Buying or Selling a home in the Brooklyn Real Estate market can be a complicated process. Truly it takes a village of people for the purpose of completing just one home sale.

Wikipedia explains the phrase “It takes a village to raise a child” as an African proverb. It means an entire community of people must interact with children to experience and grow in a safe and healthy environment.

The phrase “It Takes a Village” has been adapted over the years for other references. In fact, it is a great explanation of what the home buying and selling experience is like in the Brooklyn Real Estate Market.

How many different parties do you think are involved in one real estate transaction? You may find it surprising. Let’s take a look.

SELLER

First, you need to find someone ready to sell their home. We often hear the term “Motivated Seller.” What would make a homeowner a “motivated seller?” Motivation to sell a home can come for many reasons.

When a buyer hears the seller is motivated, it may trigger many thoughts.

• There is room to negotiate the price.
• The owner may be open to making concessions to consummate the sale.
• There are material defects to the home or property that the seller doesn’t want to address.
• The home is near foreclosure.
• The seller is ready to take the home off the market and wants to see any offer.
• The seller is in a financial bind.
• The owner MUST sell now.

Determination, not desperation, may be what motivates a seller.

There are many reasons a seller would want to sell a property that is not related to the desperation thinking above.

• Job relocation
• Downsizing
• Upsizing
• Retiring to a new location
• Divorce
• Settle an estate

Knowing the seller’s motivation would be an advantage in negotiations. However, you may or may not understand the seller’s reason for selling when you place your offer. 

BUYER

Next, you need someone qualified and ready to purchase a new home. Obtaining a pre-approval from a reputable lending institution makes you a qualified buyer. They also have proven they have the necessary funds and qualifications to buy a home in the Brooklyn Real Estate Market. The reasons someone may be interested in purchasing a home vary as much as the reasons a seller would want to sell.

Some reasons to purchase may be:

• Achievement of “The American Dream”
• Sound investment
• Build equity
• Potential tax benefits

The buyer’s motivation is as important as the seller’s motivation. An apathetic buyer can take a home off the market for some time and then decide to terminate the sale. Your real estate agent can help you vet the buyer’s motivation. Unfortunately, you would need to have a crystal ball to definitely know what will happen.

LENDER

In hopes of financing the home, the buyer will choose a financial institution for their mortgage. Surprisingly, the lowest interest rate is not always the best option. You may want to compare several lenders.

Obtaining an estimate of the lender’s fees can be eye-opening. Some things you will want to compare are:

• Interest rates
• Lender fees
• Cash required to bring to closing

By all means, it is essential to find a reputable lender who is knowledgeable in lending in your area. Out of state or internet mortgage companies may not know the intricacies of a home purchase in the Brooklyn Real Estate market.

The lender should do a thorough analysis of the buyer’s financial situation to determine if they qualify for a mortgage. The buyer should offer evidence of their qualifications when they make an offer on the property.

There is a difference between a pre-qualification and a pre-approval. A pre-qualification provides the buyer with a general estimate of what they can afford. A pre-approval is more valuable because the buyer’s credit has been checked, and documentation has been verified to approve the buyer for a specific loan amount. A pre-approval can be valid for 60-90 days and should be re-verified to confirm no buyer’s status changes.

REAL ESTATE AGENTS

Typically you will find two real estate agents involved in any Brooklyn Real Estate sale. The first agent works on behalf of the seller, helping them prepare their home and price it competitively. The second agent represents the buyer and helps evaluate an offering price and terms once the right home has been found.

The real estate agents work together, bringing the buyer and seller to an agreement on the best terms possible.

You will want to find a trustworthy agent to represent you in either a sale or purchase.

What are the qualities of a trustworthy agent?

• Local Market Expert
• Proactive
• Knowledgeable
• Good Communicator
• Educated

Your real estate agent should hold the designation of Realtor®, which means they belong to the National Association of Realtors® and their local Board of Realtors®. Notably, a member of these associations must follow guidelines to ensure they are fair and ethical in their business practices.

