Archive for the ‘Real Estate’ Category

It Takes a Village To Buy or Sell in the Brooklyn Real Estate Market!

Friday, October 30th, 2020
Couple Holding keys to their new home

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.

Home Inspection Checkmark

HOME INSPECTORS

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

Real Estate Team

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.

Charles D'Alessandro

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].

How Will the New Tax Law Affect You?

Tuesday, January 30th, 2018

New tax law

The new tax law: the Tax Cuts and Jobs Act. How will it affect you as a Brooklyn homeowner?

A New Year brings with it new possibilities and changes, even in the world of real estate. Have you heard about the new tax law: the Tax Cuts and Jobs Act? Whether or not you have, you most likely won’t notice the changes that will affect you until you file your taxes in 2019. You may see changes made to next month’s paycheck because of this new tax law and its new tax rate deductions, however.

New Tax Law: How Its Policies Could Affect You as a Homeowner

  1. Capping Mortgage Interest Deduction

On December 15, 2017, the new tax law, the Tax Cuts and Jobs Act, reduced the amount of mortgage interest rate deduction for new loans from $1,000,000 to $750,000. If you took out a loan before December 15, 2017, you are grandfathered into the previous tax policy.

If you want to refinance your existing mortgage balance and still deduct the interest, you can do so up to $1,000,000, but your new loan cannot exceed the amount of your existing mortgage balance being refinanced.

The capping of the mortgage interest deduction poses a risk to large urban areas with high-priced homes such as those here in New York as well as in Washington, D.C., California, Hawaii, and Massachusetts.

The effect of these changes will not be noticed until you sell your home. But the newly purchased property would then come under the new regulations of the new tax law policies.

By limiting your buyer’s purchasing power and capping mortgage interest rate deduction, the growth of your home’s value could be slowed. This could then affect the profits you as a longtime homeowner would hope to gain when trying to sell.

  1. Introducing the New SALT Deduction Limit

Whether filing as an individual or married couple, taxpayers can itemize deductions up to $10,000 for their total state and local property taxes and income or sales taxes in the final bill. The cap is the same for both.

The new SALT limits will impact households that pay more than $10,000 in combined state and local taxes each year. Alexander Casey, Zillow Group Policy Advisor, says, “On one hand, taxpayers who still itemize deductions and whose total state and local tax liability exceeds $10,000 will get a smaller tax break; however, for other households, the continued availability of those deductions, even if they are capped, may be the deciding factor between whether or not they itemize deductions. This matters a lot in areas where SALT deductions were a relatively more significant reason for itemizing – areas with lower home prices, but higher taxes (e.g., upstate New York, Southern New Jersey, Inland California).”

In the law preceding this new tax law, the SALT deduction was unlimited.

Realtor.com® Senior Economist Joseph Kirchner, Ph.D. says, “The new SALT limit will have the greatest impact on states that provide a large number of services to their citizens by, first, reducing the benefit of tax cuts by disallowing the full value of this deduction, and, second, compounding the issue of the standard deduction vs. the mortgage interest rate deduction.”

  1. Preserving the Exclusion of Capital Gains

The previous law stated that homeowners must live in their home for two out of the past five years in order to qualify for the capital gains exclusion. This tax policy hasn’t changed.

Casey also says, “About 10 percent of home sellers last year sold their home after living in it between two and five years. Keeping the status quo means these sellers no longer need to make that difficult choice, and can instead feel more free to list their home on a more flexible schedule without fear of a potentially hefty tax hit.”

An increase to the residency requirement to five of the past eight years was proposed in the Senate bill, but it did not pass to the final version.

Kirchner stated, “Today, homeownership is imperative for middle-class wealth-building and financial stability. It allows people to invest in a long-term asset that pads their retirement savings, provides a safety net for unforeseen circumstances, and equity to back investment in education or small business. The survival of the capital gains exclusion means that the advantages of this type of investment will remain (except, of course, with regard to impact of changes to deductions).”

