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Lisa Finks, Lourdes Arencibia and Carolyn Duris, REALTORS on Chicago's North Shore.

Archives for October 2019

Six Must-Haves Needed to Seduce Buyers

October 20, 2019 by Lisa Finks

Always fascinating to see the latest trends out of NYC luxury real estate. If you are looking for new construction in Wilmette or on the North Shore, we have a list of local resources and trends found here.
Front & York in Brooklyn has installed chevron floors, smart-tech thermostats and lots of marble in its Dumbo sales office.
Front & York in Brooklyn has installed chevron floors, smart-tech thermostats and lots of marble in its Dumbo sales office.CreditCreditStefano Ukmar for The New York Times

The High End

A look at the appliances and finishes that developers say will make their new high-style condos stand out from the high-style competition.

Developers have long worked with architects on their luxury buildings, but some years ago they also began hiring top-flight designers to give the interiors the same panache as the exteriors.

Having the likes of Paris Forino, Ryan Korban or Lee Mindel associated with a building became yet another way to brand it as special — and worthy of prices that today can run more than $2,400 a square foot, compared to the norm of $1,500 a square foot, according to a recent Douglas Elliman report.

But while developers hire designers to add a signature style to differentiate their buildings from the competition, it doesn’t always work out that way: The apartments end up having quite a lot in common with others in the same market niche.

“Everybody’s looking at what everybody else is doing,” said Jonathan Miller, the president of Miller Samuel Real Estate Appraisers & Consultants, comparing the phenomenon to the so-called amenities war in which projects try to match one another in the number and lavishness of common spaces. Similarly, an apartment can be “really nice and special and unique — and not dissimilar to the other five places you just looked at,” Mr. Miller said.

So how do you distinguish a high-end apartment from a standard-issue one? Here are some of the materials and finishes — trending, but not always new — that developers are hoping will attract affluent buyers.

Herringbone or Chevron Patterns

Remember dark-stained floors? Today, high-end apartments are more likely to have white oak underfoot — particularly European or French white oak from trees that, yes, grow in France — though it’s probably not solid oak but rather an engineered product with the wood veneer on top.

Often the planks of wood are not lined up next to one another in staggered parallel lines, but laid out in zigzag patterns known as chevron and herringbone.

ImageA marble floor was laid in a chevron pattern at Front & York in Dumbo.
A marble floor was laid in a chevron pattern at Front & York in Dumbo.CreditStefano Ukmar for The New York Times

Although the patterns are slightly different — with chevron, the planks of wood have diagonal, or mitered, ends so as to create a series of neat, arrow-like points, whereas with herringbone the ends are cut at a right angle, for a woven effect — the overall look is similar. The technique can also be used with other flooring materials, including marble, and sometimes appears in bathrooms.

Such floors do require more time and expertise to install, and have a whiff of the intricate parquet that designers sometimes specify for one-off interiors for individual clients. But they can be achievable even when you’re “doing the floors of 100 units in a building,” said Ms. Forino, who selected chevron for the 53-unit 359 Second Avenue, which recently broke ground in Manhattan’s Gramercy neighborhood.

Other designers stick with the standard layout but specify extra-wide wood planks for an industrial-chic look. Whereas planks in most new developments today are three-and-a-quarter inches wide, said Joel Lefkowitz, the executive vice president of Wood Manners, a Spanish-based flooring company, the Daniel Romualdez-designed apartments in 70 Vestry, in TriBeCa, have planks that are seven-and-a-half inches wide. At 111 Leroy, in the West Village, the oak planks are nine inches wide.

Whichever flooring pattern or plank width chosen, the finish of choice is matte, usually achieved with low-gloss polyurethane. “Shiny looks fake,” Mr. Lefkowitz said.

Marble Is Everywhere

The man-made stone — like Caesarstone, Corian and so-called quartz — specified in more moderately priced interiors is certainly durable, but high-end homes are done up in marble. At 40 Bleecker, in NoHo, Mr. Korban employed marble for two-tiered kitchen counters and used “book-matched” pieces (mirror-image slabs laid side by side) on stove hoods, an appliance more commonly associated with utilitarian stainless steel. In bathrooms, marble can appear on practically every surface.

Calacatta, a gray-veined marble quarried in Carrara, Italy, remains the go-to choice. Bianco Dolomiti has its followers, too. “We like it because it is subtle,” said David Mann, the founder of MR Architecture & Décor, who designed the interiors of 111 Murray, in TriBeCa.

As with floors, the highly polished stone of yesteryear has, well, lost its shine. Increasingly, marble is “honed,” which has a soft sheen and is “less showy,” said Nancy Piraquive, a broker at Brown Harris Stevens and former interior designer.

Kitchen Appliances Abound

High-end buildings are piling on warming drawers, built-in coffee machines, double dishwashers, wine refrigerators and more.

