New York City is a big place to sell real estate.
And it’s even bigger than it was before the financial crisis.
The number of homes in New York State is more than double the previous high, and sales have been growing fast, thanks in large part to a surge in foreign buyers.
But while the average price of a home in New England is up 5% over the last year, it’s down 6% in the Big Apple.
And that’s despite an influx of foreign buyers who buy homes for less than their market value.
New York City real estate broker Steve Coruzzi says there’s an upside to selling your home.
“If you are willing to give up your home, you are in a position to make money,” Coruzzis told theScore.
“You have to take a risk.”
New York is the biggest market for foreign buyers, with more than 50% of all homes sold there being sold abroad.
Coruzzes says the real estate industry has taken notice, and is working to address the issue.
“We’ve been working with our partners in New Jersey and the other states to make sure that we’re able to continue to attract a large number of buyers from overseas,” he said.
Coruzzi has seen an uptick in foreign ownership.
In recent years, he’s noticed a surge of new properties being purchased in Manhattan and the Bronx, and he says the number of foreign residents who own homes in the city has skyrocketed.
“It’s a real issue, and I think it’s an issue that needs to be addressed,” he told the Score.
Corazzi says many foreign buyers are buying properties because they’re able the buyer to take advantage of the city’s “unfair” foreign buyer tax.
Foreign buyers are allowed to buy up to $1.3 million in New Yorkers home to make their home taxable, but it only applies to the first $750,000 of the buyer’s taxable income.
Corazis website shows that New York’s foreign buyers tax has a maximum of $2,500 in a single transaction.
And Coruzzia says foreign buyers pay even more if they sell their home.
The tax is especially punitive on the rich and well-connected.
The top one percent of New York residents, for example, pay nearly $1,000 in foreign tax on the value of their home, compared to $500 for the rest of New Yorkers.
Corizis website also shows that in recent years foreign buyers have purchased homes in Queens and Brooklyn, where there are more than 4,000 foreign-owned properties, including some that have sold for more than $1 million.
Corizon, which sells real estate services for foreign residents, says foreign home buyers account for more of the property taxes they pay than any other group of people.
“Most of the foreign homebuyers we deal with are middle class people, people who can afford to pay the property tax,” said Nick Molloy, the company’s chief executive officer.
“But some of them are wealthy people who are moving to New York because they are trying to get their children to go to school and they are moving out of state because they have kids, so they’re looking for opportunities in the big city.”
Corizon has worked to help the New York real estate market attract more foreign buyers through its rental brokerage services, but some agents are concerned about the impact foreign buyers will have on the city.
“A lot of agents have a lot of fear that if foreign buyers come in, they will bring something new into the market,” Molloys says.
“I think it will be very hard for our agents to do their job and to help people find the best deal in the market.”
Coruzzis says he’s been working to change that, offering tips on how to sell a home to a foreign buyer.
He says the biggest lesson he’s learned is that people have different priorities than what they do when buying.
“When I first started out, I just did what I had to do,” he says.
“I took care of my clients, I paid my bills and I went to sleep every night.”CORIZI’S PROBLEMSThe real estate world has a reputation for being an unregulated marketplace.
That’s something Coruzzios is trying to change.
He’s taking his own advice and starting his own company, Coruzzisti, which specializes in helping New Yorkers sell their homes.
The company’s business model is based around selling homes on the secondary market, a way to circumvent the citys foreign buyer taxes.
That means Coruzzins clients can sell their property directly to potential buyers, while the broker helps make the sale.
Coraziis website tells clients how to use the service.
The company tells prospective buyers they can use their broker to help with their taxes, and they can choose between multiple buyers.
Corazis also offers tips on what