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. 

 

When it comes to luxury living, there are a handful of locations that immediately jump to people’s minds, and happily, Brooklyn, which is one of the most desired boroughs, is a part of that group. 

For decades, the most populated borough was traditionally known for its diverse neighborhoods, including many industrial areas, iconic landmarks (i.e The Brooklyn Bridge), artistic communities, and vibrant culture. While these distinct characteristics are still embedded into the heart of the city, Brooklyn is now seeing a surge in luxury living. 

 

Brooklyn’s allure as a desirable destination for luxury living has grown due to its proximity to Manhattan, affordable alternatives to New York City’s high costs, and a more laid-back atmosphere. The borough now attracts upscale real estate developments and offers a range of exclusive amenities, adding to its appeal.

 

Brooklyn’s rise in luxury living can be attributed, in part, to the changing demographics of its residents. Over the past decade, young professionals, entrepreneurs, and creative individuals have all made their way over, driven by the borough’s thriving arts scene, array of restaurants, and lower housing costs compared to Manhattan. 

 

As these people begin to find success and expand their wealth, the demand for living space to meet their evolving lifestyle has fueled the luxury housing market. 

 

To accommodate the increasing demand for luxury living, real estate developers have embarked on projects that redefine the infamous Brooklyn skyline. 

High-rise condominiums, sleek townhouses, and modern apartment complexes that offer residents a wide range of amenities, including rooftop pools, fitness centers, at your fingertips shopping, and breathtaking views of Manhattan, provide residents with everything they’re looking for and more. 

 

These types of developments not only provide luxury living spaces but also contribute to the aesthetic and revitalization of many Brooklyn neighborhoods which all live up to the hype. Areas  such as Williamsburg, Park Slope, and DUMBO are all part of some of the best neighborhoods to put down roots. The more difficult question is which one to choose!

 

Beyond the beautiful residences, luxury living in Brooklyn is accompanied by a host of high-end amenities and services. Upscale restaurants, local coffee shops, exclusive boutiques, and gourmet grocery stores have emerged to cater to the residents moving into these high end luxury residences. 

 

The presence of these businesses has helped transform this sought after borough into a destination where residents can enjoy a sophisticated lifestyle without sacrificing Brooklyn’s distinct character.  

Brooklyn is also rich in culture and its artistic heritage has played a crucial role in attracting residents seeking a vibrant and creative environment. The borough’s art galleries, theaters, music venues, and street art scenes have flourished alongside the rise of luxury living, blending luxury with cultural expression to create a unique and enriching experience. The infusion of wealth has provided financial support for artists, performers, and creatives, contributing to the borough’s continued artistic growth.

 

As the concept of luxury living evolves, there is a strong focus on sustainability and eco-consciousness. Developers in Brooklyn have embraced green building practices, incorporating energy-efficient technologies, sustainable materials, and eco-friendly infrastructure into their projects. The integration of green spaces, community gardens, and environmentally-friendly transportation options has made luxury living in Brooklyn synonymous with responsible urban living.

 

Brooklyn’s rise as a hub for luxury living represents a remarkable transformation that reflects the evolving desires and preferences of affluent residents. As the borough continues to attract a diverse range of professionals and creatives, the demand for high-end real estate and upscale amenities will likely persist. 

 

However, it is crucial to strike a balance between luxury development and preserving the unique character and affordability that initially attracted residents to Brooklyn. As the borough continues to evolve, the rise of luxury living must be accompanied by investments in infrastructure, community programs, and affordable housing initiatives to ensure a harmonious and inclusive future for all residents.

 

Neighborhoods that were once overlooked have now experienced a revitalization and are attracting high-end developers and upscale retailers. The increasing demand for these types of properties has prompted developers to create a diverse range of high-end residences, bringing opportunities for new businesses to flourish in these areas.

 

The rise of luxury living in Brooklyn signifies a remarkable transformation, presenting a mix of style, comfort, and convenience that defines the new era of luxurious living in this dynamic borough.

