North Fork, Long Island, NY Real Estate Blog OptionsRealty.com » 2008

Archive for February, 2008

Don’t Come to ME for a Home Equity Line of Credit

February 26th, 2008 category: East End LI Foreclosures, Real Estate NewsNo Comments »

Much has been written about the depreciating value of homes, and the subsequent difficulties facing borrowers when they attempt a home purchase- tighter lending requirements, higher costs associated with the loans, and appraisal issues have created a complicated buying scenario (not to mention additional gray hairs for sellers).

On the heels of change comes another shocker for some: Home Equity Lines of Credit (HELOC).

As shared here, large banks are pulling the plug on some existing HELOCs, wreaking havoc for homeowners who have decided to utilize what remains of their equity in order to finance some of life’s events (college and home improvements are among common uses for HELOC’s).

As detailed in the link provided above, major players want “out” of the line of credit game, indicating awareness that our downward plunge has yet to hit bottom.

What is most alarming is that credit-worthy recipients are as likely to be targeted as those that have less than stellar credit- suddenly, “credit worthy” is becoming increasingly difficult to define.

Interesting that banks, on the heels of their own loose lending, are now creating a disadvantage for those homeowners that, for all intents and purposes, have demonstrated a willingness to stay above the fray by maintaining strong credit scores.

If you are a homeowner who has decided to stay put and either fix up your property, or utilize remaining equity for life changes, the suggestion in the article appears to be do it now…or not in the near future.

It would appear that banks are finished dealing with the mess that was created out of their own lending practices- perhaps draining 401k’s is better for the consumer (???).

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Sign, Sign, Everywhere a Sign (at least in Southold)

February 25th, 2008 category: Real Estate News, Southold Real EstateNo Comments »

I wondered when Southold residents would complain- if I’d had my druthers, it would have been sooner than later. As a real estate company, however, complaining about one’s peers is limited (by us) only to issues of ethics with respect to buyers/sellers.

Increased signage doesn’t fall into this category, because it is to both the benefit of buyers and sellers to direct traffic to a home for sale.

We just felt (and feel) that increased signage is ugly for the community, so chose not to engage in a practice that seemed to be growing.

Southold town agrees: NO MORE REAL ESTATE SIGNS OUTSIDE OF THE FOR SALE PROPERTY ITSELF.

No more huge, staked full sized sign pointing to another, which leads to the one that sits patiently in front of the home for sale. What’s next- a billboard at every corner?

While our area is often difficult to navigate, the advent of tools to assist both prospective buyers, and the real estate agents that service them is available (Garmin, anyone?).

Utilizing a listing to promote a company logo is perfect, just as it was, in front of the house only.

Local companies decided to take it a step beyond an unobtrusive (yet illegal, per Southold town codes) little arrow directional, offered to spike interest- yet somehow, not offensive.

The town appeared to agree to ignore- as did the residents (if the historical little directional is any indication- they’ve been around for a while).

Town of Southold to Enforce Sign Laws

The Town of Southold has contacted LIBOR and stated that many violations of Sign Code that involve real estate signage, have been observed at various locations throughout the Town.

By far, the most common complaint involves off-premise signage. Many “off-premise signs” have been noted. For Sale signs must be on the property being sold. Signs placed at intersections pointing to a property “down the street”, as well as signs placed within the public right of way, represent a violation.

The regulations state;

§280-85 (I)

Real estate signs. One (1) sign shall be allowed to advertise the sale or lease of real property. The sign may be either single- or double-faced and not larger than six (6) square feet in size. The sign shall be located at least fifteen (15) feet from the public right-of-way. All real estate signs must be removed immediately upon closing on the lease or sale. This sign may be allowed in any zone.

§280-83

Signs noting that a property has been sold are prohibited. Off-premise signs are prohibited.

