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The summer market has been awesome so far in Brooklyn. Condo Inventory is fairly low, and interest rates are stellar. However, today we are going to be talking about some potential deal breakers that may occur in our market, and how you can fix them. The new market has brought some potential challenges to us, but we want to share with you the problems we’ve been seeing, so you know what to do if faced with any of these potential issues.  Here they are:
1. Bad Appraisals The market has improved, and we want nothing more for our sellers than to have them experience the benefits of an improving market condition. When you go under contract and have your home sold, everyone is clearly happy. However, when the bank comes in to do the appraisal, and it comes back lower than the purchase price, it’s always disappointing. When this happens, you will have to renegotiate the price, or the deal will fall apart. We recommend that sellers make sure their agent is doing a thorough, detailed market analysis of their home to avoid any potential appraisal issues. 2. Credit Mistakes Nothing is more frustrating than when a buyer who has a pre-approval letter goes out and makes large, expensive purchases before the deal closes. If you are a buyer, don’t make any big purchases until your loan clears. It will affect your debt-to-income ratio and could delay the closing of your loan for quite some time. 3. Bad Home Inspections These tend to happen during the due diligence period. When home inspections are done, the inspector does their best to do a thorough job and go through every nook and cranny in the house looking for any defects. Sometimes, they aren’t able to uncover things because you haven’t done the due diligence as a seller to fully inspect the entire home. Bad home inspections can kill a transaction, and create a lot of unexpected expenses. 4. Bank Delays Lending is taking longer nowadays, and loans are getting extended. If the seller is not prepared to have a conversation with the bank, that’s frustrating. You have got to have good communication between your bank, your agent, and your lenders. If there’s an indicator it’s not going to close, the seller should be in a position to back out of that contract. Understand that when you decide to enter the market. 5. Intense Negotiations When it comes down to the negotiation table, look at the big picture. A few thousand dollars is not a good enough reason to abandon the transaction. Try to find some common ground and consider what your alternatives are. If you went back on the market, are you going to end up regretting it? These are just a few of the ways that a transaction can fall apart, but hopefully if you find yourself in any of these situations, you’ll know what to do. If you have any questions for us, feel free to give us a call or send us an email. Check our preferred vendors' page if you are looking to hire a Home Inspector, a Mortgage Banker, an Appraiser, an Attorney or someone else to help you with your home goals. We look forward to speaking with you soon! #appraisals #credit #mistakes #home #inspectors #bank #delays #closings #negotiations #realestate
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Today's topic is something home sellers love and buyers want to avoid: multiple offers! I want to discuss this topic today because one of the first things that sellers ask when they sit down with me in the office is whether there are a lot of multiple offers in the marketplace today. Whether a home gets multiple offers is dependent on a few variables; it primarily depends on your marketing strategy and your pricing. One of the things we try to do here is to ensure the seller gets the highest price possible for their home in a multiple offer situation.  A question we get from buyers in multiple offer situations is whether they have to offer the highest amount of money in order for their offer to be accepted. This is a great question. Offering the most money possible is certainly one way to get the buyers attention, but the terms and conditions of the offer are crucial as well. How we position your offer as far as terms are concerned is often as important as the price. There are a lot of different things you can do outside of price to make your deal more attractive to buyers. If you are a buyer, our team requires that you get pre-approved first. This is not because we question your integrity, but because we're currently in a market that favors buyers. Anytime you bring in a pre-approval, it's going to strengthen your offer.As your Realtor and someone who is looking out for your best interests, it's our responsibility to ensure you're only looking at homes that you can afford! This will save you a whole lot of time and stress in the process. If you have any questions about the pre-approval process, or if you need real estate assistance of any kind, please don't hesitate to reach out to me. I would love to hear from you! If your home isn't getting enough attention from buyers, there could be multiple reasons why it's not selling. Today I'll be speaking about nine different reasons why this might be happening to you.  1. Your photos are terrible. Buyers go online to look at homes these days, and if your pictures aren't high quality, they're not going to stand out and your home will be lost in a sea of listings. Your first showing is now on the Internet. Great company that provides professional and affordable photography is USBN Media. 2. It's overpriced. Buyers are aware of when they're getting a good deal or not. Don't test the market. 3. It doesn't show well. Buyers want turn-key homes that are ready to move into. 4. It's invisible online. Your home needs to be featured on StreetEasy, Zillow, Trulia, Realtor.com, and we even put your property on Craigslist. We even market your home on international websites! 5. Your listing is stale. If you've had your home on the market for longer than a few months, people may think that something is wrong with it. This will cause your home to sit without offers, and you will net less money than if you had sold quickly. 6. Your house won't appraise. This comes back to pricing your home correctly so that it sells for top dollar. 7. Your property is unavailable to show. You need to be flexible as a seller if you want your home to sell quickly. Buyers need to come look at it, and you have to allow them that privilege. 8. You have the heat and power turned off. You need buyers to feel comfortable in your home and you need the lights turned on so that they can actually see the property. 9. The Flintstones live next door to you, and their property is degrading yours. Everyone has this problem, but you can offer to mow their lawn or perhaps bribe them with some food and drinks. At the very worst you can just construct a fence to obscure the view of their home. Hopefully these nine issues have brought clarity to you as to why your home isn't selling. If you have any further questions, please don't hesitate to contact me!  Are you a renter who is looking to purchase a home of your own? If so, you've come to the right place!
