Archive for the ‘Best Time to Buy in Brooklyn’ Category

10 Reasons Why House Hunting in the Fall is a Wise Move

Friday, September 30th, 2016

House huntingIt’s a fact: Home sales heat up in the spring and summer and cool down in the fall, every year. By November, after the leaves have changed, people turn their focus from real estate to the holidays. House hunting slows down to a crawl, if anything. And that’s why now may very well be the best time to begin your hunt for a home.

 10 reasons why house hunting in the fall is a wise move

  1. Sellers are more motivated

More often than not, homes are listed when the real estate season is at its peak in the spring and summer. If a seller’s home is still on the market in the fall or winter, they will most likely be very eager to close on it. When owners are more motivated to close, owners may be more open to negotiating and making a deal.

  1. Buyers have more time to make decisions carefully

House bidding wars require fast thinking and fast action. When there are fewer buyers house hunting, the competition for properties is lower. Lower competition allows buyers to take full advantage of the slower pace and do more comparison shopping.  It gives them more time to make decisions carefully.

  1. Moving dates are more flexible

When you’re not involved in home bidding wars with other buyers, the power is in your corner, lots of corners. Need an earlier or later closing date? Ask the seller to adjust their move-out date to better fit your schedule.

  1. Lenders may be more willing to offer favorable rates

Business lulls and holiday bills happen for mortgage lenders, too, and they may be willing to offer slightly better rates in order to close a deal. Take the time to shop around. Negotiate on interest, points, or down payments. It’s possible you may negotiate numbers in your favor.

  1. You’ll see more of what the neighborhood is really like

Many neighbors are gone on vacation during late spring and through the summer months. Neighborhoods can feel empty and a little lifeless. But in late August when school starts again, so does neighborhood activity. Fall is a great time to visit neighborhoods and their schools and get a feel for what the neighborhood is really like.

  1. Inclement weather may be more revealing

Curb appeal is at its best on a gorgeous sunny day in the spring. But rain-soaked November days or a frigid January days during the off-season will allow you to see a truer picture of how a house is holding up under inclement weather.

  1. More of the real story about a home is easy to see

House hunting when the trees have dropped their leaves and the flowers are spent can be very telling.  Landscaping can camouflage peeling paint, a worn roof, cracks in the foundation and other issues with the home’s exterior. Exterior issues will be plain as day during the slow season.

  1. Contractors, movers, house painters and others are more available

The off-season is a slow season for handyman service providers, too. When you buy a home in the off-season, you’re apt to get things fixed quicker and for a better price.

  1. It’s the perfect time for more sales on new things for the new house

You may not have thought of this benefit of house hunting during the slow season. Sales are fantastic after the holidays just before spring! Vendors may have everything from a new fridge to a new rug drastically reduced.

  1. Agents are more attentive

The slowest time of year for real estate agents is September through January. If you’re house hunting during the slowest time of year, they’ll be willing to go the extra mile to get your business and keep it. They’ll search for the right home and help you get the best deal with more fervor than usual.

 

House hunting in the fall is wise. Contact Charles D’Alessandro, your Brooklyn real estate agent with Fillmore Real Estate at (718) 253-9700 ext. 206 or email charles@brooklynrealestatesales.com. He’ll go the extra mile to keep your business and get the best deal on a home that’s just right for you.

Interest Rates, Credit Scores And Down Payments – Should I?

Friday, January 15th, 2016
Interest rates

Rising interest rates affect buyers and sellers differently. Find out how!

Interest rates are on the rise. Rates fell from their highest in over five months last week, but home mortgage lending rates are up again this week. They rose from 4.15% to 4.18%. That’s not all that much higher than the 4% rates on a 30-year mortgage a year ago, but the upward path concerns lenders. How does a rise in interest rates affect you as a buyer? How does it affect you as a seller?

How does a rise in interest rates affect you as a homebuyer?

Buying a house involves a large initial expense. It also involves knowing what you’re getting into long-term before you buy. Knowing what you’re getting into before you buy will help you avoid the disaster of foreclosure.