Please take the steps necessary to inform your employees at all of your offices of the law and immediately remove all signs in violation. Your cooperation in this voluntary enforcement effort is requested. Should voluntary compliance fail, the Town will take the steps necessary to enforce the Code.

-L.I.B.O.R. on-line news announcement to all Long Island MLS Members 2/24/08

The growing trend has been to place a full sized sign on the closest main road possible, in order to advertise both the listing, and the company. Perfect idea, provided all permits are in place for a potentially long term sign. Good for you, Southold.

The larger picture is that people are purchasing in a community, and presentation of that community creates a desire to live here.

Buyers will find available properties, and they have access to many means available without sullying the landscape that is the North Fork of Long Island.

If you are interested in buying/selling a home on the North Fork of Long Island, we’d love to help you locate a property- don’t worry, we have a Garmin.

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Retirement/Vacation Homes for Sale on the North Fork of Long Island

February 21st, 2008 category: Real Estate News4 Comments »

Condominiums on the North Fork of Long Island are having a nice start for sales in February, 2008. While the clear “front runner” is a community in Southold, New York (see below for Founders Village info) the contracts written between 02/01/08 and 02/20/2008 indicate that interest in retirement/vacation properties on the North Fork of Long Island, New York may well pick up steam in 2008.*

SALES OF CONDOS ON THE NORTH FORK OF LONG ISLAND BETWEEN 02/01/2008 AND 02/20/2008:

FOUNDERS VILLAGE, SOUTHOLD, NEW YORK: 3; CURRENTLY FOR SALE: 0

THE BLUFFS, BAITING HOLLOW, NEW YORK: 1; CURRENTLY FOR SALE: 2

THE KNOLLS, BAITING HOLLOW, NEW YORK: 1; CURRENTLY FOR SALE: 5

WILLOW POND, RIVERHEAD, NEW YORK: 1; CURRENTLY FOR SALE: 10

ADDITIONAL COMMUNITIES WITH PROPERTIES AVAILABLE:

Silver Village, Aquebogue, New York: currently for sale: 2

Foxwood Village*, Calverton, New York: currently for sale: 13

Windcrest East, Calverton, New York: currently for sale: 2

Cleaves Point, East Marion, New York: currently for sale: 1

Maidstone Landing, Jamesport, New York: currently for sale: 6

Saddle Lakes, Riverhead, New York: currently for sale: 2

Stoneleigh Woods, Riverhead, New York: currently for sale: 2

Mill Pond, Riverhead, New York: currently for sale: 13

Sunken Ponds, Riverhead, New York: currently for sale: 6

Some of the above communities cater to the 55 and better crowd, some have tennis/clubhouse/pool, and all are located on the North Fork of Long Island, from Riverhead Town to Southold Town in Suffolk County, New York.

Contact Options Realty to view available condominiums that might fit your needs. We will provide you with a list of all sold properties, as well as available homes. Your North Fork of Long Island summer retreat, or full time home, awaits!

laurie@optionsrealty.com to list your home- we have buyers looking;

stark@optionsrealty.com to have your own “buyer’s agent”, representing your interests only;

mark@optionsrealty.com to view additional properties, to list (seller agency) or purchase (buyer agency)opportunities with both condominiums, and mobile home opportunities in Riverhead, NY.

WE LOOK FORWARD TO SERVING YOU!

*all statistics obtained from MLSli; accuracy not guaranteed.

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A Look at Sold Homes in Southold

February 18th, 2008 category: Real Estate News, Southold Real EstateNo Comments »

What does a home, available for sale from $345k to $499k look like in Southold, New York?

What does a SOLD home, priced from $352k to $499k look like?

