In the heart of urban landscapes and suburban neighborhoods, a new transformation is underway.
The concept of sustainability and green energy isn’t a new idea but its significance and integration into various sectors, including real estate, has gained a great deal of traction in recent years.
As concerns about environmental sustainability and climate change continue to grow, the pursuit of cleaner energy alternatives has shifted from a select few to more of a necessity. Solar power isn’t just changing buildings, it’s reshaping how people think about their property.
From rooftops that contain solar panels, to energy-efficient upgrades, the combination of solar technology and real estate is paving the way towards a greener future.
Solar panels, once thought of as a luxury to a home, will now be mandatory in New York City under NYC’s Local Laws 92 and 94 passed by the City Council in 2019 as part of the Climate Mobilization Act. The CMA, otherwise known as NYCs Green New Deal, is part of the plan to guide the city towards carbon neutrality by 2050.
Local Law 94 requires sustainable roofing zones on all new construction and major roof renovations while Local Law 92 adjusts those requirements for smaller buildings.
Making the switch to solar in New York will allow homeowners to take advantage of the ongoing federal, state, and local incentives, including tax credits, rebates, and beneficial net metering policies. Important to note, most incentive programs are only authorized for a certain period of time or until funding runs out.
As more and more homeowners look towards ways of upgrading their homes with cleaner energy sources, the move in this direction is becoming more common than it was previously. It’s changing businesses and how people live.
In this change, the real estate industry is at the forefront. It’s showing how we can create buildings that are innovative and good for the environment. Plus, properties become more valuable as we move towards a greener future.
We’re breaking down the top five reasons why the impact of going green is significant on the real estate landscape.
Increased Property Values
Embracing green initiatives, such as energy-efficient upgrades inside your home, think HVAC systems, smart thermostat, heat pump water heater, along with renewable energy installations like solar panels, can substantially increase a property’s value. Prospective buyers and tenants are becoming increasingly more drawn to homes and buildings with lower operating costs and reduced environmental impact, making green features a valuable selling point.
Attraction to Environmentally Conscious Buyers
Going green appeals to a growing demographic of environmentally conscious buyers and renters. People are seeking homes that align with their values, making properties with sustainable features more appealing and potentially leading to quicker sales or leases.
Going green is no longer just a “trend”.” More and more people care about the environment and want to live in a place that reflects how they feel. When a property already has things like energy-saving technology and appliances or solar panels, it becomes really attractive to prospective buyers and renters.
These types of additions are what buyers look for and knowing that the property already has them and is one less project for them to take on, can be even more appealing. The same way some buyers look for amenities like a backyard oasis complete with a swimming pool, others look for a home already outfitted with environmentally conscious additions.
Regulatory and Incentive Support
Government incentives, tax credits, and rebate programs are often available to promote green initiatives in real estate. These incentives can offset the initial costs of implementing environmentally friendly features, making it more financially viable for property owners to invest in sustainable upgrades.
Long-Term Resilience and Marketability
When it comes to going green, it’s important to think about the future long-term. Newer buildings are built to higher standards of durability and resilience in an effort to withstand the impacts of climate change and changing regulations.
When a property is built in a way that makes it strong and able to handle a variety of situations, it becomes more attractive to potential buyers and renters even as new rules or changes in the environment evolve. Property value won’t easily go down because it’s well-prepared to face challenges that might come up later on down the road.
The integration of solar panels and other clean energy technology stands as a beacon of progress, offering not only the promise of reduced energy bills but enhancing our property’s value while playing a vital role in protecting our environment.
When purchasing a home, regardless of whether you’re a first time buyer, making informed decisions is an extremely important part of the home-buying process.
You need to think of the process as more than just transactional, it is a commitment that can have long lasting effects on your financial stability and overall well-being. Purchasing a home is a significant investment that requires potential buyers to carefully consider what it is they’re committing to for the foreseeable future.
That’s why understanding the key factors involved is crucial. You want to ensure you’re making the right choice and avoid any potential pitfalls along the way.
While it may seem as simple as heading out with your local real estate agent to look at properties, and fingers crossed, find the home of your dreams, the home-buying process as a whole is not as simple as it sounds.
It goes beyond simply finding a place to live; it involves evaluating your financial readiness, understanding the real estate market, and being aware of the various factors that can influence the decision-making process.
By understanding these factors, potential buyers are able to make informed choices that align with their needs and long-term goals as a homeowner.
Are you thinking about buying a home? If so, before you get started, we’re sharing seven key factors that can impact your decision making process.
Budget – Before starting the search, ask yourself, how much can I comfortably afford and then determine your budget. It’s important to evaluate your budget and determine how much you can realistically afford before you actually start looking at homes.
