Ira Freireich, Excl Buyer Agent's Blog

Home Inspections – Your Best Way To Avoid A Money Pit

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Mon, 23 Jan 2012 16:59:37 -0800

As a buyer, one of the smartest things you can do is get a home inspection. It's arguably more important than getting an appraisal, because a proper inspection will prevent you from buying a money pit – at least not intentionally.

A good home inspection will identify both major and minor problems in the physical condition of the home. For example, the inspector can identify issues such as structural problems, (termite damage), mechanical problems (heating and air conditioning) or construction defects.

The home inspection report will identify the problem areas, explaining what needs to be either repaired or replaced, and it will give you an estimate of the expected lifetime remaining on the major systems in the home.

A home inspector will begin with a review of the home as a whole and then break it into sections, checking each area carefully looking for signs of wear and tear which is above the expected, normal wear and tear.

As a buyer, it may be very tempting to require the seller to do all of the repairs on the home before you buy it, however there are no hard and fast rules about who should pay for repairs in a home sale.

One rule of thumb suggests that anything which will require you to hire a professional, have the seller pay for the costs, either as a reduction in the sales price or before the sale takes place. It's up to you as a buyer, but if there's a long list of items which you need and/or want to do which can be done easily enough by yourself, don't bother asking the seller to do the repairs. Wait until you've bought the home and do the repairs yourself.

Source: longislandrealestate4buyers.com/

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.

We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.

We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at http://bestbuyersbroker.com or http://bestbuyerbroker.com

How to Stop Door Drafts Around Entry Doors

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Fri, 20 Jan 2012 17:46:24 -0800

With heating costs going through the roof, here’s an easy way to keep heat from slipping out your doors, too. Take 30 minutes and replace the weather stripping and door sweeps around your steel entry doors. Plan to do this project on a warm day since you’ll have to remove the doors. Steel doors use a compression-style strip for the hinge side and a magnetic one for the knob side and the top. But look at the door and confirm the style of weather stripping on all three sides and the type of door sweep before you head to the store. You’ll find replacement weather stripping in a variety of lengths and colors at home centers and hardware stores.

To remove the door, close it and use a hammer and a pin punch or a thin nail to tap out the door hinge pins. Turn the knob, open the door slightly and lift it off the hinges. When you rip out the old weather stripping, you might find that it’s tacked into place with small brads from the manufacturer. Leave them in place after removing the old weather stripping or you’ll damage the doorjamb. Then shear off the shanks inside the groove with an old chisel or drive them deeper into the groove with a screwdriver. Press the new magnetic weather stripping firmly into the groove on the knob side and top of the door frame and do the same with the compression strip along the hinge side. To ensure that the strips won’t pull out, pin them with a few 1-in. brads, especially in the magnetic strips.

The sweep on the door bottom is even easier to replace. Pry or slide out the old sweep. Run a bead of caulk along the bottom edge of the door, tap the sweep into place and then staple it at the ends. While you’re at it, you might as well do a quick fine-tune of the adjustable threshold. Adjust all four screws until the door opens and closes without too much drag and any drafts have been eliminated (look for light between the sweep and the threshold with the door closed). Turn the screws clockwise to lower the threshold and counterclockwise to raise it

If you're renting or low on funds you can re-purpose a 6ft length of pipe insulation available for $1-1.50 at any big box home improvement store into two door draft guards. The only disadvantage is that the pipe insulation cannot be used on windows unlike the Door Draft Guard.

Source: longislandrealestate4buyers.com/

Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

Are You Covered With The Right Homeowners Insurance?

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Tue, 17 Jan 2012 14:00:57 -0800

If you're a homeowner, you most certainly have a homeowner insurance policy to cover your home. Not only is homeowner insurance a necessity, lending regulations require every homeowner with a mortgage to have some form of homeowner insurance coverage. It is a vital investment you need to make in order to protect your home and everything in it against accidents and hazards like fire, storm, flood, and others. Any accidents which occur in the house or on your property should also be covered, including medical reimbursements in cases of accidents and injuries.

You may have homeowner's insurance, however, the question is, is it the right coverage? Home owners insurance differs depending on the type of coverage included in your policy. Different areas may require different types of coverage. Areas most commonly affected with natural disasters like flood, hurricane, and storms, also have special coverage against these types of natural hazards.

A good example is the homeowners insurance policy in some states where a special section called the wind policy is included. This is especially provided for homes in areas which are often experience hurricanes. This will provide home owners the necessary coverage against a very common hazard in those areas.

Upon signing your homeowners insurance policy, you need to know what is included and not included in the coverage. This will help you decide whether to provide additional homeowners insurance for other specific coverages. Some homeowners insurance policies may not cover your home against earthquake, nuclear exposure, and tsunami. If you feel you live in an area where nuclear exposure is a known hazard or if you are along the ring of fire and may want to provide additional coverage against earthquake, try to talk about this with your insurance provider and get possible coverage for these types of hazards.

Your homeowner insurance may also provide coverage for the belongings you have within your home. However, if you have expensive and valuable items within your home which the standard home insurance policy may not completely cover, you might opt to add another type of insurance — content coverage.

Make sure you have the right homeowners insurance coverage. If you are not sure about it, always seek the help and assistance of your insurance provider.

Source: longislandrealestate4buyers.com/

Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

Six Tips For First Time Home Buyers

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Fri, 13 Jan 2012 17:59:37 -0800

Buying a first home is often fraught with uncertainty and stress. The home buying process may be made easier and less stressful with these tips for first time home buyers.

1. Don't Stretch Your Budget:

Figure out how much you are able to comfortably afford before looking for a home. A $1000 a month rent payment does not mean you are able to afford the same mortgage payment. Owning a home has increased costs over renting. Taxes, insurance and unforeseen maintenance costs will add up to higher expenses. Consider all of these factors when deciding on a home budget. A mortgage calculator will help determine these costs.

2. Find A Reputable, Seasoned Real Estate Broker:

A reputable real estate broker will help a prospective buyer find the perfect home. Good real estate agents know the local marketplace and whether the house is for sale at a good price. They will be aware of what is available and how much is a fair price for the amenities within the home. Seasoned real estate brokers will help walk the home buyer through the negotiating process to ensure the best possible purchase price.

3. Obtain Mortgage Pre-approval:

Have financing in place before stepping foot into any home. Pre-approval is different from being pre-qualified. Pre-approval means financing up to a set amount is guaranteed by the lender. Pre-approval letters from a mortgage company offer the buyer an advantage in the negotiating point of the home purchase. Potential buyers will be able to show they are serious and have funding in place. This allows them leverage over another potential buyer who does not have mortgage pre-approval.

4. Have A Home Inspection:

Home inspections are a vital part of purchasing a property. A good inspector will look for a variety of issues to help determine if there are any problems within the home. Issues found by an inspector will allow the buyer the ability to renegotiate price. Buyers may walk away from the house if severe issues are discovered and they do not feel capable of dealing with the problems, and the seller isn't willing to fix problems found by the home inspection.

