Th e world has gone crazy. Th e stock market has become a sea of uncertainty and no one knows what to make of anything anymore. Th e 3rd quarter numbers indicated the fi rst price drop in a long time and it is fair to say that Manhattan is fi nally feeling the eff ects, even if it took the entire world to feel those eff ects before us. So despite an assumed “wait and see” attitude, the reality in Manhattan is that deals are still getting done and there is a lot of opportunity. Th is is still Manhattan, the greatest city in the world, and people still must live here.

So if you need to sell, how do you get at the real buyers who need to purchase something now while getting a few others off the fence?

Th e answer is to create value. Th e one concept that holds true in any market is that the real value of an asset is not a

listed/asking price; it is the price that someone is willing to actually pay. Th e listing price is simply a marketing tool that will determine your time on the market. As inventory rises (and it has), if you need to sell quickly one must create a sense of urgency in the mind of buyers to forgo the other listed apartments and deal with yours because it is “such a good deal.” Th is drives traffi c up and in turn, off ers. Th e more off ers you have (at any level), the better sense of what the market price is at that time. So create the value through fi nancial marketing. Price improvements, seller concessions, mortgage rate buy downs, broker incentives; all of this will drive traffi c up, leave a lasting memory in the buyer’s mind and thus maximize the potential for more off ers, minimizing your long-term exposure to the inevitable fl uctuations that will occur in the market.

If you do the math and factor in the cost of advertising, carrying charges, etc. with a 3-6 month time on the market and the potential for market fl uctuation vs. adjusting a listing price or adding a concession to get the apartment sold now, I would guarantee that selling quickly will be your best bet in most situations.

For more examples of this or how these pricing strategies relate to your apartment, feel free to contact us for a free market evaluation.

Wesley StantonExecutive Vice PresidentCentury 21 NYC

THE S&TREALTY REPORT

Presented by:

November 2008

Pricing Tips for Real Sellers

Th e Current Financial CrisisHow has, or will, the current fi nancial crisis in America aff ect the lending market? Merrill was bought by Bank of America, Wachovia was bought by Wells Fargo; Lehman is gone. AIG and Washington Mutual nearly followed suit. A $700 billion economic bailout plan has just been approved. We’re experiencing unprecedented market fl uctuations, everyone is in a holding plan and we’re not sure what and when it’s going to end. So, what’s happening with the banks?Mortgages everywhere around the world have dropped the cost to borrow by .500 point. One of the large coop portfolio lenders halted jumbo loans. It basically ran out of money. Citibank terminated 90% of their brokers and laid off wholesale reps. Luckily my company made the cut. Chevy Chase no longer has wholesale reps. I

note that Fannie Mae has upped the hit of .500% point add-on to the Jumbo Agency to a full point. Jumbo Agency is the new loan amount between $417K and $729K, yet this is set to expire in December 2008. Th ere is talk that the conforming rate will get raised to $600,000; a push from the government to push sales. We are seeing the new tax incentives issued by the government to entice us to purchase real property with deductions of $500 to $1000 to homeowners who don’t itemize deductions on their tax returns. If you’re buying a home for the fi rst time between April 9th 2008 and July 1st 2009 you’d also receive up to $7,500.00 in tax credit. Th at’s a great incentive to buy now.Hope for homeowners = Helps homeowners that are struggling to make payments on

high interest.Mortgages = Contact the bank and change the loan to a government backed 30 year fi xed.Counseling = Th ose tight on cash may receive free pre-foreclosure fi nancial counseling and legal services. Rates = Th ey dipped as low as 5.625% for approximately 10 days, then bounced back to the 6.00% - 6.125% range.

Julie TeitelSenior Vice PresidentGuardHill Financial Corp.

The S&T Realty Report November 2008

Sales50 East End Avenue, Apt. 4BThis wonderful CONDO studio apartment offers tremendous light and the perfect getaway from all the hustle and bustle. Newly renovated with beautiful hard wood floors and a tremendous marble bathroom with Kohler sink/toilet complement two oversized windows with terrific eastern exposure filling the apartment with sunshine and a great view. Great space for the price, two closets and with a quick and easy application process, you can be moved in a flash!

$375,000CondoStudio / 1 BathCC: $247

245 East 87th Street, Apt. 9DWonderfully large 850sf one bedroom. Enjoy your very own terrace, a massive living room with a breakfast nook, a custom chef’s kitchen, Subzero fridge, Viking Stove and a GE dishwasher & oven. The gorgeous Italian marble and stone bathroom is right off a fantastic dressing area with a large walk in closet and boasts a Jacuzzi tub along with custom stainless steel fixtures. Also features a king sized bedroom, sweeping city views, 5 large closets as well as central A/C. This full service doorman building allows washer & dryer units in the apartment, is only steps to the 86th street express stop, has a gorgeous marble lobby, laundry room, garage, bike room and a roof deck and has a standardized monthly charge for electricity allowing for unlimited use.

