Posts Tagged ‘brooklyn real estate’

Is It True? Answering Myths About Real Estate Agents!

Monday, August 30th, 2021

real estate agent writing myths or facts

There are many myths about real estate agents floating about; many have been hanging around for years. Since 1900 real estate has been a profession, and many myths about real estate agents still exist.

Having over 30 years of experience in the Brooklyn real estate market, I can address these misunderstandings. In addition, I think I may have answered questions from family, friends, and clients over the years related to all 15 of these myths.

Real estate agents earn a 6% commission.

It is important to remember that commission is always negotiable. But, an average commission would be around 6%. That is a contractual agreement between the seller and the listing agent and brokerage they choose to sell their home. After a home sells, the 6% commission is split between the brokerage representing the seller and the brokerage representing the buyer. Assuming that is a 50/50 split, each brokerage receives a 3% commission.

The commission is split even further between the brokerage and their agent, depending on their agreed-upon split. For example, if that split were 50/50, the brokerage received 1.5%, and the agent received 1.5%. From the agent’s 1.5%, the fees the agent pays the brokerage are deducted. An individual agent in this scenario may only receive 1 – 1.5% of the sales price in commission depending on the brokerage fees they are required to pay. Although it sounds like a high commission, after splitting the commission several ways and paying for fees, you can see the agent only receives a small percentage of the total.

Real estate agents receive a salary.

Real estate agents receive compensation on a commission basis. Agents do not receive payment until the property closes. They work for 2-3 months or more before ever receiving any compensation for their time. If the sale falls through, an agent will not receive payment for their time and effort invested in the transaction.

Lenders, title companies, and inspectors pay real estate agents a kickback.

Kickbacks are defined as “an illegal payment intended as compensation for preferential treatment or any other type of improper services received.” An agent may have a legal arrangement with preferred service providers but must disclose their interest in any partnership to their clients. The U.S. Housing and Urban Development oversees the Real Estate Settlement Procedures Act (RESPA), which includes disclosure laws and prohibits kickbacks, referral fees, and unearned fees. RESPA is a highly regulated act. 

Real estate agents get reimbursement for their expenses.

Agents are not reimbursed for expenses from their brokerages. This is because they are running their own small independent business under the umbrella of their brokerage. Therefore, they are responsible for their expenses, including gas, car expenses, insurance, office supplies, office copies, renting a desk within the broker’s office, E&O insurance, MLS fees, etc. 

The real estate agent’s brokerage pays for marketing and advertising expenses.

Many brokerages advertise as a group. It appears that the brokerage is adverting properties, but in actuality, the agent is paying to participate in the ad. Like other general business expenses mentioned above, the real estate agent is responsible for all marketing and advertising expenses. These include professional photos, staging, brochures, advertising online and in print, etc.

Real estate agents get rich quickly.

Real estate sales is not a get-rich-quick career. Having 3-6 months’ worth of living expenses is a good rule of thumb for new real estate agents as they begin their careers. An agent can work with a buyer or seller for months before a property goes under contract. Once under contract, it can take 45-60 days for a home to close and the agent to receive their first commission check. Maintaining a consistent income takes discipline and a ton of effort for real estate agents. There is constant lead generation, contract preparation, listing appointments, showing homes, negotiating contracts, and facilitation of the closing that keep a real estate professional working long hours. Reaching a high percentage of referrals from past clients, friends and family is the goal of all career real estate agents. It takes time to build those relationships.

Real estate agents make too much money.

The National Association of Realtors tracks the average income of real estate agents annually. In 2019, the nationwide average was $49,700. Their study shows that agents with 16 years or more of experience average $86,500. Many find these statistics surprising. The confusion comes from agents advertising they are multi-million dollar producers. Multi-million dollar refers to the total sales price of the homes they sell. If an agent sold $2,000,000 in homes that averaged $250,000 each, they only sold 8 houses and may have only earned around $30,000, but they technically qualify as a multi-million dollar producer. That is a far cry from actually earning a million dollars.

Real Estate Agents are expensive to hire.

Hiring a real estate agent may cost you, but not hiring a real estate agent can cost you more. For example, did you know that sellers who choose to sell for sale by owner usually end up selling their home for less than they could with a real estate agent representing them? Not knowing the legalities of a real estate transaction can also cost you money. A real estate professional understands the local market and stays current on trends and issues that may affect a real estate transaction. If you are not a real estate agent yourself, do you have time to learn all the intricacies of the market?

Signing a contract with a real estate agent means you are stuck with them.

