There’s two sides to the real estate business. There’s the emotional side where the person is buying [or selling] and then there’s the business side, the non-emotional, logical and rational side. The emotional side is made up of the excitement, frustration, euphoria, fear, etc. that the buyer feels when they’re going through the process of looking at houses, making offers, arranging furniture in their minds as they look at homes, etc.
The business side is the side that most homeowners and prospective homeowners don’t look at. Homeowners and prospective homeowners do not pay attention to this important side.
Therefore, they get involved with real estate agents who are like them. They don’t pay attention to the business aspect of real estate and thus, do not (can not) consult their clients accordingly. These real estate agents know about the market and homes in general. They can tell you alot about a home, type of construction, the heating system, the history of the neighborhood, local home values, etc. But on the business side is the most vital because in the transaction of real estate, is a business transaction. We’re talking about a financial transaction of over $375,000 on the average in the Long Island real estate market.
That is a major business and financial transaction that is cut throat and perfectly rational. It is based on municipal regulations, real estate laws, appraisals, and thorough analysis of the conveyance of title. It requires insurance policies to be executed and title insurance to issued in order to assure clear conveyance of ownership.
The business side of the transaction is where the turkey is talked about. In this market, with changes in the mortgage markets from day to day, if an agent is not thoroughly entrenched in the business side of real estate, they could certainly cost a homeowner and prospective homeowner thousands upon thousands of dollars.
A real estate agent must be empathetic to the emotional needs of his/her clients, while at the same time proficient in representing their business interests which includes helping their bottom line.
I know for me, personally, I pride myself on being “in the know” about mortgage markets, where they’re going and how it will effect both my selling clients as well as my buying clients. For example, higher interest rates will effect my sellers by shrinking the already small buyer pool. Higher interest rates combined with a banking industry that has tightened it’s lending practices so much already, will only make things more challenging for my selling clients because these two important aspects will drive the buyer pool down.
Higher interest rates for my current buying clients/customers means one thing - find a home now, while prices are still down and interest rates are still low because with higher rates comes higher monthly interest payments, which translates to thousands of dollars leaving their income column and going into their expense column. Sure they will get to “write off” the interest at the end of the year, but high cash outlays during the month of say August, totally overshadows the fact that sometime in the future you’ll get a “write off” in taxes.
I consider myself a counselor, consultant, and businessman. While I am human and very much enjoy helping people find a home to buy or help them sell the one they have and buy a new home, I also am a businessman who takes the responsibility of representing my clients business interests very seriously (that’s why my website features such good information and analysis).
I welcome the opportunity to do business with you - call me at 631.831.9048.

(c) Copyright 2008 www.tommcgiveron.com

By Tom McGiveron, Licensed Real Estate Salesperson

So you’re thinking of buying but “holding off”?

Well my friend, it’s time you take a very close look at the opportunity that exists now for buying a home. I know, you’re trying to save more money or you’re not buying because prices are going to continue dropping.

I have covered the number one indicator that should be considered closely when pondering whether to buy or not - the interest rates. Click the link and read up on the trends.

As a first time home buyer, the process of purchasing that first home can seem daunting, confusing and exciting all in one. Amazon.com offers wonderful books that I believe can be great resources to help you along the journey toward homeownership.

The Home Buyer’s Checklist is a wonderful book featuring fantastic questions to ask your inspector, real estate agent, or any other professional throughout the home buying experience.

Now the real estate closing can be very confusing. Talk about sweaty palms! In most cases, lawyers don’t really explain the entire process and the closing itself involves so much paperwork, that if you went through each document line by line, it could take 12 hours. Ouch! Real Estate Closings Explained Simply is a book that features down to earth analysis of what to expect and what to look for during your closing.

Ilyce Glink (she does a lot of writing on the topic of real estate) authored 100 Questions Every First-Time Home Buyer Should Ask. She’s a prolific writer on the subject and she interviewed the top agents throughout the country. Great resource.

