At Step One- what is the one thing you wish you had known?
We’re in contract for a brownstone in Bed-Stuy right now and here’s my advice: 1)Act fast if you see a property you like and get pre-approved if you can. Do NOT wave the mortgage contingency. 2)Be prepared to offer over list in some cases. 3) We didn’t have a broker so the seller’s broker will be taking both sides of the commission. This worked out for us in that maybe he pushed for our offer to be accepted over others? This is just a possibility. 4) Try to find a home with FAR. It might be more expensive than others of the same size on the market but down the line you have the option to expand the property and increase value.
murphy84
in Brownstoner Renovation 11 years ago
20
Please log in, in order to post replies!
20 replies
mayjune | 11 years and 3 months ago
Hello- I am just starting my search for a brownstone. What is the one piece of advice you would give someone just starting out on their search? (Regarding anything from looking to buying to renovating to financing.) Thank You!
chillym | 11 years and 3 months ago
Are you a first-time buyer and are you working with a broker or?
mayjune | 11 years and 3 months ago
No, I am not a first time homebuyer. Yes, I have a broker.
BobMarvin | 11 years and 3 months ago
Be prepared to act quickly when you see a house you like, but simultaneously, be prepared to walk away, if necessary, if things don’t work out. Even in this tight market, there _will_ be other houses and, if it’s meant to work out, it will.
clairebear246 | 11 years and 3 months ago
do your comps research! brace for a low appraisal and have a plan of action should you get a low appraisal. in this market, esp in neighborhoods like crown heights, bed-stuy, etc., the market prices are moving faster than sales are being recorded.
chillym | 11 years and 3 months ago
Agree with the above. And this is probably obvious, but: for me made all the difference to be working with local brokers who really knew the area. Should you grow disgruntled with your broker, I highly recommend http://www.housebywe.com … and likewise to make sure whoever does the inspection is equally familiar with the type of property, will know what to look for, etc.
mayjune | 11 years and 3 months ago
Since appraisals come in low, it makes waiving the mortgage contingency so risky. Yet my broker advised me that we should waive it to get our bid taken seriously even though I am putting down well over 20%. Is that just the broker trying to get the deal done or is waiving the contingency necessary in your opinion?
oakwood | 11 years and 3 months ago
If you waive the contingency but can’t secure the mortgage, what’s your plan? Just forfeit the 10%? I wouldn’t waive it. Banks and appraisals are just too unpredictable.
slopegirl | 11 years and 3 months ago
We bought five years ago and it’s so different now. What worked for us was lots of research, taking our time, and walking away from any deals that seemed shady, either sellers or buyers or brokers. I’m so glad we did that, but again it was a buyers market then and still oddly a pretty strong market to sell our coop.
mrohrmann | 11 years and 3 months ago
If your broker told you to waive your mortgage contingency he/she is an idiot. Even if you are putting 50%+ down there is no garantee and you could have to watch your ~$100k deposit walk out the door. I’d work with someone else who knows what they are doing (if you need rec’s lmk). Just my opinion.
theoperadiva | 11 years and 3 months ago
Walk, walk, walk around the neighborhood you are interested in, and when you are done doing that, walk around some more. Discover where the fire houses, the post office depots, the future hospital expansions, the schools, etc. are if noise is a concern for you. Do you care about parks? Are there any nearby and how does it feel to walk to them with kids and a full stroller (if you have kids or plan to)? How about the nearest school? Is it decent and is it convenient? The general shopping options nearby? What does it feel like to walk from the subway at night to various areas? What is parking there like during the hours you are able to move your car (again, if you have one or plan to)? Walking is also a great way to find hidden, under-marketed properties, even in prime neighborhoods. Many people think they are getting a deal by going with a lower percentage broker, but those places still don’t seem to get the foot traffic that others do because they aren’t visible to the masses. We found our home in a prime area by seeking a FSBO sign in the window. As others have said, get pre-approved now. If you need to sell another property in order to have a deposit, get it done. We missed a number of homes at the start of our search because we weren’t ready to close on another place. If you have the opportunity to sublet and live in the neighborhood of interest, do it! You learn so much about which blocks work and which don’t just by being in the area. Even if it is uncomfortable to put everything you have in storage and live with other people’s things for a few months, it is far better than buying a property you regret later. Start thinking about your wish list and what you can and can’t live without. We wanted a home that could accommodate a certain number of bedrooms, was close to the park and the subway, had a decent sized yard, was in a good school district and wasn’t overwhelmed by a neighboring house. We knew on our budget that we would need to gut renovate, but we were happy to do so (check out our blog if you are interested www.wandernesting.com which covers our renovation from start to finish). Good luck!
