Why Does It Take An Agent Time To Make My Appointments !

One of the very first discussions I have with all my buyers after we have agreed that I will be representing them is the general rules for scheduling showings.  This blog will give you an idea of how and why it is not always that simple to get into listings and what you should be expecting !

Why Do I Have To Go To Open Houses Without My Agent ! 

• The first reason is because although we work for buyers, we also work for sellers and they are at the same time.  We must send our buyers to open houses, because we also need to hold our open houses for our listings.  The windows of time for open houses are often similar if not at the same time so do not take this personally, go armed with your Realtors cards and if you do like the home your agent should make a 2nd appointment to accompany you for another look ! 
• There are also times where if a listing is a bit difficult to show the listing Realtor may have more open houses rather than private showings.  This is something that neither the listing agent or your realtor has control over - it is decided by the homeowners and how/when they want their home shown.  

I Saw A Home Driving Home And I Want To See It Tonight ! 

• If the home is vacant this is rarely an issue, but try and be realistic their might be a conflict in schedule.  Often times our week is booked solid by Tuesday or Wednesday filled with buyer and appointment at our own listings.  Generally if your working with a good agent they will call you to see what day/time that week you would like to go and look at homes this way the time is booked for as many homes you would like to see including those that might come onto the market during that week ! 
• Homeowners & agents that need to be their to accompany also play a big part in that availability of seeing a home. Homeowners imparticular will normally ask that you give them a reasonable amount of time to "prepare" for their home to be shown.  Your agent will be able to see this if the listing agent has it noted on MLS simply by pulling the listing information.  

My Agent Says That Their Are No Interior Showings ! 

• This may seem a bit ridiculous, who would buy a house if they can't see the inside of it ! This is more common than you might think - income properties are the most common occurrence because the house is not owner occupied and is rented out - they will not want their tenants disturbed unless the buyer has a proven interest in the home.   
• Also sometimes in the case of short sale/foreclosure because the tenants are protected by law that if they have a lease that although the house can be sold their lease is still in affect.  Commonly with those cases once the lease is up and the tenant vacates the home will than be able to be shown.  
• This is also common when your agent is calling on a listing that is an exclusive listing from another company.  Ordinarily you would not be able to be get access to these listings but when their is a buyer broker contract in place it does open that inventory up to you.  Keep in mind many homes that are being held on exclusive will normally have a reason for this, such as work going on in the home or in the case of an estate sale they might be getting the executor in place.  

Keep in mind when you are out their looking for a home that there unfortunately are some homes that are just a bit more difficult than others to see.  The general rule to have successful showings is to give your agent notice, and in turn they will be able to make arrangements for each one of those homes and you will have a nice day of home shopping  ! 

How Is Your Closing Date Determined ?

Closing dates are often a bit confusing to people, one would think that closing as soon as possible is always the only way to go but there are a few factors you will need to keep in mind.  There are steps to determining the correct closing date for both the buyers and sellers and will be tweaked during the process of getting into full contract.

Presenting An Offer & Your Sales Agreement: - This is when the buyer will be setting the "date" they would like to close, and does specify that is on or about.  However their will be specifics things that should be brought up at this point.

• Does the buyer have something to sell before they would be able to close on the purchase ? 
• Will the buyer be in a position to accommodate a seller whom need to make a purchase ? 

The on or about date can change from the time of your initial offer and contract signing if there was a significant amount of time between the 2 events.  Your attorney will be the one who puts in a "formal" on or about date.  

Contract Signing: Your attorney will be the one who will have the ability to change a closing on or about date if needed.  Typically most buyers and sellers are unaware that their are actually 2 dates in the contracts that will be binding.  

• The mortgage commitment date, is the first aspect of the contract.  This specifies how long the buyer will have to get a mortgage which averages from 30 days - 45 days from the day of fully signed contracts.  
• The true closing date, is what specifies you actually getting the sale finalized.  The reason there are 2 different dates is because not only do you need a mortgage commitment you will also need to obtain a clear title, proper permits, certificate of occupancy, and surveys.  This can sometimes bring some un-expected time delays.

How Long After Your On Or About Do You Actually Have ? 

There are many factors that can come into play during the sale or purchase of a home.  You have a "grace period" from 30 days of your on or about closing date.  There are times where that can be extended past that but clear communication is an absolute must in order for all to go smoothly.  Your attorney and agent should be in touch with one another so that they are aware where in the process all the moving part are.  

Closing Dates On Short Sales: 

Short sales and foreclosures are often a bit unpredictable because although they buyer may have nothing to sell, and the ability to close quickly the paperwork for the sellers is much more involved.  

