How Do Short Sales Work?

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I’m asked quite often about short sales, so I’d like to discuss them with you today.

A short sale is what happens when a homeowner or a seller owes more money on the home they are selling than what a buyer would potentially pay for it. 

If, for instance, a seller owes $400,000 on their home but is looking to sell it for around $300,000, they would be considered upside-down on the property. A short sale would take place when they notify a Realtor that they’re looking sell, the house hits the market, and the seller is fully aware that they will have to negotiate with their current mortgage company to allow them to move on from the property after they find a buyer willing to pay fair market value.

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A short sale happens when a seller owes more on their home than what it’s worth.

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This is a very brief summary of a short sale, so if you’re finding yourself interested in the idea of a short sale while you’re searching for a home, please give me a call or send me an email for a more in-depth explanation about what kinds of control you do and do not have as a purchaser.  I hope to talk to you soon!

How to Determine Home Values with Data on Long Island

I wanted to talk today about what exactly a market analysis is. You may also hear it referred to as a CMA (current market analysis).

It really consists of all the data from your neighborhood related to homes selling, failing to sell, or going under contract which affect the value of your home. Be warned, though; while this information is very useful, it should only be interpreted by professional Realtors who are very familiar with marketing, market analysis on home trends, and what's going on in your specific neighborhood.

I personally don't like using the term "comp," which is short for comparable, for a home that's similar to yours that recently sold. Every homeowner is really specific with the upgrades they have made and the individual care they take of their home. It's really difficult to say that a home nearby is "just like yours." I try to avoid doing that.

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I always suggest that my clients have a plan B in case things don’t line up.

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The most important thing in understanding market trends and market value is to really zero in on the buyer behavior. Track what buyers are looking for in a particular area or neighborhood like layout, spacing, the yard, or the school district.

That's why it's so important to hire a Realtor who understands what buyers are willing to spend for your home today. Feel free to contact me for a more in-depth look at your home and neighborhood if you're looking to sell.

How to Buy and Sell a Home Simultaneously

In the super-hot market we’re in right now, lots of people are calling me asking, “Hey Jeff, how do I sell my home and actually buy another home without being homeless?” That’s definitely a fair question. There are three ways to accomplish this:

1. Purchase a new home first and take your time selling the old one. Since lots of folks either aren’t able to carry two mortgages or don’t want the stress of doing so, this is the least common way to accomplish that.
2. Obtain a buyer on your current property to the point of contract and start aggressively searching for your next home. Go to contract on your next home so hopefully both contracts can be scheduled to close at the same time. With this option, I always suggest that my clients have a plan B just in case the two don’t line up. This may be renting an apartment or moving in with friends and family for a short period of time until both closings can happen.
3. Just plan on selling your home and temporarily move in with friends/family. Marketing your home completely, selling it, and having it close takes between 45 to 90 days on Long Island. With this option, you can take your time in purchasing the dream home you’re looking for.

If you’re looking for more details on any of these three options, just contact me by phone or email. I'd be happy to help you!

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I always suggest that my clients have a plan B in case things don’t line up.

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