5. Remember Closing Costs:

First time home buyers need to remember closing costs. These fees typically range from two to four percent of the total loan amount. Closing costs depend on how many points the lender is charging for the loan. Buyers can sometimes negotiate closing costs with the seller paying some or all of these fees. Use a closing cost calculator to help determine your closing costs.

6. Save Some Money for Home Repairs:

Sure, putting a big down payment on your new home is a good thing. But have you thought about home repairs? It is not smart to put all of your money into your down payment, or to use the rest to make improvements. Surprises abound for first-time home buyers who may not be aware of all the ways their new home can swallow their money. Gone are the days when many homeowners could dip into their equity to replace a roof or septic system. Be proactive and keep some savings aside for unexpected home repairs, even if the inspection came up clean.

Talk to us about buying your first home. We are experienced in all these areas and can help you make the first home buying experience enjoyable, not a nightmare.

Source: longislandrealestate4buyers.com/

Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

2012 Home Improvements For Long Island and Queens New York

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Wed, 11 Jan 2012 16:50:13 -0800

If you're looking to remodel or upgrade your house these days, creating lasting value is sure to be a top concern. You'll want to add features that won't be outdated just a few years from now — reducing your home's marketability and making your house look like it just crawled out of a time machine. Many people have the idea that a home remodel has to involve a new kitchen or bathroom. But some simpler, less expensive projects, can also bring lasting value to your home.

Lighting: Adequate light is more than just brightness — it's a major contributor to our sense of comfort and well-being. Good interior lighting reduces fatigue and stress by reducing strain on eyes; outdoor lighting adds curb appeal and safety. Interior and exterior lighting fixtures — recessed ceiling lights, sconces, track lights, and flood lights — contribute to the overall value of a house and property, making it more marketable when it comes time to sell.

Storage: Storage is one of the most sought-after features of prospective home buyers, and built-in storage solutions always deliver. Built-ins have a neat, fitted appearance that takes advantage of every available square inch of wall area. Because they make use of existing structural components, such as wall studs, built-ins generally cost less than free-standing furniture of comparable size, quality, and function. Fit built-in storage solutions under stairs, as window seats, and in closets.

Paint: From boring beige to rocketing red, your rooms will never go out of style. Why? Because you can easily redo them — a new paint job is one of the simplest, least-expensive of all remodeling projects. A Do-It-Yourself paint job on a 12-by-12-foot room costs only about $150 for paint and painting tools; if you're not the do-it-yourself type and need to hire someone, expect to pay a licensed paint contractor $300-$400.

Wood Floors: Shag carpets come and go, but wood flooring has the uncanny ability to look great in any setting, whether traditional, contemporary, or country. The warm, upscale ambience of wood floors helps preserve the value of your home, and the cost isn't prohibitive: Pre-finished wood floors in oak, maple, and bamboo run $8-$12 per square foot, installed.

Molding: Adding architectural interest with trims and moldings is a good way to bring rooms to life. Little details can have a big impact when it comes to creating homes that really stand out. You'll pay $1-$3 per linear foot for a 5-inch-wide, paint-grade crown molding; $1.50-$6.50 for wood.

Stonescaping: Masonry materials used to create walkways, patios, and retaining walls helps define and shape outdoor spaces. Making your yard usable for sitting and strolling increases living area, which contributes to your property's value. Materials, such as brick and stone, are virtually indestructible, readily available, and have timeless good looks. You'll pay $17-$28 per square foot for professionally installed natural stone pavers.

Source: longislandrealestate4buyers.com/

Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

Why Homeowners Win When Their Home Prices Drop

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Fri, 06 Jan 2012 17:55:07 -0800

The value of their homes is a major point of pride for many owners, who use the figure to prop up their net worth and justify the money they've poured into their dwellings. When the price declines, as it has been doing for most homeowners for years, they tend to overlook the positive side of the drop — one that affects them more immediately.

As Budgets Are Sexy points out, lower home values means lower property taxes, which are typically added to monthly mortgage payments. Homeowners with sinking property values have lower payments and more money in their pockets than they would if the market remained steady.

There are other drawbacks to declining home values, such as less equity to borrow against and the possibility of a heavy loss if you're forced to sell. But all things being equal, your depreciating home is making you richer.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Strong Housing Predictions For 2012

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Wed, 04 Jan 2012 15:01:45 -0800

What's in store for housing markets in 2012? Well, the good news is, we may finally be over the worst, according to the authors of a new Kiplinger article.

Following five long, often painful years of price declines, which saw median home prices drop by almost 40%, housing is finally showing signs of a rebound – although we still have some way to go. Things are looking better for real estate in 2012.

The Kiplinger article made a number of predictions for housing over the next 12 months. One of the most important of these is that home prices are expected to stabilize. Although Mark Zandi of Moody's Analytics is predicting that home prices will drop by a further 3% to 5% nationwide, he also claimed that in around 12 months time things will finally stabilize, before we finally start seeing some gains in 2013.

Housing affordability is also expected to grow higher. Housing affordability is worked out according to the ratio of median home prices to median family incomes, and this is likely to remain at the current record levels we are seeing now. The article in Kiplinger notes that many homes across the US are "substantially undervalued", and predicts we could even see a mini-bubble in places, with some areas seeing prices rise by as much as 10% to 15% in a given year.

One factor that will help keep houses affordable is low mortgage rates, which are set to continue where they left off in 2011 – at record low levels. 30-year fixed rate mortgages have been hovering under 4% for quite a few weeks now, and Kiplinger predicts this will stay around the 4% to 5% mark throughout 2012.

We may also finally start to see some more sales. While we still have huge inventories flooding many local markets, the big slow-down in new homes has led to a gradual easing of surplus inventories, something that should lead to an increase in existing-home sales.

Source: longislandrealestate4buyers.com/

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Increase In Short Sales Give Housing Market Breathing Room

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Tue, 03 Jan 2012 18:03:55 -0800

Short sales up, foreclosures down. That's because in many cases a short sale may be the lesser of two evils for banks and homeowners versus a foreclosure. It's a tarnished silver lining for people at risk of losing their houses and homeowners in neighborhoods blighted by bank-owned properties, but the robo-signing scandal that slowed the foreclosure process to a crawl appears to have increased lender interest in short sales.

Foreclosure sales are pretty devastating," said Faith Schwartz, executive director of Hope Now, a resource for homeowners facing foreclosure. "We'd much prefer a modification, but if homeowners don't quality, then the next best alternative is deed-in-lieu or short sales."

Short sales, in which the lender agrees to let the owner sell the home for less than the amount owed on the mortgage, and foreclosures both climbed in 2010, but while short sales rose by 26,000 this year, the number of foreclosures fell by 255,000, according to Hope Now. Short sales, along with deed-in-lieu of foreclosure deals in which the lender takes the deed essentially as payment for the mortgage, still upend families, torch credit ratings and hurt neighboring property values, but they're far less toxic than foreclosures.