fe3inc | 11 years and 3 months ago
Check the conditions — it’s not just the price of the property. It’s also how much you have to set aside for repairs/renovations to get the home you feel comfortable enough to move in. Some of the townhouses for sale are not in the best available conditions simply because the previous owners could not afford to spend the money prior to sale. -Felix
slopefarm | 11 years and 3 months ago
1\. Have a cushion. If you need to reno, it always costs more than everyone says, there are always surprises. Don’t think the horror stories are the exception — everyone is an exception. If you are desperately looking to find something right at your financial edge, rethink, change neighborhoods, find a way to do this with a cushion. Especially important in a rising market where fear is a currency. 2\. Trust your bullshit radar — don’t let your own fear or sense of urgency make you ignore when your skin crawls. Where there’s bullshit, there’s always more, so if someone bullshits you, walk way from them and cut them off cold turkey. That goes for realtors, attorneys, vendors, sellers, etc. Not saying everyone’s a bullshit artist — far from it — but if someone bullshits you, they will do it again.
clairebear246 | 11 years and 3 months ago
omg. do NOT waive your mortgage contingency. that is absolutely insane in this market, unless you’re comfortable with losing 100k or so. and if you’re entering into deals w sellers who insist on it, well, buyer, BEWARE.
housepoor | 11 years and 3 months ago
In addition to the excellent advice others have given, I would add 2 things: 1.) walk the neighborhood at different times of day and night. For example, see if you feel comfortable coming home from the nearest subway at 1am? If there is a church or school up the street, hang around when church or school gets out. Do the fire trucks go out of the fire house down the street horns blaring or will they wait until they are on the major street? 2.) Realize you will double guess yourself at one point or another. It may happen when your offer is accepted the first time or when you see the inspector’s report. But it will happen. Remember everything can be fixed — it just takes money. Location, well that is another matter. Best of luck.
fawn | 11 years and 3 months ago
Great advice above. I bought our fixer-upper two years ago and the market feels very different, but my suggestions are: – See a lot of houses. Even things that are a little outside of your budget or geographic zone. Make note of the closing price of things you’ve seen– it will help you move when something well priced comes along. And seeing a lot of properties will let you get the feel of how something with good bones feels. If you’re OK with a renovation, you’re not necessarily looking for something pretty, you want something with good bones. – When renovating, time is always an enemy. Identify the things that can delay you and build it into budget (alt 1 renovations, sprinklers, tenants and more). – (from friends looking now) if a listing is with a small real estate broker, you may be at a disadvantage going in with your own broker. – Gain a basic understanding of DOB guidelines. Know the difference and $ implications of an Alt 1 vs Alt 2 renovation. When you’re going to need sprinklers. These things will cost you time and money– factor them into your budget. – Do some really basic research on architects– you want to get one on board as soon as possible. – Try to get a base understanding of the things that are expensive and unavoidable during a renovation. Major facade work, mechanicals, water and sewer lines, sprinklers, dealing with previous illegal upgrades, HVAC, windows, historical zones.
Roark | 11 years and 3 months ago
theres two markets the corcoran type where buyers have brokers and get steered to the open houses to outbid each other and then theres the storefront/ internet realtors selling to the low end community the prices difference is double so do your own leg work and get vanessa thatcher as your mortgage broker it took me three others before i found her here.
cityrat | 11 years and 3 months ago
Email/call this guy http://www.nytimes.com/2014/02/11/nyregion/in-chaos-of-brooklyn-housing-market-giving-buyers-an-advantage.html http://bktothefullest.blogspot.com/ FIRST. Not after you’re sick of looking and feel like you have nothing to lose, like we did. Worth the $.
simbaslair | 11 years and 2 months ago
OMG. Waiving mort. contingency is not justified unless you are relying on your bank account or friends and family to complete the deal. You see once you execute the contract you are bound to perform unless you made your performance contingent on say getting approved by the bank ( mort cont.). Imagine bank says no or the appraisal is to low. If you can’t cover you’ll be in breach; retention of that sizable earnest money will be their liquidated damages. Broker’s gambling with your money…. P. Solomon, Esq.