Appliances made in America? Not so much. Subzero refrigerators — the status brand from the last development cycle — still make an appearance, as do Viking and Wolf stoves. But today you are more likely to find European brands like Miele, Bosch and Lacanche — with Gaggenau being “the crème de la crème,” said Whitney Kraus, director of architecture and planning for Halstead Development Marketing.

Ms. Kraus said the European brands have a reputation for possessing a “sleeker aesthetic” and being “more high-tech.”

Snob appeal might be involved, too. “There’s something exotic about having a brand that most people haven’t heard of,” Mr. Miller said. “It sounds fancy.”

Mrs. Piraquive of Brown Harris Stevens sees a more sobering reality: Many new developments were designed with international buyers in mind, she said, and these are the brands they know. “Unfortunately,” she added, “those buyers are gone.”

Soaring Ceilings

New York’s prewar buildings typically have nine-and-a-half-foot ceilings. In the postwar era, ceilings dropped to eight-and-half feet. In later years, they began to inch back up in luxury buildings, to nine feet.

Today, 10 is the new nine, and some ceilings are higher. Madison House, the tallest building in NoMad, has ceilings that reach 11 feet in the apartments, which have been designed by Gachot.

High ceilings nibble into a developer’s profits because fewer floors — hence units — can fit in their buildings.

Can a ceiling be too high? Ms. Kraus of Halstead thinks so. Ceilings of 10 to 12 feet make for rooms that are “gracious,” she said. “Beyond that, it’s a waste for everybody.”

An Art Wall

This feature may reflect the emphasis that luxury buildings are placing on art — a major piece of sculpture often installed outside the main entrance or in the lobby — and is based on the assumption that buyers who can afford an apartment in the multiple millions surely also collect paintings and photographs.

The problem has been that many new developments are glassy, offering floor-to-ceiling windows, yes, but leaving precious little wall space for hanging art. Enter the marketing geniuses, who once repackaged slop sinks in basement closets as “pet spas” and have now anointed a swath of unused wall somewhere in an apartment an “art wall” or “gallery.”

“Aren’t we nice?” quipped Mr. Miller. “We gave you a blank wall.”

Smart Tech

When luxury condos cost as much as they do today, the ability to set the temperature of your New York apartment via phone while vacationing on the other side of the globe is a requirement. No need to manually operate curtains or lighting, either.

The marketing team for the Centrale, in East Midtown, a Ceruzzi Properties project with interiors by Champalimaud Design, recommended Nest Learning thermostats for the apartments, said Tariq Mahmood, director of construction for Ceruzzi’s New York division. The devices have occupancy sensors and will turn the heat or air-conditioning on or off based on whether someone is in the room.

“It doesn’t make sense to have manually operated thermostats anymore,” Mr. Mahmood said.

Bathroom Floors Are Toasty

The master bathroom often has radiant heating, and at Parlour, on Fourth Avenue in Park Slope, it’s in the “secondary” bath, too. In the powder room, however, you’re on your own.

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Correction : Oct. 18, 2019

In an earlier version of this story the surname of an interior designer was misspelled. He is Ryan Korban, not Korbin.

A version of this article appears in print on , Section RE , Page 12 of the New York edition with the headline: High-Style Touches Selected for Choosy Buyers. Order Reprints | Today’s Paper | Subscribe

 

Source: Six Must-Haves Needed to Seduce Buyers

Filed Under: Home Decor & Garden

Home Equity and College Aid

October 14, 2019 by Lisa Finks Leave a Comment

Reprinted from the Wall Street Journal

How Home Equity Affects College Aid

The rules vary dramatically between schools on how much of your home equity will be used to calculate an aid package

By

Beth DeCarbo

Updated Oct. 3, 2019 2:52 pm ET

Fall is hunting season across the U.S., a time when high-school seniors target their favorite colleges and their parents aim for financial aid.

One factor to consider when applying: the impact of your home’s equity on financial aid. But prepare yourself. It seemingly takes an advanced degree to calculate eligibility, since formulas vary widely from school to school.

“I wish it weren’t so complicated. I study this day and night,” says Paula Bishop, a college financial-aid adviser in Bellevue, Wash.

Almost all U.S. colleges and universities require financial-aid applicants to fill out the Free Application for Federal Student Aid (FAFSA), which doesn’t ask parents about home equity. However, several hundred schools—many of them elite, private institutions—also require the College Scholarship Service Profile (or CSS Profile), an application created by the College Board for nonfederal financial aid. It asks applicants for the home’s purchase price, purchase year, current value and current debt and determines the home’s equity (value minus debt).

Here’s the catch: Schools that require the CSS Profile handle the home-equity information differently. Boston College, for example, looks at 100% of home equity. Stanford University announced last year that it won’t consider home equity at all. Cornell University will limit home equity to 1½-times the family’s adjusted gross income. So for a household with $800,000 in home equity making $200,000 a year, home equity is capped at $300,000 (200,000 x 1.5).