Consider your income, expenses, lifestyle, and any existing debts. Calculate a realistic budget that includes not only the mortgage payments but also other costs like property taxes, insurance, maintenance, and utilities.Understanding what your expenses will look like allows you to look at homes within your budget.
Location – The location of a property is a big factor to consider. What is the proximity to schools (if applicable), work, transportation. Research the neighborhood’s reputation, crime rates, and future development plans to ensure it aligns with your lifestyle and long-term goals.
Property Type and Size – Determine the type of property that suits your needs, whether it’s a single-family home, condominium, townhouse, apartment. Consider the size and layout of the property, the number of bedrooms and bathrooms, and any specific requirements you may have, such as a backyard or a home office space. Consider the items that are non-negotiable on your wish list. Knowing ahead of time will allow your real estate agent to share only the properties that fit your criteria.
Condition – When looking at homes, look closely at the condition of the property and identify any potential renovations needed. Are you willing to invest time and money in repairs or renovations, or do you prefer a home that’s move-in ready? Answering these questions beforehand will save you time when looking at potential properties.
Financing Options – Research interest rates, loan terms, and eligibility criteria to find the best option that suits your financial situation. A good place to start is by having a conversation with a mortgage broker who can answer all of your questions and help you determine exactly how much you can afford.
Real Estate Market – When looking for a home, it’s important to understand the current state of the real estate market in the area(s) you’re interested in. Research property values, market trends, and the potential for future growth. This knowledge can help you negotiate a fair price and make a sound investment.
Emotional Preparedness – : Buying a home is an emotional process. It’s an exciting time but it can also be stressful at various stages throughout. Having a clear understanding of your wants and needs, and a willingness to compromise can help alleviate some of that stress. Patience, resilience, and a level-headed approach will help you navigate the process more effectively.
By taking these key factors into account, potential buyers will be well-equipped to navigate through the home buying process and find the home of their dreams.
As the beginning of the year progresses and people become more settled in their routines, many homeowners find themselves thinking about a possible change of scenery.
We’re not talking about taking a vacation, although if you live in a colder climate you just might be planning one, the type of change many people think about this time of year is one that is a bit more permanent.
Believe it or not, the beginning of a new year is typically when people think about selling their homes for a handful of reasons. Several factors include the desire for a fresh start, changes in personal circumstances, improved housing market conditions, or the desire to take advantage of the traditionally busy spring buying season are a few top of mind reasons.
Additionally, the start of a new year is often seen as a time for new beginnings. The quest for a fresh start can also prompt people to consider making changes to their current living situation, which can include selling their home and moving to a new one (whether it be local or out of state).
Once the decision to sell has been made, it’s always a good idea to begin preparing your home before listing to make it more appealing to potential buyers. This can help to increase the chances of selling quickly and for a higher price.
Before you jump into any projects, the number one thing you should do is accurately determine the value of your property. Understanding where the real estate market currently is will help to set an appropriate, and also competitive, asking price. An accurate home value will not only help attract potential buyers, but it will also help you avoid leaving money on the table.
Once you determine the value of your property, there are additional things to consider before putting out the for sale sign. A few important factors to keep in mind include:
Timing
Consider the current market conditions and what’s happening in your local real estate market. If there are too many homes for sale in our area, you may want to wait until there is less competition. This is when having an experienced real estate agent pays off because they can provide the knowledge to help you make an informed decision.
Repairs and Improvements
Look around your home, are there repairs that you’ve been putting off? Consider making any of the necessary repairs or upgrades that you’ve had on the back burner. Doing so will help increase the value of your property and make it more appealing to potential buyers.
Hiring a Real Estate Agent
There are numerous reasons why it is a smart idea to hire a real estate agent. A real estate agent brings their expertise and experience to the complex process and can provide a smoother and more successful home-selling experience.
They know the local market, have access to the data, and understand the nuances of the process, making them the right person to help you navigate what could be a stressful and confusing process.
Additional expertise a real estate agent brings includes:
Closing Costs
Be prepared for the closing costs involved in selling a home. These costs include the real estate commission, transfer taxes, and title insurance.
Negotiations
Get ready for potential buyers to negotiate. Have a clear understanding of what you are willing to accept as well as what you are not willing to compromise on.
Once the decision to sell has been made and the above addressed, it’s time to jump into any of those projects that need to be completed before you put your home on the market. You want to ensure your home is in good condition and appealing to potential buyers.
While the projects that should be addressed are unique to each seller, we’re sharing a few common ones to consider:
As you consider making any type of home improvements, look at your budget and keep in mind not all projects are worth the investment. Review how much things will cost and the potential return on investment. Don’t forget, your real estate agent can also provide guidance on which projects will have the most impact and which ones may not be necessary.
