So many houses, so little time -- <a href="/topics/Real_Estate">real estate</a> experts offer these tips to help you navigate today's homebuying process

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Real Estate

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As the year ends, it's become clear that some parts of the real estate world still don't work very well. That's particularly true of the appraisal business. 
 From being blamed for helping create the housing bubble to being blamed for prolonging the housing crisis, the industry has suffered greatly over the past few years. Probably the biggest debacle was the enactment (and then retraction) of the well-meaning (perhaps) but misguided Home Valuation Code of Conduct (HVCC). 
 One of the most unpopular elements of the HVCC was the requirement that appraisers work for appraisal management companies (AMCs). Unfortunately, these still exist, having been adopted by many lenders. 
 According to David Bunton, president of the Appraisal Foundation, it's "ironic" that the AMC model has gained traction. 
 "One of the big myths is that lenders are required to use AMCs. In fact, they are not. Lenders are required to have a firewall and separation between the lender's representative who hires the appraiser from the one who makes the final decision on whether the loan is approved," Bunton explained. "Out of convenience, lenders have decided not to keep this process in house." 
 John Brenan, director of appraisal issues for the Appraisal Foundation and an experienced real estate appraiser, says there are a couple of problems with the AMC model from the appraiser's standpoint. "First, there is no additional revenue to fund AMCs, so the fee that an appraiser would earn is now divided between the AMC and the appraiser. Appraisers are making less money, and they have a new middleman they wind up working through." 
 Indeed, Brenan says, AMCs are offering to produce more appraisals for less money. "They're looking to engage the cheapest and fastest appraisers. So, we're seeing appraisals done across the country where the appraiser does not have what is, in fact, required under standards we write for geographic competency," he explained. 
 Geographic competency means an appraisal has direct and deep working knowledge of an area. And that knowledge was key to being a good appraiser. 
 Here's how appraisals used to work: The agent would meet the appraiser at the door of the property with a stack of comps, and they'd discuss what was happening with sales in the local area in the past few months. The appraiser would be knowledgeable about the area, having worked in it for a long time. He or she would have direct contact with the agent, and most appraisals would come in at or just above the purchase price. 
 It worked like a charm -- until it didn't. During the housing boom, appraisers were accused of inflating home values in order to help keep banks approving more loans for bigger sums. After the bubble burst, appraisers were accused of not approving the values of enough homes, hence killing deals. 
 It's awful being an appraiser -- especially since AMCs were adopted, which have pushed down the price appraisers are paid and installed a middle company as an extra layer to "protect" the banks and the buyers. (It isn't that consumers are paying less, which is what the proponents of this model thought would happen.) 
 The upshot is that appraisers who have never stepped foot in a neighborhood and who have no historic knowledge are now paid less to do an appraisal, and the results have been, in the words of one appraiser, disastrous. 
 One real estate investor, who says he has been in the business for 38 years, has a real estate license, an MBA, and is a certified residential appraiser in California, wrote an email to us, saying, "Good luck to all those who want a loan because with the appraisal management companies (AMC) requiring lower and lower fees to stay in business, appraisers like me take fewer and fewer assignments. The appraisals will get worse and worse. I just reviewed an appraisal that did not even use the correct form, had the heating incorrect on the subject and the comps, and did not adjust for the comparables being end units." 
 That should be troubling to industry observers, participants and loud lobbying voices. 
 "Most appraisers not going to turn around a top quality appraisal in 24 hours, for half of the normal fee. So you get people who are less experienced, who have less business clientele, and they may end up driving 4 to 6 hours for $150. We're concerned about quality," said Bunton. 
 The real problem is that appraisals are as much art as a science. And, as Bunton puts it, "It's hard to institutionalize art."

reAPPRAISE12

Home appraisal flaws more frequent with rise of appraisal management companies

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The New Year is always a time for Americans to vow to eat less and save more. After all, who doesn't want to be thinner and richer next year? 
 But a tradition of this column is to offer New Year's resolutions for home buyers and home sellers, plus a few New Year's financial resolutions that anyone could use to get their money in better shape. 
 First, the overview: As we look back over 2013, it's clear that the housing crisis has turned around. New monthly foreclosures are down to levels last seen in 2008, and new and existing home sales are stronger. Home prices surged midyear, and now those increases are moderating. It's plenty tough to get a mortgage -- and it might get a little tougher, now that the qualified residential mortgage rules are going into effect. 
 On the plus side, the Federal Reserve Bank continued to buy mortgage-backed securities and other securities to the tune of $85 billion per month during the year. Will that continue? That depends. While the labor participation rate is extremely low, the official rate of unemployment fell to 7 percent, the lowest in five years. Still, the true measure of unemployment says about 11 percent of eligible workers are unemployed. That hurts. 
 BELT-TIGHTENING 
 In truth, most families in America have tightened their belts further. For them, the recession hasn't ended. Purchasing power is lower and real income has hardly budged. For most Americans, this isn't a Christmas of plenty. Judging by our mail, plenty of homeowners are having trouble making their mortgage payments, even as delinquencies have fallen a bit from all-time highs. 
 There's still a brighter outlook for real estate now than at any time since 2007, even though new construction is stuck around 450,000 units per year, or about half of where it should be -- a depression by any stretch of the imagination. 
 Where does that leave buyers? The times aren't as good as they were a few years ago. Mortgage interest rates are at 4.5 percent for a 30-year fixed-rate loan, up 1 percent or so from last year. And prices are up as well. That means affordability is down. 
 EXPECT LOW RATES 
 As we said last year, mortgage interest rates will likely stay low through early 2015, or until the economy really starts taking off. Janet Yellen will likely (as of this writing) take over for Ben Bernanke in January, but she isn't expected to change much. 
 If you're hoping to buy a home to live in or to invest in during 2014, here are a few New Year's resolutions: 
 1. Understand your credit history and credit score. For better or worse, these will rule your financial life. You can get a free copy from each of the credit reporting bureaus once a year from AnnualCreditReport.com, but you'll still have to pay for your score (about $9). It's worth knowing what your score is before you apply for a loan. 
 2. Find the best loan, on the best terms. That means you'll have to do your homework. Despite the government securing or guaranteeing nearly all loans through Fannie Mae, Freddie Mac and FHA, banks are offering different terms. Talk to at least four or five lenders before making a decision. 
 3. Build the best home-buying team. Whether you're buying investment property or a home to live in, you'll want to create a team of real estate professionals who can help you find the right property, at the right price, on the best terms, without any headaches. 
 Think about including a great real estate agent, mortgage lender, real estate attorney, tax preparer (with experience in investment real estate if you plan on buying real estate as an investment), and real estate home inspector to start. Residential real estate investors will want to add a 1031 exchange professional and commercial (if appropriate) inspector to the mix.

reBUYING31

New Year's resolutions for 2014 home buyers in rebounding market

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Real estate agents see it all -- from unmade beds to overstuffed garages to the "What were they thinking?" decor. 
 Over the years, they learn why some houses sell while others linger on the market, and why some promising buyers never make it to the closing table. They know how to get a better deal on the mortgage, and how much the other agents stand to make on your home. 
 The good news is, they want to share. 
 The information is useful whether you're a buyer, a seller or both. 
 In today's market, sellers are again optimistic about the value and price of their homes -- "but buyers aren't," says Ron Phipps, principal with Warwick, R.I.-based Phipps Realty, and past president of the National Association of Realtors. 
 "Your challenge as a seller is to price the house so that it is compelling," he says. 
 What does that mean? 
 "Set a price slightly below market value," he says. Just "a fraction." 
 For example: If similar homes in your neighborhood are clustered around $210,000, you might price yours at $200,000 or $198,000, he says. 
 "The longer a house is on the market, the less likely you are to get fair value," Phipps says. "So you really want to position yourself to be the one that sells, not the one that languishes." 
 And the adage of not wanting to leave any money on the table? Still valid. 
 If you're also buying a home, and you already have cash in hand, thanks to a fast sale, "that puts you in a very powerful position," Phipps says. 
 For many potential buyers, frugality ends the minute they get pre-approved for a mortgage, Phipps says. That's when they start running up the cards and opening new lines of credit to buy things for their home-to-be. 
 But that pre-approval letter is just one of the first steps in the home buying marathon, not the finish line. 
 Just before closing, a lender will re-examine a prospective buyer's financial situation -- complete with a recent copy of the credit history and other updated information. 
 If those numbers have changed for the worse (salary decrease, higher card balances, new lines of credit), then the applicant could get clocked with a higher interest rate or even lose the loan. "The number of buyers who get denied is significant," Phipps says. 
 The moral? Never get new loans or start using credit cards more heavily until after you've actually closed on the home. 
 Even better, retain your frugality until you've been in the home for a few months and have a good sense of how homeownership affects your finances, Phipps says. 
 If you're selling a home, it's important to understand the timeline, says Jeffry Wiren, principal broker with Re/Max Equity Group and past president of the Portland, Ore. Metropolitan Association of Realtors. 
 Underestimating the time it takes -- and building a schedule around those unrealistic expectations -- adds stress, Wiren says. 
 Wiren's schedule breakdown: 
 * -- Getting your home in shape: two weeks 
 * -- Average time on the market (varies widely with location and price): 2 1/2 to three months 
 * -- Negotiating after an offer: one week 
 * -- Preparing to close (assuming a traditional transaction): 30 to 45 days 
 A smart seller allows a minimum of four to six months to sell, Wiren says. 
 To prove their worthiness, sometimes prospective buyers will show a prequalification letter, Wiren says. "And that means nothing." That's because in a prequalification, lenders usually don't verify buyers' information. But preapproval involves third-party verification. 
 "'Prequalified,' that means they've talked with a lender and said, 'I have good credit and I make 'X' number of dollars a year,'" Wiren says. 
 Based on that, the lender responds that the buyer can reasonably expect to borrow a certain amount -- if those self-supplied facts are accurate and there aren't any negatives, he says. Most lenders don't research those details until the buyer applies for a loan, he adds. 
 Serious (and smart) buyers are "preapproved." That means they've already applied for the loan, the bank has verified their financial information and (if the numbers remain the same until closing), it promises to loan a specific amount at a specific interest rate. 
 Still, after an offer, smart agents will call the lender and verify that the prospective buyer is preapproved for the necessary amount, Wiren says. At the same time, that agent will verify that the lender would have no problem closing in the expected time period -- usually 30 to 45 days.&nbsp; 
<hr> 
 Mortgage rates jumped the week of Dec. 5, 2013 amid stronger-than-expected growth in the private-sector labor market. The 30-year fixed-rate mortgage rose 11 basis points to 4.55 percent. A basis point is one-hundredth of 1 percentage point. 
 The 15-year fixed-rate mortgage rose 15 basis points to 3.62 percent. The average rate for 30-year jumbo mortgages, or generally for those of more than $417,000, rose 12 basis points to 4.57 percent. 
 The 5/1 adjustable-rate mortgage rose 4 basis points to 3.33 percent. With a 5/1 ARM, the rate is fixed for five years and adjusted annually thereafter.

reTIPS08

Home buying, selling tips from brokers in shaky 2013 market

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The year-end holiday season is a good time for gift-exchanging, entertaining and general merriment. But what about buying a house? Should you try to do that in November or December, too? 
 If you're not picky about the home you intend to buy, the answer might be yes. 
 Sellers tend to avoid the end of the year because of the short days, wintry weather and conventional wisdom that says buyers are otherwise occupied, says Tim Deihl, associate broker at Gibson Sotheby's International Realty in Boston. Those who sell at year-end are often under pressure and highly motivated to cut a deal. 
 "A seller who's looking to move a piece of real estate during the holidays is a seller who needs to sell, because nobody in their right mind would pick that as the most convenient time to list their property," Deihl says. 
 That's why it might be a smart time to buy: Determined house-hunters can take advantage of sellers' urgency. 
 The biggest downside is the limited supply of for-sale homes, which occurs mainly because sellers are so uninterested. 
 If you can't find a home you like, you might be able to tap into homes that aren't on the market, says Ken Pozek, a real estate agent at Keller Williams Realty in Northville, Mich. 
 One strategy is to research what brokers call "old expires" -- homes that were listed several years ago but weren't sold. 
 Another approach is for the broker to send letters to homeowners in your preferred neighborhood, trawling for someone willing to sell a home that meets your criteria. 
 A third technique is to call brokers who sell a lot of homes in your target area and ask about homes that aren't yet listed, but are being prepped for sale and are "coming soon." 
 Less competition from other buyers might mean you'll be able to negotiate a favorable price. "Those properties oftentimes are priced to sell," Deihl says. "It could be an opportunity to sacrifice a little bit of time during an otherwise very busy time of the year to get a better investment opportunity." 
 Still, with fewer homes from which to choose, you might have to lower expectations. 
 "If a house comes up that works for you, it should be a pleasant surprise. I wouldn't set a realistic expectation of finding your dream home during that period," Deihl adds. 
 One pitfall in year-end house shopping is that homes in cold-weather states might have defects hidden by snow, only to be discovered by thaw in spring. 
 Photographs of the home taken earlier in the year and a home inspection can help mitigate some of the risk. 
 Not only sellers and buyers, but also real estate professionals like to take time off from work in November and December. Realtors and mortgage brokers have friends and family, too. 
 That said, many pros do work during these months, precisely because they know many buyers have vacation time to devote to year-end house hunting, Pozek says. 
 Either way, it's a good idea to ask your agent what his or her plans are so you won't be caught off guard or left hanging if your calls or emails suddenly aren't answered as quickly as you'd expected. 
 Individual mortgage brokers also might take some time off at the end of the year. But it would be unusual for a mortgage company or bank to be closed any normal business day other than Thanksgiving, the day after Thanksgiving, Christmas Day and New Year's Day, according to Julie Miller, branch manager at Broadview Mortgage in Tustin, Calif. 
 "I don't know of any mortgage company or bank that closes for longer than the typical holidays," she says. 
 If you're a serious buyer, you needn't be shy about intruding into sellers' homes at a time normally reserved for family and friends. If a home is for sale, presumably the owners want sincerely interested buyers to see it. 
 "If a seller is willing to put their house on the market during the holiday season, they really want buyers to come in," Pozek says. "If there is a for-sale sign, it's a welcome sign."

reHOLIDAYS17

Home buying during the holiday season offers benefit

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Home inspectors and real estate agents often work together, but not always for the best interest of the homebuyer, says Bruce McClure, a Toronto-based licensed home inspector and author of "Buy or Run: I'm a Real Home Inspector Not a TV Celebrity!" 
 Too many home inspectors turn a blind eye to serious issues with a house to help close the deal, said McClure. That leads to unsuspecting homebuyers who have paid good money for a home inspection only to end up with a house of horrors. 
 "Home inspectors are small business people and the majority of us will market our services to Realtors," McClure said. "They know if they go out and blow the sale for the Realtor, the Realtor will not refer them in the future. 
 "People like myself gain a reputation for being deal killers because I work for my client -- the homebuyer. I want to protect their best interest, which means pointing out issues and telling them what's wrong with the house and things that may end up costing them money." 
 A home inspection can make or break a real estate transaction. Buyers often have the right to back out of a contract to buy a house or ask for a lower purchase price if the results of the inspection reveal significant structural problems. 
 In the United States, only 35 states have licensing requirements for home inspectors. 
 The American Society of Home Inspectors estimates that nationally there are 25,000 to 40,000 home inspectors. There is no official number of home inspectors because some states have no licensing requirements and there are multiple volunteer associations that set standards for the industry. 
 "There is no standard inspection format," McClure said. "Many jurisdictions stipulate that the inspector must follow the American Society of Home Inspectors or the Canadian Association of Home and Property Inspectors standards of practice, but do not require the inspector to be a member of either association. 
 "As a result, there's no one making sure these inspectors follow the standards or rules." 
 At one time, the property appraisal industry faced similar criticism for doing a poor job of estimating the value of real estate before the housing bust, largely because appraisers were influenced by Realtors and financial institutions that needed homes to have a certain value to complete a sale. Now property appraisers are guided by different rules meant to avoid any conflicts of interest. 
 Walter Molony, a spokesman for the National Association of Realtors in Washington, D.C., said real estate agents do refer buyers to home inspectors and vice versa. He said real estate agents look for someone with no conflict of interest. The home inspector should provide a written report and welcome the buyers to go along on the inspection to take notes. 
 Molony also said the home inspector should be a member of a professional industry organization. 
 Stephen Gladstone, owner of Stonehollow Fine Home Inspection in Stamford, Conn., and 2004 president of the American Society of Home Inspectors, said he has been in the business for 30 years and he agrees with many of the points raised by McClure. 
 "Like any business, as you get better you see things," he said. "The more experienced inspectors out there will see the items that are important. They will see that house for what it is and that may scare a Realtor." 
 Home inspectors could be liable for failing to point out serious problems in a house, which is why they are required to have errors-and-omissions insurance. McClure said lawsuits against home inspectors are far more common than many people realize. Some of the lawsuits are trivial, others major. 
 "We somehow need to separate the home inspection from the real estate contract and the influence of the Realtor," he said. "Until we do this, government licensing, rules and regulations won't mean anything because at the end of the day, Realtors are in charge."

