National Open House Weekend !

This weekend is the National Open House Weekend on Saturday April 20th and Sunday April 21st we are going to see buyers out in mass ! If you only hold one open house this year whether your an agent or a For Sale By Owner this will be the weekend to take get your home out there ! Because there will be a large amount of homes holding these open houses it is very important that your home shows well, and you take the time to make sure it stands out from the crowd !

• Timing: You should consider letting your agent hold a longer open house, because there will more than likely be alot of homes on a buyers itinerary for the day you want to make sure they don't miss yours ! Simple adding an extra hour to the open house can make a difference or consider holding one later in the day during times that others are not like 3PM - 5PM ! 

• Be Inviting: Either your or your agent will want to find a way to get the buyers to slow down and really see your home, when there are so many open houses to get to buyers will sometimes go through a home quickly and miss some great features.  A simple way to do that is by setting out some refreshments.  Make an area where they can help themselves to some ice tea or water it will give them a reason to take a minute to relax and take in what your home offers.  

• Spruce Up Your Curb Appeal: Putting up some new numbers on your front door, putting out some brightly colored potted plans, add some additional solar lighting, or even a small lounge area on a porch can really change the look of a home from the curb ! 

• Set Up Outdoor Space: I always stress in the spring time for homeowners to play up their outdoor living area, but during this weekends open houses it is the perfect opportunity.  Buyers will be happy to be able  to spend sometime outside with their agent or yours discussing what your home offers them ! Other plus is anything you invest in outside will usually be things that will be going with you to your new home so it is not an investment you would be leaving behind ! 

• Make It Memorable !  Buyers will be receiving quite a few highlight sheets from all of the open houses. You want to take the time to set yourself apart and give them a reason to keep your homes information separate from all of those others that will more than likely be lost.  What I do is actually give them a packet with your homes information, community & school information, and other real estate related articles, and for some homes I include an Virtual Presentation DVD of your home ! 

I wish the best of luck to all homeowners who are hoping to find their buyer this weekend, and for all those buyers happy house hunting ! If your interested in seeing a full list of what homes will be holding open houses in the Babylon Village area please look under the Real Estate Round-Up which I publish every Friday on the Babylon Patch ! 

The Top 5 Tips For First Time Homebuyers !

I decided to spend a moment and focus on buyers for a moment.  I have a lot of information for my sellers, but when it comes to working with buyers I would have to say first-time home buyers are my favorite.  Perhaps I like the "challenge" but it is a different kind of reward when you hand someone the keys to their very FIRST new home ! 

Get Your Finances In Order

Before you start working with a buyer broker, getting a mortgage pre-approval is a must.  I have seen too many homebuyers starting looking before they find out what they can afford.  The result is disappointment that you may have looked at some wonderful homes that turns out does not fit into your budget.   Most licensed brokers will have reliable, and attentive mortgage brokers they work with that they will be able to refer you to. 

Know The Language 

Know the terminology of real estate, you want to understand what brokers are talking about.  Short sales vs Foreclosure, there is a very big difference.  You want to be sure even when you are looking without an agent you have a good understanding of what everything is.  You need to understand the difference between Listing Agents, Buyers Brokers, and disclosure.  Listing agents obviously list the house, and work for the sellers.  Every first time home buyer should work with a Buyer Broker, they will provide you with information about the homes in the neighborhood your looking for, make sure everything the seller is representing is true !

Find A Good Buyers Agent

This is the most important part for a first time home-buyer, you are going to be depending on this person to help you make a life changing purchase.  You need someone who is okay with having to “hold your hand” so to speak during the process, not because you need it but it is a resource that is available to you.  I once stayed in a closing with my first time buyers for 5 hours, it was a short sale and the bank was having its own issue with paperwork which held us up.  Before leaving the attorney, pulled me aside to thank me for staying and explaining what was going on to his clients.                  

Decide What You “Must Have” And What You Would “Like To Have”

I had a home buyer once tell me that she would never purchase a ranch they would never give her the space she needed.  For the most part she was right, almost every single home that was a ranch would not meet what she needed to have.  Before we began looking I asked her to make me a list of her “must have”,  and “like to have list”.  Must haves are the number of bedrooms, a school district, or a price range.  These are things that if they did not have them it would be impossible to move to that home.  Fireplaces, pools, central air, these are all things that you would like to have but, you could live without.  These lists are different for everyone, in this clients case the home she purchased ended up being a ranch.  If we had limited the search she would have missed out on her “perfect home”. 

Should I Spend The Money To Have A Home Inspection?                                                                                                                                  

Absolutely. The $200 to $500 that a professional home inspection costs could be the best money you ever spend on your house. Not only does the home inspection seek out any defects (and gives you some peace of mind), the home inspector will often give you tips on maintaining and repairing your house. See the section on Home Inspections for tips on what to look for and how to choose a home inspector.

For more information on Buyer Brokerage Take a look at my virtual presentation ! 

