Before selecting from long island homes for sale, learn the different factors to consider. Learning these factor helps make the experience less stressful. Knowing these important factors aids you in deciding which property to select and buy.
Decide the location
Long Island is a beautiful place that houses the most prestigious properties but the most expensive houses. Despite the reputation, averaged income earners can still buy a home in Long Island. Affordable real estate properties are available for sale in the region.
An averaged income home buyer may still be able to buy a property that values around $200,000, even on the parts of Long Island that sell the most expensive properties. However, such properties are in the category of “land only”. For land properties that have improvements such as house building, a home buyer may have to prepare half a million dollars to purchase the property.
On an average, Suffolk County has higher selling prices as compared to Nassau County. Finding an affordable property is quite easy. All you need to do is establish the location. From there, begin your search. Using a Real estate services from li-realestatefinder.com, you will get hundreds of results to choose from.
Apply for assistance program eligibility
The prices of long island homes for sale have not decreased. However, buying becomes affordable because of the many incentives that the government offers to first-time home buyers. For example in Nassau County, the government grants an assistance program worth $25,000. You may use this amount to pay the additional down payment and other closing costs. However, to avail of this assistance program, you must provide a $5,000 minimum down payment. In addition, the total assessed value of the property does not exceed $350,000. The same assistance program applies to the Suffolk County except that the amount is lower, which values at $14,000.
The disadvantage of availing such grants is limited choices. The government agency sets requirements in order to be eligible for the assistance. An example is you and your family must live in the house in the next 10 years. Moreover, the property must be within the territory of the government agency granting the assistance, which in this case refers to Nassau County. The house should also be your primary residence. Otherwise, you are going to repay the amount of the assistance program.
Know if you are eligible for a mortgage.
Even if you pass the eligibility and get an assistance program for paying your down payment, you still have to think of the monthly amortization. Get an assessment for a mortgage. Moreover, you also have to consider your capacity to pay.
Think of the monthly expenses you incur. Add the monthly amortization in case you buy the property. Make sure that you still have savings left after deducting these two major expenses from your monthly income. If you come up with a negative figure, find another property that is within your capacity to pay. Never speculate that your income might increase in the future. If you do or think this way, you might end up struggling to pay the mortgage. Worst, you might end up foreclosing the property you have dreamed of buying.
Ensure that the assessed value of the long island homes for sale is right.
The importance of right valuation affects the loan amount you are going to apply for in the future. The right assessment value means you will be paying the true value of the property. An appraiser uses three types of valuing a property. These are the cost, sales price, and income. The two valuations, cost and sales price, are used in valuing residential properties while the income method is more applicable for commercial properties. Before making any decisions, make sure that the valuation given to you is correct. Ask a second opinion if you think the valuation is too high.
Compare commission rates among real estate agents/brokers.
Commission rates differ from brokers to a broker. Some charge very high while others may charge a lower rate. The real estate agent determines the rate. The rate is a matter of perception. However, because homeowners choose agents that charge the lowest rate, real estate agents make sure that their commission rates are competitive. Usually, the average is 6%. Since agents’ income depends on getting your house sold, they are very motivated to look for a buyer. Even if you are a buyer, you may hire an agent to find the best house for you.
Comparing the rates between agents is easy because these agents broadcast their rates to entice potential clients.
Buying one of the long island homes for sale does not have to become complicated. All you need to do is be cautious. Hire the right real estate agent. Learn the different factors that affect your chance of purchasing a property. These factors may include a capacity to pay, mortgage eligibility and commission rates.