Short sales are better for homeowners. They can stay in their homes, and the quicker process means they can begin rebuilding their credit sooner. Credit scoring firm Fair Isaac Co., which developed the FICO score, says foreclosures and short sales slash the same number of points from a homeowner's credit score. Homeowners with short sales may be able to obtain a loan sooner than foreclosed homeowners, though, which can improve their credit.

In some states, mortgage lenders can pursue a delinquency judgment against homeowners for the difference between the amount due on the mortgage and the purchase price at a foreclosure auction. A delinquent homeowner engaging in a short sale has an opportunity to negotiate away the bank's right to sue for that judgment.

The biggest plus for banks is that they stand to make more from a short sale than a foreclosure. According to foreclosure specialists RealtyTrac.com, the average price of a foreclosed home in the second quarter of 2011 was $164,217, while the average price of a short sale was $192,129. Besides yielding less, foreclosures also cost lenders more in legal and administrative resources. "The incentives against foreclosing are even larger now," Karen Dynan, co-director of the Economic Studies program at the Brookings Institution, said via email. "Servicers are facing enormous staffing constraints because they are trying to deal with so many distressed properties, so it is probably even harder now to find the staff to do the paperwork for the foreclosure."

Lenders are also spending more on due diligence, she said. "Servicers and lenders are being heavily scrutinized right now so they probably are more worried than ever about making a mistake in a foreclosure that could subject them to legal liability in the future."

Neighborhoods also benefit from short sales rather than foreclosures. "Short sales typically sell at less of a discount than foreclosure sales do," Jed Kolko, chief economist at real estate website Trulia.com, said via email. "Also, foreclosed homes often sit vacant while short sales are re-occupied more quickly. For both these reasons, short sales tend to depress neighboring property values less than foreclosures do."

Another issue that plagues foreclosures is vandalism, either from opportunistic criminals preying on vacant homes or from disgruntled homeowners. "It's often not a friendly process so you frequently have cases where people deliberately vandalize homes," Dean Baker, co-director of the Center for Economic and Policy Research, said.

Some economists worry that the drop in foreclosures is less an indication of lenders' willingness to compromise and more a function of a huge backlog of foreclosures that haven't been processed. "Foreclosures are going to be a drag on the market for a long period of time," Baker said. Until these distressed homes are resold and assimilated back into the market, real estate prices can't stabilize.

Baker added, though, that lenders facing years' worth of legal wrangling and costs to execute a foreclosure may be more willing to accept a buyer's offer in a short sale.

The other caveat is that short sales aren't an option for all distressed homeowners. Short sales are contingent on the ability of sometimes multiple lenders to agree on a price that a buyer is also willing to pay. For people who took out multiple mortgages or have other liens, this presents a challenge. "It's just a little more complicated when you have more parties involved," Schwartz said.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Home Sales Rise, Housing Recovery in Sight

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Thu, 29 Dec 2011 14:34:33 -0800

The number of Americans who bought previously occupied homes rose last month. But the National Association of Realtors says it overstated about 3.5 million sales during and after the Great Recession, showing the housing market remains much weaker than previously thought.

The private trade group says sales rose 4 percent last month to a seasonally adjusted annual rate of 4.42 million. That's below the roughly 6 million sales a year that economists say are consistent with a healthy housing market. But it's ahead of 2008's revised sales, now considered the worst in 13 years.

The nearly 4.2 million homes sold last year are far fewer than the nearly 7.1 million sold at the peak of the housing boom in 2005. This year is on pace to slightly exceed last year's total of about 4.25 million.

The trade group revised down its sales from 2007 through October more than 14 percent, from 24.8 million to nearly 21.3 million. Among the reasons for the lower figures, the Realtors group says are:

Changes in the way the Census Bureau collects data,
Population shifts and some
Sales being counted twice.

The sharp revisions could cast doubt on future sales numbers from the Realtors' group, a private trade organization that lobbies on behalf of its 1.2 million members. John Ryding, an economist at RDQ Economics, called the revisions "massive" and cited them as an example of how economic data can be unreliable.

The Realtors' group said it trusts its new figures, which were checked by government agencies and CoreLogic, the California-based real estate data firm that first raised questions about the numbers earlier this year.

Other economists said the lower numbers won't necessarily matter, since sales are up and fewer homes are sitting idle waiting for buyers. Sales have risen more than 12 percent over the past 12 months. The supply of unsold homes has fallen more than 18 percent.

More than two years after the recession officially ended, many people can't qualify for loans or meet higher down-payment requirements. Even those with excellent credit and stable jobs are holding off because they fear that home prices will keep falling. Sales are also being hurt by a decline in first-time buyers, who are critical to reviving the housing market.

The new figures show that sales fell in three of the past four years since the housing market began to drop in 2006. Declining prices and record-low mortgage rates haven't been enough to boost sales. The changing numbers could affect how economists view the trade group's data. It could also affect companies that use the figures for hiring and expansion plans.

Sales are measured when buyers close on homes. But many deals are collapsing before that point. 30 percent of Realtors say they've had at least one contract scuttled in November and October, up from 18 percent in September.

Contracts have been canceled for any of several reasons:

Banks have declined mortgage applications
home inspectors have found problems
appraisals showed a home was worth less than the bid
a buyer lost a job before the closing

The median sales price rose 2.1 percent to $164,200 in November. The high rate of foreclosures has made resold homes much cheaper than new homes. The median price of a new home is roughly 30 percent higher than the price of one that's been occupied before — twice the normal markup.

Investors are taking advantage of the discounts. Their purchases made up 19 percent of all sales last month, compared with fewer than 10 percent in healthierhousing markets.

Purchases among first-time buyers rose slightly last month to make up 35 percent of sales, up from 34 percent in October. In healthy markets, first-time buyers make up at least 40 percent of sales. These data indicates that the housing recovery is in sight.

Source:usnews.com

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Bank vs Long Island New York Homeowner – When Does A Short Sale Benefit Both?

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Tue, 27 Dec 2011 15:51:41 -0800

What is a short sale and who benefits from a short sale? Short sales used to be an infrequent type of real estate transaction, but with current economic conditions, more and more homeowners are opting for this type of sale. A short sale occurs when a homeowner sells their home for less than what is owed to the mortgage holder. There are pro's and con's for both the homeowner and the bank in a short sale.

Bank

There are several reasons why a mortgage holder, or bank, would agree to accept less than what is owed. A bank may benefit from a short sale for one or more of the following reasons:

More cost effective for the bank to accept less because it would cost more to foreclose
Banks do not want to own property
Banks are in the business of making money

In a short sale transaction, the bank or banks involved must approve any offer that is received by the homeowner. The primary bank, the one that holds the first mortgage, will review the offer received to determine whether enough money will be made in order to make it worth agreeing to the short sale versus moving forward with foreclosure procedures. This may take some time as each bank has a lot of "red tape" the offer must go through.

