Mitchell Feldman Sells Brooklyn!

"The Real Estate Experience!"
Welcome to Mitchell Feldman Sells Brooklyn! Sign in | Help

Mitchell Feldman

  • How to Buy a New Home While You Sell Your Old One in Brooklyn (or anywhere else!)

    How to Buy a New Home While You Sell Your Old One in Brooklyn (or anywhere else!)

     

    Often times I am asked by consumers “how do I go about purchasing another home when you have to sell the one that I presently own?” This is one of the oldest questions in the history of real estate and the answer is quite complicated. The goal of this article is to educate consumers on this process and offer insights to help make this process go as smoothly as possible.

     

    Basically when you undertake selling one property and purchasing another you are looking at a double edged sword. On the one side if you start looking for a home to purchase before you sell your existing property (assuming you need the proceeds from your sale to finance your next purchase) you may place your self in a position where you are desperate to sell. As an example, if you see a house that you fall in love with, or let’s say you find an incredible deal, being that you need to sell your existing property before you buy, you are going to have a hard time. If you have not sold your home you will need to request a contingency on your offer regarding the sale of your existing home.

     

    Here in Brooklyn, it is rare that a seller will give you that contingency because it leaves too much of a legal loop hole for a buyer to back out of the deal. In other words, if you as a buyer change your mind after the fact and decide you no longer want to purchase the new house, you can make sure you do not sell your existing property (it is quite simple to sabotage your own deal on the sell side before you go to contract) and back out of the deal on the new property. Now some may say that there may be a seller willing to give you that contingency, but the only reasons a seller in Brooklyn would give you that contingency would be if a) you are buying all cash with no mortgage contingency or b) you were the only offer on the table and OVERPAYING for the property (which you do not want to do).

     

    Bear in mind that when you go into contract on the new property you will also have to write out a down payment check at the signing of the contract, usually they will want 5-10% of the purchase price so either way you would have to have that money handy. In the past when I have tried to get a homeowner to accept an offer contingent on a sale, the seller would ask if the old property is in contract, on the market and/or fielding offers. Again, this is where the problem lies, if you do not have your home on the market, the seller of the new property is going to be scared that you will not be able to affect the sale of your existing property in a timely fashion.

     

    Based on all of this, if the consumer finds a property they want to purchase, they will be pressured to get their home sold quickly and therefore may be forced to have to sell their home for less in order to guarantee a timely sale to salvage the next purchase. Often times a homeowner has said to me the following “I do not want to put my home on the market yet because I first want to find a place to buy.” If you go that route, just be prepared to sell your home for less to make a quick deal.

     

    On the other edge of the sword is the consumer who puts their home on the market feeling the need to get a deal on their property first so they will not have the above-mentioned problem. However, this sometimes creates new problems. Mainly, if a buyer comes into your home and gives you a fantasgreat offer, you will be under duress to find a place to buy. Basically this means you may have to spend more on the house you want to purchase in order to make a quick deal on the buy side.

     

    This is the double edged sword in a nut shell. Ultimately, the later is the better problem to have. “Why” you may ask? This is due to the fact that when you sell you can always slam on the brakes if it becomes problematic finding a house to buy. You also have many options that can help. As an example, you can go into contract on a deal with your existing property requesting that the buyer give you more time to close. Another option would be to close but negotiate a deal whereby you can stay in your existing house for sometime after the sale (like 6 months for example) in order to find a home to buy. If you do that be prepared to pay the purchasers mortgage interest and real estate taxes on a per diem basis. Usually you will also have to place some money in escrow to insure that you do not damage the house prior to moving out. Yet another option would be to rent temporarily until you find a new permanent home.

     

    In my humble opinion the best thing to do is to get started with both the purchase and the sale at the same time. In other words, put your home on the market and start showing it to perspective buyers and fielding offers. Remember, you will not be accepting an offer unless you fell comfortable with the fact that you will be able to find another home. You can even hold the potential buyers for your house at bay if need be while you look. At least you will get an idea as to how buyers perceive your home and hopefully get several offers to give you an idea as to what your home can sell for.

     

    While you’re doing that you can also start looking at homes to purchase. The hope is that all the “planets align” and at the same moment that you get a great offer you will also find the perfect home for your needs. I will tell you this; I have helped homeowners through this process since 1993 and have done it hundreds of times. It seems as though the “planets align” quite often. The important thing that also makes it work is when you as the consumer make the conscious decision that you want to make a move. If you really want it, it will happen. Always does and always will!

     

    If you have a question or comment regarding this blog entry, submit them below or contact me direct. Thanks for reading!

     

    Sincerely,

    Mitchell S. Feldman

    Associate Broker/ Director of Sales

    Madison Estates & Properties, Inc.