• You will be in contract longer within a short sale because first you must receive bank approval on the price, but you can not get their approval without me in formal contract.  This is a touch thing to estimate because the bank is not able to give you a timeline of when you should expect to hear an answer regarding your offer.  
• Surprisingly to many people the smaller banks tend to respond quicker than the larger banks, this is attributed to less pending short sales.  Certain banks have now been required by law to respond to offers within a period of time to keep buyers from being stuck for months waiting for a response.  
• Once you have gotten the okay from the bank you can safely assume you will be closing within 60-90 days.  You will need to keep in mind the bank will make no representations, so your agent should be as proactive as possible by checking that the home has all proper permits and COs.  You can do this by filing a FOIL request with the local town or village.  

How To Handle An Overpriced Home

Today's blog we will be focusing on how do you handle buying a home that is overpriced.  When you choose to utilize a Buyer Broker you might find that they are sending you homes that are above your price range, we usually prompt you to get a mortgage pre-approval to make sure you aren't disappointed if you can't afford it later on so why are they sending them to you ? Just because the home is listed for a certain price, does not mean that the home is worth what it is listed for.

Finding your new home can be an overwhelming endeavor, the first step to making this a bit easier is by utilizing a Buyer Broker.  Their is an entire blog dedicated to explaining what the job is of a Buyer Broker HERE, or if you prefer a video blog HERE.  

Here are the most common reasons a home ends up being overpriced:

• The agent did not educate the homeowner about the current market price prior to taking the listing. 
• The homeowner may need to net a certain amount of money, in order to avoid the sale of the home being considered a short sale.  
• Lack of comparable homes in the area with similar style or characteristics, this is often common in areas where you find Historical Homes or Horse Property on Long Island.  

When it comes to a home that is overpriced in any area negotiations can go a few different directions, but the first step is always the same.  

• Step 1: You will want to sit down with your Buyer Broker, and look at the comparable homes in the area to come up with an educated offer, because your agent will want to not only present your offer but the comparable homes that back up your offer.  

Once your offer has put in your first offer is when you will begin to strategize what kind of negotiation style you will use when it comes time to place your counter offer.  

• If the homeowner comes down a significant amount, that is a sign that their agent is educating them about what their home is actually worth in the current market.  You will want to do the same with your counter in order to show them that you are a serious buyer ! 

• If the homeowner barely budges off their price, your agent might be able to get some clarity on why they are priced so high during this conversation.  Their might be a certain amount they need to net in order to not have the home be a short sale or they simply may believe that their home is worth more.  

This is where things can require a bit of patience, sometimes your best bet is to back off a a seller and give them time to sit on the market with no other offers coming in they might be a bit more willing to listen to the advice the listing agent is giving them regarding their price.  When you use this strategy their are 3 important pieces of advice I always give, because of course their is risk in this strategy.  

• Make sure you have presented at least 2 reasonable offers, if you are still significantly apart this is a circumstance where you may want to let them have more time on the market.  
• Make sure your agent keeps in contact with the listing agent during this time, you don't want to wait to see a price reduction on MLS because than you may find yourself in a bidding war because of other buyers seeing the price change.  
• Continue to look at homes with your agent, their is no guarantee that the homeowner will come down in price and you don't want to miss out on another home while your focused on the overpriced home.  

Once the homeowner has had some time sitting on the market you will than see if they really want to sell their home, or not.  The next step isn't what you may think ! 

• Before you place another offer on the house schedule another showing with your broker to go and see it again, ideally when you know the homeowner is going to be home.  There are 2 reasons for this: first they may have done work to the home since your original visit, and them seeing that you are the buyer who placed an offer will again show you how serious you are about purchasing their home.  

• Make sure when your agent present your next offer they ask to present the offer directly to the homeowner, with the other broker present of course. This way your agent will be able to remind them of all of the specifics of your offer, as well as updated comparable homes ! 

• You may still need to do a bit of negotiations, and of course have your home inspection done before you go to contract but hopefully this will have gotten you the home of your dreams ! You can find my blog specifically about home inspections and what to expect HERE. 

In all of my years in Real Estate I have helped many buyers find their dream home, and I can say with complete certainty that for every buyer their is the perfect home out there ! 

Short Sale Vs Foreclosure

I wanted to take a moment to talk about Short Sales & Foreclosures, although our inventory is not overwhelmed as it was once by them their are still some of these listings on the market.  Buyers who are looking to make a purchase often times think that these are impossible sales, which they are not but unfortunately they can be time consuming.  This blog will not only explain exactly what these kinds of sales are but some of the pro's & cons of these sales as well.  

Short Sale: Where the homeowner has proactively decided to sell their home in order to avoid foreclosure.  This kind of sale gives the homeowner the right to negotiate offers before they are submitted to the bank, but the bank will have the final say on whether the offered price is acceptable.  The homeowner might have the difference between the loan amount vs sold price, and in some cases will immediately be able to obtain a loan on a new home.  