The New York Long Island Homeowner

There are reasons a homeowner may opt for a short sale on their home. A homeowner may benefit from a short sale for one or more of the following reasons:

Credit score suffers less from a short sale than a foreclosure
They remain in the home until an offer comes in that the bank accepts
Payments may be suspended depending on the bank's policy

To initiate a short sale, the homeowner must first contact the bank to discuss the option and learn the process the bank requires. General requirements are to provide a hardship letter outlining why the homeowner can no longer keep up with monthly mortgage payments, as well as providing earnings documentation. This should be done immediately, before the bank begins foreclosure proceedings if there have already been late payments. The bank will inform the homeowner whether or not they "may" accept a short sale, which will be dependent on any offers that are received.

The Downside

There are a few downsides to short sales. For the bank, they forgive a portion of the mortgage in exchange for receiving some of the payment in full. For the homeowner, it means possible credit history hits, as well as being a very lengthy, stressful process.

In the end, a short sale can be a beneficial alternative for distressed homeowners and banks alike. It provides the homeowner with a way to get out from under a mortgage they can no longer support, and it provides the bank with an option to costly foreclosure. It is a good idea for homeowners to consult a real estate professional as well as seek advice from a tax specialist to learn if there are tax consequences to a short sale.

Sources:LongIslandrealEstate.com

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Tax Moves To Make Before 2012 - Even During The Holidays

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Fri, 23 Dec 2011 08:33:46 -0800

With Chirstmas almost here, taxes are probably not first and foremost in your mind right now, but there are some smart moves you can make between now and the time the big ball drops in Times Square that will make a real difference with it comes time to deal with the IRS next April.

Go to the Doctor

Spend all the money in your health savings and dependent care accounts before the end of the year. If you don't use the HSA balance, you lose it, and money left in a dependent care account gets added back to your taxable income.

Health savings accounts allow you to avoid federal income tax by earmarking in advance up to $3,050 for singles or $6,150 for families for medical expenses, according to HSA for America. Pre-tax money goes into the account, and interest on it accrues tax-free. Another benefit of medical health savings accounts: portability. Your account goes where you go — which is no small matter in this economy.

Among the many things you can spend HSA money on: dental work, eyeglasses, hearing aids, contact lenses, over-the-counter drugs and visits to the chiropractor. Long-term care premiums can also be paid for from an HSA, up to $260 for those under age 40, $490 if you're between 41 and 50 years, and up to $2,600 if you're 61 years or older, according to HSA for America.

Take Income Later, Deductions Now

Postponing income is a smart strategy when your financial situation is changing and you know your tax bracket will be lower next year. So if you're lucky enough to be getting a bonus this year, consider deferring it until 2012, if your boss is willing. Or, if you own a business, hold off on billing customers until after Dec. 31. And wait to sell any stocks or investments that will hit you with capital gains until the new year.

If you expect to be in a higher bracket next year, figure out if you can pay certain bills early to allow you to claim larger deductions now. Also, consider if items like the child tax credit, higher education tax credit, the above-the-line deduction for higher-education expenses or deductions for student loan interest would be phased out at your higher 2012 income level.

If you make your January 2012 mortgage payment early, you can get the deduction for it in 2011. See if you can pay any property taxes early as well. If necessary, use your credit card to prepay 2012 expenses to capture the expense in 2011.

Don't Rush to Sell that Losing Investment

At the end of the year, investors who have realized capital gains typically look to sell losing positions to offset them. This year, your thought process may need to be different. If you're in the 15% tax bracket (up to $69,000 of taxable income for married couples, and up to $34,500 for singles) your long-term capital gains included in that amount are taxed at 0%. So think twice about selling a losing position just for the purpose of offsetting gains. Unless you have a sound investment reason to sell the losing position you will be losing the tax benefit of the capital loss. You can't reduce a 0% tax bite!

But if you do decide to sell a losing position, be mindful of capital gains distributions from mutual funds. Equity markets have been volatile recently, which may lead to above-average trading activity and larger-than-expected capital gains distributions. Most funds release estimated gains distributions in November or December, which provides ample time for investors to harvest losses, if possible.

Sources:LongIslandrealEstate.com

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Long Island NY Housing Recovery: 2012 Could Be The First Year

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Mon, 19 Dec 2011 14:32:54 -0800

From peak levels five years ago, home prices are down more than 30 percent, combined sales of new and existing homes are nearly 40 percent lower, and new home construction has plunged more than 70 percent.

However, several factors are falling into place that will support gradual progress in the coming year as long as the economy doesn't tip back into recession.

Most important, analysts increasingly believe that 2011 will mark the bottom in home prices. Most national price indexes adjusted for seasonal influences have stopped falling on a month-to-month basis.

The demand side of the housing outlook is somewhat of a paradox. Attractive home prices and super-low mortgage rates have made homes the most affordable in the postwar period. Yet, demand continues to languish. Sales of existing homes were up in October and have mostly bounced around the current level this year. NAR chief economist Lawrence Yun says that despite historic affordability and more credit-worthy borrowers, the share of contract failures is double that in October 2010. Cancellations last month were reported by 18 percent of NAR members, says Yun, up from 9 percent last year.

Tight loan standards and weak job markets in recent years have sharply reduced people's willingness and ability to start a household, which continues to weigh heavily on home demand. Since 2006, the rate of household formation has slowed dramatically. The current number of U.S. households is about 4.9 million below what the trend prior to the recession would have predicted.

The Barclays outlook expects prices to end 2011 close to 2 percent below a year ago and then increase modestly by about 1.5 percent in 2012. Those projections are similar to most, but with one key assumption: The U.S. doesn't relapse into a recession, caused by the failure of policymakers in Europe to prevent a full-blown financial crisis or by actions of U.S. policymakers that would impose excessive budget tightening next year. In a recession scenario, the analysts project an additional 7 percent drop in house prices, accompanied by a 12 percent jobless rate.

Barring that, 2012 is set to be the first year of the housing recovery, but it may not feel like one until mortgage restrictions ease and the labor markets are strong enough to offer more support.

Sources:LongIslandrealEstate.com

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Remodeling or Building New? Make Sure You Don't Overpay

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Fri, 09 Dec 2011 14:02:34 -0800

Here are some basic things you must have to get your home remodeling or new home building project ready for competitive bidding so you can be sure you're getting the best price possible.

1) Complete, detailed plans

Your local building department doesn't require much to issue a building permit. All they want to know is whether the plans meet the building code, and the code is mostly about safety – not about what kind of counter tops you want.

A set of "permit-ready" plans is missing a lot of what you need to get accurate and complete bids. You need far more information – especially drawings of architectural details inside and outside of the house.

2) Specifications

"Specs" aren't part of the drawings; drawings tell the contractor where things go, the specs tell them what those things are. The drawings will show a toilet in each bathroom, but the specs tell the contractor what kind of toilets you want. If you want a different toilet in the master bath than the kid's bath, the specs spell that out.

