Anyone looking for a home on Long Island in 2021 knows this is the jungle.
As of the end of April, persistent low interest rates and an influx of New York shoppers, coupled with low inventory levels, sparked multiple bidding wars and pushed prices up to a record median of $ 630,000 in Nassau and a record $ 480,000 in Suffolk by as of the end of April. OneKey MLS.
“Of the 10 homes we sold last month, each had a higher asking price and had at least five to seven offers,” said Glen Fox, a licensed real estate seller who leads the Fox team at Douglas Elliman in Long Beach. …
With such frenetic activity in the marketplace, you should be ready to lash out when you find the home you want. Here are five tips to help you get ready.
1. Find a good real estate agent to represent you.
An experienced real estate agent with deep knowledge of the local market can help you refine your search, introduce you to market values, and negotiate the best deal for you. Sellers are represented by a listing agent and you must be represented by a professional who is contractually obligated to you. “When I represent buyers, I keep an eye on their interests – I’ll tell them why I think the home is over or undervalued, which will help determine how we present our offer,” said Claire Goverale, Daniel’s licensed real estate seller. Gale Sotheby’s International Realty in Manhasset.
2. Get thorough preliminary approval.
In such a hot market, it is more important than ever to get the maximum possible amount of pre-approval for a mortgage from a bank, credit union or mortgage company. “Keep in mind that not all pre-approvals are the same,” said Christelle Weidenman, a licensed real estate seller at Signature Premier Properties in Northport. If a lender stamped you after simply asking you a few questions, you are likely to lose out in a multi-rate situation for a buyer whose lender has done due diligence. “Some lenders are doing their best – preparing credit reports, requesting payment receipts, W-2s and tax returns and even submitting them through their underwriting department to issue a preliminary letter,” Weidenman said. “Their prior approval is almost like a guarantee.” In addition to pre-approving your mortgage, have proof on hand that you can deposit the proposed amount of cash.
3. Determine the maximum you can afford.
The pre-approval process can help you determine the maximum home price you can afford. “In this market, it’s very important to know what you can count on,” Fox said. You may have a ceiling in mind, but counting the numbers can help you figure out that the price you thought was unattainable would only be $ 20 or $ 30 more per month, he added.
Apart from the mortgage, you will need to factor in utilities, property taxes, insurance, and other expenses. “The biggest surprise for novice buyers is the cost of homeowner insurance and, for those in need, flood insurance,” Fox said. “You might be surprised to know which homes require and don’t require flood insurance.”
4. Make as attractive an offer as possible.
In this market, you need to make the best deal. If you and your real estate agent have thought about the value of the home well, you should have a good idea of how much you need to offer in relation to the asking price. “Some buyers are on the verge of exhaustion and will say bluntly, ‘I know I’m overpricing this house, but I’m tired of making offers and not getting them accepted,’ Weidenman said. In many cases it is necessary to exceed the asking price to purchase a home. “But we don’t want our customers to overcharge insanely,” she said. “You want comps (recent selling prices of comparable properties) to support the offer.”
Buyers who finance should understand that if their offer is accepted, their lender will make an appraisal, and if the appraisal is below the selling price, the lender can only grant a mortgage based on the appraised price. “If your offer is $ 900,000 and the house is valuing it at $ 850,000, where will the additional funds come from?” Weidenman said. “The buyer may need to deposit additional money to make up the difference, or if the buyer does not have the additional money, the seller may have to revise the price to satisfy them.” However, in this hot market, many sellers will be reluctant to renegotiate terms and cut prices. In order to make their offers more attractive, some buyers have abandoned the pricing contingencies, that is, they have agreed to pay the negotiated price even if the valuation turns out to be undervalued. “Personally, as a buyer’s agent, I do not recommend this approach to my buyers, as it can create a difficult situation,” said Weidenman.
5. Find other professionals.
In addition to the lender, you must have your attorney and technical inspector for speed dialing. “I call it the team A build,” Cardinale said. “Interview lawyers and select someone who specializes in real estate in the local market, not your uncle Bob, who does little real estate.” Cardinale advised interviewing several engineering firms “so you can tell them, ‘I am offering a price for the greenhouse, what are your suggestions next week? ”And write them down. The engineers are busy right now, so you should have a backup in case another is busy. ”
A seller who chooses your offer from several offers will breathe your real estate agent’s breath, making sure that the contract is signed without delay.
“In this market, you want to be able to move from an accepted offer to a signed contract in about a week,” Goerale said.
For more real estate news, visit longislandpress.com/category/real-estate…
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