Archive for October, 2007

6 Hints for Locating a Retirement Community-North Fork, Long Island, NY

October 31st, 2007 category: Buyers2 Comments »

If you, like so many others, are thinking that retirement in a relaxed, rural environment might be for you, the opportunities on the North Fork of Long Island, New York might offer some VERY pleasant surprises. We seek to locate the perfect “spot” for you, whether it’s a condominium or single family home
with low maintenance. The following checklist might assist you in the early stages of your search:

1. Fully maintained? If the prospect of no maintenance is for you, you’ll find opportunities.

2. Family-oriented? Despite the “over 55″ requirement in some communities, there are “family friendly” areas that welcome visitors, and offer amenities to keep them occupied (pool, tennis).

3. Prefer a low maintenance single family home? Opportunities abound, whether it’s in an over-55, or traditional neighborhood with a small home-site.

4. Love the idea of a clubhouse for social gatherings and camaraderie? We’ve got it on the North Fork.

5. Close to bus/town? Many active adult communities offer this advantage.

6. Water views? There are condominium complexes that offer gorgeous sound views- while some are not over 55, the availability for this characteristic exists on the North Fork!

IF YOU’D LIKE A SAMPLING OF COMMUNITIES ON THE NORTH FORK OF LONG ISLAND, EMAIL US WITH YOUR WISH-LIST, PRICE POINT, AND TIME FRAME- WE’LL START THE HUNT TODAY, AND EMAIL YOU WITH AVAILABLE PROPERTIES as they become available.

EMAIL LAURIE MINDNICH AT: laurie@optionsrealty.com. We look forward to starting your search! Please leave your email address, and requirements, for up to the minute availability.

OPTIONS REALTY- YOUR REAL ESTATE BLOG ON THE NORTH FORK OF LONG ISLAND

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Foreclosures on Long Island, New York

October 23rd, 2007 category: Real Estate NewsNo Comments »

Foreclosures, pre-foreclosures, short sales are in evidence on the North Fork of Long Island. A quick explanation:

A pre-foreclosure arrives in the form of a lis pendens - the homeowner is notified that the bank will be claiming the property from the mortgagee. It is essentially notification to the homeowner of a pending lawsuit.

As payments are skipped out of necessity (with a market that has properties available for less than the LOAN BALANCE for these unfortunate sellers) the “payoff” increases by the amount in arrears, with additional penalties. An individual desiring a sale is finding that, month after month, the payoff amount is getting increasingly (and alarmingly) out of line with the current value of the home.

If you are in a situation that requires input, a good site to check out is: www.banking.state.ny.us.com. Most of your questions can be answered here, and they indicate that potential assistance is available. Another site is offered by the Community Development Corporation of Long Island. They can be reached at: 888-995-HOPE.

Many homeowners have been stunned with the speed at which mortgage payments have accelerated, and are discovering that the adjusted payments are simply too high. A recent meeting held with one such homeowner was an example of a nightmare: a retiree, this homeowner refinanced two years ago. While the payments remained in the 2000./month range for a time, the increases came fast and furious- her loan is now adjusted every three months. It is hovering in the 4,100. month range.
Working with this type of listing is a true challenge- if at all possible, homeowners need to contact not only their mortgage company, but any federal entities (local) that are paying attention to this issue for additional assistance. The initial attorney fee quoted to this homeowner was $4000. with $2000. up front- there is help available for those unable to afford this cost.

Foreclosure verbiage to be aware of:

Arrears: being overdue in an installment payment

Beneficiary: An individual entitled to receive assets or money from a trust or an estate. A lender is a beneficiary with a deed of trust or note as security for a loan.

Bid: An offer by an interested party requiring payment of a designated price for a property which is about to be sold at auction

Chattel: Personal property, such as household items

Closing costs: Expenses extraneous to the sale of real estate, which includes loan, title, appraisal, closing fees.

Deed in Lieu of Foreclosure: With lender approval, the owner deeds the property to the lender in order to avoid foreclosure. Lenders are inclined to avoid a “deed in lieu of” without clear title, and the owners offer an affidavit that provides that they are acting of their own volition.

Default: Failure of borrower to make payments in full or as stipulated by the lender.

Demand Letter: This is also referred to as a “letter of intent to foreclose”, or a “breach letter”.

Equity Right of Redemption: the right to avoid foreclosure by removing all encumbrances (interest, fees, debts outside of the current loan amount).

HUD1 statement: A form typically provided by the bank that includes the costs of purchasing the home.

Instrument: any written legal document.

Loss Mitigation Department: at banks, the department that assists homeowners in avoiding foreclosure.

Notice of Default: a notice sent by the bank to the borrowers with the purpose of curing the loan/late payment.

Notice of Rescission: a notice sent by the bank to the borrowers when the deficiency is “cured” and current.