    Office: (718) 645-1665/ Cell: (917) 805-0783

    Email: MitchellSFeldman@aol.com

    Web sites: www.MitchellFeldman.com and www.MadisonEstates.com  

     


    © Copyright by Mitchell Feldman. All Rights Reserved. Republication or redistribution of this material is expressly prohibited without prior written consent by Mitchell Feldman. This information is deemed reliable but not 100% guaranteed. Mitchell Feldman is not at attorney and therefore not able to give legal advice. If you are involved in a real estate transaction and have a question, besides speaking to Mitchell, you should also speak to your attorney.

  • 2 1/2 Story For Sale in Madison

    Beautiful Detached House on 33' by 100' Lot!
    Excellent Madison Location!

    • 1,650 sq. ft., 1 bath, 3 bdrm 2 1/2 story "Finished Attic w/Extra Bedroom!" - MLS® $789,000 - Detached on 33 x 100 Lot!

     -  Madison (Ave. R): Detached One Family on 33’ by 100’ Lot! This Beautiful Ranch type Home Features a Large Living Room & Formal Dining Room both with Parquet Floors! In addition to that you have a Den, Kitchen, 2 Big Bedrooms & Updated Subway Tile Bath! There is also a Finished Attic offering an Additional Bedroom! The Basement is Finished with a Huge Family Room, Laundry & Separate Entrance! Private Backyard with Parking for Several Cars and Detached Garage! Great Location close to shopping & Transportation! Excellent Move-in Condition with Updated Roof & Heating System! Asking $789K!

    Property information

  • Apartment For Sale in Midwood

    Cute 1 Bedroom Co-op in Prime Midwood Location!
    Cute 1 Bedroom Co-op in Prime Location!

    • 700 sq. ft., 1 bath, 1 bdrm apartment "Located on top floor!" - MLS® $139,000 - Why Rent when you can OWN

     -  Midwood (E. 19 & Ave. P): First Time on Market! Fantastic Investment Opportunity! Cute 1 Bedroom Co-op in Prime Midwood Location! Eat-in Kitchen, Large Living Room, Large Bedroom & Bath! Located on the Top Floor! Low Maintenance of $341.00 per month includes gas, heat, water & real estate taxes! This co-op also affords a tax deduction of $2900.00 per year for an owner occupant! Why rent when you can own for less? There is NO FLIP TAX in this building and Pets are ALLOWED! You can also Sublet ANYTIME, even from the first day of ownership! Do not miss this opportunity! We have keys to show at anytime!! Special consideration given to all cash buyers who can close quickly! Asking $139K… Hurry!

    Property information

  • Duplex For Sale in Marine Park

    Spectacular One Family Brick Home!
    Private Drive & Garage!

    • 1,600 sq. ft., 2 bath, 3 bdrm duplex "Plus Finished Basement with Bath!" - MLS® $549,000 - Solid Brick 3 BR Duplex!

     -  Marine Park: Office Exclusive! First Time Listed! Solid Brick One Family 3 Bedroom Duplex! 20' Wide House! This home has it all! Large Living Room & Formal Dining Room both with Parquet Floors! Beautiful Updated Kitchen with Sliders to Backyard! Great for summer entertaining! All the Bedrooms are Large with plenty of Closet Space & Built-in Air Conditioners! Brand New & Tastefully done Ceramic Tile Bath! Full Finished Basement with Separate Entrance, Family Room, Laundry Room & Additional Bath with Jacuzzi! New Heating System, Roof, Central Station Alarm & Anderson Windows throughout! Private Driveway & Garage and Porch in front of house, Private Backyard!! Absolute Move-in Condition! Asking $549K

    Property information

  • Open House in Marine Park on Sunday

    July 2010
    SuMoTuWeThFrSa
    27282930123
    45678910
    11121314151617
    18192021222324
    25262728293031
    1234567

    Marine Park, Brooklyn  -  We invite everyone to visit our open house at 1872 East 38 Street on July 11 from 12:00 PM to 3:00 PM.

    Property information

  • Open House in Marine Park on Sunday

    July 2010
    SuMoTuWeThFrSa
    27282930123
    45678910
    11121314151617
    18192021222324
    25262728293031
    1234567

    Marine Park, Brooklyn  -  We invite everyone to visit our open house at 1772 East 31 Street on July 11 from 12:00 PM to 3:00 PM.

    Property information

  • 4F-1119 Ocean Parkway in Midwood is Sold!

    Sold

    Midwood, Brooklyn  -  The apartment at 4F-1119 Ocean Parkway has been sold.

    Property information

  • Single Story For Sale in Marine Park

    Totally Renovated One Family 3 Bedroom Duplex!
    Semi-Det 1 Fam w/Private Driveway!

    • 1,600 sq. ft., 2 bath, 3 bdrm single story - MLS® $579,000 - Totally Renovated!