Home Sweet Home Improvement

If your thinking about putting your home on the market, and you want to get top dollar from your home the saying you need to spend money to make money is often the last thing you want to hear.  There are plenty of inexpensive ways to help improve your homes chance of selling, you don't necessarily need to spend thousands of dollars by doing a complete overhaul but certain key changes can really change the overall appearance of a room ! 

• Kitchen makeover. The kitchen is the most popular room in the house to remodel. Most in the industry will tell you money spent upgrading a kitchen produces the highest return on investment. One of the best things you can do in a kitchen is replace the countertops, sink, and appliances.  Depending on the size of your kitchen you can get remnant pieces of granite, or another great option is butcher block counters they always give a kitchen a great clean look ! 

• Bathroom fixer-upper. Upgrading a bathroom is another sound choice and will often provide a significant return on investment, as large bathrooms typically top the list for those seeking a new home. A quick change of a vanity, toilet, lighting, and fresh paint can cost under $500 and give your bathroom a great facelift ! These are simple things that can really give a buyer a fresh look at your space ! 

• Flooring updates. Many homes on Long Island have hardwood floors if they were built in the 60's or 70's whats amazing is the builders than covered them with carpeting ! If you have hardwood floors pull up that carpeting and show them off ! If you have bright colored carpet trade it out for more neutral colors this can help the buyer visually picture their furniture instead of thinking about what exactly would match your carpet ! 

• Create Outdoor Living Space. This is another great trick, and the best part is normally you will get to take your upgrades with you.  If you have a nice patio you can buy some new furniture, solar lighting, and a few potted plants can show the buyer the potential in even the smallest yard plus that new patio set will come with you to your next home ! Solar lighting and bright colored plants are also a great option for your front yard to help your curb appeal ! 

Whether or not you choose to update your home there are some things you should do and I can not stress this enough but de-clutter your home.  Pack up what your not going to be using (seasonal clothes, holiday decorations ect.) and put them into your attic or storage facility ! I can't tell you how many times homeowners de-clutter the home but put it all into their closets and than we have an avalanche when the buyers open them up ! You want the buyers to have the space in your home to see what it will look like with their furniture and their family living there ! Almost every buyer whom I have had buy a home, always took the time to figure out where there things would fit before making the final decision ! 

Deciding Whether To Buy Or Rent, What You Need To Know !

It's that time of year again where we see renters deciding whether or not they will continue renting, or will consider being a new homeowner ! This blog is to help all those considering purchasing answer that most common question "Should I Buy Or Should I Rent?" 

Why Should I Buy A Home Instead Of Rent ? 

It's a fact that in most markets, buying a home is significantly cheaper than renting.  Renting is money you will never get back, but buying a home is an investment in your future.  In most areas, if you can afford to rent, you can afford to buy! For more information on this topic you can refer to my blog, here it will give you both the pros and cons for both buying and renting, as well as offer you alternative options.  

How Do I Know I'm Ready To Buy A Home? 
The best way to know if you're ready to purchase a home is to look at your current situation.  You don't need to be employed with the same place for 2 years, you just need to have had a steady income in one field for the past 2-3 years.  You will want to run your credit and take a good look and make sure everything that is on the report is correct, if not you will want to have it corrected! You will also want to make sure you have money saved up for a down payment, in some cases you can withdraw from an IRA penalty free for a first time home purchase.  For more information on this topic you can refer to my article, here.

How Much Money Will I Have To Pay Upfront To Buy A Home? 
This is not an easy answer, because there are two factors depending on what kind of loan you take and the amount of the loan is what will decide your down payment.  For an FHA Loan you will need to put down 3.5% where a Conventional Loan you will need to put down atleast 20%.  The average cost of a home in Suffolk County is about $325,000 which would require a FHA down payment of $11,375.  

You will also need to factor in closing costs, but you can also ask for a sellers concession or have the money "gifted" to you from a friend or family member.  This ranges again by the loan amount, and any mortgage broker is required by law to give you a good faith estimate of closing costs, this is why you should always choose a reputable bank Of course, Coldwell Banker Mortgage is more than happy to help and you will always be given all of your loan options.

Once you have decided that you are in a financial position that you would like to go ahead and begin searching for your new home there are a few things you should look into.  You will want to learn the difference between what kind of homes are on the market, who you should have working for you, and what happens once you have found that "perfect home".  Because each of these topics are best explained in detail I will list each topic below with a direct link to blogs to help you get informed ! 

• Why You Should Work With A Buyer Broker
• What Kinds Of Home Are On The Market
• Benefits Of New Construction
• Short Sale VS Foreclosure
• What To Offer For That House 
• What Happens After Your Offer Is Accepted 
• What It REALLY Means To Be In A Buyers Market 
• Tips To Finding The Perfect Home

Tips For Selling During The Summer

It is that time of the year again, with every change in season I write a blog for homeowners who are selling or thinking of listing.  Although the weather we have been having seems more like spring with all of the rain lately, summer is only a few days away.

Now some Realtors will tell you that summer isn't the best time to sell, this is another one of those myths that I don't know how it started but it is false.  If your selling during the summer months you can expect a few more "tire kickers" but you can also expect to see some very aggressive buyers.