• Pro - These homes are typically mortgageable thru FHA, Conventional, or 203K Loans.  
• Pro - Homeowner will be able to give helpful information about the home including age of appliances, fixtures, or provide paperwork on warranties.  
• Pro - You can usually purchase these homes at a lower price than market value, usually between 5% - 8%.
• Pro - Typically these homes are still being occupied and maintained by the homeowner, and they will be responsible for their belongings including garbage being removed from the home. 

• Con - Timeline for bank approval is an unknown it can take anywhere from 3 months to 12 months to purchase a short sale home.  
• Con - Although the homeowner has the option to give you information they are not required to fix or represent any items in the home.  
• Con - Although some homeowners may have listed their home, sometimes getting in to see the home for a private viewing might be difficult.  

Foreclosure: The homeowner has normally vacated the home and the bank will either A. Hire an agent to advertise the home or B. The home will be sold at a public auction (Real Estate Agents Will Have Access To The Foreclosure Auction Schedule).  The homeowner is no longer involved in any way with the sale of them home, and will be held responsible for the difference between loan amount vs sold price, and will not be eligible for another home loan for 5-7 years. 

• Pro - The timeline to purchase a foreclosure is typically much quicker than the process of buying a short sale.  
• Pro - Most of these homes are very easy to see because they are shown with a Lockbox Code or HUD Key.  
• Pro - These homes are generally sold at a significantly lower price than market value because of the deterioration of the home.  

• Con - These homes typically will need to be purchased either with cash or a 203K Loan.  
• Con - These homes are also sold as-is, this includes any garbage or debris left in and around the home. 
• Con - Many investors will come into the auction with the ability to purchase that day and close within 2 - 4 weeks which can hinder a buyer with a mortgage being able to "win" the home.  

Tips For Purchasing A Short-Sale

• If you are looking to get the home at a good price, and a quick bank approval than looking at Approved Short Sales are a great option, because the bank has already agreed to price.  
• Although the homeowner can give you information, don't skip the home inspection.  You will want to make sure than those "small" issues will not put you over budget after the repairs have been made.  
• Before submitting an offer to the bank take a look at the comparable homes in the area and keep your offer within 10% of market value.  The bank will be basing their decision on your offer on a 3rd party appraisal telling them the current market value of the home.  
• Make sure you utilize a Buyers Agent, they will be able to find out necessary information that will help you choose a viable short sale by checking key information such as: Sellers Attorney, Which Banks & How Many Banks Are Involved, How Co-Operative Will The Homeowner Be.  

How Long Should I List My Home For ?

As you will see the way to determine how long to list your home for is according to the market.  So really although it is up to you to choose, you should be sure you are basing your decision on solid facts! In today's market it takes more than listing your home on MLS get it to the closing table.  You need an agent that is actively marketing your home in all venues internet presence, direct mail and open houses are just some of what needs to be done.  For today's market you should be listing your home with an agent for atleast 180 days, with the option to be released if they are not doing all that they agreed to do to market your home.  
Coldwell Banker Residential Brokerage does offer you this gurantee, if we are not doing everything we agreed to do, we will release you from the contract with us at anytime! 

Reasons for a 30-Day Listing 

• If your market is steaming hot and homes are flying into pending status within days, your agent might be agreeable to a 30-day listing.
• This way, if every other home on your street is selling within three weeks and yours is still sitting without an offer on day 29, you can easily get rid of your agent and hire somebody else.
• Before you refuse to relist with your agent, though, first look at the price. If your price is too high, no agent is going to sell it.

Reasons for a 90-Day Listing 

• In normal markets, 90-day listings are more common.
• During the first 30 days, you should get a lot of showings if you are priced right.
• Ask your agent for buyer feedback and follow up on suggestions to improve the condition of your home and / or price.

Reasons for a 180-Day Listing 

• If the average DOM exceeds two months, you're probably trying to sell in a buyer's market and will need a longer listing term.
• If you go into contract on a 90-day listing, your listing might expire while in escrow. In that event, your agent may require that you extend the listing, so it makes more sense to start out with a 180-day listing.
• Ask your agent when you initially sign the six-month listing if the agent will give you a personal guarantee that you can cancel at the end of 90 days if you are unhappy. If the agent won't give you that guarantee, then list with an agent who has more confidence to make you that offer.

Reasons for a One-Year Listing 

• If you live out in the boondocks where nothing ever sells under one year, then a 360-day listing might be the norm in your area.
• Unique properties, large parcels and expensive estates might take longer to sell because they may appeal to a limited number of buyers.
• Private islands and lavish vacation homes require a longer marketing time, and agents might not be willing to shell out the big marketing bucks for a short-term listing.

What A Buyers Market Really Means !

The spring selling season is coming upon us and it is coming sooner than most homeowners may think, we have already had a rush of new buyers begin their search!  There are some very important things you should know as a homeowner to sell your home in this market, and buyers should be aware of the realities of what it means to purchase a home in today's market! 

Let's start of by explaining exactly what causes a buyers market. 