When you’re finally ready to really start looking, it’s good to be prepared. Doing a little research can go a long way toward making the decision to finally start as well.

Remember interest rates are low (but they’re going up). If you’re renting, it may be wise to actually meet with a qualified mortgage consultant to discuss the possibilities of buying a home. And remember, you want to buy a home, not be sold a home. There is a difference!

(c) Copyright 2008 www.tommcgiveron.com

By Tom McGiveron

I work 7 days a week and specialize in Buyer Representation. Please feel free to call me at 631.831.9048.

How do you sell your house when it’s 1 of 200 listings on the market in your local market? How does an agent “create” a demand for your house? Well first, “demand” for your house would suggest that it needs to be different from the others on the market. How do we accomplish this?

1. Price - If, for example, your home is a cape and they’re are over 40 capes for sale in your area, being priced at number 40 may make your home the very last one a potential buyer looks at. Also keep in mind that the 40 houses on the market have not sold yet for a reason! Perhaps they’re all…overpriced. So pricing your home along with the rest of the pack may not yield the best results.

2. Staging - Many homeowners watch television shows about “staging” a property. However, there’s a big difference between staging your home, as opposed to a home. Many homeowners stage their home the way they like it. They leave up too many family pictures and organize it according to their likeability. As a Real Estate Agent, I find myself in situations where owners do not see their home the way I know a buyer will. Here’s a tip, if something is very sentimental to you, remove it. Another tip, if a piece of furniture is just there to take up space, remove it. Yet another tip: If the colors in the home, on the walls, furniture, etc. are particular to your liking, paint them or remove them. $500.00 can seriously go a long way toward improving your home in terms of increasing the selling points. Approach this with the following mindset and say this to yourself: “I’m not selling my home. I’m selling a home.”

3. Appearances - As prospective sellers, you want to appear ready to sell. This goes along with the staging of the home. Remove as many items, small or large, and place into boxes, neatly arranged in an area of the home that is not central to the showing area(s). This will suggest to prospective buyers and their agents, that you are a “good seller”, meaning you are ready to sell and have your “ducks in order”. Buyers and their agents, like this.

4. Showings With Ease - This is vital to the sale of the home. You must be patient with agents who are late, early and are “no shows”. Remember, you are in “sales” now. You want to be able to allow your listing agent to have an easy way to show the home. Real Estate Agents are people too so be patient and always nice. It makes for a better experience for the buyer as well. Never criticize an agent in front of prospective buyers. This leads me to the next way to create a demand for your property.

5. Attitude - Your attitude as well as the agents should be positive. If your listing agent has done their job correctly, you should be priced 5% below market value. You must accept that and move on emotionally. The more your displeasure shows to a prospective buyer, the more you will decrease the likelihood of a sale. Attitude can really make a significant difference. Always smile and allow the flow of the buyers to move through the house at their leisure which leads me to the next way to create a demand for your property.

6. Allow Buyers To Roam - Many times, when I’m showing a home another real estate agent has listed, the owners/sellers will sometimes assume a role of salesman. They rattle off many highlights of things they want a prospective buyer to see. I try and discourage my sellers (my listings) from doing this. It can sometimes cramp a buyer’s mindset and do more damage to the showing experience. Maybe pointing out a few things that aren’t readily visible is okay, but try to allow the showing agent and their prospective buyer to roam freely. When I show properties, I tend not to be overly directive. I allow the buyers to roam and I will ask questions and point out items on a different level. Put yourself in the shoes of the buyer. Would you want someone leading you around every corner of a home, directing your every move?

7. Terms - The more creative you can be in offering something to prospective buyers, the better off you’ll be. This is a marketing approach that can pay off big time. A person who buys anything, has to feel something for the product they’re buying. Along with how the home looks, how easy it is for agents to show it, affordability, and energy they feel from the agent and the property itself, offering something to the prospective buyer can help make their decision of whether or not to buy your home or move down the block and continue looking.