  1. Deducting on Home Equity Loans

According to the new law, taxpayers will no longer be able to deduct the interest paid on their home equity loans beginning in 2018, unless the funds are being used to improve their residence significantly. This provision expires in 2026 when it reverts back to the previous cap of $100,000 of home equity debt.

“Deductible interest on home equity loans used to provide homeowners another layer of financial security by giving them the ability to obtain low-cost financing,” Kirchner says. “Now, without the ability to deduct interest, owners effectively will have to pay more for their loans, which could put downward pressure on the homeownership rate.”

Casey believes removing this homeownership incentive will not dramatically impact the homeownership rate. But it will affect home renovations instead. About this, he says, “A lot of personal and economic factors matter more. This deduction is more important for financing major home renovations, so eliminating this deduction could contribute to underinvestment in the housing stock, making it more difficult for struggling communities to reinvent themselves.”

  1. Doubling of the Standard Deduction

Also in the previous law, $6,350 was the standard deduction for single taxpayers and married couples filing jointly. In the new law, this amount is nearly doubled to $12,000. The previous standard deduction for married couples filing jointly was $12,700. This has been increased to $24,000.

“A doubled standard deduction will have a big impact on how many homeowners ultimately decide to take advantage of the mortgage interest deduction,” says Casey. “When you combine a much larger standard deduction, with the fact that some itemized deductions have been capped or pared back, many filers may no longer find it financially advantageous to itemize deductions.”

According to Zillow’s calculations, Casey says that under the current tax code, itemizing and claiming the mortgage interest deduction is financially worthwhile on an estimated 44 percent of all U.S. homes. In addition, under the new law, itemizing and claiming the MID is worthwhile on only 14.4 percent of homes nationwide.

“The doubling of the standard deduction changes the equation for homeownership incentives and essentially renders the mortgage interest rate deduction ineffective for the majority of owners,” says Kirchner. “Until now, most households did not itemize their deductions until they bought a home, which added significant tax benefits to ownership. Based on the changes to the standard deduction, this benefit will disappear for all but those homeowners who have mortgages in excess of $550,000, depending on what other deductions they have.”

Location and Timing and the New Tax Law

How much you are impacted by the new tax law will be based largely on where you are located. If you are located in a high-cost state, you may see the biggest changes in how you file, especially with the new $10,000 SALT limit. According to Zillow Research, 51 percent of Americans surveyed last year said they agree with the statement that “the property tax rate in my community is unfair to me.” These sentiments may rise in response to residents of high-tax burdened markets receiving a higher tax bill because of the new limit.

For example, Zillow analysis conducted for the Wall Street Journal states that a top income earner in New York, who owns in the top-third price range of the metro, pays an estimated $23,000 in property and state income tax every year, which is double the amount now allowed for deductions. The analysis also reported $10,000 in similar circumstances for Raleigh, N.C., and $12,000 for a Chicagoan. These are just a few areas where high-earning taxpayers would be adversely impacted by the new SALT deduction cap. According to a Wall Street Journal article, Moody’s Analytics estimates that 80 percent of counties across the country will see a negative impact on home prices in the summer of 2019.

Low-tax states, however, may benefit from the new tax code. According to the WSJ, parts of North Carolina, Alabama, Nebraska, Indiana, and Tennessee may see boosts in their home prices and local economies. And the same Zillow analysis that surveyed high property and income taxes in other states says an individual in a similar financial situation would pay one-quarter of the amount in Nashville, Tennessee. For those that have been on the fence about moving, the tax overhaul may be their deciding factor. But those who live in high-tax states may not see the negative impact from taxes as reason enough to leave their homes.

According to NAR research, here are the five metro areas that will be most affected by the new tax law (based on homes with mortgages valued over $750,000):

  1. San Jose-Sunnyvale-Santa Clara, Calif.
  2. San Francisco-Oakland-Hayward, Calif.
  3. Santa Cruz-Watsonville, Calif.
  4. Santa Maria-Santa Barbara, Calif.
  5. Urban Honolulu, Hawaii

The top five metros based on share of owners that pay over $10,000 in real estate taxes:

  1. New York-Newark-Jersey City, N.Y., N.J., Pa.
  2. Bridgeport-Stamford-Norwalk, Conn.
  3. Trenton, N.J. Metro Area
  4. San Jose-Sunnyvale-Santa Clara, Calif.
  5. San Francisco-Oakland-Hayward, Calif.

