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Archive for May, 2009

Sold/Under Contract North fork Houses May 2009

May 31st, 2009 category: Real Estate NewsNo Comments »

The following information was obtained from MLSLI- while deemed accurate, no guarantees.

In order to gain a sense of the market, we bring you monthly sold/closed homes on the North fork/east end of Long Island. For sellers, it’s an opportunity to see what direction things are going; for buyers, if you’re considering a property out this way, it’s need-to-know information.

MAY, 2009 UNDER CONTRACT PROPERTIES:

Total u/c: 38

Median Listing Price: $399k (listed- does not reflect sold price)

Riverhead had the most active sales activity, with 12 contracts. This is in part because this report includes manufactured homes; Cutchogue had a total of 7 properties under contract, followed by Southold (4); Mattituck (3), and Baiting Hollow (3).

MAY, 2008 UNDER CONTRACT PROPERTIES:

Total u/c: 34

Median Listing Price: $469,450 (closed figure)

Riverhead lead the pack last year, as well, followed by Southold, Orient, and Baiting Hollow.

THE GOOD NEWS? While median pricing is lower, activity is keeping pace with last year.

MAY, 2009 CLOSED PROPERTIES:

Total closed: 31

Median Closed Pricing: 350k

Riverhead showed the highest # of closings with 9, followed by Mattituck with 4; Baiting Hollow with 4.

MAY, 2008 CLOSED PROPERTIES:

Total closed: 40

Median Closed Pricing: $475k

A lower figure with closings is reflecting the very quiet Jan/Feb/March on the east end of Long Island. These figures should see some improvement in volume (not pricing) when activity this month closes over the course of the next few months.

Clearly, prices have dropped, and the forecast doesn’t indicate that we’ll be an increase any time soon. We’ve noticed that waterfront is becoming more obtainable- with continued price drops, it will be interesting to watch the market over the coming months.

If you’re seeking property on the east end of Long Island, we represent the buying side, and will provide all data needed to make an informed decision. Do NOT buy from a listing company (or any real estate agent) representing the seller if your agenda is to uncover the best possible price- you won’t find it.

Call us if you’d like help locating a North fork/East end of Long Island home.

To get more specific local North Fork or East End & Hamptons real estate information, fill out the form below with your questions/comments. We know 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.

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, Orient Point, Westhampton Beach, Hampton Bays, Flanders, Southampton, Sag Harbor, East Hampton, Montauk, NY.

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East End / North Fork Home Sales / Lis Pendens Update

May 28th, 2009 category: Real Estate News2 Comments »

Click on the thumbnail to left for a larger view. Well…just reporting facts as found on The Long Island Real Estate Report for the East End / North Fork / Hamptons.

The second quarter of 2009 thus far is disheartening (sales vs. lis pendens) but is part of this market, and remains need-to-know for sellers of homes on the east end of Long island. Working with “what is” is imperative for those needing to sell now.

As the real estate market unfolds, we’ll make every effort to provide what “is”.

< < < < < < Subscribe to Options Realty now for future updates.

To get more specific local North Fork or East End & Hamptons real estate information, fill out the form below with your questions/comments. We know how to find properties coming on the market, and available. If you’re a qualified buyer looking for a foreclosure on any part of Long Island, we’ll help you find it.

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De-Niggling

May 26th, 2009 category: Buyers, Real Estate Philosophy, SellersNo Comments »

Click on the image below to link to the original post at Active Rain.

While many areas don’t permit dual agency and sub agency, some areas do, and it’s widely used, and perfectly legal in NY.

For some Realtors, this tradition of “neutrality” comes naturally, and there will be (always) strong defense that “I can do it- my deals always work out fine.”

While I believe that most deals work out “fine” (as in, close), what I don’t believe is that the interaction with consumers is not without some “niggling”- that uneasy tweak- throughout the transaction. Who wouldn’t be scared on a tightrope (presuming that full disclosure has been offered, with a full understanding of agency laws)? Even the New York Department of State offers the verbiage, “enter this agency with caution” to consumers.

