Scott Donnellan

It looks as if Congress has extended the home buyers credit until April of 2010. What they did to make it even better for first time buyers was that they said as long as you are in contract by the end of April that you qualify for the credit. Another Interesting caveat is the fact that they also are including a $6500 tax credit for other people who are buying. I think this is a great thing because it potentially can lead to more trade up and trade down buyers. The credit was very successful for 2009 and I believe that it should be strong through 2010 as well.

Although the Real Estate picture throughout the country seems to be all gloom and doom, our local Long Island Market, and our Massapequa market in particular are still seeing homes sell for close to asking price. As buyers are searching for homes everybody seems to be looking for "deals", the problem with this deal hunting is that many buyers feel that they can steal someone's house from them! This is not the case. While there are still bargains to be had in the pre- foreclosure motivated seller market who has positive equity in their home, the majority of homes are being sold at market value. It is also still possible to see homes that go for over ask. With that said as a buyer if you can afford to buy a home for $400000 do not waste time seeing houses that are listed at $475,000. The seller will usually not take an offer that is 75k off asking price. Even if the house is over priced it pays to wait until the seller drops his price to a striking distance number! I would define striking distance at a number that is under 10% of ask price meaning if you want to pay $400,000 you should look at homes no higher than $430,000. That would put you at 93% of asking price if you can get your $400000 offer accepted and is within the market limits for a seller to consider. With this said if a home is priced well, or priced to sell, or if the home is in mint condition and it is at $430,000 you will probably have to pay $425,000 or maybe even ask price. To put it simple if a house is mint and you want it don't mess around by low balling the home owner, if the home is worth it don't be afraid to pay for it because of the "tough" market chances are the homeowner could have received alot more for his home 3 years ago so the deal is already in the price!

I keep getting calls from buyers who want foreclosures, and my answer is always the same. NO YOU DONT! Don't get me wrong there are some deals to be had in the foreclosure market, but they are not for everybody. First off the prices aren't much lower than other homes, and usually they are in serious disrpepair. Lets take a recent foreclosure in Massapequa that was sold for a decent price in Nassau Shores. The home had extensive water damage, mold issues, no copper wire left in the house, broken cabinets, and a broken heating system. The sales price on its own was a good deal, but when you factor in all the work that was needed to move into the house the home sale price and the improvements needed puts its total price at over comparable market price. Now I have seen some decent deals as well, but the people getting these deals are paying cash, and they have money to do work on the house. For instance if the buyer comes in all cash the banks are willing to take 85-90% of ask price, however if they are paying with a conventional mortgage they will be forced to pay pretty much asking price. In addition the banks who are now mortgaging the property do not want to close on an as is sale, which makes it even tougher to sell these foreclosures! So the moral of the story is if you are a first time buyer- stay away from the foreclosures and look for houses being sold by traditional sellers!

What a great time to buy a house. Between mortgage rates at 5 percent and below, the choice of houses and the willingness to negotiate it is a great market for first time buyers. Most people agree that first time buyers are in great shape but there is also a group of buyers that also can make out. These trade up buyers who are forced to sell for less, have an excellent opportunity to buy for less as well. Take a trade up buyer in Massapequa Park to move down to Harbor Green. The Park buyer will be forced to to take 5% less ( 450000 asking price take 22,000 off). They then can buy a home in South Massapequa listed at 650000 and if they get it for 5% off asking price takes 32,000 off. However even more important is that as you go up the price range teh market gets softer so potentially they may get it or 10% off of asking price, truly making out on the deal. IF you have any questions or would like a list of teh best priced homes in Massapequa and teh surrounding areas contact me at 516-655-3860.

AS we begin the new year it seems as if the year 2008 will be better than the last. It is a great time to buy a home, and to be honest with you becuase of this it is also a great time to sell a home. In teh first 4 weeks of teh new year I have noticed one key thing the buyers are out. Why is this all of sudden? Mortgage rates are very low. Just the other day I recieved a rate sheet for 30 year fixed rates in the 5.25 range. Sellers are getting more realistic with prices, and buyers realize that now is as good a time as any to buy a home. With rates where they are buyers can afford more, and don't have to wait for prices to come down any further! What does this all mean for the Massapequa market? Locally If you are looking to get into the neighborhood it is a great time to buy, and if you are looking to tradeup from Massapequa to one of the trade up neighborhoods, the buyers are there to buy your home. www.lirealtyassociates.com