In response to the bill’s passing, NAR President Elizabeth Mendenhall said, “Only 6 percent of homeowners have mortgages exceeding $750,000, and only 5 percent pay more than $10,000 in property taxes, but most homeowners won’t itemize under the new regime. While we’re pleased that important homeownership incentives such as the capital gains exclusion survived in conference, additional changes are required to truly incentivize homeownership in the tax code.”

But timing also plays a role. Many of the provisions in the Tax Cuts and Jobs Act, including individual tax cuts, expire in 2025 and therefore, may lead to tax hikes in the future, according to the Distributional Analysis of the Conference Agreement for the TCJA by the Tax Policy Center. The report states that taxes would be reduced by $1,600 on average in 2018, increasing after-tax incomes by 2.2 percent; however, in 2025, the average tax cut as a share of after-tax income would decrease by 1.7 percent for most income groups.

“The tax bill decreases homeownership incentives, but these benefits are not the only factors in the homeownership decision,” Kirchner says. “In the short run, homebuyers can look forward to more money in their pocket that can be used for a down payment or larger home.”

He adds that cuts in government services and economic development programs, along with the rescinding of tax cuts for individuals in a few years and the impact of tax reform-induced deficit on inflation, will weaken the impact of the after-tax income boost on homeownership.

“The change definitely removes some of the federal government’s preferential treatment towards homeownership,” Casey says. “Ultimately, with these new reforms, households will be more likely to maximize their tax breaks with a standard deduction. And when someone uses the standard deduction, it doesn’t matter if they spent an extra $5,000 on a house, a boat or a vacation—the spending is treated the same when tax season comes.

“It will be interesting to see how the temporary nature of some of these tax cuts shake out,” says Casey. “Will those households on the edge of homeownership make decisions based on what their new take-home income is in February, or will there be some apprehension if they think their taxes will rise down the road?”

According to an NAR statement, “As a result of the changes made throughout the legislative process, NAR is now projecting slower growth in home prices of 1-3 percent in 2018 as low inventories continue to spur price gains; however, some local markets, particularly in high-cost, higher-tax areas, will likely see price declines as a result of the legislation’s new restrictions on mortgage interest and state and local taxes.”

If you have any questions about how the new tax law will affect you, call Charles D’Alessandro at (718) 253-9600 ext. 206 today.

This article was largely taken from RISmedia.com’s article “Tax Reform: Here’s What Could Impact Homeowners Most.”

Charles D’Alessandro

Your Brooklyn Real Estate Agent with Fillmore Real Estate

718-253-9600 ext. 206

[email protected]

Consumer Red Flags When Hiring Your Brooklyn Real Estate Agent

Sunday, February 10th, 2013

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Consumer Tip – Real Estate Red Flags (1)

The majority of Brooklyn licensed real estate agents and brokers are well-trained professionals who can help make the process of buying or selling your home a successful venture rather than a stressful adventure. Occasionally, however, you may run into an unlicensed person posing as an agent, or a licensed agent who is not following the rules of the profession. In either case, your real estate experience can quickly turn sour. Here are a few Consumer Red Flags When Hiring Your Brooklyn Real Estate Agent I hope you find them helpful for your next real estate transaction.

Following are some “red flags” that may assist you in determining if you are NOT working with a legitimate or honest real estate agent. These tips are not intended to provide legal advice in drafting real estate related documents or provide detailed descriptions of the nature of relationships that may be created between agents and buyers and sellers.

Consumer Tip – Real Estate Red Flags (2)

Some “red flags” that may assist you in determining if you are NOT working with a legitimate or honest real estate agent. These tips are not intended to provide legal advice in drafting real estate related documents or provide detailed descriptions of the nature of relationships that may be created between agents and buyers and sellers.

