Congratulations!  Your offer was accepted!

After months of disappointments, false leads, and close calls, you finally found a house to call home.  But now what?

The Home Inspection: A Necessity

A home inspection is one of the best ways forms of protection when purchasing a new home.  Most likely this purchase is the single largest purchase you have ever made!  No one wants to learn a few weeks after move-in day that the roof leaks or basement floods.  The glut of short sales and bank owned properties on the market also make the use of a home inspector critical.  We have all heard the urban legend of the angry seller who pours concrete down the sink in an effort to retaliate for the loss of his home.

The job of a home inspector is to examine all of your home’s major parts and systems including but not limited to plumbing, electrics, and mechanics. Particular attention is paid to issues of which might pose a potential safety hazard for you.  Unfortunately, inspectors can only comment on conditions that are visible to them; they are not responsible for hidden defects. Don’t forget that it is essential that you are present for the inspection.  This gives you the amazing opportunity to educate yourself about your new home.  It is not unusual for an inspection to take in excess of two hours.  In fact, if your inspection feels too short it probably is.

A written report detailing the findings of the inspection is provided to the buyer within a few days.  Their report should identify problems that should be taken care of immediately and those that are not high priority but should be put on your list for future attention.  In most cases the parties can reach an amicable settlement as to who takes responsibility for these items.  Inspectors are unable to offer specific recommendations on how to repair the damaged systems. Furthermore, it is unethical for them to refer you to specific contractors.

Pre-requisites.

Before hiring a home inspection company, inquire about their work’s guarantee.  It is important that they possess an errors and omissions policy of insurance to compensate you in the event the inspection yields faulty findings. While somewhat dictated by geographic region, the average cost for a one family home inspection ranges from $350 to $700.  It is a small price to pay for piece of mind.

Seller’s Options.

It should also be noted that sellers can benefit from a home inspection prior to putting their home on the market.  To sell a home that has been pre-inspected with all required conditions taken care of by the seller is a wonderful marketing tool.

Whether selling or buying, the home inspection can make or break a deal.  Be sure to utilize these professionals to prevent any unwelcomed surprises.

Louis J. Macari Esq. CBR

Licensed Real Estate Broker

Lewis & Murphy Realty, Inc.

95-40 Roosevelt Ave.

Jackson Heights, NY 11372

718-446-0100

TAX ASSESSMENTS HAVE NOT KEPT PACE WITH FALLING VALUES

For the past several years we have witnessed the steady decline in Real Estate Values. Some areas have experienced more than 50% declines. In the meantime, states, cities, and towns have been struggling to make ends meet. The result is that the tax assessments have have not kept pace with the falling Real Estate Values. What can you do? All municipalities have in place a system to challenge the assessments. Any Owner of Real Estate can bring a procedure to do so and at that time offer proof of the lower value of their property.

OWNERS CAN FILE TO REDUCE THEIR TAXES

Sound complicated, it’s not. You can do it yourself with a little online research, or you can hire one of the many firms that specialize in filing these claims in your area. Most firms have the ability to let you know the chances of reducing your assessment before you file. Depending on the type of property, typical fees run 25% to 50% of the first years tax saving.

TIMING IS ALL IMPORTANT

It is extremely important to file your claim at the proper time. Each municipality has set a specific time window in which a claim may be filed. If you miss that period, by even 1 day, you lose your right to file for that year. So do a little research and find out the requirements for your town and prepare to file for a Tax reduction, or hire a professional now .  Good luck.

Louis J. Macari ESQ CBR

Licensed Real Estate Broker

Lewis & Murphy Realty, Inc.

718-446-0100

A day doesn’t go by when someone doesn’t ask me “How the market is doing and when will it come back”. My answer is always the same “The market has changed, but it is hot right now” They always stare at me as if I showed or listed one too many properties in my 50 year career.

PRICE IS WHERE IT’S AT!
“Price it right and they will come”. That is my philosophy. I am, and have been doing so for some time, preaching to Agents, and Clients alike, that Price is the key to the market place. Any property, no matter what the condition or location, will sell with multiple offers, if it’s priced right. An example of what I’m talking about recently played out with one of my office listings. One of my Brokers was consulted by a Seller to give an opinion as to the proper pricing of a property. The Broker did a thorough job of researching the value and the Seller settled on an asking price that we all agreed was reasonable. Within one week of the open house, our office has taken in 10 offers and expects to receive several more in the next few days. Cash down payments vary from 10% to all cash. 80% of the offers are within 10% of the offering price. All that remains is for the Seller to choose the qualified Buyer that he feels most comfortable with. At least 60 people viewed this house.  This house was in Brooklyn, NY, but the same holds true wherever the property may be located.  The house was sold because of the showings, and the showings resulted because it was properly priced. 