• Large Inventory Of Homes On The Market
• Homes Taking Longer To Sell 
• Smaller Pool Of Buyers  

Important Information For Buyers 

You can get a “steal” on every home on the market

Let’s me just take a minute and clarify what I mean by “steal”.

If a home is listed for $250,000, is in move in condition with no liens, offering the homeowner $180,000 will do nothing but insult them.   Always be realistic when you put in your offer, pick your Realtors brain find out what the value of the home actually is, and put in an offer based on that information.   

Now if the home is a short sale, than a low offer may still get you the home, but remember the current homeowner has the “right of first refusal”, they will be trusting their agent to guide them that the offer reasonable.    

There are times where you can get a home for a “steal”, and that is with a foreclosure. Many of these homes have been sitting, and require work before they can even be moved into, in some cases they might be missing heating and plumbing. The banks have to recognize they can’t expect full market value.

A foreclosure sale is not for everyone, I usually find that it is easier to get my buyers into the ones that were already bought, renovated, and re-listed by investors. 

The buyer looking at the home decides what the value of the home is. 

A homes value is actually decided by the home buyers that have purchased in the previous 6 months.  You as the prospective buyer will actually be deciding the value of the neighboring homes for the next 6 months worth of buyers that buy a home AFTER you!

Another common misconception is that the house is worth the same as the neighbors!  This again is about the value of your home.  If your neighbors house is comparable to your home, than it might, but even than it will only be usable if it is sold in the time table that works to your advantage.


I can find a better home, and it will be cheaper prices are still dropping! 


I always tell my buyers, if you find a house and you fall in love with it don't miss out on it! I will tell you if the home is overpriced or not, but if the home is really a great value it will not last! Don't lose a home that you love, for a house that you aren't sure it exists!

Important Information For Buyers 

You can sell your house quicker without a Realtor or I can use a discount brokerage to sell my home.  

The most common answer I hear when I ask someone why they chose to sell their home without the assistance of a Realtor, is they think the buyers will see it as a "value" that they don't have to pay "extra" for a home.  Now I am not saying that it is never happened, but it is not very often that a home sells without the help of Realtors, especially here in Suffolk County.  

The very first thing a homeowner should take into consideration is that most buyers have a "Buyer Broker" which means they have a Realtor that they will need to pay, because they will still be doing their job if they buy your home.  Now what you thought would make your home seem like a value will now mean extra money they will need to pay to buy your home.  

Now I have written countless blogs on staging, photography, virtual tours, home warranty, and really usingtechnology to get your home sold. The reason I constantly reiterate this information is because it really is what will get your home sold.  

With the cost of not only doing these things, but spending the time to do them properly is usually a much harder undertaking than most homeowners expect it to be.  When you hire a Realtor, it is important to remember you are the boss! The other common reason I hear is they had a bad experience during a previous time they listed their house.  I reference this in another blog, about what you should be asking the potential Realtors who want to list your home.  

Always remember you want to list your home aggressively the first time it is on the market, that is what will set your house apart.  You need to be sure your home is priced right, it is advertised everywhere, it is easy to show, and you have a reputable company representing you! That is the way to sell your house in a buyers market! 

I am only going to list my home for 3 months, this way my Realtor works harder! 

Unfortunately this is the one misconception that is completely off base, the market does not allow for a home to be sold within 3 months when the average time to sell a home is 6 months to a year! The best analogy I can use is this: If I told you to go to Florida on 1 tank of gas, and you knew it would take 2 tanks, would you go? Market conditions is what you should be basing your decision on, again I wrote a blog specifically on how long you should list your home for.

I understand that as a homeowner you don't want to be "stuck" with a Realtor or a company that is not doing what you may want them to, but again remember YOUR ARE THE BOSS! My company has a sellers services guarantee that if we are not doing our job 110% you have the right to withdraw your listing from our company.

My home isn't getting offers, because banks just aren't lending! 


Banks are absolutely lending money! They didn't lower their interest rates because they wanted to prevent buyers from getting a mortgage! Coldwell Banker Mortgage Company can work with a credit score as low as 615, and I work with other mortgage companies that only require a 625 credit score! Down payment requirements are as low as 3.5%, compared to what many people may think is still 20%.  The key to knowing if someone is a qualified buyer is to make sure their pre-approval are thru a mortgage company who puts their pre-approvals thru underwriting!

If you are interested in seeing exactly how many homes were sold be sure to take a look at some wonderful charts provided by my managing broker on his website The Real Estate Guru.


I hope this helps clears up some of the myths & questions that go along with a "Buyers Market", if you have any questions feel free to email me! 

Blog Recap For First Time Home Buyers

I have written quite a few blogs in the passed few weeks for my readers about the buying process.  I am a big believer in keeping things as simple as possible, so I wanted to write a quick overview of all of these blogs so that you can easily see which blog has the information that you are looking for.  