  • RED FLAG – Agents using high-pressure tactics, especially in an attempt to have you sign a purchase or listing agreement
    Tips-

    • Do not be pressured into entering into a purchase agreement based solely on the agent telling you there are multiple offers so you need to make your purchase agreement offer immediately. Multiple offers may exist but don’t be pressured into making a decision you are not comfortable with or if you do not understand the terms of the purchase agreement. If the sellers accept your purchase offer it becomes a legally binding contract. You may have to forfeit your earnest money deposit if you get “cold feet” and later decide that you just don’t want or like the property.
    • Do not be pressured into signing a listing agreement unless you are comfortable with the agent and understand and agree with the terms of the listing agreement including any marketing strategy.
  • RED FLAG – Agents asking for earnest money or a down payment check made out to the agent…or asking for cash
    Tips-

    • Earnest money should be paid with a check or money order and made payable to the real estate company and not to the individual agent.
    • By law, earnest money must be placed in the listing company “trust account” and cannot be mixed with personal funds of the agent. Once the listing company receives the earnest money, it must be deposited within three business days. However, the buyer and seller may agree, in writing, to handle the funds differently.
  • RED FLAG Agents who do not provide answers to your questions about the property or fail to return your calls or maintain communication with you
    Tips-

    • By law agents are required to disclose all material facts they are aware of that may adversely and significantly affect your use or enjoyment of the property, such as existing structural or mechanical problems, water infiltration problems, easements or encroachments, or faulty septic systems.
    • Do not enter into a purchase agreement until your questions are answered. You also have the option of including “conditions” or “contingencies” in your purchase agreement. If your conditions or contingencies were not met, you would not be obligated to go through with the purchase. Some common contingencies are a buyer requiring a satisfactory home inspection report by a certain date and at the buyer’s expense. If the home inspection is unsatisfactory, the buyer can cancel the purchase agreement and obtain a refund of the earnest money.
  • RED FLAG Agents who don’t disclose who they represent
    Tips

    • Whether you are buying or selling, it is important to understand the different types of relationships that can be created between you and an agent. Expect agents to act in the best interests of whomever they represent.
    • Agents must provide a consumer with an “agency disclosure” form at the first substantive contact with the consumer. The agency disclosure is intended to provide a description of available options for agency and nonagency relationships and a description of the role of a licensee under each option. The agency disclosure form is not a contract. If a buyer or seller wants an agent to represent them, a written contract must be entered into such as a listing agreement or a buyer representation contract. Following are the different types of agency relationships in real estate transactions:

    Seller’s Broker: A broker who lists a property of a salesperson who is licensed to the listing broker who represents the seller and acts on behalf of the seller.
    Subagent: A broker or salesperson who is working with a buyer but represents the seller. In this case the buyer is only the agent’s customer and is not represented by that agent.
    Buyer’s Broker: A buyer may enter into an agreement for the broker or salesperson to represent and act on behalf of the buyer. In this case, the agent represents the buyer only and not the seller.
    Dual Agency: Dual agency occurs when one broker or salesperson represents both buyer and seller, or when two salespersons licensed to the same broker each represent a party to the transaction. Dual agency requires the informed consent of all parties.
    Facilitator: A broker or salesperson who performs services for a buyer, a seller, or both but does not represent either in a fiduciary capacity – meaning the facilitator is not obligated to represent the best interest of either party.

  • RED FLAG – Agents who will only show you properties they have listed
    Tips-

    • A Brooklyn real estate agent who you have entered into an agreement with should be acting in your best interest, not his or her own best interests. Agents should be willing to show you properties that they have listed as well as other company listed property and property that is For Sale By Owner (FSBO’s).
  • RED FLAGAgents who ask you to sign blank or incomplete documents
    Tips-

    • Do not sign any real estate related documents that are blank or incomplete. Most of these documents are legally binding.
    • Be wary if you are told, “Don’t worry about that section, we’ll fill it in later.”
  • RED FLAG Agents who require a listing agreement for extended periods of time
    Tips-

