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Listing Your Brooklyn Home For Sale? Watch the Commission Split! Getting A Better Price For Your Home In order to sell a home for the highest price possible, it is important that your property be well exposed to potential buyers. Without the highest possible level of exposure, many buyers will not know your home is for sale. It is all about supply and demand. If there are less people looking at your home, the demand goes down and so will your ultimate selling price. The Right Real Estate Agent Homeowners list their homes with real estate agents because of the high level of exposure the agent provides, usually resulting in higher sales prices. Choosing the right real estate agent is complicated because their fees and level of service vary. Agents that do more for the homeowner charge higher fees and are usually worth it. On the other hand, those that charge low fees do less for the home owner. Also, offices that take a low fee often cannot make a profit and survive. Unfortunately, many agents cannot secure business from homeowners based on their knowledge and skills, so they offer lower prices to attract business. Homeowners should be wary of these so called “discount” offices because given the profit margin they are working on, they cannot afford to do as much to expose the property. Like the old adage says “you get what you pay for.” Commission Split In Brooklyn, the vast majority of brokers are members of the Brooklyn New York Multiple Listing Service (MLS). When an agent submits a new listing to the MLS, if any agent other than the listing agent sells the property, the agreed upon commission from the homeowner gets split between those agents and their respective offices. It is important to note that 85% of the deals made with homes listed on MLS actually involve two agents, one being the listing agent and one being the selling agent. This is due to the fact that there are over 2400 agents who are members of the MLS. This is also a testament to the power of the MLS. Real estate agents and offices can charge any commission and offer any split to cooperating agents they choose. It is illegal for real estate offices to collude and fix commission amounts and/or splits with their competitors. In recent years, some agents and brokers have changed the way they do business in an attempt to make more money—sometimes to the homeowner's detriment. What some agents are doing is offering a very low commission split to the selling agent. For example... if a property's agreed to commission was 6% and the commission was split 50/50 with the cooperating broker, each office would get 3%. This split would attract all MLS agents to sell the property because they are being offered a strong incentive. Sometimes an agent reaches an agreement with the property owner to list the property for a discounted commission— let's say 4%. The homeowner figures they will be saving 2% so they are enticed to list with that office. However, in order to stay profitable, many times that office submits the property to MLS offering only 1% to the selling agent, hence the discount they gave to the homeowner is reflected in a lower commission to the selling agent while the listing agent keeps a full 3% for themselves. Now, imagine you were a real estate agent working with buyers. You see five homes you want to show the buyers—you notice that on two of the listings your reward is 3%, on another two it is 2%, and on the third it is only 1%. Which homes would you show first? Which homes would you show with more enthusiasm? Which home would you choose to not even show? If an agent is going to offer a low split to cooperating brokers, it basically defeats the purpose and benefit of the MLS. It begs the question, why wouldn't they simply keep the listing to themselves as an office exclusive and then they would not have to split the commission at all? The answer is that most homeowners are aware of the power of the exposure afforded with MLS and want their property to be placed on the MLS. Therefore, the agent places the property with MLS but offers a split so low that most agents would not want to show the property, or at best it would be the last house they would show. I was recently negotiating a deal and learned that the listing agent was getting a 6% commission but offering only 1% to the selling broker. This is the equivalent of an 84/16 split! Conclusion Aside from the total commission awarded to the selling agent, there are several factors that should be considered when listing your home for sale with an agent. The seller should ask the following questions to the agent being considered: a) Will the property be placed on the Multiple Listing Service? b) How will the commission be split with selling agents? c) How will the property be marketed? And— d) How long is the listing period? (You do not want to lock yourself up to the wrong broker for 5 years.) If you have any thoughts regarding this blog entry please leave a comment or contact me!
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.
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Prime Ocean Parkway Location!
• 1,000 sq. ft., 1 bath, 2 bdrm apartment "6 Floor Co-op Building" -  MLS® $269,000 - Beautiful 2 Bedroom Co-op Midwood, Brooklyn - Midwood: Beautiful Ocean Parkway (between Avenues K & L) Co-op!! Featuring a Large Living Room & Dining Area with Hardwood Floors! Updated Kitchen with Window! Updated Ceramic Tile Bath! Big Master Bedroom with Wall to Wall Closets! The entire apartment is flooded with Natural Light from 3 different directions! Panoramic Views! The Maintenance includes the heat & real estate taxes! Just pack up your stuff and move right in! Close to shopping and public transportation. The building also has laundry facilities and a built in parking garage where you can rent a parking space for $80.00 per month (small waiting list). NO FLIP TAX! Asking $269K Property information
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40 by 100 Lot with Private Drive!