The blogs  Tips On Finding Your Dream Home or The First Steps To Finding Your New Home  are helpful for those buyers who are just starting out, they have not been looking for very long and may still be unsure of what kind of home they are looking for and what steps they need to take to get things rolling.

The key points of this blog are:

• Buyer Brokerage 
• Mortgage Pre-Approvals 
• Your Wants VS Your Need 
• Organization Tips 

All of these blogs are very important, but this blog on Relocating & Choosing The Neighborhood That Is Right For Youis not necessarily important for every buyer.  For someone who has lived in 1 specific community their entire life sometimes moving only 1 town over can lead to some uncertainty. 

The key points of this blog are: 

• South Shore Community Overview 
• Helping You Decide On Where & When To Limit Your Options
• How To Use Technology To Ease Relocation 
• Coldwell Banker Concierge Services 

Steps To Getting An Accepted Offer  is actually separated into 2 blogs, because of today's market their are many terms and processes that you need to be familiar with before you place an offer at all.   

Blog 1 of 2  outlines the many different kind of homes are for sale, and what you should be considering when placing an offer on a home.  

The kind of homes this reviews are:

• Short Sales 
• Foreclosure Sales 
• Estate Sales 
• Investment Sales 

Blog 2 outlines the 3 different categories a home falls into as far as pricing category, and what way of bidding will help get you an accepted offer quickly.  Knowing and understanding how the home is positioned in the market can be the difference between getting an offer accepted or losing your dream home.

• Overpriced 
• Market Value 
• Under Valued 

My most recent blog is about What Do You Offer For All That House, and this is a blog everyone whether you are a first time home-buyer or it is your 5th home you should take the time to read !! We were in such an inflated market that many homeowners are finding it very hard to take the loss on their homes, but nothing is more insulting to a home seller than a buyer not recognizing a value, or comparing them to homes that are not the same ! 

The key points here explain: 

• New Homes VS Updated Homes
• Features & Values 
• Main Roads VS Busy Residential Area 
• Pricing For Additional Rooms & Values 
• Legal Addition VS Illegal Additions 

I will begin writing additional blogs about what happens after your offer is accepted, and what you need to do to prepare for closing on your new home.  If you have any questions and they were not covered in one of my blog please feel free to email me directly or comment and I will be sure to answer your within 24 hours !! 

Cash Deals In Today's Market

I thought it was about time I took some time and wrote a blog about cash deals in today's market.  Interest rates are at a all time low still, but some buyers are still opting to buy their homes in cash figuring it will earn them interest quicker invested in a property than sitting in the bank.  If you are the buyer who has the ability to buy in cash you do have the upper hand on some other buyers, but not all.  This blog is for both the buyers, and for sellers to help both understand how a cash deal works, benefits of accepting a cash offer, but also how/why a seller may not be able to accept a cash offer.  

Presenting A Cash Offer

There are certain steps to presenting a cash offer that you may not ordinarily have to do, normally when you present an offer with a mortgage you would be presenting the offer with you mortgage pre-approval.  When you are doing a cash deal you will need to provide "Proof of Funds", this must be  recent, if your proof is 3 months or older you must get a new one.  Generally you can contact an agent at your bank and ask them to provide you with a letter, or even simply a copy of a recent bank statement with your bank account information hidden with only your name and available balance displayed.  

If you are purchasing your new home, with the cash from the sale of your current home than you must let this be known in the very beginning of negotiating.  Before you can place an offer, just like any other buyer you should be under contract on your current home.  

Benefits Of Cash Offers 

A seller may or may not prefer a cash offer because of the benefits it presents to them.  Not all homeowners are in a position to accept a lower cash offer because they may have a certain amount they need to "clear" on their home.  There are benefits that can make taking a lower cash offer vs a higher offer with a mortgage appealing to a homeowner.  

• No Bank Appraisals - This is pretty simple to understand, you do not need to worry at all about whether or not your home appraises because there is no bank involved which can sometimes be an obstacle.  

• No Loan Funding Contingencies - Whenever someone obtains a mortgage there are certain paperwork the bank will require from them, if they can't meet those requirements they will not be able to obtain the mortgage.  This can sometimes be avoided by using a good mortgage company but their are no guarantees, financial circumstances can change quickly and unexpectedly. 

• Home Inspections - Every buyer is entitled to a home inspection, but generally with cash deals the home is sold "as is", which means there will be no repairs or credits done to the home.   This is because generally homeowners are already accepting a lesser offer because of it being cash.  

• Faster Closing - It generally takes 60-90 days to go to closing on a home, the time frame is usually decided by how quickly a buyer can get the mortgage commitment, and close.  With no bank comes the benefit of being able to close at a time that is good for both the seller and the buyer.  

I have many homeowners ask me when is the best time to accept a cash offer vs waiting for a buyer with a mortgage pre-approval, unfortunately there is no set criteria but I can give you some pointers on when or why you should consider it.  