Do yourself a favor and open this free amortization schedule calculator. Plug in the amount you’ll need to borrow and the interest rate at 4%. Repeat what you just plugged into the amortization schedule calculator using the same amount you’ll need to borrow, but plug in an interest rate of 4.15%. See what a difference an increase in interest rates can make in a monthly mortgage payment?

Listed below, are monthly payments for 15-year and 30-year $100,000 mortgages at different interest rates, not including any fees, like private mortgage insurance or property taxes. Notice how a 1% increase in interest rates from 4% to 5% on a 30-year mortgage results in a 13% increase in monthly payments. A 2% increase results in an incredible 26% increase in monthly payments!

Term4% Interest4.5% Interest5% Interest6% Interest
15-Year Mortgage$740$765$791$844
30-Year Mortgage$477$507$537$600

Source data: Google mortgage calculator

A note on adjustable mortgages here. Don’t fall into the trap of an adjustable mortgage. Adjustable mortgages make it seem like you can afford a mortgage when you really can’t. If you need creative financing in order to afford a house, you can’t afford it. Don’t do it.

Is now a good time to buy?

Answer the following questions to help you determine whether or not now is a good time to buy a home:

  • Is your credit score above 720? A mortgage lender will give you a loan and determine the rate based on your credit score. If your credit score is low, you can expect a higher interest rate. It would be wise to wait to buy a home until you improve your credit score. While you are waiting:
    • Pay down debt
    • Remove inaccuracies from your credit report
    • Make payments on time every month
    • Avoid applying for new credit cards or new loans
  • Do you have money set aside for a down payment? Putting down at least 20% of the cost of the home is ideal. This amount down will help you avoid having to pay private mortgage insurance (PMI). Since PMI protects the bank’s investment in case you default on the loan, it is a huge waste of money.
  • Do you have money set aside to pay the closing costs? The closing costs associated with your mortgage can total several thousand dollars.
  • What are the current interest rates? If interest rates are low, it may be a good time to buy.
  • What are the experts saying about property values? Accurately predicting what interest rates or property values will do can be tough to do. Ask an expert if property values are on the rise, or if they are likely to fall. If property values are falling, it may be a good time to wait on buying a home.
  • Do you plan on staying put for three to five years, two at the least? If not, refrain from buying. Now is not the time to buy a home.
  • Do you have an emergency fund? This is important! If you don’t have at least six months’ worth of your current income tucked away in case of emergency, you should wait to buy a home. You need to have money in the bank to pay your mortgage if a layoff or major medical problem were to happen.
  • when determining whether you should buy a house now or wait until the future. If you have recently changed jobs, if you are thinking about changing jobs, or if you are expecting any major changes to your income, it is not a good idea to buy a house until you are on more solid footing. Banks and mortgage lenders typically require you to have been with your employer for at least a year or two before they will consider you for a loan.

Are you truly ready to buy?

How does a rise in interest rates affect you as the seller?

When interest rates rise, even just a little, home prices and home values lower. This happens because higher interest rates reduce a buyer’s ability to pay for a home. Higher interest rates make financing a home purchase a lot more expensive. Low interest rates boost home prices because more buyers enter the market

Is now a good time to sell?

The answer to this question is, “Yes!” Higher interest rates equate to lower borrowing power for the buyer, so the sooner you sell, the better. Interest rates are creeping upward!

Read these blog posts for other insights on why you should consider buying or selling your home:

Whether buying or selling a home, start thinking about how a rise in interest rates will impact you in the future.

Make sure you consider the facts of this important financial decision with your head, not your emotions. You don’t want to struggle making your mortgage payments to find yourself in foreclosure down the road.

Call me, Charles D’Alessandro, your Brooklyn real estate agent with Fillmore Real Estate at (718) 253-9600 ext. 206 or send your questions to charles@brooklynrealestatesales.com. I can help you determine whether or not now is a good time to buy or sell your home.