To flip or not to flip, that is the question. For some people, the idea of flipping a home (or homes) to turn a quick profit is exciting, while for others, the thought of long-term financial gain is a lot more attractive.
Flipping a house involves purchasing a property, renovating it, and then selling it for a profit. This strategy can be a quick way to make a large ROI (return on investment) but it also carries a certain level of risk.
On the other hand, buying a rental property can provide a steady stream of passive income, but requires a long-term commitment as well as the ability to handle the responsibilities of being a landlord.
Two very different real estate investment strategies, each with their own pros and cons. Which strategy is right for you? There is no right or wrong answer, it all depends on what fits your lifestyle and aligns with your financial goals.
The decision of which one to choose also depends on your risk tolerance and level of experience, two very important factors when deciding between flipping a house or renting it. Why? Because depending on which you choose will affect your ability to handle the risks and responsibilities that come along with each strategy.
If you are considering jumping into the world of real estate investing but are unsure which approach best fits, we’re breaking down each one so you can have a better understanding of the unique advantages and disadvantages associated with each.
Flipping Houses
This route can be a high-risk, high-reward strategy. It requires a significant amount of capital and a willingness to take on the financial risks associated with renovating and selling the property.
Something to keep in mind, flipping a house is not investing because while there is the opportunity to make a lot of money, you have to earn it (i.e renovations). Flipping a house takes a great deal of work and often a great deal of patience.
Regardless of whether you’re doing the renovations yourself, or contracting out the jobs, you’re still required to take an active role in making sure all of the work gets approved and completed correctly.You are spending both time and money when you flip a house.
Pros include:
Cons include:
Rental Properties
On the other hand, buying and renting out a property is generally considered a lower-risk investment strategy. It can provide a steady stream of passive income, but it also requires long-term commitment and the ability to handle the responsibilities of being a landlord. This includes finding and vetting tenants, dealing with repairs and maintenance, and handling evictions if necessary. An investor who has a lower risk tolerance, or who is less experienced in dealing with the responsibilities of being a landlord, may find this strategy more challenging.
Pros include:
Cons include:
Before deciding to rent or flip a home, it’s important to carefully evaluate all of the pros and cons, assess your tolerance for risk, your level of experience, which strategy you’re more comfortable with, and decide which strategy aligns best with your lifestyle and goals.
Once you’ve made the initial decision to start buying property to rehab, your homework officially begins.
In our previous blog, we discussed the basics, which included developing a plan and gathering all of the information needed to form the right team to turn your vision into a reality. Now it’s time to begin the property search.
Sounds fairly simple, but it’s actually a bit more detailed than you might think. A lot goes into the process. To help you get started, we’ve broken out below four main points to keep top of mind as you get started.
What Makes the Best Markets?
One of the most important decisions you’re going to be faced with is, where do you want to buy? When thinking about this question, consider the best places with desirable locations. There are great opportunities all over, you just need to know what you should be looking for.
Do you remember the common expression, location, location location? It is everything! Focus your search towards popular areas where there is a demand for the type of property you’re looking to rehab as well as an area with foreseeable growth. This is when a local real estate agent is going to prove to be an invaluable resource.
As you narrow down potential properties, keep an eye on similar listings in the area to see how long they’ve been on the market, current asking price, along with any price reductions. If it doesn’t look like many homes are selling in the location you’re looking in, it might be a good idea to consider a different area to make the deal more profitable for you.
Something else to think about is the material and personnel cost. What is it going to cost you personally to flip a house in your target market? In addition to the cost of just about everything going up, things cost even more in larger cities, like New York City, than they do in other places. The more robust the local economy is, the higher the average cost of things will be. On the flip side, the price of real estate will be higher in the more expensive markets.
You’ll also want to keep an eye out for a catalyst, something that affects the market. In smaller cities, things are different than they are in larger, more populated areas but there are catalysts regardless of size.
Things like crime rates, schools, and even new businesses, are all important factors to take into consideration when assessing what will bring value to a neighborhood. Look for the areas that are up and coming because by the time all the improvements and additions are made to a neighborhood, it’s likely too late to maximize your profit potential.
Local taxes are another factor to consider when looking at different areas since they can have an effect on the pricing and salability of a house. Higher real estate taxes can impact a potential buyer’s ability to afford the home. In addition, until you flip the property, you will be the one paying these taxes as well.
Choosing the Best Type of Investment Property
Are you looking to buy a single family home, or maybe something a bit larger, like a multi-family. Along with deciding on the type of home, you’ll need to be clear on whether you’re going to flip it, or possibly rent it. The best way to make this decision is to look at your financial goals; flipping a home brings a single score while renting will generate income over a long period of time.