reINSPECTOR10

Best home inspectors work for buyer -- not real estate agent

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Riding out the life cycle of a mortgage isn't for the faint of heart -- or wallet. It can cost big bucks to buy, maintain, renovate and sell a home. And if you're not careful, your dream house could send you to the poorhouse. 
 Intensifying the sting from those expenses is the still-shaken real estate market, in which property values are slowly recovering from a historic downturn. 
 Even with all those factors in play, owning a house doesn't have to be your undoing, experts say. But the perils of home ownership can get the best of you if you fall prey to any of these five scenarios. 
 As a general rule of real estate, the higher the listing price, the more impressive the home will be. So if you don't want to blow your budget, avoid looking at houses above your price range in the first place, says Patricia Pipkin, a Realtor in Santa Fe, N.M., and a regional vice president for the Chicago-based National Association of Realtors. 
 Buyers need to carefully evaluate their finances before they begin house hunting, and then be honest with their real estate agent about what their income, savings and credit affords them, she says. 
 That also means factoring in supplemental expenses such as taxes, insurance, repairs and homeowners association fees. Insurance and tax alone sometimes exceed the principal and interest of the loan, says Randy Lovitt, president of Century Title Inc., a title company in Metairie, La. "And expect that component of your payment to go up constantly over time. Insurance goes up, and taxes never go down," he says. 
 The housing meltdown called into question the long-held belief that individuals can build wealth through home ownership. Experts say you have to be savvy about the notion of a personal residence as an investment. 
 "A house is certainly part of your portfolio, but it should not be your primary investment," says Jerry Basford, a personal finance professor and associate vice president for business and auxiliary services at the University of Utah. 
 A young professional seeking career advancement might not want to stay put for the five to 10 years it usually takes to see a return on the investment, Basford says. 
 "Many people still believe purchasing a home is the ultimate way to show that you're financially stable. And today, for a lot of young people, that may not be," he says. 
 Real estate professionals such as Pipkin remain optimistic about property investments. Prices are improving in some areas, and mortgage rates have risen, but are still low by historical standards. 
 "If you're going to look at it as a long-term investment, usually things do work out," Pipkin says. 
 Skip out on a few bucks' worth of maintenance, and you might set yourself back thousands in the long run. 
 Failing to replace air conditioning filters regularly could shorten the life span of the AC. Replacing a unit typically runs thousands of dollars, says Claude McGavic, executive director of the National Association of Home Inspectors in Bradenton, Fla. 
 Homeowners also need to be vigilant about warning signs in their homes, McGavic says. When wiring is older, flickering lights can signal an electrical problem that could eventually cause a fire. Or the sudden appearance of tiny specks that resemble granules of pepper around the house can indicate termites. 
 Think twice before hiring a handyman or a brother-in-law to tackle your remodeling project. 
 If you don't employ a licensed contractor and attempt to save a few bucks by relying instead on someone less experienced, you might end up spending far more than what you budgeted. 
 One of the biggest mistakes McGavic sees is that people don't obtain the proper permits for their work. If you fail to obtain a building permit, your repairs could come under scrutiny when you try to sell your home. 
 "If you ever get caught, there's a fine. Plus you have to pay for a permit. Plus, you'd have to pay for a contractor to fix it. That can be expensive," McGavic says.

reAFFORD03

Home buying tips: Don't be trapped by financial pitfalls

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Parting with tens of thousands of dollars in a single transaction is a scary prospect for first-time home buyers. Before laying out that down payment, they want reassurance that a starter home purchase will be a wise investment -- one that will build equity and pave the way for a trade-up in a few years. 
 The good news is that while prices and mortgage interest rates remain relatively affordable, it's becoming a much safer bet than it was several years ago that the value of a home purchased today will appreciate. "Inventory in the last six months is hitting the point where we're starting to see evidence of price appreciation -- or, worst case, stability, and poised for an increase," says real estate analyst Jonathan Miller of Miller Samuel, a Manhattan-based appraisal firm that tracks Long Island real estate. "This is the beginning of the next era of the housing market." 
 Price stability 
 For the best odds, stick with communities where home prices have shown a good track record. The most stable markets tend to have reasonable taxes and ample moderately priced homes, because that's where demand is steadiest, says Kevin Leatherman, president of the Multiple Listing Service of Long Island. There tend to be fewer surprises in these markets than in those where demand may be somewhat tied to weather, the economy or other unpredictable forces. 
 Trade-up potential 
 A good starter neighborhood also should have a healthy supply of move-up homes, says Mary Alice Ruppert of Realty Connect USA. Buyers who can trade up tend to be less transient and more committed to the community, she says. 
 And the last piece of the puzzle, though hard to quantify, should be obvious: Realtors cite well-kept homes, brisk local commerce and lively turnouts for community events as the visible hallmarks buyers seek in the quintessential nice neighborhood. Look for them even if they're not important to you, because they're likely to appeal to future buyers -- after all, a starter home, by definition, is bought to be sold. 
 Size and price 
 Local Realtors say starter homes typically have three bedrooms and one to 1 1/2 bathrooms and range in price from $275,000 to $380,000 in Nassau and $250,000 to $350,000 in Suffolk. What follows is a sampling of five safe-bet starter- home communities where houses have held their value. Communities were selected by comparing the median sales price and the number of sales for the year ending in August 2013 with the same figures for the year ending in August 2012, according to data provided by the Multiple Listing Service of Long Island. 
<hr> 
 VALLEY STREAM 
 TRACK RECORD The median sales price in Valley Stream rose 1.5 percent, from $325,000 for the year ending in August 2012 to $330,000 for the year ending in August 2013. The number of sales rose 13.4 percent for the same period, from 299 to 339. In the past 12 months there were 378 sales, ranging from $41,000 for a one-bedroom co-op with a monthly maintenance fee of $893 to $640,000 for a four-bedroom Colonial with annual taxes of $10,481. Some 277 of those homes were priced at less than $380,000, making up 73 percent of sales. 
 WHAT'S AVAILABLE There are 186 homes listed in Valley Stream. Prices range from $55,000 for a one-bedroom co-op with a monthly maintenance fee of $715 to $659,000 for a five-bedroom Colonial with annual taxes of $13,200. There are 92 homes priced below $380,000, making up 50 percent of homes listed. 
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 COMMUNITY LIFE Diverse Valley Stream has something for every stage of home ownership. "They have starter homes, they have medium homes and now they're building senior communities around the railroad station there," says Susan Helsinger of Douglas Elliman Real Estate. She says singles like being close to nightlife and the city. When they're ready to trade nightlife for family life, Valley Stream is ready for them. "It's a very good family community," says Helsinger. "They have one of the best chambers of commerce . . . very community-oriented." 
 There was a lively turnout for the recent Community Fest, a street fair celebrating Valley Stream's culture and businesses with music, food and activities. In addition to smaller businesses, Valley Stream is home to Green Acres Mall. 
 The community is getting excited for upcoming Halloween activities at Valley Stream's Hendrickson Park, including pumpkin painting and costume contests. And each summer at Fireman's Field, "they do a Fourth of July that's unbelievable," says Mary Alice Ruppert of Realty Connect USA, referring to the popular fireworks display. There's a summer concert series as well. 
 $359,000 
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 This three-bedroom, 1 1/2-bathroom Colonial in the Valley Stream 24 school district has hardwood floors and new windows. Annual taxes on the 40-by-100-foot lot are $7,873. It's listed with R. Cory Knopf of Hal Knopf Realty Inc. 
 SOUTH SETAUKET 
 TRACK RECORD The median sales price rose 7.7 percent, from $336,000 for the year ending August 2012 to $362,000 for the year ending August 2013, and the number of sales increased 33 percent, from 36 to 48, for the same period. In the past 12 months there were 49 sales in South Setauket, with prices ranging from $200,000 for a four-bedroom high-ranch with taxes of $6,859 to $650,000 for a four-bedroom ranch with taxes of $16,808. Some 18 of those homes were priced at less than $350,000, making up 37 percent of sales. 
 WHAT'S AVAILABLE There are 34 homes listed in South Setauket. Prices range from $239,990 for a four-bedroom ranch with taxes of $8,199 to $750,000 for a four-bedroom Colonial with taxes of $15,877. There are seven homes priced below $350,000 -- 21 percent of homes listed. 
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 COMMUNITY HIGHLIGHTS South Setauket is a great choice for first-time buyers who love the Three Village area and schools but may be priced out of the district's typically costlier areas such as Setauket and East Setauket. For some buyers, South Setauket is a smart steppingstone on the way to a North Shore neighborhood. Others choose to stay and expand, or trade up within the community, which has Colonials both old and new, ranches and Capes. 
 Either way, "they have pretty much everything at their fingertips," says Rose Raimondo Ricardo of Coldwell Banker Residential. "What keeps them there is the proximity to the roadways and shopping. It's a good community, close to the North Shore, parks and beaches." It is also convenient to stores and restaurants on Route 347 and Route 25A, as well as the Smith Haven Mall. It also offers easy access to cultural arts at the Staller Center on the Stony Brook University campus. 
 South Setauket students attend Ward Melville High School. Known for earning academic accolades, the school also throws an impressive homecoming shindig with a pep rally, bonfire, carnival, live music and, of course, the big game. 
 $349,000 
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 This three-bedroom, one-bathroom ranch in the Three Village school district features a granite counter in the bathroom. It's listed with Rose Raimondo Ricardo of Coldwell Banker Residential. Annual taxes on the 0.23-acre property are $9,000. Click <a href="http://long-island-homes.newsday.com/eng/sales/detail/188-l-12694-2616411/88-bellwood-ave-south-setauket-ny-11720" target="_blank">here</a> for more information. 
 LEVITTOWN 
 TRACK RECORD The median sales price in Levittown rose 4.3 percent, from $297,000 in the year ending August 2012 to $310,000 in the year ending August 2013. The number of sales rose 3.6 percent, from 300 to 311, over the same period. In the past 12 months there were 317 sales in Levittown, ranging in price from $132,500 for a studio condo with annual taxes of $2,917 to $600,000 for a four-bedroom newly built house with annual taxes of $13,500. Some 270 of those homes were priced at less than $380,000, making up 85 percent of sales. 
 WHAT?S AVAILABLE There are 104 homes listed in Levittown. Prices range from $225,000 for a four-bedroom Cape with taxes of $9,374 to $599,000 for a six-bedroom Colonial with taxes of $17,639. There are 73 homes priced below $380,000, making up 70 percent of homes listed.&nbsp; 
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 COMMUNITY LIFE ?Levittown is a perfect example of a starter home community,? says Susan Helsinger of Douglas Elliman Real Estate. In fact, Levittown is where the starter home concept was born. Developed rapidly at the end of World War II to provide affordable homes for returning veterans, Levittown quickly became known for its side-by-side, 60-by-100-foot lots and uniform rows of ranches and Capes.&nbsp; 
 That uniformity has largely given way to variety over the years. ?A lot have been expanded,? says Mary Alice Ruppert of Realty Connect USA. That?s because in this tightly developed suburb, it?s not uncommon for growing families to build up rather than trade up, turning their starter home into their dream home. 
 Buyers like the central location, with easy access to Hempstead Turnpike and Wantagh Parkway. In recent years, revitalization efforts have brightened parts of Levittown?s business districts with new sidewalks and spruced-up storefronts. The parks received upgrades, too. Locals enjoy classic suburban pastimes such as movies and bowling; for instance, singles played amusing icebreaker games during a bowling mixer at South Levittown Lanes last week. Families favor Levittown?s annual Lazy Days of Summer festival, which offers face painting, pony rides and other kid-friendly fun. 
 $298,000 
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 The bathroom, roof, furnace, wood floors and stainless-steel appliances are all new in this three-bedroom, one-bathroom Cape. The home is in the Levittown school district. Annual taxes for the 60-by-100-foot property are $9,274. It?s listed with Jill Brown and Susan Hucke of Daniel Gale Sotheby?s International Realty.&nbsp; 
 
 HOLTSVILLE 
 TRACK RECORD The median sales price in Holtsville held steady at $340,000 for the year ending August 2012 to the year ending August 2013. The number of sales rose 25 percent, from 60 to 75. In the past 12 months there were 119 sales in Holtsville with prices ranging from $70,000 for a one-bedroom co-op with a monthly maintenance fee of $631 to $600,000 for a four-bedroom Colonial with taxes of $13,003. Some 81 of those homes were priced at less than $350,000, making up 68 percent of sales. 
 WHAT'S AVAILABLE There are 68 homes listed for sale in Holtsville. Prices range from $124,990 for a one-bedroom co-op with an $843 monthly maintenance fee to $599,990 for a four-bedroom Colonial with annual taxes of $10,000. There are 44 homes priced below $350,000, making up 65 percent of homes listed. 
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 COMMUNITY HIGHLIGHTS Residents of all ages gravitate to the Town of Brookhaven Ecology Center and Animal Preserve in Holtsville. There's a zoo with an assortment of rescued wildlife on exhibit, playground, fitness trail and three-pool swimming complex. The center is also the site of seasonal festivities -- for instance, locals gather here each February to hear the Groundhog Day prognostication of furry resident Holtsville Hal. 
 Dinner and a movie are easy to come by in Holtsville. The theaters at Island 16: Cinema de Lux in Holtsville features stadium seating. There are also three Director's Halls where, for an extra $3, you can reserve specific seats in advance, and servers will deliver food and drink orders to your seat. There's even a small bar on the premises, Chatters Bar &amp; Grill, where moviegoers can enjoy cocktails and pub fare. Several restaurants share the parking lot with the multiplex, as well. 
 A starter home budget in Holtsville can get you anything from a two-bedroom condo to a five-bedroom high-ranch, as well as an assortment of Colonials, split-levels and Capes. When you're ready to trade up, there's a gated homeowner association with newer Colonials. New homes are under construction, as well. 
 $299,990 
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 This three-bedroom, two-bathroom ranch in the Sachem school district features a large den with skylights. Annual taxes for the 120-by-100-foot property are $8,475. It's listed with Cynthia Durand of Realty Connect USA LLC. 
 MALVERNE 
 TRACK RECORD The median sales price in Malverne rose 3.5 percent, from $361,250 in the year ending August 2012 to $374,000 in the year ending August 2013. The number of sales went from 76 to 74 over the same period, a 2.6 percent dip. In the past 12 months there were 81 sales in Malverne, with prices ranging from $200,000 for a two-bedroom Cape with taxes of $7,537 to $595,000 for a four-bedroom Colonial with taxes of $17,033. Some 35 of those homes were priced at less than $380,000, making up 43 percent of sales. 
 WHAT'S AVAILABLE There are 34 homes for sale in Malverne, with prices ranging from $328,000 for a two-bedroom Colonial with taxes of $11,365 to $749,000 for a five-bedroom Colonial with taxes of $17,373. Twelve homes are priced below $380,000, making up 35 percent of homes listed. 
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 COMMUNITY LIFE Malverne is a surprising oasis of quaint village living that belies the community's proximity to the city -- about a 42-minute train ride from the Long Island Rail Road Malverne station to Penn Station. 
 "There's a lot of charm and character," says Kevin Leatherman, broker owner of Coldwell Banker Surf in Rockville Centre. "It's very residential. . . . It has an old-town feel." This is, in part, because local commerce consists mostly of village shops and restaurants as opposed to strip malls, Leatherman says. 
 Attractions include a movie theater, 16-lane bowling alley and Crossroads Farm at Grossman's, a working certified organic farm where the Malverne Civic Association held its annual wine tasting last week. 
 $350,000 
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 This three-bedroom, 1 1/2-bath ranch in Valley Stream's 13 school district has stainless-steel appliances. Annual taxes for the 100-by-102-foot property are $11,073 after a STAR reduction of $1,303. It's listed as a short sale with Cheryl Uram of Douglas Elliman Real Estate. 
 MEDIAN SALES PRICES 
 Nassau County: $445,000 
 Suffolk County: $347,750 
 SOURCE: Multiple Listing Service of Long Island through August 2013