Information gathered from MLSli (Multiple Listing Service of Long Island) provides information, which is entered into the system by third parties (real estate agents).*

A HOUSE ON THE MARKET PRICED BETWEEN 345K AND 499K IN SOUTHOLD, NEW YORK AS OF FEBRUARY 17, 2008 HAS THE FOLLOWING CHARACTERISTICS (16 available properties in this price range):*
Square footage: 1377* Basement: .76 or, three quarter basement. (Slab=0; crawl=.25;part=.50; full =1 point. Total divided by homes on the market). Style: Ranch: 11; 2 story (to include cape, colonial, etc): 6.
Bedrooms: 3
Garage: 1.75
Bath: 1.87

A SOLD HOUSE IN SOUTHOLD, NEW YORK, BETWEEN THE DATES OF 06/01/2007 THROUGH -2/17/2008 priced from 345K-499K HAS THE FOLLOWING CHARACTERISTICS:
Square footage: 1423*
Basement: .82
Style: ranch: 14 (to include “raised”, “expanded”, and “Hi” ranches); 2 story (see above): 5
Garage: 1.36
Bedrooms: 3
Bath: 1.76

These figures are rudimentary. Not taken into account is location (priceless?) age, or condition. Interestingly, there are available what appear to be very nice buys- one comes to mind that’s a fixer upper with water view.

There are many elements lacking, when taking 16 (on the market) houses, vs. 19 sold houses and developing a model of a good opportunity. It is, however, a “feasibility” study of sorts, providing facts to offset decisions. The right combination of expectation and offer for sale is important right now. While the buyer pool has slowed, it hasn’t stopped. People want to buy a home that is MARKET VALUE if in great shape, and UNDER MARKET if it needs work. Both terms are a moving target at the moment.

*the numbers were skewed by the input provided- for example, one sold property indicated over 14000 s.f.- clearly incorrect. Houses whose #’s were clearly off were eliminated in that category, with the remaining properties divided.

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Dog Days on the North Fork of Long Island, New York

February 16th, 2008 category: Southold Real EstateNo Comments »

After several days of inclement weather here on the North Fork of Long Island, it was with relief that the sun offered an opportunity to once again appreciate our beautiful beaches.

Winter weather notwithstanding, on days in which the sun permits a walk on the beach, I’m reminded again of the magic of our area.

The beach pictured is Cedar Beach, located in Southold, New York. While we enjoy evening strolls in warm weather, yesterday provided an opportunity to bring our bulldog, Oliver, to his favorite place. Keeping him out of the water was a challenge, but his good behavior was rewarded with the treasure that he located- a tennis ball.

If you’re interested in living on the North Fork of Long Island, Oliver highly recommends it- contact us for homes that are for sale in the Cedar Beach area of Southold, New York.

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The Appraisal Isn’t MY Fault…Who Takes the Hit in New York?

February 13th, 2008 category: East End LI Foreclosures, Real Estate News2 Comments »

Just when things seem to be settling into an uneasy downswing, with buyers and sellers viewing the market with a studied eye, another kink in the system awaits.

You’ve received the contract on your house; you’re happy, your buyer is happy. As a seller, you priced it correctly; as a buyer, the house has mentally become your “home”. All is well, until…the appraisal comes back. It can happen to anyone.

In order to prevent lending money to home buyers that begin home-ownership in a declining market, Fannie Mae and Freddie Mac have designated Nassau and Suffolk counties as “declining markets.” In a nutshell, this designation allows for room in the appraisal to lower the value in order to protect the lender from an overinflated loan instrument.

In the event that a property value that comes in below the purchase price (the math on this is very gray, without specifics) the buyer/seller will have to negotiate for this possibility. While the sales price might fall right in line with previous comparables, appraisers now have the responsibility of determining the short term continued fall of pricing- and the commensurate house “value” that results from market conditions months from now.

SELLERS: Be prepared to re-negotiate the purchase price (which will impact your net);

BUYERS: Be prepared, in the absence of sellers reducing the price to the appraised value, to come up with additional funds to close, or be prepared to walk from the purchase.