• 1,500 sq. ft., 2 bath, 2 bdrm 2 story "Plus Attic & Basement!" - MLS® $629,000 - Priced to Sell Fast!! Midwood, Brooklyn - Midwood (East 27 & Avenue J): Office Exclusive & New to Market!! Once in a lifetime opportunity! Fully Detached One Family Home on 40 by 100 Lot! Old World Charm at it’s Best! This Lovely Home features a Big Front Porch, Huge Backyard and Private Driveway! Upon entering you are greeted with Magnificent Original Mahogany Wood accents on the walls, banisters, moldings & Pocket Doors! There are High Ceilings throughout and a Large Living Room with Pocket Doors leading to the Formal Dining Room with Fireplace! Beautiful Stained Glass Windows throughout! Eat-in Kitchen and Half Bath on First Floor plus access to the Backyard! Huge Master Bedroom with 2 Walk-in Closets plus Large Stand-up Attic (unfinished)! This home also has Central Air & Heat! Full Basement with plenty of storage space! Move-in Condition! Brace yourself…the asking price is just $629K. Property information
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This Huge 3 Bedroom Condo has it All!!
• 1,630 sq. ft., 2 bath, 3 bdrm single story "Over 1600 SqFt of living space!" - MLS® $669,000 - Live in the Lap of Luxury Sheepshead Bay, Brooklyn - This is one of the Biggest & Most Beautiful Luxury Condos in Sheepshead Bay! Being 2.5 Years Young this Condo offers a Stunningly Gorgeous Kitchen with Granite Countertops & Stainless Steel Appliances overlooking the Formal Living Room & Dining Area with Beautiful Hardwood Floors and Sliding Glass Doors to Large Terrace! Porcelain & Hardwood Floors throughout! 3 Bedrooms & 2 Baths including Master Bedroom with Designer Ceramic Tile Bath, Double Closets and additional Terrace! You also have a laundry room in the apartment, your own heating system and custom window treatments! Beautiful Panoramic Views (towards the East)! Live in the lap of luxury! Also included in the sale is an indoor parking space!! What else can you ask for? Contact us today for an exclusive appointment to view! Property information
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Detached Brick Colonial Center Hall!
• 1,800 sq. ft., 3 bath, 4 bdrm 2 story "Plus Full Finished Basement!" - MLS® $799,000 - A Rare Find!! Marine Park, Brooklyn - Marine Park: First Time on Market! This is a Rare Find!! Fully Detached Brick Colonial Center Hall with Private Driveway & Garage! This entire home is in Immaculate Condition and Impeccably Decorated! When you enter the Home you have a Center Hall with French Doors leading to a Large Living Room to the Left and a Beautiful Formal Dining Room to the right, Updated Eat-in Kitchen plus Half Bath! Upstairs you have Four Big Bedrooms (converted to three but easy to convert back!) and a Full Bath! Interior Stairs lead to a Finished Basement with Large Family Room, Bedroom, Full Bath & Office with Separate Entrance! The certificate of occupancy allows for this space to be used as a professional office! There is also an enclosed deck with Jacuzzi & Fireplace! Private yard! Call for more details and to view this wonderful home! Asking $799,000
Property information
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Absolute Move-in Condition!
• 1,800 sq. ft., 3 bath, 3 bdrm 2 story "Plus Finished Basement!" - MLS® $829,000 - Fantastic Location! Midwood, Brooklyn - Midwood: New to Market! Semi-Detached One Family with Private Driveway! This Beautiful Home features an Enclosed Sun Porch, Living Room & Formal Dining Room both with Hardwood Floors plus a Brand New Eat-in Kitchen with Granite Countertops, Ceramic Tile Backsplash & Stainless Steel Appliances that is simply gorgeous! Upstairs you have 3 Bedrooms and an Updated Bath! There is also a Half Bath on the First Floor plus a Full Finished Basement with 2 Large Rooms and a 3/4 Bath! The entire house is in mint condition! You also have a private backyard with a big shed! Fantastic Midwood Location! Call for more details and exclusive appointment! Property information
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Fully Detached with Private Drive!
