For most people, the American Dream of homeownership usually includes the white picket fence in front, a backyard where kids can play, a peaceful suburban locale, two-car garage and more. For the team of agents who work out of the three Coldwell Banker Warburg offices in New York City, that’s all out the high-rise window.
Representing almost exclusively co-op buyers in Manhattan is practically a different profession than those whose clients seek suburban houses around the country. For the New York City team, that means being able to understand and relay much more precise information about the various properties on the market. First and foremost is the fact that while new buyers will own their units, they will be co-owners of the building, with as few as a couple of others in a brownstone to as many as hundreds for a tower with dozens of floors.
That aspect is almost always understood by those seeking to buy. Other specifics, wants and desires and acceptances must be discussed in advance in order to get to a successful closing.
Created in 2021 from the alliance of two companies, New York City boutique brokerage Warburg Realty and international firm Coldwell Banker, the new entity brought together the deep local knowledge of the former with the vast reach and worldwide recognition of the latter. At its inception, CB Warburg, now with over 100 brokers and agents, became the first firm ever to be fully branded under Coldwell Banker Global Luxury.
We posed the following questions to Warburg professionals about what it’s like to work in the New York City residential real estate market.
What do you discuss with new clients regarding their expectations as they search to buy a co-op in the city, and when?
Aaron Tetzlaff (AT): I believe in setting realistic expectations from the start. Finding a home, especially in New York City, is often about balancing wants and needs. I frame compromise as part of the strategy, not a setback. It’s about prioritizing what will have the greatest impact on their daily life and long-term happiness. By having these conversations early, I can guide clients toward decisions that align with their goals while keeping the process as smooth and stress-free as possible. When I work with new clients, especially first-time homebuyers, it can be difficult to assess where and when to make compromises in order to find the right home. In my former career as an interior designer, we would often have to navigate this exact type of situation with clients where we have to assess how much of the vision is achievable and to what extent within their given budget.
Jennifer Roberts (JR): When I initially meet with buyers, I ask them what is on their wish list. While I don’t want to deflate their dream, I mention that no matter one’s price point, everyone must compromise. I like to relay the story about one of my buyers in the $8 million price range who really wanted a prewar Fifth Avenue home facing Central Park. Her compromise was that she bought a home that had most of the features on her list, but it was a postwar home. I don’t believe it’s negative to bring up having to compromise, but view it as a necessary conversation to have in order to be upfront as to what’s realistic at one’s price point.
Sarkie Ampim (SA): I like to explain to the client that they are not compromising, they are simply prioritizing some things over others. Compromising has a negative connotation to it. It’s important to inform them at the beginning stages that the New York City market doesn’t always give exactly what you’re looking for and that it’s common to give up one thing for another. Although it still takes them some time to wrap their mind around it, this usually offsets the frustration later.
Rashi Malhotra: I bring it up when the timing feels right. I don’t start with it because it can come across as a negative before they’ve even had a chance to explore. But after we’ve seen a few places and they’ve had a bit of a reality check, that’s when I bring it into the conversation. By then they’re in a better place to absorb the information and understand that some compromises might be part of the process.
Which features do buyers seek most when searching for a co-op, and which ones are they more likely to let go of?
Bill Kowalczuk: The three big areas with clients are price, size and location. If location is a top priority, I let them know they may have to spend a little more than they wanted or decide on something a bit smaller. If they are really bound by price, they may have to budge on the location and size. It’s not that every client has to compromise, but 50% of the time the client will have to either go a bit over budget, decide on living in something a little smaller or living without the extra bathroom they wanted. They also might have to live outside a desired location because the price and size they want are of utmost importance. I always tell them to think about it, and if they have to, pick the one (price, size, location) they are willing to give up.
Monisha Rana: I tell my clients that no matter what their budget is, there’s always a compromise, whether it be the neighborhood, size, ceiling heights, building amenities, etc. The list goes on. Nothing is perfect. In New York City, you aren’t building your house, you’re moving into a space and then molding it to be your home. Typically, I find that we start with the wish list and see what the inventory looks like. Sometimes clients think they know what they want, but once they see what the inventory looks like, their wants and needs change or evolve based on availability. I always ask what are the things they can’t live without. For example, many people say they don’t want to renovate, but then they find the perfect bones of a home in the exact neighborhood they want and realize that what’s inside can be changed and customized to their needs.
AT: The top three compromises people will make are location versus square footage, brand new versus historic character and price versus amenities/features.
- Location versus square footage. People will pay a premium and sacrifice square footage to be in their desired location.
- Brand new versus historic character. I see this on both ends of the spectrum. Buyer clients will either place their spending priority on co-ops with brand-new, top-of-the-line appliances and finishes, or equally, other buyer clients are willing to spend more in order to secure a place with high ceilings, French doors, fireplace mantles and original woodwork.
- Price versus amenities/features. Especially for first-time homebuyers, being price conscious is a major consideration. Occasionally someone spends more on less square footage in a building with great amenities, but more often than not, clients purchase co-ops with the most square footage. While the building’s management company can reduce the quality of service for amenities, square footage is pretty much set.
JR: In New York City, people compromise on location, condition and outdoor space. They may want some type of personal outdoor space but realize it may eat into their interior space and decide to forego a balcony or terrace, perhaps settling for a common roof deck.
SA: Clients have realized that sometimes for more space they need to give up on their ideal neighborhood. If they want nicer amenities such as in-unit laundry, outdoor space and a doorman, then they most likely need to increase their budget or come to terms with the fact that they won’t find a unit with all these things. I make sure to not let my clients feel as though they’re compromising because it can make them feel like they’re settling. My goal is to help them feel good about their decision. Sometimes inconveniences lead to nice surprises where a client ends up liking a neighborhood they originally overlooked.
