One of the best value plays (but spookiest undertakings) in today's real estate market is purchasing a property in need of renovation—a blank slate to create your dream NYC home. Often, these apartments are discounted well beyond the cost to renovate because the construction process can be a haunting maze of surprise obstacles and hard-to-anticipate expenses that scares off many buyers. However, with our expert assistance and strategic planning, you can exorcise these hurdles and take full advantage of one of these bargains.

Let's look at some of the nightmares that a buyer might face:

1. ALTERATION AGREEMENTS

This contract between you and your building generally protects them and your neighbors and spells out your responsibility for any complications that arise from the renovation work you do. Architectural plans and building permits that you have obtained, an outline of the scope of your work, and your contractor's insurance will be reviewed by the building's architect (at your expense of course). But not to fear! The right team, familiar with this hyperlocal process, will be invaluable in seeing you through this ordeal.

2. WAITING GAME 

Some buildings have a limit on how many renovations can occur simultaneously, so if other neighbors are already going under the knife, you might find yourself at the end of a long waitlist, feeling like a bozo. Other building projects that could jump out at you, such as complications with local law 11 facade work, may cause the board to temporarily halt new renovations, which can result in the expense of carrying the vacant, unlivable apartment for much longer than budgeted. Your attorney should focus on the building's specific rules and circumstances during their due diligence, to ensure that you won't hit this snag.

3. INSURANCE SHOCK 

Each building has its own specific requirements for the amount of coverage a contractor must carry, and those requirements have been increasing dramatically in buildings all across the city recently. A building can make this change at any time, even after construction has commenced, and it may become necessary for the owner to pay to increase their renovation team's policy. 

4. KNOW YOUR FAMILIARS

It's not uncommon (but quite lucky) to find that your building staff occasionally works on the side as contractors, and may have assisted with many renovations in the building before.  Since their reputation with residents is so important to their repeat business, in-house builders will likely be even more motivated to keep you satisfied with their work. Even if you bring in an outside crew, a renovation is an important time to overtip the building staff, so that they can become the “greasy wheels” of your project. Regardless of their level of involvement, a super can make or break the harmony of your renovation.

5. WET OVER DRY 

Renovating in a NYC building is freakishly unlike renovating a freestanding home because we all live on top of each other. Floorplan alterations are often severely limited by common plumbing lines and gas risers needing to remain in place. Most buildings abide by wet-over-dry rules, meaning all of the building's bathrooms and kitchens must be vertically aligned to minimize ramifications of leak and plumbing issues. Over the years we have seen some creative workarounds to these limitations, particularly for kitchen expansions, and our team's experience can assist with a successful layout plan

6. THE MYSTERIOUS VANISHING PRECEDENT 

A building's renovation rules can also change at any time, so although a neighbor may have made certain alterations to their apartment in the past (such as adding laundry or air conditioning) it is not a guarantee that you will be allowed to do the same in yours. Nothing is sacred until formal board approval, but we have ways of uncovering clues ahead of time that can help avoid disappointment. 

7. NO ONE WILL SUSPECT A THING

Cosmetic work like painting, refinishing floors, changing tiles or kitchen cabinet doors can fall under a simpler decoration agreement, which will be much quicker and easier to obtain. Depending on the building and your contractor (and how much your super likes you), you may be able to get a LOT of work to fall under this, and that will save you time, money, and a monstrous headache. Things like moving walls or messing with plumbing will definitely require permits and an alteration agreement, but oftentimes even a whole new look and lots of value can be achieved without crossing this line.

8. THE CLOCK IS TICKING

An archaic rule from yesteryear still applies in some buildings, particularly on the east side, allows renovations only during the 3 months between Memorial and Labor Day. According to architect to the stars Lee Stahl of TRH NEW YORK, he is regularly haunted by buildings that put a time limit on the duration of a renovation, and impose hefty penalties for exceeding it - as little as 90 days and as much as $1,000 per day! They are doomed to abide by this and well-chosen contractors are usually the ones to shoulder the responsibility of late fees if they go over, as a term of their contract.

In any significant renovation you will inevitably encounter some kind of jump-scare, but understanding these potential spooks in advance will start you on the right foot and make the whole process more manageable. A knowledgeable agent and skilled renovation team will carefully review your building's alteration process with you before purchasing an apartment so that your transformation from a haunted bargain to a trophy property can be as smooth as possible.