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:

• Potential for a large profit – Flipping homes can result in substantial profits if the renovation and sale are done correctly. 
• Potential for appreciation – Real estate tends to appreciate over time which means by the time you’re ready to sell the value of your property could increase, resulting in a higher ROI.
• Tax benefits – Flipping homes comes with a variety of tax benefits such as depreciation and capital gains tax.
• Forced savings – As a flipper, you have to save money for repairs and renovation of the property which can be considered as forced savings. 
• Flexibility – You can choose the properties and renovation projects that you want to take on, giving you more control over your investments.

 

Cons include:

• Risk of renovation costs – Flipping homes often requires a significant amount of renovation and remodeling which can be both costly and time consuming. 
• Risk of market changes – While the real estate market’s fluctuations can work in your favor, they can also work against you if the value of the property does not increase as expected, or even decrease.  
• Risk of default – If the renovation takes longer than planned, the interest costs on your loans (if the purchase was not all cash) can add up quickly and eat into your profits. 

 

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:

• Regular passive income – As a landlord, you will receive a regular stream of income in the form of rent from tenants.
• Appreciation – Real estate tends to appreciate over time which means the value of your property could increase, resulting in a higher ROI. 
• Tax Benefits – Rental properties come with a variety of tax benefits such as depreciation, mortgage interest deductions, to name a few. 

Cons include:

• Maintenance and repairs – As a landlord, you’re responsible for all of the upkeep (ie repairs) the home requires. This can be costly and time-consuming, especially if you own multiple properties. 
• Risk of vacancy – There is always the chance that your property may be vacant at some point which means you will not receive any rental income during that time. 
• Risk of default – There is always the off chance tenants may default on their rent, which could lead to losses.
• Liability risk – As a landlord, you are responsible for the safety and condition of the property, so you are exposed to liability in case of accidents. 
• Risk of eviction – There is always a chance you may have to evict tenants who fail to pay their rent or violate the terms of their lease (if you have one in place) which can be a legal and time-consuming process. 

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.

We’ve all seen the home renovation shows on networks like HGTV and thought to ourselves, that might be a good idea. The transformation of a house in shambles to a beautiful dream home is enough to make anyone consider the possibility. Granted some of the shows are geared towards personal home renovations, while others are renovating with the intent to flip. 

 

If you’re new to the process, house flipping entails purchasing a real estate property, updating it to add value, and then selling it for a profit.  Most home flips involve buying property at a less than average price, (either a fixer-upper or in foreclosure), rehabbing the property, and selling it for more than invested. 

 

Shows like the Property Brothers, Flip or Flop, and Christina on the Coast, to name just a few, give the illusion that the process of flipping a home can be fairly simple – all you have to do is just buy a house, make a few cosmetic changes, and sell the property for a good profit. Unfortunately it’s not as easy breezy as television portrays. 

 

What isn’t visible in that one hour is all of the behind the scenes happenings that get you to the finish line. Anyone who has ever had some type of home renovation done, knows it is not a quick and seamless process, there are always bumps along the way. 

 

Ask anyone who has flipped a home and they will tell you the truth – the process isn’t as fun or as profitable as you see on screen. Television has the power to glamorize and home flips are no exception. 

 

Flipping homes can be a lucrative way to earn good money in real estate but in order to be successful, you’ll need to be armed with a lot of knowledge, planning, patience, time, energy, and good judgement.  

 

It’s important to not only understand the process but also the basics of what flipping a home entails. Most people find themselves juggling both their day job and home renovation which can be extremely time consuming, not to mention super stressful. 

 

Before diving into your first home flip, there’s a lot to know and educating yourself is important. There are countless books and sites filled with information to help guide you in the process. We’ve broken down some of the basics:. 

How to Get Started 

 

First step is to develop a plan for your flip. What is your budget, how much do you want to spend on the purchase, and how much will be needed towards the renovations? When thinking about cost, keep in mind they include contractors and specialists along with the materials needed. 

You’ll want to have a team in place to help you get started before the home search gets under way. Ensuring the people you want to work with are available and align with your budget before making a purchase is important. 