By now, you know we only partner with the best. Our preferred lender, LoanDepot, makes buyers dreams come true by meeting with them in person and finding out what is the best fit for them. They are the best independent mortgage lender in America and have a great spread of loan programs, low interest rates, and a fantastic team to help fulfill your loan in the easiest possible way. Many of our clients have said to us that they wish they would have made their purchase years ago, instead of renting for a long period of time. With interest rates as low as they are, we want to encourage all the renters out there to buy now! Low rates mean you have more spending power as a buyer, which is perfect for first-time home buyers looking for the right fit. Many potential home buyers are waiting until they save up for a large down payment to avoid paying Private Mortgage Insurance. The fact is, you don't need to have 20% down to buy. There are many great low down payment packages out there, such as FHA loans (3.5% down) or conventional loans with as little as 3% down. One of the most popular packages is a 5% down conventional loan with no mortgage insurance! Nowadays, it's very common for people to monitor their credit. Many people don't want their credit pulled until they are absolutely ready to buy because they fear their score is going to be impacted. This is another misconception - there is no set formula detailing how much your score is impacted by being pulled. If you have pretty good credit as it is, the impact of having a lender take a look at it is going to be minuscule because you've already proven you can manage your own credit risk. If your credit isn't great, give CRE Credit Services call and they can help you manage it a bit better. If you have any questions about the minutiae of lending, or if you want more information about whether you're eligible for a home loan, please don't hesitate to reach out to us. Interest rates are at historic lows, so you don't want to miss out on your chance to make the dream of homeownership a reality.  Today we are talking about a topic we get a lot of questions about: Zestimates. Zestimates are Zillow’s automated home value system that will tell you what your home could sell for in the market. Is this the best way to determine value, and should you trust it? The answer is maybe, but it might not be a good idea. Zillow themselves have disclosed that their Zestimates can be anywhere from 5-15% inaccurate. They use a basic algorithm to determine value that takes into account square footage, bedrooms, and bathrooms, but not much else. They also use sales data from their site, but that is often inaccurate as well. So please don’t look at your Zestimate as the exact figure your home will sell for. To truly determine your home’s market value, you need to hire an agent who has boots on the ground and understands what buyers are looking for. There are a lot of things that go into determining your value that aren’t calculated in Zillow’s algorithm. Things like absorption rates, inventory, and interest rates can all change from one price range to the next. With that being said, there are a lot of agents out there that don’t have a ton of experience. It’s easy to get your real estate license, but it’s much more difficult to get to the point where you have the experience needed to accurately assess the value of the home. Every listing we take, we do a pre-appraisal to get yet another valuation for your home. So, be careful on Zillow, and don’t make your decisions based on that valuation. If you have any questions for us or are looking to buy or sell, give us a call or send us an email today! Discount Realty Services vs. For Sale By Owner Sites vs. Full Service
What’s the best type of service for selling your NYC property? There are three main ways to sell real estate today. Which is right for you? FSBO For-sale-by-owners still happen now and again. They aren’t that common in NYC due to the prices, the liabilities, and how busy we are, but some try. However, the data shows that very few who attempt this path end up selling this way. Most end up deferring the task to an agent. Even the head exec of one of the country’s most notable FSBO websites ironically used a real estate agent to sell his own home in NYC. The danger here is that a lot of the websites that say they offer support to owners, end up costing more than an agent would. Often this is upfront money, with no guarantee of a sale. Discount Realty Services Discount brokers often promote themselves as a cheaper option. They offer a bare bones service. They may just put your property on the MLS and a few other low-level websites, and hope another full-service agent does all the work for them. This can work, but what they don’t tell you is that in order to attract buyers you’ll need to offer a competitive and attractive commission to buyers’ brokers. If you don’t it is unlikely anything will happen. Again, the bottom line normally just results in paying the same, but for inferior service. Full-Service