Avoid This Common Long Island Buyer Mistake

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Today, we will discuss a common buyer mistake. I actually ran into this problem recently, so let me tell you the whole story.

Wednesday night, I received a message from a friend of mine who claimed that her friend’s daughter is having an awful time trying to find a home. I cannot stress enough how often I hear this. I reached out to her friend via text message because it was fairly late and I didn’t want to disturb her. The message goes  like this: “Hi, so-and so. Someone mentioned to me that your daughter is having trouble finding a home.”

I asked about the problem, and the response was, “She needs a three bedroom home. They’re not afraid to do work, but they also have to be able to live in.”

Now, that is a description of what they are looking for, not the problem they’re having. I said, “Okay, they’re having a hard time locating a home like that?”

The response: “Yes. Also, every time they find a house, it’s already in contract or an offer has been already made. It’s very frustrating.”

That is frustrating. I asked if they had been working with one agent the whole time or different agents for each home. What I was trying to do was determine whether the problem was one agent’s inability to obtain a home for them or lack of loyalty to an agent.

This nice lady said they were looking with different agents. Right then I knew that one of the problems is they don’t have an agent working for them. The agents they are trying to deal with work for the sellers. That makes the entire process very difficult and clumsy. They have to fight for knowledge and they are in the dark about what is actually going on. I followed up by asking if the daughter would like to sit and talk about buying a home.

The response was she is incredibly busy and didn’t know when she could. This daughter was expecting a baby and running her own business, which means she probably needs a write off. To me, the motivation is there, but the reality is, she doesn’t have time. If you don’t have time to dedicate to searching for a home, that can be incredibly frustrating.

I said I understood and if she wanted a professional, I would make myself available.  Now, I decided a very long time ago that I will not be that agent who runs around searching for a home without even knowing what that person wants in a home. In this situation, it sounds like there are too many cooks in the kitchen.

The takeaway today is work with a professional agent and do your due diligence when you’re looking for a home. Have a consultation with your agent so they know your time frame, motivation, and what you’re looking for in a home. Don’t run around dealing with seller’s agents. Work with a buyer’s agent.

If you have any questions about today’s video, just give me a call or send me an email. I would be happy to help you.

Is Your New Long Island Home Ready for You to Move In?

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Today, we’re going to discuss eight things to do before moving into your new Long Island home.

1. Change the locks. You don’t know who has a key to the property, so ensure to change the locks out.
2. Clean the new space. Do a real deep clean. You don’t want to live in someone else’s mess. 
   
3. Clean carpets, windowsills, and floors efficiently. It’s much easier to do this before you bring in all your furniture into the home. 
   
4. Clean the ducts, chimney, and filters. Oftentimes, the furnaces and central air units have dirty filters. If you don’t clean or replace them, you’ll be blowing someone else’s dust around your new home. 
   
5. Paint the space. Consider bringing in a professional painter who edges exceptionally well. Painting changes the whole look of the space and this is an opportunity to transform it entirely. 
   
6. Buy new appliances. Again, appliances tend to be dirty after years of use, so start off fresh with some new appliances. 
   
7. Install window treatments. This can really make the difference right here.
8. Check for leaks. Run the sinks and check the basement. Water is the number one issue a homeowner has with insurance companies, so beware of water and especially of any possible leaks.
   

If you have any questions, give us a call or send us an email. We would be happy to help you!

Everything You Need to Know About Escrow Accounts

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A lot of my clients seem to ask me about escrow and escrow accounts. It’s a bit of a confusing topic, so I would like to clear a few things up today.

An escrow account is basically a third-party account set up during a real estate transaction so that the transfer of money to seller from the buyer can be handled safely by a third party. Basically, it’s an account for buyers to put money into in order to pay for a seller’s home.

Another form of an escrow account is when you have a mortgage that you’re paying to the bank. You’re giving them money and they’re depositing it in there, but you’re also giving them 1/12th of your property taxes and they will be paid out twice per year.

Another escrow account is one that might be opened up by two real estate attorneys in order to take care of something that was necessary with the home after the purchase and the closing has taken place. A common example might be an open certificate of occupancy. Maybe a homeowner added a shed, and the buyer wants some insurance to know that are funds available if something goes wrong while he/she owns the home.

These are a few different examples of what escrow accounts can do and be used for. I know it’s all a bit complicated, so please don’t hesitate to ask me any questions. 

The Difference Between Pre-Qualification and Pre-Approval

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Today, we’ll talk about the difference between getting pre-qualified and pre-approved for a mortgage. When a pre-approved or pre-qualified client approaches me, I need to first find out which one they actually are. There’s a clear difference.

For pre-qualification, a buyer contacts a lender with financial information and the lender bases their decision off these numbers. This model relies heavily on information provided by the buyer directly. No pay stubs, W-2s, credit score report, or similar paperwork are involved for the lender to make this decision. While the buyer may still be honest with the lender, it’s not official.

For pre-approval, documentation is required to make a decision. This is what you really want. A buyer created a relationship with a lender by giving them required paperwork. There’s documentation attached to the information they provide. The lender has the opportunity to discuss a buyer’s work history and any debt to understand the loan. The lender then determines whether or not a buyer could afford a certain mortgage.

There’s a vast difference between the two processes! You’ll want a pre-approval letter over a pre-qualification as a buyer. If you’re not submitting paperwork, you are not pre-approved, but instead, only pre-qualified.

If you have any questions about this topic, or if you need real estate assistance of any kind, please don't hesitate to reach out to us!

How to Buy a Home in Long Island

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Today I'll go over the steps to buying a home in Long Island. From the outside, purchasing a home may seem like a long and tedious process, but once you have a basic understanding, it seems much less intimidating. 

Get approval from a reputable lender:
This is the most important part of the buying process. Once you know how much you can afford, it makes the process of searching for a home much easier. You'll also become a much more desirable buyer in the eyes of a seller once you have a pre-qualification letter in your hand.

Find a buyer's agent: 
It's important to work with one agent and form a relationship with them. This allows the agent to find homes that you want, and it makes the process of communicating much more efficient. Define what is important to you and let your agent know.

Locate the home that you want and put in an offer: 
Once you have found a home, you need to place an attractive offer on it (a good price with good terms) and get some inspections done. You'll want an engineer inspection in order to tell you what may need to be fixed and what maintenance needs to be kept up. 

After the inspections you'll receive contracts from the seller's attorney: 
You will sign these contracts with your down payment and send them back to the seller, who will also sign them. Once this happens, you're in full contract and the loan process can begin. This will take 30-60 days in Long Island, but after this, you're a homeowner! 

This was a brief run-through of the home buying process, so if you have more detailed questions about buying homes in Long Island, please don't hesitate to contact me.