$650,000Co-op1 Bedroom / 1 BathMaintenance: $1,223

212 East 47th Street, Apt. 20HThis wonderful 20th floor apartment features tremendous southern city views from its private terrace! Enjoy a large chef ’s kitchen with a dishwasher and breakfast bar, floor to ceiling windows, gorgeous hardwood floors, and tons of closet space!Housed in a fantastic full service doorman building, you will enjoy all the amenities one could want including a fitness center, laundry room, roof deck and a garage. Additionally being only moments to Grand Central and right in the heart of Midtown provides for convenient access to everything the city has to offer!

$649,000Condo1 Bed / 1 BathCC: $537

The S&T Realty Report November 2008

Sales320 East 86th Street, Apt. 3DThis tremendous designer apartment has been totally renovated and features California closets, French doors, 10+ foot ceilings and windows in every room. With a breakfast bar, tons of cabinet and storage space plus branded appliances, this is perfect for a professional chef. All of this is housed in a magnificently maintained elevator building located only steps to the 86th street express subway station. Building amenities include laundry, video security and a gorgeous landscaped roof deck! This wonderfully reasonable co-op board is financially solid, allows pied-a-terres, co-purchasing, renting (with board approval) and requires only 10% down!

$570,000Co-op1 Bed / 1 BathMaintenance: $671

320 East 86th Street, Apt. 4CThis tremendous loft like 1 bedroom boasts 10’ ceilings, a wonderful new bathroom and a large living room with a dining area perfect for entertaining. Enjoy 3 closets, great light, a huge kitchen with a dishwasher and a wonderful spacious ambiance. All of this is housed in a magnificently maintained elevator building located only steps to the 86th street express subway station. Building amenities include laundry, video security and a gorgeous landscaped roof deck! THIS WONDERFULLY REASONABLE BOARD is financially solid, allows pied-a-terres, co-purchasing, renting (with board approval) and requires only 10% down!

$519,000Co-op1 bed / 1 BathMaintenance: $658

435 East 85th Street, Apt. 4IThis sunny jumbo studio is on the top floor of a tremendously maintained elevator building on a gorgeous tree lined block only moments to the 86th Street Express Subway Station, Carl Schurz Park, great restaurants and shopping. Perfect for a pied-a-terre or a starter apartment, enjoy a spacious layout with two large closets, space for a dining area, great light, a separate kitchen, hardwood floors and a refinished bathroom with a skylight. Housed in a fantastic elevator co-op, the building features new laundry facilities, storage in the basement, a common garden, a bike room, recently renovated hallways, a new video security system and a responsive live-in super that accepts packages.

$335,000Co-opStudio / 1 BathMaintenance: $521

The S&T Realty Report November 2008

Mortgage Rates Loans over $417,000

40 year - Fixed Rate 6.750% __________________________________30 Year - Fixed Rate 6.500%*__________________________________15 Year - Fixed Rate 6.125%* __________________________________7 Year - ARM Rate 5.875%* __________________________________5 Year - ARM Rate 5.625%*__________________________________3 Year - ARM Rate 5.500%*

Loans under $417,000

40 years - Fixed Rate 6.625% ________________________________30 Year - Fixed Rate 6.250%*________________________________15 Year Rate 6.125%* ________________________________7 Year - ARM Rate 5.875%* ________________________________5 Year - ARM Rate 5.625%*________________________________3 Year - ARM Rate 5.500%*

Wesley StantonExecutive Vice President(212) 784-2107wstanton@c21nyc.com

CENTURY 21 NYC575 Madison Avenue, 7th FloorNew York, NY 10022

Julie TeitelSenior Vice President(646) 519-7529jteitel@guardhill.com

GuardHill Financial Corporation950 Third Avenue, 24th FloorNew York, NY 10022

Studio Alcove Studio 1 Bedroom 2 Bedrooms 3 Bedrooms 4+ BedroomsAverage Listed Price $551,374 $531,905 $861,506 $1,684,481 $3,269,971 $7,390,921Median Listed Price $523,750 $511,750 $804,750 $1,591,250 $2,978,750 $5,832,500Number of Properties Sold 54 34 301 196 98 16Listings Taken Off Market 54 18 265 225 82 62New Listings 105 70 456 383 137 62Contracts Signed 55 29 181 137 50 12Listing Inventory 842 469 3590 3150 1354 585Average Price per SF $1,009 $948 $1,051 $1,250 $1,620 $2,128Listings with Price Drops 113 114 668 594 213 92

Date range: October 7, 2008 through November 4, 2008

DisclaimerThis report is based on data collected from landlords, real estate agents and brokers, developers and other public sources. All material presented herein is intended for information purposes only and has been compiled from sources deemed reliable. Though information is believed to be correct, it is presented subject to errors, omissions, changes or withdrawal without notice. CENTURY 21 NYC and On-Line Residential, Inc assumes no responsibility for inaccuracies in the information presented.

Manhattan Market Data

All rate and programs are subject to credit and lender approval. Not all applicants may qualify for these terms/rates. Not all features available for all products. Advertised rates are subject to change at any time without notice and are for new applicants only.