How to eliminate the “tweak” might be to explain to buyers, when they view a property, that you represent the seller (at that juncture) but that as buyers, they have available to them buyer agency.

This is required stuff anyway; just eliminating the niggles.

If, as might occur (at least, it does out our way) the buyer says, “I hate Realtors, and I don’t want one”, then it’s possible to put in writing that you represent the seller ONLY- and that as a buyer, he/she has no representation. That eliminates a “niggle” in a big way- make absolutely certain that their lawyer has reviewed the agency agreement and signs off. Have your own provide verbiage.

If, as a buyer, they respond to the full agency explanation (each agency reviewed) with a desire to get their own Realtor/fiduciary, so what? More opinionated: GREAT!

If, as a listing agent, your list price is without commission paid, it could truly be considered the seller’s expense in its entirety. Absent that, if it’s in the listed price, the buyer is picking it up- in a diplomatic effort, they are paying 1/2. Some argue that sellers pay it all; some insist that the buyer pays it all. It’s math- I lean toward the latter (but was never good at math).

Going with the theory that a buyer is paying 1/2, frankly, I don’t like to see money wasted, and anything short of representation is wasted money on their part in a dual agency situation. They’ll figure it out; why not unearth it for them, with a 30 year financial commitment looming? It seems the respectful thing to do.

We received a really nice email from a client recently (operating under buyer agency) and it occurred to me, as I reviewed dialogue back and forth, that much of what was shared leaned in their favor, so would have been unacceptable under any other agency. Likewise, the seller of the property was receiving equally competent representation from their own agent.

What seems apparent is that full commitment to ONE party offers a whole lot more in way of job satisfaction than a tightrope walk- an opportunity to invest ourselves FULLY in the transaction on behalf of our clients. It’s makes the job fun. It engenders loyalty from our buyers/sellers. At the end of the day, we did everything we could think of, much as if it were our own purchase. No froo froo- just facts.

A thought: dual agency elevates the “deal” to a level above the participants.

It may be that I don’t like money as much as I like my job with clients. No customers.

Ditto the selling side- there’s something about finishing a transaction as if it were your own sale that makes this job more rewarding. But then, like I said, I am happy to PAY to stay off of a tightrope.

Some states have eliminated the fiduciary verbiage; that will probably be an eventuality in NY. Until then, it’s really a matter of self-policing our own motivations with dual agency, and our own willingness to leave fiduciary by the wayside.

I hate heights, so that abandonment just doesn’t work.

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How Can There Be Foreclosures on the East End of Long Island?

May 22nd, 2009 category: East End LI Foreclosures, Real Estate NewsNo Comments »

There has been much in the way of sandbagging done by banks as we navigate a market rife with distress- the less we know the better? The less the entities forcing stress tests are aware of, the better? Conjecture, of course, but an increasingly obvious question.

The east end of Long Island (particularly the Hamptons) have been sitting in a la-la land of misinformation- while the community shudders at the slowing of sales, often, nothing is provided to sellers that explains the “how” and “why” of the current mess.

The following article is perhaps the finest that I’ve read with respect to explanation, and how it is that well educated, articulate and respected people find themselves in a financial abyss right now- no one is immune.

Maintaining awareness that second homes are going to be surrendered before a primary residence is quite important for those selling homes on the east end of Long Island, wondering, “What the hell happened?”- this article is provided for the purpose of insight.

http://www.nytimes.com/2009/05/17/magazine/17foreclosure-t.html?_r=1&pagewanted=1&em

As an articulate potential seller on the east end mentioned, this, too, shall pass- but for now, awareness is key to an outcome that is absent a lack of current information, and thus, a total surprise, for some considering selling their property on the East end.

The following article provides additional ammunition for those that have homes on the market, but don’t need to sell:

http://www.businessinsider.com/henry-blodget-new-york-city-real-estate-prices-to-fall-at-least-another-35-2009-5

Buyers will buy; sellers will sell, but when the very banks carrying a significant bank owned properties state potential outcomes, ignoring this insight is not advantageous to sellers entering this unusual market.