Without specs, you're leaving the decisions about fixtures and finishes up to the bidders – which causes confusion and misunderstanding and makes it much tougher to compare bids.

3) Bid Invitation Letter

When are the bids due? What format should the bids be submitted in? Who do bidders call with questions? Where should the bids be turned in? How many bidders are expected?

These questions – and more – should be addressed in a bid invitation letter sent out to each bidder.

4) General Conditions

There are dozens of little issues to deal with on a construction project that have nothing to do with construction, but everything to do with the price.

Insurance is one, as are working hours; parking for subcontractors; change orders; quality assurance; dispute resolution; cleaning, and on and on. A "general conditions" document spells all of this out.

5) Quality Bidders

An experienced, qualified contractor with a track record of success competing against two guys with a pickup truck and a magnetic door sign isn't going to get you an apples-to-apples comparison.

6) References

You might be surprised by how often homeowners don't check references. They can give you confidence in a contractor, but they can raise important red flags, too.

If you hired an architect to design your project, ask him if he offers this level of service. Many do, and would be more than happy to help manage the specification and bidding process for you.

The important thing to remember…three quotes based on accurate and detailed specs would result in a very good idea of what a fair price for a job should be. You can't get that kind of assurance with just one price!

Competitive bidding works the same way in new home and remodeling construction. Qualified contractors submitting bids on a well-defined project know they've got to give their best price if they want to get the job.

Sources:LongIslandrealEstate.com

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Saving The Down Payment For a Long Island New York Home

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Tue, 06 Dec 2011 16:26:26 -0800

You've been watching the Long Island NY real estate market for some time, and have decided you want to start thinking about buying your own home. Now what?

The first step is to get pre-qualified for a mortgage to give you an estimate of how much you can afford. Once you have an idea, you need to start thinking about saving for a down payment. Depending on the type of loan, you may need to save anywhere from 3% to 20% of the value of the home. Obviously, the larger the down payment, the lower the monthly payment will be.

1. Stay Motivated

Sometimes when you have a savings plan that could take years to complete, it can be hard to stay motivated. One way to stay on track is to visit open houses. Even if you're not ready to buy just yet, you can see what you'll be able to get when you reach your goal. It's so much easier to stay motivated when you can start picturing yourself enjoying your new home.

2. Automate Your Savings

Nowadays it's so easy to set up an automatic deposit into a savings account. You can set it up through your employer, by asking them to direct deposit a specific amount (or percentage) into a separate savings account. Some employers will even let you split your pay into three different accounts.

Or, you could also set up automatic transfers from your checking account to your savings fund. The benefit of doing this is that it would be easier to either cancel it (but you should avoid canceling this transfer, if possible) or changing the amounts.

3. Cut Out Un-Neccessary Spending

Almost every single article about saving money will tell you this. No need for me to explain in depth how little things add up. So, try to pack your lunch and reduce your daily, frivolous spending.

Look at ALL of Your Financing Options

You could tap into other resources you hadn't thought about. For example, you could borrow from your 401k and pay a decent interest rate. Another option is to make a penalty-free withdrawal from your 401k or your IRA, if this is your first time buying a home. However, keep in mind you will have to pay taxes on the amount withdrawn.

If you have a Roth IRA, it's even better. Since the money you put in this account has already been taxed, you don't pay taxes on any withdrawals. Also, if this is your first home, Uncle Sam won't penalize you for using these funds to buy a house either.

Of course, before you decide to do anything with your retirement funds, consult with your tax advisor.

Let Your Friends and Family Know About Your Plans

There are two reasons why this is important:

With the holidays fast approaching, they will understand that you're trying to save for a house and their gift expectations won't be as high.
You never know, they may even make a "donation" to your house fund for Christmas.

So there you go, some tips on how to make your goal of owning a Long Island NY home a reality.

Have any other tips? Please share them with us! Just click the comment link below and let us know your tips for saving that down payment.

Sources:LongIslandrealEstate.com

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Closing Steps For Buyers And Sellers

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Fri, 02 Dec 2011 15:00:52 -0800

What is a Closing? - When you have found the home of your dreams, or sold your home, you as the buyer or seller will have to appear at a meeting in which all of the final legal details will be handled, this is known as the closing.

Who goes to the Closing & where does it take place? - Others in attendance are the real estate agent(s), lender and a closing agent. The meeting usually occurs either at an agent's office, escrow agent's office, attorney's office, or at a lending institution such as a bank or mortgage company.

Main obective of the Closing - The main emphasis is to review all of the paper work, and to sign the different forms for financing, and to transfer title to the new owner. For the buyer and seller, knowing what to expect can ease concerns on the process of closing.

Seller's & Buyer's role

1. Typically the buyer will have more of a role to play in the process of closing on a house. However, the seller will have an important role as well. Usually a review of the settlement statement is presented first for both to agree upon and sign. All partries must be sure about the terms and agreements before they sign.

2. The buyer will be required to show proofs of required mortgage related or homeowner insurance, and that all necessary inspections have been completed according to the guidelines of the contract. All parties must be in complete agreement over terms and sign the documents.

3. Once this phase is completed both parties will present a certified check for the entire amount of the closing costs. The lender will present the funds paid to the closing or escrow agent, also if there are any funds due they will be submitted at that time to the lending agent.

Payment of Insurance & property taxes - Depending on the requirements that is agreed to by the buyer, the bank or mortgage company may stipulate that an escrow account be set up to pay property taxes, or a designated home insurance provider .This will be handled at the closing for the new home.

Deed recording - Other issues such as the recording of the deed will be discussed. Don't be surprised if you are informed that you don't have legal claim to the property until it is officially recorded at your local courthouse. It is to be understood that you may not move in until you have legal ownership of a clear title, and this process can take from a few days to over a week. This is why disbursement of funds to anyone involved in the transaction will not be paid until the deed recording is completed.

Read and understand all documents - If you're the buyer you will need to know what forms you will be required to sign. Take a few moments and write down a check list, and bring along copies of any paper work you have been required to sign or review. An important document known as the Truth in Lending statement will contain vast amounts of financial information for the buyer. This statement will contain information such as your interest rate for the mortgage, amount of cash financed, and your monthly payment schedules along with the total amount paid based on the length of your loan.

Detailed information will be found in other paper work for the buyer too. The mortgage note and other assigned specifications will spell out in specifics terms such as how and where the note is to be paid, and the institutions right to reclaim their rights to the property. This legal documentation will also explain that you're to meet other specific requirements, such as paying any necessary insurances and taxes yearly, that is of course if you are allowed to pay this independently, and is not part of an escrow account.

The value and importance of a good real estate agent or broker is quickly appreciated at the closing. Many of the processes involved are explained by a caring and competent professional before the closing ever takes place. Make sure though that you do your part by taking the time to ask any questions you have with your real estate broker, and studying, if necessary, your part of the process, whether you're the buyer or seller.