A critical component of the buying process is the home inspection. The purpose of the home inspection is to determine if there are any major ticket items or safety issues affecting the home. In reality, these are items that the seller may not have been aware of. Nitpicking the seller for trivial issues or updates that were visible upon your visit to the home is not the purpose of a home inspection.

The home inspector will usually look at the following areas of the home:

• Exterior structure
• Roof
• HVAC System
• Hot Water Heater
• Electric Panel
• Outlets
• Windows
• Plumbing in kitchen and baths
• Attic

Be sure to check the credentials of the home inspector you choose. There are certifications required for home inspectors in the Brooklyn Real Estate market.

The home inspector will highlight areas of concern. You will also learn from the inspector the home components that may need to be replaced in the future. With this information in hand, you can make an informed decision about whether this is the right investment for you.

LAWYER

You will most likely need to hire an attorney to represent you either as a buyer or a seller when purchasing in the Brooklyn Real Estate market.

What is the lawyer’s role in a real estate transaction?

• Write and negotiate the sales agreement.
• Represent their client’s best interest.
• Review closing documents.
• Attend the closing to ensure a smooth transition.

For more information on the importance of real estate lawyers, see this previous blog post that explains it all in detail.

TITLE COMPANY

The title company researches the history of homeownership to determine the buyer receives a clean title to the property when they take possession of the home. In the event that they find any issues on the chain of title, they will resolve them before closing.

They will also research any judgments, liens, outstanding mortgages, or unpaid taxes on the property.

The title company will then prepare a report (abstract of title), revealing all the research findings. This document will validate the title of the property.

Title insurance is issued to protect the lender and new owner against any lawsuits or claims undetected on the original title search. The lender will require a title insurance policy.

If you are a cash buyer, it would be your decision to purchase title insurance. Although, if you are purchasing a home with cash it is highly recommended that you purchase the title insurance policy.

APPRAISER

An appraiser will visit the home to prepare an opinion of value for the lender. Do not confuse the appraisal with a home inspection but, the appraiser may note any safety issues that are apparent to them. Requirements for an appraiser and a home inspector are different. An appraisal is not a substitute for a home inspection.

An appraiser will prepare a report called an appraisal that will provide their opinion of value based on several factors.

• Location
• Structural Construction
• Age
• Bedrooms
• Bathrooms
• Condition
• Square Footage
• Recent Neighborhood Home Sales

Providing a fair and unbiased assessment of the property can be accomplished by randomly assigning appraiser through a third party.

The cost of the appraisal is an expense the buyer will pay. This is a requirement of the buyer’s lender.

In the event that the home does not appraise for the amount of the sales price, it can trigger a negotiation between the buyer and the seller. If both parties come to an agreement acceptable to the lender, the sale will be completed.

UNDERWRITER

The underwriter works for the lender. Their role is to review the buyer’s information and the appraiser’s opinion of value to determine if the mortgage can be issued for the purchase price agreed upon. The underwriter will evaluate that granting the mortgage to the buyer is a sound investment for the lender.

An underwriter will look at several different areas to determine any risk of the buyer defaulting.

• Credit and payment history
• Income and assets of the buyer
• Downpayment
• Appraised home value

The underwriter may need to request additional information to clarify any uncertainties that arise to be sure lending the money to the buyer is a solid investment for the bank/lender.

The last hurdle in the process of buying or selling a home is clearing underwriting. The type of loan, buyer’s financial situation, title issues, survey issues, and missing paperwork will all affect the time the underwriter will need to complete the process.

Once they have completed their review, the Underwriter will issue the loan a “Clear to Close” status!

TEAMWORK

Buying or selling a home in the Brooklyn Real Estate market involves many parties and this doesn’t include assistants and others within these companies who help. It really does take a village to pull all the pieces of buying or selling a home together.

That is why it is so important to hire the right Realtor® to work for you, whether you are buying or selling a home. Coordinating all these parties takes a thorough understanding of the sale process and experience in the local market.

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 can help both buyers and sellers coordinate all the details.

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].

To list or not to list? Should you or shouldn’t you? When a new year arrives, the desire for change usually does, too: health, finances, job, home, education, etc. If you’re wondering whether or not you should take on a change of address in Brooklyn this year, here are 7 strategies to help with that decision:

1. Examine the elements of your home to help you decide to list or not to list

Think about the traffic pattern, how dark your home might be and if you could use a mud room that isn’t there, for example. Now, answer these questions:

• What really bothers you about your home?
• What’s missing?

