Aug

29

Long Island Foreclosure Statistics: 2nd Quarter 2008

Filed Under Buyers, Foreclosure Info, Sellers, Sellers & Buyers | 3 Comments

Sellers Beware! Buyers Beware!

According to www.LIRealEstateReport.com , Suffolk County saw a dramatic increase of foreclosure filings, as did Nassau County. Nearly $870,000,000 of real estate inventory in Suffolk County is facing foreclosure. As of July, 2008, there were 18,638 total listings in Suffolk County according to the Multiple Listing Service. There are currently 2,723 Lis Pendens filings in Suffolk County alone. Let me repeat - 2,723 homes facing foreclosure in Suffolk County.

Click here for help to avoid foreclosure

In Nassau, there are 1,620 facing foreclosure with a median price tag of about $380,000, while Suffolk’s price tag for a home in foreclosure is about $319,000.

This data suggests that the epidemic of foreclosures facing our area alone is very concerning.

If you are on the market now, drop your price. If you are thinking of selling your home, find out your exact motivation for doing so. If you need to get out (and really ask yourself the tough questions to get the real answers), then don’t wait around. With every home that enters into foreclosure in your area, the impact on your home’s value will drop approximately $8,000. That’s instant equity loss.

I have written on this subject numerous times. I just hope who ever is reading my articles that they actually take into consideration the severity of the housing and foreclosure crisis that faces us.

I’m not a doom and gloom type. In this market, there’s a great opportunity to sell your home. You won’t be selling it for the price you could have gotten a few years ago, but remembering the 25% annual appreciation that was realized from 2003 to 2005/2006, should help remind you about that great benefit to your home’s value, even now.

For buyers, there’s two main things to consider. One is that it’s a great time to consider buying a foreclosure or short sale. There are a few legal items to consider, so make sure you consult your attorney before buying a foreclosure, pre-foreclosure at auction or short sale.

Secondly, for buyers, it’s important to know what’s going on in the area you’re looking in. This is very important. I work as a buyers agent, representing buyers in the largest financial transaction of their lives. I pride myself on providing them with the best information possible about any area so that they make an informed decision.

For a Comprehensive Market Analysis of your home’s value, or to call me to inquire about finding a home to buy (or both), call me at (631)831-9048.

(c) Copyright, 2008 www.tommcgiveron.com

By Tom McGiveron

Aug

23

Long Island Real Estate Market: Foreclosure Update, August 2008

Filed Under Buyers, Foreclosure Info, Sellers, Sellers & Buyers | Leave a Comment

This is an update for the foreclosures that are pending in Suffolk County. I decided to include some towns in Nassau County and Queens as well.

Suffolk County

West Islip = 27 Homes Pending Foreclosure (10% decline)
Deer Park = 61 Homes Pending Foreclosure (39% decline)
Babylon = 25 Homes Pending Foreclosure (No change)
West Babylon = 98 Homes Pending Foreclosure (No change)
Lindenhurst = 109 Homes Pending Foreclosure (20% Increase)
Patchogue = 15 Homes Pending Foreclosure (7% Increase)
Miller Place = 33 Homes Pending Foreclosure (58% Increase)
Riverhead = 4 Homes Pending Foreclosure (20% Decline)
Huntington = 57 Homes Pending Foreclosure (14% Increase)
Port Jeff = 10 Homes Pending Foreclosure (33% Decline)
Sayville = 22 Homes Pending Foreclosure (8% Decline)
East Hampton = 1 Homes Pending Foreclosure (No change)
Smithtown = 8 Homes Pending Foreclosure (25% Increase)
Hauppauge = 16 Homes Pending Foreclosure (13% Increase)
Manorville = 26 Homes Pending Foreclosure (8% Decline)

Total = 512 Homes Pending Foreclosure (1% Decline)

Nassau County

Farmingdale = 16 Homes Pending Foreclosure
Seaford = 4 Homes Pending Foreclosure
Massapequa =32Homes Pending Foreclosure
Freeport = 47 Homes Pending Foreclosure
Wantagh = 6 Homes Pending Foreclosure
Lynbrook = 7 Homes Pending Foreclosure
Elmont = 34 Homes Pending Foreclosure
Oceanside = 5 Homes Pending Foreclosure

Queens

Flushing = 184 Homes Pending Foreclosure
Bayside = 29 Homes Pending Foreclosure
Jamaica = 1123 Homes Pending Foreclosure
Howard Beach = 30 Homes Pending Foreclosure

If you want information on a specific town, leave me a comment or call me at 631.831.9048.

