A little-known tool that I use to keep updated on national and Brooklyn real estate news is Google Alerts. It’s a handy tool. A few days ago, Google Alerts sent me a list of online links, along with one talking about an individual being indicted for real estate fraud. Today, I received another Alert with a link to real estate fraud. Unfortunately, it turned out to be another case, rather than the same one.

I love being a  Brooklyn real estate represenative. I enjoy being able to help home sellers find buyers, and buyers find their dream homes. With all those trying to sell homes, buy homes or keep the homes they have, I get angry when I see reports of fraud like these:

• On June 18, 2010, Sacramento Today reported that two individuals were arrested for six counts of real estate fraud, pretending to be licensed with the Department of Real Estate.

• On July 8, 2010, Fraud News reported that three individuals in New York were found guilty of real estate fraud to the tune of $23 million.

It’s become enough of a major issue, in fact, that the IRS has created a page on their website specifically for information on real estate and mortgage fraud.

Your home is too precious to risk with these con-artists. Don’t take a chance on giving away your savings or your house. The following tips, while few in number, can help ensure that the home you buy is a home you get to keep:

Tip #1: Research potential real estate agents or agency.

Don’t just ask about their credentials, because credentials can be faked. Ask for their client lists. Contact those clients personally to discuss their experiences with the real estate agents. When you do look at their credentials, take it one step further and check with their real estate boards. Are they actually members? Interview them and gather as much information as you can before hiring anyone to sell or find you a home.

Tip #2: Verify details with your lender.

Many agents do the paperwork for you. In fact, it’s one of the big selling points of having an agent. However, an unscrupulous person may provide your lender with a fraudulent amount for the selling price. Before signing any deal, check with your lender and verify the details. Talk with them face to face, if possible, rather than on the phone.  Read everything before signing.

Tip #3: Never use an agent who will “fudge the facts.”

Some agents may be willing to adjust your qualifications to help you get a loan. While this might sound like a great deal if you have a bad credit history, consider this: if an agent is willing to adjust this part, what else are they willing to adjust that they may not tell you about?

While owning Brooklyn real estate can be a dream come true, not doing your homework can turn it into a nightmare. Be careful and, if you suspect fraud, report it!

If you’re trying to sell or buy a home and want a reputable agent, I’d like to apply for the job. Call me at (718) 253-9600 ext 206 or email me at [email protected] to schedule an interview.

Charles D’Alessandro

[email protected]
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog 4 Reasons to List Your FSBO with a Brooklyn Real Estate Agent

As I’m sure you know, the real estate industry is in a down market, and the last thing you want to do is pay commission to a Brooklyn real estate agent. Not to mention that you’re almost positive you can sell your home just fine on your own. Before sticking a “For Sale by Owner” sign up, however, make sure you’re ready for the work and headaches.

• Time. Yes, you can sell your Brooklyn real estate on your own without the help of an agent, but it takes a lot of preparation and time. How much is your time worth and how much time do you have? Before you step out on your own, make sure you can afford the time and energy investment.

• Extra services for better value. You’ll lose out on a wide variety of services offered by real estate agents.  For example, many agents now provide home staging services as well as extensive advertising and marketing services both online and off.

• Dealing with the legalities. Selling a home involves contracts, closings and a multitude of legal issues that can make or break a sale. Real estate transactions have occasionally led to outcomes that were unexpected, including lawsuits. A professional helps ensure that the contracts are legally sound and binding.

• Knowing the market. Real estate agents have instant access to current market information. We can find an accurate selling range within minutes. Since the real estate market constantly fluctuates, it’s important to know what area homes sell for before pricing your own. Otherwise, your risk underselling or overpricing your home.

These are just a few points. You also need exposure to buyers, experience with legal contracts and excellent negotiating skills.  Can you sell your own Brooklyn real estate? Yes, but can you really afford to?

