Brooklyn Real Estate Q&A and Info

According to an article posted on the New York Post Website, home sales in Brooklyn have dropped sharply compared to the same time last year.  “They’re down a staggering 43.6 percent in the last 12 months” the article states. 

The article futher adds that some of the hardest-hit neighborhoods in Brooklyn are Crown Heights, East New York and Bedford-Stuyvesant, where the number of sales dropped 53.7 percent and median prices plunged from $561,350 to $499,902.  

What does this mean for you?  If you plan on selling a property in Brooklyn it means that you’ll be getting less money then you would have a year ago.  If you’re serious about selling, putting your property up for sale at the correct price is essential.  For a comprehensive evaluation of how much your property is worth right now, fill out my Home Evaluation Form.  Its free and there’s no obligation.

If you’re planning on buying, it means a property in Brooklyn, in Crown Heights or Bedford Stuyvesant in particular, are more affordable then ever.  Its a great time to buy!  If you’re interested, use the form below to set up an appointment so we can get the ball rolling and get you into your new home.

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When you’re pre-qualified for a loan, it means that, assuming all the information you provided about your finances such as your employment history, salary, the amount of money you have for a down payment and so forth is accurate, you have the potential of getting a loan for the amount stated on your prequalification letter. Generally, banks and other lending institutions will pre-qualify you for a loan for free.

When you’re pre-approved for a loan, it means that your employment history, your salary, the amount of money you have for a down payment, your credit score and all other pertinent financial information has been verified. You are approvedfor a loan for the amount that your pre-approval letter states. Generally, banks and other lending institutions charge a fee of several hundred dollars for pre-approving you for a loan.  Usually, the pre-approval fee can be applied towards your closing costs.

If you are truly ready to buy within the next 90 days, getting pre-approved for a loan will save you time, and will give you a leg up if you find yourself in a bidding situation with another buyer who is not pre-approved. Also, many sellers require that you are pre-approved before they will allow you to view their property, ensuring that a potential buyers inability to qualify for a loan will not jeopardize a possible sale.

On April 29, 2008 according to the New York Post, Rep. Anthony Weiner (D-Brooklyn/Queens) said in just nine years, the number of renters paying half or more of their income to their landlords has surged nearly 15 percent.   29.9 percent of Brooklyn renters pay more then half their paycheck to rent, up from 25.5 percent nine years ago.

Financial planners say a rule of thumb is that you should not spend more then a third of your income on rent.  What is the reason for this increase?  Affordable housing is ever shrinking in the five boroughs.  This is all the more reason for renters to start saving their pennies and purchase a home.  Owning is better then renting about 95% of the time.