With respect to contracts, your attorney should address this, either by providing an “out” to the buyer whose property of interest did not appraise; offering language that spells out the contributions (should the appraisal come in low) by both parties; or by making known to the buyer that the seller will not be reducing the price, and as a result, the buyer may need additional funds to close (to make up the price differential).

In order to disclose this issue, it is incumbent upon real estate agents to forewarn (and forearm) both buyers and sellers by determining in advance who will take the “hit”, should it present itself. While a function of this odd market, it’s another relatively new development. Failing to address it prior to an offer can result in disappointment for both buyers and sellers, should a low appraisal come as a shock without forethought.

For further information about the “declining market” status of Nassau and Suffolk counties in New York, contact your lender for further explanation- it’s important to both sides. We’re happy to provide lenders that are able to discuss this unusual measure, and will offer all that we know. Be prepared for a bump, and solve it before your home gets an offer by determining what, as a seller, you are willing to work with.

As a buyer, the same theory applies- don’t have your purchase fall apart due to an issue that is present, but may not present itself until after you’ve fallen in love with the house. In the absence of a seller willing to negotiate, your key to the house may cost a bit more out of pocket.

If you are considering buying or selling a home on the North Fork of Long Island, New York, we’re happy to answer any questions that you may have.

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Zero Tolerance for Downtown Riverhead

February 10th, 2008 category: Downtown RiverheadNo Comments »

At Options Realty we are glad to see that Riverhead’s two newest additions to the Town Board, Tim Buckley and Jim Wooten, have started the new administration in Riverhead Town Hall with local business success as a priority. Now let’s hope that the rest of the Town Board has the required fortitude to follow their comments of support with some action. Quickly.

At least these two members of the Riverhead Town Board understand the urgency of the problem with derelicts and deadbeats in downtown Riverhead. Solutions are available. Having the spine to back them up and maintain optimism and vision for a revitalized Downtown will hopefully prevail.

Tim Gannon had an article in The News Review on Thursday of this week entitled ‘Zero Tolerance’ Zone.

Mr. Buckley is proposing that the zero tolerance zone for downtown stretch from Griffing Avenue on the west to Ostrander Avenue on the east, with the zone going about a block to the north of Main Street. There would be signs clearly marking the boundaries of the zone, he said.

“Zero tolerance is a full-scale strategic attack on all crime and disorder in Riverhead, Main Street in particular,” Mr. Buckley said. “It focuses on the enforcement of ‘quality of life’ offenses such as drinking in public, loud radios, urinating in public and disorderly conduct. By quickly addressing these problems,Riverhead will send the message that more serious crime will not be tolerated.”

Read the rest of the article ‘Zero Tolerance’ Zone

Sometimes there is a little truth in pessimism. A comment on a post called Get Real here vocalizes some of the local web forums frustration of the deplorable conditions in Downtown Riverhead.

Downtown is already a “zero tolerance” zone. The town board has zero tolerance for a healthy business environment!

Options Realty has to say to this author (Life) that we think that this new administration In Riverhead Town Hall has some new blood that will keep the rest of the member’s feet to the fire on this one. Buckley and Wooten are fresh and ready to bring some good insight on how to find solutions to the dismal conditions on Main St. This proposal is just one bullet in the guns of these public servant’s arsenal to redevelop DowntownRiverhead . As evidenced in Jim Wooten’s and Tim Buckley’s campaign this past fall, both are following through on their campaign points. Let’s just hope that no one needs to hold Wooten and Buckley’s feet to any sparks, much less fire.

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North Fork -Long Island Real Estate Market Update

February 5th, 2008 category: Buyers, Real Estate News, SellersNo Comments »

What has gone under contract so far in 2008 on the North Fork of Long Island?

The following report, using figures from mlsli, indicates properties that (while some are not closed) have enjoyed a contract in 2008. These transactions occurred from Jan.01, 2008- February 5, 2008.