If you’re trying to sell your home and need professional expertise, I can help. Call me at (718)253-9600 ext 206 or email me at [email protected] for more information.

Charles D’Alessandro

[email protected]
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog Need Extra Time to Finalize Your Brooklyn Home Purchase to Qualify for Tax Credits?

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Did you know that cash could be hiding in your Brooklyn condo?  If you are sixty-two or older, you may be able to qualify for a reverse mortgage, and never have to make a mortgage payment as long as you live in the home.  Let me tell you a little more about a reverse mortgage:

What Is A Reverse Mortgage?

A reverse mortgage uses the equity in your Brooklyn condo to make payments to you.  You aren’t required to make any payments for as long as you live in your home.  The loan doesn’t become due until you have not lived in the home for at least twelve months.  Your home can pass to your descendents if they refinance the loan themselves.  The money can be used for any purpose you want.

Funds are received as a lump sum, a line of credit, or a monthly payment.  You’ll have access to more money with the line of credit, but the interest rate is variable.  If you decide on a lump sum or a monthly payment, you will have a higher interest rate.  The line of credit can be a credit card or like a checking account.  You can buy groceries, gas and pay your bills out of this account.

The reverse mortgage process is similar to the conventional mortgage process.  The property will need an inspection and appraisal.  There are origination fees and closing costs associated with this type of loan.

Who Qualifies for a Reverse Mortgage?

The first requirement is age; only those sixty-two or older are able to qualify.  There are no income or credit requirements to be approved for a reverse mortgage.  Some lenders even let you roll the down payment and closing costs into the loan, so that you don’t have pay any money up front.

The loan is based on the age of the youngest borrower.  The older you are, the more money you will qualify for.  The good news is that the money will not affect your Social Security benefits or Medicare.

There are advantages and disadvantages to a reverse mortgage, so be sure to do your homework before making this important decision.

If you have questions about reverse mortgages, or would like to discuss buying or selling a Brooklyn condo, give me a call today at (1718)253-9600 ext 206 or email me at [email protected]

Charles D’Alessandro

[email protected]
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog Is a Reverse Mortgage on Your Brooklyn Condo a Good Idea?

Whether you’re looking for an investment property or a home for your family, a foreclosure might be a good deal for you. However, buying a foreclosure is different from buying a home from a seller and requires different considerations.

Before you sign a contract, consider what you should and should not do when buying a Brooklyn home in foreclosure.

• DO consider the cost of repairs. Foreclosures are sold “as is.” That means the bank will not make any repairs to the Brooklyn home in foreclosure before closing, so you will be responsible for them. For example, if the home needs a new roof, make sure you have enough money to pay for it.
• DO get a home inspection. In a traditional home sale, the seller is required to tell you about any defects or problems they’ve had with the home. However, a bank does not have to supply a disclosure statement because they have not lived in the house and do not have any information about defects.  Make sure you hire a professional home inspector to check the structural integrity and condition of the home.
• DO be prepared to wait. Buying a foreclosure usually takes longer than buying through a traditional sale. You will have to look through and sign stacks of paperwork. In some states, banks are required to go through the court system to sell a foreclosure which can take time.
• DON’T buy a home just because the price is low. Banks like to sell their foreclosures as close to market value as possible. If the price is exceptionally low, there’s a reason why. Make sure you know it. Home repairs can easily add up, turning what you thought was a bargain into a money trap.
• DON’T expect to flip the home for a quick profit. Despite what the get-rich-quick-buying-foreclosures crowd tells you, foreclosures don’t automatically mean you’re getting a steal, nor can you always quickly sell them. Buy a foreclosure because it’s an affordable home for you and your family, not as a way to build an overnight fortune.

When you take your time and do your homework, buying a Brooklyn home in foreclosure can be a great bargain.  I can help you find well-priced foreclosures.  Call me today at (718)253-9600 ext 206 or email me at [email protected].