• 1,700 sq. ft., 3 bath, 3 bdrm 2 story "Plus Finished Basement!"
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MLS®
$675,000
- High Demand Location!
Gravesend, Brooklyn
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Gravesend: New to Market! Completely Detached One Family 3 Bedroom Duplex! This home is actually a legal two family being used as a one family! This home features a Big Living Room, Formal Dining Room, Spacious & Updated Eat-in Kitchen with Breakfast Nook! The top floor has 3 Good Sized Bedrooms and a Full Bath! Plus you have a full finished basement with bath and separate entrance! Private Driveway & Detached Garage plus Private Backyard! Great Location! Asking $675K
Property information
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Brooklyn Real Estate Pricing Theory 101
Selling real estate is not the same as selling milk! As is the case with most things in life, figuring out a fair price for the item is relatively easy. A gallon of milk is a gallon of milk no matter where you go and of course we all know that here in Brooklyn the going rate is about $3.00.
If I said I would give you a dollar if you gave me eighty-five cents, would you do it? Of course you would! Now what if I told you I would give you a dollar for $1.05, would you do it? Of course NOT! Well, when a homeowner tries to sell their property for more than it is worth, that is basically what they are trying to do.
You see, when it comes to real estate, just like a dollar bill, a house is simply worth what it is worth. The only thing that makes real estate different when it comes to pricing is that a) beauty is in the eyes of the beholder so the opinion of value can differ from person to person and b) buyers and seller's motivations may differ causing them to buy or not buy. The same could be said for sellers. In the end, if either the buyer or the sellers are not being realistic, chances are they will not make a deal.
Being that property values are so subjective, how can we figure out exactly how much a home is worth? The answer is that we cannot. However, when looking at the facts, we can make certain assumptions and conclusions and at least get a good ball park estimate. Now I am sure you will all agree that here in Brooklyn, you have many neighborhoods and/or blocks where the homes are relatively cookie cutter. Don't get me wrong, houses are like babies, no two are exactly a like, but some are very, very, very similar! If you look at a block where all the homes are attached brick one family houses with three bedrooms, etc...they were almost exactly the same, right? The only thing that varies is condition. The point I am driving at it this, if I see that 8 of those homes on that imaginary block sold in the past year or so, and let's say the sale prices were $400,000, $405,000, $500,000, $450,000, $460,000, $475,000, $425,000 and $465,000, it is safe to assume that the average sale prices of these types of similar homes would be $447,500. So a good way to calculate values on these types of homes would be to simply look at the condition of the home itself and figure out where it falls on the "condition" scale. Is it poor, average, excellent or totally renovated. I would dare to say that the home in average condition would be worth about $450,000, the house in poor condition may be worth $400,000 and the house that is totally renovated may be worth $500,000 (or maybe $520, 000 if it is really nice!).
So...if you are a buyer trying to purchase one of these imaginary homes and think your going to be able to purchase one for say $300,000, it ain't going to happen! Alternatively, if you are a homeowner trying to sell one of these imaginary homes and you want to sell it for $750,000, it ain't going to happen. Both buyers and seller have to look at and be willing to face reality in order to accomplish their goals.
I want to point out that on some blocks the homes may not be so "cookie cutter" and as a matter of fact, some neighborhoods have a very diverse set of different types of homes which could make determining value a little harder. In the end you simply have to review all the homes that have sold as of late, the other homes actively listed for sale right now, the condition and exact location of the home being sold along with current market conditions to figure out the property's potential value. Some are easier than others, but I will tell you one thing...the BUYERS know! Most buyers look at tons of homes before they buy and they know what is out there & at what price! Plus it is very easy for them to do research and find factual sale information online.
Most buyers who start looking for homes these days will quickly realize that 9 out of 10 homes that are actively for sale, here in Brooklyn are overpriced! Hence, when a buyer sees a home that is priced "right" they get emotional and act on it, and they will probably buy it!
