Sunday morning at Broadwaters Cove

It has been a while, due to the CRAZY summer and fall we have had out here on the North Fork. If you are waiting until spring to continue your home search, read on....

The Next Three Months: Best Time to Buy

Daily Real Estate News | Tuesday, October 06, 2015

Low mortgage rates, declining home prices, and homes that are lingering on the market longer are three main reasons why the next three months could be the best time to buy so far this year, says Jonathan Smoke, realtor.com®’s chief economist.
“The spring and summer home-buying seasons were especially tough on potential buyers this year with increasing prices and limited supply,” Smoke says. “Buyers who are open to a fall or winter purchase should find some relief with lower prices and less competition from other buyers.”

Read more: 5 Top Motivators for Buying Now

The biggest challenge buyers will likely face buying in the next three months is the limited number of choices. There are fewer homes for-sale this fall than last year and housing inventory has already peaked for 2015, Smoke says.
In many markets, real estate is making its seasonal transition and is tilting in favor of home buyers lately.
Also, buyers are locking in low mortgage rates as the Federal Reserve continues to delay raising rates. For the past 10 weeks, the 30-year fixed-rate mortgage has averaged below 4 percent, according to Freddie Mac.
Here are some more factors pointing to a slowdown in the overall housing market:

• Median home prices dropped 1 percent month-over-month in August (however, prices are still up 6 percent year-over-year).
• Homes are staying on the market longer: The median age of home inventory is 80 days, up nearly 7 percent from August.
• Mortgage applications dropped 6.7 percent week-to-week.

Source: “Mortgage Rates: Three Reasons to Buy in the Next Three Months,” Nerdwallet (Oct. 2, 2015)

Attention home buyers and sellers: What a Federal Reserve interest rate increase could mean to you!

Beautiful North Fork Produce - Coming Soon!

Last week the Federal Reserve released a statement indicating that they could increase interest rates as soon as June of this year.  Since then, there has been a lot of squawking about whether or not this is realistic, and whether or not any increase will be significant. Should you believe that this will happen, this is how the hike could affect almost all of us.

1. The good news: A rate hike means that the Fed thinks the economy is healthy, based on the indicators. While wage growth has been around 2%, not the preferred 3.5%, wages traditionally fall behind the other indicators and is not a required precursor to a rate hike.  On the other hand, unemployment is down to its lowest level since 2008!

2. Buyers beware: Mortgage rates will rise. "People thinking of buying a house should act quickly to lock in today's low rates" says Dean Croushore, former Philadelphia Fed economist (http://money.cnn.com/2015/03/19/news/economy/federal-reserve-statement-interest-rates/). We are already seeing an increase in the amount of buyers coming out to the North Fork to take advantage of low rates, as well as many local buyers who can now afford to purchase a year-round residence. Competition is up since there is not a lot of inventory available yet, and we have seen an increase in bidding wars or multiple offers on properly priced homes.

3. Sellers beware: Mortgage rates will rise! (As will auto loans). If you read the above, the downside for sellers is that some buyers will no longer be able to afford to purchase at current prices, and we may see a price drop.  Right now is a GREAT time to list your home for sale, before any significant changes occur in the financial markets.

4. Stock volatility: Any increase in interest rates could make stocks less attractive to investors, and possibly trigger a 'correction' (drop) of 10% or more. This will make 'savers' more profitable, since interest rates will also increase in bank savings accounts, and also make bond investment more attractive.

5. The real deal: No one really knows when (or if?) this hike will happen, but chances are very good it won't be before June, possibly as late as September. This gives buyers a chance to lock into a great mortgage rate, and sellers a window to list and sell their home before a rate increase stalls or reduces any recent gains in selling prices.

I constantly monitor the local market - click here for my most recent Market Report, and check the 'Links' on the right of the page for previous reports.

Working hard to bring East End buyers and sellers together - Certified Buyer Representative - call me today at 631.766.2598

related links:

http://www.reuters.com/article/2015/03/24/us-fed-bullar-rates-idUSKBN0MK0YS20150324
http://money.cnn.com/2015/03/19/news/economy/federal-reserve-statement-interest-rates/

http://money.cnn.com/2015/03/18/investing/federal-reserve-rate-announcement/

http://blogs.wsj.com/moneybeat/2015/03/24/fed-to-markets-get-ready-for-higher-rates-but-not-too-high/

#homebuyers, #sellers, #realestate, #northfork, #mortgage, #mortgagerates, #homesellers

Buyer Tips: 6 Reasons for buyers to hire an agent (or what the listing agent won't tell you)

Remember spring?

In New York State, it is usually assumed that a real estate agent represents the seller, unless the buyer hires an agent to represent them - a buyer agent. What does this mean to you, the buyer, and why should you do it? You're a savvy internet user, and get open house alerts from Zillow or your local MLS, right? You have mobile apps that instantly send you the selling information of any sign you pass? Won't you get a better 'deal' with the listing agent?  (The short answer is no - they work for the seller, and it is their job to get the highest price for the house!).

What can hiring an agent do for you that you can't do for yourself? (By the way, in most cases, this is absolutely free to you, the buyer!).

1. Represent your interests with undivided loyalty. When I show you a house working for the seller, I am obligated (by law) to try to get you to buy THAT house at THAT price. My role as a buyer's agent is to provide advice, expertise, information and counseling, not to SELL you any particular house.