You should understand the terms of any contract before you sign. Most listing contracts and Buyer agency contracts have a defined period that will be effective. Ask the agent questions to understand how you can remedy any issues in your working relationship. For example, many brokerages will allow you to cancel or switch to a different agent within the brokerage to fulfill the contract period if you are dissatisfied with the agent you first contracted.

Working directly with a listing agent will save me money.

As a buyer, working with a listing agent can be a costly move. The listing agent’s fiduciary responsibility is to the seller. They may not have your best interests at heart. Representing both parties in a home sale is a tricky situation. This type of representation is Dual Agency. Some states permit dual agency, and others prohibit it. The states that prohibit dual agency are Alaska, Colorado, Florida, Kansas, Maryland, Texas, Vermont, and Wyoming. Here is a link to a previous blog post that discusses additional mistakes buyers may make.

A real estate agent can’t sell you a For Sale By Owner.

Most sellers who choose to sell their homes For Sale By Owner will pay a commission to the agent who brings a buyer. They are happy only to pay part of the commission. Because buyer agency is so common now, For Sale by Owners know that most buyers want to work with an agent. If they are not willing to pay the commission, they could lose many potential buyers. If you see a For Sale By Owner, it is best to have your real estate agent contact them first. Your agent can discuss the commission issue and set an appointment for you to see the home.

Real estate agents want you to pay higher prices because they earn more.

When you work with a buyer’s agent, their fiduciary responsibility is to you and your best interest. An agent will indeed make a higher amount based on the sales price. But the additional amount they would make would not be an incentive to disregard their duties to you as their buyer’s agent. A $10,000 difference in sales price would only net the agent approximately $150 more based on a 3% commission and a 50/50 split with their broker. A code of ethics governs a real estate professional. They take their responsibilities seriously. Not doing so could end up with a fine or suspension of their license.

Real estate agents can only show you their company’s listings.

An agent who is a member of the local Multi-List Board can show you any property listed in the MLS regardless of which company holds the listing. It is rare to find an agent who is not a member of the Multi-List these days. Therefore, the brokerage that offers the home for sale is statistically not the same brokerage that sells the home.

Real estate agents can work whenever they want.

Real estate agents are independent contractors. They do not have to punch a time clock every day. However, they do need to be available when their clients are available. So what may look for the outside as a flexible schedule may not indeed be. You may see your local real estate agent at the gym in the afternoon, but what you may not see is your local real estate agent working in the evening showing homes to their clients or missing an event because their client needs them.

National website portals are better than real estate agents.

National website portals have changed the way real estate agents do business. But it has not replaced an excellent local real estate agent. Real estate portals are fed through the local MLS. It takes time for a property to upload from the MLS to the website portals. Some days it seems to happen quickly, and other days it takes longer for that to occur. Your real estate agent can set up a search in the MLS to notify you when a new home is listed that meets your criteria. Getting that information quickly has been a definite advantage in the local sales market we have been seeing. Relying on your local real estate expert is the better route to take. Your local expert knows the market and has information that the national website portal may not provide.

I hope this gives you a better glimpse of what it is like to be a real estate agent. Most real estate professionals do what they do because they love helping people. They are great problem solvers and lifelong learners. Every real estate sale is different, and agents are continually honing their skills. 

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 answer your real estate questions. You can reach me by phone at (718) 253-9500 ext. 1901 or by email at [email protected].

Charles D'Allesandro

S’more End-of-Summer Insights to Get Your Brooklyn Real Estate Sold

Friday, September 7th, 2012

 

Summer is quickly drawing to a close. That means you need do some serious evaluating in order to take advantage of the rest of the season’s long daylight hours and get your Brooklyn real estate sold.

So before you spend the evening catching fireflies and roasting marshmallows, buckle down and get s’more work done on your Brooklyn real estate. Below are five ways you can prepare your home and yourself for the big sale!

Host a block-party barbecue. People in the neighborhood are a great resource to tap into to market your home. Host a party to tell them your plans and allow them to see your home. If they have a friend they want to have nearby, they might just sell your house for you.

  1. Make your yard memorable. Summer is the ideal time to spruce up your curb appeal so that your home makes a good first impression on potential buyers.
  2. Repair the roof. This can be a big expense, but it is also one of the first things that home inspectors note. If it needs repairs, do it now. If you don’t, it could cost you more money when it comes time for closing negotiations.
  3. Eliminate odors. Buyers want to imagine themselves living in the home, not be distracted by how they’re going to get the summer-intensified smell of your pet out of the carpet.
  4. Know your minimum price. You need to prepare yourself for the numbers game. Do your research using comparables to determine what your house will most likely go for and what you’re willing to accept.