     -  Marine Park: New to Market! Semi-Detached One Family 3 Bedroom Duplex with Private Driveway!! Totally Renovated! Large Living Room & Formal Dining Room both with Exquisite Parquet Floors! Eat-in Kitchen that will be finished to the buyer’s specifications! YOU pick the color of your cabinets & Granite Countertops! All the Bedrooms are Large plus you have a Beautiful New Bath with Slate Floor & Retro Cast Iron Tub! Huge Attic for Storage, New Sheetrock, Paint, Moldings & so much more! Full Finished Basement with Laundry Hook-ups, Family Room, .75 Bath, Hook-ups for kitchen & Separate Entrance! Private Driveway & Detached Garage, Private Backyard! All this on a great Marine Park block! Asking $579K

    Property information

  • 2 Story For Sale in Marine Park

    Big & Beautiful One Family Brick!
    Big Beautiful Brick!!

    • 1,750 sq. ft., 2 bath, 3 bdrm 2 story "Plus Finished Basement w/Bath!" - MLS® $569,000 - Beautiful TreeLined Block

     -  Marine Park: Office Exclusive! Semi-Detached One Family Brick 3 Bedroom Duplex on Beautiful Tree Lined Block! All Large Rooms… Living Room & Formal Dining Room both with Parquet Floors! Updated Eat-in Kitchen with Granite Countertops & Sliding Glass Doors leading to Rear Porch & Private Backyard! Full Finished Basement with Family Room, Laundry & Additional Bath with Shower! Bright & Airy House with plenty of upgrades! Excellent Move-in Condition! Detached Garage! Asking $569K!

    Property information

  • Getting a Mortgage in Brooklyn (or anywhere else)? Lock-in the Rate!

    Getting a Mortgage in Brooklyn (or anywhere else)? Lock-in the Rate!

    The most important first step in purchasing a house is putting together a budget and knowing how much you can spend and what your monthly payments will be. When banks pre-qualify buyers (so to speak), in order to do so they have to look at the buyer's last two years tax returns, last three months bank statements and full factual credit report at a minimal level. The bank will form a ratio of your monthly living expense (mortgage payment, real estate taxes and homeowners insurance) vs your reported income.
    Several years ago mortgage rates for a 30 year fixed mortgage were about 6%. At that time if you took a 30 year fixed mortgage at 6% for say $400,000.00 your mortgage payment would have been $2,400.00 per month. Right now (6/25/2010) mortgage rates are the lowest they have been in the history of man. Now you can get a 30 year fixed mortgage with a rate of about 4.375%. This means that if you borrow the same $400,000.00 now with the lower rate you will be paying just $1996.00 per month. Wow... a savings of over $400.00 per month!!
    Combine that with the fact that prices in most areas are also down by at least 10% in most parts of Brooklyn over the past two years creates a fantastic buying opportunity for consumers right now. The house you were buying for $450,000.00 in 2008 can now be purchased (in most cases) for $410,000.00. When you take that and the lower mortgage rates into consideration, you would be saving almost $500.00 per month!
    This is the first time ever that mortgage rates and home prices are both low relatively speaking. Usually home prices and mortgage rates act conversely. When rates go down prices go up and when rates go up prices go down. I think it is safe to assume that as we move forward, either mortgage rates or home prices will go up. Hence if you wait to buy, you may miss a great opportunity.
    So in order purchase you need to prepare a budget and get yourself pre-qualified. Your best bet would be to meet with three banks with all the paperwork I mentioned above and have them run your credit. At that point the banks will be able to explain to you your options and what type of mortgage products they can offer you. Keep in mind that as a buyer you will also incur closing costs associated with your mortgage which generally will be about 5% of the actual loan amount. When you compare banks you have to take into consideration the actual rate they offer you and the closing costs to determine who is offering you the best deal. In addition to that, often times a bank will allow you to"buy down" the rate by paying extra points (1% of the loan amount). The only time you will want to consider doing that is if you are certain that you will not be paying off the loan for a long time.
    Here is a list of questions to ask the banks when your getting pre-qualified:
    1) What is the rate you can offer me?
    2) How much are the closing costs?
    3) Do I have to pay any points to get the rate you quoted?
    4) Can I buy down the rate and if so how much would that cost?
    5) How quickly can you get me a commitment once I put in an actual application?
    6) Do you need any other paperwork from me?
    7) What other types of loan products do I qualify for (as opposed to a 30 year fixed mortgage) and how will they benefit me?
    8) Can I lock-in the rate you are quoting me? If so for how long does the lock-in last? Do I have to pay to lock-in?
    With regard to number (8) above... most of the time when a bank quotes you a rate it is NOT locked in. This is because nobody knows how long it will take you to find a house you want to buy. Ultimately when you do negotiate a deal and go into contract to purchase a home, you will then be submitting your actual mortgage application to the bank. Because rates always go up and down, the bank will not be able to lock-in your rate until they know you are actually buying a house. Sometimes buyer chose not to lock-in the rate. In that case you will not know what rate you will actually get until the closing is set up. At that point in time the bank would set the rate at whatever the prevailing rates are (which could be anything, who knows). Sometimes the rate can be what the bank originally quoted, other times is can be very different so you have to be cautious. The best thing to do if you want to be sure is to ask what rate you will be given again at the time you submit your actual mortgage application to the bank. At that juncture, if you happy with the rate you should lock-in!
    Here are some additional questions to ask when you lock-in:
    1) How much do I have to pay to lock-in?
    2) Will that lock-in fee be credited back to me at the closing (usually it will be!)?
    3) How long does the lock-in last?
    You want to make sure the lock-in will be good long enough for you to close. Speak to your attorney about that to make sure you have enough time. I hope you find this information helpful and informative. If you have a question regarding this blog entry or Brooklyn real estate in general, submit them to my blog or contact me direct. Thanks for reading!!  
    Sincerely,
    Mitchell S. Feldman
    Associate Broker/ Director of Sales
    Madison Estates & Properties, Inc.
    Office: (718) 645-1665/ Cell: (917) 805-0783
    Email:
    MitchellSFeldman@aol.com
    Web Site:
    www.MitchellFeldman.com and www.MadisonEstates.com

