, an eat-in kitchen, and a private street entrance. |
| Transfer of ownership | Any means by which ownership of a property changes hands. These include purchase of a property, assumption of mortgage debt, or exchange of possession of a property. |
| Transfer tax | A tax on the selling price of a home with New York State and New York City components. The newly revised state portion is 0.4% for residential transactions below $3 million and 0.65% for transactions over that amount. The city piece depends on the cost of the apartment: 1% for apartments $500,000 or less, 1.425% for apartments over that amount. |
| Walk-through | The final inspection by the buyer of a property being sold; the intent is to confirm that any contingencies specified in the purchase agreement such as repairs have been completed. |
| Walk-up | These buildings tend to be five or six stories and typically don’t have a live-in super. Instead, repairs may be handled by an on-call handyman. |
| White-glove building | Think Waldorf Astoria: This is a finely appointed, impeccably maintained building that promises the highest level of service to residents. The staff may even wear white gloves. |