 

The last thing you want is to find out after closing is that the cost of contractors is higher than expected, or availability is months away. A renovation takes time and the last thing you want to do is delay it even further because you didn’t assemble a team beforehand. Remember, time is of the essence. Every day you own the property it is costing you money.

 

Finding the Right House 

When it comes time to find the home, there are a few different ways to go about your search. Consider working with a real estate agent, especially if you’re unfamiliar with the area. A good agent can provide insight into the market and possibly help you sell the home once the renovations are complete.  

 

You want to find a home in a desirable location or one that is growing and promises a high resale value. 

 

If you have the ability to pay cash, auctions are another place to look for good opportunities for a discounted price. Just keep in mind they can carry some risk so before going this route, read and understand exactly how they work. 

 

Secure Financing 

In the world of real estate, cash is king. An all cash deal means that by the time of closing, the buyer will have unconditional liquid assets sufficient to pay all of the costs associated with the purchase, including the sales price and closing costs. If you ask any seller they’ll tell you they prefer this method of getting paid over an offer from a buyer who needs to secure funding in order to purchase. 

 

If you don’t have the funds to purchase outright, you’ll need to secure financing. There are different types of loans to explore which is why speaking to a mortgage broker ahead of time is a smart idea. If you have bad credit, options may be limited. If your credit is low, consider raising your score before starting the home search. 

 

Legal Representation 

Whether the deal is all cash or financed, there is always a lot of paperwork involved. It is important to seek out legal advice and have a real estate attorney look over all of the documents. Their job is to provide you with the best possible legal advice and will ensure all of the necessary steps are taken prior to closing. 

 

The Bottom Line

At the end of the day, the most important piece of advice is be prepared. Seek out the help of experienced professionals and ensure you have a great team in place to help you achieve success. 

 

Flipping homes can be a lucrative business and with the knowledge, skills, and motivation necessary it is possible to become successful. 

Whether this is your first, second, or maybe even third home purchase, each experience likely feels like the first. Regardless of how many times you’ve actually done it, the home buying process creates an array of feelings and emotions. 

 

From excited to scared and everything in-between, buying can be intimidating. That’s why it’s important you’re working with the right realtor who will be able to guide you through each step of the way. 

 

The home buying process really begins before you even step foot into a home, and continues all the way up until the day of closing. There are numerous steps you’ll take with each stage which in turn creates a whole new set of questions. Keep in mind, nothing you ask is silly, if you are unsure about anything, speak up. 

 

Buying a home is one of the largest purchases you’ll make in your life which is why it is important to feel as comfortable, and informed as possible. Part of your real estate agent’s job is to help make the experience as stress-free as they can.

 

We know things can get overwhelming with all of the information you need to know beforehand, so to help alleviate some of it, we’ve put together a list of common questions buyers ask to help you navigate the process a bit easier. 

 

What’s the first step of the home-buying process?

Before you even get started in your search, it is important to have your mortgage pre-approval. Some agents will not begin working with potential clients if they don’t have an approval in hand. 

 

Why is this piece of paper so important? Because it tells you, and your agent, just how much you can afford. There is no reason to look at properties that you are unable to afford. It’s not fair to you, your agent, or the seller, to waste time looking at properties out of your price range. Knowing how much money a lender will approve for a loan is an important first step. 

 

How long does it take to buy a home? 

Unfortunately, there is no definitive answer as this timeline varies greatly from person to person. On average, it can take anywhere from a few weeks to several months to find a home. It also depends on the timing, as well as the circumstances. Do you need to move ASAP, or is this your first home? 

 

Once you find your home, it usually takes an additional 30-45 days to close after you’re in contract. Keep in mind this timeline can change for a variety of reasons. 

 

How much do I have to pay my real estate agent to help me find a home?

Great news–nothing! The seller pays the realtor fee/commission on their end. 

 

How much money do I need for a down payment?