The towns included in the search are: Aquebogue, Baiting Hollow, Calverton, East Marion, Jamesport, Laurel, Mattituck, Riverhead, and Southold, New York. Included in the search, but showing no contracts, are Greenport and Orient/Orient Point, New York. *Always check figures with MLSLI for the most up-to-date numbers.

Aquebogue: 2 U/C. One was priced at $339k, the other at $375k. The days on market average is:231.5
Baiting Hollow: 1 U/C. This home was priced at $599,750. The days on market average : 59
Calverton: 2 U/C. One was priced at $369k, the other at $649,999. The days on market average:168.5
East Marion: 1 U/C. This home was priced at $865k. The days on market average:92
Jamesport: 3 U/C. One was priced at $479,846, one at $544k, one at 599k. The days on market average:183
Laurel: 1 U/C. This home was priced at $469k. Days on market was:259
Mattituck: 3 U/C. One was priced at $470k, one at $525k, one at $799k. Days on market average:303. This figure is skewed by a home that spent 772 DOM.
Riverhead (excluding mobile home sales): 8 U/C. Pricing: $150k; 225k; 290k; 428k; 450k; 469k; 599k; 649k. Days on market average: 196.
Southold: 2 U/C. One was priced at $525k; the other at $699k. Average days on the market:81

This snapshot provides activity (buyers) making their presence known (performing a contract) from Jan.01, 2008 to Feb.7, 2008.

It does NOT include buyers that may have entered into a contract prior to Jan 01.

The following is a report on available homes on the North Fork, Long Island.

Aquebogue (excluding mobile homes/seasonal cottages): 60
Baiting Hollow (excluding mobile homes/seasonal cottages): 50
Calverton (excluding mobile homes/seasonal cottages):19
Cutchogue: 46
East Marion: 25
Greenport: 35
Jamesport: 27
Laurel: 17
Mattituck: 47
Nassau Point: 3 (likely located under Cutchogue)
Orient: 16
Riverhead (excluding mobile homes/seasonal cottages): 145
South Jamesport: 8
Southold: 104

TOTAL PROPERTIES AVAILABLE: 487
TOTAL HOMES U/C IN THE FIRST MONTH OF 2008: 23

To sellers of homes on the North Fork of Long Island: competition is accumulating. While selling your home is always a possibility, it is critical (in a market that shows no indication of immediate improvement) to determine whether the need to sell is paramount. If not, based on reports of a challenging year, it might be better to hold off, and sell when things begin to improve. Patrick McGeehan at The NY Times, recently quoted Jeffrey Otteau about this in his article entitled Home Prices Start to Dip, Recalling ’90s Slump.

Homeowners who are waiting for the market to rebound to sell their houses will regret that decision, Mr. Otteau said.

“For those sellers who’ve decided to wait until spring to get what they think their house is worth, the spring they’re waiting for is a very long time off,” Mr. Otteau said. “Unless you have the ability to wait this out for five years, waiting is a losing game.”

While it is very early in the year, we are in a “buyers market”- and as those buyers consider properties, pricing appropriately is paramount to success. Choices are plentiful, but the reason behind the choice is clear: we’ve lost many of our “first time” buyers. Lenders have tightened the grip, preventing many from purchasing. This impairs the “move up” buyer- and so on. We haven’t seen the impact of foreclosed properties yet- while they are present (often the result of those that purchased in the last few years, and are now upside-down) the impact has not been fully recognized in this area- YET.

There are occasions in real estate that make it sensible to “test the waters”. In our opinion, we are not experiencing one of those times- to the contrary, less is (for the market as a whole) a better alternative- properties that are languishing with reluctant sellers are impacting the area negatively. Buyers are making their ability/interest clear: if it’s not priced appropriately to the current buying climate, it isn’t going to sell.

If you NEED to sell your home, get a current, accurate market analysis. Don’t gamble in a downward market by shutting out buyers that may have an interest, but are waiting. Accommodate buyers by pricing correctly.