    • Do not be pressured into signing a listing agreement for lengthy periods of time. A typical listing period is six months but you can negotiate a shorter or longer listing period.
  • RED FLAGAgents who are difficult to contact or do not regularly communicate with the consumer
    Tips-

    • An agent who has your best interests in mind should be easy to reach.
  • RED FLAGAgents who do not provide a basis for a listing price
    Tips-

    • The agent should provide a market analysis with documentation to support the listing price.
  • RED FLAG Agents who attempt to talk you out of a home inspection or hiring a real estate attorney
    Tips-

    • Agents are prohibited from discouraging the use of an attorney. Hiring an attorney, while not required, may be desired and it’s your right to do so.
    • If an inspection is discouraged, it might be because there is a defect in the property.
  • Make sure your agent is licensed
    Tips-

  • Tip-
    If you’re thinking about selling your Brooklyn real estate and would like more tips on how to get it ready, please call Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate a call at 718/253-9600 ext 206 or email me at [email protected], for more information and a Free Market Price Evaluation without obligation!

Considering Selling Your Brooklyn Home? Get the Scoop on the 3.8 Percent Real Estate Tax in the Healthcare Bill

Monday, September 17th, 2012

If you’re considering selling your Brooklyn home, you may have heard rumors that there is a new tax going into effect in January, 2013. Here’s the rundown on what the tax really is – and isn’t.

The new tax is called the ‘‘Unearned Income Medicare Contribution.” It is a 3.8 percent tax on the net investment income of high-income taxpayers. The tax will apply to those with an adjusted gross income of more than $200,000 ($250,000 for joint filers), with no indexing for inflation.

The Good News

Odds are that you will never pay this tax.

Why You Most Likely Won’t Pay the New Tax

The tax will apply to capital gains, not sale proceeds. Because of the current exclusion of gains on home sales — up to $500,000 (joint) or $250,000 (single) on a primary residence — the vast majority of home sellers will not be required to pay this tax.

 Here’s an example: A couple with an adjusted gross income of more than $250,000 (which qualifies them for the tax — more than 90% of households make less than that) decide to sell their house. They purchased their Brooklyn home long, long ago for $50,000. They sell the house, miraculously, for $549,000. Because that profit of $499,000 is under the $500,000 profit exclusion amount allowed for couples, they owe no tax.

The Bottom Line

There are plenty of other taxes that are worth getting upset about; this isn’t one of them.

If you’re Considering Selling Your Brooklyn Home on selling a Brooklyn home, I can help. Give me a call Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate a call at 718/253-9600 ext 206 or email me at [email protected].

 

 

Seven Signs Brooklyn Real Estate and Real Estate Nationwide are Improving

Friday, March 9th, 2012

Recently released figures indicate real estate nationwide and Brooklyn real estate are continuing to steadily improve. Here are seven signs that demonstrate the upturn:

Housing affordability has risen dramatically. This is due to a combination of reduced real estate prices and record-low mortgage rates.

  1. Housing starts are increasing, driven mostly by multifamily starts.
  2. Existing home sales increased in January. That means we’ve now had three months of gains out of the past four months.
  3. Total housing inventory fell to a 6.1 month supply at the end of January. This means that on average it now takes just over 6 months to sell a home, which is an improvement. According to Lawrence Yun, NAR chief economist, “The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers.”
  4. There are plenty of home buyers and investors competing for foreclosure sales in almost all markets.
  5. Purchases of homes are on the rise by all types of buyers, from seasoned investors to first-time home buyers.
  6. Most economists agree that the market is improving. Frank Nothaft, Freddie Mac vice president and chief economist says, “Our outlook anticipates gradual, but steady, improvement in the economy and the housing market, supported by low interest rates and brightening job market prospects.”

This is excellent news for the spring and summer Brooklyn real estate season that’s just around the corner. If you’ve been considering buying or selling a home, now’s the time to start that process so you’re ready for the hottest season we’ve seen in years.

Thinking about buying or selling Brooklyn real estate? Please contact Call Charles D’Alessandro of Fillmore Real Estate at (718) 253-9600 ext 206 or email me at [email protected] . I can help you achieve your goals.