Home buying and selling can be a pleasant experience for all involved without a lot of hassle and grief. Just make sure you approach it with the right attitude and guidance.

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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As More Markets Stabilize, Housing Affordability Nears Record Levels for 10th Consecutive Quarter

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Mon, 28 Nov 2011 10:46:19 -0800

Buoyed by stabilizing home prices and sustained low interest rates, nationwide housing affordability during the third quarter of 2011 hovered near its highest level in the more than 20 years it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) data released today.

The HOI indicated that a near-record 72.9 percent of all new and existing homes sold in the third quarter of the year were affordable to families earning the national median income of $64,200. The affordability measure rose slightly from the 72.6 percent set last quarter and has remained above the 70 percent threshold for 11 consecutive quarters. The HOI rarely rose above 60 percent prior to this period.

"With interest rates at historically low levels and markets across the country beginning to improve, homeownership is within reach of more households than it has been for nearly two decades," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "However, tough economic conditions — particularly in markets that experienced major changes in house prices and production — as well as extremely tight credit conditions confronting home buyers and builders continue to remain significant obstacles to many potential home sales."

Lakeland-Winter Haven, Fla., was the most affordable major housing market in the country during the third quarter of the year. In Lakeland, 92.5 percent of all homes sold were affordable to households earning the area's median family income of $53,800. Other major metro housing markets ranking near the top of the index were Toledo, Ohio; Youngstown-Warren-Boardman, Ohio-Pa.; Indianapolis-Carmel, Ind.; and Ogden-Clearfield, Utah, respectively.

Among smaller housing markets, the most affordable was Fairbanks, Alaska, where 97.8 percent of homes sold during the third quarter of 2011 were affordable to families earning a median income of $91,700. Also ranking near the top were Kokomo, Ind.; Cumberland, Md.-W.Va.; Davenport-Moline-Rock Island, Iowa-Ill.; and Lima, Ohio.

New York-White Plains-Wayne, N.Y.-N.J., led the nation as the least affordable major housing market during the third quarter of 2011. In New York, 23.3 percent of all homes sold during the quarter were affordable to those earning the area's median income of $67,400. The New York metropolitan division has held the least affordable market position for the last 14 quarters.

Other major metro areas near the bottom of the affordability index included San Francisco-San Mateo-Redwood City, Calif.; Honolulu; Santa Ana-Anaheim-Irvine, Calif.; and Los Angeles-Long Beach-Glendale, Calif., respectively.

Ocean City, N.J., where 41.7 percent of the homes were affordable to families earning the median income of $70,100 was the least affordable of the smaller metro housing markets in the country during the third quarter. Other small metro areas ranking near the bottom included Santa Cruz-Watsonville, Calif.; San Luis Obispo-Paso Robles, Calif.; Santa Barbara-Santa Maria-Goleta, Calif.; and Brownsville-Harlingen, Texas.

Source: National Association of Home Builders

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Great News - Home-builders' Confidence Increase

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Tue, 22 Nov 2011 14:12:50 -0800

Homebuilder confidence in the market for new single-family homes rose by three points to 20 on the National Association of Home Builders housing market index for November, the second consecutive monthly gain. The NAHB said the number builds on a revised three-point increase in October, and brings the confidence gauge to its highest level since May 2010. The trade group also predicted more gains next year.

"While this second solid monthly gain on the builder confidence scale is encouraging, the overall measure remains quite low due to the many challenges that homebuilding continues to face with regard to the high number of foreclosures, the difficulties of obtaining construction financing and accurate appraisals, and the restrictive lending environment that is discouraging potential buyers," said Bob Nielsen, NAHB chairman. NAHB Chief Economist David Crowe said some buyers are being tempted back to the market by affordable prices and low interest rates.

"We are anticipating further, gradual gains in the builder confidence gauge heading into 2012 due to these pockets of improving conditions that are slowly spreading," Crowe said. The index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as good, fair or poor. The survey also asks builders to rate traffic of prospective buyers. Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The component gauging current sales conditions rose three points to 20 — its highest level since May 2010 — while the component gauging future sales expectations rose two points to 25 — its highest level since March. The component gauging traffic of prospective buyers rose one point to 15, its highest since May 2010.

Source: The Housing Wire

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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3 Ways To Avoid Mortgage Mistakes

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Thu, 17 Nov 2011 18:37:57 -0800

Anyone who has ever bought a home will tell you, emotion plays a big role in the decision. However, if you don't approach the home buying process in a smart way, you could end up making some major mistakes. Most mistakes that Long Island New York home buyers make is in getting a mortgage. Here are three things to do, to avoid mortgage mistakes.

1. The first thing you must do is get a good mortgage broker - There are many lenders available for a mortgage if you have decent credit, and it can be very confusing if you are going it alone. A mortgage broker has experience and connections to find you the very best rate available. The value of the home you are purchasing is only part of the cost, and even a small difference in mortgage rates can make a huge difference in savings.

2. Get pre-qualified for your home loan - There's nothing worse than finding your dream house, only to realize you can't afford it. Before you look for a house, get pre-qualified, or better yet, get pre-approved. Have all the pertinent information, such as, employment history, credit history and outstanding debts available, because your mortgage broker is going to need them. The best mortgage lender will then be able to tell you exactly how much you will qualify for.

3. Keep an eye on the economic market -. Buying a home when the market is lean like it is now is a very smart move, if you can afford it. Home values rise and fall with the economy, so if you buy a home when the economy is low, chances are very good the home will increase in value and you'll realize that appreciation later on.

Sources:LongIslandrealEstate.com

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Special Loan Programs For First Time Long Island NY Home Buyers

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Mon, 14 Nov 2011 21:05:39 -0800

For first time Long Island NY home buyer's, the loan process can be extremely intimidating. When you're buying a home for the first time, you will likely be bombarded with advice from family members, co-workers, and friends, much of which is either inaccurate or not applicable to your particular needs. Acquiring first-hand knowledge of the loans available to a first time home buyer is the best course of action to take. This means scheduling a meeting with a loan or mortgage officer.

Many first time home buyers utilize the Federal Housing Authority (FHA) loan product. FHA has guidelines that must be met in order to qualify for the loan. These guidelines vary depending on which state you're buying a house in. Here's a quick overview of what to expect:

loan limit as to how much the buyer can borrow
the down payment must be 100% from the borrower's funds
income limits
the borrower's debt to income (DTI) ratio must be at a certain level

Additionally, there must be an appraisal conducted on the home the borrower wants to purchase. The appraiser must be FHA certified and will complete a report with FHA specific items on it.

Properties purchased with a FHA loan must meet minimum property standards. Structural and mechanical systems must be in working order including the roof, heating, plumbing, and electrical for an FHA loan to be approved for the purchase of a home. Any deficiencies are noted on an FHA appraisal and must be corrected prior to closing.