How to Find Houses to Flip
After you’ve studied the market, narrowed down the area, and decided upon the type of property to invest in, it’s time to physically start the search. In our first post on flipping homes, we gently touched upon some of the ways in which to go about this.
In case you missed it, let’s review.
Get a real estate agent – Especially if you’re unfamiliar with the area, having a local real estate agent as part of your team is important. They know the best places to look, and can help weed out the properties that aren’t a match. Not to mention they are filled with knowledge and advice regarding the market as a whole.
Look for auctions – If you have the ability to pay cash, private auctions might be something to consider. Foreclosure auctions are often published by the county several weeks before they hit the auction block giving you the opportunity to check out the properties prior to their sale date. Keep in mind that it’s highly unlikely that you’ll be able to go inside the home, or even on the property itself.
While these types of opportunities can be good, they also carry risk. Most auctioneers require a 10% deposit of the purchase price put down at the time of the winning bid with the remainder to be paid within 30 days, otherwise you lose the deposit. This is why these types of deals work best for cash buyers. It’s difficult to finance auction purchases because lenders want appraisals and often a walk through before closing.
Digital Classifieds and Online Sites
Do you remember the days when you would open up the classifieds and look at property listings? These days all you have to do is turn on the computer, do a quick search, and sites like Zillow, Trulia, and Redfin (to name a few) will be able to provide hundreds of listings. Craigslist is another platform to search for property listings.
How to Choose a House to Flip
We’ve covered how to find a property, now let’s focus on how to choose the right one.
First, look at the location and conduct the same type of research your potential buyers will do. If a couple with young children are looking at the property, then the school district becomes important. If the area is predominantly filled with young, single people, the focu of importance changes slightly..
Things such as easy access to public transportation, shopping, restaurants, these are factors that weigh into a buyer’s decision as well. Look at the positive attributes as well as negative ones that could have an impact on your ability to flip the property.
The physical characteristics of a property is another area to focus on. You’re going to want to make the property stand out yet you will also want it to conform to what’s around it.
For instance, if the home is smaller in size compared to other homes in the immediate area, it might sell for less money, but if it’s a home that is much bigger in size compared to others in the area, then it might be viewed as too expensive for the neighborhood.
You also want to pay close attention to the home’s exterior. Buyers often fall in love with a property at the street, so before they even set foot inside to see all of the wonderful things you’ve done, they may have already formed an opinion. And for some, that drive by is all they need to make up their mind.
Purchasing, rehabbing, and selling a property is a lot of work, but with knowledge and the right team, it can be a profitable venture.
As humans, we naturally are drawn to other people who share similar interests. When we talk about community, we focus on a common thread used to bring people together to advocate and support one another. In its simplest form, a community is a group of people with something in common.
That sense of belonging that comes along with being a part of a community gives people a supportive group to help them cope with difficult challenges, brings them together to solve problems, as well as celebrate life’s lighter moments.
Whether it be through a physical group where members meet up on a regular basis, or via a virtual space like social media groups, connecting with your community is important, especially when you are new to the neighborhood.
Finding common connections with your new surroundings is beneficial to homeowners in a variety of ways. If the area is one that is completely new for you, finding organizations or groups within your neighborhood will allow for the opportunity to learn all about your new surroundings.
Whether that entails discovering local businesses to shop at, linking up with volunteer based organizations, joining a club. or discovering some of the history behind your town, creating these types of relationships with other people helps foster a sense of belonging.
One way to get involved is to check out the social events your local neighborhood has planned. Oftentimes seasonal events are organized for residents to get involved and enjoy some local hometown fun. Two upcoming fall events here in Brooklyn – Blocktoberfest 2022 hosted by the NY Brewers Guild on Satruday, October 1st, at the Brooklyn Navy Yard. The annual fall festival celebrates beer brewed here in NYC.
Two weeks later, on Saturday October 15th, there is a Fall Festival taking place at Atlantic Terminal Mall with a host of fun activities for children and families.
A strong sense of community has also been shown to have positive effects on both mental and physical health. Connecting with your community helps prevent isolation and teaches people how to be more empathetic towards one another.
Curious to learn more on how being connected to your surroundings is important to your overall well-being? We’re sharing a few of the ways in which community enriches people’s lives for the better.
Community Enhances Your Sense of Belonging
A sense of belonging is one of the most significant needs that humans have. It is what draws us together with other like-minded individuals who we can turn to for friendship and support. It is here where we discover common ground with those around us. When people find themselves as the “new guy in town,” it helps to get to know your neighbors. Lifelong friendships have been made between people who met by chance due to geographic location.
Community Encourages Social Support
Being part of a community enables us to show support to others. If you look within your neighborhood, you’re likely to find organizations that were created for the sole purpose of helping out the community.