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Best places to live on Long Island for first-time home buyers

Setauket Homecoming 1 -crop /

When hunting for a family-friendly house, there are many factors that come into play beyond a bedroom and bathroom count and the overall square footage. 
 There's the jealousy issue. While it's hard to find a home that has identical room sizes for all kids, child experts suggest considering whether this will be a huge problem and how to remedy the issue. Perhaps giving a child with the smaller room a small extra closet all to himself will help. 
 Children won't simply stay in their rooms all day, however -- there should be designated playrooms or other interior spaces that can be converted, such as a finished basement, spare bedroom or finished attic, says Stacy Zigman, a Re/Max Central Properties licensed broker associate based in East Meadow. 
 The exterior of the home should also be kid-friendly. "Is there ample room to install a swing set, jungle gym or trampoline?" Zigman asks. "Is the yard spacious enough for kids to run around and enjoy their favorite outdoor activities?" 
 Kelly Maughan could check off all those boxes when she bought her four-bedroom, 3,000-square-foot Greenlawn home in July. 
 Maughan, a 45-year-old chief financial officer for a private equity group, says she was looking for a large house with a spacious backyard so that her 5-year-old twin boys would have room to run and play. 
 This one has a finished basement, complete with a playroom. The kitchen opens to the living room, so Maughan and her husband, Bobby, can watch them play while they're cooking. Or, if the kids play in the backyard, they can see them through the windows. 
 But a great family house doesn't exist without a great family street enveloped within a great family neighborhood. This one's got that, too: Maughan's house is on a cul-de-sac. 
 "I'm not concerned about them being in front of the house because it's in a nice, quiet community," she says. 
 Jane Spring, 40, a stay-at-home-mother, says she and her husband, Brian, were specifically looking for a beautiful home in a neighborhood where her three daughters would feel safe walking around with their friends when she came upon a historical four-bedroom Victorian with water views in Northport. 
 They moved into the home in May, and Spring's 11-year-old says she loves being able to walk with her friend to grab pizza and an ice cream. 
 "She was never able to walk anywhere where she used to live," Spring says. "I loved my old house -- we had a beautiful home. But we moved for the location." 
 The Barbaro family also moved for their location -- and found their family-friendly home within the perfect Long Beach neighborhood. Tom Barbaro and his wife, Carissa Lopez-Barbaro, chose their three-bedroom home because it is close to the beach, but also close to the Long Island Rail Road, so Tom Barbaro could get quickly to his Manhattan office, where he works in online advertising sales. 
 They checked out the schools, and say they were pleased, which is important because they just had their first child. 
 Baby Cole is 2 months old, and the Barbaros say they love that his nursery is next door to the master bedroom. They also say they love that the home can grow with them if they decide to have more children. 
 "We could build another level if we decide to have a larger family," Carissa Lopez-Barbaro says. 
 HELP KIDS ADJUST TO THE MOVE 
 You may be excited about finding the perfect home for your family -- but your kids may not be as enthusiastic. Howard Traub, a Roslyn clinical psychologist, explains how to make this big adjustment a little easier. 
 How early should you start preparing your child for the move? 
 I recommend that parents prepare their children for a move very early in the moving process. It will be less confusing and overwhelming for them to understand why they are moving and what they can expect over the coming weeks. It is also important to remember that your child may see a "For Sale" sign on your lawn, in addition to real estate agents and prospective buyers in and out of your home. Parents should also expect that their child may get upset and cry. Showing sadness and crying are appropriate and healthy ways to express emotion. During these times, I recommend that the parent just sit by their child, listen and nurture. 
 What can you do to get them used to the idea of moving? 
 Providing information about the process and encouraging the child to ask questions will help them to begin to develop emotional control over what is occurring around them. 
 Is there anything you can do to make them feel like they're an active part of this move? 
 Involve the child in picking out some fun new home purchases, like televisions, gaming and music systems, and especially decorative items for their new bedroom. I would recommend letting the child pick out at least one or two new items for their bedroom that are geared specifically toward their interests. This will promote feelings of excitement and a sense of control as they settle into their new room. 
 Involve the child in the packing process as well. Children feel great pride and accomplishment when they are put in a position of responsibility. Find simple tasks such as letting them help decide what to keep and what to discard. Involving the child in some of the decision-making will again help them to feel in control of the process. 
 What can you do on moving day to make it less stressful for your children? 
 Children often like to feel they are grown-up and responsible like their parents. Have the child carry some small objects or boxes that they can bring all by themselves to the moving truck. This helps foster a sense of mastery and esteem for the child. Another important strategy is to keep a box of the child's special and favorite items in a separate and safe place. This box does not go into the moving truck, but goes in the car with the parents when they drive to the new home. This box should be given to the child upon arriving at the new home, so they immediately have some of their favorite and familiar things. 
 Once you've moved, what can you do to make the adjustment period less difficult? 
 Priority should be given to setting up the child's bedroom first, as this is their safe place for rest and play. To help the child adjust, a sense of order and structure needs to be re-established quickly. This will also help the child gain control over his feelings of anxiety, which likely will spike in the first few days after the move. A special dinner could be planned for the first dinner in the house. Cook the child's favorite meal or take them out to their favorite restaurant. The idea is to make those first few days feel special for the child. 
 MAKING HOME COMFY FOR KIDS 
 <img align="right" src="http://cdn.newsday.com/polopoly_fs/1.6146724.1380223737!/httpImage/image.JPG_gen/derivatives/landscape_228/image.JPG" style="padding: 1px 1px 1px 1px">If you want a basic outdoor swing set, the Flexible Flyer Fun Fantastic Swing Set with Plays ($300 at amazon.com) may be the one. This has everything your children will ever want -- and it could give you a few minutes of peace and quiet every afternoon. 
 <img align="right" src="http://cdn.newsday.com/polopoly_fs/1.6146693.1380223565!/httpImage/image.JPG_gen/derivatives/landscape_228/image.JPG" style="padding: 1px 1px 1px 1px">Just because you have children living in your home doesn't mean you have to turn your fancy living room over to plastic princess chairs. Everyone can feel at home if the kids are sitting in the Magical Harmony Kids Pink Micro Sweet Child Chair ($120 at overstock.com). 
 <img align="right" src="http://cdn.newsday.com/polopoly_fs/1.6146712.1380223707!/httpImage/image.JPG_gen/derivatives/landscape_228/image.JPG" style="padding: 1px 1px 1px 1px">Transform your backyard into a magical fairyland with the CedarWorks Serendipity 1 ($25,900 at cedarworks.com) swing set. It almost looks like an addition to a home -- and you may not want to remove it even when the kids outgrow it. All sets are custom-configured, but it is recommended that you have a total of 30 feet front-to-back for the swing area. 
 KID-FRIENDLY, AND FOR SALE 
 Kids dream house 
 Location: Huntington Bay 
 Listing price: $1,650,000 <a href="http://long-island-homes.newsday.com/eng/sales/detail/188-l-2113468-2595427/10-harbor-hill-rd-huntington-bay-ny-11743" target="_blank">(more info)</a> 
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 Bedrooms and bathrooms: 6 bedrooms, 6½ bathrooms 
 Kid-friendly details: There are six bedrooms on the second floor, and each bedroom has its own bathroom. It's also a house seemingly tailor-made for playing hide-and-seek. In this European-style villa built in the 1930s, there are three sets of staircases going from the main floor to the second. And there are two staircases to the finished basement. The house also has a pool, and the rolling lawn has got to be great for sledding. The best part: The house has a goldfish pond. 
 Listing agent: Donna Spinoso-Gelb, Signature Premier Properties, 631-383-9920 
 Indoor-outdoor nook 
 Location: East Meadow <a href="http://long-island-homes.newsday.com/eng/sales/detail/188-l-2112640-2561414/370-maple-ave-east-meadow-ny-11554" target="_blank">(more info)</a> 
 Listing price: $569,000 
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 Bedrooms and bathrooms: 5 bedrooms, 4 bathrooms 
 Kid-friendly details: On rainy days, the children can play inside the great room -- but when the rainbows appear, they can open the great room's sliding doors and run outside directly into the yard to jump into the pool, which has a waterfall. The house also features a finished basement and five bedrooms, so everyone gets plenty of space. 
 Listing agent: Stacy Zigman, Re/Max Central Properties, 516-827-7653 
 A family neighborhood 
 Location: Southold <a href="http://www.mlsli.com/homes-for-sale/NY/Southold/11971/315-Maple-Ln-85314543" target="_blank">(more info)</a> 
 Listing price: $785,000 
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 Bedrooms and bathrooms: 4 bedrooms, 4 bathrooms 
 Kid-friendly details: Kids can walk to town, a local beach or playground. Inside, there's a large kitchen, four full bathrooms and a large backyard with an in-ground pool. 
 Listing agent: Marie Beninati or Lee Beninati, Beninati Associates, 631-765-5333

LSMAIN27.WEB

Long Island family-friendly homes require specific features for kids

Kid Friendly -crop

When Jack and Joan Armitage of Levittown got the startling call that they'd reached the top of a senior housing waiting list much sooner than expected -- and learned that their move would coincide with hip replacement surgery for Joan -- their intended future abruptly became their present. 
 Fortunately, Jack, 83, and Joan, 80, had made some smart choices well before Joan needed surgery. So the hectic transition from their 10-room house to a three-room apartment marked the beginning of this couple's happily ever after in a home suited for their changing needs: a sunny first-floor end unit with a roomy parking spot for easy walker maneuvering, in an affordable senior community in East Meadow, close to family and friends. 
 House-hunting seniors hoping for a similarly bright future should follow the Armitages' example -- starting with scoping out potential new digs in advance, says Diane Landau, the East Meadow-based senior relocation specialist who helped the couple find their home and make the move. Landau owns Memories on the Move, which assists seniors and their families with the challenges associated with downsizing and relocating, or modifying, a home. 
 Landau recommends starting a search while you're still in good health, as early as age 60, and inquiring about waiting lists up to five years before a move. 
 Successful senior living will largely boil down to finding a place that offers things like transportation options, opportunities to socialize and a selection of homes that are set up for, or can be adapted to, declining physical abilities. 
 A number of Long Island communities fit the bill -- including some neighborhoods previously highlighted in the Best Places to Live series, such as Huntington, Great Neck and Stony Brook -- with perks for all ages such as walkability, cultural arts and parks, as well as senior-specific housing, clubs and services. 
 Here, we shine a light on some senior hot spots you may not have heard about, along with a sampling of what you can get for the county's median sales price (or close to it): $435,000 for Nassau and $335,000 for Suffolk as of July, according to the Multiple Listing Service of Long Island. 
 NEW HYDE PARK 
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 New Hyde Park was the birthplace of Project Independence, an aging-in-place program launched in 2005 that has grown to serve all 50,000 or so senior adults residing in the Town of North Hempstead. The program was the first of its kind to be sponsored by a local government in New York State, according to the town council. 
 Among the benefits for residents 60 and older are free weekday transportation to designated shopping centers and discounted taxi service to nonemergency medical and dental appointments. The program also connects seniors to exercise classes, social events and even handyman and yard work services. 
 Within the Town of North Hempstead, senior real estate specialist Lynne Kleinman says she especially likes the housing stock in New Hyde Park for seniors. For those who don't want the responsibility of outdoor maintenance, she recommends the apartment buildings, many of which are equipped with elevators. And those who still prefer a house will find an ample stock of Capes, which usually have one or two bedrooms and a full bathroom on the first floor -- "so, as you're aging, you don't have to navigate steps," says Kleinman, who co-owns a senior move management business with Ellen Blank. She also recommends nearby Great Neck Village for its walkability to cultural and retail centers. 
 Proximity to local hospitals such as Long Island Jewish Medical Center in New Hyde Park is also a comfort to older adults. "A lot of people ask where the nearest hospital is" when seeking a home to spend their retirement years, says Diane Landau, a founding member of the L.I. chapter of the nonprofit National Aging in Place Council, which promotes independent living for seniors who want to remain in their homes as they age. 
 $440,000 in New Hyde Park 
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 This three-bedroom, one-bathroom Cape has the master bedroom and a bathroom on the first floor. It's listed with Thomas Schrafel and Jane Schrafel of Coach Realtors. Prices for single-family homes in New Hyde Park range from $175,000 for a one-bedroom co-op to $1.199 million for a six-bedroom Colonial. 
 RIVERHEAD 
 Riverhead is a hot spot for the active 55-and-over set, says Kathleen Mazza, owner of the senior relocation service Island Transitions in East Setauket. "Over the last 15 or 20 years, they have put a bunch of planned communities north of Route 58," she says, citing condo developments such as Saddle Lakes, Stoneleigh Woods, Willow Ponds and Mill Ponds. 
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 Condos with amenities such as grounds maintenance, pools, fitness facilities and social activities appeal to seniors like Bob Kiernan, 64. Kiernan moved into the Stoneleigh Woods 55-and-over community late last year because he says he liked the layout, the price and the amenities. "It's nice that I don't have to mow the lawn anymore, take care of my pool anymore," says Kiernan. He adds that the community has social activities such as card and trivia games, movie nights and happy hours. 
 Active retirees like Kiernan can indulge a golf passion at a number of golf courses in Riverhead, including 18-hole courses at Cherry Creek Golf Links, the Woods at Cherry Creek or the Suffolk County- owned and -operated Indian Island Country Club, or a nine-hole course at Sandy Pond Par 3. "I play a lot of golf," says Kiernan, a former high schoolteacher and golf coach. "It's nice that Cherry Creek is only six or seven minutes away. I play in a senior league." 
 Riverhead also has a walkable downtown offering shopping, dining and cultural arts such as the Suffolk Theatre, which has live performances, and East End Arts, which has art exhibits, poetry readings and more. And grandparents know it'll be easy to persuade the grandkids to visit with attractions nearby such as the Long Island Aquarium and Exhibition Center in Riverhead and Splish Splash Water Park in Calverton. The Hilton Garden Inn and the Hyatt Place Hotel mean even those who choose to retire in smaller homes can have extended family come to town. 
 $329,000 in Riverhead 
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 This two-bedroom, two-bathroom condo in the Sunken Pond adult community is listed with Joan Waggoner of Bagshaw Real Estate LLC. Home prices in Riverhead range from $15,900 for a two-bedroom mobile home to $2.9 million for a four-bedroom Craftsman Cape on a 7.4-acre estate with a water view. 
 WEST BABYLON 
 Seniors seeking seniors for neighbors will find plenty in West Babylon, which has the highest over-60 population in Suffolk County -- more than 8,300 residents in that age group, according to the latest available U.S. census data. "Socialization is a big issue for seniors," says Barbara Feldman, owner of Manhasset-based A Nu Start, a senior relocation service. It's important to have peers nearby, because even healthy, active older adults can be at risk for becoming isolated. "They lose a spouse, or friends have died. . . . That's a big issue," she says. 
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 Social seniors can get together at the Friends of West Babylon Library events, such as the annual Spring Senior Citizens Party and monthly Atlantic City bus excursions. The library also periodically offers programs dealing with important topics such as senior scams, medication management, fall prevention and safe driving. There's also a gentle exercise class to help arthritis sufferers improve their flexibility, coordination, balance and strength. 
 West Babylon is in the Town of Babylon, which has four senior centers in nearby Amityville, Copiague, Wyandanch and North Babylon. All four offer recreational, cultural and health programs for adults over age 60. Resident seniors can get help with household repairs and free transportation to senior centers. Activities include arts and crafts, computer instruction, dance classes, parties and trips. 
 Senior-friendly housing options in West Babylon include 55-and-over communities run by Fairfield Properties and Conifer Living, and Sunrise of West Babylon, an assisted-living facility. Seniors can find similar-aged pals in nearby Fairfield Harbor at Babylon Village, a 55-and-over community. 
 $339,000 in West Babylon 
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 This three-bedroom, one-bath split-level is on a 75-by-95-foot lot. It's listed with Joseph Ferraro of Assist 2 Sell US Home &amp; Realty. Home prices in West Babylon range from $90,000 for a co-op to $849,000 for a three-bedroom Postmodern. 
 EAST MEADOW 
 Seniors on a budget can still enjoy the carefree co-op lifestyle in East Meadow. The Town of Hempstead created a Golden Age Zoning district to provide affordable housing to income-qualified seniors. This includes The Knolls -- that's where the Armitages live -- and The Meadows, both in East Meadow. "They're all really nice . . . and you have your own little co-op in a little development of seniors for the average Joe," says Diane Landau, an East Meadow-based senior relocation specialist. Both have swimming pools and other recreational facilities. The town also offers a selection of affordable rental apartments for residents over age 62. 
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 The area boasts plenty of enrichment opportunities for seniors. "East Meadow is a great place to retire because it has Eisenhower Park, which has golf, senior exercise programs, swimming programs, and there are concerts in the evening," says Landau. One of the Town of Hempstead's 16 senior centers is in East Meadow, offering social, recreational and educational activities. Nearby Hofstra University has a stimulating 55-and-over program called PEIR: Personal Enrichment in Retirement. Scheduled programs, monthly meetings and informal lunches give seniors the opportunity to engage in intellectual discussions and teach and learn from one another. 
 Landau recommends nearby North Bellmore for those who still prefer a house, but could do without the stairs. "North Bellmore has a whole group of ranches that are really nice," she says. "Everything is on one level." 
 And you don't have far to travel for social and educational enrichment, she adds. "The continuing education is really good in Merrick- 
 Bellmore for seniors and for everybody. They have a lot of day programs as well as night" -- a plus for some older adults who prefer to be home before dark. This fall's schedule includes seniors-only dance and fitness classes such as Country Western Line Dance and Heart Healthy Aerobics for Fifty Plus, as well as a variety of courses in arts and crafts, computers, language arts and defensive driving. 
 $435,000 in East Meadow 
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 This two-bedroom, two-bathroom condo has a balcony. It's in The Seasons, a 55-and-over community with indoor and outdoor pools. The home is listed with Joseph DeVito of Keller Williams Realty Landmark. Prices for single-family homes in East Meadow range from $264,900 for a four-bedroom expanded Cape on a 60- by-99-foot lot to $949,000 for a four-bedroom Colonial on a 61-by-290-foot lot. 
 PLAINVIEW 
 There's an impressive array of community activities, services and resources for senior citizens in Plainview. At the Mid-Island Y JCC, a community center, you'll find seniors-only social events, lectures, group discussions and educational activities. Some are for ages 60 or 65 and up, while others are reserved for those who've reached or passed the milestone of their 75th birthday. 
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 There are two over-60 service programs here: Plainview-Old Bethpage Cares (POB Cares) offers free services and resources to senior residents of Plainview and Old Bethpage who live east of the Seaford-Oyster Bay Expressway, while Project Plainview Assisting Community Elders (Project PACE) does the same for those who reside in Plainview west of the expressway. Both offer free assistance with health care, such as in-home assistance with a registered nurse and transportation to medical appointments. They also provide help with food shopping and minor home repairs, as well as social activities. 
 The library is another big draw for retired folks. "Bethpage-Plainview Library is excellent, with many, many activities," says senior relocation specialist Diane Landau. The library's programs include senior enrichment and fitness classes, a mature driving course and bus trips to Atlantic City and other destinations. It's also the meeting place of the 50+ Ski Club -- a sports activities club for seniors. 
 Plainview is in the Town of Oyster Bay, which gives residents access to all the recreational programs provided by the town's Senior Citizens Services, including luncheons, day trips, crafts, exercise classes, card games and other activities at various locations throughout the town. Plainview-Old Bethpage Community Park offers an aquatic program for seniors as part of the town's Senior Summer Program. 
 For senior-friendly, low-maintenance living, check out Plainview's condo communities, such as the Villas or The Seasons at Plainview. For high-end, resort-style living, try The Hamlet on Olde Oyster Bay. For affordable senior housing elsewhere in the town, Town of Oyster Bay residents can apply for Golden Age Housing communities in Bethpage, Woodbury or Massapequa. 
 $429,000 in Plainview 
 <img align="right" src="http://cdn.newsday.com/polopoly_fs/1.6103521.1379611882!/httpImage/image.JPG_gen/derivatives/landscape_228/image.JPG" style="padding: 1px 1px 1px 1px"> 
 This three-bedroom, two-bathroom condo is in The Hamlet on Olde Oyster Bay, an all-ages homeowners' association. It's listed with Fern Altman of Shawn Elliott Luxury Homes &amp; Estates. Home prices in Plainview range from $259,000 for a two-bedroom condo to $1.399 million for a five-bedroom contemporary.

