2009 February | North Fork, Long Island, NY Real Estate Blog OptionsRealty.com

Archive for February, 2009

Hamptons/East End Real Estate Practices

February 26th, 2009 category: Real Estate News4 Comments »

Some time ago, a Hamptons real estate agent accused me of having an “obsessive” nature with regard to unethical practices that run rampant in the Hamptons. Frankly, my awareness of the OREX agenda might have remained “leashed” had we not found ourselves in the mix, via valuations requested by banks for distressed properties.

I love real estate, when done with a consumer focus, and when presented to sellers and buyers with their best interest (as promised in the event of “seller agency” -sellers- and “buyer agency”- buyers via the NYDOS disclosure, a requirement of the state to be presented at first substantive contact) intact.

Imagine that you love tennis, and watching matches- but, you attend the US Open, only to observe that an out of bounds returned ball is called “in” each time, compromising the entire match. Over and over, the game and the fundamentals are compromised.

At the end of the match, the “winner” extols the virtue of fair play, with open mouthed spectators wondering what the hell has happened to their “game”, and how it is that the winner has the audacity to punctuate the win with flat out deception- or simply a delusional approach to a game that compromises all of the elements that make it a joy to observe, or participate in.

If you’ve never bothered to learn fundamental rules of the game and abide by them, you’re not seeing the disparity.

Here is a link to an interesting blog initiated by George Simpson, who has tolerated (with a wicked grin, to his supreme credit) much in the way of personal attack, but continues to move forward in an effort to provide, for the rest of us, a “good game”.

www.eastendlistings.com
Keep it up, George- you have spectators that are applauding you, and booing the efforts of a select group of companies seeking to maintain a control of the Hamptons real estate market using a method (no access to critical buyer/seller listings info without $40k to burn) that is a huge detriment to the sellers, buyers, and agents on Long Island (who pay dues to the NAR and MLSI for the purpose of transparency in real estate). Real estate is a public agenda, not a broker agenda- at least, everywhere, it seems, but the Hamptons (and NYC).

To those Hamptons brokerages and salespeople that understand consumer fiduciary, but find themselves stuck in the Hamptons with an MLS system absent the majority of properties for sale, I feel for you- REALLY. Your business is being undermined by so called “professionals” who never read the play book, yet persist in demonstrating this lack of information at the expense of the real estate community in its entirety- sellers, buyers, real estate agents. That’s changing- it’s just too bad that they didn’t see the absurdity long before consumers did, as has occurred (and been corrected) everywhere else long ago.

TENNIS, ANYONE?

www.eastendlistings.com

To search available homes for sale on the North Fork / East End Long Island or condos on the North Fork of Long Island, click “north fork homes”, enter your area of interest and any parameters, and click “go”- properties for sale include Riverhead, Aquebogue, Baiting Hollow, Calverton, Jamesport, Laurel, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, and Orient Point, NY.

How To Get Bail Out Incentives

February 23rd, 2009 category: East End LI Foreclosures, Real Estate NewsNo Comments »

peconic river The following link was of interest- if you’ve been wondering just what the upcoming programs are and how they affect your situation, the explanation found here might assist.

The post comes from the Wall Street Journal in the Investing section. The Housing Bailout: Do You Qualify? $8,000 home-buying credit? Refi assistance? How to know whether the Obama administration’s initiatives will help you.

Start by contacting your bank, along with your accountant- there may be offerings that will make owning your home less worrisome, and more easily managed.

Pre-Foreclosure Report for the East End of Long Island

February 23rd, 2009 category: East End LI Foreclosures, Real Estate News2 Comments »

The following data was collected from the Real Estate Report.

The information includes all lis pendens filed on the east end of Long Island from January 1, 2009 through February 22, 2009:

AMAGANSETT, NY: 4

BAITING HOLLOW, NY: 2

BRIDGEHAMPTON, NY: 4

GREENPORT, NY: 4

HAMPTON BAYS, NY: 6

JAMESPORT, NY: 2

MATTITUCK, NY: 1

MONTAUK, NY: 3

RIVERHEAD, NY: 5

SOUTHAMPTON, NY: 4

SOUTHOLD, NY: 3

WESTHAMPTON BEACH, NY: 3

CUTCHOGUE, NY: 1

EAST HAMPTON, NY: 7

EASTPORT, NY: 1

EAST QUOGUE, NY: 3

QUOGUE, NY: 2

REMSENBURG, NY: 1

WESTHAMPTON, NY: 7

CALVERTON, NY: 2

EAST MARION, NY: 1

SAG HARBOR, NY: 5

FLANDERS, NY: 2

WADING RIVER, NY: 3

MEDIAN LIS PENDENS MORTGAGE: $530,500*

AVERAGE LIS PENDENS MORTGAGE: $702,339*

*FOR THE WEEK OF FEBRUARY 20

Year-to-date figures indicate trouble brewing in the Hamptons, with those townships exceeding lis pendens over the North fork. East Hampton and Westhampton have the highest figures, followed by Hampton Bays, Sag Harbor, and Riverhead. If you are selling a property in any of these areas, be sure to check with your listing company to make sure that your home is in the MLSLI- full exposure is essential.

