Oct

31

Long Island Real Estate Market: Home Pricing Update

Filed Under Sellers | 1 Comment

The median price of homes under contract in the Long Island real estate market (Nassau and Suffolk) fell again last month. Additionally, the number of available homes on the market fell. The median price of homes under contract dropped $15,000 in August from $350,000 to $335,000 in September.

In September of 2007, median price of a home sold was $380,000, a 12% decline. Nassau saw less severe declines of $417,300 in August to $415,000 in September of this year, with a decline from $445,000 this time last year (a 6.5% deline).

Throughout the island, there are less properties on the market than there was a year ago. There were 14,413 homes on the market in Suffolk County in September of this year, compared to 14,761 this time last year. What this shows is a decline in inventory, albeit a marginal decline. This means less homes are coming to market for sale.

The months of supply throughout the Long Island real estate market has declined as well from 19 months last year to 14.8 months as of September this year. The months of supply helps us determine how long it would take to sell every house that’s currently for sale. While this is over a 20% decline in months supply, 14.8% is still very high.


To summarize and make sense of all of this data, it’s important to note that these are all indicators that the market will continue to slide downward as we head into 2009 and probably well into 2010. Many experts were predicting Spring, 2009 as the overall bottom, but these numbers don’t indicate a bottom in 2009. It is a game of “catch up” and the numbers homeowners need to improve are getting better, but that’s just to get us to break even or to the bottom. From there, the numbers need to improve in the opposite direction for prices to actually go up, which does not seem to be anywhere in the near future.

If you don’t want to wait around indefinitely trying to recoupe the loss of equity during the past 32 months or so, the first step would be to determine your home’s value – now. See where you stand. I like to look at this situation this way: If it takes 40 months of decline to lose 25%, it will probably take at least that much to gain it back. Historically, over the past 100 years, real estate realizes a respectable 5% appreciative value annually. Forty months is equal to just over 3 years. Once we reach bottom, the best case scenario is the market will again begin realizing 5% appreciation which is actually on 15% compounded value.

All the jibberish aside, if you can follow it – it’s going to be a long time before the Long Island real estate market is back to normal. Keep in mind that this article did not even take into account a “global recession”, local foreclosures and the increasing number of short sales, as well as the credit crunch and decreased qualified buyer pool. And of course, our ever-increasing property tax burden, which in Nassua County especially, doesn’t seem to have any hope for, at the very least, a holding pattern, as county officials are looking to increase property taxes there once again.

The purpose of this article is to help those homeowners who are on the fence or mistakenly thinking that they can wait until Spring, 2009 to miraculously sell their home “for more”, to consider the hard reality that now is the best time to sell their home. For those homeowners who are “in it for the long haul”, obviously that’s a better position to be in, but that “long haul” must be carefully weighed against reality.

For questions about the Long Island real estate market, please feel free to call me at anytime at 631.587.1700, ext. 51.

(c) Copyright, 2008 www.tommcgiveron.com

By Thomas McGiveron, Licensed Real Estate Salesperson


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Oct

28

How Do You Buy A Home?

Filed Under Buyers | 1 Comment

In working with first-time homebuyers, there’s one clear question that needs a simple answer. How do you buy a home? That’s the question. The purchase of real estate is unlike any other purchase because it is a major financial transaction. One that should not be taken lightly (as many are finding out now after the sub-prime lending frenzy).

So how do you buy a home?

I’m going to share with you in this article, the very basic plan on how you buy a home. It is up to the reader to do their own due-diligence and learn more about the topic on their own – or by calling me.


As a first-time buyer, in one of the best buyers markets in decades, first and foremost, it is in your best interest, to find a good agent. Before I got my real estate license, I was an actual human being just like you, the reader (attempt at humor there). I believed that I, and I alone, would be best suited to “find a deal“.

After obtaining my license and working with many buyers, I have come to find that working with a qualified professional is definitely better than going it alone, thinking you’re “all that and a bag of chips”. Of course you have to find the right agent. That’s a personal preference, but they have to use cutting-edge tools and be available 24/7.

Now a good real estate agent will have the partners in the business and encourage you to either use their services or your own professional contacts in the mortgage/banking industry to determine your mortgage approval status. Determining how much you can afford and understanding the mortgage process is a great place to start.