LSMAIN20.WEB

Long Island's best places to live for seniors

Seniors Zumba -crop /

From a 15-foot boa constrictor holed up in the dark to a house ready to collapse in a stiff breeze to electrical wiring that bursts into flames at the flip of a switch, home inspectors have seen it all. And those horror stories could be yours if you don't have a home inspected before you buy. 
 "Getting a home inspection is the best money a buyer spends, even if they end up not buying the home," says Dominic Cardone, a regional vice president for the National Association of Realtors. 
 While some buyers might balk because of the extra cost, spending a few hundred dollars to get a home inspected could save you thousands in the long run. 
 Marvin Goldstein, former president of the American Society of Home Inspectors, or ASHI, recalls one new home he inspected in the Philadelphia area that had passed a city inspection, even though it had no toilets and was plagued by "incomplete, improperly done work. There was $75,000 worth of work needed" -- not exactly pocket change for a buyer. 
 In most home-purchase offers, it's customary to include a clause making the transaction contingent on the findings of a home inspection. 
 If the inspection reveals real problems, what happens next depends on the contract. "It's done differently in different contracts across the country," Cardone says. The seller may cover repair costs; the buyer and seller might split costs; the seller might credit the buyer money to make repairs; or the seller might reduce the price. If they can't come to terms, the buyer can walk away from the agreement. 
 As home inspectors will point out, what you don't know can hurt you. 
 Blaine Illingworth, an ASHI director in the Philadelphia area, has had more than his share of animal encounters while doing inspections. In the crawl space of one Pennsylvania house, "I came face to face with a 15-foot boa constrictor. It's amazing how fast you can crawl backward." 
 The snake had gotten loose a couple of years earlier, and the owner thought it was dead, not residing under his house. 
 Another time, Illingworth says he saved a family from carbon monoxide poisoning. The sellers thought they had the flu. Instead, he found a raccoon sleeping in the chimney, blocking the flue. 
 Claude McGavic, executive director at the National Association of Home Inspectors, or NAHI, recalls inspecting a 1920s Florida home. "From outward appearances, it looked fine." A closer look showed termites had devoured the wooden framing, leaving it held together by the plaster on the walls. "I could have pushed it over," McGavic says. 
 Illingworth recalls inspecting a home owned by an electrical engineer, who proudly announced that he had wired the house himself. Unfortunately, he had used the wrong type of wiring. "Everything was brown or black and crispy. I can't understand for the life of me why it hadn't burned down yet." 
 Water heaters also can be dangerous things, as Bill Jacques, ASHI's president, found when inspecting a home in the Charleston, S.C., area. Water heaters have a pressure-relief valve attached to a drain line channeled outside. If it overheats, the valve opens, draining water so the tank doesn't explode. In this case, the homeowner had substituted a turkey baster for a drain line. "It would have blown the turkey baster away," spewing hot water, Jacques says. 
 A typical inspection takes several hours and looks at things such as the heating and air-conditioning systems, plumbing, electrical system, and roof. Specialty inspectors can check for mold, radon gas and energy efficiency, McGavic says. 
 If repairs are needed, hire a licensed contractor. That way, there's a paper trail that the work has been done. And Jacques recommends having the home reinspected to make sure the repairs were done properly. 
 In many parts of the country, a home inspection will cost a few hundred dollars, and the price is influenced by the age of the home, its square footage, and how far the inspector needs to travel, Jacques says. 
<hr> 
 Mortgage rates leaped for the second consecutive week during the week of June 6, 2013 on hints that the Federal Reserve may soon taper its quantitative easing program, which includes massive purchases of mortgage-backed securities. 
 The 30-year fixed-rate mortgage rose 11 basis points to 4.1 percent. A basis point is one-hundredth of 1 percentage point. 
 The 15-year fixed-rate mortgage rose 7 basis points to 3.28 percent. The average rate for 30-year jumbo mortgages, or generally for those of more than $417,000, rose 7 basis points to 4.27 percent. 
 The 5/1 adjustable-rate mortgage rose 12 basis points to 2.93 percent. With a 5/1 ARM, the rate is fixed for five years and adjusted annually thereafter.&nbsp;

reINSPECT11

Home inspection cost should never deter prospective buyers

Home Inspector -crop

Doctors shouldn't treat themselves, and there's that old adage that any lawyer who represents himself has a fool for a client. But when it comes to selling their own homes, real estate agents hold differing opinions on the best course of action. 
 Unlike doctors or lawyers, there aren't many restrictions on real estate agents who choose to handle the listings to sell their own homes. Under the code of ethics of the National Association of Realtors, agents who self-list have a duty to disclose their ownership in the properties. In some cases, it's possible that an agent's company or insurance policy may prohibit the agent from handling the listing. 
 But for the most part, agents are free to list their own homes, and most do, says Anton Stetner, founder of the Real Estate Solutions Group at Keller Williams Realty in Marysville, Wash. 
 "Aside from saving on the commission, I think it makes sense for an agent to handle it on their own because they're the expert," Stetner says. "For me, the main reasons why an agent wouldn't handle their own listing is [that] they just don't have the time, or it's a short sale." 
 In the short-sale scenario, a common feature of the current housing market, agents hire colleagues to help insure that the purchase is an arm's length transaction -- something banks insist on when the price won't cover the mortgage. 
 Even under normal conditions, it may be the case that agents who list their own homes reap a greater reward. Authors <a href="/topics//Steven_D._Levitt">Steven D. Levitt</a> and <a href="/topics//Stephen_J._Dubner">Stephen J. Dubner</a> wrote in their book "Freakonomics" that real estate agents who list their own homes earn about 3 percent more on the sale prices. 
 <a href="/topics//Steven_D._Levitt">Levitt</a> and <a href="/topics//Stephen_J._Dubner">Dubner</a> found that, on average, self-listed homes stay on the market an extra 10 days. That prompted the authors to hypothesize that agents might be a little more aggressive about their own homes because a 3 percent fluctuation makes a fair difference on the total sale price, but not that much of a difference when it comes to the commission. But not all agents see the same upside. 
 From the buyer's perspective, a seller who happens to be an agent can be a red flag. 
 "You can't say all the time, but 99 percent of the time, when you look at the [Multiple Listing Service] and see an agent as the owner, you know the property is going to be overpriced," says Burt Bakman, a real estate agent in Studio City, Calif. 
 Setting a good list price is one of the most important things a real estate agent can do, but to do it well, the agent needs to be objective, says Janice Leis, associate broker with Prudential Florida WCI Realty in <a href="/topics//Boca_Raton">Boca Raton</a>, Fla. 
 "If it's your home, it's almost impossible to be objective," Leis says. "Even if you say you're going to list at just below what the last comparable home sold for, you're going to be fighting against all of the emotional memories -- good and bad -- that are a part of having owned that home." 
 The listing price is just part of the equation. Leis, like many other agents, prefers her sellers to be scarce when she shows the home to a potential buyer. 
 "People tend to get chatty when they're showing their own home, even if they are an experienced agent who knows better," she says. "They volunteer things they shouldn't, like the fact that they need to sell fast, and that will cost them money." 
 While price may be the key thing on a seller's mind when listing a home, Leis says the experience of working with a colleague to list her property taught her a valuable lesson about some of the other services agents provide. 
 "It's more than just the listing and negotiating the price," Leis says. "A seller has to manage a lot of documents, figure out their disclosures, and figure out moving -- it's stressful. 
 &nbsp;"Having someone else to keep you on track and help you maintain perspective is really important," she says, "because there are a million little details that can overwhelm anyone." 
 Leis says that when she sold her home, she got multiple offers from buyers who wanted her out sooner than she had planned. 
 "I got very panicky because I thought, 'If I don't find a new place. I'll be homeless,'" she says. "Of course, I wasn't going to be homeless but accelerating the timetable really put the pressure on. Having an agent kept the transaction on track while I adjusted my plans."