A recent Bloomberg article appears here, offering some insight as to trends to expect either as a high end home seller, or buyer.

If you are considering selling your home (and must), call us for a reality check- you’ll need the most current information available.

If you are considering buying a home on the east end of Long Island, click on “north fork homes.” While the majority of Hamptons listings are inexplicably missing from the MLSLI, distressed properties appear to warrant the exposure, so you’ll find some of the more interesting offerings there, with the North fork showing the lions share of available properties.

Hmmm…maybe the mlsli (multi list service of Long Island) offers a better venue for sellers than existing alternatives that are in areas with the highest number of pre-foreclosures…

Something for east end brokers to think about.

Long Island Foreclosure Numbers Fall. Or Do They?

February 19th, 2009 category: East End LI ForeclosuresNo Comments »

I am glad that researchers and reporters are astute enough to realize when and why foreclosure numbers and statistics need explanation.

Ellen Yan posted this a few days ago on Newsday’s Real LI blog.

Foreclosure-related filings on Long Island last month fell by double digits compared to the same time a year ago, according to figures released last week by RealtyTrac, a California-based online market for foreclosures.

Delinquency, auction and other notices dropped 33 percent in Suffolk, 28 percent in Nassau and 36 percent in Queens, while the average drop across the state was 28 percent, the report said.

James J. Saccacio, RealtyTrac’s chief executive officer, said the moratorium on foreclosures by government-controlled, mortgage guarantors Fannie Mae and Freddie Mac helped continue the drop in filings that started late last year, after several states, including New York, passed laws requiring lenders and servicers to give homeowners a 90-day notice before starting the foreclosure process.

Read the entire post over here.

To get more specific local North Fork or East End Real Estate information, fill out the form below with your questions/comments. We’ve been monitoring the area, and have learned how to find properties coming on the market, and available. If you’re looking for a foreclosure on any part of Long Island, we’ll help you find it also.

Deeds in Lieu of…Is that on the Table for Sellers?

February 13th, 2009 category: Real Estate News46 Comments »

Sometimes, the stars align and things work out the way that they are supposed to.

In the current venue, it’s pretty sad that a deed-in-lieu of foreclosure would offer just such an assessment, but in comparison to a short sale or foreclosure…WHAT A DIFFERENCE.

2 long years That a deed in lieu of foreclosure is limited to ONE mortgage (as opposed to the “norm” of a big fat second) creates poor odds, but what a better way for sellers to go, if they are able.

While a deed in lieu of foreclosure can present the possibility of a deficiency in much the same way that a short sale can, it can also be negotiated away, as lawyers in NY often do for sellers of distressed property here.

Here’s the thing that occurs with a deed in lieu of, vs. a short sale: the sellers, under enough stress, are able to WALK AWAY. Close the chapter. Additionally, the bank is able to get the property on the market with an REO company within a few months…as opposed (in NY) to a year or two.

Deed Glove While it feels much like “picking your poison”, checking to see if a lender accepts D’s ILO is a worthwhile endeavor for a home seller. The time in a financial abyss is cut short, and while credit may be wrecked in much the same way that a short sale impacts credit, the ability to GET OUT is compelling.

There is no income for a real estate agent that encourages a deed in lieu of foreclosure. This action does, however, speed up the disposition of the property, getting it out of the landscape more quickly.

At least in NY, where it’s often two years for a property to find it’s way to foreclosure, this is an avenue that should be among the suggestions of Realtors working for distressed sellers.

Inside an REO Conversation

February 12th, 2009 category: East End LI Foreclosures, Real Estate NewsNo Comments »

It was very interesting listening to one side of a bank owned property conversation.

My partner is listing REO’s (bank owned properties). What struck me was the simple reality of the bank owned side:

” My asset manager has told me that if the addendum isn’t received by them today, the contract will be terminated. There is nothing personal- they don’t view transactions on a personal level- it is what it is. It’s not game playing…. if the paperwork isn’t received today, there is no agreement. Just reminding you so that there are no surprises on your end.”