Charles D’Alessandro

[email protected]
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog Short Sales: A Viable Option for Distressed Brooklyn Real Estate

The real estate market is shifting toward some definite trends that may affect your home for sale in Brooklyn Since 2006, the median cost of a home has dropped almost 30%. The good news, according Moody’s Economy.com, is that most of the nation’s metropolitan areas are expected to see less than a 5% drop in prices a year from now. Even better news, 10% are expected to see modest increases.

If you have a home for sale in Brooklyn, keeping an eye on the trends can greatly increase your chances of selling, no matter what the area. Here are two of the biggest trends:

Trend #1:  Home Prices Staying Down

Home inventories are slowly creeping back up, and another 3 million distressed homes are expected to be foreclosed on this year. As well, one-fourth of current homeowners are now underwater with their mortgages, and 18% of borrowers are choosing to walk away. In short, stressors on the current housing market may very well push national median prices down another 5%, as mentioned above.

How can I take advantage?

With the glut of foreclosed homes, they’re likely to be your highest competition.  That means competing in price could be disastrous. Instead, play up the advantages of your home. For instance, foreclosed homes may need a lot of fixing up.  To compete, make sure your home is inspected and fixed up before it’s listed. Once you know there aren’t a lot of problems add a one-year warranty for the buyer that covers fixes such as the furnace or water heater. It’s inexpensive and may very well make the difference in how quickly and at what price you sell your home.

Trend #2:  Small Homes Selling Faster Than Large Homes

Larger, more expensive homes now have a 20-month backlog in inventory. They cost more and require a larger financial commitment. According to the National Association of Home Builders (NAHB), the median home size dropped from 2,300 to 2,100 square feet since 2007.

How can I take advantage?

If you have a large home, don’t wait until prices dip further; put it on the market now. The major key to getting it sold now is price.  Keep the price competitive, and start out low enough so that you won’t have to drop the price more than once. This is a red flag for buyers.

If you have a smaller home for sale in Brooklyn, you’re already set to take advantage. People also want to lower their energy bills, which usually happens with a smaller home.  Market these advantages for a better chance of selling.

If you want to sell your home, it helps to keep up with the housing trends and look at each one to see how you can take advantage of it.

If you’re trying to sell your home, I can help. Call me at Fillmore Real Estate  (718) 253-9600 ext 206 or email me at [email protected] for more information.

Charles D’Alessandro

[email protected]
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog April 5th – An Important Date for Brooklyn Homes for Sale

As Maria and I take our morning walk around Maine Park Brooklyn we are amazed by the devastation of the many fallen trees from the past storm, 60 in all! Some of the trees are as much as 80 years of age. Our thoughts where, how terrible this is all these trees we will never recover from this it may never be the same again,

Then we walked past to the Marine Park Nature Center, a little further ahead, there where many young trees that where planted a few years back. The trees where budding with flowers and new leaves.  The birds seemed to be getting ready to find the perfect spot to nest and raise their new families, spring is on its way.” A New Beginning”!

In my thoughts where the similarities with the Brooklyn real estate market for the past couple of years. Like the mighty oaks we have grown accustom to seeing each day, as we walk by them full of life expecting continued growth year after year, now is time for us to plant new trees for future generations to enjoy and watch grow.

2010 is that time for growth in our financial markets as well as the Brooklyn Real Estate market. Spring is on its way! It’s time for us to look for that nest to enjoy, and raise our families

The storm has past, time to clean up and start new. For some it may be time to clean up credit reports and others may want to go over their own financial statements and create goal to buy in the future. I believe it is time for a new beginning. Future generations will see 2010 as the beginning of their time of growth.

For others who have waited out the storm “The Clock Is Ticking”, the Federal Home Buyers Tax credit runs out on April 30^th and may never return. This may be you “Perfect Storm”, Low interest rates, fallen prices, Lots of Inventory to select from.