Bring The Outdoors In 

• The simplest way to help your flow from the inside of your home to your outdoor entertaining is very simple.  If you have a patio door or sliders make sure that you remove the blinds if they are not inside the glass, and place a shear curtain up instead.  This allows the light to still shine through, while still giving you privacy.  

• Your patio is almost as important as your dining room to buyers during the summer time, if you have a patio set take the time to arrange it on the patio, spruce it up with new cushions or an umbrella.  Show buyers that they will have the space and area to entertain in your yard.  If your patio is smaller they do sell small bistro sets that you can purchase, these are great for condo's and townhouses ! 

• Outdoor lighting is becoming a very popular trend, it really does make the yard look very inviting and adds some ambiance.   You can pick up sets of 4 from your local home improvement store for under $40, and they are solar so they require no wiring and generally last 3 years before they need new batteries. 

Water Works

• Water your lawn regularly !!  I can't tell you how many homes during the summer months including mine, get those large patches of brown straw like grass.  A brown lawn is never appealing, this is a big part of curb appeal be sure you invest in good sprinklers if you do not have the luxury of in ground sprinklers.  

• Time your sprinklers for times when buyers will not be walking around your yard. I know that the best time to water the lawn for most people is the middle of the day, but take the time to perhaps either run them in the early morning hours or later in the evening.  I am a big fan of strappy sandals and I can't help but not want to walk on a wet lawn, many women will understand this and you want the buyers to spend time in your home taking it in, not avoiding parts of it.  

• If you have a pool be sure to open it up, make sure your water is clear most buyers will assume if your pool is closed that something is not working properly.  You want to showcase this kind of amenity, if you have decking or fencing around it be sure you make sure that it is in the best shape possible a simple power washing, or fresh coat of stain can go a long way.  

Comfortable & Cool 

• Don't skimp out on the air conditioning this time of year, if you have air conditioners turn them on ! Now you don't want to freeze your buyers out but keeping it at a school 68 degrees allows buyers to be comfortable walking around your home.  I can't tell you how quickly a showing will end if a home is hot and stuffy on a summer day, no matter how great the home is no one wants to be in a sauna. 

• Now I do tell most of my homeowners to leave during showings of their home, many buyers no matter how nice the homeowner, still feel as if they are intruding.  What you can do is in a small bowl put some ice and a few bottles of water, it is a nice gesture that will often allow buyers to relax, cool off and really take in your home rather than rush through it.   

Clean Up & Organize 

• This is the simplest thing to do, and surprisingly very important to buyers. Outdoor areas are very important to buyers but where they are going to store all the things they don't want to leave out in the weather is also important.  If you have a shed or a garage with an entrance/exit into the backyard take the time to clean them out and organize. 

• Make sure any chemicals you have (Ex: Pool chemicals, pesticides, gas containers)  are locked up, many buyers will have their children with them since there is no more school, and camps usually let out early.  

These are just a few of the tips for the summer selling season, and there are additional tips that were covered in the Spring Season blog. If you are looking for suggestions on what you could do to spruce up your yard I am always more happy to help.  You can email me pictures of your "problem areas" and I will make some simple/inexpensive suggestions that may help.  

Rentals 101

Rentals are not something I often blog about, but my blog always come from things that I come across, and I am seeing more and more homeowners opt to use a Realtor when it comes to renting out their space.   I also see more home buyers wanting a rental income in their new home, and not many are educated on what to look for and what they should be staying away from.

Renting Your Space Tips

The very first thing I have to say to all the homeowners is be considerate to your Realtor, just because the tenant is paying the commission you should still understand you are signing into a contract with a company to work for you.  If you think a family member/friend is going to rent from you find this out BEFORE you list your home, don't call us a few weeks into all our work to inform us you don't need us because you found someone close to you to rent.  We will never express to you that we are upset because we are professionals, but imagine going into work for weeks knowing you would have to wait for week 4 to get paid, and when week 4 comes your told that they won't be paying you.  Of course there are sometimes where circumstances arise and this happens as well, and I have willingly withdrawn some rentals because the homeowners were upfront and honest with me.

Picking your tenant is always a tough decision, sometimes you will have tons of applicants and other times you will only have a few.  I always suggest choosing your tenant based on Credit Score, Background Check, Proof Of Income, and Current Landlord Reference.

When looking at someones credit score their are a few things you should keep in mind.  In today's economy many potential tenants may have a low credit score, if they do you can ask them to share the entire report and base your decision on their entire report but keep in mind legally you are ONLY allowed to see the score itself.  Many tenants looking for whole house rentals in recent months are coming out from a short sale on their own home, which is what caused their score to drop.  If that is the only blemish on their credit I would recommend still considering them as your tenant.  Many people fell on tough times, and if they are pro-actively trying to fix things I believe that it does say something about their character.

