The Buying Process

So you’re ready to buy a house!  Understanding the steps involved can help you anticipate what is to follow – as well as be prepared for the unexpected as the process unfolds.

Speak to a Mortgage Broker/Banker – Before you start your house-hunting, you need to know what you can afford in today’s market.  With your Mortgage Pre-Approval Letter in hand you will be treated as a serious buyer by both agents and sellers alike.

House-Hunting – On Long Island 90% of sellers use a real estate agent to sell their home – most of them are listed on the Multiple Listing Service.   In addition to my listings, you can search the entire Long Island Multiple Listing data base from my web site.  I encourage you to register for the Free Home-Finder Service.  You will receive daily updates of homes that meet your criteria from Multiple Listing.  A Home Just For You!  – Once you find your home – and your REALTOR© has successfully negotiated an acceptable price and terms for you – then both parties move toward a contract signing.

Engineer’s Inspection – You will need to arrange for an Engineer’s or Home Inspection as soon as possible.  It takes time to arrange the appointment and then additional time for the report to be finished and delivered back to you.  If you want additional inspections those should be arranged at this time also.

Certificates of Occupancy or “CO’s” – If there are extensions, additions, decks, sun-rooms or out-buildings that have been added – then you will want to check to see if “CO’s” are on file at Town Hall.  In Huntington, you can check first on the Town’s Web Site at    .  If the list is incomplete, you may need to go to the Building Department at Town Hall and request a “Site History Report”.

Attorney – You need to arrange for an attorney who specializes in real estate and is familiar with local housing codes to handle your home purchase.  After the engineer’s inspection report has been received and deemed to be satisfactory, the contracts will be prepared by the sellers’ attorney and sent to your attorney.  After your attorney has reviewed them you will meet with him to sign the contracts.  Your deposit will be placed in the sellers’ attorney’s escrow account when the sellers sign the contracts.

Termite Inspection – If it was not a part of the Engineer’s Inspection, you will have approximately 10 days after the contracts have been signed by both parties to inspect the home for termites.

The Survey – If all “improvements” are shown on the survey, you probably will not need a new one.  However, bank and title company requirements vary on this and you may be required to have a new or updated survey.

Mortgage – Depending on when your closing date is, you will need to apply for your mortgage application as soon as possible.  Once you have signed an application, an Appraiser will inspect the home and send a report to the bank.  A targeted Closing Date is discussed after the attorneys receive the written confirmation of mortgage.  One word of advice:  Don’t just look at the interest rate; look at the terms, any price adjustments and ALL FEES that you will be required to pay.

And Don’t Forget – you will need to Select a Moving Company,  Register your Children in their New Schools, Arrange to transfer all Utilities to Your Name – and then Pack, Pack, Pack!  I have several books about Children and Moving.  Ask me about them.

Closing – Prior to the Closing Date, your agent will arrange for you to “walk-through” the house that you are purchasing.  Your attorney will advise you what certified funds and paperwork you will need to bring that day.  And then the big day finally arrives!  Congratulations on Your New Home!  May you have many happy memories ahead!

In today’s market it is critical that your real estate agent has a thorough knowledge of your local market and the expertise needed to maximize the appraisal process when buying or selling a home.

Buying or selling a home today is much more complicated than it was a few months ago – well, we all know that, don’t we? Often overlooked is the importance of the bank appraisal process.  A real estate agent should give the bank appraisal the same attention and preparation as is done when formulating a marketing plan for selling a home.    It’s one of the most important steps in the selling and buying process – without a satisfactory appraisal the bank will not grant a mortgage. 

To help understand the process and requirements in today’s market, Thomas E. Lauritano, a NYS Certified Appraiser of Lauritano Appraisal Services, recently met with the agents in my office to discuss the new guidelines and to answer our questions.  Tom’s company provides appraisals and is a consultant to one of the largest mortgage banks in the area.  He elaborated on procedures that I have followed for years when meeting an appraiser.  He stressed the importance of analyzing the data and explaining why certain comparable sales were chosen as relates to the subject property and the neighborhood values.   Optimally, banks want comparables that are of homes within the neighborhood and that have closed within 6 months.  Realistically, such comparables are not always available.    If there are no recent comparable sales in the immediate vicinity of the subject home, you’d better be prepared to fully justify the ones that you do choose.