 Use what’s left of summer to make your Brooklyn home stand out from the rest! You’ll sell quickly and can start looking forward to next summer in a new home — maybe one with a pool.

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 aFree Market Price Evaluation without obligation!

 

 

U.S. and Brooklyn Real Estate Continue to Improve

Tuesday, June 19th, 2012

 

Economists say and statistics show that there are true signs of improvement in the most recent housing figures for U.S. and Brooklyn real estate markets. Here are a few of those stats:

Investors bought 1.23 million homes in 2011, up 64.5 percent over 2010, according to data from the National Association of REALTORS®. 

  • The median investment-home price was $100,000 in 2011, up 6.4 percent from $94,000 in 2010.
  • Single-family home sales rose 3 percent in April.
  • New home sales increased 3.3 percent in April, according to new Commerce Department data.
  • Sales of existing homes rose in April, up 10 percent from April of 2011.
  • The median price of existing homes nationwide also moved up to $177,400 from $164,800. This is the biggest year-to-year gain since January, 2006.

In addition to good news in both nationwide and Brooklyn real estate, there’s also good news about the economy:

Economic growth is now projected to grow by 2.4 percent this year, up from a 2.2 percent forecast in February.

  • The new job creation forecast, which is the most watched economic indicator, has also improved. The data now shows that 188,000 new jobs will be created each month this year, which is up from the 170,000 new jobs per month forecasted earlier this year.

As you can tell from this data, if you want to buy Brooklyn real estate while prices are at their lowest, you shouldn’t wait a minute longer. 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].. to get started!

 

 

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.

Take the Leap and Purchase Brooklyn Real Estate this Year

Thursday, February 23rd, 2012

Is your family starting to feel cramped in your current house, or are you ready to quit renting and start investing? With the extra day added into this leap year, you have an additional 24 hours this month to decide if you’re.

Not sure how to decide if this is the year? Whether you’re a property-purchasing pro or a first-time home buyer, take a look at the three points below to determine if you’re prepared to take the leap and invest big.

You have a sizeable down payment. Knowing what you can actually afford is half the battle. A good estimate is to triple your household income, and that will roughly be what you’ll want to spend. Whatever you’ve saved as a down payment can go on top of that or, if you’re frugal, can just be used to reduce your monthly payments. The larger the down payment you have, the smaller your mortgage payments will be, and it could possibly get you a better interest rate.

  1. You have a good real estate agent. It’s important to find a trustworthy, competent agent before you find your dream house. Take the time to thoroughly interview agents and get referrals. You’ll want to make sure you have someone who is knowledgeable about the Brooklyn real estate market to help you make one of the biggest decisions of your life.
  2. You have a brag-worthy credit score. Strike while the iron is hot! If you’ve taken the time to build up and ensure a great credit score, use your good standing to take advantage of today’s low interest rates.

If you meet all three qualifications, consider taking advantage of this month’s extra day, as well as the low interest rates and home prices, and leap into a new home. Please call Call Charles D’Alessandro of Fillmore Real Estate at (718) 253-9600 ext 206 or email me at [email protected] if you have questions concerning your credit score and down payment, or want to work with a knowledgeable Brooklyn real estate agent.

The Bottom is Here and It’s Time to Buy Brooklyn Real Estate

Tuesday, February 14th, 2012

The latest statistics indicate that the U.S. real estate market is at or very close to the bottom right now. And it may be  Time to Buy Brooklyn Real Estate !

On January 18, Bloomberg News reported, “Confidence Among U.S. Homebuilders Climbs to Highest Since 2007.” Bloomberg said, “The confidence measure, which increased for a fourth straight month, improved in all four regions of the U.S. This is ‘yet another indication of the gradual but steady improvement that is beginning to take hold in an increasing number of housing markets nationwide,’ Bob Nielsen, chairman of the National Association of Home Builders and a builder from Reno, Nevada, said in a statement.”

The official data on home prices might not show the recovery yet, because they are always months behind, but most other data indicates that in general the housing market has hit the bottom.

Right now, homes in America are the best value they’ve been in many generations. And right now, mortgage rates are off-the-charts low. In short, now is the time to buy Brooklyn real estate.

The reasons to buy now are incredibly basic:

Of course, there is no guarantee that this is the bottom. But with prices this low and with very few other great places to invest your money, now’s the time to seriously consider buying Brooklyn real estate. If you can buy now and hold on to it for a few years, it could be one of the lowest-risk, highest-reward investments you ever make.