• If you need to move or relocate quickly, no one likes the idea of leaving there home vacant because of the risks and costs associated with it.  
• If you have your eye on another home that is on the market the benefit of having your home go to contract quickly will in turn mean you can put in a stronger offer for your new home.
• If the home is an estate sale it may need work, or you may not know the full history like the actually homeowner would.  Homes that need work will generally take longer to sell, which is why a cash offer allows you to move the home quickly reducing costs, as well as risks while giving you less responsibility after your home inspection report comes back.  

Always remember your Realtor should be advising you whether or not a cash deal is a good option for you, this goes for both buyers and sellers.  If you are the buyer placing a cash offer, my best advice is to make sure your Buyer Broker has helped you come up with a fair offer, remember there is a difference between a cash offer and a low offer ! For homeowners that have received a cash offer the process of deciding whether to accept it, or perhaps counter all depends on your home, situation, and the market for your immediate area. Your Realtor will be able to pull what cash sales have closed to help you make an educated decision about what is a fair offer for your home! 

What To Look For When Your Purchasing A Renovated Home

So I am sure those buyers who are out there looking have noticed the abundance of renovated homes that are currently on the market.  I am finding there are two very extreme opinions about these renovations, either the buyers absolutely refuse to even look at them, or they will look at nothing other than a renovated home. 

I would never tell anyone to not consider a renovated home, because there are some definite advantages to buying a home that has been renovated.  At the same time there are some very specific things you will want to take a look at when it comes to buying one of these homes. 

•  How long did the renovation take? Your buyers broker will be able to tell you when the home sold to the investor, from the day it closed to the day it came back onto the market is what you want to focus on.  If it was flipped within a short period of time (30-45 days) you will want to have a very thorough home inspection.  The reason for this is because in that short of a time period it was more than likely a cosmetic renovation.  
• What was done during the renovation? Certain things are quite obvious, but just because the home has new baseboards it does not mean that the heating was upgraded, you want to check the boiler/hot water heater/oil tank.  It could be that they did not require being replaced but the only way to know for sure is to let a home inspector look at it.  Don't ever assume that just because a light switch was replaced, that the electrical system was upgraded, most investors will upgrade the electric to 200-amp service, which is ideal for a remodeled home.  
• How many homes has the investor renovated? More and more people are choosing to take advantage of all of those short sales by buying them and re-selling them.  Many investors are well known in the Real Estate community, you may not know them but your buyers broker will be able to find that information out for you just by talking to the listing agent.  Do not attempt to find this information out on your own, call your broker! I personally have a investor who has been doing this for 15+ years, and I have investors who have been doing this for 2-3 years but I only work for those who do quality work.  
• What kind of warranty is provided? It is very common that new construction builds that they provide some sort of home warranty, but you always should ask if this exists on a remodeled home.  Some investors will simply give you the warranty paperwork that is provided by the manufacturer of the items the put in the home; others will offer you added warranties about the work that was done by their contractors.  It is not very common but you should still ask the question because it is a definite plus if they do! 

Those 4 questions on the most important questions you will want to know the answers to before you put in an offer on a renovated home.  Not every investor throws together remodels, but these homes are not for everyone.  If you are an avid to it yourself, or even have friends that are contractors many times you can do the same cosmetic work over the course of a season as the investor did.  I would like to think of myself as pretty handy, but I could never come close to what any of my investors do as far as quality of work.  So let's look at a few of the perks of buying a renovated home.  

The obvious perk is you are getting a turn-key home, that you will be the first to live in and will include some 

sort of warranties that you ordinarily would not have.  

 Investors now are smart and in order to move their investments instead of rushing through the renovation they

price the home a few thousand dollars UNDER market value that means your paying less for a better home.  

The reality is the renovated home came about because of an estate/short/foreclosure sale, which means the investor

has done all of the dirty work for you this is a very big perk for those areas that were really hit when the economy

went because the majority of the homes your looking at will be these renovations. 

A renovated home is not for everyone, take the time to talk with your Realtor about your wants/needs as well as your price range.  If your working with a buyers broker they will be able to guide you on what kind of home is best for you.  I always try to reinforce the importance of having a buyers broker working for you but it is a absolute must if you are planning on buying one of these homes.  Only a buyer broker will be able to do the kind of research this home will require, the listing agents are legally obligated to get the best possible deal for the investor, not for the buyer.  If you are planning on looking specifically at renovated homes I would suggest going one step farther and working with an agent who is knowledgeable on these kinds of homes, not only selling them but listing them and working with investors they will know right away what questions to ask, and what answers you want to hear !! 

What Do Expect When Buying A Short Sale

Many of today's buyers are opting to take advantage of getting a "deal" on a short sale, now I previously wrote a blog explaining the process of buying a short sale.   I want to take a moment to explain a bit further not the process but what you should expect to see, and how you can prepare yourself for looking at these homes.  If you are looking for information on the process please refer to this blog.