Bucknell University caps home equity calculations at two times a family’s adjusted gross income. PHOTO: EMILY PAINE/BUCKNELL UNIVERSITY

The school isn’t necessarily expecting parents to tap their home equity to cover their child’s tuition. Instead, the school considers home equity and other assets to determine how much parents can contribute toward college costs. The higher the assets, the more parents are expected to pay. Generally, the parental contribution is calculated at 5% of assets. At Cornell, the family with $300,000 in home equity will be expected to lay out $16,500 a year. Had the “true” home equity of $800,000 been used, the parents would be expected to cover $44,000 in costs a year.

This formula is actually more complex than I describe because schools consider other assets—not just real estate—and a number of other variables, such as the number of siblings attending college simultaneously.

But the bottom line is that the school’s home-equity formula can have an enormous impact on what parents pay—something Ms. Bishop, the financial-aid adviser, learned firsthand. In 2010, her son applied to American University in Washington, D.C., a school that uses the CSS Profile. At the time, her home equity was $700,000, even though the house had been purchased for $400,000. American says that, as a starting point, its policy is to assess 100% of home equity. Ms. Bishop says she initially received an aid package below what she expected. She appealed to the financial-aid office, arguing that her husband wasn’t working at the time and that increased home values in her area skewed the calculations of her ability to pay the parental contribution. As a result, the school agreed to cap her home’s value at two times her household earnings. Using the lower home equity resulted in an extra $6,000 in financial aid.

The University of Virginia, Charlottesville, Va., does not take home equity into account when computing financial aid for students. PHOTO: UNIVERSITY OF VIRGINIA

Real-estate holdings can affect financial-aid applications in other ways. First, unlike a primary residence, vacation homes are counted as an asset reported in both the FAFSA and CSS Profile applications. The same goes for rental properties—even if it is an apartment inside the family home leased to a nonfamily member.

If an investment property or second home is sold before applying for financial aid, the capital gains may be considered an asset if reported on a tax return and counted as income.

Also, when borrowing against your home, avoid a home-equity loan because the unspent proceeds are counted as an asset, says Julie Gross, a vice president with College Financial Consultants in Livingston, N.J. Instead, she recommends a home-equity line of credit (HELOC), which is the ability to borrow against your home.

A HELOC may also be a smart option for parents who need financing for their child’s education. Currently, HELOC rates are about 5.5% with no or low application fees, according to Bankrate.com.

By comparison, a college PLUS loan, which is a federal loan offered to parents for education expenses, charges about 7% to 8% interest with application fees up to 4% of the total loan.

If parents need to pay down credit cards or make home improvements, a HELOC actually improves their chances of getting financial aid because the line of credit lowers their home equity.

Tips For Applicants

Get the formula: Call the school’s financial-aid office and ask how it calculates home equity. Policies change, so confirm the formula early in the process.

Get an estimate: For a rough estimate of college costs, use the Net Price Calculator on schools’ websites.

Don’t overinflate home value: A high estimate can hurt your chances of qualifying for aid. Use home values based on comparable—and current—real-estate listings in your neighborhood.

Appeal the decision: Contact the financial-aid office and ask if there is a form or process for appeals. Generally, you write a letter explaining your circumstances—a job loss or medical condition—that underscore the need for more aid.

Corrections & Amplifications
Julie Gross is a college-aid adviser in Livingston, N.J. An earlier version of this article incorrectly called the city Livingstone. In the chart, Bucknell University is located in Lewisburg, Pa., not Lewiston, Pa., and Lewis & Clark College caps home equity at 2-times adjusted gross income, not 2.4 times adjusted-gross income. (10/3/19 and 10/8/19)

 

Filed Under: Home Values

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LISA FINKS, LOURDES ARENCIBIA & CAROLYN DURIS ARE REAL ESTATE AGENTS AFFILIATED WITH COMPASS, A LICENSED REAL ESTATE BROKER WITH A PRINCIPAL OFFICE IN CHICAGO, IL, AND ABIDE BY ALL APPLICABLE EQUAL HOUSING OPPORTUNITY LAWS. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATIONAL PURPOSES ONLY. INFORMATION IS COMPILED FROM SOURCES DEEMED RELIABLE BUT IS SUBJECT TO ERRORS, OMISSIONS, CHANGES IN PRICE, CONDITION, SALE, OR WITHDRAWAL WITHOUT NOTICE. NO STATEMENT IS MADE AS TO ACCURACY OF ANY DESCRIPTION. ALL MEASUREMENTS AND SQUARE FOOTAGES ARE APPROXIMATE. THIS IS NOT INTENDED TO SOLICIT PROPERTY ALREADY LISTED. NOTHING HEREIN SHALL BE CONSTRUED AS LEGAL, ACCOUNTING OR OTHER PROFESSIONAL ADVICE OUTSIDE THE REALM OF REAL ESTATE BROKERAGE.