Latest news with #UrbanDigs'
New York Post
2 days ago
- Business
- New York Post
Rents jump shocking 15% after NYC ditches broker fees
The city ditched broker fees last week in a supposed win for tenants, but landlords had the last laugh — wasting little time sending rents skyrocketing in an effort to recoup their anticipated losses. Rents shot up a shocking 15% in the week since the controversial FARE Act took effect, with the average rental in the Big Apple jumping from $4,750 to $5,500, according to an analysis by real estate analytics firm UrbanDigs. 6 New Yorkers have been sharing conversations with brokers like this one since the FARE Act was enacted on June 11. Reddit Advertisement 'The Manhattan rental market has seen a sharp reaction,' said John Walkup, UrbanDigs' co-founder. The FARE Act, which prohibits agents representing property owners from charging renters a 'broker fee,' also requires that all fees a tenant owes be included in rental agreements and real estate listings. But the rising rents 'suggests that landlords may be attempting to incorporate broker fees into the rent, which would transfer the cost to renters in a less direct, but very real way,' added Walkup. Advertisement 6 Walkup said the market reacted 'sharply' to the FARE Act. UrbanDigs The law change has created what insiders tell The Post is a 'shadow market' — apartments that aren't listed so landlords can still get tenants to cover the fee. 'We're going to be looking for apartments again like it's 1999 … where you have to know who to call and when to call,' said Jason Haber, co-founder of the American Real Estate Association and a broker at Compass. 'It's going to be an odyssey.' Advertisement 6 Ricciotti said tenants have been asking if they can just pay the broker fee instead of the higher rent, which works out to more money over the long-term. BOND New York Real Estate And listings dried up overnight with an estimated 2,000 vanishing from website StreetEasy on June 11 — the day the FARE Act took effect — while UrbanDigs found available apartments dropped by an eye popping 30%. 6 A renter posted this screenshot of the two different asking prices. Reddit Renters meanwhile have been sharing horror stories online, with receipts — like screenshots of conversations with brokers flat out telling them they get one price if they pay the broker fee and another, much higher rate, if they don't. Advertisement One New Yorker, for instance, was told by an agent the rent was going up $700. 6 Kebenae Tadesse said agents have still been trying to get tenants to pay the fee. Helayne Seidman Another said a landlord was asking $6,800 for a 3-bedroom with a broker fee — or $8,000 with no fee, which is illegal to advertise under the new law. 'We've been inundated with prospective tenants who have asked our agents for the option to pay our brokerage commission, directly and maintain the benefit of the lower pre-Fare Act rental terms, which unfortunately, we have to tell them is now illegal,' said Bruno Ricciotti, principal at Bond New York. 'It's so frustrating,' said Kebenae Tadesse, who had been trying to find a Brooklyn studio. 'Brokers have repeatedly said, 'Well, if I don't charge you this fee, the landlord is just going to put it into your rent,' she told The Post. 'It's discouraging.' 6 Rents went up by 15% on average since the FARE act went into effect. goodmanphoto – Advertisement When Tadesse called out a broker for trying to pass on the fee to her, the agent took down the listing, marking it as 'temporarily off market' on StreetEasy since June 11.