So you have decided your going to get a deal, and you are on the lookout for that home you can steal off the market.  Well let me prepare you a little bit for what you may walk into, remember these homes are often time distressed or abandoned. 

Before you even start looking at short sales you must remember a few important points.

1. There is still a homeowner involved even if they have abandoned the home, unless they have made other arrangements they first have the right to accept or reject your offer.  
2. You have the right to have a home inspection performed on the house, but that is as far as it will go there will be no repairs made to the home. 
3. Anyone looking into a short sale should also become educated on a what a rehab loan is, some of these homes will not be mortgageable and will require a rehab loan.  
4. "Sold As Is" means just that, many people assume that it just means that no repairs will be made but it also means that any CO issues the home may have not and will not be addressed.  

If that hasn't scared you off from purchasing a short sale, let me give you some reassurance.  Not all short sales are in bad shape and/or have CO issues.  Most of our short sales that are coming onto the market are actually still being lived in by the homeowner so let me prepare you a bit more.

• As I said earlier the homeowner still has the right to negotiate before any offer gets submitted to the bank, the chances of "stealing" one of these homes are slim because the bank will want at least 96% of what the market value is, and the homeowner will want the process to go as quickly and smoothly as possible so submitting a low offer would do nothing but waste everyone time.  

• Not every homeowner will be happy that their home is for sale, and to be quite honest some of them will be flat out rude to you.  Don't take it personal, and do not rush out on their account take your time and look the same as you would if the homeowner was being nice.  Sometimes getting into these homes can be a bit more difficult so you want to make sure you see everything while you are there.  

Those that are well versed in DIY projects, or who have family in construction are the most likely buyers to purchase and mortgage a distressed property.  When you are going out to these homes there are a few important things you should really be prepared for, and this is the most important part of this blog, remember this is specifically for vacant distressed homes.   

• Ladies, this first one is for you and I speak from experience when I am saying this.  DO NOT wear heals/skirts/open shoes when you are going out to look at these homes.  Even in this heat I would recommend wearing jeans or long capris rather than shorts.  Some of these homes have been vandalized and their could be glass, or debris laying around and worst case there can be mold in some of the areas of the house or exposed insulation that can irritate your skin.  

• Bring your flashlights and be prepared to use them, even on the sunniest day these homes can be eerily dark.  Most of the time this is caused by the boarded up windows, and doors but the lack of electricity at night is always an issue.  You will also want to consider bringing some hand sanitizer, some of these houses can be a bit on the dirty size so if you are anything like me you will be very happy to clean up a bit after being inside.  

• View these homes during "normal" hours, this is all about your safety.  You will have to use flashlights to see and your site will be way to limited in the evening hours.  There is no way to know if squatters have been using this home for a warm place to sleep, and viewing these homes in the late evening hours is just not safe.  

• NEVER close the door behind your agent, again this is all about your safety as well as your brokers, you never know what your walking into.  By leaving the front door open you are making it clear to those neighbors and other agents who may be showing that you are in the house, and they will be able to hear you inside god forbid something is to happen.

Now I know that all that may make you think it is not worth looking at short sales at all, but it is rare to see homes in this extreme distress anymore.  It is much more typical that the homes are still being lived in or taken care of by neighbors but I have quite a few buyers who are looking for this kind of project coming to me over the passed few weeks.  The best way to find the short sale that is right for you is to talk open and honestly with your agent, here are a two easy ways we can help you before you even step foot into one of these homes.   

• As brokers we have access to things that you do not, if you would not consider a home that would require a rehab loan we have the ability to check the agent listing to see if the home would require one or not before you go and look at it.  

• Many of these short sales will not have pictures attached to the listing, don't discount them just based on that if you are nervous about seeing these vacant homes because you would only want to do cosmetic work, see if your agent would be willing to preview them for you.   

The best piece of advice I could give you when your buying a short sale is to expect the unexpected ! Short sales are not for everyone.  The good news is that we are not seeing any large amount of short sales coming onto the market at the rate they were in previous years, and we are slowly seeing these homes sold !

Deciding To Buy Or Rent What You Need To Know

It's that time of year again where we see renters deciding whether or not they will continue renting, or will consider being a new homeowner ! This blog is to help all those considering purchasing answer that most common question "Should I Buy Or Should I Rent?" 

Why Should I Buy A Home Instead Of Rent ? 

It's a fact that in most markets, buying a home is significantly cheaper than renting.  Renting is money you will never get back, but buying a home is an investment in your future.  In most areas, if you can afford to rent, you can afford to buy! For more information on this topic you can refer to my blog, here it will give you both the pros and cons for both buying and renting, as well as offer you alternative options.  

How Do I Know I'm Ready To Buy A Home? 
The best way to know if you're ready to purchase a home is to look at your current situation.  You don't need to be employed with the same place for 2 years, you just need to have had a steady income in one field for the past 2-3 years.  You will want to run your credit and take a good look and make sure everything that is on the report is correct, if not you will want to have it corrected! You will also want to make sure you have money saved up for a down payment, in some cases you can withdraw from an IRA penalty free for a first time home purchase.  For more information on this topic you can refer to my article, here.