Another big concern is for those tenants who are working off the books because proof of income becomes a little more difficult.  Even if you are being paid in cash neither the Broker or the Landlord is the IRS, we are not concerned about you not paying taxes.  Many employers are willing to write a letter stating that you are paid an average amount weekly, or if you frequently deposit a specific amount of money simply showing us the account deposits with your personal information blacked out (ex: Account #, SS #)may be enough for the homeowner.  Another time when Proof of Income can come into question is for those who are Independent Contractors, like me because we don't receive checks weekly or sometimes we will have a ton of business and other times they may be less.  If you have tax returns, or some sort of quarterly statement available from either your business account or employer, even tax returns can work for proof of income.

References and checking with their current landlord must be done, and documented.  Your real estate agent will be making the calls for you so before they begin making the calls be sure to review with them any specific questions you want them to ask.  No one will purposefully give someone a bad reference, what you want your agent to look for is how naturally they answer the questions.  There is a reason why we ask on the application how long they have known their reference, if someone has only known the tenant for say 2 years they may be unsure of certain things like the length of someones employment if they worked there for a very long period of time prior to the friendship.  If a reference is unsure of things like if their friend smokes, has any pets, or current employment status that could possibly be a red flag for your agent to make note of.  Any red flags that come out in the course of checking references should be communicated to you and your agent should call the prospective tenant to discuss them.  I once had someone unsure of their friends pet situation because the prospective tenant had not yet told their friend that the older dog they did have would not be making the move with them.  Again communication is always key in just about every aspect of buying, selling, or renting your home!

Tips For Buyers Looking For Rental Income Potential 

Now let's talk about one of the myths about renting and that is it's legal to rent out your basement .......... I am here to burst many bubbles when I say in the Town Of Babylon that it is illegal to have a basement apartment !! What is legal, is to have your basement converted to living space, so you can have everything except a kitchen and it be legal.  There are many reasons they will not allow for a apartment in your basement, and the most important reason in my opinion is it is NOT safe!

For those first time home-buyers the ability to have rental income plays a very important part of what their new home must have.  Most first time buyers are not aware that there are many home styles that can easily obtain a rental permit.

• High Ranch
• Split 
• Expanded Capes
• Duplex 

There are a few reasons why I recommend making sure that you have a legal rental.  Most important is you can never predict what could possibly happen to you or your home.   If you have a issue in your home such as a fire or a flood and your insurance company comes in and discovers your home has a rental and that is not legal there is a very good possibility they will not help fix damages because your home is not what you were representing it to be.  If your home is in close proximity to another dwelling and a  fire occurs in close proximity the fire marshall can request that your home is checked to make sure it sustained no damage.  No good will come of the Fire Marshall coming into your home that contains illegal rentals.  The legal fees, time, and bringing your home up to code can be costly.  

If your buying a home and you are really depending on the rental income to make ends meet month to month, be aware you may have a few months of vacancy or even worse a bad tenant which is a risk you take when you are renting out part of your home.  Many homeowners get pre-approved for a higher purchase price than they may be comfortable with paying out each month, and assume the rental income will be their safety net.   Sometimes I find that buyers think their rental income will be much higher than it really is, when your looking at homes with that income potential make sure you get a professionals opinion on what the rental income will be.  When I say professional opinion I am talking about your Buyers Broker, I am sure none of my readers are shocked or surprised that I am mentioning yet another reason for you to have your own agent !! 

Another question buyers often have is what do you do if the home your purchasing has an illegal rental in it already, can you still buy it?  Of course you can, their are a few things that protect you as a buyer from getting into a bad spot with an illegal rental.  Banks have become very strict about their inspections if they see an illegal rental they will raise an issue, so before placing an offer you will want your agent to make sure the homeowner will be removing it.   It is important to know that most banks will only require the homeowner to remove just the stove out of an illegal kitchen, and if you want more done than that you must get the homeowners agree to it and have it in your contract! Many homeowners will say they will be removing the kitchen for the home inspection, and buyers unfortunately do not clarify what exactly they will be doing and issues can arise.  You also will have your title search where they will check to make sure their are no current C/O or permit outstanding on the house.  If the homeowner is in the process of correcting these things they will have to do so before closing, and as long as they are working with a reputable attorney will not hinder the sale being closed.  

Tenants Looking To Rent A Home With A Broker

The most common question I get from tenants is why is the brokers fee so high ? The common broker fee is an additional months rent, on top of your 1 Months Rent & Security to the landlord.   When we actually do the math the broker is not really making all that much so here  is the breakdown based on a $1200 Fee: $600 To Landlords Agent $600 To Tenants Agent now you have figure the average amount that the agent actually ends up recieving from the proceeds is about half which is about $300.  The higher the rent, the higher the brokers fee but the bigger the home the harder it is for us to find a qualified tenant.  

The best advice I can give prospective tenants is to be prompt, and timely when it comes to making it to your appointments and bringing in the required paperwork.  Before I even begin the search I ask for your credit report, if you do not have a recent copy I am able to obtain that thru our Credit Report Company.  By looking at the report prior to actually submitting any rental application we are able to see if any red flags will be raised, and how we can handle them.  Once you have one copy of the credit report it can be used for all applications you will be putting in, so you will not need to constantly re-run it.