reAGENTS01

Real estate agents list their own homes in pursuit of a higher price

reagent01 crop4.2.13

Today's improving economic environment has created a rare opportunity for small investors to make their moves. And, financial experts say, with some hard work and meticulous preparation, they actually might turn a profit. 
 "This is a phenomenal time to invest in real estate for buyers in the right circumstances," says Gregory C. Frank, a vice president of Business Development with Guaranteed Rate, an independent home loan company headquartered in Chicago. He adds an important caveat. "There is no get-rich-quick scheme. You've got to buy smart." 
 Walter Malony, a spokesman for the National Association of Realtors, says he also believes this is a favorable time for the little guy. He, too, issued a warning for those entering the field. 
 "Someone doing this really needs to do their homework," he says. 
 One factor is that the weak economy has placed a larger supply of homes on the market than normal. Short sales -- that is, homes being sold at less than what's owed on the mortgage -- and foreclosures have enlarged the inventory. The ranks also have been swelled by houses damaged by superstorm Sandy, although buying such an investment can be tricky since some may be damaged beyond reasonable -- or profitable -- repair. It's unclear, says Frank, how the state buyback program and rising flood insurance costs will affect this niche. 
 But there are bargains to be had. Some, for example, come from people whose extended <a href="/topics//Unemployment">unemployment</a> has forced them to sell at a lower than optimum price. Also, there are more neighborhoods around with undervalued homes. This happens when someone is forced to sell quickly at a low price, reducing the appraised value of surrounding properties. 
 Historically low interest rates are another plus, a situation that could change if the economy continues to improve. Then, there is the pent-up demand for homes from young people living with their parents who now are looking for their own residences. 
 But it's still risky, with no guarantees, says Melissa J. Gagliano, president of the <a href="/topics//Long_Island,_NY">Long Island</a> Real Estate Investment Association, a trade group that brings together beginners and professionals for networking and educational meetings on the second Tuesday of every month at the Hilton <a href="/topics//Long_Island,_NY">Long Island</a>/Huntington in <a href="/topics//Melville,_NY">Melville</a>. "The first 11 rehabs I did I didn't make any money," she says. "But I kept doing it until I got it right." 
 Here is some advice for those who want to break into the field. 
<h3> FINDING THE MONEY</h3> 
 The first thing to do here, financial experts say, is to get your own financial house in order. This includes making a budget and paying off debt. 
 Cash is the optimum choice for buying a property because that avoids interest payments, the delays of applying for bank money, plus it helps you get the jump on the best deals and close them quickly, Gagliano says. The money could come from savings or funds borrowed from family or friends. Other sources include a home equity line of credit or a self-directed IRA, which allows the owner to make investment decisions using retirement plan money. 
 That said, a variety of conventional loans are available from lending institutions, ranging from fixed- and adjustable-rate mortgages to jumbo loans. Banks have become more flexible these days, Frank says. Some, for instance, are dropping requirements that borrowers pay for private mortgage insurance by covering the cost in a slightly higher rate, thereby lowering the total monthly payment, he says. Previously shunned construction loans, in which a bank provides interim funds to build or renovate a home and later turn that into a permanent mortgage loan also are back on the table. 
<h3> GET READY TO JUMP</h3> 
 For an initial move, investor experts say, assemble a real estate team -- a banker (or someone to provide financial support and advice), a real estate attorney, plus an agent or broker who can help spot bargains and sell them after they are fixed up. 
 Also, get preapproved for a loan so you can move fast if a deal is found. 
<h3> WHAT TO LOOK FOR</h3> 
 When searching for an investment house, check with a local agent to see what kinds of residences are selling in the area where you are looking. Then, find one that needs work but is structurally sound. This could mean things like needing an updated kitchen or new carpeting and wallpaper -- enough effort to discourage buyers but not more than your budget can handle. 
 Choose a home on a quiet block in a good school district with an appealing number of bedrooms and bathrooms. Frank says he likes residences in commuter neighborhoods close to railroad stations. 
 Also, he adds, see if the home's taxes have ever been grieved, since a lower tax rate would put more money in your pocket either by making the home more appealing for resale or, if you are going to lease it, netting you a larger rental income. Professional property tax grievance companies do this for a fee that is based on savings in the first year, Frank says. 
<h3> AND DON'T FORGET</h3> 
 Always get a title report. An uninformed buyer can inadvertently purchase a home involved in a lawsuit, pending divorce or any number of liens, Frank says. 
 Saving a few bucks by not getting a house inspection can be another critical error, no matter what you are told about the home's condition by the seller or real estate agent. 
 Another thing newbies sometimes overlook when hoping to flip a property is carrying costs. These expenses accrue before the home is sold and include utilities, acquisition costs, mortgage payments, property taxes and selling costs. Make sure you've budgeted enough, Molony says. 
 "The conventional wisdom is to have a six-month cash reserve," he says. 
<h3> <a href="/topics//Bay_Shore,_NY">Bay Shore</a> $149,000</h3> 
 <img src="http://cdn.newsday.com/polopoly_fs/1.4727392.1362068560!/httpImage/image.JPG_gen/derivatives/display_300/image.JPG" align="right" style="padding: 1px 1px 1px 1px"> 
 LISTING HISTORY. On the market for a month with one price change 
 TAXES. $8,416 
 WHAT'S FOR SALE. This is a one-story ranch with three bedrooms and one bath. It has a master bedroom, eat-in kitchen, dining room, finished attic and a detached garage. 
 THE HISTORY. The home's first floor was flooded by Sandy, but its exterior remained undamaged. Its pre-storm appraisal was $285,000. 
 LISTING AGENT. Diane Betz and Rick Ramsay, Eric G. Ramsay Jr. Associates, 631-665-1500. 
<h3> <a href="/topics//Freeport,_NY">Freeport</a> $369,000</h3> 
 <img src="http://cdn.newsday.com/polopoly_fs/1.4727403.1362068643!/httpImage/image.JPG_gen/derivatives/feature_416/image.JPG" align="right" style="padding: 1px 1px 1px 1px"> 
 &nbsp; 
 LISTING HISTORY. On the market for one month with one price change 
 TAXES. $13,843 
 WHAT'S FOR SALE. This is a canal-side ranch with four bedrooms and three baths. It has a kitchen, formal dining room, large den in the basement and attached garage. In the back is a patio and upper deck that overlooks a saltwater pool. The home comes with deep canal docking rights. 
 THE HISTORY. This is a short sale with a recent $85,000 price reduction. Water damage from Sandy has been fixed, including the addition of a new gas burner and hot-water tank. 
 LISTING AGENT. Tillie Russo, Sailing Home Realty Corp., 516-639-8892 
<h3> <a href="/topics//Massapequa,_NY">Massapequa</a> $799,000</h3> 
 <img src="http://cdn.newsday.com/polopoly_fs/1.4727412.1362068745!/httpImage/image.JPG_gen/derivatives/display_300/image.JPG" align="right" style="padding: 1px 1px 1px 1px"> 
 LISTING HISTORY. On the market for three months with no price changes 
 TAXES. $21,216 
 WHAT'S FOR SALE. This is a Colonial on a third of an acre with views and access to South <a href="/topics//Oyster_Bay,_NY">Oyster Bay</a>. It has four bedrooms and baths, a great room containing a living room and dining room, large den and eat-in kitchen. It also has a finished attic office and an attached two-car garage. Every room in the house has a water view. 
 THE HISTORY. This is a bayfront home with access to a canal. The first floor was destroyed by superstorm Sandy. Owner and Realtor Ellen Kulik says this was the first time the home received water damage in the 21 years her family lived there. It could be renovated and resold, but also could be turned into a rental property either long term or as a summer rental, she says. "We never went away in the summer because we felt like we were permanently on vacation here," she says. 
 LISTING AGENT. Ellen Kulik, <a href="/topics//Douglas_Elliman">Douglas Elliman</a> Real Estate, 516-795-3456

LSMAIN01.WEB

Time to invest? A Post-Sandy caution

lsmain22 -- cropped

Slimming down the waistline may be the most popular resolution, but the advent of a new year is also the time many Americans resolve to slim down credit debt. Prospective home buyers have even more incentive to whip their credit into shape -- leaving a bad credit score to fester can be disastrous later, when the time comes to purchase a home. 
 Long after the Great Recession of 2008-2009, an abominable credit score will still follow home buyers around as retribution for past credit sins, compounded by stricter mortgage loan standards from government-sponsored mortgage giants <a href="/topics//Fannie_Mae">Fannie Mae</a> and <a href="/topics//Freddie_Mac">Freddie Mac</a>. 
 "It's all changed -- it used to be that you have a heartbeat and you get a loan. Now they want your firstborn," says Robert Reid, president of <a href="/topics//Garden_City,_NY">Garden City</a> Mortgage. 
 Though it may be harder than ever to get a loan, studies show an improvement in overall reduction of debt, a determining factor in loan qualification. 
 The total outstanding household debt in <a href="/topics//New_York_(state)">New York</a> State is down to $1.37 trillion since its peak in 2008, according to a quarterly report by the <a href="/topics//Federal_Reserve_Bank_of_New_York">Federal Reserve Bank of New York</a>. Meanwhile, newly approved mortgages rose to $521 billion in the third quarter of 2012. As another indication of a statewide improvement in creditworthiness, balances on credit cards have fallen 22.4 percent since 2008. 
 But despite the improvement, banks are still cautious about making mortgage loans. "Most people are not qualifying by leaps and bounds. Most are qualifying by the skin of their teeth," says Gregory Frank, regional manager at Guaranteed Rate, a mortgage brokerage firm based in Garden City. 
 So what does it take to become the ideal loan candidate? <a href="/topics//Long_Island,_NY">Long Island</a> mortgage brokers and housing professionals give some advice to polish up your credit before plunging into the housing market: 
<h4> 1. DON'T BUY A CAR</h4> 
 Before starting the house hunting process, avoid taking on any additional debt, which includes credit cards, home equity lines of credit and mortgages, and car loans or leases. "When you buy or lease a car, you're going to add a monthly liability. When we calculate your debt-to-income ratio it's going to count against you," says Frank. 
 A higher debt-to-income ratio, or DTI, means a lower <a href="/topics//FICO">FICO score</a>, the way in which banks and lenders measure the credit risk of doing business with you. Save large purchases like cars and furniture until after you get approved for a mortgage. Even if your bank account can afford the payments on that new <a href="/topics//Dodge_Charger">Dodge Charger</a>, your DTI might not. 
<h4> 2. DON'T CLOSE A CREDIT CARD</h4> 
 Closing unused cards is one of the most common pieces of credit advice, but it does not improve your credit score at all. In fact, closing cards can wreak havoc on your credit score by increasing your revolving utilization percentage, or the percentage of your available credit card balance that you use. 
 "When you close out a credit card, you are terminating your ability to manage credit," says Frank. "If you close out all your cards and leave one with a large balance on it, <a href="/topics//FICO">FICO</a> is going to think you're maxing out your credit cards. Leave them open, even after you are mortgage-approved. 
<h4> 3. DON'T CHECK YOUR CREDIT FREQUENTLY</h4> 
 Any time you apply for a loan or credit card, the creditor or bank will submit an inquiry to retrieve your credit score, which will count against you on your credit history by being recorded in your credit report. "It looks like you're getting rejected over and over again. It shows you to be a bit irresponsible," said Chris Gonzalez, executive vice president of Academy Mortgage in <a href="/topics//Bellmore,_NY">Bellmore</a>. 
 If you just want to find out what your credit report is, visit a local, HUD-certified housing agency (such as the Long Island Housing Partnership or the Community Development Corporation of Long Island) for a free credit counseling session. 
 Your credit counselor will do a "soft pull," which is an inquiry that doesn't adversely affect your credit score. To get a mortgage, visit a mortgage professional, who can access a vast network of banks and lenders but "hard pull" your credit only once. If you go to all the banks yourself, you will have to run your credit over again for every bank you try. 
<h4> 4. DON'T TRANSFER ALL DEBT TO ONE CARD</h4> 
 If you get a great interest rate on a card, you might think it's a good idea to transfer all your credit card debt to that card. Though that interest rate is tempting, don't put a high balance on that card while zeroing out your other accounts. "You now have a new account fully maxed out, and others that are empty. That's not somebody we want to lend to, that's a risk," says Frank. 
<h4> 5. DON'T MAX OUT CARDS</h4> 
 You should only use under 30 percent of your credit limit on each card. So if you have a $1,000 limit, you should never put more than $300 on it at a time. If your cards are constantly maxed out, "when [creditors] look at you they see a greater chance of default than someone who is using their credit wisely," says Eileen Anderson, senior vice president of the Community Development Corp., a <a href="/topics//Centereach,_NY">Centereach</a>-based nonprofit housing agency that provides free credit and financial wellness counseling, among other housing assistance programs, to Long Islanders in need. 
 Aside from paying down your balance, increasing your credit limit will also lower your "revolving utilization" or credit use percentage. Call your creditor and ask to increase your credit limits. 
<h4> 6. DON'T LET YOUR CARD GO UNUSED</h4> 
 Maxing out your cards is a cardinal sin, but having unused credit cards doesn't help you either. "It is not a matter of having credit cards, it's a matter of using credit wisely," says Anderson. "Just having them does nothing to build credit." 
 A zero balance also risks losing that line of credit altogether. Since your creditor is losing money every month you don't use the card, the company might close the unused credit account for you (and remember -- you don't want to close out any cards). To keep the account active, make occasional purchases with your credit card. 
<h4> 7. DON'T MAKE PAYMENTS LATE</h4> 
 "One of the worst things you can do is be late on a mortgage if you already have one," says <a href="/topics//Robert_Reid">Reid</a>. Whether your debts include credit cards, a current mortgage or car payments, "the most important thing is to pay on time, even if it's just the minimum payment," says Carol Yopp, program manager of the Long Island Housing Partnership, a nonprofit, HUD-certified housing agency based in Hauppauge. 
<h3> MYTHS THAT HURT A CREDIT SCORE</h3> 
 Here are five credit score misconceptions. 
 STUDENT LOAN DEBT IS GOOD DEBT 
 The Federal Reserve Bank of New York reports that student loan debt increased by $42 billion in the third quarter of 2012, and has continued to increase while other kinds of loans have decreased. Many New Yorkers heeded the conventional wisdom that called them to weather the recession and subsequently poor job market by going back to or staying in school. 
 Although education&nbsp; may have added to your marketability, it has also increased your debt-to-income ratio, potentially diminishing your desirability in the housing market. Student loan debt won't affect your credit score if it's still in the deferment period, but lenders will still factor your future student loan payments into their calculations of your DTI when determining your current mortgage readiness. 
 If your student loan debt pushes your DTI over 40 percent, they will consider you a risk to lend to. And if your student loans are already out of deferment, your monthly payments will factor into your payment history and affect your credit score. 
 ONLY ONE SPOUSE NEEDS GOOD CREDIT 
 If you have good credit but your spouse has bad credit, the banks will go by the worse of the two when determining your creditworthiness as a couple. If your spouse's credit score is bad, your only option is to leave his or her name out of the mortgage (you can still include it on the title). 
 IGNORE IT AND IT WILL GO AWAY 
 When you avoid paying, whether it's for a cellphone contract, retail credit account, hospital visit, or unpaid taxes, a judgment will be filed against you, and can stay on your credit for five to seven years. 
 "People will risk buying a house because they refuse to pay a credit card at Macy's," said Robert Reid, president of Garden City Mortgage. "It's going to follow you around until you settle with them," he adds. Be sure to keep the receipts for judgments you have settled. 
 Sometimes even though a judgment was settled years ago, it might not have been updated and could still be affecting your credit. 
 MY SCORE IS GOOD ENOUGH 
 While your current score may qualify you for a loan, raising or lowering your credit score by just 20 points can make a difference in your mortgage interest rate. Credit scores south of 660 are in the danger zone, whereas credit scores over 740 are considered ideal. 
 I ALONE AM RESPONSIBLE FOR BAD CREDIT SCORE 
 Visit a mortgage broker to check your records against your credit report to ensure you aren't being held accountable for someone else's mistakes. 
 "Sometimes when creditors enter information into the system, they get one digit off in the Social Security number, and that's someone else's Social Security number," said Reid. 
 While many clerical errors can be disputed by providing proof, you might be stuck with other marks against your credit that aren't your fault. "If you're divorced, you better check your credit, because odds are when you were married you took out a lot of credit jointly and you don't know what that person has done since your divorce," said Reid. Your children's credit habits might affect your credit as well if you've ever cosigned for them.

LSMAIN08.WEB

Credit score polishing before house hunting

lsmain08.WEB crp2.7.13

Whether you are a homeowner seeking to refinance, a homebuyer or a renter, expect higher housing costs this winter. 
 Certain mortgage fees are rising, especially for those with small down payments. Luckily for borrowers, low mortgage rates are still around, but they only have one way to go this year, and that's up. 
 This isn't the time to wait for a better deal. It's time to act. 
 It's also time to pay close attention to a number of new mortgage regulations that are being released this year. They will help determine who gets a mortgage in the near future. 
 Expect to see five housing trends this year. 
 Homebuyers with low down payments will pay higher mortgage insurance premiums when they get a <a href="/topics//Federal_Housing_Administration">Federal Housing Administration</a> mortgage. 
 The FHA says it will increase the annual insurance premium that is added to a borrower's monthly mortgage payments by 0.1 percent. It may sound like a small increase, but this hike is on top of numerous insurance premium raises the FHA has implemented since 2008 as part of its ongoing efforts to shore up the FHA's reserves. Industry observers say there's great potential for much higher increases this year. 
 FHA borrowers are charged about 1.25 percent of the total balance of their loans per year. Before the financial crisis of 2008, the charge was about 0.5 percent. 
 Because mortgage rates are extremely low, the added cost might not affect borrowers significantly now. That could change once rates rise, says Janneke Ratcliffe, executive director for the Center for Community Capital at the <a href="/topics//University_of_North_Carolina_at_Chapel_Hill">University of North Carolina at Chapel Hill</a>. 
 Refinancers and homebuyers who have not taken advantage of the historically low rates shouldn't waste time, mortgage professionals say. 
 In many parts of the country, rents will continue to climb as the number of available rental apartments shrinks and demand rises. 
 U.S. apartment vacancies dropped to an 11-year low of 4.5 percent last year's fourth quarter, according to real estate research firm Reis. Foreclosures, still-tight mortgage lending requirements and a weak jobs market are contributing to the surge in demand and rental prices. 
 Now that the election is over and the "fiscal cliff" ordeal has at least partially been put to bed, <a href="/topics//Barack_Obama">President Barack Obama</a>'s administration will likely renew its push to help underwater homeowners. That could create refinancing opportunities for homeowners who have not been helped by earlier refinancing programs. 
 "I do think the administration will return to some of the issues they have previously worked on, in particular refinancing, which I would expect to be highest on their agenda," says Julia Gordon, the <a href="/topics//Center_for_American_Progress">Center for American Progress</a>' director of housing finance and policy. 
 A series of new mortgage and servicing rules is being unveiled early this year. These rules will reshape the mortgage industry and could affect consumers, for better or worse, once they go into effect. 
 The main rule released so far requires lenders to verify that a borrower has the ability to repay the loan when getting a mortgage. The rule was designed to protect borrowers from the types of risky loans that led to the housing crash. 
 Mortgage rates jumped the week of Jan. 31, 2013 as investors moved out of the mortgage and <a href="/topics//United_States_Department_of_the_Treasury">U.S. Treasury</a> bond markets to invest in stocks. The rates usually jump when investors exit bonds to invest in the stock market. 
 The 30-year fixed-rate mortgage rose 11 basis points to 3.77 percent. A basis point is one-hundredth of 1 percentage point. 
 The 15-year fixed-rate mortgage rose 9 basis points to 3.03 percent. The average rate for 30-year jumbo mortgages, or generally for those of more than $417,000, rose 9 basis points to 4.17 percent. 
 The 5/1 adjustable-rate mortgage rose 7 basis points to 2.78 percent. With a 5/1 ARM, the rate is fixed for five years and adjusted annually thereafter. 
 Reach Polyana da Costa at editors@bankrate.com.&nbsp;