To get more specific local North Fork or East End & Hamptons real estate information, fill out the form below with your questions/comments. We know how to find properties coming on the market, and available. If you’re a qualified buyer looking for a foreclosure on any part of Long Island, we’ll help you find it.

Riverhead, Aquebogue, Baiting Hollow, Calverton, Jamesport, Laurel, Mattituck, Cutchogue, Peconic, Southold, Greenport, East Marion, Orient, Orient Point, Westhampton Beach, Hampton Bays, Flanders, Southampton, Sag Harbor, East Hampton, Montauk, NY.

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“Junk” Fee, Or Legit in a Home Sale?

May 16th, 2009 category: Real Estate News, Real Estate PhilosophyNo Comments »

While “administrative fees” are a relatively new addition to a real estate transaction, the following article calls into question the legality of such fees.

Historically, the commission agreed to between a seller and buyer included the administrative aspects of a purchase, and there was no addition for miscellaneous (and vague) fees tacked on by the broker.

With most transactions handled by lawyers, there is little in the way of “admin” fees that would seem to apply in a NY real estate transaction; the paperwork is not handled by real estate firms on the east end the way that it is in other states. Even in states that handle these aspects, “administration” fees were not present until the last few years.

Not all companies charge them, and it may turn out that such a fee has been deemed illegal.

If you’re seeking to buy or sell a home on the East end/North fork of Long Island, and this fee is introduced, it might be wise to question it- additional fees in real estate aren’t an arbitrary decision, as the courts have recently decided.

As consumers, awareness is everything in real estate!

To get more specific local North Fork or East End & Hamptons real estate information, fill out the form below with your questions/comments. We know how to find properties coming on the market, and available. If you’re a qualified buyer looking for a foreclosure on any part of Long Island, we’ll help you find it.

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Selling Your East End / North Fork of Long Island Home

May 14th, 2009 category: Buyers, SellersNo Comments »

With a market presenting challenges to sellers of homes on the east end (Hamptons, North fork) of Long Island, the more information, the better.

The following link provides ways to improve the home selling experience, with tips on how to view the current market in a way that will offer advantages; the message is clear: DON’T TAKE IT PERSONALLY!

Here is a sampling from the article…

Amid falling home prices, near-record-low mortgage rates and even an $8,000 tax perk from Uncle Sam, prospective buyers have plenty of reasons to dive into the real-estate market.

Despite some encouraging housing data, buyers will continue to have the upper hand in this home-selling season. But that doesn’t mean your house won’t sell; it just means you’ll have to make smarter moves to land a buyer. With the help of several experts, U.S. News & World Report compiled a list of seven home-selling moves to avoid this spring.

Buyers are not going to ignore a statistical inundation- they are aware that this is “their” market, to the extent that negotiation is an expectation.

Rather than viewing offers as an insult, it would behoove sellers to take a more clinical posture, while maintaining their own parameters- in other words, if you get an offer that doesn’t work, a counter offer is far more productive than a dismissive attitude.

The link for suggestions can be found here.

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The following article appeared recently about down payment assistance

May 11th, 2009 category: BuyersNo Comments »

The following article appeared recently on msn.com, and is the one titled: Keepin’ it Real Estate- Sub prime Lending is Back with a Vengeance.

The article takes issue with the $8,000. home buyer tax credit, as well as questioning the latitude in some states that afford assistance with a down payment.

I recall, waaay back in the 1980’s, that the advice offered to potential buyers was always, “Put as little down as possible.”

The idea behind the advice was that holding onto your cash would prevent a cash-on-hand “loss”, should your house decline in value, in addition to providing a cushion in the event that things went financially awry.

What the author of the article is missing is that our current mess has a whole lot less to do with money down, than it does extraneous forces that made the decision that a pulse was sufficient (in addition to little down) for borrowers, and that a personal guarantee (unenforceable) of income could be provided without documentation. “Low doc” and “stated income” loans are the culprit, not the amount of a down payment.

Back in the FHA heyday, while a down payment was minimal (3%), buyer qualification was DOCUMENTED. Employers were contacted; there was a specific form sent to employers questioning the likelihood of “continued employment”, and overall, the process took seriously the need to keep ratios of a buyers house payment/debt in line with a realistic lifestyle. That all info on a credit application was verified was key.