If you are planning on using a broker or renting from a home listed on MLS, the most important thing is to make sure you are not waiting for the last minute to begin your search.  This is very important here in the Village where the apartments are in such high demand many will only stay on the market for a few days, and than they will be rented.  If you plan on moving I suggest start working with a broker about 90 days before your lease is due to expire.  Based on your wants, and needs the realtor will be able to tell you roughly how long it will take to find your new home.  

My best recommendation to all those tenants is similiar to the advice I give to my buyers and that is to get your own broker! Your going to be paying that one months brokers fee no matter what, so why wouldn't you have someone doing all the legwork that goes into finding your new home ! 

Steps To Getting An Accepted Offer Blog 2 of 2

There is another aspect when it comes to deciding what you will offer for any home,  based on which of the 3 categories its price falls into for that neighborhood.  There are some towns that have Villages within a town, it is important to remember that many times homes in these areas have a completely different market although they may be in close proximity to one another.  


This is the case in Babylon Village, because of the different amenities the town offers & many of these homes are historical.  Some may even have strict guidelines on what changes can be made to them, because they are historical to the village.  This can also happen sometimes with homes that are located "South Of Montauk", they are considered more valuable than one perhaps 2 blocks north of Montauk Highway.  


You should always take the time to meet with your Buyers Broker, and be sure that you are not comparing homes outside of the area or other homes you may have seen, with the one you are putting an offer in on.  The term "Location, Location, Location" is still very true! 


Now lets take a moment and talk about the 3 different categories, every home on the market falls into 1 of these 3 no matter what kind of sale it is.  


Above Market Value 
This is thankfully becoming less of a trend, with the market being "down" for quite sometime many homewoners have accepted that their home is not worth what it was perhaps 5 years ago.   Sometimes we still see that overpriced home and I can gurantee you that the listing broker knows that it is, but may be having a hard time getting their seller to see it .  They are more than likely silently praying for a offer close to market value to come in to give them a chance at doing their job, and getting the homeowner to take accept your offer! 


These can potentially be a harder offer to get accepted because the homeowner needs to come down alot in their price, and you may only need to come up slightly to be at fair market value.  Sometimes they may not be in the position to sell their home for what market value is because of how much they purchased it for,  equity loans, or refinancing that they had done.  These kinds of homes are the most unpredictable some sellers will tell their real estate agents they can not go below a certain number, and somehow that bottom line number can drop $50,000 out of no where.  


When placing an offer on a home that is overpriced you should ask your Buyers Broker to present the offer directly to the seller  themselves.  It is your agents job to sell them on your offer, and to be sure that all the information was communicated clearly from your down payment, financing, and terms!  


Market Value
This is where you really need to count on your buyers broker to find out the details, and works hard for you.  They will be able to find out what the sellers motivation for selling is, meaning do they have another home under contract or are they still going need to find a home before you can close ? 


Now you absolutely can offer less on this kind of home, but base your next counter offer on the homeowners reaction and offer.   You do not want them to feel insulted by your offer especially since they have taken the time to be educated sellers and priced their home fairly.   


Always remember a home that is priced fairly means that they will have other buyers viewing their home, and an offer can come in at anytime if you really love the home don't stand in your own way over something that will make a $20 difference in a mortgage payment! 


Below Market Value 
Now let me clear up another silly myth, just because a home is priced below market value does not mean that it is a wreck or falling apart.  What it does mean is the house will be on the market for less than a month and it will more than likely be higher than what it was listed for and the homeowners more than likely had a handful of back-up offers! 


I am asked by so many buyers why would a homeowner price it below the simple answer is they want the house to sell quickly. When your agent calls and tells you about this home, be sure to clear your schedule and get in as soon as you can! Speed can be the difference between you getting a great deal or not! 


Now that you understand what kind of house is for sale, and what pricing category it falls into you are now one step closer to getting yourself an accepted offer! negotiating 

What A Buyers Market Really Means

The spring selling season is coming upon us and it is coming sooner than most homeowners may think, we have already had a rush of new buyers begin their search!  There are some very important things you should know as a homeowner to sell your home in this market, and buyers should be aware of the realities of what it means to purchase a home in today's market! 

Let's start of by explaining exactly what causes a buyers market. 

• Large Inventory Of Homes On The Market
• Homes Taking Longer To Sell 
• Smaller Pool Of Buyers  

Important Information For Buyers 

You can get a “steal” on every home on the market

Let’s me just take a minute and clarify what I mean by “steal”.

If a home is listed for $250,000, is in move in condition with no liens, offering the homeowner $180,000 will do nothing but insult them.   Always be realistic when you put in your offer, pick your Realtors brain find out what the value of the home actually is, and put in an offer based on that information.   

Now if the home is a short sale, than a low offer may still get you the home, but remember the current homeowner has the “right of first refusal”, they will be trusting their agent to guide them that the offer reasonable.    

There are times where you can get a home for a “steal”, and that is with a foreclosure. Many of these homes have been sitting, and require work before they can even be moved into, in some cases they might be missing heating and plumbing. The banks have to recognize they can’t expect full market value.