In Brooklyn, The Kiwanis Club of Brooklyn is dedicated to helping local children and families through a variety of wonderful programs. Being a part of such an organization means you’re making a difference in the lives of others while helping to build a better community.
Community Reduces Anxiety and Depression
When people feel connected to a part of something bigger, it gives them a sense of purpose and need. Being able to help others, whether it be a nieghbor, or an organization, creates a feeling of accomplishment, and a sense of pride knowing that you have made a difference, no matter how large or small, in someone’s life. Providing support to others will in turn make others aid you in your time of need.
Community Builds Trust
When we build a strong sense of community, we’re also building trust with people who are not in our immediate circle. Connecting in a community allows you to step outside your comfort zone.
Oftentimes, when new to an area, it can be difficult to find some of the things we take for granted in more familiar surroundings. Doctors, childcare, petcare, repairmen, you name it, we all have questions when we move to a new location.
Social media is a great resource for connecting with people within your local area. If you search platforms like Facebook, you can find private groups geared towards your particular area. Instagram is another great resource to search for groups. Join and follow the ones you find valuable to obtain a wealth of information.
A great example on Facebook is the public group entitled, Brooklyn Food, dedicated to highlighting all things food related. On Instagram, check out Brooklyn Magazine, a page dedicated to all things for the borough. Whether you pose questions, or take notes on suggestions from other members, you are bound to find some true gems.
Social media has proven to be a valuable tool when it comes to connecting to your community. The internet is a great tool when it comes to finding local events and activities taking place in your neighborhood. Brooklyn residents can always check out the website, Happening Next, as well as Patch, to find out what is happening within the borough.
Community Provides Opportunites for Businesses
When people have a strong sense of community, they want to see their neighborood and its people flourish and one way in which to ensure that is by supporting local businesses. Whether it’s through online communities, or word of mouth, community’s assistance helps business owners interact with customers and gain valuable feedback.
There are many reasons why connecting with your community is important, finding a sense of belonging and purpose is truly at the heart of it all. Overall, it enhances our quality of life as well as enhancing our hometown.
For both sellers and buyers, working with a real estate agent is beneficial for a multitude of reasons. Depending on what side of the transaction you’re on, the reasons why you should work with an agent will differ. What doesn’t change is the invaluable experience a good agent brings to the table.
When it comes to selling, many people think they can save time and money by going at it alone, without a realtor. What’s interesting is that FSBO (For Sale By Owner) sales often are less than the homes sold by real estate agents. Granted, the homeowner saves on paying the realtor’s commission, but that comes with a cost (literally).
Statistics show that only 11% of sellers actually succeed at selling on their own and for the ones that do, their sales are about 26% less on average than properties represented by an agent.
A lot goes into selling a home that you may not even realize. There are many challenges and if you’re going at it on your own, navigating all of the moving parts can be difficult.
Real estate agents do a lot more than just bring potential buyers. They know the in’s and out’s of both buying and selling and are invaluable for a multitude of reasons. Michele Haas, President of the Brooklyn Multiple Listing Service (MLS), points out the following ways in which real estate agents are instrumental in the overall process.
Agents have:
Extensive knowledge of the market
Professional networks
Negotiating skills
Understand required documents
Fiduciary responsibility
Can readily find and identify comparable sales
Can recognize possible issues with a property
Must live up to the standards required by their license
Based on the above, we dive a bit deeper into just how working with an agent is beneficial.
Time Consuming – Selling your home is a full-time job. Between fielding calls and messages for showings, hosting an open house, advertising, and all of the other minutiae that comes with listing a home, it’s an agent’s job to make sure it is taken care of.
Experience – Real estate agents are trained for the job. They’ve studied and taken exams to become an agent and continuously refresh that knowledge with continuing education classes. They know how to navigate the market better than someone who isn’t in the business and their knowledge and experience can be the difference in getting a home sold quickly.
Pricing Advice – Agents understand the real estate market – they know the value of homes, they know the areas, and how to compare properties, all of which factor into pricing a home correctly. While you may have a certain number in mind, the price may not be reasonable. That’s why having an agent to research the comparable sales can help confirm if you are in the right price range. They know where to look and have access to this type of invaluable information.
What they don’t possess is an attachment. As a homeowner, you’re attached to your home in one way or another. Maybe it is your first home, or where you raised your children. Because of reasons like these, it can be difficult to be objective and for many homeowners, it’s not easy to separate the two. That’s why having a real estate agent is important as they can help you to focus on the bigger picture and not get caught up in the emotional side.
Professional Negotiators – As hard as it can be to price your home correctly when you have an attachment to it, so can negotiating its worth. Real estate agents are removed from all of that. Their main goal is to get your house sold and if negotiations are involved, they aren’t going to hold onto emotional ties that will prevent them from making a good deal. Being removed allows agents to give you better guidance and advice.