Short sale: the sale of a property that is either below, or at market level that is LOWER than the loan balance.

IF YOU ARE FINDING YOURSELF IN THIS SITUATION, CALL US FOR ADDITIONAL RESOURCES:

Options Realty

621-727-2227

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Are New Yorkers Getting Robbed at the Closing Table?

October 20th, 2007 category: Real Estate News2 Comments »

There was a recent publication, offered to New York Realtors, by the New York State Association of Realtors (NYSAR). There is encouragement provided via a caveat at the top, “This update on government and politics in New York State is a weekly publication from the NYSAR’S Government Affairs Department. REALTOR members and staff are urged to share this information as appropriate and reprint it in membership publications.”

GOOD. It would appear that the NYSAR is acknowledging, via this email, that closing costs for New York home buyers and sellers (at twice the national average, as I am understanding the figures below) is TOO MUCH.

THE REPORT INCLUDES THE FOLLOWING: “New Yorkers still paying highest closing costs in the nation- for the third year in a row, Bankrate.com ranked New York’s closing costs as the most expensive in the nation. On average, NewYorkers pay $3830. to close a $200,000. mortgage; more than $1,000. more than the national average of $2736. The addition of local and state real-estate-related taxes hikes the national average final closing cost in New York to $7194. New Yorkers pay nearly double the national average of $3681. and 60 percent more than the least expensive state, Indiana, where residents pay a total of $2339. for the same mortgage. New York’s origination fees, title insurance, attorney costs and of course high taxes contribute to the hefty final price tag on a home purchase in the Empire State.

What does this have to do with YOU? This acknowledgement of absurd New York closing costs comes on the heels of a Department of Justice and Federal Trade Commission questions about fair trade in the CLOSING COST VENUE. New York is only one of a very few states that requires the fee of an attorney to perform the contract and subsequent addenda review. Most states permit the practice of real estate without this cost.

Is ATTORNEY REVIEW supported by the real estate community? GRUDGINGLY, and here’s why: attorneys are simply the go-to in New York out of habit- nothing else. GET MY ATTORNEY. Guess what? It’s an incurred expense (as a built-in) that is subject to the discretion of the buyer/seller. Why are most states able to conduct a real estate transaction in the absence of the attorney contingent? Probably because…A HOUSE IS A HOUSE. Rocket science is not required.
New York is increasing the required hours for licensees. While this might not provide the comfort of an outside opinion, it is a step forward for real estate agents in New York. Bottom line: you can pick a bad lawyer, and you can pick a bad real estate agent.

The best option is to be VERY CLEAR, with your own investigation, as to the value of the home that you’d like to buy, or sell. A great real estate agent will provide reality. While a lawyer (who never sees the home) will offer annoyances (this is not legal advice) weighing out the two may be an option that you have as a buyer or seller of real estate in New York. We hope so.

Home buyers, and sellers in the North Fork of Long Island (Riverhead, Calverton, Baiting Hollow, Jamesport, Laurel, Mattituck, Cutchogue, Peconic, Southold, New York)- we’d love to help. Call or email.

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One Open House in 16 Years

October 19th, 2007 category: Real Estate News1 Comment »

 

A good article came my way this week via Realtor Magazine that discusses the topic of open houses. Are Open Houses an antiquated form of advertising if 80% of home buyers use the Web to search for properties? Here’s the link.

Is the Open House What It Used to Be?

While 80 percent of home buyers used the Web to search for properties, only 42 percent visited open houses last year, reports the NATIONAL ASSOCIATION OF REALTORS®. But does that mean open houses are a waste of time? Depends on whom you ask.

Broker John Hodnett, of Lilia Delman Real Estate in Coastal Rhode Island, has only held one open house in his 16-year real estate career. He says serious buyers tend to view properties online and make appointments to tour the specific properties that truly spark their interest.

On the other hand, open houses often are frequented by people who simply want to see what a home looks like with no plans of making a purchase.

However, Hodnett notes that some sellers demand open houses because they want to know their agent is working hard to sell the home.

Lawrence Yun, Vice President, NAR Research made some thought out observances of the current real estate market. Yun sees an improved market for 2008. Let’s hope his crystal ball is correct. Remember to keep those prices in line out there, that’s one way to reduce this “very high” inventory…

Taking Inventory

Though the credit problems appear to be over, there is an overhang that looms large that could hamper the recovery of the housing market. Inventory is high – very high. There were a record 4.58 million homes on the market at the end of August. That’s a 10 month supply. But the number of total listings appear to be topping out. A significant portion of the existing supply of homes is old inventory that has been sitting for several months due to lower sales activity.