A foreclosure sale is not for everyone, I usually find that it is easier to get my buyers into the ones that were already bought, renovated, and re-listed by investors. 

The buyer looking at the home decides what the value of the home is. 

A homes value is actually decided by the home buyers that have purchased in the previous 6 months.  You as the prospective buyer will actually be deciding the value of the neighboring homes for the next 6 months worth of buyers that buy a home AFTER you!

Another common misconception is that the house is worth the same as the neighbors!  This again is about the value of your home.  If your neighbors house is comparable to your home, than it might, but even than it will only be usable if it is sold in the time table that works to your advantage. 


I can find a better home, and it will be cheaper prices are still dropping! 


I always tell my buyers, if you find a house and you fall in love with it don't miss out on it! I will tell you if the home is overpriced or not, but if the home is really a great value it will not last! Don't lose a home that you love, for a house that you aren't sure it exists!

Important Information For Buyers 

You can sell your house quicker without a Realtor or I can use a discount brokerage to sell my home.  

The most common answer I hear when I ask someone why they chose to sell their home without the assistance of a Realtor, is they think the buyers will see it as a "value" that they don't have to pay "extra" for a home.  Now I am not saying that it is never happened, but it is not very often that a home sells without the help of Realtors, especially here in Suffolk County.  

The very first thing a homeowner should take into consideration is that most buyers have a "Buyer Broker" which means they have a Realtor that they will need to pay, because they will still be doing their job if they buy your home.  Now what you thought would make your home seem like a value will now mean extra money they will need to pay to buy your home.  

Now I have written countless blogs on staging, photography, virtual tours, home warranty, and really using technology to get your home sold. The reason I constantly reiterate this information is because it really is what will get your home sold.  

With the cost of not only doing these things, but spending the time to do them properly is usually a much harder undertaking than most homeowners expect it to be.  When you hire a Realtor, it is important to remember you are the boss! The other common reason I hear is they had a bad experience during a previous time they listed their house.  I reference this in another blog, about what you should be asking the potential Realtors who want to list your home.  

Always remember you want to list your home aggressively the first time it is on the market, that is what will set your house apart.  You need to be sure your home is priced right, it is advertised everywhere, it is easy to show, and you have a reputable company representing you! That is the way to sell your house in a buyers market! 

I am only going to list my home for 3 months, this way my Realtor works harder! 

Unfortunately this is the one misconception that is completely off base, the market does not allow for a home to be sold within 3 months when the average time to sell a home is 6 months to a year! The best analogy I can use is this: If I told you to go to Florida on 1 tank of gas, and you knew it would take 2 tanks, would you go? Market conditions is what you should be basing your decision on, again I wrote a blog specifically on how long you should list your home for.

I understand that as a homeowner you don't want to be "stuck" with a Realtor or a company that is not doing what you may want them to, but again remember YOUR ARE THE BOSS! My company has a sellers services guarantee that if we are not doing our job 110% you have the right to withdraw your listing from our company.

My home isn't getting offers, because banks just aren't lending! 


Banks are absolutely lending money! They didn't lower their interest rates because they wanted to prevent buyers from getting a mortgage! Coldwell Banker Mortgage Company can work with a credit score as low as 615, and I work with other mortgage companies that only require a 625 credit score! Down payment requirements are as low as 3.5%, compared to what many people may think is still 20%.  The key to knowing if someone is a qualified buyer is to make sure their pre-approval are thru a mortgage company who puts their pre-approvals thru underwriting!

If you are interested in seeing exactly how many homes were sold be sure to take a look at some wonderful charts provided by my managing broker on his website The Real Estate Guru.


I hope this helps clears up some of the myths & questions that go along with a "Buyers Market", if you have any questions feel free to email me! 

Babylon Village Historical Homes

If you are looking to buy a home in Babylon Village, you will often come across some unique and historical homes, these are of course wonderful homes in a family oriented town.  Homes in Babylon Village are considered "historical", and will normally have a "plaque" displaying the year it was built, and they are each registered with the historical society.  For every 1 that displays the "plaque" there are just as many that are not recorded, you can find 8 homes currently on the market that fits the criteria to be considered, but are not recorded.  

These are great homes just waiting for the perfect family to move in and bring new life to the home.  When buying this kind of home there are a few key points that I always recommend that you pay close attention to! 

1. How is the foundation? 

Old homes can have foundation issues which can be very costly to fix, and often is not a simply repair.  Most historic homes are over 100 years old, so you MUST hire a reputable home inspector who knows about what to look for in these homes.  They will look for signs of cracks and shifting in the foundation.  As well as mold, and other costly fixes.   The most important room in a historical homes is first and foremost the basement! Many homes in the Babylon Village area will not have basements, only a crawlspace so it is still important to have the inspector give it a thorough look thru since there could be water damage from storms, or termites.  