How Much Money Will I Have To Pay Upfront To Buy A Home? 
This is not an easy answer, because there are two factors depending on what kind of loan you take and the amount of the loan is what will decide your down payment.  For an FHA Loan you will need to put down 3.5% where a Conventional Loan you will need to put down atleast 20%.  The average cost of a home in Suffolk County is about $325,000 which would require a FHA down payment of $11,375.  

You will also need to factor in closing costs, but you can also ask for a sellers concession or have the money "gifted" to you from a friend or family member.  This ranges again by the loan amount, and any mortgage broker is required by law to give you a good faith estimate of closing costs, this is why you should always choose a reputable bank Of course, Coldwell Banker Mortgage is more than happy to help and you will always be given all of your loan options.

Once you have decided that you are in a financial position that you would like to go ahead and begin searching for your new home there are a few things you should look into.  You will want to learn the difference between what kind of homes are on the market, who you should have working for you, and what happens once you have found that "perfect home".  Because each of these topics are best explained in detail I will list each topic below with a direct link to blogs to help you get informed ! 

• Why You Should Work With A Buyer Broker
• What Kinds Of Home Are On The Market
• Benefits Of New Construction
• Short Sale VS Foreclosure
• What To Offer For That House 
• What Happens After Your Offer Is Accepted 
• What It REALLY Means To Be In A Buyers Market 
• Tips To Finding The Perfect Home

Short Sales In Today's Market

The market has picked up and more buyers are out looking for homes, my job is to help guide those buyers and homeowners who are selling their homes ! I want to touch base and give everyone a quick refresher on what a short sale is and what the process actually is, there are still quite a few leftover on the market and new ones coming onto the market.

What Kind Of Short Sales Are There On The Market ? 

• Approved Short Sales:  This is where the bank has already set a price that they are willing to take for the home.  These kinds tend to move a bit quicker since the "negotiations" have already taken place, unless you plan on submitting an offer below asking price.  These can usually close within 90 - 120 days after going to contract.  

• Un-Approved Short Sales: This is the less predictable short sale because not only has the bank not agreed to a price but more than likely the homeowners are still in the process of submitting all of their paperwork as well.  Normally in order to submit your offer to the bank you will need to provide them with contracts, which means you will need to use your down payment to get into contract.  

What Is The Process Of Purchasing A Short Sale ? 

1. Meeting with your buyers broker, deciding on your offering price based on the actual market value of the home.  Take the time to review how long it has been on the market, and for your own knowledge what the Lis Pendens is on the home.  
2. Presenting the offer to the homeowners, ideally they will accept the offer or counter.  You can sometimes ask the homeowners to do fixes or repairs as well, but your agent will advise you to if this will help or hurt your chances.  
3. Once you have an accepted offer from the homeowner, you will than go into contract on the home.  Your offer will now be submitted to the bank for their approval this is where the timeline becomes less predictable.  
4. The bank will send out their own appraiser to perform a BPO of the property.  This is where they  will go look at the condition of the home, and of the surrounding comparable homes.  This is why basing your offer on the current market value is key, if they see your offer is considerably less than it chances are they will not accept.  Remember the bank does not necessarily have to counter your offer they can simply reject and you will need to re-start the process to change your offer.  
5. Hopefully you will have gotten your offer accepted or successfully negotiated with counters to get the home for the price your comfortable with.  Your mortgage broker should have began your process of you obtaining your commitment so that all the attorneys can schedule the closing and get all of the necessary paperwork from the homeowners for their short sale to be complete for you to be able to close ! 

Truths & Myths Of Short Sales 

• Myth: The homeowners have defaulted on the house and have not paid there mortgage.
• Myth: Anyone can short sale their home if they owe more than it is worth.    
• Truth: The homeowners must have suffered some circumstance for no longer being able to afford their home, and are unable to make other arrangements with the bank.  

• Myth: You can offer the bank whatever you want, they would rather sell it than hold onto it! 
• Truth: The home may not be worth what the remaining mortgage is on the home, but on average the bank wants 96% of the market value of the home regardless of what they are owed. 

• Myth: You can use any company to list your homes as a short sale! 
• Truth: You can, but your home will not sell.  You need to hire an agent and company that has worked on and with banks on short sales in your area.  Only a knowledgeable agent will be able to properly handle a short sale, the reason their is a higher commission rate is because of the extensive additional work we must do.  

• Myth: Whatever is left in the home the bank will come and clean out before your closing.
• Truth: What you see is what you get, literally this unfortunately includes whatever leftover debris is left by the previous owners.  In the case where the homeowners are still in possession they will almost always take their belongings and properly dispose of what they are not taking with them.