Once you have established a basic knowledge for how much you can afford, it’s important to understand what you like, as a buyer. This may take a few visits to some open houses as you do some preliminary work to lay the foundation for your search. Knowing what you like and do not like is definitely advantageous to square away in the beginning. A worksheet that you take with you to view homes can help remind you of what you like and do not like. Second to this, allow the real estate agent you begin working with to guide your search a little. See what they come up with. If they can’t demonstrate an understanding of what it is you’re looking for, or they can’t (or don’t) talk to you about the realities of the market conditions and advise you about your price range, then it may be time to move on.

When you come to the point of making an offer, the basics of what to expect are simple. Once a price is agreed to, you will more than likely, have a home inspection completed. The home inspection is used specifically to determine if there are any major problems with the home. It is not a tool to renegotiate the tentative agreed upon price and terms.

From this point, the seller’s attorney will generate contracts and send them to your attorney. From this point, legalities will be discussed and as soon as both parties have agreed to contract stipulations and terms, the contracts will be signed. As the buyer, you will provide your attorney with the down payment, in the form of a check (make sure you have the money in the bank)!

Items such as an appraisal of the homes value, which will be used to establish an approval for the loan amount for your lender and verify to you and to all parties, that the home is valued accordingly.

Your attorney will order a title search, which will verify all information pertaining to liens on the property. You don’t want to buy a home with outstanding liens on it for obvious reasons.

You will then choose a home insurance carrier and have a policy in place to protect the home upon taking possession of the property. Your lender will require all of these items to be in place prior to closing.

The real estate closing will be scheduled according to each parties availability, most importantly, the buyers, sellers and their respective attorneys as well as the bank and title company. The real estate agent(s) will rearrange their schedule to match the closing date and their availability has no bearing on the closing whatsoever.

These are the basic to buying a home. If you have any questions on this topic, please feel free to call me at 631.831.9048 or leave a comment.

(c) Copyright, 2008 www.tommcgiveron.com

By Thomas McGiveron, Licensed Real Estate Salesperson


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Oct

28

Client Testimonial: Kevin M.

Filed Under Buyers, Sellers, Sellers & Buyers | Comments Off

I just wanted to thank you both for everything. It’s a rough market out there right now and I appreciate everything you guys have done and what you have to go through in these types of transactions. Thanks for your efforts in helping us, especially in regards to your hard work, your excellent availability and tenacity in a tough market. I will certainly recommend you to anyone I know in the area if they go looking to sell (or buy for that matter).

Kevin M. – 10/17/08

Thank you Kevin for those kind words. My partner, Paul Musso, and I helped sell Kevin’s home in West Babylon. It was a great house to market, as it was always ready to show. When we first began the listing, I thought it would be a fast sale, quick and easy. This market proved otherwise. We managed to still sell it in 78 days, but I first thought we would sell it within the first 30 days because it was a great house, a cut above the rest in the area. Through our efforts of aggressively following up with other agents and buyers, we managed to sell it and help Kevin and his family move on. Congratulations and good luck!

Oct

17

Client Testimonial: Mary & Carmine

Filed Under Sellers & Buyers | Comments Off

Dear Tom,

This card is just to say thank you for all your help and direction. You made this experience enjoyable with your sense of humor during a very scary time. It has been a dream come true and you played a very big part of it. You are honest and hard-working and those are qualities you don’t see often today. So hopefully this is only the beginning of a long friendship.

Thank you from our hearts,
Carmine & Mary A.

First let me say thank you to Carmine and Mary for allowing me the opportunity to work for them and secondly for the very nice comments. Thanks.

Carmine and Mary came to me via a referral from my wife’s CEO at her job. They were first-time homebuyers didn’t know much about buying a home, other than it costs a lot of money!
Carmine and Mary were committed to purchasing a home and we all worked hard – but always had a lot of fun. They both asked a lot of questions and became very well educated first-time homebuyers. The home Carmine and Mary purchased was a Cape with beautiful dark hardwood floors and a finished basement.

So to Carmine and Mary, I say, “Congratulazioni!” (congratulations!)

Oct

16

STAR Program For New York State

Filed Under Buyers, Sellers, Sellers & Buyers, Taxing Matters | Comments Off

The STAR program for New York state is one of those elements of Long Island real estate that talked about alot, but understood very little. Most people refer to the STAR program as a simple real estate property tax decrease. STAR is an acronym for School Tax Relief.

The STAR program application is completed by homeowners one time and provides an exemption from school taxes for non-owner occupied, primary residents. The deadline for filing is generally March 1st of each year, however it is best to check with your local tax assessor.

A great resource for information on the STAR program is http://www.orps.state.ny.us/star/index.cfm.


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