2. How old is the electrical wiring? 

Many old homes still have the original knob-and-tube wiring.  Although it works, it can be a fire hazard, and it will usually is because it is covered by insulation especially in the attic.  You will want to check and make sure if it does not have extremely old wiring that the home has the correct ampage needed for your belongings.  Some home owners will upgrade the electric to the basic necessities the home already had so keep in mind if you plan on upgrading appliances, lighting, air condition systems, or pools you want to make sure the electric panel either has room for add-ons and can handle what your future plans will be.  

3. How old is the plumbing? 

If the house still has the orignal cast-iron pipes, you might need to replace them because of mineral buildup, corrosion, or leaks.  Make sure you homes inspector checks any exposed piping to be sure they are working order.  

4.  How is the house heated? 

Old radiators do add character to a home, but in today's economy oil is a very expensive way to heat your home.  You can either speak to the owners so that you have a realistic idea of what your home heating costs will be.  You can also find out from neighbors, or your real estate agent if the neighbors have converted to gas, if the neighbor has converted this is a good sign that you will be able to as well.  

5. How is the roof? 

In any home you will of course check the roof, but in a home that is over a 100 years old you want to not only make sure it does not need to be replaced but you will want to know how many layers of roofing there are, or at least have a good idea, the cost of replacing an entire roof is enough without a roofer adding additional costs because of additional layers that need to come up. The one wonderful incredible thing about a homeowner of a historic house, they usually have more background on the home than most.  

Historic Homes In Babylon Village Currently On The Market

86 Litchfield Avenue

8 Room, 4 Bedroom, 2.5 Bath

MLS#2400044
Listed By Westcott Group Inc.

More Information About This Home

43 Thompson Avenue

11 Room, 5 Bedroom, 2.5 Bath

MLS#2453660
Listed By Netter Real Estate

More Information About This Home

52 Stuart Avenue

10 Room, 5 Bedroom, 2.5 Bath

   

        

MLS#2448052
Listed By Coach Real Estate

More Information About This Home

Other Historic Homes In Babylon Village 

 This French-inspired home dates to the 1850's

                        

 

This Shore Road home dates to 1820 and is what remains of a large estate.

Babylon Village is known for its many charming older homes, from 19th-century fisherman's homes to elegant Victorians.  Patch offers up a tour of the oldest of the old homes.  Is your home even older? 

Let us know by posting a picture or leaving a comment.

If your home or business is more than 100 years old, you can apply for a "Circa Board" to display from the Babylon Village Historical and Preservation Society by stopping into their headquarters to find out more information.

Photos and Article Credit:  Jacqueline Sweet & Babylon Village Patch

What To Offer For That House?

Let's take a moment and touch on a subject not many Reatlors write blogs about, and that is

WHAT DO YOU OFFER FOR THAT HOUSE!

Let me start off by saying it is YOUR choice what you offer, but you want to put in a strong offer, it requires research and analysis by your Realtor. This is why you must always work with a buyers broker, this is where you believing in there abilites and trust is important. 

A home is not always worth what it is listed for, but on the other hand if the listing Realtor is a reputable agent than the list price will normally be accurate to what the neighborhood and the home is worth.   A low offer is not always the way to go, make sure your offer is fair!

In some towns, there are certain areas that only span a few block that the prices go up higher than other homes within the 1 mile radius that you would normally pull the comps for.  When this is the situation you need your Realtor to explain exactly what it is, sometimes it is simply that the area is more desirable, other times it is school district, or distance to certain amenities a town or village can offer. 

The lack of comps can sometimes cause confusion for the buyer because now you need to do quite a bit of math to add and subtract for the difference, because the comps will not match perfectly to the home they are comparing it to. 

When pulling these comps your agent will try to get it as close to a match as possible but you will still need to tweak these comps accordingly.  Here are some key points to remember when your agent is going over these with you. 

NEW VS UPDATED

NEW appliances have never been used, this means normally you will have the paperwork for the warranties, and they have been put in within 6 months of the home being listed.   

UPDATED appliances have been used by the current homeowner or tenant, these updates have been done usually within 5 - 8 years of the home being put on the market.  So that updated kitchen could already be 5 years old. 

Because of this even when a bank comes in, they will always add value to homes that are new/recently remodeled.  Because of the changes in energy efficiency from the type of insulation that is used to compared to previous years, appliances, and building material these homes have a higher value than a home that has just been updated over the years. 

For a home that is able to boast that it has been completely remodeled, with everything new can add value of anywhere from 8% - 10% compared to other homes that are simply updated.  This is something very important to keep in mind when you are comparing a remodeled home to comps that are not.  As a homeowner I agree that these homes are very much worth the extra money that you pay to own one, your value will rise much quicker, and your out of pocket costs to move in and maintain your home will be less than the average home-owner. 

MAIN RD VS BUSY RESIDENTIAL NEIGHBORHOOD

This is normally quite the debate, I could name many roads that I would consider main roads in a town but when a bank appraiser comes in will not agree, and therefore they will make no price adjustment. 

Location is the one thing you can not change about a home.  You must decide as a home-buyer if this location is right for you or not. 