reRATES03

Mortgage rates and rents expected to rise in 2013

Mortgages

A house sold in a foreclosure auction last year proved too macabre for one buyer. 
 Bill Thoman decided not to bid on a house in a subdivision north of Vero Beach, Fla., when he learned tenant Albert Cuillo III died inside and his body wasn't found for several weeks. 
 State laws vary on whether a seller is required to disclose deaths that happen within a dwelling -- including murders and suicides -- nor bodies that decomposed at the site. 
 But Thoman thinks sellers should disclose that a corpse decayed in a home for a prolonged period, even if the law doesn't compel them to do so, because it could pose a health hazard. Bacteria and toxin-borne flies could contaminate the home's central-air ducts, which might need to be replaced, he said, adding he had no idea how well the house was cleaned. 
 "It's absolutely outrageous," Thoman said. "It's beyond unethical." 
 Thoman said he learned of the corpse in the house by talking to neighbors. 
 Court records show Mark G. Astor of <a href="/topics//Boca_Raton">Boca Raton</a> owned the rental property, which fell into foreclosure and was auctioned in September. 
 With a regular sale, a buyer could detect a bad smell while walking through the place, industry experts said. In contrast, foreclosure auctions done on the courthouse steps are like blind dates. 
 Neither buyers nor home inspectors are allowed to set foot in the house before the sale, increasing the chance a buyer will get a home where no one properly cleaned up after a decayed corpse -- which is unusual -- or where flagrant flaws such as a leaky roof exist, said Barry Segal, a Vero Beach attorney who handles real estate cases. 
 A buyer pays the clerk of court in cash and takes the home and the accompanying defects -- the drawback to receiving what's often a hefty markdown in price, he said. 
 "That's about as buyer-beware as it gets," Segal said. "There's a lot of risk. You're completely on your own." 
 Deborah Lyon, who was managing the property, discovered Cuillo's body April 18, according to a sheriff's office incident report. 
 Lyon checked on Cuillo, 55, when she was unable to reach him by phone. She saw his car in the driveway, opened the front door and smelled a foul odor, the report says. Believing he was dead, she called 911. 
 Paramedics went inside and found Cuillo lying in the bathtub in an advanced state of decomposition, the report states. Authorities later found a <a href="/topics//Cellular_Phones">cellphone</a> in the house that indicated Cuillo hadn't made a call in more than a month. 
 An autopsy revealed Cuillo died closer to the time he'd last used the phone than when his body was found, said Dr. Linda O'Neil, associate medical examiner. 
 There was no sign of trauma or foul play, the report states. Because of the body's physical deterioration, technicians were unable to determine a cause of death -- though they suspect heavy drinking contributed. 
 The house was sold in September to Bay Living Inc., a Lutz real estate company that buys and resells homes in foreclosure. 
 Bay Living owner Ed Thornburg said he didn't know a dead person was ever in the house. From what he'd heard, no cleaning was done before the sale, he said. 
 A real estate agent told him the bathroom had a nasty stench and the bathtub contained a reddish residue, and she figured an animal was to blame, Thornburg said. 
 After learning from the Press Journal that Cuillo died there, he hired <a href="/topics//Illinois">Illinois</a>-based Aftermath Inc. to do a post-death cleanup of the house. Thornburg said he sold the house on Dec. 7 to a buyer who wasn't bothered about a previous occupant dying on the premises. 
 "I've had hundreds of houses over the years, and I've had maybe five houses where someone dies in it," Thornburg said. 
 WHAT CAN A BUYER DO? 
 If you're buying a home sight-unseen or don't have access to inspect it, here are some things you can do: 
 -- Ask neighbors if they know of anything that could have contaminated the dwelling, such as a violent crime, a death or a meth lab. 
 -- Check with police to see if they responded to any incidents at this address in the past year. 
 -- Do a home inspection after the sale to ferret out potential unseen problems such as faulty plumbing and contamination. 
 -- Hire a professional cleaning company. If the crew finds evidence someone died there, hire a company that specializes in post-mortem cleanups.

reFORECLOSURE02

Foreclosure sale tips: Avoid buying with unwanted surprises

Foreclosure auction

The bidding war is back. While not every local real estate market is experiencing bidding wars, some homebuyers find themselves competing for houses because there aren't many for sale in their neighborhood. For example, in Phoenix, it would take just 2.3 months to sell all the homes currently on the market, says Susan Paul, owner of Better Homes and Gardens Real Estate Move Time Realty in Scottsdale, Ariz. The result? Many homes have 10 to 15 offers the day they go on the market, she says. 
 To compete in a bidding war, buyers need to prepare financially for the home purchase. They have to familiarize themselves with property values in their target neighborhoods. And they must know what they want. 
 While offering the most money might seem the best way to win a bidding war, sellers don't always choose the highest offer. Instead, sellers often prefer offers that are most likely to go through and that meet their conditions. 
 "Too many buyers talk to a lender and start looking at homes at the same time," says Eldad Moraru, a Realtor with Long &amp; Foster Real Estate Inc. in Bethesda, Md. "You need to have everything (financial) done before you begin to look." Then you are more likely to win a bidding war. 
 He suggests selecting a lender and loan product, completing everything the lender requires and having a preapproval letter in hand -- all before submitting an offer. 
 "You need to make sure your lender is ready to issue an approval letter specific to the property at the drop of a dime," Moraru says. 
 Paul recommends keeping a file folder constantly updated with your most recent pay stubs, all pages (even blank pages) of recent bank statements and any other documentation the lender may need to make a quick loan approval. Then you are ready to make an offer. 
 A strong preapproval is essential, especially if you are competing against buyers with a cash offer, says Alan T. Aoyama, vice president of <a href="/topics//Century_21">Century 21</a> M&amp;M Associates in <a href="/topics//Cupertino">Cupertino</a>, Calif. Any hint that you might have trouble qualifying for financing could eliminate you from competition. 
 "An all-cash buyer can even waive the appraisal," Aoyama says. "If you're a noncash buyer, you need to have a copy of your proof of funds with your offer along with a strong preapproval. At a minimum, you should offer a down payment of 20 percent if you know you'll be competing against other buyers. You need to show you have the funds to close and the ability to make up the difference if the appraisal comes in too low." 
 To compete against other buyers in a potential bidding war, make sure you see a potential home the day it goes on the market, so you can move quickly, Paul says. 
 Moraru says while price is important, sellers want to know the buyer can finance the property and meet any other conditions. If you don't know the date when the sellers want to settle, you can write "will settle on seller's schedule" into the offer. 
 Aoyama suggests offering 30 days of free rent if the sellers want to stay in their home after settlement. 
 Most Realtors don't recommend buying a home without an inspection, but making your offer contingent on an inspection can weaken your position if other buyers are waiving an inspection contingency. 
 "If you're serious about a particular house, you can have a home inspection before you make an offer, and then make a noncontingent offer if you're satisfied with the report," Moraru says. "You'll need to move fast, though, and have a home inspector ready almost the day the home goes on the market." 
 Paul says you can bring a home inspector along when you first look at the home and say the inspector is a friend, just to get an inspector's feel for the condition of the home without an in-depth checkup. 
 "If the inspector says the house looks OK, you can feel better about waiving the home inspection contingency," Paul says. 
<hr> 
 The 30-year fixed-rate mortgage rose 9 basis points to 3.67 percent for the week of Jan. 10, 2013. A basis point is one-hundredth of 1 percentage point. 
 The 15-year fixed-rate mortgage rose 4 basis points to 2.92 percent. The average rate for 30-year jumbo mortgages, or generally for those of more than $417,000, rose 2 basis points to 4.1 percent. 
 The 5/1 adjustable-rate mortgage rose 1 basis point to 2.77 percent. With a 5/1 ARM, the rate is fixed for five years and adjusted annually thereafter. 
 Contact Donna Fuscaldo at editors@bankrate.com.

reBIDS21

Buying a home: How to win a bidding war

Home Sale -- cropped

House-hunting can be so much fun and so overwhelming at the same time. If you are out looking for your next castle, it is wise to create a wish list of what you personally desire for your home, including the interiors. While viewing different houses, take a camera and a notepad to document how each compares to your list. In today's real-estate market, the features below are definitely on many homebuyers' wish lists. 
 What's in: Modern kitchens 
 The kitchen is the heart of every home and, therefore, has become the most important space for homebuyers. Increasingly, buyers want a modern open kitchen with an informal eat-in area, for both meals and homework. Center islands are desired, for their added counter space and storage. Large sinks under a window always are a hit. 
 Appliances are one of the most expensive items in a home, so make sure to look at the condition, age (including energy efficiency) and overall appearance. A lot of buyers are inclined to show status by having high-end appliances such as Wolf and Sub-Zero. As for countertops, natural stone such as granite is still popular, but quartz counters such as Silestone and Caesarstone are becoming more in demand. 
 What's out: Long, narrow galley kitchens and separate dining rooms 
 What's in: Open floor plans, numerous windows and high ceilings 
 In newer homes, buyers desire open spaces, such as the kitchen and family room having open access to each another. Superior natural lighting is on most homebuyers' wish lists, so large and abundant windows achieve this. High ceilings create spaciousness and give good lighting and decorating options. 
 What's out: Low ceilings covered in popcorn or knockdown textures 
 What's in: Durable hardwood flooring and tile 
 More and more, buyers are opting for homes with hardwood flooring and/or tile due to the resilience and maintenance. These floors also can give style and beauty to any room. 
 In older homes, original hardwood flooring may be hidden under old carpet. It's important to see what is underneath, and see if the hardwood can be refinished. Broadloom carpet may still be considered for bedrooms. 
 What's out: Different flooring in every room, dirty carpet 
 What's in: Lavish bathrooms 
 Buyers typically want at least two full bathrooms, preferably with windows for natural lighting and ventilation. They also desire walk-in showers instead of shower/tub combinations. However, at least one bathtub should be in the home. 
 For the master bathroom, most buyers wish for two sinks, a freestanding tub, a shower with a myriad of water features, and a separate water closet for the toilet. 
 What's out: Whirlpool tubs with expansive tub decks 
 What's in: Plentiful bedrooms 
 On average, most buyers want a minimum of three bedrooms, even if they are single or a couple without children. Bedrooms can serve multiple purposes, such as a home office, exercise room or man cave. Some buyers want all the bedrooms on the same level, especially if they have small children. 
 Most like the master bedroom to have some type of separation from the children's rooms and have their own in-suite bathroom and closet area. Boomers are seeking a full bedroom/bath on the first floor for aging parents, or for their own room later in life. 
 What's out: The master bedroom sharing a bathroom with another bedroom 
 What's in: Media-filled family/gathering room 
 The cocooning trend continues, as spending time with family and friends is paramount to well-being. Large flat-screen televisions and a comfortable seating area to accommodate many people are preferred by most buyers. Families now spend a lot of time on laptops and tablets while hanging out in this area. 
 What's out: Formal living rooms only used during the holidays 
 What's in: Outdoor living spaces 
 Buyers want an area to enjoy the great outdoors. This includes pool decks, outdoor kitchens, TV viewing areas and even fireplaces. Also in newer homes, there is a trend to integrate the interiors with the exterior and views, with large sliding glass doors, partitions and windows. 
 What's out: Heavy window treatments that don't permit natural light and views 
 What's in: Storage, storage, storage 
 Older homes provide less of this, whereas newer homes typically have more. Most buyers want large walk-in closets in the master bedroom. In luxury homes, custom built-in closet systems are a must. Savvy buyers also want ample closets for sporting equipment, holiday decorations, seasonal clothes and crafts supplies. If closets aren't prevalent, buyers may consider using a spare bedroom for additional storage. 
 What's out: Tiny closets with white wire shelving that yellows and becomes sticky 
 Michelle Jennings Wiebe is president and principal designer of Studio M in Tampa, Fla. Reach her at designer@interiorsbystudiom.com.&nbsp;

reTRENDS16

Tips for home sellers to appeal to home buyers

Kitchen -- cropped

Here are 10 mortgage tips to help you with your mortgage decisions in 2013. 
 1. Stop procrastinating and refinance. If you haven't refinanced recently, you're probably paying a higher interest rate on your mortgage than you should. Take advantage of today's record-low mortgage rates while they last. 
 2. Buyers, get moving. With rates near the bottom and home prices on the rise, it's still a perfect time to buy a house. Get a mortgage preapproval before you start shopping. 
 3. Compare FHA vs. conventional loans. Many homebuyers opt for a <a href="/topics//Federal_Housing_Administration">Federal Housing Administration</a> mortgage because it allows them to buy a home with as little as 3.5 percent down. But the already costly FHA fees that are added to your loan will increase again in 2013. Consider saving a little extra for a down payment on a conventional loan. 
 4. Ensure that your credit is golden. Credit standards remain tight. As new mortgage rules are unveiled in 2013, the standards are not expected to loosen. If you plan to get a mortgage anytime soon, you must treat your credit as one of your most valuable assets. You'll need a credit score of at least 720 to get the best rate. Borrowers with a credit score of 680 or more can still get a good deal. 
 Review your credit report before you apply for a mortgage. Sometimes, paying part of your credit card balances can boost your credit score quickly. 
 5. Want to pay off your mortgage earlier? If you are one of those homeowners who dream about being mortgage-free, the low-rate environment may be a good opportunity to refinance your 30-year mortgage into a 15- or 20-year loan. Make sure you can afford the higher payments on the shorter loan and that you have money saved for emergencies. 
 6. Underwater refinancers: Don't take "no" for an answer. If you owe more than your home is worth and have tried and failed to refinance, give it another shot in 2013. The Home Affordable Refinance Program, or HARP 2.0, was revamped to allow homeowners to refinance regardless of how deeply underwater they are. 
 Lenders are much more open to HARP 2.0 refinances these days than they were a few months ago. If one lender says you don't qualify for a HARP refi, don't take "no" for an answer. Try to find a lender willing to do it. 
 7. Give your lender a chance. If you have trouble paying your mortgage, don't ignore your mortgage servicer. There are new programs available for borrowers who struggle to keep up with mortgage payments, including forbearance for those with FHA mortgages. Lenders have been more willing to work out delinquent loans through loan modifications and even short sales for homeowners who can't afford to stay in their homes. 
 8. Shop for a low rate and good service. Even with rates hovering near record lows, you should still shop for the best mortgage deal. Get quotes from at least three lenders and compare not just the interest rate but also closing costs and the quality of their service. Favor lenders that have a reputation of closing on time. 
 9. Approved for a mortgage? Leave your credit alone. Most lenders order a second credit report for the borrower a few days before closing. Don't open new accounts or charge up your credit cards at the furniture store while you wait for closing day. 
 10. It's not over until the loan closes. You've submitted your mortgage application and locked a rate. The race has just begun. Submit any documents requested by your loan officer or mortgage broker within 24 hours, if possible. Lenders will remain overwhelmed with the large volume of refinance applications at least through the first few months of 2013. Follow up with your lender or mortgage broker at least once a week to ensure the process goes smoothly. 
<hr> 
 The 30-year fixed-rate mortgage fell 1 basis point to 3.58 percent. A basis point is one-hundredth of 1 percentage point. 
 The 15-year fixed-rate mortgage rose 1 basis point to 2.88 percent. The average rate for 30-year jumbo mortgages, or generally for those of more than $417,000, rose 1 basis point to 4.08 percent. 
 The 5/1 adjustable-rate mortgage fell 1 basis point to 2.76 percent. With a 5/1 ARM, the rate is fixed for five years and adjusted annually thereafter.

reMORTGAGES05

Mortgage advice for 2013

Mortgages Foreclosures -- cropped

The scenes rolling in from flood-ravaged <a href="/topics//New_Jersey">New Jersey</a> and <a href="/topics//New_York_(state)">New York</a> are devastating, and not just to the people whose homes were destroyed. 
 Also damaged are the "retire with a water view" dreams of others who had aspired to vacation property and may have been thinking about beach real estate -- until they saw what a storm like Sandy can do. 
 Some people will take their insurance settlements and walk away from properties that they will sell "as is" to undeterred buyers who think this is the time to pick up a beach bargain. 
 Here are some line items to consider before you ride in with your checkbook and start making offers. 
 Prices may rise, not fall. Stan Humphries, the chief economist for <a href="/topics//Zillow">Zillow</a>, the real estate research site, has observed that home prices typically rise about six months after an area is hit hard by hurricanes or other major natural events. 
 Housing stock is depleted and new-construction costs are high. So it's unlikely that you will pick up a big bargain, though some buyers are negotiating hard now on homes they were planning to buy before the storm hit. 
 Your flood insurance is going to get more expensive. Legislation that reauthorized the National Flood Insurance Program will require FEMA to eliminate subsidies and raise premiums on some properties. Premiums could go up by as much as 20 percent a year in some areas. Older "non-primary" vacation homes will take a bigger hit. 
 Your mortgage could cost more, too. Typically, a second-home mortgage doesn't cost very much more than one for a primary home as long as you can qualify for it on the basis of your income. If you need rental income to qualify for the mortgage, that's a different story. 
 Expect to need a higher down payment -- at least 20 percent -- and to pay an interest rate that is roughly 0.5 percentage point higher, according to quotes from MortgageMarvel.com. 
 You're part of a club. Of course, many vacation places are simply single-family homes that owners take care of themselves. 
 Everyone in a particular condo association pays when repairs are made to <a href="/topics//Common_(musician)">common</a> areas like roofs, sidewalks and golf courses. When a building sustains significant damage, its condo association may eventually have to make a special assessment on all owners.