Now Is The Best Time To Buy or Sell In Brooklyn, Or Is It?

Friday, June 19th, 2015
buy or sell

Now is the best time to buy or sell in Brooklyn!

“I’d like to buy a new home, but is now the best time to buy?” “I’d like to sell my home, but is now the best time to sell?” Is there an urgency to buy or sell in 2015? The answer to each of these questions is, “YES!” Here’s why …

Now is the best time to buy in Brooklyn because:

  1. Waiting could cost you thousands. “With interest rates and home prices expected to climb in the next year, the financial penalties of delaying or forgoing a home purchase in today’s market have become very steep, said Jonathan Smoke, chief economist for realtor.com®. View the realtor.com® Opportunity Cost Report market list here:  Opportunity Cost Report
  2. Interest rates are projected to increase in the next 12 months. Your ability to build substantial long-term wealth is decreasing. Each time interest rates increase, monthly mortgage payment amounts increase decreasing your ability to build long-term wealth. A little increase in interest rates can make a huge impact on your monthly budget.
  3. Home prices are expected to continue to rise in the next year.
  4. Homeownership has financial benefits. Buying a home delivers a financial benefit well over$100,000 over a 30-year period. Get the projected wealth increase for almost 100 cities here.

The cost of living is increasing. The costs of gas, taxes, insurance, etc., everything is going up.  You only make so much. You can only qualify for so much. Find out how much house you can actually afford. Can you really afford to live in the neighborhood you want to live in? Find out. Also, find out how rising interest rates will affect your ability to build wealth long-term. Take time to do the math. Reach out to a mortgage specialist. You can calculate your monthly mortgage payments using this online calculator.

Buyers, don’t get boxed out because you are waiting. You’ll miss out on significant, long-term financial gains if you choose to stand on the sidelines waiting. The longer you wait, the farther those financial benefits will distance themselves from you. Get started on the road to homeownership now!

Now is the best time to sell in Brooklyn because:

  1. Job growth is increasing. More than 3 million jobs have been created in the past year. As job growth increases, demand follows.
  2. Homes are selling more quickly.
  3. The supply of houses is down making it predominantly a seller’s market. A tight inventory puts the ball in the sellers’ court driving home prices upward helping you build additional equity in your home.
  4. There are fewer cash buyers. The increase in home prices has slowed from its recent growth. Moderate increases are still expected this year, but with fewer cash buyers.
  5. Interest rates are heading upwards. Since mortgage rates are still low, more buyers are expected to move into the market in the not-too-distant future because of the projected increase in interest rates.
  6. Rents are rising, too. Rising rental costs are encouraging renters to take the plunge into home ownership.

It’s a great market for sellers! Here are a few more reasons to consider listing your home in today’s sellers’ market:

If you’ve built up equity in your home, now is a good time to sell. Find out how much equity you’ve built up in your home. Ask your Brooklyn real estate agent, Charles D’Alessandro, to run a free comparative market analysis (CMA) to find out what the approximate value of your home is.

It’s worth selling your home if you’ve built up enough equity to provide 20% equity to purchase a new home. A down payment of 20% or more will keep private mortgage insurance (PMI) down.

If you’ve paid off all your non-mortgage debt and have saved 3-6 months of monthly expenses in an emergency fun, now is a good time to sell. It’s a good time to look for a new home that may be more accommodating to your current lifestyle. Read more about reasons for considering selling right here.

Now is a great time to buy or sell in Brooklyn. Take a good hard look at your finances. Then, partner with your Brooklyn real estate agent,  Charles D’Alessandro with Fillmore Real Estate. He puts service before a sale. He knows how to get things done when it’s time to sell your home or buy a new home that is better suited to your current needs. Call at (718) 253-9600 ext 206 or email charles@brooklynrealestatesales.com.

Sources:

http://rismedia.com

https://www.dailyworth.com

http://realtormag.realtor.org

http://money.cnn.com

http://www.daveramsey.com

http://money.usnews.com