First time home buyers may also utilize conventional loan products, generally requiring more of a down payment than the FHA loan. Oftentimes, these conventional loans are not practical for the first time buyer simply because they have not owned a home before and therefore have not been able to build up equity to utilize as down payment when purchasing another home.

Special loan products may also be available for first time home buyers who fit into one of the following criteria: teachers, police officers, firemen, or military. Again, a loan officer will have knowledge of any special type of loans, some of which are found at the local level and offered by municipalities, private organizations, or other banks.

As an example of one of these special loan products, a very popular first time buyer loan for those who serve or have served in the military is the Veteran's Administration (VA) loan. A certificate of eligibility must be acquired from the VA and presented to the loan officer in order to begin the process. Like the FHA loan, there are certain criteria that must be met and guidelines to follow.

The best way to discover which first time home buyer loans are available and which one is the best one to utilize is to meet with a loan officer. He or she has the knowledge about these loans as well as dozens of other loans that might be suitable. There is plenty of stress and anxiety that goes along with purchasing a home. Relieve some of that by sitting down with a professional loan officer to find out exactly what programs for first time home buyers are available to you. If you need help finding a mortgage or loan professional, we can offer you some assistance, as we have experience dealing with many lenders for many different mortgage situations.

Sources:LongIslandrealEstate.com

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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New Harp Guidelines Is Good For Underwater Homeowners

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Thu, 10 Nov 2011 18:53:03 -0800

While hundreds of thousands of mortgage borrowers have been able to squat in their homes without making a single mortgage payment in months or even years, many responsible homeowners who have good credit and consistently meet their monthly obligations haven't been able to refinance in order to avoid losing their homes.

Many of today's homeowners purchased their homes during a time of easy credit, when mortgage products, like interest-only loans and option adjustable-rate mortgages were issued to the marginally qualified. And many were told that — if they made their payments faithfully — they could easily refinance out of these products into affordable fixed-rate loans once the payments started to balloon.

But that day has never come for some borrowers — no matter how good their payment record or credit score. Many lenders are refusing to refinance underwater mortgages — loans that are higher than the value of the home — because it would mean big losses for them if the borrower defaults.

According to data submitted to federal regulators and analyzed by the Wall Street Journal, nearly 27% of mortgage applicants were denied mortgages in 2010, up from 23.5% a year earlier.

The cruelest twist? Lenders typically wait until a homeowner is in default before they are willing to modify their mortgage.

For some homeowners, the clock is ticking. In 2011, $1 trillion in adjustable rate mortgages are scheduled to reset. And many are scrambling to refinance their mortgages while rates are still low

Good news for underwater homeowners, President Obama has revised HARP program.

Announced by the President, October 24, 2011, the Home Affordable Refinance Program has been updated allowing more homeowner’s to take advantage of the program.

The New HARP Mortgage Program Guidelines have several benefits for home owners:

1. The program has been extended until December 31, 2013.

2. The maximum Loan to Value (LTV) cap has been removed on home owners looking to refinance in to a fixed rate mortgage.

3. Homeowners looking to refinance in to an adjustable rate mortgage the maximum LTV is set at 105%.

4. The appraisal process has been streamlined; in cases where an Automated value can be determined an appraisal would not be required.

Sources:LongIslandrealEstate.com and harp-mortgage.com

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Property Taxes Set To Increase Next Year

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Tue, 08 Nov 2011 15:57:42 -0800

Get ready for record property tax rate increases next year as cities and counties across the nation cut their budgets to the bone and scramble for every tax dollar they can find.

So you thought lower property values meant lower property taxes? Welcome to the world of local government where property value declines take three years or more to show up in the tax bill and when they do your local government must raise tax rates to make up for its lost revenue.

The huge 20 or 30 percent declines in property values that took place in 2006 and 2007 took a long time to make an impact on homeowners’ bills because of the way local governments assess properties. But those big drops are finally being felt and local governments are screaming.

It stands to reason that those local governments that can raise property taxes are quietly preparing boosts in their property tax rates to make up some of the difference. Many cities are precluded from raising rates by local and state laws like California’s Prop 13 that make it difficult to increase property tax rates. However, this year 20 percent of cities increased their property taxes, according to the NLC survey, which will be felt in next year’s tax bills. Next year the outlook is that another 20 percent will raise tax rates

According to a survey released last month by the National League of Cities, city revenues are continuing to fall 2.3 percent by the end of this year, making 2011 the fifth straight year of declines in revenue with probable further declines in 2012. The revenue decline is mainly due to the fall off in property tax revenues, which are expected to decline by 3.7 percent with further declines likely in 2012 and 2013.

Cities are responding by cutting personnel (72 percent), delaying infrastructure projects (60 percent) and increasing service fees (41 percent). One in three (36 percent) cities report modifications to employee health care benefits.

“The cuts in personnel and the delaying of infrastructure projects are prudent and responsible actions by local officials,” said Donald J. Borut, Executive Director of NLC. He continued, “City officials are a making difficult decisions and are working hard to find innovative solutions to reenergize their communities. But without more resources and more cooperation, the outlook will continue to be challenging.

Source: Real Estate Economy Watch

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Open Houses: How to Make the Most of the Visit

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Fri, 04 Nov 2011 15:16:29 -0700

Open houses are a great opportunity for both the buyer and the seller. It gives the seller the chance to showcase their home and the buyer can view the home in all its glory. Buyers love to scope out potential homes. After all, open houses are really sales presentations. In order to have a successful open house, there are some tasks that should be completed by the seller beforehand.

The most obvious task is cleaning. The house should be spotless, including appliances. If you work full time and don't have time to get the house cleaned properly, hire a house cleaning service. The money spent is well worth it if you are able to sell quickly. It might be hard to keep it clean if you are still living there, but you must make a concentrated effort to try. Your home presentation must be impeccable.

Keep foul and mysterious odors away. The first thing a potential buyer will notice is an offensive odor and you will probably never see them again. Regularly inspect your home for potential odor sources and keep a steady supply of candles and air fresheners on hand. If you have an indoor cat, keep the litter box out of sight and scooped out daily.

Clutter is a major turnoff to potential buyers. It just isn't very enticing to see piles of clutter everywhere. Keep small appliances stored instead of out on the countertops. Remove photographs and knick-knacks. You want people to envision their belongings in the house. Clean out and organize the closets. If there is no reason for something to be displayed, get rid of it.

If you can, remove non-essential furniture to make the rooms appear larger. Spacious rooms are more appealing to the eyes. Keep your boxes of junk stored out of sight. It is a good idea to start figuring out what you need and what you can live without. It would be a good idea to have a garage sale before you put the house on the market. If you can't bear to part with anything, rent a temporary storage unit.

You cannot ignore the outside of the house either. The outside presentation has a major impact on the buyer. Clean the leaves out of the drain gutter, don't let garden hoses or other tools pile up outside. Pick them up and store them elsewhere. Make the effort to beautify the front entry. If the door handle is rusty or the whole door looks junky, get a new one. Keep the flower beds neat and free from weeds.

