As a real estate attorney focusing on residential purchases in the brownstone Brooklyn neighborhoods of Park Slope, Bedford Stuyvesant, Bushwick and Ft. Greene; I often represent first time buyers. The market is still hot, and it can be difficult to compete with other buyers when sellers rule the roost and the entire process of purchasing a home has become more sophisticated.
The bidding process:
In any bidding war, the highest bid will automatically move to the front, however there are other factors that may influence which bids are more likely to be accepted. Cash is still king and cash deals, or deals involving other types of liquid assets, as well as strong credit and employment history can all have a positive impact.
The importance of having your team in place:
Working with an experienced and competent local team consisting of (at minimum) a real estate attorney, mortgage professional and real estate broker, provides strong evidence that you’re ready to move forward quickly should your bid be accepted. It will give you a significant advantage over those not already engaged with a team of qualified and respected local real estate professionals.
Do I need a buyers broker?
James Cornell, broker at the Corcoran Group in Brooklyn Heights advises:
Whether you should use a buyer’s broker is a complicated question but the simple answer is YES. Sellers hire a broker to represent their interests and you should have someone in the mix representing yours. Since the commission will be shared between the two brokers, there is no added cost to you for your broker’s services and a good experienced broker can add more than most people realize to a successful transaction. Not having your own broker when you buy a property is a lot like going into court and representing yourself against the other side’s attorney. It might work out OK, but common sense says you are likely to wind up with the short end of the stick.
How can I avoid being a pawn in a bidding war?
The first rule is to set limits. Determine how high you will bid and stick with it. That’s the easy part. The second rule is don’t get emotional about the purchase or process. Not so easy to do for most of us. You are choosing a home and spending a large sum of money. If you get stuck in the ”I love it and need to have it” mode, you could be struggling along until you are the only one left standing, spending much more than you planned or left at the altar for the richer suitor.
How best to prepare an offer?
Before you even think about presenting an offer, get your offer “package” together. If you are financing the purchase, it should include the contact information of your mortgage representative and pre-qualification letter from his or her lender, a financial CV, supporting financial documentation and of course your attorney’s contact information. Be ready with the entire package before making an offer as you are in a competition and cannot be over-prepared.
If you’re interested in buying a home in brownstone Brooklyn, give me a call at 212-962-2000 to learn how I can help you position yourself as a purchaser of choice in today’s competitive, seller’s market.
Kurt Roth, brownstone Brooklyn’s residential real estate attorney serving Park Slope, Bedford Stuyvesant, Ft. Greene, Bushwick.
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