I am interested in a condo building in Astoria that was built this year. The real estate agent kept pushing their bank on me saying that no other

Asked by Junkieliam, Astoria, Queens, NY Thu May 20, 2010

banks will lend me money unless there is at least 50% - 70% sold units. The building currently has 15% units in contract.

1) What does the agent get out of me using their chosen bank?
2) Is it true that there are no banks anywhere that would lend me money now that only 15% are in contract? If not, can someone give me a few leads?
4) Since we are still in recession, has any agent seen a lot of contracts falling through due to not qualifying for a mortgage? I'm wondering if I should wait until someone else's contract falls through so I can purchase the condo cheaper.
5) The condo I'm interested in cost around $660/sq feet and includes a parking spot. I personally think it's way overprice granted it's on the 7th floor. Thoughts?

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7
Eric D. Jarm…, , Rock Hill, NY
Thu May 20, 2010
BEST ANSWER
The short answer is that the Real Estate office or agent has some financial tie with the lender or loan officer in the bank. There are Real Estate firms that even have mutual principals in the ownership of Real Estate firms and mortgage banks. These firms will want to push their own for obvious reasons. If you can wait to buy I can refer you to a non for profit organization that fights this sort of thing on the one hand but can actually send you through the qualification process. You will not be able to get the same education , service and rates in the for profit sector. More specifically it's very important that you work with an agent that knows how to check the financials of the condominium. Certain bench marks must occur before the Governmental Service Entities (GSE's) will purchase these loans on the secondary markets from the lenders. When choosing a condo especially in certain sections of Astoria that border Long Island City you need to consider location to the subway as a major concern. The Piano factory is one of the most luxurious condos to be built in the last few years but suffers now because it is too far away from the subway. In the pioneering days of a development such as the one you are describing the one advantage if you buy now is that you can often have your agent negotiate for sweet perks from the developer that they wouldn't be interested in offering when the building is say 80% sold. I would be happy to assist you further. Just contact me via my profile.
0 votes
IOANNIS LAGO…, Mortgage Broker Or Lender, Astoria, NY
Wed Sep 15, 2010
Mortgage World Bankers will lend on new condo's with no-presale !! Give me a call 7182741234. We also have the ability to obtain FHA approvals for new buildings.
Web Reference:  http://www.mwbankers.com
0 votes
Therese L Ko…, Agent, Bayside NY 11361, NY
Sun Aug 8, 2010
Hi Junkieliam, Here it is in a nutshell....I doubt that the word pushing is the right word here...more likely he already knows that's only way this building will get financing. Banks are leery about lending their money until 50%+ units have been sold . You ask what the agent gets out of choosing who they recommend- hopefully a closed deal at the end!!! Right now the banks are looking for verification of funds being used to purchase , verification of income and credit scores (and of course other debts).
In order for the building to get a certificate of occupancy it has to have 15% in contract...so they have reached the minimum

The higher floor the unit is on the higher price you will pay per sf. Why would you need for someelse's contract to fall apart if the building still has 85% vacancy?? Offer what you feel it is worth to you and what you can afford. The rates are around 4.5%-that hasn't happened in 30-40 years!! . What are you paying in rent??I can get you comps per sf... Terry K 718-614-3167 cell or email Therese.Korahais@elliman.com
0 votes
Alma Kee, Agent, Tampa, FL
Thu May 20, 2010
It always bothers me when realtors and buyer use a Price/SF basis to compare properties. It will give you a ballpark idea unless the condos are that have sold in the past 90 days are identical as location, square feet and upgrades. You may want to take a more accurate approach and add and subtract value based on the "extras" one unit has over the other.
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Junkieliam, Home Buyer, Astoria, Queens, NY
Thu May 20, 2010
I've already contacted a few banks and it seems like noone are willing to lend unless there is a 50% occupancy rate. I've reviewed the comps, but since there aren't a lot of new condo buildings in the area, it is hard to gauge the price. There was a condo a block away that sold for around $571 per sq ft. Granted, the condo is on a lower level.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu May 20, 2010
Condos can be difficult to finance, and since you seem uncomfortable with the lender your agent suggested, consider contacting a few of your own qualified loan officers and and go from there. As to the decision to wait or not wait--that decision is entirely yours to make as none of us can say with certainty if pricing will be lowered-- buy when you are comfortable and ready to buy. Have you reviewed comps--recently sold similar units in the immediate area, and if so what do they suggest as a fair price.
0 votes
Alma Kee, Agent, Tampa, FL
Thu May 20, 2010
It's true that financing is very difficult on condos.

Call the bank you do business with and see how they reply.
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