Often the perfect changes can be made without adding a single square foot. Simply taking down a wall or partial wall, removing or changing doors and adding or enlarging windows, can convince you not to list. Eliminating an unproductive traffic pattern, brightening up your home or adding a missing feature can increase your home’s value as well. In his book Staying Put: Remodel Your House to Get the Home You Want (Taunton Press, 2011) architect Duo Dickinson “offers guidance on looking before you leap, ways to avoid pitfalls (and money pits), strategies for staying green or going geriatric, and moves you can make so you don’t have to move out.”

2. Study the land your home is sitting on

The landscape, condition and size of the property can’t be ignored. It’s a good decision to list if the land your home is sitting on:

• property too small for your gardening passion
• needs more yard for your growing family and summer entertainment (i.e. barbecues, pool, backyard get-togethers …)
• lack of parking on or around your property

Remodeling can’t fix those issues!

3. Discuss and weigh your neighborhood’s plusses

Remodeling to fix your home’s issues might outweigh the option to list your Brooklyn home if your neighborhood offers:

• Shopping for every budget
• Excellent schools
• Safety and family entertainment
• Beautiful parks and walkability
• Special memories (ie: your kids grew up in that house, your daughter got married in the backyard of that house)

4. Think about how long you plan to stay put

If you plan to stay put for at least 5 to 10 years, adding on or finishing a basement, may be worth the time, effort and expense. It will increase your home’s resale value, too. But if empty nesters needing to downsize are more likely to buy in your neighborhood, adding on or finishing your basement probably won’t help you sell in the future.

This is where a good financial planner and a mortgage lender can help. A good financial planner will help you gauge your home’s value in relationship to your assets and the needs of your family. A mortgage lender will discuss the costs of a new mortgage and whether or not you need one.

5. Get estimates from contractors, designers, architects or structural engineers

It’s worth paying to get multiple bids from remodeling professionals. Some even offer free estimates! They will:

• Listen to what you want
• Appraise your home’s present condition
• Point out things you may not have seen or thought about
• Estimate what remodeling could cost realistically

If your house is over 30-years-old and hasn’t been updated, the wiring, plumbing, HVAC system, roof and insulation may need attention. Whether you decide to list or not to list, these things will need to be updated.

6. Compare the resale price and remodeling costs of your home with other homes in your neighborhood

Yes, remodeling isn’t solely done for resale value, and it shouldn’t be. You should consider how much enjoyment adding on or remodeling will give you and your family, but don’t overbuild for your neighborhood. Think of it a little like this: If you live in a neighborhood full of “Volkwagen Bugs,” don’t try to renovate your VW into a “Cadillac.” Changes made to your home will affect its resale value in comparison to other homes in the area. This must be considered. Most people would rather buy a decent home in a great neighborhood than pay for a nicer house in a not-so-great neighborhood. Rismedia.com shares the following great information: The 2016 Cost vs. Value Report compares, across 100 markets, the average cost of 30 popular remodeling projects with their average value at resale one year later. Average resale value is calculated based on estimates provided by real estate professionals. View the full report, including project descriptions and city-level data, here.

Something else to note here: Improvements can affect the value of your home when it comes to taxes. Depending on whether you are knocking down a wall or adding on to your home, your real estate taxes will or will not change. Look into this before you decide to list or not to list.

7. Walk through homes that are available in your price range in neighborhoods you like

You may find a home with a better floor plan. You may discover one with the just the right number of bedrooms and bathrooms, a great kitchen and a great yard, too. It may need some paint, new carpet or a renovated master bathroom, but compared to the costs of remodeling your current home, you should list.

Sometimes it makes better financial sense to list. Sometimes it makes better financial sense not to list. Before deciding to list or not to list, consider the cost and time of remodeling your home and all the facts.

Get estimates. Talk with a financial advisor and mortgage lender. 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 [email protected]. I’ll provide you with comps for your neighborhood. Together we can help you decide to list or not to list.