Ultimately, in this market, an agent must price the home correctly. Appraisals and how they’re going to effect the Long Island real estate market will be the next topic I focus on as we move forward into the second half of 2008. The market is changing and it’s not about which agent can “get you the most money” but rather, the one that can offer you the best evaluation (whether you like it or not) based on the cold, hard facts of the market.

(c) Copyright 2008, www.tommcgiveron.com

By Tom McGiveron

For a COMPLETE HOME VALUE ANALYSIS, call me at (631)587-1700, ext. 51.

To see ANY listing on MLSli.com - call me at the same number above.

For Sellers:
“Home prices may fall 25 percent to 30 percent from their peak in 2006 and not hit bottom until 2010, with greater drops still in subprime mortgage debt markets.” - Peter Acciavatti, credit analyst and managing director at JP Morgan Securities Inc Source: Reuters 6/11/08

“Home prices, based on the S&P/Case-Shiller data, have fallen about 15 percent and I am expecting them to drop another 10 percent before reaching a trough in the spring of 2009.” - Mark Zandi, chief economist at Moody’s Economy.com Source: Reuters News 6/26/08

What these two quotes tell me about the Long Island real estate market is that if you’re in a position where you’re really going to need to sell, you’d better get it on the market now, rather than wait until next year or even the year after.

I am all for people not selling their homes now. Really! You may think and ask, “Yeah right, how would you make money?”. The truth is people will always need to sell and their will always be people looking to buy. If less people put their homes on the market, that would be a good thing - but only in large numbers. Supply and Demand dictate the pace of the market. When there’s an over supply, the more dramatic it gets, the more prices will come down. So, really in that scenario, I, as a real estate agent, will do well in the business, whether the homes are priced high or low.

If the Long Island real estate market shed about 50% of the houses currently for sale (about 17,000 homes), this would drastically improve and stabilize declining prices and, again, as a real estate agent, I would fair well because this would help even out supply and demand would increase (more buyers).

However, I really don’t like being in a position where I’m working with someone (seller) who is frustrated and dissatisfied with the results of “market feedback”. Market feedback is what buyers tell you, simply by their actions. If their actions are to avoid your home and not see it, either by themselves or with another agent, this says one thing loud and clear, “The price is too high.” It may also signal the fact that the home:

A. Is not photographed well.
B. Is outdated or in need of updates in key areas of home.
C. Is cluttered in the pictures (see A).
D. Is not differentiated from other homes.
E. Is not advertised fully or in high traffic areas (i.e. internet - and not just MLS).
F. Lacks a real estate agent managing the listing correctly.

Now, of course, some of these items are outside the real estate agent’s overall responsibilities (to an extent). Sellers must be willing to do “their share” in order to increase the sale-ability of the property.

Market feedback can also tell you the home has all “the goods” (i.e. move-in condition, updated, etc), but priced too high. How so? Simple. No offers. A lot of showings with no offers should tell an agent that the price is a bit too high and only a slight price adjustment and remarketing of the property is needed to get buyers to the table. Now I highlight the word “should” because it’s not a foregone conclusion that every agent will hear the market talking to them.

Homeowners working with real estate agents like to focus in on “a lack of marketing” by their respective real estate agents. And I will definitely say, that in some cases, they are right. But more times than not, especially in this market, it has little, if anything, to do with the marketing of the property. Why would I say this?

There are approximately 34,000 homes for sale in Queens, Suffolk, and Nassau Counties.

Now hiring an agent who works full-time and thus - has a vested interest in selling your home because it’s food on their table - is probably a good idea. But here’s a tip for prospective sellers - use google.com. Search the name of agents you’re interviewing. See how involved they are in the field. If they’re not involved…chances are they’re a nonentity in the business. The selling of real estate is a business. It’s not who’s the nicest person (although that goes a long way) or who has a good recipe for chocolate chip cookies (although they’re very yummy). It’s about who sells real estate. Who is apart of the 7% of agents that make 93% of the business? See Teammusso.