Real Estate Agents For those that are busy, who want to minimize legal liability, streamline the process, and have an expert get them top dollar for their homes, it is only common sense to choose a full-service team. It offers the best value, and best service. You can enjoy the privacy and protection you need, while attracting the best buyers. If this is important to you, and you wanted to be treated well, get in touch to find out what The Ratner Team can do for you today… Get Your Property value Now Get an instant estimate today to find out how much your property Is worth for FREE! www.BrooklynPropertyValuation.com The #1 Brooklyn real estate team is standing by to help you with your next real estate move. Contact The Ratner Team for a no obligation free home value report, ask about our record setting real estate sales service, and find out about the best new property listings we have coming to market. Get More Stats @ www.NewYorkMarketReports.com The Property Staging Debate: Should You Do It & How Much?
Should you stage your property to help it sell faster, and for more money? The big staging debate has been going on for a while. Some don’t see the rewards. Others wouldn’t dream of marketing a property unless they’ve staged it. So, do the numbers really work? How much staging should you do? Staging By The Numbers Virtually all builders have a model. Pre-construction condos will almost invariably be presented with materials showing staged and furnished units. When it comes to residential homes:
3 Levels of Property Staging There are a variety of levels of staging depending on your budget, how you are selling, and what the market demands. This can generally be broken down into three main categories.
Investing in Staging Staging costs can vary from a couple hundred dollars for virtual staging and renderings to bringing in furniture and appliances, to giving the property a complete makeover for six figures. However, you do want to be sure you are going to generate a positive return on your investment. You may not find that using the most luxurious service, if the property doesn’t warrant it. Perhaps you just want to stage one model unit in a multifamily for the best return. Or some investors may buy the furniture and include it in the sales price, or resell it afterward. Often at a profit. Those on a tighter budget may just rent the furniture and staging materials until a contract is signed. Summary Staging can help. Check out what you need to compete and stand out. Do the numbers, and get an expert second opinion to back up your assumptions. For help and advice on the staging debate and finding the right level of staging for your property contact us. We’re experienced in selling homes, apartment buildings, new construction, redevelopments, and everything in between. Get Your Property value Now Get an instant estimate today to find out how much your property Is worth for FREE! www.BrooklynPropertyValuation.com The #1 Brooklyn real estate team is standing by to help you with your next real estate move. Contact The Ratner Team for a no obligation free home value report, ask about our record setting real estate sales service, and find out about the best new property listings we have coming to market. Get More Stats @ www.NewYorkMarketReports.com 4 Ways To Avoid Taxes When Selling Your Property
There are great gains to be found in real estate. Sometimes those gains can also trigger big tax bills. How do you retain more of what you make, and minimize what Uncle Sam takes out of your pocket? While taxes can be steep and complicated, there are numerous exemptions for legally avoiding unnecessary taxation. The government has not only created these for you, but expects you to take full advantage of them. If you don’t, you are just throwing away what you’ve made. Here are four ways to help minimize that… Self-Directed IRAs Contributing to, and investing through self-directed retirement accounts can help defer taxes and even secure tax free gains. 1031 Exchanges These powerful tax deferring vehicles can help investors make the most of opportunities, without the harsh financial penalties. They are also far more flexible than most realize. Find out more about them here. Donate New legal changes have increased the amount that investors can give to charitable organizations and deduct. Real estate owners may also find they can begin passing on more of their estate to heirs early through gifts and various holding structures earlier too. Learn more about Wills, Trusts & Estate Planning here. Better Accounting & Tax Planning Most individuals and families can fare far better at tax time with a better accountant, and forward thinking tax planning which maximizes deductions each year. With a good plan you’ll be reducing your tax burden right from January 1st each year, and have the documentation to offset any gain you make. Get Your Property value Now Get an instant estimate today to find out how much your property Is worth for FREE! www.BrooklynPropertyValuation.com The #1 Brooklyn real estate team is standing by to help you with your next real estate move. Contact The Ratner Team for a no obligation free home value report, ask about our record setting real estate sales service, and find out about the best new property listings we have coming to market. Get More Stats @ www.NewYorkMarketReports.com Showing a Property with Tenants
