Issue 100 – The Evolving Cycle of Sales

Just like the seasons change, so do sales cycles. This year, we are seeing a vast diversion from the standard norm in certain areas.

In the past, there were usually very distinct cycles for sales. One could expect a natural slowdown during the summer (from Memorial Day — or at least the end of June — to Labor Day) because that is when folks tend to travel, focus on family, and generally relax and unwind.

After Labor Day and the start of the school season, people would resume their searches and get serious about buying and selling property again. We would see an uptick and frenzy of activity, with listing inventory increasing and serious buyers seeking to snatch up a property, whether to live in themselves or for investment purposes.

Then, once the winter holiday season commenced with Thanksgiving, Hanukkah, Christmas, and New Year’s celebrations, the sales cycle would likely dip again, only to become frenzied once more right after the new year.

As during summer, this end-of-year holiday period was traditionally a time for family, travel, social activity, or just plain relaxation, with many putting off buying and selling property for those few weeks.

The post-holiday return to work was when many people learned what their bonuses would — or would not — be. This was also when they might receive a portion of the vested stock, which would determine what they would look to buy and invest in. 

Lately, however, we can throw those scenarios right out the window. There no longer seems to be any standard sales cycle at all; lines have blurred. We are seeing far busier summers in terms of buying and selling, and even during the winter holidays, deals are being pushed through. Still, it is nuanced and specific to different price and size segments.

This is neither good nor bad, but those in the sales market need to be aware that what may have been the norm years ago has now changed. We can no longer expect a complete flatline from Memorial Day to Labor Day. These once-slower turndown times are now times of opportunity.

While it is possible to time sales in the summer “off season” to capture buyers who are looking to snatch up “bargains” by racing in while others are away at play, I am instead telling many sellers to take their listings off the market and bring them back on right after summer — depending of course on their location, price segment, and market type. My rationale is that certain types of buyers will not be in the city during these hot summer months. For that market segment, fall will be far more robust.

Sometimes you can even time sales so that summer is surprisingly positive, but given the continuing high mortgage interest rates, that scenario isn’t playing out for the most part this season. Sure, there are some buyers — anomalies — who need to find a place quickly and prefer to buy instead of rent, especially since they might be able to negotiate a good price based on the seller’s anxiety about the market.

My overall takeaway is that there is no one-size-fits-all way to buy and sell right now. Some sellers may initially feel they want to push on during summer, not wanting to miss a prime opportunity to get eager buyers to their doors, while others will sit out from looking during the summer or winter holiday seasons.

Real Estate timing seems to becoming a customized approach — one that can yield well if time correctly.

Issue 127 – The Price Isn’t the Price

A new calculation is changing what a New York apartment is actually worth. For decades, NYC real estate has been obsessed with price per square foot. However, now we may be entering the era of cost per year.

Consider two apartments of the same size, price, amenities, light, view, and location. If one has $6,000 in carrying costs and the other $11,000, are they really worth the same amount?

Increasingly, I would argue they are not because buyers aren’t simply purchasing apartments anymore. They are purchasing the economics of the buildings they’re in, which are starting to matter enormously. Think: insurance, labor, utilities, repairs, taxes, assessments, energy compliance, staffing, capital improvements, and reserves. While monumentally important, none of these photograph well, but all determine whether an apartment is easy to own — and eventually sell.

We have always understood that certain characteristics affect value: a lower floor trades differently from a higher one, an awkward layout matters, a protected view commands a premium, and poor light equals a discount. However, I contend another discount is related to the aforementioned carrying costs.

The sexiest amenity in New York real estate may soon be a healthy balance sheet. That sounds less exciting than a lap pool, unless you are the one writing the checks. Operating costs in New York have been rising, putting pressure on building budgets and making previously deferred capital projects harder to ignore.

The 2026 New York City Price Index of Operating Costs — which tracks expenses for the city’s rent-stabilized building stock — illustrates the broader pressure. Over the five years through 2026, insurance costs in that index increased more than 80%. Maintenance increased 29%, utilities more than 26%, administrative costs more than 21%, and labor nearly 16%.

Those figures aren’t a direct proxy for every condominium or cooperative in Manhattan. But they illustrate something anyone involved in operating New York buildings already understands: buildings are getting more expensive to run.

