The Brooklyn New York real estate market is hot. With values and sale prices reaching new heights in today’s market in many Brooklyn neighborhoods, we are clearly in an up trending market. This uptrend includes many property types such as commercial properties, residential, multi family, mixed use, vacant land, cooperative and condominium apartments.
In the real estate brokerage business, correctly pricing a client’s property is a combination of market knowledge regarding trends in different neighborhoods, researching and finding good, current apples to apples sales data as well as understanding and interpreting that data correctly. The other part of pricing for a dynamic market is reaching slightly above what you think the market will bear for that property type in that specific location in that neighborhood and knowing what the market forces are and how they are influencing prices today into tomorrow.
I’ve learned as a broker and marketing specialist for over 3 decades that in this dynamic market, appraisal values do at time lag behind sales prices. The sales data does not always keep pace with sales prices. There are several ways to try to keep your transaction on track.
When a bank appraiser comes to inspect the property, come to that appointment armed with the most accurate, applicable comps that you can find and present them to the bank appraiser. Don’t assume that the appraiser knows the market in that neighborhood and the appraisers do appreciate when a real estate agent or broker comes prepared with their own comps. This makes the appraiser’s job easier and the appraisal can be completed quicker and submitted to the bank faster.
For arguments sake, let’s say that the property appraises lower that the sale price/contract price. Many buyers understand that in this dynamic market this does happen and most buyers accept this and willingly go ahead with their purchase with the agreed upon price in the contract of sale remaining intact.
It’s up to the salesperson or broker to make sure to bring well qualified buyers to the client’s property. These buyers will have excellent credit, great income and a sizable down payment to negate any short fall in the appraisal amount by covering the difference between the mortgage amount the bank is offering and the contract price. This will help to insure smooth sailing during the mortgage process.
The true value of a property in today’s market is the highest price that well qualified buyers are willing to pay. These buyers set the pace and price level of the market across all property types. In Brooklyn real estate values continue to rise.
If you or someone you know are planning to sell their Brooklyn, NY property, whether a residential property, a multifamily building, a commercial property, mixed use, multi family, co op or condo, vacant land or a development opportunity, call us. You will be very happy that you did.
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Accord Real Estate Group