Read the rest of this article

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Real Estate Market Report for Baiting Hollow

October 19th, 2007 category: Real Estate NewsNo Comments »

Market update: Zip Code 11933, Calverton/Baiting Hollow, New York:

Well, activity in the area is reflective of current market issues. No question- it’s taking longer to sell properties on the North Fork. While pricing with respect to levels of a few years ago does not differ significantly, the number of sold properties does.

Below, statistics on current inventory/solds in 11933 so far in 2007:*

It becomes apparent, when viewing the numbers, that buyers that are willing or able to purchase in the current market are reluctant to do so. A combination of loans that are more difficult to qualify for, in addition to a significant increase in home prices over the last few years is resulting in reluctance. Many are waiting to see what will “happen” with pricing. The media has inundated the real estate venue with predictions that are negative. Until there is clarification, buyers without the need to move appear to be holding off.

If your home is on the market right now, take solace. Many sellers, and Realtors, are befuddled. With buyers getting input from many sources that discourage a purchase, time is on their side. For now.

Some buyers, however, are ready to move forward. If your house leaves a strong impression of clean, attractive, move in ready and priced “right”, your odds are greatly increased. Input from home stagers, while often jarring (for me, anyway) provide insight. Comparable properties provide insight. Call us if you’d like further information on the property condition of those that sold.

*information, while obtained from the mlsli, is deemed reliable but in not guaranteed as such.

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Where Do The Children Play?

October 17th, 2007 category: Real Estate NewsNo Comments »

The Cat Stevens tune has been in my head since reading the Newsday article that can be found here.

What of the numerous young people finding the cost of living on Long Island impossible?

There seem to be two colliding trains of thought: the younger contingent is leaving due to expenses and a lack of affordable housing. Our island is a pressure cooker of expenses, with no end in sight. Despite a drop in home pricing, for many of those freshly out of college, renting something commensurate with their brand new salaries is daunting, and a mortgage- out of the question. So, where do our kids go, without a proactive effort to offer alternatives? To keep the kids here, we need to offer help. Fast.

The younger contingent is leaving due to expenses and a lack of affordable housing. That’s life. It’s expensive everywhere; kids in large numbers are returning home until solid footing is achieved (scary thought) and when they CAN afford it, they can earn like their predecessors and enjoy the privilege of remaining in the area.

As mentioned in the above Newsday link, a “mass exodus” could potentially have far reaching effects, as the availability of “starting salaried” employees seek to live where eating out is possible for them without bouncing a check. Or debit. For those whose families have enjoyed the area for years, accepting this reality can be tough. For people interested in this dilemma, a website www.stayonlongisland.com is a grassroots effort by young people to generate support. They are kids who would clearly like to stay; perhaps their mission will provide success. We hope so.

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Investment Properties- North Fork, Long Island

October 14th, 2007 category: SellersNo Comments »

With the real estate sales venue holding properties for a longer period of time than they might have several months ago, are there properties on the North Fork that offer investment potential?

There is no question, as we speak with buyers and sellers, that this “niche” is looking at the market. Some sellers owe more than the property is worth; a short sale might be in order (call us). Some sellers, recognizing that the market as depicted by the news might prompt investor “types”, are looking at less fix up, and more…reduction.

The result of the market changes is that some North Fork, Long Island sellers are deciding to put their investment back into their own pocket, and seeking renters until the market responds to their asking price.

Other sellers, if they are motivated, are working with the market changes (however large or small) and making certain, for a certain sale, that their homes are the BEST PRICED, and in the best condition. The only certainty.

What about those that, for financial reasons, are unable to rent (rent is less than the already behind payment) and market conditions indicate certain failure due to a loan amount that exceeds value?

INVESTORS ARE SEEKING PROPERTY. Here’s what’s ideal: a property, viewed as a market value parcel. Upon examination, items need to be FIXED. Double the amount of the fix. Does this provide a reasonable return on investment (because the home, after all, has become a house that needs to sell)? Offer THAT amount (double the fix) below “market value”.

If buyers are looking for their HOME, all homes viewed need to be “home” ready. HOME BUYERS differ drastically from INVESTORS. If you don’t update, we won’t be able to compete to your advantage with many homes that are “HOME” ready. Don’t want to spend $4000. (example) to get it competitive? Reduce the asking price by $8,000. below market- INVESTORS… Is your kitchen outdated, without the benefit of historical charm? Reduce. Baths, with the same historical charm caveat? Reduce. You are marketing to investors. Is your home completely updated, at market value? That’s a certainty.

MANY PEOPLE HAVE UPDATED THEIR ‘60′S THROUGH 90′S HOMES. If you haven’t, be prepared to compromise on your price if you want your house SOLD.

Some homeowners are not ready for a realistic market analysis. For those that are, call us. If you NEED to sell your home, we’re ready. If you want to get a true market analysis, call us. No baloney- in a tougher market than recent years, you need to know whether to hold or sell.