Tips for Successful Brooklyn Short Sales

Thursday, February 2nd, 2012

Short Sale  And Your Brooklyn Home

The reality of today’s real estate market means that there are many opportunities to purchase Brooklyn short sales.  While the process can still be confusing, it is increasingly common. Here are a few tips on how to make sure you leap through the extra hoops a short sale requires with ease and grace:

  • Avoid short sales with multiple mortgage lenders: Offers on Brooklyn short sales with two different lenders are at a much higher risk of being declined. The first mortgage lender will likely only allow a small percentage to go to the holder of the second mortgage – who will therefore be likely to veto a deal, on the hope that more funds would be generated in a foreclosure.
  • Check the Real Estate Agent’s Short Sale Track Record: Agents with experience in short sales are much more likely to be able to successfully navigate the system than those new to the vagaries of short sales.
  • Make Reasonable Offers: Short sales can be better deals, but they are unlikely to be magically cheap.  No matter what, the bank isn’t going to give the home away just to avoid foreclosure.  You want to put together an offer that makes the buyer and the bank happy.
  • Follow Up on the Details: With the bank involvement, there will be more negotiation and more detail.  Keep your i’s dotted and t’s crossed to make sure the process doesn’t stall.
  • Allow For Extra Time: Short sales are not a short process, so if you are truly in a hurry to close a deal, consider other options.

If you’re looking for a real estate agent with experience in Brooklyn short sales, give me a call.  I can help you navigate the system and close on your new home. You can reach me at call Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate a call at 718/253-9600 ext 206 or email me at [email protected]

Preapproval Steps for a Real Estate Home Loan

Wednesday, January 25th, 2012

If you’re thinking about taking the plunge into homeownership, before you even start looking, talk to a qualified mortgage professional to get preapproved for a home loan. Armed with that information, you can make better decisions on the type of  Brooklyn real estate you can afford to buy.

Follow these steps to get preapproved for a mortgage:

1)      Get referrals. Ask family, friends, neighbors and your Brooklyn real estate agent for referrals to a lender with whom they have had a good experience. Talk to several lenders to compare service, rates and other options.

2)      Review your credit report. If anything unexpected appears on your report, do what you can to resolve the issues before you apply for preapproval.  Lenders will review your credit report before preapproving you for a home loan.

3)      Provide financial information to the lender. This usually includes documentation of your income, recent statements for all your checking and savings accounts, assets and debt (for instance, credit card debt and car payments).

Even though the preapproval process is rigorous, obtaining a preapproval still does not guarantee that the lender will ultimately fund your loan. Lenders still need to look at property appraisals, verify your information and potentially check your credit again before agreeing to give you a mortgage.

Preapproval helps you narrow the focus of your Brooklyn real estate search to properties that are within your financial reach. It also helps you check out lenders to find one that is the best match for your situation. When you find the Brooklyn real estate of your dreams, you’ll be ready to move to the next step!

If you’re looking for more information on the home buying process, I can help. Give me a call today at Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate a call at 718/253-9600 ext 206 or email me at [email protected]

How to Sell Your Brooklyn Real Estate this Winter

Sunday, January 22nd, 2012

Charles D'Alessandro your Brooklyn Realtor®

If you need (or want) to sell your Brooklyn real estate this winter, you’ll have to step up your game a bit. People tend to be less likely to buy in the winter because the weather keeps them indoors rather than out house hunting. And let’s face it, most homes just don’t look as good in the brown, drab winter as they do in the spicy spring and summer.

If you’re one of the lucky owners with a home for sale in an area that stays beautiful all year long, you can still find a few tips here to help get your home ready to sell.