All of this is what led me to write this entry on my Brooklyn real estate blog. The goal here is to give consumers thinking about selling their homes advice on how to price their property so as to achieve their needs. Here are the main thoughts I want to get across that you as a homeowner should keep in mind when setting your asking price in today's market (from January 2010 through July 2010): - Have a professional licensed real estate agent meet with you at your home and give you an opinion of your homes value. You may even want to have several agents do this. Agents do not charge for this service and typically refer to it as a Comparative Market Analysis (CMA). The agents will usually bring you over comparable sale information and expound on why they feel your home is worth the numbers they express to you.
- Always try to ask the lowest price possible and plan to be firm!! There is a psychological game that buyers and seller play, its human nature. The seller is willing to accept $500,000 for their home; however they feel they have to ask $550,000 because the buyer will always try to "chew me down." On the same token, when the buyers view this home, they feel it is worth $500,000, but given that the seller is asking $550,000, they feel a need to offer only $450,000 in order the "get the seller to come down to reality." When the $450,000 is presented to the seller, guess what ... nothing happens. Why? Well, the seller feels the "house has only been on the market for 2 weeks and I can wait!" Then the seller does not give a counter offer feeling that the buyers are "just not realistic." When the buyers do not get a counter offer, they refuse to raise their offer because they do not want to negotiate "against themselves!" So as I said nothing happens. Ultimately the house will sell the $500,000 it is worth but only after lots of misery, if they are lucky. Once a house sits on the market for a long time it gets stale and stigmatized and the way the market has been performing as of late, they may be forced to accept an offer of $480,000 out of desperation. As a seller your best bet is to ask the lowest price possible which will create an environment of excitement for the buyers and they will see the value and want to buy your home as opposed to all the others on the market which are not good deals
- Always throw a “9” into the price, ask $599,000 as opposed to $600,000, need I say anything more on this? It is also good to make the asking price a little unusual (i.e. $194,500). It gives the appearance that you have given much thought to your asking price. Hopefully the buyers will give it just as much thought! :)
- Look at other homes that are for sale right now that are comparable to yours and price yours below all the rest! This will make your home look like a bargain.
- Don’t worry about setting your price too low! If your price is below market, all the REAL buyers will see that it is a great deal and you will wind up getting several full price offers. Once that happens you will be in a strong negotiating position where you can then impart unto all the buyers the following “We now have several offers at or above the full price, hence the old asking price is merely a guideline as the home will be selling for above that price. If you want this house you need to give your highest and best offer my midnight tomorrow and the house will be sold to the highest bidder.” Buyers will be so emotionally involved at this point that they would offer more than they would have if the house was priced higher like every other property on the market that is just sitting there.
- Some homeowners think that you cannot raise the asking price, this is simply not true. You can raise the price but the only time you would want to do that would be if you had several full price offers. The bottom line is that if you are not getting good offers based on the price you are asking, raising the price will only cause your property not to be shown. Also, if you’re not getting offer or if you’re not getting good offers, it is an indication that your price is to high. This is scary because in most cases it would mean that you are at least 10% too high and if the numbers don’t work it may be a better idea not to sell the house right now.
- If you have a real estate agent helping you sell your home (which in my opinion you always should!), never enter into any conversation regarding price with a buyer, other agent or anyone else for that matter. Always instruct the person who ask you anything about your price to “please speak to my agent regarding any questions you have about the price.” If they have a question about your home, answer it honestly, but price questions should only be handled by your agent!
If you have any comments or questions regarding this article, please submit them to this blog or call me as I would love your feedback. 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
© 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.
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Mint Condition...move right in!!
• 1,000 sq. ft., 1 bath, 1 bdrm apartment "Located on the 4th Floor" - MLS® $194,500 - Very Economical!! Midwood, Brooklyn - Midwood: Brand New to Market! Beautiful Ocean Parkway (between Avenues K & L) Co-op!! Featuring a Large Living Room & Dining Area with Hardwood Floors, Brand New Kosher Kitchen with Double Sinks, Double Oven (Convection), Dishwasher, Granite Countertops & Floors and Window! Brand New Ceramic Tile Bath! Big Master Bedroom! Updated Electric! You even have a Washing Sink! The entire apartment is flooded with Natural Light and you have Landscaping Views! The Maintenance is only $525 per month which includes the heat & real estate taxes! Just pack up your stuff and move right in! Close to shopping and public transportation. The building also has laundry facilities and a built in parking garage where you can rent a parking space for $80.00 per month (small waiting list). NO FLIP TAX!! All this for only $194,500 and the owner will listen to all qualified offers! Property information
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First Time on the Market!
