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Homes for Sale- North Fork of Long Island

February 22nd, 2010 category: Buyers1 Comment »

Finding homes for sale on the East End / North Fork of Long Island has never been easier.

Like a growing number of east end real estate sites, Options Realty has signed up for a home search feed that includes all participating members of our local MLS.

Using the feed, once you get the hang of it, is simple. Just be sure to indicate your preferences prior to your search. Looking for condos? Click on “north fork condos”, and read through the choices, beginning with “condo”- when you seek a specific location/town, click on the town, then the “add” tab in the middle. At the bottom, you can narrow further by clicking on “55 and over”, along with other criteria.

The search for single family properties is equally simple: just click on your town(s) of interest (if there is more than one, click each, and hit “add” so that it appears in the second column to the right) and continue with further narrowing down- price point, etc. If you want to view all homes on the North fork of Long Island, no criteria is needed- just click “go” at the bottom.

If your search is simply for bank owned or REO homes on the east end of Long Island, click on the “foreclosure” tab at the top, and you’ll be brought to the same page, but lead directly to bank owned. Because the offerings are limited, simply clicking on “go” without narrowing down will bring you to all bank owned properties on both the North fork, and in the Hamptons.

You can save your preferences; sign up for auto updates (which will deliver your properties of interest directly to your mail), or just check in now and then to see what’s what! Auto updates permit you to have new listings in your area of interest automatically sent to you.

The MLSLI provides this convenient search option, along with any of the participating brokers on the east end of Long Island seeking to maximize their seller’s exposure. This convenient feature permits a sellers property to appear on all participating broker websites, whether that company is the listing company or not.

Happy searching!

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Changes to FHA Loan Guidelines

January 27th, 2010 category: Buyers, Real Estate NewsNo Comments »

Weather Vane FHA has made some recent changes to their lending policies.

In Suffolk County, New York the FHA loan limit is $729,750. While that remains intact, some changes have been made with other policies. One of those is the amount of seller concession permitted (it’s been reduced); the other is the amount that FHA will require for their mortgage insurance premium (MIP).

Changes can be found by clicking here, along with links to other questions that you might have regarding an FHA loan.

With many North fork and Hamptons properties falling into the FHA range, those with credit scores below 600, or limited funds for a down payment might want to check out the HUD site above.

If you have any questions, we’re happy to help.

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Tax Credit for Homebuyers on East End of Long Island

January 15th, 2010 category: Buyers, Real Estate News2 Comments »

For those seeking a home on the North fork or Hamptons, Long Island NY, the homebuyer tax credit has been extended, and modified.

Details on the tax credit can be found on the IRS website, or just click here.

Added to the initial tax credit opportunity is a credit for any homebuyer meeting the stated criteria- it is no longer an offering limited to the first time buyer.

Check it out; the credit, along with low, low interest rates, make for a compelling opportunity to explore a home purchase on the North fork or East end of Long Island- pricing in the Hamptons has dropped along with the North fork, creating some interesting possibilities.

For a recent update on how to file for your credit, click here.

For additional info, call us- we’re happy to help!

Start your search by clicking on the “homes” tab- you will be gaining access to MLSLI property listings on the North fork and in the Hamptons. With an increased number of homes for sale on the east end, the choices are better than ever!

If you are looking for a home or bank owned foreclosure for sale on the North Fork / East End / Hamptons of Long Island, please fill out the form below.

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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Changes to Fannie Mae Loan Approval Guidelines

December 21st, 2009 category: BuyersNo Comments »

The information below was taken directly from the Fannie Mae site, and details for home borrowers new restrictions, ratios, and guidelines being implemented now under Desktop Underwriting 8.0.

Of primary interest on the east end of Long Island for second home seekers are changes to second home property qualifications. It would appear that flexibility- even a little- is not happening.

For those seeking a primary home on the east end, changes have been made that may affect your total debt ratio. Under the current guidelines, unless you have a very specific credit score minimum, as well as reserves, verifiable income, and ratios that fall VERY closely within the guidelines, your potential purchase is likely at risk if any of those elements are lacking.

You can find all information here.

Your lender can assist you in navigating these changes- understanding what to expect will be key to a smooth home purchase.

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Looking for an East End, Long Island Foreclosure / REO Home?

August 9th, 2009 category: Buyers, East End LI Foreclosures4 Comments »

If you are a potential buyer of a North fork / Hamptons / East End of Long Island foreclosure (REO) home, there are some nuances that differ from a traditional transaction that might be worth reviewing BEFORE you set out to locate a property:

Offers have required paperwork. Under these requirements, those that are sent in absent ANY of the following may be returned, delaying receipt of your offer by the bank Representatives:

1. Have with you a preapproval letter from your bank. Because “preapproval” letters vary somewhat, make sure that your own references in some way that your credit/income has been reviewed, and found satisfactory. Absent this information, there is no way for an offer to demonstrate the assurance that you’ve done more than offer verbal numbers to a loan officer, without having provided them with what they need for reasonable certainty that you do, indeed, qualify.