VA loans have always offered a zero down program; lenders in a past life always confirmed the information provided by the buyer. There was no “winging it” in those days; no “stated income” (unless a buyer was able to put 20% down); no nonsense. VA loans were considered a gift for those that had served their time for the rest of us, and the buyers themselves were put through a financial microscope.

If you’re a seller wondering about buyers using a loan program that provides an alternative to 20% down, know that a buyers ability to get a mortgage is now largely predicated on their credit score, as well as stability- if a buyer chooses to take the oft-given advice to put less down, it makes them no less a candidate for your home than a buyer with 20% down.

Just an opinion.

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Selling Your Home on the East End of Long Island

May 10th, 2009 category: Real Estate News, SellersNo Comments »

I had the pleasure of mowing the yard late last week- with all of this rain, it’s due again tomorrow- and couldn’t help but notice some things that really need to be compiled into a manageable list called “spring chores.”

Whether it was a loose piece of siding, or missing drainpipe (where did they go, those attachments?), there are some tasks that need attention now- waiting until the pleasure of spring seeps into the hot summer weather promotes a dread of “tasks” (at least, for me).

The following link offers a substantial list of “to-do’s” for your home on the North fork/east end of Long Island.

Be forewarned, as I wasn’t, that the author has a ton of great ideas; that they all appear, one after another, may require a second read-through!

Click here for some helpful suggestions…and then, go have a glass of wine!

Check the smoke alarm and carbon-monoxide detector. Replace batteries. Many people do this when they change their clocks in the spring for Daylight Savings Time. If your smoke detectors are more than 10 years old, replace them. New models have longer life batteries and hush features.

Consider converting part of your yard into a vegetable garden. It’s a little time consuming to get started, so begin with just a few plants in a small plot. A bit of success with a tomato plant can make you a believer in fresh produce from the garden.

Clean house. Spring cleaning is good for the soul.

Spring ventilation maintenance means checking ridge vents for obstructions or evidence of pest damage. Now is a good time to consider adding additional roof vents or a whole house fan. It’s a relatively inexpensive way to improve cooling without using a lot of extra (and expensive) energy.

Clean the gutters … again. Wash them too at the same time to get rid of grime and dirt. It makes your house look so much tidier.

Above info & link is courtesy of demesne.info

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East End and Hamptons Real Estate Trouble

May 7th, 2009 category: East End LI Foreclosures, Real Estate NewsNo Comments »

We received our east end of Long Island Real Estate Report.

The drop in sales volume has been noted in many publications, so is no surprise.

What’s a bit sobering is the fact that in the first quarter of 2009, Southampton had lis pendens filings that surpassed the sales- while 98 properties in the first quarter received a notice of default, there were only 87 buyers willing to make a purchase.

The lis pendens have been active for a few years now, and there are sellers reaching the end of the line, with foreclosure a near certainty.

Clearly, it’s time to get serious in the Hamptons- most notably, Southampton and East Hampton.

Buyers are not willing to pay exorbitant prices; sellers are missing payments.

To sellers that don’t need to move, take your house off of the market- save yourself the aggravation. Your real estate agent should be implementing reductions; if that isn’t happening, you don’t need to sell.

Pricing that artificially inflates the market from a buyer perspective isn’t going to offer any tangible benefit- signs dangling from houses unsold are not a promising signal.

“Sold” signs work- if the only homes selling are those of motivated sellers, the sooner a successful direction can be met, the better.

If you don’t need to sell, ask your real estate agent to come pick up the sign, and enjoy your summer without interruptions- there are too many sellers that need to move right now, and muddying the landscape is a huge detriment to the market as a whole.

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Buyer Agency North Fork and East End, Long Island, NY

May 6th, 2009 category: Buyers, Real Estate News, Real Estate PhilosophyNo Comments »

When you’re out looking at houses, know your real estate agent. Don’t just “like” them…like them because they represent your best interest- then, like them for any number of other good reasons.