This information is very useful for both sellers and buyers. For sellers, it will give you insight as to how the foreclosures in your area will damage the value of your home. I will provide a complete report on foreclosures on Long Island next month that will include exactly how a foreclosure in your immediate area impacts your home’s equity. We all know it has a “bad impact” and is negative - but just how much are we talking? Come back next month and find out.

For buyers - the information provides you with a snap shot of just how many foreclosures there are (active and pending) in a given area. For instance, I would say that Jamaica, while a large area, should be avoided by buyers who are looking strictly to purchase and occupy a home. It’s a great area for investors, but not for the average home purchaser, based solely on the fact that the number of foreclosures is so high. As a buyer in this market, you want to buy low…in an area that is not being riddled with foreclosures and lis pendens filings.

Good Resource for 1st Time Buyers

(c) Copyright 2008, www.tommcgiveron.com

By Tom McGiveron

Aug

16

Long Island Real Estate Market: Quit Your Whining!

Filed Under Buyers, Sellers | Leave a Comment

Attention Readers: This is a vent session. I’m going to share with you my personal insights about the general feelings I sense from others impacted by the current Long Island real estate market. During a “vent session”, the golden rule is not to hold everything someone says against them, rather, you just “let’em vent.” Thanks for your understanding.

Okay, so for fellow agents, I’ve got to point out a few things. We are all working with buyers who are really shoppers. They are shopping, plain and simple. They are taking you from house to house and even when you get that “feeling” like, “They are gonna love this house. This is it…” - what happens? They don’t like it. Sigh…back to the drawing board…and a thought - “This market is crazy!”

You see, we as professionals (those of us that take this business very serious and understand it) realize that now is without a doubt, a fantastic time to buy. The old rule is, “Buy Low. Sell High.” Well prices are low [and interest rates are still good]. But trying to convey that to “buyers”…or shall I say, “shoppers” is very difficult. For some reason, because we are “Salespeople”, our word is suspect and we’re only saying things to “get them to buy.”

It’s insane! I agree. But…quit your whining. I realized that the more I whined about working with shoppers, the less effective I was with moving them along to a successful crossing into homeownership. Whining about them is of no use and is simply not an effective strategy for conveying a mindset that is focused on one thing - helping them find a home.

Sellers. The number one phrase I hear from sellers is the following:

“…Yeah, the market’s bad, but I’m not going to give my house away.”

This statement is uttered by more sellers than I can count. If I had a quarter everytime I heard this, I would seriously have enough money to take a vacation in Italy…twice…for two months…each.

“I’m not going to give it away”, coming from someone who (if they owned prior to 2001) experienced over 100% appreciation in 5 years.

Now here I could “whine” about how I “can’t stand” hearing that statement. And a few months ago, I would probably have said that. But I’m not hear to whine about other peoples whining behaviors.

I like hearing it now because I delve right in and determine whether they’re serious about selling or not. If they’re not, I do not take the listing. Period. This saves me time and money. I also convey this, rather strongly, to the prospective seller. I tell them honestly, that I will not take their listing if it is priced too high (to even appraise for the number they want to ask).

My advice is always the same - “Quit your whining!” (Again remember the golden rule - this is a vent session). Being positive about what is good with a situation will yield better results. Thinking in the terms of “giving away” your home is not a winning attitude - it’s a whining attitude that leads to increased frustration and despair.

If you lose money on it - then so be it. Move on. It’s tough. It’s stinks. You want to kick yourself…hard. The alternative is to not sell. Or think about it this way.

