Q & A with Dottie Herman

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Q1 - I am moving to New York City and I am going to need to find an apartment. What do we need to know about renting or buying in co-op? Versus a condo?

A - Subletting in co-ops is generally discouraged. Co-ops that do permit subletting often limit the lease terms and will ask the prospective tenant to submit a lease application, which requires full financial disclosure, references, rental history and often a personal interview.

Condo leasing, on the other hand, is an accepted part of the condo's policies and procedures. While the process does require financial disclosure, there is generally no personal interview.

There are application fees with both types of properties, as well as other associated fees such as credit check fees, move-in and move-out fees, and so on. Often, in both co-ops and condos, certain policies may apply to purchasers only, and do not apply to renters. It is best to check each rental opportunity to ascertain whether there are any special or unique rules that apply to renters, and might affect your decision-making process. Additionally, it is always advisable to have any rental lease agreement reviewed by qualified legal counsel prior to your entering into rental term.

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Q2 - I am going to buy a home and I know how important credit is. I heard there are different types of credit, and I am wondering what those are.

A - Revolving credit - is usually credit that you can choose to pay a minimal amount and decide how much you are going to charge (up to the limit).  This includes credit cards, overdraft on a checking account, lines of credit, and some home equity lines.

Installment credit - accounts that require a set payment every month (does not include mortgages).  These accounts include student loans and car leases or loans.

Mortgages - are loans used for purchasing real estate.

Public records - include tax liens, judgments, and bankruptcies

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Q3 - I own a condo that needs a number of updates. If I should have to sell without having any work done, what would be a better tactic to present to the buyer:  offer a credit at closing or drop the asking price?

A - I think the price is key today. You should look at properties that are similar and in the same area that have been redone. Once you see how they are priced, discount your property accordingly.  This is my general assessment of how today's real estate market is functioning. I suggest using a licensed real estate agent to help you make decisions relating to the marketing and pricing of your apartment.  We'd be happy to suggest one to you if you have not already retained such services.

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Q4 - I'm currently renting an apartment and want to know how would i know if i'm ready to buy a home?

A - You can find out by asking yourself some questions:

• Do I have a steady source of income (usually a job)? Have I been employed on a regular basis for the last 2-3 years? Is my current income reliable?
• Do I have a good record of paying my bills?
• Do I have few outstanding long-term debts, like car payments?
• Do I have money saved for a down payment?
• Do I have the ability to pay a mortgage every month, plus additional costs?

If you can answer "yes" to these questions, you are probably ready to buy your own home.

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If you have a real estate question for Dottie, please send it to; Reporters@WorldPropertyChannel.com