Six tips to help you sell your Brooklyn home this winter:

  1. Keep it cozy. You want your home to be warm so people can comfortably take their time viewing your Brooklyn real estate. Saving money on heating costs isn’t worth it if it means freezing out your potential buyers.
  2. Turn up the light. Keep curtains and blinds open during the day. Turn on your lights, both inside and out, at night. Put your lights on timers if you won’t be home until after dark. Use motion detectors to light up in the evening when a potential buyer approaches your doorstep.
  3. Point out cold-weather benefits. Have mass transit within walking distance? That’s a big benefit in bad weather because you don’t have to de-ice or dig your car out of the snow in order to get to work. Have an attached garage? Ditto.
  4. Take advantage of good winter locations. If your home is in a location that people flock to in the winter, say an area with great outdoor winter sports such as skiing or a warm-weather area like Florida, now is the time prime time to promote your house! Put all you’ve got into marketing the benefits of living where it’s always sunny or where winter living is fun.
  5. Set the mood. Play soft, classical music. Toss afghans or throws across the back of your sofa. Hang plush robes in your bedroom or bathroom.
  6. Clear away snow and ice. Shovel a path through the snow so potential buyers don’t have to get out their snowshoes. De-ice your driveway, sidewalk, steps and porch to prevent slips and falls.

If you’re ready to sell your Brooklyn real estate this winter, I can help. Give me a call today Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate a call at 718/253-9600 ext 206 or email me at [email protected] for more information.

What Do Buyers of Brooklyn Homes Want in a Neighborhood?

Tuesday, January 3rd, 2012

What Do Buyers of Brooklyn Homes Want in a Neighborhood?

What Do Buyers of Brooklyn Homes Want in a Neighborhood? So, what do they want? Based on the data just in from the 2011 National Association of REALTORS® Profile of Home Buyers and Sellers, here are what buyers want in a neighborhood in order of importance:

67 percent favor a quality neighborhood

  1. 49 percent of buyers said they want convenience to jobs
  2. 45 percent look at the overall affordability of Brooklyn homes in the neighborhood
  3. 39 percent prefer to live close to family and friends
  4. 28 percent of buyers are interested in having shopping close by
  5. 27 percent want a quality school district
  6. 22 percent ask for a neighborhood that is convenient to schools
  7. 21 percent like to live close to entertainment or leisure activities

Assess your neighborhood. Which of the attributes most desired by buyers does your neighborhood have? Showcase those features in the marketing materials for your home:

Mention the schools, shopping, entertainment and leisure activities that are close to your home.

  • Give statistics on the quality of your school district.
  • Take photos of your neighborhood that flaunt its quality.

Need help marketing your home? I am a Realtor® that specializes  in selling Brooklyn homes in your neighborhood. If you’re ready to sell your home, let me market your neighborhood and home to get it sold now. Please  call me today Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate a call at 718/253-9600 ext 206 or email me at [email protected] for more information.

Changes in the National and Brooklyn Real Estate Market You Need to Know Before Selling

Wednesday, December 7th, 2011

The data from the 2011 National Association of REALTORS® Profile of Home Buyers and Sellers is now available. Here are the significant changes you need to know that will help you market your Brooklyn real estate and get it sold:

  1. Most buyers are married: 64 percent of all buyers are married couples (up five percent from 2010), 18 percent are single women, 10 percent single men and 7 percent unmarried couples.
  2. Your property is competing against 12 other homes: Buyers searched a median of 12 weeks and visited 12 homes, both unchanged from 2010.
  3. Multiple bedrooms and bathrooms are preferred: The typical home had 3 bedrooms and 2 bathrooms.
  4. Most buyers want single-family homes: 77 percent of respondents purchased a detached single-family home, 9 percent a condo and 8 percent a townhouse or rowhouse.
  5. You need to promote your home to buyer’s agents: 60 percent of buyers working with real estate professionals were represented by a buyer’s agent.
  6. Hire a Brooklyn real estate agent to sell your home: 87 percent of home buyers use real estate agents to find their home. 91 percent of buyers who used the Internet to search for a home purchased through a real estate agent.
  7. Market your home online, with yard signs and at open houses: When buyers were asked where they first learned about the home they purchased, 40 percent said the Internet; 11 percent said a yard sign or open house.

Want to work with a Brooklyn real estate agent who knows how to market your home to get it sold? Let me show you my proven marketing plan. Schedule an appointment with me today by calling me at (718) 253-9600 ext 206 or emailing me at [email protected].