Bank owned properties, while more complicated that a “normal” transaction, operate in the absence of a seller taking things personally. Because pricing generates interest, and assets are costing money, fast turn-arounds are the objective/priority. Unlike a traditional transaction in which personal understanding on the part of the seller/buyer for the buyer/seller in the event of a minor glitch or need for time, banks operate solely from a numbers standpoint, and are not going to offer any level of personal generosity that a traditional sale might.

They’re inundated, and do not have the luxury of time to spend on occurrences outside of their own checklist- hence, deadlines are exactly that.

On the upside, if you are looking at a bank owned home (foreclosed), you’re getting a home at below market value in many cases- the urgency doesn’t permit much in the way of testing the market from a bank perspective.

Asset managers are the conduits, managing the marketing of properties assigned to them by banks, and distributing REO listings to real estate companies. Once an assignment is received by the real estate company, and the house receives offers, the clock starts ticking in earnest on the asset managers desk, andtime frames are provided with an understanding that: here’s this; here’s this; have this back in 48 hours; if it isn’t back…NEXT.

If you and your real estate agent are going to view bank owned properties, readiness is essential. You may find nothing; you may find a real bargain- either way, fitting into the bank-owned real estate experience will eventually become a reality if locating a foreclosure is your plan.

Awareness that you’re dealing with bank machinations in a non personal environment of deadlines will alleviate the shock when “tomorrow by noon” really did mean “tomorrow by noon”- awareness is a good thing.

If you are looking for foreclosed properties on the east end of Long Island, keep reading and sign up today.

To get more specific local North Fork real estate information, fill out the form below with your questions/comments. We’ve been monitoring the area for a few years, and have learned how to find properties coming on the market, and available. If you’re looking for a foreclosure on any part of Long Island, we’ll help you find it also.

Hold…or Fold??

February 7th, 2009 category: Real Estate News, SellersNo Comments »

There is no question but that the real estate market is correcting. While this has occurred in past markets (that “cyclical” thing is the truth) the degree to which values are declining makes this market urgent for sellers, and here’s why:

Banks have stopped up the foreclosure process by providing government mandated time extensions to homeowners. Many of these homeowners, in the absence of an alternative that makes sense, continue to miss payments. Eventually, their homes will hit the market as “bank owned.” As is.

At a price significantly below what would have been an expected (hoped for) price.

This discounted property (there are homes that would fit into the 400k range now, being offered in the low, low 300’s/high 200’s as bank owned) is now a comparable property for the “regular” home seller, either in “available” comps, or if closed, closed comps. They’re part of the real estate landscape, and we are at the beginning of bank owned presence. One look at Florida and California tells the story, with 50% valuation drops.

Whether or not NY will become hard hit is irrelevant if it’s being hit (which it is). If lis pendens are any indication, we just got on the ride; Long Island is already a harbinger of bank properties. The Wall Street news doesn’t bode well for a community with a large second home presence.

With appraisers feeling an industry wide sting for having been a part of a many faceted problem that was inclusive to varying degrees of all real estate participants, any expectation that an appraiser is going to fudge a bit is out of the question. If anything, valuations will likely fall on the other side of a hoped for amount.

The more distressed properties that close, the lower the values go- this includes short sales, which are being attempted in abundance on the east end of Long Island. Once closed, a seller has a new “comp” to contend with.

If you need to sell your home, the advice from this contingent is to get it marketed as soon as possible. Don’t hold off to “fix it up” at this point- and if you are going to make improvements, do it speedily. As distressed properties increase, and those closed figures impact the VALUE of your house, time is not on your side yet.

If you’re a gambler, it’s time to look at the odds of coming out ahead in the near future, and make decisions based on facts.

If you don’t need to sell your house, look forward to a few additional east end summers…I can think of worse things!

Selling a Second or Vacation home on the North Fork / East End, Long Island

February 3rd, 2009 category: Real Estate News, SellersNo Comments »

With many vacation/second homeowners contemplating the benefits of keeping a property, or selling a home on the east end/North fork of Long Island, we thought that the following article would be of interest. It clarifies changes made on tax/ownership of second homes.

While consulting your own accountant is a given, staying on top of tax changes that impact the sale or rental of second homes for homeowners is worth keeping an eye on.

A provision of the recently enacted Housing Assistance Act of 2008, the bill designed primarily to provide relief to some homeowners facing foreclosure, is going to cost some folks who have a vacation or other type of second property.

The link to the entire article can be found here.

To check out available homes for sale on the North Fork / East End Long Island or condos on the North Fork of Long Island, click “north fork homes”, enter your area of interest and any parameters, and click “go”- properties for sale include Riverhead, Aquebogue, Baiting Hollow, Calverton, Jamesport, Laurel, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, and Orient Point, NY.