In any real estate transaction, there are two parties involved; one, seeking to sell a house for the “best possible price”, and one seeking to buy that house for the “best possible price.” In this equation, you have the seller (and their Realtor), and a buyer.

As a buyer, how you enter the transaction- and with whom- will directly determine if you truly are getting the “best possible price.”

Because of many, many instances in which home buyers felt “duped” by their real estate agent after discovering that, in fact, they represented the seller in the transaction,NYDOS now requires a disclosure form, so that the position is crystal clear at first substantive contact.

If the real estate agent with whom you are seeking properties has not provided you with this, and checked the buyer agency box, you are not maximizing your buying power.

While it’s absolutely certain that buyers have access to many sites with statistics, homes for sale, homes closed, and other important data, having your offer facilitated by a Realtor either representing the seller, or waiving fiduciary to you, makes no sense.

“But I can find everything I need online, and know what to offer.”

It’s irrefutable that data is readily available. While data tells the story, and offers a solid set of guidelines, it can no longer be argued that data also provides a “future” glimpse into what we might expect over the course of the next few years- or months.

The market has changed so rapidly, and with such force, that having someone that would prefer to err on the side of caution (as opposed to abandonment) on your behalf is an intangible unappreciated until a property is located.

Rather than having a cheerleader encouraging abandonment and a hurry-or-it’ll be gone mentality, discussion with someone who has provided fiduciary in writing offers a more grounded experience- all facts, not just positive facts.

“But that’s what my lawyer is for.”

Lawyers aren’t involved, as a rule, in the appropriation of your property of choice in the earliest stages. Rather, their fiduciary dictates (this is not legal advice, just opinion) that the transaction itself have representation on your behalf. By the time they’re watching out for your “best interests”, the property itself has you involved. That’s not early enough for fiduciary to kick in.

“But I’ll get a better price if I go right to the listing company.”

This is likely the biggest error that can be made on the part of a home buyer. From the moment you enter into negotiations with the listing agent, who in turn goes directly to the seller, you’re being set up to fail.

While you might be a superb negotiator, able to navigate appropriate pricing, etc., it would be contrary to the home seller for their Realtor to advise you to do certain things, such as offer a lower amount; offer a lower deposit; request funds toward finance costs; include in your conversation with your lawyer potential contingencies in your favor- the list lasts for as long as the transaction lasts, as things come up.

Even though your negotiating powers might be exceptional, if you aren’t covered after the contract itself, you could find yourself at a closing with two real estate agents and a seller requesting additional funds for items that, were you covered earlier, would have been resolved. Nickles and dimes, or much more.

We had a recent closing in which the seller had not replaced the refrigerator, as promised- it was suggested at closing by the listing company that the buyer split the cost. Ridiculous, but it happens, and our buyer’s position was bolstered by an “even” representation. Ridiculous things can happen, right up until closing.

The experience is better overall if sellers and buyers feel adequately protected, to the best ability of the chosen Realtor(s), from start to finish. Closings are no place for negotiation, but it happens too frequently to ignore- before, as expected, during, not as expected, and at closing.

Our buyer would have had a distinct sense of unease had we, at the closing, been less vocal about him NOT paying an amount that was simply unacceptable (which was ANY amount). We would have felt less comfortable about being as vocal about the inequity had we “represented” the seller. He might have felt outnumbered with two advocates of just “getting the deal done” at his expense.

Being “fair” to a buyer (as required) is too subjective; the fiduciary verbiage required in New York makes clear that the interest of the buyer come before the interest of the seller, OR their agent, at all times, under buyer agency. The seller likely has the same “fiduciary” verbiage with their listing company, and as a result, the listing company, or an agent representing the seller, cannot by law offer fiduciary to the buyer.

Buying a home with an agent representing the seller makes no $ense. The price is just the first step. Level the playing field- as a home buyer, you deserve it, whether the home is a resale, bank owned, or new home. Buyer agency goes well beyond the presence of commission.

A copy of the disclosure form is here. If you are looking at houses with a Realtor and have not received it, request it immediately, and look for the “buyer agency” box to be checked. Without it, your Realtor is likely working for the seller, not you.

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