When it comes to negotiating, attention to detail is key. Your real estate agent knows what details need to be written into the contract. There are numerous documents involved in the process and having an agent to help navigate all of the paperwork is important, especially when questions or concerns arise, they can advise. This invaluable knowledge is helpful regardless of whether you are the seller or buyer.
Fiduciary Responsibility – Agents have a fiduciary responsibility to their clients, they must put your best interest first. Whether they’re working on your behalf to sell your home, or help you purchase one, their loyalty remains with you.
Network of Professionals – It takes a team of various professionals to get you to closing day. From home inspectors, to mortgage brokers, to attorneys, etc, a real estate agent has a trusted network of other professionals to help you every step of the way.
If you are on the other side of the real estate process and are looking to purchase a home, working with an agent is just as important. Buying a home is one of the largest financial transactions you’ll ever make and you want to have an expert on your side. Real estate agents are tapped into their network and have access to various sites, like the MLS, to get the most up-to-date listings.
Whether buying or selling, either side can benefit significantly from hiring a real estate agent. The reasons may be different but the end goal is relatively the same, to ensure as smooth and stress-free process as possible.
Congratulations, you’ve made the decision to purchase your first home and it’s an exciting time. You’re about to embark on one of the biggest financial decisions you will make in your lifetime so it’s important you understand what it is you’re about to take on.
Information is power and educating yourself on one of the most important purchases beforehand will give you a clear understanding of what you’re getting yourself into before you actually do. The home buying process has a language of its own and taking the time early on to understand will put you ahead of the game when you officially begin your search. Don’t wait until it’s time to sign the contract to educate yourself on the process.
Even if you’ve purchased before, it’s still a good idea to re-educate yourself and discover any new changes that have taken place in the real estate market. It’s a lot to wrap your head around but if you know what to expect then it doesn’t have to be as scary as you may think.
Before you begin the search, it’s a smart idea to start saving early. Having a strong down payment is important. Not only does it lessen the amount of the loan, in some instances, the stronger the down payment, the better your chances of your offer being accepted, especially in such a competitive market.
It’s also a good idea to find out your credit score and clean it up if need be. Credit scores typically range from 300 to 850 and while you don’t need a perfect score to get the best mortgage rates, there are certain credit score requirements you will need to meet in order to obtain a mortgage.
To qualify for the best interest rates, prospective home buyers should aim to have a score of 760 or greater. However, the minimum credit score requirements vary based on the type of loan you’re going for along with who is insuring the loan so speak to your loan officer to find out where you need to be in order to secure funding.
Along with putting money aside early and cleaning up your credit, there are additional things to keep in mind as you prepare to jump into the home buying market.
How much can you afford? – A common mistake potential buyers make is house-hunting before knowing how much they can actually afford.
“First they should get pre-approved so they know what they can afford,” explains Barbara LaBarca, Director at Brooklyn MLS and Broker/Owner at Coldwell Banker LaBarca.
Obtaining a pre-approval ahead of time is essential to the process. Why? Because you need to know the maximum loan amount you qualify for. You don’t want to have your heart set on a house only to find out you’re unable to afford it. Knowing the maximum amount you can spend will allow your agent to search for the homes in your range and save your time from viewing the ones that aren’t.
And second, without a pre-approval in hand, it’s difficult to make an offer. Most real estate agents will not accept an offer to purchase without an accompanying pre-approval, especially in this competitive market. You need to come in strong, and that includes providing the documentation needed to show you can back up the offer you’ve made.
Choosing the right realtor – Chemistry is key. You’re going to spend a lot of time with your agent so you need to mesh. You’re about to embark on one of the biggest purchases of your life and you want to have a trusted real estate agent by your side. Your agent should be able to explain the ins and outs of the home-buying process, be familiar with the area(s) you’re looking to purchase in, as well as understand exactly what it is you’re looking for. Overall, they need to be immersed in the local market.
Referrals are a great way to find an agent. Ask around, talk to people you know who have already gone through the real estate process and ask them to give you an honest opinion on what their experience was like.
And mostly importantly, you need to find an agent you can trust. Are they honest, and do they have your best interest at heart? It’s always a good idea to speak to at least three agents before choosing someone to work with. Once you find the right agent, remember to be honest and transparent about what it is you’re looking for so that from day one they can being finding you the right options.
There is no perfect home – It’s your first home and you’ve more than likely dreamed about the ideal place to put down roots. You don’t want to settle but before you start looking, it’s a good idea to write down the things you want out of your new home.