You bought it for $50,000 (let’s just say you purchased in the early 80’s). You refinanced and pulled money out to pay for your daughters wedding, fix up the house, pay off the boat, lend money to your son, redo the landscape, and go on a gigantic vacation overseas. So you turned your cash into…trash. Get over it.

Your home was worth $750,000 in the winter of 2005. And now, you can’t get $499,000. You’re sick to your stomach because you owe $400,000.

Now here’s where I scratch my head and ask, “Yes, but didn’t you take out all that money and GET THE MONEY?” Whether you spent it or not, you still received the benefits of your equity. And luckily, you’re in a position where you can sell the property, pay a commission to a professional and put what’s left in your pocket. You can also buy a house for less money, which is a trade off in equity.

Again, a whining attitude will get you to think about the negative. A winning attitude will help you realize that the market is what it is. Your decisions in the past have impacted your current place in this world. Rather than have X amount of equity, you’re stuck with the fact that you spent your equity on other things and didn’t plan on the economic slow down and real estate correction…and neither did your mortgage consultant, real estate agent, aunt, uncle, dad, mom, brother, sister, friend, politician, President Bush, President Clinton, Alan Greenspan, Citi Mortgage, Chase Bank, Wells Fargo, Deutche Bank, all the mortgage companies and banks that have gone under, and probably even God Himself!

So, don’t beat yourself up. Don’t blame others for your “misery”.

Move forward. Quit your whining.

To all agents and sellers, realize that there are buyers out there or shoppers who will eventually become buyers. You have to focus on winning them over, because whining over them will not produce successful results.

Get over it. Move on. Life is too short. Oh and thanks for letting me vent! I hope my vent session helped you realize a thing or two about your situation.

For a comprehensive home value assessment, Click Here. I will be in touch within an hour.

(c) Copyright 2008 www.tommcgiveron.com

By Tom McGiveron

Aug

16

Deer Park Real Estate: Market Update August, 2008

Filed Under Sellers | Leave a Comment

I’m going to compare June 2008 data with July 2008 data. I never liked math in school and I especially disliked statistics. However, like Mr. Alberding said in my 11th grade Math II Regents class (which I repeated from 10th grade due to complete and utter failure), “These statistics are useful.”

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

According to the Multiple Listing Service of Long Island as of August 15, 2008:

1. 219 = The amount of homes available for sale in Deer Park (11729)

2. 12= The amount of Closings for the month of June, 2008 in Deer Park.

3. 18.25 = The amount of months of inventory there is in Deer Park

So in this basic analysis, we see an increase in the number of homes available. The market took on 4 more new listings while selling 2 less homes in the month of July. That means we’re taking on more inventory and selling less (this is not good). The average sale price in Deer Park for the month of July was $378,992 compared to $367,928 for June. Aha! The market is coming around! Prices are going up! No it just means that the group of homes sold in July had a few homes in Deer Park that sold for over $500,000, thus boosting the average sale price higher.

I added the average sale price in there to prove Mr. Alberding’s point. Statistics are more than just averages. In my analysis, I take (3) factors that provid an overall sense of where the market is. Months of inventory allows us to measure against the amount of homes for sale and the actual number of sales in a given month. This gives us our outlook for inventory.

The number one market factor impacting the value of homes on Long Island is the available homes for sale. There’s just so much to choose from and there’s simply not enough buyers to purchase every home.

If you want to sell your home, pricing it right is an absolute must.

Need to know the value of your home? Click Here. I’ll be in touch within an hour.

(c) Copyright 2008, www.tommcgiveron.com

By Tom McGiveron

Aug

6

Client Testimonial

Filed Under Buyers, Sellers, Sellers & Buyers | Leave a Comment

The following was written by Rick & Kathy Ferrari - a very special couple I worked with this past year (2008) to find a home.

