Considerations When Buying A Brooklyn Home
Are you considering buying a Brooklyn home this year? There are many considerations you will need to work through before you are ready to purchase.
First, you need to decide whether purchasing a home is the best move for you at this time. Financially, buying a home can be a brilliant decision, but there are times when it doesn’t make sense.
There are many reasons why you may decide to purchase a home. It may be the right time in your life – both financially and personally – and you may have found a home you love offered at the right price.
Before you start your home search, you need to work with a lender. The lender will pre-qualify you for a mortgage. Your approval is determined by your collective income, financial assets, and debt. Your credit score and debt to income ratio are crucial elements to obtaining a mortgage. This review will help the lender determine the maximum loan amount they can provide to you.
Once you decide if you can afford to purchase a home, you should consider the area.
- Is the location easily accessible for your needs?
- Which neighborhood would you prefer?
- What are the area amenities?
- Do you prefer a walkable neighborhood?
- Is there access to public transportation?
After determining your location preferences, you will need to select your dream Brooklyn home’s desired features.
- Do you prefer a single-family home or condo?
- Would you like a one-story or two-story home?
- How many bedrooms and bathrooms do you need?
- What type of parking do you prefer?
- What size yard would you like?
- How much living space do you need?
When you are ready to start looking for a Brooklyn home, you will need to find a real estate professional who can guide you through the process. We are experiencing an interesting market right now, and having an experienced professional working on your behalf is a definite advantage.
Before buying your Brooklyn home, interview more than one real estate agent. Some questions you should ask hiring are:
- How long have they been a real estate agent?
- Do they work full-time or part-time?
- What is their track record?
- Do they work in the areas you would like to purchase?
- How do you help buyers compete in this market?
Now you can begin your home search. Communicate with your real estate agent your needs and wants for your new Brooklyn home. Be sure to provide your agent with honest feedback after each home you view. This information can help your real estate agent zone in on the right home for you.
When you’re ready to negotiate a price with a seller, work with your real estate agent to understand how to best structure an offer that will be intriguing to the seller. Be sure to review the neighborhood’s current sales prices to determine a fair sales price for the home.
When buying a Brooklyn home, you’ll want to get the best value for your money, which happens during the negotiation phase with the seller. By conducting your research and consulting the realtor, you can be sure to optimize the money you’re spending.
Some tips for creating a good offer in the current market would include:
- Include your pre-approval letter from your lender with your offer.
- You may only have one chance, so present your best offer.
- Consider an above-average earnest money deposit to show your sincerity in purchasing the home.
- Shorten inspection periods if possible.
- Include the seller’s preferred closing date.
- Don’t ask the seller to pay fees that are outside ordinary seller expenses.
- Make your offer as clean and uncomplicated as possible.
We have experienced multiple offers on homes, causing the infamous “bidding wars.” Negotiating in a multiple offer situation can be an emotional time for home buyers. Prepare yourself in advance. Before entering into the “bidding war,” you should determine the highest price you are willing to offer on the home. Setting a not-to-exceed number will help you make better decisions in the heat of the moment.
Review the comparable sales in the area to see the sales prices of similar homes.
Be sure you compare apples to apples; similar square footage, condition, bedrooms, baths, etc. Your real estate agent can help you access the most current information.
Take into consideration how long the home has been on the market. If the house has been on the market for some time, offering a lower price may be a reasonable tactic. If the home has just hit the market, an offer below asking may not interest the seller.
Another determination to keep in mind when determining your maximum offer price is the condition of the home.
Updated homes in good repair will receive higher offers than outdated homes. When evaluating the home’s condition, consider the home’s major components like the roof, foundation, plumbing, electrical, and HVAC system. Will any of these high ticket items need to be addressed sooner rather than later?
Home inspections can also be an area to negotiate.
Learn more about home inspections here. As mentioned previously, you may want to shorten the time frames if possible. The availability of inspectors would need to be confirmed. You may also like to express to the seller you are willing to accept any necessary repair costs to a maximum amount. If the inspections unveiled items that exceeded that amount, you would negotiate with the seller for repairs.
Your lender will most likely require an appraisal on the home.
Appraisers use the most current sales to make their determination of value. In some instances, the appraisal has come in lower than the sales price. Because the demand for homes exceeds the existing inventory of homes, this isn’t surprising. However, you will need to decide if you want to move forward with the purchase if the appraisal comes in low. You may need to put additional cash down to be able to close with a lower appraisal. You would need to consult with your lender to decide how to handle this situation if it arises.
One last thought to ponder when buying a Brooklyn home would be the closing date.
If the seller would need additional time to move, would you be willing to allow them the extra time? It may mean you would need to make some temporary housing arrangements for yourself. But will that be worth it to purchase the Brooklyn home of your dreams?
Making these decisions before entering negotiations will help prevent you from getting caught up in the emotions of winning the “bidding war.” Many buyers are surprised by how emotional this process can become. Entering the negotiation phase with a clear plan will allow you to make the right decisions as necessary.
After the seller receives your offer, the seller will make one of these 3 decisions:
- Accept your offer.
- Counter your offer.
- Reject your offer.
Waiting for a response from the seller can put you on edge. Knowing that you have done your homework to draft the best offer you are willing to make for the property should be comforting.
If the seller counters your offer, you will have the opportunity to negotiate the terms. Being prepared for the negotiations will allow you to make the best decisions.
When your offer is accepted, you will enter the closing phase. Read this blog post to find out more about the closing process.
In these unprecedented times, you need a professional, experienced real estate agent in your corner.
Contact me, Charles D’Alessandro, your Brooklyn Real Estate Agent with Fillmore Real Estate. As a Brooklyn real estate agent with over 30 years of experience, I understand the local market and have helped many when buying a Brooklyn home.
In the event our office is shut down, we are always committed to your safety during the COVID-19 health crisis in compliance with the State of New York public health policies. I can be reached by phone at (718) 253-9500 ext. 1901 or by email at [email protected].