Business

BZYFIN18

Your Finance: Want to buy a beach house?

liSand_Aerial-Kuntz

If buying a home feels like falling for Prince (or Princess) Charming, the home inspection can feel like meeting the ugly stepsisters. You love the house, you can imagine living happily ever after there, but now it's time to deal with the moldy tiles and squeaky hinges -- the unpleasant in-laws that come with this fairy tale marriage. 
 "Most homeowners don't know what to look for," says home inspector Hank Jaworowski as he opens the circuit box and shines his flashlight on the wires on a recent tour of a <a href="/topics//Long_Island,_NY">Long Island</a> property. Jaworowski co-owns Precision Home Inspection of America with brother Lee. The <a href="/topics//Long_Island,_NY">Long Island</a>-based company services <a href="/topics//Nassau_County,_NY">Nassau</a> and <a href="/topics//Suffolk_County,_NY">Suffolk</a> counties and New York City. 
 The Jaworowskis and other home inspectors offer the following advice on what potential problems to look for when purchasing a home. 
 PROBLEM AREAS 
 Decks 
 Deck rails should be spaced no more than 4 inches apart to prevent children from getting their heads stuck. The deck should be fastened to the structure of the house through leg bolts. "Nails will eventually give way," says Lee Jaworowski. Review the house's Certificates of Occupancy to be sure the deck is included. Some owners add a deck without thinking to get permission from the town first. "If it doesn't have a permit, you might not be able to buy the house," says Tommy Adamescu, owner of <a href="/topics//Farmingdale,_NY">Farmingdale</a>-based HomeSpector Inc. And if the deck isn't built according to code, "it can be a major safety hazard and could potentially collapse," he adds. 
 Skylights 
 "There are two types of skylights: those that leak, and those that will leak," says Hank Jaworowski. Skylights should have a step-flashing unit and an ice membrane to prevent moisture from entering. If you see fog on the skylight, it hasn't been properly installed with these features. 
 Engineered floors 
 Engineered flooring is a less expensive way to achieve the look of hardwood flooring, but it can become a problem if installed in the wrong area of the house, inspectors say. Engineered wood installed in a high-moisture area, such as the kitchen or bathroom, can buckle and make the floor uneven. Linoleum flooring and ceramic tiles are still the best bet for bathrooms and kitchens, Hank Jaworowski says. 
 Latticework 
 Garden latticework should be properly fastened and single-paneled with the spaces in the lattice design unobstructed; otherwise, "it becomes a sail," catching the wind rather than letting it blow through, says Lee Jaworowski. 
 Granite countertops 
 Granite countertops are beautiful and durable, but there are different qualities of granite and even man-made materials that look like granite. Ask what grade of granite the countertop is and if there is a warranty in case you later find a crack in it. Also, try lifting up the countertop to make sure it is secured. 
 Flat roofs 
 It's hard to avoid water damage with a flat roof, which is inherently "prone to leaks," says Adamescu. In the winter, when snow falls, it stays there. Hank Jaworowski notes that it is also "very susceptible to being gouged" by tree limbs. 
 Outlets 
 Outlets in moisture-prone areas such as kitchens, bathrooms, crawl spaces, unfinished basements, outdoors and in the garage should be installed with a GFCI, or a ground fault circuit interrupter, to protect against electrocution. "Very frequently we find that pools are not protected with ground fault devices," says Thomas D'Agostino Jr., president of <a href="/topics//Long_Island,_NY">Long Island</a> Home Inspection Associates in <a href="/topics//Ronkonkoma,_NY">Ronkonkoma</a>. Use a GFCI outlet tester to check outlets in such areas. 
 Stucco 
 "Cement stucco is always an issue," says Hank Jaworowski. It is difficult to repair it yourself or find someone who can repair it for you. Water can easily get into cracks in stucco and separate part of it from the exterior wall, "like a fish scale," says Lee Jaworowski. 
 Central AC units 
 Rather than judging with your eyes, make sure air-conditioners are well insulated by feeling around the edges of the unit for air flow. The outdoor unit should be clean and level, with the insulation around the Freon line sealed. 
 Tiling 
 Check all tiling near water faucets and fixtures in the bathroom and kitchen to ensure it is sealed. "In nine out of 10 houses, it's not," says Hank Jaworowski. 
 Leaks 
 "Water is a homeowner's worst enemy," says Lee Jaworowski. Be mindful of the quality of the wall and ceiling surfaces. If you notice patches of discoloration or newer paint, there probably has been water damage. "These are indications of chronic water entry from poor roof drainage systems, poorly installed windows and poorly installed roofing," says D'Agostino. 
<h4> WHAT TO DO</h4> 
 1. CHOOSE YOUR INSPECTOR 
 Choose an inspector with several years of experience. Make sure he or she is part of the American Society of Home Inspectors and is an ACI (or ASHI-certified inspector), says Tommy Adamescu of HomeSpector Inc. Also comparable: a certified master inspector or membership in the International Association of Certified Home Inspectors. Some of these associations have searchable directories. 
 2. ROLL UP YOUR SLEEVES 
 When you hire an inspector, attend the inspection and don't leave the inspector's side. The inspector will provide a running commentary of valuable insight on the place you may soon call yours. 
 3. BE THOROUGH 
 The inspector should turn on all appliances to make sure they work and all faucets to check for leaks. Run the shower for at least 10 minutes; if sediment builds up in the tub, the shower is rarely used. Give the house a full checkup. Two of the most expensive and important parts of the house -- the roof and the foundation -- are best viewed from the attic and the basement. 
 4. LOCATION, LOCATION, LOCATION 
 When you're done inspecting the inside of the house, inspect what's outside, too. Al Triolo of 1-800 Engineer, based in <a href="/topics//Commack,_NY">Commack</a>, advises against homes near noisy main roads, high-tension electrical wires and sumps. There are more than 2,100 neighborhood sumps, or recharge basins, on <a href="/topics//Long_Island,_NY">Long Island</a> to collect storm runoff. "Problems can occur if water remains in the sumps for several weeks," says Triolo, explaining that such conditions can turn a backyard into a mosquito playground. 
 5. STEER CLEAR 
 There is no doubt that older houses come with more charm, but they also can come with risk for serious illness. "Any house built in the 1920s, '30s or '40s that has steam heat will have asbestos," says Hank Jaworowski, unless the homeowner has invested in its removal. Asbestos harbors harmful carcinogens and, over time, could break off in tiny fibers that float in the air, enter your lungs and never leave. If a house has asbestos, you can either "encapsulate" it (cover pipes to prevent asbestos from flaking), or remove it, and either can cost tens of thousands of dollars. Though home inspectors by law cannot advise you against purchasing a house, he says if he had to pick a deal-breaker, "asbestos would be it." 
<h4> SERVICES OFFERED BY MOST HOME INSPECTORS</h4> 
 Full inspection: $300-$1,500 (usually includes termite inspection) 
 4-Point Inspection (just looking at heat, electric, structure and roof): $200 
 Final walk-through inspection: $175-$250 
 Home energy inspection: $125 
 Radon inspection: $50-$75 
 Lead inspection: $25 per item tested 
 Wind certification: $225-$350 
 Air quality inspection: $175-$300 
 Termite inspection: $125-$225

LSMAIN17.WEB

What you need to know: Home inspections

0M8GGXYC.JPG

The good-faith estimate is the most important document you'll receive when applying for a mortgage. 
 It summarizes all of the key terms, from interest rates to closing costs, and lenders must provide one within three days of receiving your application. 
 The federal government currently requires lenders to use a three-page standardized good-faith form that's much easier to use than those that banks and mortgage companies created. 
 You may have heard that the <a href="/topics//Consumer_Financial_Protection_Bureau">Consumer Financial Protection Bureau</a> has proposed two new know-before-you-owe forms that could replace the good-faith form, making it even easier to evaluate the costs and risks of a new mortgage. 
 But the standardized good-faith estimate is what borrowers must depend on for the foreseeable future. 
 If it includes terms that are different from what you expected, if the fees are surprisingly high or if you can't locate the information you need, take those issues to your bank or broker. 
 This is the point to get things right and avoid any nasty -- and expensive -- surprises. 
 To make sure you know what you're getting into, find the answers to these eight critical questions that a good-faith estimate should answer. 
 1. How much am I borrowing? 
 Find the section called "Summary of your loan" on the first page of the form. The very first box is titled "Your initial loan amount is." 
 It should be what you expected. If it's more than the purchase price of your home (or the outstanding balance on your current mortgage in a refinancing), the lender has probably rolled some of your closing costs into the amount you're borrowing. 
 That's OK if you don't have enough cash to pay for all of your fees. But you need to know exactly what charges are being added to your balance. 
 2. What's my interest rate? 
 You'll find this in the next box, which says, "Your initial interest rate is." 
 This should be the rate your lender has discussed with you. 
 3. What's my monthly payment? 
 Look at the next box down. 
 This should be the amount you've been promised. It covers principal and interest payments as well as the monthly premium for mortgage insurance if you're putting less than 20 percent down and are required to carry that coverage. 
 It does not include property taxes and homeowners insurance if you're required to make payments to an escrow account. 
 Is this a fixed-rate or adjustable-rate loan? 
 An astonishing number of home buyers who took out adjustable-rate mortgages in the early 2000s thought they were getting a fixed rate. They were shocked when their payments began to rise -- often beyond what they could afford. 
 If the box called "Can your interest rate rise?" is checked "No," then you have a fixed-rate loan. 
 If it's checked "Yes," then you have an adjustable-rate mortgage. It will tell you the maximum rate you could pay and when the first change could occur. 
 Is an escrow account required? 
 Some lenders collect your property taxes and homeowners insurance premiums in advance and then make those payments on your behalf. 
 If the good-faith estimate box that says "Yes" is checked in the section of the form called escrow account information, you'll have those costs added to your monthly payment, and you should find an estimate here of how much that will be. 
 If the "Yes" box is checked and there's no estimate of how much you'll have to put into your escrow account each month, ask your lender. 
 What's the cost of taking out this mortgage? 
 Lenders charge origination fees for processing your mortgage. 
 Look for them at the box that says Our origination charge at the top of the second page of the standardized good-faith estimate 
 These fees typically run between 0.5 percent and 2 percent ($1,000 to $4,000 on a $200,000 loan). The best deals charge a fixed fee of $1,000 or less. 
 Am I being charged points? 
 Discount points are interest you prepay at closing in exchange for a lower rate. That's why paying points is sometimes called "buying down the rate." 
 One discount point (1 percent of the loan amount) typically decreases the interest rate by 0.25 percent on a 30-year mortgage. 
 If your lender never mentioned points when quoting your rate, there shouldn't be any points on the good-faith estimate. 
 Right below the origination fee is a box that says, "Your credit or charge (points) for the specific interest rate chosen." 
 If you aren't paying points, the first box will be checked. 
 If you are being charged points, the third box will be checked and the amount you're being charged will be filled in. 
 How much am I paying for an appraisal? 
 You'll find the answer on the second page, in the box that says, "Required services that we select." 
 This is important because you'll have to pay for the appraisal before it's performed -- and before you know whether you'll be approved for the loan. 
 Although new regulations intended to ensure a realistic value is placed on your home have made appraisals more costly, it still shouldn't cost more than $300 to $600.

re-gfe

8 questions the good-faith estimate should answer

re-good-faith estimate cropped8.9.12

Is the real estate market a good investment for retirement? 
 Let's start with the numbers. After experiencing a massive bubble from 2000-'06 (no, it's not normal for prices to double over the course of seven years), real estate cratered. Prices dropped almost 35 percent from peak levels, and in some areas, like Florida and Las Vegas, the damage was far worse. 
 Now, a full six years from the peak, recent housing data indicates that a bottoming process is occurring across the country. Existing home sales in April rose 3.4 percent from the previous month to the highest level in almost two years and 10 percent above year-ago levels. Adding to the case that the market is bottoming, inventory is down 20.6 percent from a year ago. In Econ 101, reduced inventory means less downward pressure on prices. 
 Similar results were seen in new home sales, which rose 3.3 percent from the previous month, almost 10 percent from year-ago levels and 25 percent from the lows. Still, there's still a long way to go before we see a "normal" housing market. The total level of sales is historically weak and 2012 will probably be the third worst year on record after 2011 and 2010. However, historically low mortgage rates are helping the market by making the cost of ownership more affordable, assuming that the buyer can qualify. 
 Sensing this opportunity, many are wondering whether a jump into the rental market can boost retirement savings and income. The answer is yes, with a few important caveats. Buyers must have realistic expectations, starting with a long-term time horizon and recognition that the days of "flipping" a house to score a big profit are gone. In fact, in the early going, many properties may just break even. The goal is for the owner to be mortgage-free and to collect a steady stream of income. 
 Additionally, securing a mortgage for rental property has changed dramatically since the bubble years. "No money down" loans are nonexistent; today, lenders generally require a deposit of 30 percent. Even with that chunk of equity, mortgage rates for rental properties are higher than for owner-occupied residences. 
 One way to defray some of the cost of owning income-producing properties is to use their favorable tax treatment. The <a href="/topics/Internal_Revenue_Service">Internal Revenue Service</a> allows you to claim depreciation on your property over 27.5 years, which is a way to spread the cost of an asset over a period of time. Here's how it works: You can offset a portion of your rental income by the cost basis of your rental property (what you paid for the property plus improvements, but not the land) divided by 27.5. While this is just one way to defray taxable income, note that depreciation is a way to defer taxation, not escape it. 
 The IRS imposes <a href="/topics/Income_Taxes">taxes</a> on depreciation when you sell the property, which is known as "recapture." You can defer recapture by using proceeds from the property to purchase a new one via a 1031 exchange but you must follow strict rules to comply. Additionally, if you own the property until death, your heirs will not be subject to recapture. 
 If the ability to create a steady stream of income with favorable tax treatment seems too good to be true, it is. Being a landlord requires hard work. No amount of screening will prevent you from encountering a horrible renter or a midnight call about some problem. If you don't want to be involved at that level, you'll have to hire a management company, which will obviously eat into your cash flow. 
 Finally, remember that real estate is an illiquid asset. Be sure to have access to sufficient liquid assets before you become a landlord. 
 Jill Schlesinger, CFP, is the Editor-at-Large for www.CBSMoneyWatch.com. She covers the economy, markets, investing or anything else with a dollar sign on her podcast and blog, Jill on Money, as well as on television and radio. She welcomes comments and questions at askjill@moneywatch.com.