If a house nearby sold for less, then that must be explained in detail.  What was the reason?  Family member purchased home?  Foreclosure or Short Sale?  A handy-man special? Sometimes, agents just choose to ignore those houses – hoping the appraiser won’t “bring it up.”  That won’t fly in today’s market.  In addition to the sold comparables, he stated that banks and underwriters currently are asking for the pending sale prices of homes that recently entered into contract.  Data from these sales generally are requested from the brokers involved in the sales.  Pending sale prices are the best indication of where the market is now and if it is holding steady, declining or rising.

Just handing an appraiser some listings, without an analysis of each one and detailing why it is a good “comparable” for the subject home may result in a low appraisal and a “deal” falling through.   If the underwriter refers it back for further explanation, the appraiser must be prepared to defend his report.  There’s no guarantee that the appraiser or the underwriter will accept your agent’s analysis.  However, if the agent hasn’t supplied sufficient data to begin with then the analytical report may not be as detailed as it could have been.

When selecting a REALTOR©, you should choose someone:   1)  Who has the experience and expertise to handle all the aspects of the home buying/selling process;  2) Who understands the appraisal process, knows which data to select and what details to provide to enable the appraiser to provide a full analytical report that will meet the bank’s requirements; and 3) Who is an expert in the local real estate market.

Any questions?  Please call me at 631-549-1993.

Dix Hills buyers and sellers need the expertise of an Eco-Broker.

First it was realizing that it cost almost a $1000 to fill the 275-gallon oil tank at my home in Dix Hills - and then it was the increased interest from buyers in one of my listings because of its energy-efficient building methods and products.  Besides demanding more energy-efficient homes, today’s buyers are also concerned about environmental issues when buying a home.  To meet these needs, I need to be able to provide knowledgeable energy information and understand how to work through any environmental concerns that may arise during real estate transactions.  So, today I applied to become a Certified Eco-Broker.  The classes and exams cover both environmental issues and energy-efficiency technologies and options and will definitely be of benefit to both buyers and sellers.  As I work through the curriculum I’ll be posting some topics on this blog that I think will be helpful and informative.  So, in addition to “staging homes” and innovative web marketing, I’ll now be prepared to provide solutions to environmental concerns and discuss energy ratings! 

Driving around Dix Hills there are many beautiful homes to see!

During the last few years there have been changes to the look of many of the homes in Dix Hills. Some changes are cosmetic and some are grand-sized and elaborate. I took some photos as I drove through the Caledonia area, and the areas around Wolf Hill Road, Half Hollow Road and Vanderbilt Parkway.  Hope you enjoy the photo tour! To my knowledge none of these homes are on the market – they’re just some homes that "caught my eye"! Click on  Tour of Homes to view the slideshow. When you get to the web site you have to click on "Here" for a Virtual Walk-Thru to start the flash player

Information about gated communities in Dix Hills, Melville and on Long Island.

Gated communities have become popular on Long Island during the last few years as a growing number of local homebuyers are embracing the aura, amenities and security that such communities offer.  With their gatehouse guards or electronic security devices, tennis courts, swimming pools, clubhouse facilities and, in some instances, golf courses, these enclaves have helped redefine housing developments as "lifestyle communities."

There are many types – some for 55 and above, others for all ages.  Prices are varied also.  They range from the modest condominium “flat” to the utmost in luxury and “Country Club Living” – featuring large single-family homes. Lot sizes for homes in gated communities are usually smaller than comparably priced homes located outside the gates.  To offset the lack of “elbow room” between the homes, gated communities generally include common areas, such as parks, walking trails and playgrounds.

Some of the gated communities in the Dix Hills/Melville area are:  The Greens at Half Hollow (55 & above), Country Pointe at Dix Hills, The Legends at Half Hollow,  Sweet Hollow Farms in Melville, Northgate Condominiums, The Villas,  Alley Pond Estates and for rentals: Avalon Bay in Melville. 

Families with young children are also attracted to these developments. The sense of privacy and security along with the amenities of a clubhouse, swimming and tennis - without the maintenance – are just what some busy parents desire.

When asked most residents say that what initially attracted them to this type of development was the ability to come and go as they please without worrying about the upkeep or security of their home.Retirees and empty-nesters say they are drawn to the developments’ lifestyle, which enables them to take vacations without worrying about the safety of their home or its maintenance – while also providing them with an active social life.  For many people of retirement age, the gated communities provide a way to stay near their family on Long Island – instead of moving to Phoenix, Florida or North Carolina!