Do you know how closing costs actually work? Or, how you’d use CMAs (comparative market analysis) to evaluate Brooklyn New York real estate? And, can you decipher all of the abbreviations and acronyms, such as FDR, lo dues and MLS.

Purchasing a home is frustrating enough without having to go through the frustration of decoding all the complicated speak and legalese. If you brush up with a real estate dictionary before your home-buying search, you’ll gain valuable knowledge and save yourself a lot of time and headaches in the long run.

Basic lingo every Brooklyn New York real estate buyer or seller should know …

• ARM – This stands for Adjustable-Rate Mortgage, which is a type of mortgage where the interest rate periodically adjusts.
• Closing costs – These are miscellaneous expenses buyers and sellers pay upon closing; they usually include brokerage commission, escrow taxes, recording fees, etc.
• CMA – This stands for Comparable Market Analysis, which is a report of recently sold, comparable homes in the same market as the home you’re selling.
• ERV – Estimated Rental Value
• FDR – Formal Dining Room
• Fixture – Anything that is permanently attached to the home, such as door knobs, carpeting, light fixtures and landscaping
• FP – Fireplace
• HDW – Hard Wood Floors
• Lo dues – Dues paid to the homeowners association
• MLS – Multiple Listing Service, which is an organization that compiles multiple listings into one report and distributes it to all of their realty members.
• PSF – Per Square Foot
• Sale price – The actual price at which the property sells.

Don’t let the hectic housing market overwhelm you.  If you understand Brooklyn New York real estate lingo, you’ll be more knowledgeable and able to easily achieve your real estate goals.

If you have questions about any of these terms or want help achieving your real estate goals, call me Charles D’Alessandro of Fillmore Real Estate, your Brooklyn New York Realtor® at (718) 253-9600 ext 206 or email me at [email protected] for more information.

The debate is as old as the real estate industry.  Does a low, highly competitive selling price for Brooklyn real estate actually generate a faster, more profitable sale than a slightly inflated price with a willingness to negotiate?  Yes, it is an age-old debate.  Yes, it has never been more important that sellers make informed decisions about their asking price and negotiating strategy.

A seller with an unreasonable opinion of their Brooklyn home’s value is either a wishful thinker or does not have the benefit of an accurate comparative market analysis and a real estate agent who specializes in the area.

Get Real, Know the Facts

When sellers decide to list their home in the Brooklyn real estate market, they usually have an opinion of value based on reported sales of similar properties.  Consciously or subconsciously, most homeowners follow the real estate activity of surrounding homes.

However, every real estate transaction stands independently.  In today’s market, buyers and sellers negotiate to capitalize on tax incentives, green-initiative improvements, closing fees, homeowner credits and local incentives.  Thus, the “neighborhood selling price” may not represent the price you can actually get for your Brooklyn home.

Real estate agents use differing strategies to secure listings and set sales prices.  Therefore, a seller who requests proposals from three different Brooklyn real estate agents may well get three different opinions of value:

1. One agent may want the listing at any price and be willing to accept an owner’s requirement for a high asking price just to land the listing.
2. Another agent may be conservative and encourage a low asking price in the hopes of generating superior demand.  This strategy was effective in the boom years of 2006 and 2007.
3. A third agent may combine his knowledge about the property, the neighborhood and today’s real estate market to come up with the optimal listing price.

The Optimal Listing Price

Responsible Brooklyn real estate agents view the property from three postures.

1. First we inspect the property, top to bottom.  We understand its history, the neighborhood, its strengths and its weaknesses.
2. Next, we do our research.  We compile a complete, relevant list of recent sales, a thorough list of properties on the market and a comparable list of recently concluded Brooklyn real estate transactions.
3. We balance this information against the cost of new construction.  We factor in what improvements might be necessary to stage the home more effectively.  And, we use this quantitative analysis, called a comparative market analysis, to recommend a strong selling price designed to garner demand.

This is not a whimsical exercise.  This is about establishing the maximum selling price your Brooklyn real estate should achieve.

To further discuss how you can realize the greatest real estate value for your home, contact me, Charles D’Alessandro your Brooklyn Realtor® with Fillmore Real Estate today at (718)253-9600 ext 206 or by email at [email protected]

Charles D’Alessandro

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

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