Forbes
31-03-2025
- Business
- Forbes
Real Estate Staging Can Slash Days On Market And Boost Sale Price In New York
When it comes to selling real estate in any market, first impressions are absolutely crucial. In the age of killer content, buyers can scroll through listing images, floorplans, and details like they scroll through Instagram: an ever-refreshing feed. If your home doesn't grab and keep attention immediately, it's getting skipped and forgotten. This is where staging steps in, as it can transform a property from a 'meh' to a 'yay!' Jason Saft, founder of Staged to Sell Home, recently joined UrbanDigs' podcast, Talking Manhattan LIVE!, to discuss how strategic staging can go beyond simply enhancing aesthetics to solving common roadblocks. We'll sort through some of his thoughts on staging below. However, it's not without cost or complexity, so a breakdown of how staging works— when it's worth it and when it's not — is useful. Many sellers think a freshly painted, empty white room helps show brightness and size, but unfortunately, empty rooms often appear smaller than they are and, worse, buyers struggle to visualize how they'd use the space. This effect is compounded for awkwardly shaped rooms. Furniture and housewares can serve as a point of reference for understanding how a room can be laid out, used, and enjoyed. Hence, a well-staged home can provide a blueprint for living in the home. This helps buyers see how their life could fit into your square footage. Case in Point: Recently, four large penthouses sat on the market for two years at a new luxury condo development in Brooklyn. The large, open layouts left too much to the imagination, and buyers just couldn't figure out how to use them. After staging, which helped illuminate the true dimensions so buyers could think about their lives in that space, all four went into contract. It's no secret that homes that sit on the market too long become stale. There's a certain stigma attached to a long days-on-market count that generally only leads to price cuts. Worse, homes that linger on the market incur costs, which can quickly add up over time. The faster a home sells, the less the owner spends on mortgage payments, taxes, maintenance, and upkeep. While price is key to selling quickly, staging can be a big help, too, especially for homes with obvious flaws or renovations needed. Effective staging can stay true to the actual condition of the home while putting forth a vision of the near future at the same time. This helps ease the cognitive dissonance buyers experience when looking at problematic units by drawing attention to the quality of the home's 'bones' and not its fixable flaws. According to Saft, a Manhattan home sat unsold for 14 months, racking up $140,000 in carrying costs. After staging, it sold in 35 days. By focusing on the positives, staging can help buyers get to 'yes' faster. Our research shows that buyers are continuing to pay a premium for turnkey homes. In fact, buyers are currently paying a nearly 20% premium to avoid the headache of renovation. However, when the comparison between turnkey and needing work is less dramatic, some recent same-building sales examples suggest that staged units may actually outperform unstaged ones. Even if the condition is marginally worse, a staged unit can present as turnkey. While staging is not a replacement for renovation, the cosmetic enhancements it can add can far outweigh the cost by focusing buyers' minds on the current livability of the home instead of the mental math maze of costs. Case in Point: Recently in Brooklyn, two identical units (one staged, one not) sold two months apart. The staged unit fetched over $200,000 more. Today's buyers expect homes to look like they came straight from a reality show. Thanks to social media and photo-centric real estate platforms like Zillow, poorly presented listings are simply dead on arrival. As Saft explained: 'We've become a society of people that just want instant gratification. And we expect: I want this, and it's going to be there and ready.' Images set buyer expectations. But if reality doesn't match those expectations, buyers are out, putting the listing at a huge disadvantage. Sellers who set unrealistic expectations unconsciously give buyers tremendous leverage. Staging can help reality meet expectations, which flips leverage to the seller. Properly done, staging can be pricey. In Manhattan, for example, larger properties could see six-figure prices. However, the near-term pain may be a long-term gain, especially if the alternative is cutting the asking price after months on the market. A 5% price cut on a $2 million listing (the average sale price in Manhattan) is $100,000. If that could be prevented by a $50,000 staging cost, the seller still comes out well ahead. Virtual staging, where sellers digitally add furniture and correct cosmetic issues by creating realistic images, is a cheaper alternative to physical staging, but it comes with risks. 'It's misleading,' says Saft. He continues: 'There's no relation to reality. And now that person has a high expectation from the virtual staging when they get there. And that expectation just goes straight down.' If you go the virtual route, be transparent. Show both the real and staged versions, so buyers aren't blindsided. So, should you stage? Here's how to decide. YES: NO: The Manhattan market is beginning to perk up after a few quiet years, but buyers are as picky as ever. Beyond aesthetics, staging can be a strategic move to reduce time on the market and maximize price. Given today's price sensitivity, sellers who invest in presentation may have a leg up on those who don't.