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The Department of Justice, The Anti-Trust Division And YOU…

October 11th, 2007 category: Real Estate NewsNo Comments »

New York: the Department of Justice, along with the Federal Trade Commission, has created a website designed to let consumers know of fair trade practices in real estate. With respect to New York, there are some significant points made that could directly impact your choices.

Understand that these entities have an ongoing priority to inform consumers. Real estate has been a sticking point, as the DOJ and FTC wage their own “war” with the National Association of Realtors. In layman’s terms, what these entities seek is to ensure FAIR TRADE in the real estate market for the consumer.

Concerns about an “understood” commission within the real estate community, and the attempted “shut out” of competing brokers offering flat fee or discount services by refusing them participation in the MLS (the real estate go-to) is an ongoing battle. The result of any “blacklisting”, either by refusing to permit discount companies the opportunity to VIEW properties listed in the MLS, or the attempt by any group of real estate companies to maintain a standard of commission creates an illegal act punishable with huge fines to the offenders. This report is offered to the consumer at:http://usdoj.gov/atr/public/real_estate/index.htm

Rebates for New Yorkers are clarified in this report, as are potential changes coming. If you are thinking of buying or selling a home in New York State, Long Island, and specifically the North Fork of Long Island, know that our company fully supports and encourages consumers to view this report.

Additionally, if you experience any practices that limit competition in a way that is to the detriment of the consumer, there is a link to the Department of Justice address- simply email your complaint.

Another interesting aspect to this report is the method of restricting real estate agents from “practicing law” as it pertains to a standard real estate transaction, and requiring the presence of an attorney, unlike most areas in the United States. The concern is that consumers are paying more for the transaction with the presence of both entities. Consumers in other states are not required to have an attorney involved, nor are real estate agents limited from performing contractual duties, to include addendums, amendments to the contract, etc. While attorneys are recommended for any legal aspects outside of a standard purchase agreement (which includes changes thereto on occasion) in other areas, the additional CHARGE of having an attorney REQUIRED is being questioned as an expense that should be chosen, not forced.

While we are pleased that a report of this magnitude is available, it is not of value unless read by consumers. Let us know what you think.

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Country Trails - New Homes in Baiting Hollow - Riverhead

October 10th, 2007 category: BuyersNo Comments »

Country Trails New Construction Homes at Baiting Hollow in Riverhead

We had the chance to visit Country Trails not too long ago. We are always interested in the new construction arena.

One particular plan offering that Country Trails offers is the Christa. The first floor layout provides the possibility for an elegant First Floor Master Bedroom Suite.

Let Options Realty in Riverhead service all your North Fork new construction interests. If the idea of a new larger home sounds interesting, gives us a call. We’d been more than happy to introduce you to some great new homes in the Riverhead Central School District. Country Trails is also very close in proximity to McGann - Mercy High School.

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Buyer Agency on the North Fork of Long Island

October 6th, 2007 category: BuyersNo Comments »

To New York Realtors, I have a question:

If you are representing the buyer as a buyer broker, who writes the contract?

Buyer agency switches the FIDUCIARY incumbent upon the salesperson (Realtor or broker) from the seller to the buyer. It becomes the responsibility of the buyers agent to make certain that the transaction occurs with the best interest of the buyer in mind. From my standpoint, this would absolutely require that: a. the Realtor writes the contract (yes, you CAN do it with attorney review) or b. the BUYERS attorney performs the contract.

With a belief (please, correct me if I’m missing something- I’m all ears) that buyer agency will require a change in standard practices, how is it being handled out there in the trenches, to those of you that represent buyers?

For those outside of NY, know that the process in NY (at least in my area, and in Long Island)is as follows: the buyer views the property. The buyers agent writes what is called a “binder”. The binder, with terms that the buyer is in agreement with, is submitted to the listing agent. If accepted by the seller, the binder then goes to the seller’s attorney to be written up.

This is done AFTER the inspection- if the inspection doesn’t work out, the buyer is simply out the money and…the house is available to other lookers throughout the process of inspections. This is not a responsible move if fiduciary on the part of the buyers agent is understood- at least, not for my buyers.

A reminder about fiduciary; the buyers interests are your responsibility.
This current process for buyers is uncomfortable, to say the least. Shouldn’t the buyers attorney (in the spirit of representing their best interest, along with our own responsibility) be the instigator of that which the buyer understands to be the offer submitted? Having the sellers attorney write up the offer is rather like having the same divorce attorney- noooooot good.

Just curious about what position may be present in light of the representation. I’ve met many great Realtors out here that just don’t quite have a grip on the process that works best for the buyer. Then again, it could be that I’m operating from a position that is equally confounded. Until clarity is provided, this renegade will simply follow what the majority of the nation offers to both buyer and seller every day- an understanding of fiduciary.

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