For Buyers:

Now with the interest rates rising, buyers may want to actually come out and play or they risk being priced out of the market for years to come. I wrote about the effects of higher interest rates on monthly payments and total interest paid on a mortgage. The effects are startling.

Now, more than ever, it is wise for any buyer to consider working with a Buyers Agent like myself. Why pay 3% of the money you bring to closing to an agent who works for the seller? That makes no sense. I specialize in Buyer Representation. It’s one of the reasons I use cutting-edge technology to help my buyer clients acheive the dream of homeownership.

I look forward to doing business with you!

Call me at (631)587-1700, ext. 51 for any questions you may have regarding the Long Island real estate market.

(c) Copyright 2008 www.tommcgiveron.com

By Thomas McGiveron, Licensed Salesperson

MARKET UPDATE—WHAT TODAY’S HEADLINES MEAN TO CONSUMERS AND OUR STRATEGIC PARTNERS

Date: July 14, 2008

TOPIC #1- FHA Risk-Based Pricing Rules go in effect today. Many people are unaware that the FHA is basically a governmental insurance company. They do not lend money. They insure approved lenders (like Continental) for losses resulting from foreclosures on loans underwritten to FHA guidelines. Until today, every borrower was charged the same insurance premiums, regardless of the risk factors they were deemed to have. Now, depending on the determining Credit Score and the Loan-To-Value of the loan, both the Up-Front and Monthly Mortgage Premiums can vary. The higher the perceived risk, the higher the premium is. Talk to your CHL Mortgage Planner for more specifics.

TOPIC #2- Goodbye IndyMac (and 90 undisclosed lenders being “watched” by OFHEO). Banks being taken over by the government is certainly unsettling; however, this is all part of the cleansing process the financial services industries are facing, as a result of years of poor lending practices. The trials and tribulations of Bear Sterns, Countrywide, IndyMac, large write-downs by Citibank, Merrill Lynch and others are all symptomatic of today’s hangover from the party they all enjoyed the first half of the decade.

Click Here To Read The Rest Of The Article

To be…overpriced, or not to be…overpriced, that is the…wait a minute! Is that the question?

Ask yourself this question: What does it mean to be “overpriced”?

What if I were to tell you to take your ideal sale price of your home or what you would prefer to sell your home for and lower it 20%? How would you feel about that? Chances are right about now you’re thinking, “Is this guy nuts?”

Maybe I am, but one of the things about this market that we all need to pay attention to is the overall conditions of the mortgage market. Let’s take the price of a barrel of crude oil. We all know that it’s high, real high. Energy costs are increasing every month with no end in sight for the near future. Couple this with Long Island property taxes.

Where does that leave you? Does it mean that your home is worth what you would prefer it to be? Does it mean that real estate agents don’t market it enough?

Don’t forget how the internet has changed the way buyers look at the real estate market. People look online and see a home for sale on Long Island with 3 bedrooms, 1.5 baths, kitchen, livingroom and unfinished basement with an asking price of $399,000…oh and $8000 annual taxes. Then they just browse another state with 2 clicks of their mouse and find a four bedroom, 2.5 bath brand new colonial style home priced at $220,000…with $800 annual taxes.

Now they don’t want to move to a different state, they were just “browsing”. So the weekend comes and they go to some open houses. They visit 10 homes that all need repairs, are old and have property taxes that all exceed $5000 a year. They get depressed and angry, thinking to themselves, “…these houses are not worth it…” And they wait.

Approximately 34,000 listings are for sale between Queens, Nassau, and Suffolk. Approximately 1500 homes were sold according to the Multiple Listing Service of Long Island in the month of June. That means there is one buyer for every 30 houses on the market approximately.