What are non-negotiables and what are the aspects you can compromise on? No home is perfect and going into your search understanding that will make things easier.
Maybe the home you fall in love with isn’t in the specific neighborhood you had hoped to move to, or the home in your chosen area is a bit smaller than you originally planned. Knowing what your deal breakers are ahead of time will make it easier to accept that the home buying process, and the home you choose, may not be 100% perfect, and that’s ok.
Do your homework – Ask yourself, what type of home fits your needs, what are your homeowner goals, and what type of property will best fit your lifestyle. Once you have the answers, start reading up on the different neighborhoods, taxes, schools, local attractions. Anything that is going to impact your life in a direct way once you settle down in a specific home / area, should be a part of your overall search.
Understand the buying process – There are a lot of moving parts to the home buying process so having an understanding of each is important. Even before you start looking, you’ll want to familiarize yourself with the different financing options available. Being informed could help you save money on interest, fees, and even your down payment.
Knowing the different types of loans available will prove helpful when you sit down with your lender. Along with the conventional mortgage most people know about, other types of loans include the FHA, VA, USDA, Jumbo, and Adjustable Rate Mortgage loans. Each one has its pros and cons, and while they may not be right for everyone, understanding what is available will be helpful to the process.
“Besides their mortgage payment, buyers should consider that they will need to pay bills like
their water bill, electric, and gas,” explains LaBarca. “Taxes and insurance are included in the mortgage.”
Choosing the right loan officer is as important as choosing the right agent. After your offer has been accepted, they will become the person you talk to often as they guide you through the next phase of the home buying process.
Whether you are obtaining funding directly from your bank, or working with a mortgage broker who serves as the middleman between lenders and borrowers, they should be able to help you in understanding the loan best suited for you, along with providing you the guidance needed when the application process begins.
After you find a home, there are multiple steps (i.e home inspection, appraisal) that need to be completed before moving forward. This is when having a knowledgeable real estate agent is important. They will be able to explain these processes and continue to put your best interest first while these next steps take place.
Buying a home can be overwhelming with many first time buyers dropping out of the market because they believe it’s going to be too difficult. The process does have its challenges, but with the right team in place, it doesn’t have to be as stressful as you envision. Working with the right people and educating yourself right from the beginning can make all the difference.
It’s finally here, moving day! Whether you’re heading into a new home or apartment, the excitement, and stress that comes along with the process is one that cannot be avoided.
Did you know that moving is consistently rated as one of life’s most stressful events? It ranks right up there with death of a loved one, divorce, job loss, etc. Even if your move is a happy one, it doesn’t lessen the stress that comes along with it. It is still a massive disruption of your routine, combined with all that is familiar to you. And no matter how well you plan, that feeling will not change.
Now, you’ve spent weeks (maybe even months) planning and packing, so when the actual day arrives, you’re bound to be in overdrive. Along with all of things you’re going to have to take into consideration, if you’re a pet owner, add another item to your pre-moving check list.
If you think the process is tough, imagine just how stressful it can be for your pet. Dogs especially can easily become stressed out when there is unexpected activity in the home, or even when introduced to a new environment.
Animals are creatures of habit, and for them, change, no matter how big or small we think it may be, can be both confusing and stressful.
So while you’re planning out the specifics for moving day, it’s important to also plan ahead for your pet. In order to ensure he or she is relaxed, and safe, on the big day, we’ve compiled a few top tips to help make the move a success for all members of your family.
Contact your vet
If you’re moving out of state, or out of the local area, contact your vet to obtain your pet’s medical records along with any current prescriptions. Part of relocating involves finding new doctors and that includes a new veterinarian. Ask your current vet if they can recommend a new doctor before beginning to do so on your own.
Plan Ahead
Prior to moving, it’s a good idea to visit your vet. According to Dr. Rachel Barrack, Founder of concierge veterinary practice Animal Acupuncture, you should make sure your pet is up to date on all vaccinations. If you’re traveling by air, Dr. Barrack stresses the importance of checking with the airline beforehand to confirm all necessary paperwork prior to the day of departure. If traveling by car, make sure your pet is used to their crate and plan ahead for bathroom and water breaks.
Pack An Accessible Bag for Your Pet
Included in your pet’s to-go bag should be a leash, bowls for food and water, food, medications, wee-wee pads or litter box, bed, and favorite toys so when you get into your new home you won’t be rummaging through boxes, Dr. Barrack points out.