Look at the walls and try to put yourself in the buyers' shoes. How would you look at the walls in someone else's house? Is the paint chipping or is the color outdated? It would be well worth your time to give the walls a fresh coat of paint. Nothing makes a room come alive more than a fresh coat of paint. Give the rooms a little bit of a makeover with new decor that compliments the wall colors. If you have a garden, bring in some fresh flowers and put them in attractive vases.

Establish a pleasant atmosphere by baking bread or cookies. Candles add a nice touch along with background music. Classical or jazz music are both good choices. You want to convey style and elegance to your audience. First impressions go a long way.

When trying to sell your house, you should be prepared for a showing at any time. Last minute requests are very common and can turn into offers. You have the option to request 24 hours notice before a showing, but in doing so you limit your home's exposure. Try to be as flexible as possible. Accommodating the hectic schedules of a potential buyer will make you and your home look that much better.

It is a good idea to not be present for the showing. Buyers might not feel comfortable in your presence or they might be afraid to ask a particular question for fear of offending you. If they can't view the house fully, they will probably just move on to the next one. You don't want that. They are supposed to fall in love with your house.

Source:LongIslandrealEstate

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Renters Outspend Owners on Housing

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Tue, 01 Nov 2011 09:27:43 -0700

Renters now spend five percent more of their household budgets on housing costs than do homeowners, and the difference is growing as rents rise.

Since 2005, homeowners’ expenditures for housing have risen from 31.9 percent of their household budget to 33.2 percent, but renters’ costs have risen even more from 35.6 percent to 38.4 percent, according to the October CoreLogic U.S. Housing and Mortgage Trends.

Since 1985, homeowners have increased their housing expenditure allocation by 12 percent, while renters increased by 22 percent.

As consumers allocate more of their expenditures toward housing, they have less money to spend on non-housing consumption. The largest decline in a household’s budget occurred in transportation expenditures which fell by 17 percent and 22 percent since 1985 for homeowners and renters, respectively, CoreLogic said.

The increased spending allocation for housing, which is largely due to the stagnation of incomes among Americans of home buying age beginning in the 1990s, has actually contributed to the decrease in homeownership by making buying a home more difficult.

Demographics have also contributed to the decline in homeownership. For the 25 to 34 age group, the homeownership rate fell from 51.6 percent in 1980 to 42.0 percent in 2010. For 35 to 44 year olds, homeownership rates fell from 71.2 percent to 62.3 percent over the same time period.

The CoreLogic report also found that a significant number of foreclosures are remaining on the market for as long as four years or more. One out of five REO foreclosures (21 percent) are taking more than a year to sell. Nearly 10 percent, or 23,200 properties that were auctioned in 2006, remained in REO as of Q2 2010. In other words, these properties have been in REO continuously since 2006.

Source:realestateeconomywatch.com

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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4 Tips For First Time Home Buyers

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Fri, 28 Oct 2011 18:50:11 -0700

Are your family and friends always telling you that now is the perfect time for you to invest in Long Island real estate?

Maybe you've already considered the benefits of home ownership. The decision you make regarding buying your first home can be risky, for sure, but if you'll follow these simple tips, your nervousness about the first time home buying process may be eased just a bit.

1. Define Your Search Parameters

You can begin the home search process using the Internet. Most interested home buyers actually use the Internet first before they contact a real estate agent when looking for homes simply because it is quicker and more accessible. You can even search for homes for sale using our site, but after making a quick search, you will be able to find real estate that might be of interest to you. There are lots of homes for sale in the MLS that includes homes for sale which are viewable through pictures, virtual tours and aerial photographs of the neighborhood. If you have limited budget, it is also easier for you to sort these homes depending on the price range you can afford.

2. Home For Sale Visits

Visiting 20 to 30 homes per day is not advisable. You should limit your visits to six to seven per day. You may not be able to make the most out of home viewing when you force yourself to see too many houses in a day. You may not be able to remember the significant details in each property you go into and that might not help when you start picking the right home for you. Make sure you eat enough food before viewing homes so your brain will work well during the process. It's hard to concentrate on things when you're hungry, and this is too big of a financial purchase to make the wrong decision because you weren't thinking clearly.

3. Neighborhood Observation

Looking at a particular property in and of itself is not enough when you're buying a home. You should also check the location of the property and the neighborhood to make sure you will be getting a good deal for the house. Is the location near the important establishments in the community? Do you need your house to be near schools or your workplace? How about the traffic in the neighborhood? Location is a very significant factor that sets the market value and demand of the house. If you have plans to sell the house in the future, make sure it has good resale value.

4. Working With an Agent

You have the option to either buy a house with or without the help of a real estate agent. If you think you already have the skills and knowledge required to successfully buy a property, then you can choose not to get an agent. But for first time home buyers, it is very advisable to have an agent assisting and guiding you throughout the process.

These are just a few of the "getting started" tips for first time home buyers. We encourage you to do more homework by browsing this site and looking for more home buying tips

Source:LongIslandrealEstate

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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Mortgage Costs to Watch Out For

Ira Freireich, Excl Buyer Agent (Best Buyer's Broker Realty) — Tue, 25 Oct 2011 16:25:23 -0700

Faced with plunging property values and rising defaults, lenders are charging borrowers higher mortgage rates and adding fees. Not all of these added costs are set in stone, however. If you're looking for a loan, vigilant shopping and a little haggling can go a long way toward landing a better deal.

Here are some fees you need to watch out for:

1. Application Fees - Just because an ad says "no application fee" doesn't really mean there's no fee to get the loan. Fees paid outside of closing typically include an application fee, an upfront property appraisal fee, and a credit check. They might be disguised as something like a "document processing fee" or "doc fee."

2. Risk Adjust Rates - Getting deemed a risky borrower is no longer just a matter of a low credit score. Lenders now consider other risk factors. Buy in an area that has seen values drop precipitously and you can expect a higher interest rate.

3. Down Payment Penalties - The days of zero down on a mortgage are long gone. Without a down payment of at least 20%, prospective home buyers will undoubtedly be hit with a higher interest rate and need to pay for more points. (Each point usually amounts to a fee of about 1% of a mortgage.)

Also, if buyers can't put 20% down, they'll need to get private mortgage insurance, which typically costs 0.5% of the loan. Shopping around for lenders with more-favorable points and insurance charges can help lessen the blow.

Closing Costs

Closing fees amount to 2% to 5% of a home's price. Location plays a big role, as taxes and other requirements vary by state. Some states require expensive attorneys to oversee the closing process, while others allow a title agent or escrow officer.

Good-faith Estimates

Ask potential lenders for a good-faith estimate of closing costs. Then check in weekly with whoever is handling the closing to see whether there are any changes in either lender or third-party fees.

If you need a place to start looking for a dependable mortgage expert, contact us. We work with many lenders and can give you a few names and numbers to get you started looking for the best home mortgage.

Source:LongIslandrealEstate

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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.

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