What a difference a state makes

By
Real Estate Agent with Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com 10301213186
https://activerain.com/droplet/4QqD

I recently sold a house in the state of New Mexico with the help of a skilled real estate agent (thanks Rich Cederberg!), and as both a New York real estate agent and the seller of a home in another state, I can say with certainty that real estate certainly is local.

 

Most of the time when we talk about the local nature of real estate, we are talking about price points or home styles. Real estate professionals know that the price range for a 4 bedroom, 3 bath colonial with an acre of land can be dramatically different from town to town and even from street to street. But in addition to varying price points, the process for purchasing and selling a home can be significantly different from area to area. And in this case, there were some big differences in the way real estate works between my area in New York and the Albuquerque area of New Mexico:

 

 

Monroe, New York

Albuquerque, New Mexico

Closing

Roundtable closings are the norm. The sellers, buyers, seller attorney, buyer attorney, title company, bank attorney and real estate agents are usually in attendance. All need to be available for the closing on the selected date, and this can sometimes delay closings for weeks. Time required – 1-4 weeks.

Closings are done separately by escrow company and buyers and sellers do not need to meet. In my case, a notary public appeared on my doorstep with a package of infor-mation that needed to be signed. Twenty minutes later, he left with all signed forms and a copy of my identification. Time invested – 20 minutes. Convenience - priceless

 

Costs

Sellers in NY have significantly fewer costs at closing: The costs in NY are typically the following:

  • Real estate commission
  • New York state transfer tax ($2/$500 of purchase price)
  • Prorated property taxes

Seller costs in NM, while negotiable, are typically much more extensive:

  • Real estate commission
  • Appraisal fees
  • Inspection fees
  • Title search
  • Title insurance
  • Prorated taxes
  • Pest inspection
  • Survey

Time Commit- ments

In NY, unless there is an unusual situation, dates that are negotiated between seller/ buyer and their agents are typically treated as “target” dates by everyone else involved in the process. It is unusual for closings to happen on the date defined in the purchase agreement.

 

In NM, a date is a commitment. If a response is due by the seller on the inspection requests by Wednesday at 5pm, that’s when the response is due. And if it’s not provided, the deal can be canceled.

 

Attorney Involvement

In NY, attorneys are a required part of every transaction. Agents and their clients will negotiate the agreement, and then the purchase agreement (a one page overview) will be sent to the attorneys for the preparation of the contract, usually after the inspections are complete. While there are exceptions, the attorney process can add quite a bit of time to the transaction (subject of another blog!)

In NM, while attorneys are certainly an option, the standard transaction does not utilize separate attorneys for the buyer and seller. The contract can be completed in a day or two in NM, compared to up to a month in NY.

 

The important takeaway from this overview is that real estate truly is local. That statement doesn't just refer to the price points, home style, and amenities, but the buying and selling process as well. If you are purchasing or selling a home for the first time in a particular location, it's critical that you hire a real estate agent who is familiar with everything about the local real estate market. If you are in the Monroe NY or Orange County NY area, feel free to contact me on 914-419-0270 or at kat@thehousekat.com. I can help!

 

 

Posted by

 

Kat Palmiotti, The House Kat

Licensed Associate Broker, CBR®

Grand Lux Realty, Inc.

428 Main Street

Armonk, NY 10504 *

* still supporting Monroe NY, Orange & Rockland counties.

 

914-419-0270 (cell)

email: kat@thehousekat.com

www.thehousekat.com

facebook    Kat's Homes

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Rich Cederberg 04/16/2016 01:37 AM
Topic:
Real Estate General Information
Tags:
real estate is local

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Rainmaker
3,184,740
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Pays to have a local expert and trusted referral source with out of state transactions !

Apr 05, 2016 06:04 AM #1
Ambassador
2,848,810
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

And let me throw GA into your side by side... we have the round table closing, sellers only pay the commission (and buyer costs negotiated), takes a week to 35 days depending upon if we're waiting on a loan or not and attorneys do title search and close. They represent buyer in cash transactions and lender in loan transactions. 

Apr 05, 2016 07:02 AM #2
Rainmaker
1,206,067
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Interesting side by side comparison Kat Palmiotti 

When I sold my parents' home 65 miles away I used local agent.  She knew the market & actually found the buyer as well.

Apr 05, 2016 07:33 AM #3
Rainmaker
1,563,010
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

Great chart to show the difference between two "norms" Kat Palmiotti . Congrats on your long distance sale.

Apr 05, 2016 08:00 AM #4
Rainmaker
1,034,266
Mark Loewenberg
KW of the Palm Beaches - Palm Beach Gardens, FL
KW 561-214-0370

yes ny has a very unique way to process their transactions!  here in florida we are very similar to NM

Apr 05, 2016 10:33 AM #5
Ambassador
428,935
Rich Cederberg
eXp Realty - Albuquerque, NM
eXp Realty Agent Albuquerque

It was an interesting project for me too as we compared notes.

We have MLS rules that basically come down from the NAR, seems like there ought to be some common ground for the contracts too. It's not like properties aren't bought and sold by people out of state all the time, right?

Thanks for the opportunity  to help you! 

Apr 05, 2016 12:02 PM #6
Ambassador
2,549,840
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Our closings here in CT are very similar to your in New York except for the cost f selling with regards to the state's bit.  Ours is $1.25/1000

Apr 05, 2016 12:33 PM #7
Rainmaker
558,405
Women of Westchester Working Together
Women of Westchester Working Together - West Harrison, NY
Women helping Women get ahead

Yes, very different.  Our process seems to take longer.

Oh, and I didn't realize about that $2 for every $500.  Wonderful.  Not.

Apr 05, 2016 01:43 PM #8
Rainmaker
3,172,705
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kat having sold Real Estate in Boston MA virtually identical to NY .... and selling Real Estate in Los Angeles is virtually identical to  New Mexico... it is different indeed, Endre

Apr 05, 2016 04:42 PM #9
Rainmaker
1,401,904
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Sally/David - It sure does!

Tammy - Wow, a week! Thanks for sharing.

Mary - That was a great way to do it.

RealMan - Thank you!

Mark - I preferred the ease of NM.

Rich  - Thank you!

Ed - That's a little better. I'm not a fan of those taxes.

Debbie - Not is right!

Endre - And I'll bet a 50 state comparison would be a crazy mix of differences also!

 

Apr 05, 2016 08:09 PM #10
Ambassador
3,981,932
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Those are big differences Kat. NM operates much like TN and there are very defined responsibilities of each party to the contract. Dates are critical. Thanks for the comparision.

Apr 05, 2016 10:55 PM #11
Rainmaker
1,844,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Kat - you made your point.  Real estate is locate to the point of count and town.  You need someone who knows.

Apr 11, 2016 04:24 AM #12
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