Keep pets away from the action
One of the best ways to help your pet remain calm is to keep them in a quiet area although that might not be possible on moving day. You don’t want them getting underfoot or accidentally getting out. A good idea to consider is either boarding for a night or two or doggy daycare. If that’s an option you’d like to explore, Brooklyn is home to a variety of options. A few local places include:
Keep in mind, before your pet is able to board or spend the day in daycare, most animal facilities require the animals go through an evaluation to ensure they’re a fit, and to protect the safety of all the animals already at the facility. All vaccinations will need to be up to date as well so make sure to find out from your veterinarian which ones your pet will need. And lastly, some months may be more popular than others at the facility, so once you have your moving dates, call to reserve your pet’s spot.
Move the house before you move your pet
Set up as much of your new home as best you can before introducing your pet to his or her new digs. Let them slowly adjust to their new surroundings. Re-introduce familiar objects and make sure to give your pup lots of attention in the process. You can even walk them from room to room to take in the new scents they’re sure to pick up on.
Update information
Once you’re settled, make sure to update your new contact information. That includes notifying your vet, ordering new ID tags, and if your dog is microchipped, calling the company and ensuring they have all of the new and most current information.
Stick to a Schedule
Dr. Barrack stresses the importance of sticking to a schedule once the move is complete. Even though you’re in a new place, sticking to their usual eating, exercise, and sleeping schedule as best as possible will help to minimize the stress.
Most pets love predictability and routine, so a move can throw them into a tailspin. Change can be confusing and stressful so be mindful of their needs as you prepare your move.
And most importantly, Dr. Barrack stresses the importance of being patient. Once you arrive at your new home, it will often take even the most well-behaved pets a few days to adjust to their new surroundings. Consult with your vet as well on the best ways in which to ensure a smooth transition.
After almost three months of sheltering in place, many people have had quite a few realizations about their lives and what’s most important to them. Certain aspects that were once high on the priority list are no longer the case, and things that were at one time “a must have” are being replaced by different wants. COVID-19 brought about an unexpected clarity and many people are now jumping into one of life’s biggest changes and moving out of larger cities to settle down in more suburban areas. The pandemic and the thought of what life will be like post-COVID has finally convinced city dwellers to give up on big-city living.
The reasons for moving vary; some people are looking to be closer to family, others are in search of more space, and for some, it’s more of a necessity due to the high cost of city living. Some moves have been temporary but it seems as if those short-term stays are becoming more permanent.
Now, in the wake of the pandemic, nearly one-third of Americans are considering the move to less populated areas. Crowded cities are no longer as appealing as they once were and living amongst millions of people in such close quarters no longer offers the same romanticism it might have even a year ago.
Gone are the days of squeezing into packed elevators, crowded subways, cramming into small neighborhood bars and restaurants, or even the bustle of walking closely next to each other down the street. In today’s era of social distancing, the ways of city living that residents took as “normal” will likely never be normal again.
The things that originally attracted residents to “city life” are currently unavailable and even as they start to reopen, people are still hesitant. They want to stay away from confined spaces and refrain from sharing common areas and amenities in order to continue social distancing.
Not being able to access those luxuries that once were attractive brought about a clarity and changed people’s perspective on where they want to live. For some, the allure of the trendier neighborhoods is waning. Instead of stepping out onto a small balcony for a breath of fresh air, they’d much rather step into a more spacious backyard, especially as family and friends these days find gathering at home a much more viable choice.
Another big change has been for the employees working from home, many whom have never experienced remote working up until now. Instead of working out of a cramped, small space, if you’re not required to be on premise in the foreseeable future, why not seek out a home that offers enough square footage to potentially create your own separate home office? That appears to be the question many work from home employees are asking themselves right now.
These past few months have shown many companies that employees can indeed work successfully off-site. If remote working becomes the “new norm,” then the desire to live close to the office will no longer factor into one’s decision on where best to reside.
And while many residents are packing up and heading out of the city, that doesn’t mean one has to completely leave the state (unless that is you want to). There are many surrounding areas outside of the larger cities that offer more spacious living without having to completely forfeit some of the comforts you’re used to and still hope to one day enjoy.
What’s unique about Brooklyn is the fact that in addition to the neighborhoods that give off that “city” living vibe, areas like Dumbo, Williamsburg, and Cobble Hill, there are also neighborhoods such as Bay Ridge, Bensonhurst, Bath Beach, Windsor Terrace, and Dyker Heights, which offer residents an environment that is more residential. With both one and two-family homes on the market, potential buyers have the option of purchasing a home that will allow for family members to move in for that additional rental income.
Without moving too far, residents of Brooklyn who do not want to leave the borough but want the luxuries that come with owning a home can find the best of both worlds here. At times, certain areas may have been overlooked for the trendier neighborhoods, but with people looking for larger living space that is no longer the case.
Sadly, COVID-19 has instilled in people a sense of dread when it comes to being close to others, and with the uncertainty of what the future holds, along with the changes cities are experiencing, residents are making the conscious choice to head out and purchase now when interest rates are low.
