Buying the perfect home for your family can seem like a daunting task. There are so many options and so many things to keep in mind! To make your search a bit easier, we spoke to Karen Behfar, a real estate agent based in Flatbush, Brooklyn, to get some info and advice about buying a home.
The first thing you need to know when buying a home, is the difference between a seller’s market and a buyer’s market. A seller’s market is when the demand for homes is really high. Right now the market in places like Toms River, Jackson, Manchester, Monsey, Florida, Texas LA, Chicago and other places that have a lot of new home buyers are seller’s market. In such a market, a home can be put on the market on Thursday, have an open house on Sunday, and by Monday they will have accepted an offer. There may be a greater urgency to close quickly and buyers may waive some or even all contingencies.
The other type of market, a buyer’s market, is what we’re currently seeing in Flatbush and other parts of Brooklyn. In this case, there are less people interested in buying homes. Houses can remain on the market for a couple of months, especially when it’s a large home that costs a few million dollars. However, it is important to remember that these market change very frequently, and just because Brooklyn is currently in a buyer’s market, it doesn’t mean it won’t change very soon.
In addition to explaining the difference between a sellers and buyers market, Karen also gave a few good tips to bear in mind when looking to buy or sell a home.
Tips for Buyers:
Firstly, it is crucial to obtain a pre-approval as soon as you decide that you are looking to buy a home. The reason for this is that when a good house goes on the market, it can be gone in the blink of an eye. There is no time to waste! If you need to apply for a pre-approval at that point, the house will likely be gone already. It’s much smarter to have a pre-approval in advance, which shows that you spoke to either a mortgage broker or a bank, and that you are financially ready for this. Pre-approvals will be mailed to you, so that you have it ready to roll when the right home shows up.
In addition, Karen explains that it is so important to keep an open mind while house-searching! So often, people get locked into the idea of the “perfect home” and refuse to even go look at something that doesn’t sound absolutely perfect. It’s important to remember that looking doesn’t hurt-you’ll be surprised to see how you change your mind when you start looking at houses! Of course, you should have a list of things that you absolutely can’t compromise on. For example, if you daven in a certain shul, you need to make sure that the house is walking distance. But never say never! You may end up surprising yourself!
Tips for a Seller
Karen recommends that you bring a real estate agent into your home prior to putting it on the market. they will help you figure out what renovations and changes are and are not necessary. Sellers should not automatically put in new kitchens or bathrooms before putting their home up to sell. Karen says that many people have their own taste and would prefer to get the house for a little less money and put in their own kitchen or bathroom. Additionally, if the seller invests $20,000, he will most likely want an additional $50,000 for the time and effort he spent on the renovations and he may not be able to get that much more… so it may not be worthwhile.
Additionally, when making necessary renovations, be sure to do them all the way. For example, Karen recently had a house where the seller had a big issue with the roof. He was advised to fix the issue prior to putting the home on the market, and he did. He put in a whole new roof. However, he did not paint the ceiling where the leaks had occurred and when potential buyers came in, they noticed the ceiling and automatically this put them on guard- thinking that there is a big leak issue in the home. Buyers are on guard when they look at a home; they’re on the lookout for what expenses will crop up unexpectedly.
When an agent comes to your home to appraise it, ask them questions. Be involved in the discussion. Sometimes, sellers immediately say how much they want for their home, and the agent has no idea how they got to that number. Karen says she always asks the seller, “Why do you think it’s worth ____?” and hears why they think that. Sellers need to be realistic and look at what homes are worth in the market. If a home is priced too high, you’re turning away the pool of buyers and just come across looking like a seller who isn’t serious.
Wishing you an easy and fruitful house hunt!
Thanks to Karen Behfar from the Behfar Team for your assistance in creating this post!