2. Do a market analysis of recent comparable sales to help you reach an appropriate offering price. A realtor normally does a comparative market analysis for prospective sellers to show them what is available, under contract and recently sold for similar homes in their area.  This is a large factor in determining the listing price.  A buyer agent can and should do a similar analysis for you to help you get the best home for the best price.

3. Pull public records to find out about any underlying issues with certificates of occupancy, municipalities, building departments, etc., to make sure that you are making a sound purchase. Better to find out as much as you can before contracts are signed, or before you pay for an engineering inspection.

4. Point out both the strengths AND weaknesses of a prospective purchase. A realtor notices things that you may not, especially if you are in love with the home. That slight discoloration on a ceiling might signal leaking from a bathroom above, but a crack in the sheet rock in a newer home that concerns you may just be the normal settling newer homes can go through.

5. Put your money to work for you. While legally, all brokers work for the seller unless there is a buyer-broker contract in place because the seller 'pays' the commission, in reality, who is it who brings the money to the transaction? The buyer! One way or another, the commission comes from the proceeds of the transaction, which is brought by the buyer. So would you rather pay someone to represent you, or pay someone to represent the seller?

Click here for my latest East End Market Report ( 2/15/15 - 2/28/15)

5 Good Reasons to Sell Your House Now! (why wait for spring?)

Pretty soon THIS

Will be THIS!

(Sound Beach, Duck Pond Rd, Cutchogue)

1. Greater likelihood of selling in 6 months or less. Here on Long Island, if you list your house between Dec. 21 and March 21 you have a 34% chance of selling within 6 months, while only a 27% chance of selling in the same time frame if you list in the spring, and 24% chance if you list in summer or fall*.

2. You may get a higher price. Statistically, homes that are listed in the winter sell on average for 2.3% less than list price, while the average selling price of homes listed in other seasons is 3.5% less than list price*. Keep in mind that the list price has to be reasonably comparable to the selling price of other similar homes in your market area - otherwise known as "comps".

3. Less competition. Inventory is lowest this time of year, and we are beginning to see bidding wars again. While as a real estate professional, this makes me cringe when I am working for the buyer, it can certainly be an advantageous outcome for the seller, and often results in full price or close to full price offers with larger than normal cash down payments.

4. Real buyers buy all year round. Not a week has gone by since the new year began that I haven't shown prospective buyers houses. Real buyers are out looking at all times of the year, and often have compelling reasons to buy quickly. These include major life changes, such as a new job, new baby, or -on the North Fork- because they want to have time to do needed repairs or renovations before the summer season begins.

5. Interest rates are anticipated to rise. It is no secret that the Federal Reserve has been dropping hints that it plans on cutting back its stimulus program in the near future, which will push mortgage rates up . This is providing a lot of motivation for buyers to get out there and shop NOW, regardless of the weather!

Other bonuses to selling this time of year may be:

·         Increased curb appeal - everything looks pretty under a blanket of white, and you don't have to worry about irrigating your lawn, or weeding the garden

·         The warm and cozy factor - have a great fireplace? Evergreens that are blanketed by snow? Now is the best time to highlight these features.

·         Moving on - if you are planning on moving but waiting for the spring market, you can put your plan into action by taking the first step towards making your dream a reality and getting your house on the market now.

Convinced? Contact me for a free market value analysis of your home, and tips on preparing your home for sale - cherylschneider@danielgale.com

Did you miss my latest Market Report for February 1 - 14? Click here to find out what's new and sold on the North Fork this month, and don't forget that all past reports are available under my 'Links' tab on the right of the screen.
 

*Data courtesy of redfin.com: Really? Data Shows Selling a Home in Winter Pays Off

Loving the North Fork 365!

How is the market during the arctic freeze we are experiencing in most of the northeast? Find out all about new listings, sales and properties under contract on the North Fork and Shelter Island in my latest 

Market Report for February 1st - 14th 

Let the Buyer Beware (Caveat Emptor) - Hiring a Home Inspector

When you buy a home, you need to know exactly what you’re buying. Imagine how frustrated you’d be to find out that the hot water heater wasn’t working—in the middle of a shower! This is why you should have a home inspection before you buy your home (and in fact, many banks require it before they will grant you a mortgage). A home inspection is an important part of buying your home. Your agent can provide you a list of local inspectors, but before you hire one, ask candidates a few questions to make sure you hire a trustworthy inspector.

1. What does your inspection cover? Not all inspections are the same. Ask for copies of previous home inspections so you can see exactly what they will check inside the home. If you are concerned about something specific, like a leaky faucet in the bathroom, mention that to the inspector so they can check it out. 
2. Can they also do termite and pest inspection, or do they work with a sub-contractor? Some home inspectors are also licensed to do termite and pest inspections. Be sure to ask if they can do this, and if so, what the add-on cost will be, and if not, if they have a pest inspector they work with or can recommend.
3. Are you licensed or certified? If you live in a state that licenses home inspectors, ask to see their license. At the very least, choose a home inspector who belongs to a home inspection association. This shows a level of professionalism and education that you can trust.
4. What kind of report will you give me? You should expect a written report detailing what the inspector found. Most inspectors will give you a typed report within a week of the inspection. Make sure the inspector will be available to explain anything on the report that doesn’t make sense to you.
5. Will I be able to attend the inspection? If the inspector refuses to let you be present during the home inspection, find someone else. This is your chance to know exactly what you are buying and what potential repairs you or the seller will have to make.

As your real estate agent, I can guide you through the property buying process. Let me help you find your new North Fork home or business. Contact me today at with any questions you may have, or to begin the process of buying or selling a home.