One mistake buyers can make is falling in love with the apartment and treating the building as secondary. In New York, you aren’t just buying four walls; you’re buying into a small economy. You’re inheriting its management decisions, staffing structure, physical plant, reserve philosophy, insurance exposure, and capital planning.

A building that deferred maintenance may appear inexpensive today because it hasn’t yet charged owners for the work it needs. That doesn’t necessarily make it inexpensive. It may mean the bill hasn’t arrived yet. Conversely, a building that recently completed an expensive façade project, replaced major mechanical systems, or invested in energy efficiency may initially appear less attractive because owners have already absorbed those costs. We need to consider which building presents the greater risk over the next decade. The answer isn’t always obvious from the monthly maintenance number.

Buyers understandably love low carrying costs, and brokers value them because they make a property easy to market. But low monthly charges deserve as much scrutiny as high ones. A good broker asks: Why are they low? Is the building extraordinarily well managed? Does it have other income? Are the reserves substantial? Or has the board resisted increasing common charges while postponing expensive work?

An important distinction exists between efficient and underfunded. A well-run building with appropriately funded reserves may ultimately be far more economical than one with artificially low monthly charges followed by recurring assessments. It’s not just the number that is meaningful, but the story behind it.

Few words cause more anxiety in a New York transaction than “assessment.” Even here, context matters because not every assessment is a red flag. An assessment financing a necessary capital improvement can actually strengthen the building. A new roof, elevators, façade work, upgraded mechanical systems, or energy improvements may protect long-term value.

The more important questions a sales pro considers are: What is the assessment for? Why didn’t reserves cover the expense? Is it part of a thoughtful capital plan or the latest in a recurring series of emergencies? And, perhaps most importantly, what comes next? A $500 monthly assessment with a clear end date concerns me considerably less than a building with no assessment, minimal reserves, and several million dollars of foreseeable work.

New York’s environmental requirements add another layer of complexity. Local Law 97 places emissions limits on many large buildings and creates increasingly stringent requirements over time. The encouraging news is that the overwhelming majority of covered privately-owned buildings are currently meeting the applicable limits.

But buyers should still understand what their particular building is facing; Has the Board commissioned the appropriate studies? What capital improvements may eventually be required? Has money been allocated? Is compliance incorporated into long-term planning? The concern isn’t whether a building faces a penalty today; it’s whether the building has a credible plan for tomorrow. That, increasingly, is part of due diligence.

New development creates its own version of this problem. Buyers are understandably attracted to pristine buildings with spectacular amenities and, sometimes, surprisingly reasonable initial common charges, but what will the building actually cost to operate when it is fully functioning?

Pools, spas, private dining rooms, screening rooms, landscaped terraces, playrooms, fitness centers, and mechanical systems all require staff, maintenance, and money long after the sales office closes.

The glossy brochure tells you what you’re getting. The budget tells you what you’re buying — both matter.

This conversation also requires nuance when comparing co-ops and condos. A co-op’s maintenance can initially look dramatically higher because it often incorporates expenses that a condo owner pays separately, including the shareholder’s proportionate share of the building’s real estate taxes. A condo may show a lower common-charge number while property taxes sit alongside it.

So, comparing maintenance to common charges without understanding what each includes is meaningless. The correct question isn’t: Which monthly number is lower? It is: What is my total cost of ownership, and what am I receiving in return? I believe strong building economics will increasingly become an amenity in their own right.

Brokers spend an immense amount of time learning how to talk about marble, appliances, ceiling heights, views, and finishes. We should be equally capable of explaining the financial health of the building we’re selling, because that is a big part of valuation.

None of this means price per square foot is irrelevant. It’s still an important metric. But like any metric, it becomes dangerous when used without context.

I’ve spent my career watching New York buyers pay premiums for things that cannot easily be replicated, including light, views, ceiling height, architecture, location, outdoor space, great proportions. But I always add another thing to the list: financial soundness. That may not command the same emotional response when someone walks through the front door. But increasingly, it may command something just as valuable – confidence, which matters in uncertain markets.

For years, we’ve asked buyers how much apartment they can afford. Now we need to start asking them how much building they can afford.  Because in New York, you don’t just buy the apartment — you inherit the economics beneath it.

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