If you’re still not convinced real estate is one of the best values out there right now, please give 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] I will share specific numbers with you about our Brooklyn real estate market.

Brooklyn Real Estate Deal of The Week

Thursday, February 9th, 2012

Ditmas Park Professional Building

Ditmas Park Corner Property for Sale CLICK ON PICTURE FOR MORE INFORMATION

Ditmas Park Professional Building. Two family converted to dentist office with professional tenants,

corner property close to transporation. For more information, Call Charles D’Alessandro your Brooklyn Realtor®

with Fillmore Real Estate today (718) 253-9600 ext 206

or e mail me at [email protected] today for private tour and or

Open House Schedule !

for these or any other Brooklyn House For Sale, priced to deal !

Show the Love with Heart-Warming Photos of Your Brooklyn Real Estate

Thursday, February 9th, 2012

In honor of Valentine’s Day, sellers should take this month to highlight what they love best about their homes for sale. Instead of just focusing on the square footage, buyers will get the chance to see what makes your Brooklyn real estate surprisingly special. The best way to project a loving image is to let Cupid take over and shoot your home — with a camera, of course.

As a seller, you constantly hear tips about de-cluttering and depersonalizing a home that’s on the market. However, when you’re taking pictures to post online, be sure you capture the details you love most about your home, because buyers are likely to love them too. Below are a few photography tips to get you started:

Capture the heart of your home. Ensure that you get pictures of all the living spaces, from the kitchen and living room to the finished basement and backyard. Any place that a family will spend most of its time together should be highlighted.

  • Make sure you have good lighting. Photograph on a day when there is a lot of natural light coming through the windows. Also be sure to turn on all inside lights and lamps — this gives your home that cheery, glowing feeling.
  • Highlight your home’s best features. Do you love your wrap-around porch, built-in bookshelves, shaded backyard or beautiful stained glass windows?  Be sure to showcase each of those unique features in the photos of your home. You might be surprised at what catches the eye of a potential buyer.
  • Double-check your online upload. Take care to verify the online uploading of your photographs. Carefully read website parameters for picture size and captioning. This will probably be many potential buyers’ first impression of your home, so you definitely want to make it a good one!

Don’t just quickly snap pictures using your phone. Be sure to employ a little love and effort when capturing your Brooklyn real estate. Then you’ll highlight its best features and pass on that heartwarming image to potential buyers.

If you’re looking for a Brooklyn real estate agent who will photograph your home to show off its best features and market it extensively online and off, please call me, 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]

What You Need to Know About First-Time Buyers Before Selling Your Brooklyn Real Estate

Thursday, December 22nd, 2011

Should you be marketing to first-time home buyers in order to sell your Brooklyn real estate? The 2011 National Association of REALTORS® Profile of Home Buyers and Sellers has a wealth of information on first-time home buyers and will help you figure out if you should market to this large and important group of buyers.

Here are the stats (courtesy of AgBeat.com) you need to know about first-time home buyers before selling your Brooklyn real estate:

  • Long-term survey averages show that 4 out of 10 buyers are typically first-time buyers. This segment is critical to a housing recovery because they help existing home owners sell and make a trade.
    • The median age of first-time buyers was 31 and the median income was $62,400, up from $59,900 in the 2010 study.
    • The typical first-time buyer purchased a 1,570 square foot home costing $155,000.
    • First-time buyers who financed their purchase used a variety of resources for the down payment: 79 percent tapped into savings; 26 percent received a gift from a friend or relative, typically from their parents; and 7 percent received a loan from a relative or friend. Nine percent sold stocks or bonds and 8 percent tapped into a 401(k) fund.
    • Ninety-four percent of entry-level buyers chose a fixed-rate mortgage. Fifty-four percent of first-time buyers financed with a low down payment FHA mortgage, and 6 percent used the VA loan program which requires no down payment.

What this Information Means to You

If you’re selling an existing, entry-level home, you’ll most likely be selling to a first-time home buyer with a median age of 31 and a median income of $62,400. First-time home buyers are most likely to get a fixed-rate, FHA mortgage. Gear your marketing toward that buyer to have more success.

If you’re ready to sell your Brooklyn real estate, whether it appeals to first-time buyers or other types of buyers, I’ll market it to get it sold quickly and for as much as possible. Give me a call  Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate for more information. at 718/253-9600 ext 206 or email me at [email protected]