    © Copyright by Mitchell Feldman. All Rights Reserved. Republication or redistribution of this material is expressly prohibited without prior written consent by Mitchell Feldman. This information is deemed reliable but not 100% guaranteed. Mitchell Feldman is not at attorney and therefore not able to give legal advice. If you are involved in a real estate transaction and have a question, besides speaking to Mitchell, you should also speak to your attorney.
    .AOLWebSuite .AOLPicturesFullSizeLink { height: 1px; width: 1px; overflow: hidden; } .AOLWebSuite a {color:blue; text-decoration: underline; cursor: pointer} .AOLWebSuite a.hsSig {cursor: default}
  • 3 Story For Sale in Sheepshead Bay

    Huge 2 Family Home on Giant 60' by 107' Lot!
    Legal 2 Family with 2 Private Driveways!

    • 3,600 sq. ft., 4 bath, 9 bdrm 3 story "Plus Full Finished Basement!" - MLS® $899,000 - Huge 60' by 107' Lot!!

     -  Sheepshead Bay: New to Market! Fantastic and unique property! Legal Two Family House on Enormous 60 foot by 107 foot Lot!! Two Separate Private Driveways... One on the left another on the right! If you subdivide the lot you can have two 30' by 107', each already having it's own curb cut and private drive! Or just keep the whole property for yourself and enjoy the Huge Backyard with Patio, Deck, Pool and Detached Two Car Garage! The home itself is about 3600 Square feet with a FULL Bath on Every Floor! The owner's apartment is a 4 Bedroom Duplex with Big Living Room, Huge Updated Eat-in Kitchen, Dining Room and 2 Full Baths! The Rental apartment has 2 Bedrooms, Large Living Room, Formal Dining Room, Eat-in Kitchen & a Full Bath! Plus you have a Fully Finished Basement with Family Room, 2 Bedrooms, Laundry Room, Storage Room and Separate Entrance! All this in a great Sheepshead Bay location! Will easily be delivered vacant! Asking $899K

    Property information

  • Open House in Marine Park on Sunday

    June 2010
    SuMoTuWeThFrSa
    303112345
    6789101112
    13141516171819
    20212223242526
    27282930123
    45678910

    Marine Park, Brooklyn  -  We invite everyone to visit our open house at 2008 Stuart Street on June 6 from 12:00 PM to 3:00 PM.

    Property information

  • Open House in Old Mill Basin on Sunday

    June 2010
    SuMoTuWeThFrSa
    303112345
    6789101112
    13141516171819
    20212223242526
    27282930123
    45678910

    Old Mill Basin, Brooklyn  -  We invite everyone to visit our open house at 1403 East 55 Street on June 6 from 1:00 PM to 4:00 PM.

    Property information

  • Open House in Midwood on Sunday

    June 2010
    SuMoTuWeThFrSa
    303112345
    6789101112
    13141516171819
    20212223242526
    27282930123
    45678910

    Midwood, Brooklyn  -  We invite everyone to visit our open house at 4G-1119 Ocean Parkway on June 6 from 12:00 PM to 2:00 PM.

    Property information

  • Open House in Marine Park on Sunday

    May 2010
    SuMoTuWeThFrSa
    2526272829301
    2345678
    9101112131415
    16171819202122
    23242526272829
    303112345

    Marine Park, Brooklyn  -  We invite everyone to visit our open house at 2008 Stuart Street on May 23 from 12:00 PM to 3:00 PM.

    Property information

More Posts Next page »