The time has just flew by and
we just wanted to send you a thank you e-mail and to say you went above
and beyond in our eyes with all that you did. From not putting any
pressure on us while we were stuck in limbo trying to find the right
person to help us….from taking unlimited phone calls and messages
from us, that after we thought about it could have been a form of being
a pain in the butt….always meeting us even at the spur of the moment
wanting to see a house that we or you found….being and giving us your
honest opinion on the houses we were looking at and making sure we
understood what we needed to know once we found the house and
neighborhood that we wanted to live in and who could forget the days
and nights we were sick and when you were sick with the flu but still
pulled it all together to meet with us. I could go on and on but what
it comes down to is that you are a smart, thoughtful and good person
and you knew and figured out what we were looking for and did a great
job working out all the details to make this happen as painless as it
was.
So this a thank you from the bottom of our hearts with nothing but good
and happy thoughts for you and your family and to all the people you
work with who has helped us with our house purchase. You do know where
we live since you helped us find it…so if you are ever in the
neighborhood please feel free to stop on by for a visit or call us if
you need a cup of coffee on those cold days and nights or even to show
our house to anybody else you are helping look for their dream house.
It would be our pleasure to tell them all about you and what you did
for us and what they could expect from you.
We will talk soon…promise.
Your friends forever…..Rick and Kathy Ferrari

____________

Rick & Kathy - Thanks so much for your very kind words.

I worked with Rick and Kathy for a few months. We used Listingbook almost exclusively which helped organize our entire search. Kathy became quite an expert at using the program. Tony Auffant helped them obtain a 30 year fixed mortgage at a good interest rate and played a critical role in making sure their loan came through smoothly and at a good interest rate. We found the house, worked out the kinks and closed on time.

In order to make their home purchase work, I worked diligently with the Listing Agent and the attorney’s, making sure that Rick and Kathy would be taken care of and their closing date would meet their needs. Everything worked out in the end and Rick and Kathy purchased a nice home in a very good buying market.

Congratulations to Rick and Kathy. One of these days, I will take you up on that cup of coffee. I appreciate the offer and hospitality!

(c) Copyright 2008 www.tommcgiveron.com

Aug

5

Long Island Real Estate Market: Appraisals Hitting Home

Filed Under Buyers, Sellers, Sellers & Buyers | Leave a Comment

As we progress through this challenging market, one of the glaring differences between successful selling agents and unsuccessful listing agents is how they are advising homeowners. There are plenty of real estate agents doing business like it was 2004 all over again. They are the agents who are telling homeowners anything they want to hear and promising just about anything to “get the listing”.

The importance of appraisals will have a major impact on the long island real estate market moving forward into the end of 2008 and the beginning of 2009.

Why?

Simple. Appraisals are tightening up, much like the mortgage industry. Banks are not simply window shopping loans. Banks are now involved in the process of establishing appraised values on homes throughout the Long Island area.

The business of real estate sales has changed dramatically in the past 2 years. That’s why the National Association of Realtors (NAR) lost over 100,000 members in the first three months of 2008. Understanding the business of real estate is an absolute requirement. The days of getting your license and slapping a sign on a piece of property, only to sell it 4 days later are gone and with those days, so are the people who got into this business without a clue as to how it really works.

Now, appraised values are increasingly difficult to determine. I am a very conservative market analyst. The numbers I provide my prospective home sellers are as accurate as possible and close to what I believe a home is truly worth - according to a bank - as possible. I am not a certified appraiser. I provide comprehensive market analyses of home values based on recent and pending sales.

Pricing a home for sale correctly can also help the buyer. If a buyer puts in an offer on a home that is overpriced, goes to contract and then finds out the home won’t appraise for what they offered, they could find themselves in a predicament, depending on the contract stipulations (I think it’s safe to say that a buyer, especially in this market, doesn’t want to be paying more than fair market value).

So moving forward, it’s important for homeowners to listen to an agent who gives them the goods on homes sold in the area as well as pending sales. What’s more important is also a combination of events in the market, comparative data from last year given a matching time period, mortgage industry news and much, much more. Personally, my presentations may not be the prettiest thing going, but they are packed with information that’s useful to helping a prospective seller price his/her home correctly to acheive maximum buyer interest and ultimately qualified and acceptable offers.

(c) Copyright 2008 www.tommcgiveron.com

By Tom McGiveron, Licensed Real Estate Salesperson

For a free comprehensive market analysis of the value of your home, please call me at 631.831.9048.