Thirty homes on the market…one buyer. With mortgage rates climbing, it will only get tighter because buyers will be looking at higher interest payments.

At the end of the day, it’s vitally important that you are consulted professionally and are willing to accept the facts of the market. I’m not saying that it’s impossible to sell a home. Indeed, data shows that if a home is priced correctly, it sells.

For a free comprehensive market analysis of your home, feel free to contact me at 631.587.1700, ext. 51.

(c) Copyright 2008 www.tommcgiveron.com

by Tom McGiveron

Mortgage Rates

Bush Offers Plan to Save Fannie, Freddie

Read this very carefully. I want you to think about this one question.

Why are tax payers bearing the cost of bailing out a company or an industry?

Think about this for a second. Is it necessary for the tax payers of this country, or any country, to make sure a failing industry can continue to fail or overspend itself into oblivion?

This is just food for thought.

This situation of uncertainty in this day and age is startling. When the government “scrambles” to do anything, I get a funny feeling in my stomach. When politicians like Sen. Chuck Schumer support something that basically gives more control to the federal government (as usual), I get a pit in my stomach.

If you have any questions about what exactly these companies do, please feel free to leave a comment.

I am starting a monthly article about the Deer Park, New York area, featuring the real estate market. I will be posting it monthly and each month will feature an update on the housing market in Deer Park, New York.

According to the Multiple Listing Service of Long Island as of July 8, 2008:

1. 215 = The amount of homes available for sale in Deer Park (11729)

2. 14 = The amount of Closings for the month of June, 2008 in Deer Park.

3. 15.3 = The amount of months of inventory there is in Deer Park - this is also referred to the “absorption rate” which indicates the saturation of inventory in a given area. The absorption rate simply implies that if in the hamlet of Deer Park, if no other homes came on the market for sale, it would take 15 months to sell off the entire inventory of homes currently available.

This is significant analysis of the area. Keeping things simple always works for me, so with that, I only want to add one fact here - interest rates. This month and the coming months we will most like find an increase in mortgage interest rates. Sources such as Yahoo Finance and Goldman Sachs indicate that mortgage rates may rise to 7% by Labor Day, 2008. The trend is definitely up.

What this means to Sellers
Simple - get your house on the market if you need to sell. Now “need” is a relative term. If you’re trading your twilight years for a few thousand dollars of lost equity…okay - it’s not just a “few thousand dollars”, but even if it’s $40,000 - I’ll say this - you don’t take it with you when you leave this world! If you’re faced with a life-style situation whereby you could benefit spiritually, psychologically, emotionally and ultimately financially then the trade off of giving up lost equity may be a prudent choice.

I am simply saying, as objectively as I can to every seller in Deer Park, West Babylon, Babylon, Patchogue, Lynbrook, Remsenberg, Miller Place, Bellport, Massapequa, where ever - if you “need” to sell, get your home on the market, price it aggressively and please interview several agents and don’t just go with the lowest priced commission or the agent who says they can sell your house for whatever you want.

Why now?
Because the market is not going to just “pick back up” in a year. This is the real estate market, not the stock market. See the many articles on my site that speak to this end. And to simply put it, selling now, while not the best time, will net you more money than this time next year or the year after that, or the year after that (most likely). I tend to listen to the experts on this one. I don’t pretend to have a crystal ball, but I can tell you that all the data suggests that once we level off, it will be a slow and steady rise back to normal market conditions.

What this means for Buyers
Please click here and read. I’ve written enough on this subject that it’s easy to find a ton of information regarding the reason it’s a good time to buy now.

As always, I’m a phone call away - for a free market analysis that’s comprehensive and complete, call 1-877-SOLD-123, ext. 51.

(c) Copyright 2008, www.tommcgiveron.com

By Thomas McGiveron

1-877-765-3123 Ext. 51
463 Montauk Hwy
West Islip, NY 11795
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