Are you trying to sell a property which has tenants? What’s the best way to navigate the situation? How do you handle showings? Most property owners aren’t familiar with the best practices for showing homes and apartments for sale. It can get even trickier when there are tenants occupying units. How do you deal with it? Who Should Show the Property Data shows that the property owner isn’t the best person to show a property to prospective buyers. There are just too many emotional factors involved to be conducive to a sale and receiving the best offer. Tenants certainly shouldn’t be showing it either.There are too many conflicts of interest involved. If you are not using a real estate agent; make sure you have a third party there you can trust. Make sure they are hyper-vigilant about protecting tenant’s property and privacy too. Working with, and around Tenants Then there are the simple logistics of showing a property that has tenants which can be challenging. You need to be able to show your units. You have the right to. Just make sure you give renters proper legal notices. You also don’t want to scare your tenants off. You don’t want them to leave and devalue your property or interrupt your income. So be transparent with them and set clear expectations. Let them know how secure they are with their lease and being able to stay. And how it is in their best interests to help. Get Your Property value Now Get an instant estimate today to find out how much your property Is worth for FREE! www.BrooklynPropertyValuation.com The #1 Brooklyn real estate team is standing by to help you with your next real estate move. Contact The Ratner Team for a no obligation free home value report, ask about our record setting real estate sales service, and find out about the best new property listings we have coming to market. Get More Stats @ www.NewYorkMarketReports.com What Types Of Incentives Really Work For Selling A Home?
Which types of incentives can really help your property sell? Bonuses and incentives can be powerful tools for selling properties faster, and encouraging multiple higher bids. How effective and profitable they are all depends on which you pick, and how they are offered. There are several types of incentives; including bonuses to selling agents, concessions to buyers, and gifts and other offers. Even if you don’t plan on using all of these it pays to know what other competing sellers may be offering. Bonuses to Agents The truth is that many real estate agents will promote the properties which offer the most lucrative compensation. This is true whether they are listed in the MLS with a full-service broker, via a discount or for sale by owner service, or privately. Not all agents do this, but it’s probably more common than most realize. Bonuses typically aren’t visible to non-Realtors. Beyond the traditional commission, there may be bonuses to buyers’ agents who bring a deal within a certain amount of time, or secure a closing by a specified deadline. This could be a flat fee, or a percentage. It is not completely uncommon for this to be as high as 5-10% of the sales price. Rebates & Seller Concessions Another form of incentives are cash rebates and seller concessions. Rebates are sometimes offered to buyers by their agents to make the deal happen. Concessions are generally to help cover buyer closing costs or repairs and improvements. These can often be built in on top of the desired sales price. Just be careful of the legalities of these types of incentives and how they may impact any financing. Incentives All types of incentives have been seen in the past. This has ranged from the promise of exotic vacations, to appliances, to luxury cars and more. Just make sure your incentives are a match. For example; it makes no sense to offer a Kia automobile as a bonus for someone buying a multimillion dollar home. A TV isn’t likely to sway someone buying an expensive luxury condo or income producing apartment building either. These incentives may not always pay big returns in direct monetary terms. However, they may help create buzz, increase visibility, and generate much-needed attention and more bids. Get Your Property value Now Get an instant estimate today to find out how much your property Is worth for FREE! www.BrooklynPropertyValuation.com The #1 Brooklyn real estate team is standing by to help you with your next real estate move. Contact The Ratner Team for a no obligation free home value report, ask about our record setting real estate sales service, and find out about the best new property listings we have coming to market. Get More Stats @ www.NewYorkMarketReports.com |
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