Navigating today’s real estate market

  1. AS INTEREST RATES RISE, BUYER HAVE MORE LEVERAGE TO
    NEGOTIATE AND ARE LOOKING FOR A DEAL

    COOPS
    1. Buyers are focused on their monthly carrying costs especially in todays market, so
      coops can be a great option as they are generally cheaper than condos , have low
      closing costs , and taxes are wrapped into the maintenance
    2. Coops do require more money down and a max percentage of financing so Buyers
      may have to be qualified
    3. Greater restrictions so best for buyers looking for long term primary residence
    CONDOS:
    1. Seller Concessions: Sellers can still maintain their sale price point by issuing a closing cost
      credit which allows buyers to finance in their closings costs to their mortgage payments , so
      that the Buy
    2. PURCHASE CEMA’s: This is a great tool to save your clients money on the mortgage
      tax. The mortgage tax is 1.8% of the loan amount if under $500k, and 1.925% of the loan
      amount if over $500k. However if the Seller has a current mortgage, then we arrange for a
      Purchase CEMA whereby the Seller’s lender assigns the mortgage to the Purchaser’s
      lender. Then the mortgage tax is reduce based on the difference between the Seller’s
      principle mortgage balance and the Purchaser’s loan amount. This is called the “new
      money” and is taxed at the above percentages thus significantly saving the Buyer in the
      mortgage tax.
      1. FEES: the Purchaser CEMA fees range around $1500-$2000 for the processing
        and recording and legal fees
      2. INTERNAL CEMA vs OUTSIDE CEMA : if the Buyer applies for a mortgage
        with the Seller’s current lender, it’s a lot faster and seamless. However if the
        Buyer wants to stay with their bank, is called an Outside CEMA and may take a
        little more time and increase the fees.
      3. COLLATERAL DOCS (original Note & Mortgage) – the sellers current lender
        must locate the original Note & Mortgage in order to assign it to the new lender.
        If they lost the originals, then the CEMA cannot be completed.
      4. Splitting Savings : some Seller’s get greedy and request that the Buyer split any
        mortgage tax savings with them 50/50 in exchange for their cooperation.
  2. Creative Negotiation Tools for New Construction Deals: How to Maintain Sponsor’s
    Bottom Line and Still Obtain the Best Value for Your Client:
    1. 1-2 years of free maintenance
    2. Free storage bin or parking
    3. Sponsor pays their own transfer tax & atty fee
    4. Sponsor pays Buyer’s Closing Costs as well (title insurance, mortgage tax, etc)
    5. Items of Seller’s personal property included for free as leverage ( furniture ,
      chandelier , artwork ) ** Note : this is a great tool to separate the price from the
      personalty as it will save the seller on transfer tax / capital gains and save the buyer
      on their closings costs as well ( provided they are paying cash for the items
      separately )
  3. Creative Negotiation Tools for Everyday Resales: Saving your Clients Money
    1. Side Agreements: when submitting an offer for property $1M or greater, your
      buyer will be required to pay a 1% mansion tax. Therefore, propose that the
      purchase price will be $995,000 and the parties will enter into a side agreement that
      Buyers will contribute the balance of the purchase price toward Seller’s closing
      costs (ie: broker commission, transfer tax, etc). This will save your client $10,000 or
      more!
      1. This also saves the Seller on STATE transfer tax with the continuing lien
        deduction
    2. Rent to Buy Options: For new construction properties and vacant resale properties that Sellers don’t want to
      continue carrying, propose this option to a Buyer who is not ready to buy due to
      circumstances or funds (can be 6 months- 1 year lease). *You collect double commission,
      on rental and sale.
      1. Arrangement can be made where monthly rent will include a portion to cover
        seller’s carrying costs, and a portion to go toward 10% deposit (such as 50/50
        split of rent). If Buyer defaults on purchase, then deposit monies collected will
        be retained by Seller as liquidated damages.
      2. Another option is to have Buyer put 5% down upon lease signing, pay rent
        accordingly, and then put another 5% down upon exercising the option to buy
        after 6 months. If he/she defaults, then 5% is retained by Seller as damages.
        Also, the parties will agree to average the 2 appraisals in order to finalize the
        purchase price in the event of significant market shifts.
      3. For new construction buyers, Buyer can move in once TCO is issued as a
        “preclosing tenant”. Buyer will pay market rent to Sponsor until closing and
        rental amount can be negotiated at a discount which will provide additional
        savings for your client.
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Taliya Bashani ESQ

Are you tired of spending so much time and energy running around with buyers showing them properties only for them to jump ship or not pull the trigger ? Are you getting into contract only to lose deals and have them fall through midway? I have helped thousands of agents just like you refocus their energy on sellers and win more exclusive listings. They are doubling their commission with a lot less time and stress. I have spent the last 15 years as a broker and real estate attorney closing over 10,000 deals and over $1 billion in real estate.

15 years as a Broker & Attorney

Mastering Real Estate: Insights from 15 Years as a Broker and Attorney in Diverse Market Landscapes.

Closing Over 10,000 Deals

Unlocking Success The Art of Closing 10,000 Deals in the Dynamic Real Estate Arena.

$1 billion in Real Estate

From Transactions to Triumphs Navigating $1 Billion in Real Estate with Expert Precision.