The more you put down upfront, the less you will have to borrow from a lender. Generally, 20% of the purchase price is an ideal number for a few reasons. First, it lowers the monthly mortgage payments, avoids paying private mortgage insurance commonly referred to as PMI, improves the nature of your offer, and can help you lock in a better interest rate. 

 

That’s not to say you must put down 20%. The minimum amount depends on the type of loan you are obtaining to finance the purchase. Lower down payment loans, like an FHA loan, requiring a minimum down payment of 3.5%, were designed to make homeownership possible for first-time buyers. 

 

When it comes to the different types of loans available, this is where your mortgage broker steps in. It’s a conversation you should have even before the actual house hunting process begins. Knowing how much you can afford and the type of loans available are all part of the initial conversation you should be having when obtaining your pre-approval.

 

What additional fees are there besides the down payment?

Additional costs include the loan origination fee, which is not a single fee, but a set of lender-specific fees that are part of closing costs, as well as the closing cost itself. These are the fees paid at time of closing to complete the purchase. They may include the survey, underwriting fees, title search fees, documentation fees, legal fees, pre-paid property taxes, HOA, etc. Your mortgage broker will review these with you. While you do have these additional expenses, the down payment is usually the largest cost associated with buying a home. 

 

Do I really need to work with a real estate agent when buying?

It is strongly recommended that you work with an agent for many reasons. First, they have your best interest. Their goal is to help find you a home that fits your needs, and they will advocate on your behalf when needed. Real estate agents are skilled negotiators, and have access to a network of different people you will need throughout the process. Plus, it doesn’t cost anything to work with one.  

 

Can you recommend…..?

Whether you’re in need of a mortgage broker, appraiser, lawyer, moving company, or any other type of professional service associated with the home buying process, your real estate agent should be able to offer some recommendations. Mostly all real estate agents have a network of people they trust to provide the best possible service to their clients. 

 

While every home is different, the steps, especially in the early stages of purchasing, are generally similar. The same holds true for the questions you are more than likely to have. Remember, don’t be afraid to ask, it is part of an agent’s job to provide you with the information needed in order to make the most informed decision. 

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. 

At the beginning of every New Year, most people make resolutions that involve some form of change. Whether that be professionally or personally, it’s a chance to give ourselves a goal to start anew. 

 

For anyone who has had their sights set on jumping into the real estate market then you know how crazy it’s been these past two years as the pandemic turned the home buying process completely upside down. It may be a New Year but is it a new market? 

 

With mortgage rates hitting a historic low, coupled with an inventory shortage, the red-hot real estate market saw homes selling within hours of being listed, bidding wars ensuing, and sale prices closing over asking price.  

 

When it comes to the real estate market, we know anything is possible, but housing experts predict that in this New Year, buyers will likely see similar trends to the last two years which included elevated prices, low-inventory, and fast turnaround. 

 

Another contributing factor fueling home buyers were the extremely low interest rates which hovered near historic lows for an extended period of time, a result of the Federal Reserve buying mortgage backed securities to support the economy. But in 2022, the Fed plans to lessen those purchases to curb rising inflation. As a result, mortgage rates are expected to rise.

 

How much they will increase is not entirely clear, but economic predictions estimate the Fed may raise interest rates three times in 2022. This potential change will have an effect on the home buying process although the new policy isn’t likely to “hurt” buyers in the next few months. Regardless, it’s safe to say anyone looking to purchase are encouraged to act sooner rather than later.

 

While the buyers are out there, it’s the sellers who are slowing down a tad bit.  When the pandemic started, the demand increased and pushed the home prices to an all-time high. And although we have rounded the corner when it comes to the pandemic, the 2022 housing market will likely continue to be costly, with home prices and rents remaining on the higher end of the spectrum.

 

Along with the demand for homes comes an increase in demand for rentals, especially as we head into the first quarter of 2022. The previous discounts that landlords had been giving out during the height of COVID are practically gone. As these concessions disappear, many renters are finding it difficult to afford their current apartments and will have to move. 

