Buying a Home on the East End of Long Island

November 10th, 2008 category: Real Estate News

From the perspective of a real estate company, the events of the last two years have been  a “below the earth” phenomenon.

MOOOORTGAAAAGE MEEEEELTDOOOOOOOWN…

As the train approached, whistles sort of random, it was easy to hope for the best. Anyone paying attention, with much reading and fact in hand, surely saw the potential odds of a wreck both in NYC, and the east end of Long Island- theHamptons and North fork are not immune.

As “location, location” whined from optimists, the global economy countered with a roar.

Now that we’re “in it”, WHAT TO DO?

If you’re considering the prospect of putting your home on the market on the east end of Long Island, but don’t HAVE TO…wait it out. Your threshold, based on varying estimations, should be two years. Then, we’ll see.

If you MUST put your home on the market, and your loan amount is well below what the market will bear, review FACTS regarding recently closed sales, of homes in a like neighborhood, and price accordingly (grateful that, like ourselves, you bought before prices went awry).

If you MUST put your home on the market, and your loan amount is well ABOVE what the market will bear, become educated BEFORE you’ve missed more than a few payments as to what your options are. There are several, with varying ramifications, depending on your bank, loan amount, etc. LOOK INTO YOUR CHOICES, and then decide which course of action to take. It is advisable to accept input from both your real estate agent, and a real estate lawyer at this juncture.

If you are a buyer in this market able to qualify with new and improved ratios, you have the above two sellers seeking to find YOU.

Sellers, you’re seeking a buyer that is in a “buyers market”. Contrary to being vultures on a fence, people capable of restoring the market are (and always have been) the decision makers.

Buyers have gone from being viewed as enabled fools to limited (and cherished) saviors.

Our current mess demonstrates the power of buyer input in spades- without the desire for the buying contingent (having found a conduit requiring a pulse for a house), there would BE NO MESS. The “all you need is a pulse” conduit is gone.

As a qualified buyer, with choices available in reluctance, desperation, or finality (sellers who don’t need to sell; short sale opportunities; bank owned) it’s a great time to look at interest rates and the current economy with an eye toward advantage.

Interest rates are a catalyst; an increase in currently low rates will counter the effect of a great buy, with one notch upward.

Interest rates seem a convenient way to afford salvation for banks- are increases just a matter of time (and timing)?

Banks are threatened; a logical uptick would include rate increases, in this writers opinion.

An example*:

Mortgage amount: $400,000.

Principle and interest payment with a 6.5% 30 year fixed rate: $2528.

Mortgage amount: $400,000.

Principle and interest payment with a 7.5% 30 year fixed rate: $2796.

When rates increase, you’ve just lost a payment advantage (the price may as well have gone up; you’re paying more for the property monthly).

With a buyers agent in your corner on the east end of Long Island, you might find the right deal, right now.

Homes for sale are plentiful on the North fork and in the Hamptons- call or email us for opportunities.

*for example purposes only. No APR is mentioned for simplicity; contact your local mortgage company for all details on a 30 year fixed rate.

This entry was posted on Monday, November 10th, 2008 at 3:30 pm and is filed under Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

Copyright © 2007 North Fork, Long Island, NY Real Estate Blog OptionsRealty.com     Agent Login     Design by Real Estate Tomato     Powered by Tomato Blogs