2. Have with you “proof of funds.” This can be accomplished by providing recent bank statements that verify that available to you are funds for the planned down payment, or enough cash on hand for a cash purchase offer.

3. Have your offer prepared on a state-approved offer form. As this is required by many banks, anything outside of the required forms are a gamble- timing is everything on offers, and absent one requirement could potentially delay the review of your offer. The Long Island Board of Realtors/MLSLI offers a standard form called the Sales Agreement form.

4. Have a check ready, in order to provide a copy to the listing company. A copy is sent in with your offer; your real estate agent/Realtor holds the original until your offer is accepted by the bank. Instructions as to how much will be provided by the listing company.

5. If you have a Real Estate buyer’s agent helping you, have your Realtor/real estate agent explain, and fill out, the NYDOS standard agency disclosure form, to be submitted with the offer. The MLSLI listing will provide those agency representations that are offering compensation to your Realtor.

PART TWO: THE AS IS ADDENDUM

If your offer to purchase is being considered by the bank, they will forward to the listing company their “as is” addendum, explaining exactly what the expectations are with respect to their “as is” property. This is not a negotiable form; this is a form in which your lawyer will provide full explanation, in order to establish if an “as is” property is acceptable to you.

If it is not acceptable, your offer is canceled; if it is acceptable, the process then moves into the contract stage.

THE CONTRACT STAGE

The majority of bank transactions will be using a contract that differs somewhat from the contracts generated in NY; your lawyer will receive this contract for your review. Because the seller of a bank owned property is not a “local” entity, expect to review their contract, as opposed to the standard NYS contract forms.

Having a lawyer that is well versed with REO properties is essential in both the “as is” review, and the contract review, as delays/issues may jeopardize your purchase.

Plan on following the time frame for the processing of your offer TO THE LETTER. Any variance from what the seller expects may create a “canceled” offer. Once canceled, the next offer in line is provided the “as is” addendum, and the process begins anew.

Knowing what to expect, and how to proceed, is essential to a smooth transaction.

Imagine a seller with hundreds of files on their desk, working through each- those that proceed smoothly have an increased chance of closing; those that slow down the process are in jeopardy of not closing at all.

It’s nothing personal; the objective of the seller is to work through each REO offer/property with efficiency and speed.

Know that the bank representative is the decision maker; listing agents have no impact (short of their own responsibility to provide offers that are submitted in a complete package). If you’re aware of how to do it, and what to provide, you increase your odds of a successful closing, provided your offered amount is in line with what the bank is seeking. The listing agent is your contact person; they’ll provide any information that you or your Realtor / lawyer seek. BE AWARE: due to the volume of interest in bank owned properties, EMAIL is often the method used for communication.

Depending on the bank, if there are enough acceptable offers on the table, they may well halt the submission of additional offers and showings. Get yours in first!

Your Realtor and your lawyer will help you through the process; they will be unable, without your cooperation, to provide the best possible service/outcome.

**THIS IS NOT BEING OFFERED AS “LEGAL ADVICE.” This offering is based on a few recent experiences, in the hope of offering insight to those buyers (and their Realtors) looking for an east end foreclosure. CurrentREO offerings are a new game, due to the volume being encountered by banks and their employees- understanding the expectations puts you a step ahead!

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Buying a Home on the East End/North Fork of Long Island

June 30th, 2009 category: Buyers, Real Estate NewsNo Comments »

http://www.bloomberg.com/apps/news?pid=20601213&sid=aedS3XGrNmSA

If you’re a first time buyer, new to the home buying game, among the many things that must be identified prior to your search is your credit score.

With lenders tightening all aspects of qualifying for a new home, the above article provides insight as to the impact that recent changes to your credit cards might have on a credit score that has always been well maintained by you.

There doesn’t seem to be a consistent method taken by banks when reducing a credit line, but clearly this arbitrary lowering of a credit limit by your credit card issuer may well damage what has always been a high score, with no missed payments or issues on your part, as a diligent consumer.

If you discover that your score has been lowered due to forces outside of your control, such as an arbitrary reduction, start by contacting the bank involved, and see if it’s possible to return your limit to the original understanding between you and your bank.

Being prepared is everything- knowing what obstacles will need to be overcome in order to achieve the best rate for your purchase is homework well worth undertaking- the results of your diligence might save you thousands of dollars over the long-term.

For additional insights on credit scores, please visit: www.myfico.com

If you are looking for a home for sale on the North Fork / East End of Long Island, please fill out the form below.

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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.

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.

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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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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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