You do not want to be the one to look back and say I shouldda or couldda but didn’t! Make 2010 the time for your new beginning, and start building for your future If you are interested in finding your  Brooklyn home or creating a plan for one in the future call Charles D’Alessandro at Fillmore Real Estate my # is (718) 253-9699 or email me [email protected]

Charles D’Alessandro

[email protected]
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog Renting Your Brooklyn Home While You Wait for it to Sell

— @ WiseStamp Signature. Get it now

As a real estate agent for Brooklyn homes for sale, part of my job is keeping up with current real estate news. Most of the time, I’m largely unsurprised by the news that comes across my desk, but this little tidbit blew me away.

For two years now, we’ve seen mass foreclosures, people walking away from their underwater mortgages and warnings that there’s more to come. Foreclosure numbers reached all time highs, housing prices have reached all time lows and half the country is unemployed. It’s enough to make a homeowner with one of the Brooklyn homes for sale have a mental breakdown.

However, in February, the news went out, flooring most in the real estate industry: severe shortage of property predicted by the middle of 2011. This may sound unbelievable.  (It was a hard one for me to swallow.)  But, the construction industry has also been hard hit by the economic downturn, which means that fewer homes are being built. Combine fewer homes being built with population expansion and suddenly there’s a housing shortage.

Good News for Homeowners

In a recession, people have a tendency to live together because it’s cheaper. College students continue to live with their parents, divorce rates go down and more people share homes. However, we currently have over 300 million people living in the U.S. and we’re down to less than seven months’ inventory.

This is great news for homeowners trying to sell their homes – or even homeowners who just need more equity – although the repercussions may take awhile to spread.

In several high population areas and college towns, the demand forBrooklyn housing is on the rise. As we’ve talked about before, this brings in the age-old laws of supply and demand. The lower the supply and the higher the demand, the higher prices rise. The more value a home has in price, the higher the equity.

So, for those who have Brooklyn homes for sale, take heart! A housing shortage may be hard to believe right now, but, if what the economists say is true, it’s on its way. Stay on your toes, make sure all your ducks are in a row and prepare for the rush on home sales.

If you’re trying to sell your home, or are looking for a great home to buy, I can help. Call me at (718) 253-9600 ext 206 or email me at [email protected] for more information.

Charles D’Alessandro

[email protected]
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog Fillmore Real Estate Tax Credit Sale–Price Improvements Open House Weekend

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A short sale happens when a lender agrees to accept less than the balance remaining on a home. It is a way for sellers to avoid foreclosure and sell their Brooklyn homes.

It seems like a good idea for people who owe more on their home than it’s worth, but that doesn’t mean it is right for everyone. Should you consider a short sale on your Brooklyn home?

Pros to doing a short sale:

• You will be able to sell your property, get out from under a mortgage you cannot afford and lower your debt.
• You can still sell your property in a declining real estate market, even if you owe more than the home is worth.
• Buyers sometimes get good deals on the property or may be able to buy a home at market value in a popular area they couldn’t previously afford.
• While a short sale isn’t ideal, it is typically better than a foreclosure which stays on your credit report for 10 years.
• If your home goes into foreclosure and is sold at auction for less than the mortgage, you can still be held responsible for making up the difference.

Cons to doing a short sale:

• The lender may refuse to do the short sale, or they may still hold you responsible for the remaining debt.
• The bank’s loss is considered taxable income for you, and you may have to pay taxes on the amount.
• Short sales do stay on your credit report and may make it difficult for you to a get loan in the future.
• You may have to find a real estate agent willing to work for a smaller commission.
• Short sales take longer to close than traditional home sales.

I can help you decide if a short sale on your Brooklyn home is right for you. Call me today at (718) 253-9600 ext.206 or email me at [email protected] for more information about your selling options.

Charles D’Alessandro

[email protected]
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog Should You Consider a Short Sale on Your Brooklyn Home?