 

As a result, there will be an increase in availability with inventory opening up. The demand for rentals in the neighborhoods chock-full of amenities will also be greater. The areas most desirable are the ones with shopping, restaurants, and nightlife, especially as these sectors have re-opened their doors and welcomed back their customers. For many people, these amenities are an important factor when it comes to deciding where to live. Being close to all of these things, as well as transportation, is a luxury many potential renters, and even buyers, seek out. Areas such as Dumbo, Fort Greene, Bushwick, Gowanus, and Red Hook, will be some of the more attractive places to live for these reasons. 

 

Finding a place to call home, whether buying or renting, is never as easy as we hope it will be. The real estate market will always go through highs and lows, and this upcoming year is no exception. Keeping that in mind, here are a few things to consider for anyone planning to make a move in 2022.

Prices will remain high 

According to economists at Realtor.com and Zillow, the competition isn’t likely to die down this year. Economic trends such as low inventory, elevated demand, and low mortgage rates will continue to give sellers leverage in the market.

 

Buyers will continue to see potential bidding wars, particularly when the market picks up in the spring and summer months. Although it’s hard to predict exactly what’s going to happen, Zillow predicts home values will rise by 11% in 2022. While not as high as in 2021, it’s still a substantial increase. 

 

Increase in interest rates 

With the likelihood of interest rates rising multiple times this coming year means mortgage rates are likely to increase as well.  Home experts predict a 30-year fixed mortgage rate will reach 3.60% by the end of 2022 compared to the average of 3.30% as of now. The upside to an increase in mortgage rates is that buyers scooping up property for investment purposes may lessen, giving the people who buy homes to live in more of an advantage. 

Inventory will remain low 

The number of homes actively for sale fell to a record low at the end of last year, and the etnrance of new listings has been slow moving into 2022. Spring has generally been the time when the market picks up and while there are likely to be more listings come spring and into summer, there may not be enough to meet the demand. It will continue to be a strong sellers market. 

Home buyers, be prepared 

With the way the market is trending, it’s important for buyers to be on their A-game. That means doing research ahead of time, having the proper documents readily on hand, and being ready to act quickly. That includes making an offer almost immediately. For some buyers, purchasing out- of-state has them relying on photos and showings being done via computer and over zoom.  

 

From the realtor side, agents not only have their eye out for new listings, but listings that are “coming soon” to the market. Knowing what a client wants and how much they’re willing to spend allows agents to hone in on the right properties. There’s no sense in taking potential buyers to properties that don’t meet their needs or are out of their price range when the market is this competitive.

 

And while the 2022 real-estate market may not reach the incredible heights it did in 2021, don’t expect it to slow down anytime soon. In the meantime, do what you need to be prepared for when the right home comes along and work closely with your real estate agent who can guide you through the entire process. 

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:

• Fido’s Retreat – With a large indoor campus and fun open space for dogs to run around, Fido’s Retreat offers a variety of services ranging from daycare, to boarding, along with a few additional options for pet parents to choose from. Whether you decide to board or have your pup stay for the day, there are enough activities to keep them playing for hours. 230 Livingston Street, (between Hoyt & Bond), Brooklyn, NY 11201
• Monster Mutt – Located in the Cobble Hill section of Brooklyn, Monster Mutt has been providing love and care to dogs since 2001. As Brooklyn’s first doggy daycare, they offer a variety of services, which includes half or full days of daycare, along with overnight or longer term boarding. 297 Warren Street, Brooklyn, NY 11201
• Woofs ’n Whiskers – A unique alternative to other boarding facilities, Woofs ’n Whiskers is the ultimate dog and cat retreat. Featuring over 7,000 square foot outdoor space for the pups or a luxury condo for your feline friend, the facility offers both daycare and overnight care. 14 Coles Street, Brooklyn, New York 11231
• Animal Loving Care – Under the watch of 24/7 caretakers, your pup can spend the day, or night here at this bi-level facility. Offering both indoor, and outdoor space, your dog will have the opportunity to play, rest, and if you’d like, be groomed as well. Offering a variety of services, ALC staff cares for their furry guests as if he or she is their own. 556 Court Street, Brooklyn, NY 11231

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.