 

Homebuyers in Brooklyn are tired. They’re tired of being cooped up. They’ve spent a lot of time online snuggled beneath a favorite throw trying to keep warm this winter. And what have they been doing online all winter? Shopping the housing market. They’re ready to buy! Low interest rates will begin creeping upward this summer, so homebuyers in Brooklyn will be eager to buy in April, May or June. Freshen up your Brooklyn home listing this spring. Make your home stand out to homebuyers, and grab their attention!

New listings inundate the housing market each spring making it the busiest season for real estate. This means homebuyers in Brooklyn have an over abundance of new listings competing for their attention. Your home must stand out to grab attention. If your home has been on the market since the holidays, your Brooklyn home listing needs to be updated now for the spring housing market. Take it off the market, and put it back on after a few weeks. Homebuyers will then view it as a fresh new listing. Here are 6 ways to grab attention with your Brooklyn home listing to make it stand out this spring.

1. Impress with curb appeal this spring

First impressions are important. When a buyer sees your Brooklyn home, they know in about 60 seconds if your home is worth their consideration. Making a good first impression with a little curb appeal is easy to do. Pruned trees and bushes, freshly turned garden soil, freshly planted flowers, power-washed walks, porch, driveway, patio and home exterior and clean windows will make your Brooklyn home listing stand out and impress homebuyers this spring.

2. Organize and start packing

Make your Brooklyn home look roomy and neat. Homebuyers need to see themselves and their belongings in your home. Take a good, hard look at each room, including the garage or shed. Look through your home thoroughly, one room at a time, to avoid overwhelm. Ask tough questions and be brutally honest. Do you really need that end table? Would you miss that knick-knack if you lost it to a fire or gave it away? Then, in accordance with your answers, start packing, donating or tossing. Now you’ll be a step ahead in the moving process when your home sells. Think about it. Do you really need eight sweaters?

3. Clean and stage your Brooklyn home listing

Now that everything is organized and packed, start cleaning. Curtains, rugs, walls and baseboards, cupboards and drawers are dirtier than you probably realize. Once this cleaning is done, it’s time to freshen up your Brooklyn home listing with a few simple staging efforts. Add fresh flowers, pastel-colored throws and pillows throughout. Matching towels, a bar of soap and a candle in a clean bathroom will catch buyers’ attention.

4. Groom your pets and clean pet items

If you own a pet, you need to be discreet about it. Homebuyers may love animals, too, but they still do not want to walk into your Brooklyn home and smell your pet or see your pet’s toys. Hide Fido’s presence in your home with lots of fresh air, clean drapes and clean carpets. While your home is on the market, make a special place in the house just for your pets. Keep toys, beds, food, dishes, litter boxes and all that pertains to your pet, clean and tidy in their special place until your Brooklyn home sells.

5. Update your Brooklyn home listing with minor repairs and home improvements

Replacing old caulk and discolored grout, outdated light fixtures and carpets will do wonders to freshen up your Brooklyn home listing this spring. You don’t need to make major renovations before you list your Brooklyn home. Minor improvements such as matching hardware throughout, new switch plates, polished floors, neutral paint on walls and freshly painted trim will make your Brooklyn home stand out to homebuyers.

6. Check interior systems and make repairs

Check and make sure all interior systems in your Brooklyn home are working as they should be – heating, ventilation, air conditioning, home security, smoke detectors, fire alarm and extinguishers, carbon monoxide alarms, window seals. If you find repairs that need to be made, make them yourself or hire someone to do it before the buyers walk through for a home inspection. It makes sense to pay $100 now instead of $300 later for the same repair when the buyer requests it.

Call your Brooklyn real estate agent with Fillmore Real Estate, Charles D’Alessandro at (718) 253-9600 ext 206 or email [email protected] for more on how to make your Brooklyn home listing grab attention and stand out this spring. He’s the right listing agent. His experience will help your home sell quickly and for the right price. You can trust his knowledge of the Brooklyn area and the marketing strategy he will create for you. He will represent you well.

Resources:

Homebuying.about.com

Realtor.com

Bankrate.com

Forbes.com

wtnh.com