The extension of the homebuyer’s tax credit, as well as the expansion to include upgrade homebuyers, has a lot of people looking for their dream home. Many are looking for that dream home in the listings for Brooklyn foreclosures. Why?

The Law of Supply and Demand

Quick marketing lesson: every market is dependent on the law of supply and demand. When the demand for a product is higher than the supply, prices go up. When there’s more product than demand, prices go down.

This is what’s happening now, especially with Brooklyn foreclosures. Around the U.S., the supply of homes has doubled in the past two years, reaching as high as a ten-month supply. While Brooklyn homebuyers have been reluctant to buy a foreclosure in the past, people are starting to rethink the situation because:

• Foreclosures are usually less expensive than traditional homes for sale.  In fact, some buyers have found their dream home and bought it for pennies on the dollar.

• Foreclosed properties are generally in better condition that they used to be.  In the past, foreclosed homes had a higher than average amount of repairs needed compared to other homes for sale. This is no longer necessarily true. Many foreclosured homes have been lovingly taken care of by their previous owners.

• Potential buyers of foreclosures have a wider variety from which to choose. They aren’t stuck with just one type of house in one Brooklyn neighborhood. For the careful new homebuyer, the possibilities really are almost endless.

Most foreclosed homes aren’t money pits. To protect yourself, make sure your real estate agent includes in the contract that you want to have the home inspected, and that if the home inspection finds major problems, you then have the right to walk away from the deal.

If you’re looking for a great home at a great price, I can help. Call me at Charles D’Alessandro of Fillmore Real Estate at (718)253-9600 ext 206 or email me at [email protected] for more information.

The FHA, or Federal Housing Administration, has helped many a homeowner buy a Brooklyn home for sale by providing mortgage insurance through FHA-approved lenders. However, a change in policy, announced in January, may make it harder for those with poor credit.

Before we talk about FHA’s change in policy, let’s cover a few of the basics about the FHA and how it might help you buy a Brooklyn home for sale.

What is the FHA?

The FHA is a government agency that provides mortgage insurance to approved lending institutions.  It assists home buyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults.  This encourages lenders to make loans to borrowers who might otherwise not be able to get a loan.

What is an FHA Loan?

An FHA loan is a loan provided by an FHA-approved lender and insured by the FHA. In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay. Because of this guarantee, lenders are willing to make mortgage loans.

An FHA loan might help you get a mortgage by providing:

• Lower down payments
• Lower closing costs
• Easier credit qualifications

Now let’s talk about the changes FHA is making…

The Future of FHA Loans

Until recently, the FHA has managed to weather the real estate turmoil rather well. In fact, the turbulence surrounding other lenders had potential homebuyers flocking to take advantage of FHA loans. However, even FHA’s bank account is starting to suffer. In order to shore up capital reserves and keep 34 million families in their homes, the FHA is changing the rules.

Before the changes, borrowers were required to pay a down payment of 3.5% of the cost of the home. Now, borrowers with a credit rating below 580 will be required to pay at least a 10% down payment. As well, the good upfront mortgage insurance premiums of 1.75% are increasing to 2.25%. The FHA is now trying to get Congress’ approval to raise the annual premiums from 0.55%, although the amount it will seek is still unknown.

What This Means for You

If you’re interested in buying a Brooklyn home for sale, but haven’t because you’re waiting for the market to bottom out, you may end up losing out on a great deal. With almost record low mortgage rates, home values lower than they’ve been for eight years, the first-time and upgrade homebuyer tax credits and a wide selection of homes, there may never be a better time to buy.

Whether you want to use an FHA loan or a traditional home loan, I can help you cash in on this great buyer’s market. Call me Charles D’Alessandro you Brooklyn Realtor® at Fillmore Real Estate today at (718)253-9600 ext.206 or email me at [email protected].

Charles D’Alessandro
[email protected]
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog 10 Ideas to Save Money and Make Your Brooklyn Home Greener

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