• 2,000 sq. ft., 3 bath, 4 bdrm 2 story "Plus Rental Apartment below!" -  MLS® $599,000 - 2 Family Priced Right! Marine Park, Brooklyn - Marine Park: New to Market! Solid Brick 2 Family Home on Beautiful Corner Lot! This Semi-Detached Home features a 3 Bedroom Duplex Apartment with Large Living Room, Formal Dining Room, Updated Kitchen with Granite Countertops & 1.5 Updated Baths! Below that you have a nice one bedroom rental apartment that brings in nice income!! All you have to do is pack your bags and move right in! There is also a side & backyard and easy access Garage! Asking $599K
Property information
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The MOST Luxurious Condo in the Bay!
• 2,000 sq. ft., 2 bath, 3 bdrm single story "Penthouse Condo!" - MLS® $1,199,000 - 2000 SqFt Penthouse!!! Sheepshead Bay, Brooklyn - New to market! Ultra Luxurious Penthouse Condominium! Built in 2007, this High End Building is Located within Walking Distance to Subways, Shopping and the Sheepshead Bay Waterfront! This Stunning 2000 Square Foot Apartment Features a Chefs Kitchen with Huge Island, Granite Countertops, State of the Art Sub-Zero Fridge & Wine Cooler, Built-in Meile Coffee Maker & Dishwasher plus Wolf Range! Elegant Living Room with Custom Hardwood Floors and Sliding Glass Doors to Balcony with City Views! Formal Dining Room with Porcelain Floors and Sliding Glass Doors to Second Balcony which is over 50 Feet Long! 3 Bedrooms including Huge Master Bedroom Suite with sliding glass doors to Balcony and Custom Granite/Marble Bath with Jacuzzi & Bidet, Stall Shower & Radiant Heated Floors! Every inch of this condo is custom including 10 foot high ceilings, oversized windows & doors throughout, central air, built-in laundry with Bosch appliances, central station alarm, plus guest bathroom with additional Jacuzzi! Indoor Garage Parking Space is also included with the sale! Motivated Seller, call for more details and exclusive appointment to view! Property information
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Sheepshead Bay, Brooklyn: 721 Desmond Court has been sold! The story of this sale in very interesting. The owner of the house contacted me and informed me that his mother had passed away and that he needed to sell the house which he inherited. He arranged for me to look at the home and tell him how much it was worth. Upon viewing the home I expressed to the owner that it would be worth about $525,000 in today's market. The owner was shocked at this news and I asked him why? He went on to tell me the story of how a neighbor approached him and wanted to buy the house for $350,000. Being that the owner actually lived in San Antonio Texas and it was his mother's home, he had no idea as to it's actual value and he accepted the offer. When the seller's attorney sent a contract to the buyers attorney, the buyer's started to play games. They wanted to put less money down and make a bunch of changes to the contract which ultimately were unacceptable to the seller's attorney. Hence the seller's attorney told him to forget about those people becasue they were not trustworthy and to find a different buyer. That is when the owner contacted me. Upon hearing this story, I told the seller that the buyers were trying to steal the house and it was worth a heck of a lot more! To make a long story short, I sold the house in three days for $537,000!! This is just one example of why it is always best to have a professional real estate agent like me represent you when you are selling a home! If you or anyone you know is thinking of selling a home in Brooklyn, please contact me as I would love the opporunity to help you get the highest price possible! Property information
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Mortgage Rates Sink to Historic Low Level in Brooklyn (and anywhere else!)!
If you picked up today's New York Daily News (12/04/2009) and turned to page 62 you saw the article "Mortgage Rates Sink." The fact is that mortgage rates on a 30 year fixed loan as of today have dipped down to 4.71%. This is the lowest that mortgage rates have ever gone since finance giant Freddie Mac began tracking rates back in 1971! There was also an article about this in today's Chicago Tribune which you can read here:
http://www.chicagotribune.com/business/chi-tc-biz-rates-1203-1204-dec04,0,7133013.story This means that if qualified, you will be paying less than $520.00 for every $100,000 you borrow on a monthly basis. If you borrow $400,000 you would be paying only $2080.00. After you add in real estate taxes and homeowner's insurance you would still be spending less than $2,500.0 per month if you were to purchase a home in Brooklyn (based on average tax and insurance rates and a purchase price of $500,000 with 20% down). Combine that with the income tax write off you get when you purchase a home to be your primary residence and the end result is that it would cost you less to own a house than it would to rent!
