What a difference a state makes

Reblogger Rich Cederberg
Real Estate Agent with eXp Realty

Real estate is hyper-local. Not only do home values and market conditions vary from city to city and state to state, so do real estate procedures. If you have  a property to sell in another state, whether it's a rental property or a property that was inherited, it's important that you have a thorough conversation up front with the real estate professional that you choose to understand what is standard practice in the area.

This post from Monroe real estate agent Kathleen Palmiotti outlines some of the differences in fees and procedures between her market and my market in Albuquerque NM.

Original content by Kat Palmiotti 10301213186

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!

 

 

 

Kat Palmiotti, The House Kat

Licensed Real Estate Salesperson, CBR®

Better Homes & Gardens Rand Realty

Monroe, NY Real Estate

914-419-0270 (cell)

email: kat@thehousekat.com

www.thehousekat.com

facebook    Kat's Homes

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,414,115
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Thanks for the reblog! 

Apr 16, 2016 02:13 AM #1
Rainmaker
4,038,002
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Rich, it is amazing how we all differ so much, especially the East and West.  Great post Kat did!  

Apr 17, 2016 12:10 AM #2
Rainmaker
563,700
Fred Hernden, CMI
Superior Home Inspections - Greater Albuquerque Area - Albuquerque, NM
Albuquerque area Master Inspector

It is enlightening to see the differences in different locations. For me, it was a wake up call as well. The thing that I have a hard time getting used to is having the seller pay for the Home Inspection. I have had some problems getting paid when or if the sale is not completed. The sellers don't like to pay, especially if they are investors, or flippers. I am chasing one now that I inspected over two months ago!

Apr 17, 2016 12:41 AM #3
Ambassador
428,985
Rich Cederberg
eXp Realty - Albuquerque, NM
eXp Realty Agent Albuquerque

Just to clarify, in my opinion, sellers should only be paying the home inspection if it's a first time home buyer using a program like the MFA program, or if it's a pre listing home inspection, but it is often negotiated. In the case of this transaction the buyer went above list price to compensate for some additional costs and contributions.

Fred, I almost always make sure home inspectors are paid at the time of inspection, letting the seller pay you at closing is a bad way of doing business. If you were getting stiffed I'd pay you myself and call it the cost of doing business! 

Apr 17, 2016 12:55 AM #4
Rainmaker
563,700
Fred Hernden, CMI
Superior Home Inspections - Greater Albuquerque Area - Albuquerque, NM
Albuquerque area Master Inspector

Rich, I definitely was not implying anything about anybody in particular... I was merely stating a difference between the states. I KNOW how conscientious and thoughtful you are dealing with everybody in the transaction, not just the Home Inspectors, and I thank you for that. Not everybody is as thorough and aware as you are. Personally, if I were a seller and an agent asked me to pay for the Home Inspection, I'd tell them to take a hike! 

Apr 17, 2016 10:18 AM #5
Rainmaker
2,741,823
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

What a difference it does make indeed and I wouldn't expect it any other way necessarily. All the best

May 07, 2016 04:44 PM #6
Rainmaker
2,741,823
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I might tell them to take a hike as well! Love and light! All the best!

May 07, 2016 04:45 PM #7
Ambassador
4,104,941
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Always interesting to read how the different governments and local customs can affect deals in different states.

Congrats on the sale Rich and Kat!

May 10, 2016 03:08 PM #8
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
428,985

Rich Cederberg

eXp Realty Agent Albuquerque
Ask me a question about Albuquerque Real Estate!
*
*
*
*
Spam prevention

Additional Information