SELLERS HAVE TO FACE REALITY

Sellers have to face reality that it’s not what they want, but what it’s worth.
The moral of this story is that there are plenty of Buyers out there, with the means ready to buy, just show them a properly priced home.  It’s one of the better times to sell home because there is so much pent up demand out there.

So in answer to the Question, “Is the Market Hot?”, you bet, just price it right and they will come.

Louis J. Macari, Esq. CBR

Licensed Real Estate Broker

Lewis & Murphy Realty , Inc.

95-40 Roosevelt Ave.

Jackson Heights, NY 11372

718-446-0100

516-547-5016  (cell)

lmacari@lewismurphyrealty.com

Quite often an opportunity is missed to defer capital gains taxes during a real estate transaction. Sellers and listing real estate brokers often lack knowledge on how to best capitalize on these situations. This missed opportunity can cost you thousands (if not more).

TAX DEFERRED EXCHANGES
Section 1031 of the Internal Revenue Code permits a seller of investment property to exchange that property with another investment property of equal or greater value, while deferring the capital gain normally due until the future sale of the replacement property. Simply put, if you buy another investment property, you can delay owing the tax due on the investment you just sold! Imagine the possibilities! For example, a seller might exchange a high maintenance property for Triple Net properties requiring little or no owner involvement besides collecting the monthly rent. Another option would be to use that tax money to invest in the new project. This provides the exchanger the opportunity to purchase a building of much greater value than would have normally been possible.

TWO OR MORE FAMILY HOME CAN QUALIFY
Even an owner occupied two or more family home has the opportunity to utilize the benefits of a tax deferred exchange along with the $250,000-$500,000 exemption allowed to owners of a personally occupied residences. In this case, the combined use of these tax vehicles can result in valuable savings.

ADHERENCE TO THE RULES IS MANDATORY
These are just some of the options available to you! However, it is important to note that in order to benefit from these opportunities, you must carefully adhere to the rules. Seek the advice of a qualified Lawyer or Accountant before you sign off on a transaction.  If you fail to follow the guidelines appropriately, the exchange would be nullified. Fortunately, we at Lewis & Murphy Realty, Inc. are trained to recognize when an opportunity exists. With the help of trusted attorneys and accountants, we can help you find the best team to assist in your real estate needs. Give us a call at (718) 446-0100 so that we can provide specific feedback regarding your individual situation.

Louis J. Macari Esq, CBR
Licensed Real Estate Broker
Lewis & Murphy Realty, Inc.
95-40 Roosevelt Ave.
Jackson Heights, NY 11372
718-446-0100

SOME POSITIVE TRENDS FOR WOULD BE BUYERS & SELLERS

Of all the Real Estate concerns that people care about, “whether now is the right time to buy or sell a home” tops the list.
Reviewing the statistics of your local Multiple Listing Service might give you some insight into this concern. Looking at residential sales in Queens County NY reveals some positive trends for would be Sellers. Over the last 12 months the median closed sales price has increased by 8.8%. This doesn’t necessarily mean we’re in full recovery mode but maybe the market in this area is stabilizing. A good sign when your trying to sell your home. Additionally, average time on the market has decreased and the number of contract sales has increased over the last year. Another indication that Buyers are coming back into the sales arena. Considering the above results, the signs are positive for selling your house in this market. Always keep in mind however, that realistic pricing is the key to selling your house with the least bit of hassle and in the fastest possible time. Hopefully these trends will continue into the future giving us a more robust recovery.

PRICES CAN BE CONSIDERED “PRE-NEGOTIATED”
Historically mortgage interest rates have not been this low for more than 50 years. In addition home prices have come down to a level that you could call “pre-negotiated”.  Coupling the low interest rates and reduced prices  results in an opportunity for home buyers that might  not be available months from now.

THE MATH IS WITH YOU

It would be especially advantageous for someone selling a home and moving up to a more expensive home. Proportionately the loss sustained on the sale will be less then the price reduction you obtain on the new purchase, the math is with you.
It is always an individual decision, however, conditions now allow an educated consumer to take advantage of the current market conditions, whether they are selling, purchasing or both.

Louis J. Macari ESQ CBR
Licensed Real Estate Broker
Lewis & Murphy Realty Inc.
95-40 Roosevelt Ave.
Jackson Height, NY 11372
718-446-0100