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Buyer Agency on The North Fork of Long Island

February 1st, 2008 category: Buyers, Real Estate PhilosophyNo Comments »

BUYER AGENCY ON THE NORTH FORK OF LONG ISLAND: DON’T LEAVE HOME WITHOUT IT!

We have posted for your review a disclosure that you will be required to acknowledge when you choose to work with a real estate agent/Realtor in the state of New York.� Please see previous blog.

At Options Realty, we offer as company policy two choices:� have us represent you as a buyer, or have us represent you as a seller, or in the event of our own internal listing, on behalf of the seller. If you care for a listing that we offer, we will offer only SELLER AGENCY representation- meaning that you’d be wise to obtain your own buyer broker to look out for your best interests. Dual agency, to us, is a very bad plan, and it undermines the integrity that we’d like to see all parties exit the transaction with, including ourselves. Many local companies do not feel as we do; that choice belongs to them. We operate on our own level of integrity, not local practice.

FREQUENTLY ASKED QUESTIONS ABOUT BUYER REPRESENTATION:

“Who pays the commission?” is a common question. Know that, if a home is presented in the MLSLI (Multi List of Long Island) the seller has indicated payment to the cooperating broker. It’s in the PRICE of the home. So- the reality is, as a buyer offering full price for a house, you pay it (from our perspective), but the listing agent compensates Options Realty OUT of the advertised fee. Offering less than full price does not negate the agreement of the seller- it simply means that they will net less due to a lower accepted offer.

“Do I have to sign a buyer agency contract in order to be represented?”- the answer is NO. The contract, if you sign it, stipulates that your will be responsible for “x” amount for the payment to your buyer agent if they locate a property that works within your parameters. At Options Realty, we choose to represent those that demonstrate a loyalty to us that matches our own loyalty to our buyer. The contract will be offered for your review; if you would prefer not to sign it, we will continue to represent you in any purchase that occurs, assuming that the relationship is working for you.

“Will I get a better price if I just call the person on the sign?” This is dangerous territory for you. What you will be relying on is that the agent on the sign, despite agreeing to represent the seller, will provide you with the “best possible price”- clearly, a HUGE CONFLICT OF INTEREST for both you and the seller. In fact, that person on the sign has likely promised the “best possible price” to the seller- it doesn’t work both ways, because it can’t. A real estate purchase is two sided: thae selling side, and the buying side. Each should have their own representation, with a promise to them alone and separately to provide the integrity needed for each to look out for the best interests of each.

“What do I do if I’ve already contacted the listing agent on the sign?” Not to worry. If you have not presented an offer that has culminated into a signed contract, simply let them know that you will be represented by a buyers agent (keep in mind their fiduciary to the seller at this point- if you encounter a problem with them, ignore it).

“What if the person on the sign tells me that they don’t offer compensation for a buyers agent?” Again, IGNORE IT. It is illegal to deny entry into a property when a buyer is represented. It is considered discriminatory to you, the buyer. While some sellers might offer “0″ to a buyers agent, payment of the fee will be presented in the offer, for the seller to decide with respect to compensation. Sellers in the MLSLI are already offering payment to cooperating brokers; it is highly unlikely that they would decline a contract based on agency representation (they are going to spend the money either way, via their listing agent).

Just as we take the notion of representing you with full fiduciary as a buyer, we also consider fiduciary a non-negotiable aspect of representing the seller. This is why, with our own listings, we encourage you to locate your own representation- and NOT within our own company. The conflict that arises here is obvious- the only way for either sellers or buyers of homes on the North Fork of Long Island to achieve fairness in the transaction, in our opinion, is to have clearly defined lines of representation.

Call us if you are seeking BUYER AGENCY on the North Fork of Long Island. It’s long overdue, and we are certain of the benefits that it will offer you. Our buyer agency is available in Riverhead, Jamesport, East Jamesport, Calverton, Baiting Hollow, Aquebogue, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, and Orient Point, New York.

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