In addition and as per my last blog entry (www.homegain.com/blogs/mitchellsfeldman-507663/Homebuyer-Tax-Credit-is-Coming-Back-to-Brooklyn-or-anywhere-else-Better--Stronger) as a first time buyer you can get a $8,000 tax credit if you get into contract by April 30, 2010 and close before July 1, 2010 (some restrictions apply, read my previous blog entry). Even if you’re an existing homeowner selling your primary residence and purchasing another property, you will get a $6,500.00 tax credit (again, some restrictions apply, see my previous blog entry for more details).
In my opinion the planets are aligned right now making it the perfect time to purchase. Home values have gone down over the past three years making today's prices very attractive and there are lots of homes to look at. Combining that with the fact that many buyers wait until the springtime to begin their home search opens up an opportunity for the buyers who are looking to have less competition. This puts the buyer in a stronger negotiating position.
NOW IS THE TIME TO BUY! Think about it... What are the chances that interest rates will stay low, prices will stay down, inventory to remain high and competition among buyers to be low AND the government offering you thousands of dollars to go out and buy a house? If you’re a betting man, it all adds up to BUY NOW!
Have an opinion or question, please submit them to this blog or contact me!
Mitchell Feldman
Associate Broker/Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/Cellular: (917) 805-0783
Email: MitchellSFeldman@aol.com
Web site: www.MitchellFeldman.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.
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Mortgage Rates Sink to Historic Low Level in Brooklyn (and anywhere else!)!
If you picked up today's New York Daily News (12/04/2009) and turned to page 62 you saw the article "Mortgage Rates Sink." The fact is that mortgage rates on a 30 year fixed loan as of today have dipped down to 4.71%. This is the lowest that mortgage rates have ever gone since finance giant Freddie Mac began tracking rates back in 1971! There was also an article about this in today's Chicago Tribune which you can read here:
http://www.chicagotribune.com/business/chi-tc-biz-rates-1203-1204-dec04,0,7133013.story This means that if qualified, you will be paying less than $520.00 for every $100,000 you borrow on a monthly basis. If you borrow $400,000 you would be paying only $2080.00. After you add in real estate taxes and homeowner's insurance you would still be spending less than $2,500.0 per month if you were to purchase a home in Brooklyn (based on average tax and insurance rates and a purchase price of $500,000 with 20% down). Combine that with the income tax write off you get when you purchase a home to be your primary residence and the end result is that it would cost you less to own a house than it would to rent!
In addition and as per my last blog entry (www.homegain.com/blogs/mitchellsfeldman-507663/Homebuyer-Tax-Credit-is-Coming-Back-to-Brooklyn-or-anywhere-else-Better--Stronger) as a first time buyer you can get a $8,000 tax credit if you get into contract by April 30, 2010 and close before July 1, 2010 (some restrictions apply, read my previous blog entry). Even if you’re an existing homeowner selling your primary residence and purchasing another property, you will get a $6,500.00 tax credit (again, some restrictions apply, see my previous blog entry for more details).
In my opinion the planets are aligned right now making it the perfect time to purchase. Home values have gone down over the past three years making today's prices very attractive and there are lots of homes to look at. Combining that with the fact that many buyers wait until the springtime to begin their home search opens up an opportunity for the buyers who are looking to have less competition. This puts the buyer in a stronger negotiating position.
NOW IS THE TIME TO BUY! Think about it... What are the chances that interest rates will stay low, prices will stay down, inventory to remain high and competition among buyers to be low AND the government offering you thousands of dollars to go out and buy a house? If you’re a betting man, it all adds up to BUY NOW!
Have an opinion or question, please submit them to this blog or contact me!
Mitchell Feldman
Associate Broker/Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/Cellular: (917) 805-0783
Email: MitchellSFeldman@aol.com
Web site: www.MitchellFeldman.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.
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The Homebuyer tax credit is back and better than ever!! Read my "Brooklyn Real Estate Blog" entry about it:
Click her: http://tinyurl.com/ygo894m
Happy days are here again!
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