Keep in mind that when you are putting in an offer, you can reduce your offer if you feel the home is over-priced based on the homes location, but be reasonable when you make this deduction.  This is a time when trusting your Realtor and seeing the comparison is very important, ecspecially if you are not from that specific area. 

Let me also say this, if a location does not work for you for any reason you should never feel pressured to still buy it from your Realtor, they should offer to show you homes in the same area away from your objection area.  Some examples of this can be homes that have busier traffic patterns, sumps, or simply the privacy aspect to your neighbors. 

This will be your home and you will be the one living there for the next 15 years not your Realtor. 

WHAT IS THE BASEMENT REALLY WORTH ?

To me personally they are priceless, to a bank appraiser they don't add any huge value because there are many variables that decide the value for you.   

Let's say someone has a fully finished basement, with no CO, well unfortunately it is worth nothing, because it is not legal. 

For an average size home, with a finished basement with proper permits, the value is suprisingly low, between $5000 and $8000. 

If your looking in an area that does not have basements you can not reduce the price of the home because of it lacking a basement, because all of the comps do not have them either.   

This is often a surprise to those who are looking to live closer to the water, most homes will only have crawl-spaces not basements, and there is no reduction that would be considered reasonable. 

THE MAN THAT WAS GIVEN A HOUSE NOT JUST A ROOM   

The garage typically you will have atleast 1 in some cases 2, and in the rare occassion 3 or more. 

When this happens I call it "The man that was given a house", and I unfortuntaly have to break the news to them that yes I personally appreciate their 5 car garage, painted floors, and custom shelving, but that means nothing to the bank and doesn't add anymore value than a nicely maintained 2 car garage. 

A garage that is over the top is not neccessarily considered a "value" when it is is extremely large, but it is considered a selling "feature" because this isn't something that the average buyer is looking for, but some will appreciate and want. 

Things like numbers of bedrooms, bathrooms, kitchens, living rooms, are what add that value to a home. 

HOW MUCH ARE THOSE EXTRA ROOMS WORTH ?

When it comes to pulling comps I would personally never recommend using homes that did have the same numbers of kitchens. 

Mainly because kitchens are really what sets a house apart, it can go from a 1 family to a duplex, legal 2 family, 2 family by renewalable permit, or mother daughter.  Also keep in mind if you look at a home, and you notice that 2nd kitchen but it is listed strictly as a single family dwelling, and the listing broker is not representing it as a kitchen than it is because it is not a legal kitchen which makes it worth $0! This is where again it will become a selling "feature", and can quite possible cause some red flags when it comes to obtaining a mortgage. 

As far as bedrooms, bathrooms, living rooms, and dens these do add value so you will increase or decrease this to the value of your comps. 

Personally I will add between $8000-$10,000 depending on the depicted size of the room for average size bedrooms, and dens.  If a home has a master suite which can include its own separate bath, walk-in closets, sitting rooms than obviously you would add more than $10,000.  

Bathrooms although they have value, are more valued by us than a bank.  Normally I try to stay as conservative as I can between $5000 - $8000.

This is also an area where the difference between NEW and UPDATED plays a huge factor, a home that has truly new kitchens and bathrooms are always worth top dollar as far as putting a number to them.  Most new homes come with granite counters, tile backsplash, stainless steel appliances, furniture styled vanities, hardwood floors, CAC, multi-zoned heating these become both a feature and a value. 

WHAT IS A FEATURE WORTH ?

Unfortunately I wish I could put a value on what a feature is worth, but it is practically impossible.  Every feature will have its pros and cons to an individual buyer.   Some features will be worth alot to a buyer, and others will be a drawback. 

My best advice to home-owners is keep in line with your neighborhood when it comes to features.   Do not go overboard because you can not gurantee you can re-coup the investment you made adding features, but you can be sure that your home has simliar characteristics as your competition does, so that buyers will be comparing apples to apples so to speak.   

If all the homes in your neighborhood have beautiful landscaping in the front, than I would suggest small upgrades to be sure you have similiar curb appeal.  If most homes have peeled back their carpeting to expose the hardwood floors beneath, when you put your home on the market either A- Remove the carpeting B- Make sure your agent expresses that their are hardwoods underneath the carpeting. 

For many home-owners their features are not added initially to keep up with the neighborhood, but because they were personal wants and needs for the individual.  If you choose to upgrade your home extensively more so than your neighborhood calls for,  I advise you to stay as conservative as possible because it could be helpful or hurtful in a  home that has been updated, and is not able to be categorized as new. 

 WHAT'S A FEATURE ? WHAT'S A VALUE ?

Features

• Pools, Heated Pools, Sauna's, Hot Tubs  
• 3 Car or more garage
• In Ground Sprinklers
• Brick Pavers
• Outdoor Lighting
• Solar Panels
• Elaborate Fencing, Gardens

Value

• New Renovations & New Construction  
• LEGAL Add Ons (Ex-Basement,Extentsions, Dormers)
• Waterfront/Waterview/Private Beach
• Bedrooms/Bathrooms
• Living Space
• Property Size