re-retirement

Tips on buying real estate for retirement income

For rent sign  

You're shopping for a home, and you've checked out the neighborhood, the schools and had the house inspected. You might be ready to make an offer. 
 But what do you know about the sellers? 
 Understanding the sellers' situation, and why they've put their house or condominium on the market, strengthens your negotiating position and makes it easier to close the deal on your terms. 
 Anything that makes the seller just want to get out of <a href="/topics/Dodge">Dodge</a> -- a job transfer, divorce, death or move to assisted living -- gives you an advantage. 
 Foreclosures and short sales are signs of financial distress and another factor working in your favor. 
 To find out what kind of a deal the seller may be open to, start by asking the obvious, says Alex Goldstein, an agent at Realty One Group in Scottsdale, Ariz. 
 The most obvious, and most helpful, question is, "Why are they moving?" 
 "It's amazing how much info you can get just asking that question," says Goldstein. 
 The No.1 one thing you want to determine is whether they have any sort of time pressure or deadline hanging over their heads. 
 When you discover they're moving to California and they've already put an earnest money down on a house, figure there's more flexibility in the price. 
 "We can get more sophisticated, but that's the bread and butter," says Goldstein. “I think people underutilize the obvious like Googling the seller. Is there something that's changing the seller's life?" 
 One of the most <a href="/topics/Common_%28musician%29">common</a> things you’ll discover is that the couple that owns a home is going through a divorce. 
 "A divorce doesn't necessitate a speedy sale, but it can motivate a speedy sale,” Goldstein says. “That's something to know." 
 Don't just ask questions of one party. Ask the co-listing agent, and the owners themselves if they're home for a showing. You'll get different answers. 
 Just watch your questioning style. If you make an inquisition of it, they'll clam up. Just ask basic, friendly questions and let them talk. Don't interrupt. 
 How flexible the sellers might be on price isn’t the only thing you're trying to discover. Anything you can do to make your offer more attractive helps your cause. 
 For example, some sellers want a fast sale, but others would like more time to move. 
 Tien and David <a href="/topics/Lau_%28musician%29">Lau</a> knew there was intense competition for the home they wanted in <a href="/topics/San_Mateo">San Mateo</a>, Calif. 
 The <a href="/topics/Real_Estate_%28musician%29">real estate</a> agents they were working with found the sellers' weak point -- their kids loved their school and wanted to finish out the school year. 
 The Laus then wrote the sellers a personal letter appealing to them as another family with kids looking for a home (they were expecting their second child). 
 "We ended up working in a very family-friendly free rent back package that would allow just that,” says Tien <a href="/topics/Lau_%28musician%29">Lau</a>. “None of the other bidders were in a position to do this.” 
 The resourcefulness of the Laus' and their agents helped them beat out five other offers for the home -- and they weren't the high bidder. 
 Or perhaps you learn that the sellers are downsizing or moving to Hawaii and don't want to deal with moving or selling many of their furnishings. 
 You might offer to buy some of their furniture as part of the deal or agree to dispose of whatever they leave behind, relieving them of that burden. 
 "If you're talking to a seller and they say, 'I have all this junk and I have to have a garage sale,' say, 'Don't even worry about it, I'll take care of it.' That's music to their ears," says Goldstein. 
 The home's history of prior offers and the time it's been on the market is also interesting. Perhaps three offers have been accepted and then fallen through -- that seller is exasperated. 
 "That allows you to position your offer with credibility and seriousness as more important than the price," Goldstein says. 
 Even if the other offers were higher, they weren't real, it was fantasyland. Convince the seller you are making a real offer and are ready to buy. 
 You might think a larger earnest money would convince a seller you're serious. It's not that big a draw, however, because it’s so easy for buyers to back out of a deal and demand their earnest money be returned based on something they don’t like in the home inspection. 
 Some buyers demonstrate how dead serious they are by offering nonrefundable earnest money. 
 Just last week, Goldstein's buyer offered full price on a house, only to be outbid by a buyer with cash and a nonrefundable earnest money deposit. 
 "That's total desperation," he says. "It's something I would not do except in an extreme case, but it is a tool to show a seller how serious you are." 
 On the flip side, be careful how well you let the seller, his agent and even your own agent know you. Whispering to your spouse, "I want this house, no matter what!" dramatically weakens your position. 
 At the end of the day, the person who can't walk away from the table ends up with the short end of the stick. If you don't mind the possibility of walking, you may get yourself a very good deal, indeed.

re-buying

Buying a home? Know your seller

You spend a lot of cash when you buy a home. The down payment for your mortgage is only one expense. There are other outlays: appraisal, inspection, deposit, cash reserves and more. The costs add up. 
 "How much cash you'll need depends a lot on the size of your home purchase and how much you intend to finance," says Tim Ross, president and chief executive of Ross Mortgage, based in Royal Oak, Mich. 
 Here are other expenses home buyers incur -- and should save up for: 
 -- Earnest money deposit. Hopeful buyers need to be prepared with cash for a deposit to attach to their purchase offer. The amount of the deposit varies, depending on local custom, the amount of your down payment and size of your home purchase. 
 Ross says deposits can range from a flat fee of $500 to 1 percent or even up to 5 percent of the purchase price. An experienced Realtor can advise you on how much to offer. 
 -- Home inspection. "Every buyer should have a home inspection, usually within 10 to 15 days after the contract is approved," says Dyan Pithers, a sales associate with <a href="/topics/Coldwell_Banker">Coldwell Banker</a> Residential Brokerage in <a href="/topics/Tampa">Tampa</a>, Fla. Costs vary; Pithers says the home inspection can set you back $325 or more. In <a href="/topics/Bankrate_Inc">Bankrate</a>.com's annual closing costs survey, pest inspections (which are separate from home inspections) averaged $119 in 2011. 
 If you are not on county or city water systems, a well inspection can cost $400, Pithers says. 
 -- Appraisal. In <a href="/topics/Bankrate_Inc">Bankrate</a>'s annual closing costs survey, the average appraisal cost a little more than $400 in 2011. Buyers sometimes pay for the appraisal when it takes place, and sometimes the fee is included in the closing costs paid on settlement day. 
 -- Down payment. "While some low- to moderate-income borrowers can find low down payment programs and zero down payment programs, in general, most people need at least 3.5 percent of the purchase price as a down payment on (a <a href="/topics/Federal_Housing_Administration">Federal Housing Administration</a>) loan," says Michael Jablonski, executive vice president and retail production manager for BB&amp;T Home Mortgage, based in Wilson, N.C. 
 Veterans Affairs loans, available to veterans and active-duty military families, have no down payment requirements. 
 "For conventional loans, a minimum down payment of 5 percent is acceptable for borrowers with excellent credit, but they will also have to pay private mortgage insurance," Ross says. 
 Some conventional loan and jumbo loan borrowers need to pay as much as 20 percent of the purchase price as a down payment. 
 -- Mortgage origination fees and title insurance. Loan origination fees vary from lender to lender, and title insurance varies from location to location, so there's no rule of thumb that applies everywhere. 
 "Sometimes buyers can negotiate to have the sellers cover their closing costs, but it's better to negotiate the home price first and then negotiate the closing cost assistance to make sure the sellers haven't just inflated their price to cover closing costs," Jablonski says. 
 Ross says buyers should be careful to review their good faith estimate as soon as they receive it, so they have an idea of how much their mortgage origination fees and title insurance will cost. 
 -- Moving costs. "How much moving costs depends a lot on how far you are moving," Pithers says. "If you are moving nearby and have friends and family to help, it can cost almost nothing. But a long-distance move of a 2,000-square-foot home, including having the packing done for you, could cost $5,000 to $7,000." 
 Ross says the average moving cost is likely to be less than $1,000, especially if you are moving nearby. 
 -- Necessary home purchases. If you are moving from an apartment to a single-family home, you may have to buy items such as a lawn mower, a snow shovel or window treatments. 
 "You need to be careful to really weigh each item against your budget," Jablonski says. "You don't have to start with a top-of-the-line lawn mower, for example. It's a great idea to do some research, and talk to people in the area where you are buying. See what they had to purchase right away, so you can budget for it." 
 Pithers says you may need to make deposits for utilities such as the water company or electric company, especially if you are moving from another locale. 
 -- Cash reserves. "Lenders typically want you to have at least two house payments, including principal, interest, taxes and insurance, in the bank after the closing," Ross says. 
 Jablonski says it's better to have six months' mortgage payments in savings after closing.

Inspection, appraisal, fees -- homebuying costs add up

If you've bought or sold property, you've heard the term "comps." Most homebuyers and sellers know "comps" is shorthand for "comparables," but not everyone understands what comps really are, or how real estate professionals use them. 
 The terms "comps," "comparables" and "comparable sales" refer to prices paid for recently sold homes that are comparable in size, style and location. 
 "Comparable sales are a critical part of assessing the current market value of a property," says Ziad Najm of Cedar Real Estate in <a href="/topics/Orange%2C_CA">Orange</a> County, Calif. 
 To determine the current market value of a property, agents and appraisers analyze recent comparable sales in the area. But simply choosing which sales to include, or even defining the area, can be subjects of debate. 
 Take, for example, the word "recent." For Najm, that means 90 days or fewer. But according to Doug Perlson, co-founder and CEO of alternative brokerage RealDirect.com, "recent" can look back as far as six months, depending on the activity in the local market. 
 Whether a nearby property is, in fact, comparable raises more questions. "Ideally, we'd like to find at least three properties with identical characteristics," Najm says. 
 In a planned housing development or condo, finding identical homes is a possibility. But elsewhere, even houses on the same street can vary greatly. In those instances, Najm says he's looking for properties with similar square footage and the same number of bedrooms and bathrooms. Perlson is more particular about square footage. His rule of thumb: "Choose homes where the square footage is not more than 10 percent higher or lower than that of the unit being priced." 
 And as always with real estate, location matters. Proximity is a key component of comps but so is the neighborhood, and they aren't always the same thing, says Gloria Shulman, founder of Centek Capital Group of <a href="/topics/Beverly_Hills">Beverly Hills</a>, Calif. 
 "Knowledge of the neighborhood and the school district are critical for determining comps," Shulman says. So while a comp might be close in terms of distance, it might not be appropriate if the two properties straddle opposite sides of a neighborhood dividing line. 
 Real estate agents and appraisers often arrive at different comps. 
 "Real estate agents will want sales that help to close their transaction. That's their job," says Mark Linne, executive vice president of AppraisalWorld of San Jose, Calif. "Appraisers are an objective participant in the transaction and are being asked to provide an understanding for the lender of the true market value." 
 Najm says a real estate agent is much more likely to know if recent sellers were motivated to accept a lower price because of financial hardship or divorce. "On the other hand, appraisers may drive through a neighborhood to verify a comparable sale, but they are not likely to have physically walked through those properties," Najm says. 
 Regulations add to the gulf between comps generated by real estate agents and those generated by appraisers. New regulations are designed to keep lenders and mortgage brokers from influencing appraisers. But while appraiser independence is good in theory, Shulman says, appraisers often are hired to evaluate properties in places they're not familiar with. 
 For the last few years, foreclosures and short sales have shaped the national real estate market. But distressed sales present problems when picking comps. 
 "Traditionally, appraisers looked into the market and selected a sample from whatever sales had occurred in a neighborhood. That worked during a normal or stable market, (but) this market is different," Linne says, because there are so many short sales and foreclosures. 
 Should these distressed sales influence prices for all sales in an area or only for other short sales and foreclosures? Your answer depends upon whether you're buying or selling. &nbsp;

'Comps' are often in the eye of the beholder

Thinking of buying or selling a home? 
 Even when both sides agree on a price, the deal could fall apart thanks to an under-appraisal. 
 Here's the increasingly common scenario: The seller lists the house for $325,000, the buyer offers $275,000 and they settle on a $300,000 sales price. A week before closing, the appraisal comes in at $265,000, the maximum upon which the bank or mortgage company is willing to lend. 
 Who's going to make up the $35,000 shortfall? 
 "This has proven to be a fairly significant problem," says Walter Molony, senior public affairs specialist with the National Association of Realtors, in <a href="/topics/Washington%2C_D.C.">Washington, D.C.</a> 
 In the aforementioned scenario, the seller -- having already come down -- typically doesn't want to drop the price further. The buyer may not have the available cash, or may not be willing to pay more than the appraised value. 
 Consequently, the wheels often fall off the deal. 
 Short appraisals typically arise in a declining housing market because the lack of recent comparable area homes sales, or "comps," making it difficult for appraisers to determine the current market value of a property. 
 When home sales slow, good comps "age" fast. Add foreclosures and short sales to the mix and appraisals can run all over the map. 
 The Home Valuation Code of Conduct, or HVCC, that went into effect last May has compounded the problem. The HVCC prohibits <a href="/topics/Fannie_Mae">Fannie Mae</a> and <a href="/topics/Freddie_Mac">Freddie Mac</a> lenders from having direct contact with appraisers. 
 As a result, most lenders have opted to work through appraisal management companies, or AMCs, whose pool of residential appraisers includes those with limited training and/or little familiarity with the geographic area being appraised. 
 A rash of recent questionable appraisals has prompted the National Association of Realtors and others to call for a moratorium on the new code, Molony says. 
 "We were deluged by complaints from our members," he says. 
 "Our findings show that among successful homebuyers in the last year, 12 to 13 percent experienced a contract cancellation and this is the cause. Prior to this year, that figure would have been a low single-digit number." 
 Dean Moss, broker associate with Keller Williams Realty -- Lincoln Square in Chicago, has seen six instances of "severe" under-appraisals this year. While the buyer may lose the dream house and inspection and appraisal fees, the seller is often left with a much larger problem. 
 That's especially true with <a href="/topics/Federal_Housing_Administration">Federal Housing Administration</a> or Veterans Affairs deals; in such instances, a file number is assigned to the appraisal, Moss says. 
 "So, the next buyer has to look up that file number," he says. "They can't just put that appraisal in a drawer. It puts a permanent mark on the property that impairs its ability to sell." 
 That's a bitter pill to swallow, especially if your under-appraisal is unsupported by valid comps. 
 Leslie Sellers, president of the Appraisal Institute in Chicago, says the root problem lies with the way AMCs are compensated. 
 "They are paid a fee and they make their money on the spread between what they can get paid from the bank and what they can hire an appraiser for," Sellers says. "Over a period of time, the lesser and lesser quality appraisers are the ones that end up getting all the work. 
 "As a result, we have appraisers who do not have competency in how to properly verify sales in declining markets and are using improper sales [comps]. Many times they aren't doing fraudulent things; they just don't know what they don't know." 
 How can you protect yourself from short appraisals? Here are some suggestions for buyers and sellers. 
 If you're a buyer 
 -- Tell your lender to find an appraiser who comes from your county, or perhaps a neighboring county. 
 -- Request that the appraiser have a residential appraiser certification and a professional designation. Examples include the Appraisal Institute's senior residential appraiser, or SRA, or member of the Appraisal Institute, or MAI, designations. 
 -- Meet the appraiser when he or she inspects the home and share your knowledge of recent short sales and foreclosures that might skew the comps. 
 "Many appraisers are just pulling up data out of <a href="/topics/Major_League_Soccer">MLS</a> (Multiple Listing Service) or off the deed at the courthouse and not checking it out," Sellers says. "Most good appraisers will appreciate the information." 
 And yes, you can speak with your appraiser; the prohibition only applies to your lender. 
 If you're a seller 
 --·Get an appraisal before you list a home. Search for a qualified appraiser in your area on the Appraisal Institute website. 
 -- Use the appraisal to set a realistic listing price for your home. 
 -- Give a copy of your prelisting appraisal to the buyer's appraiser. "They won't be offended," Sellers says. "The more professional appraisers will understand that you're just trying to add more data and another perspective." 
 -- Question a low appraisal. There's always a chance the appraiser or a supervisor will take into account new or overlooked information. 
 Mortgage rates fell this week as investors grew concerned about the debt crises in Spain and Italy. 
 The 30-year fixed-rate mortgage fell 14 basis points to 4.11 percent. A basis point is one-hundredth of 1 percentage point. 
 The 15-year fixed-rate fell 10 basis points to 3.32 percent. The average rate for 30-year jumbo mortgages, or generally for those of more than $417,000, fell 14 basis points to 4.63. 
 The 5/1 adjustable-rate mortgage fell 12 basis points to 3.03 percent. With a 5/1 ARM, the rate is fixed for five years and adjusted annually thereafter. 
 The volume of mortgage applications decreased 2.4 percent last week, compared to one week earlier, according to the Mortgage Bankers Association.

re-appraisal

How to keep an appraisal from souring a deal

On closing day, most homebuyers are excited about the prospect of moving into their new home. One important final step must be accomplished before settlement: a walk-through. While plenty of buyers whip through each room with a glance, eager to unpack, real estate experts suggest homebuyers are better served by a slow and careful inspection. 
 "You should allow at least 30 minutes or longer for a house walk-through," says Irene Gianos, a broker with Weichert Realtors in Clinton, N.J. "You need to go through the house with a fine-tooth comb and be as detailed as a home inspector." 
 Gianos recommends doing the walk-through the day of the closing, perhaps two or three hours before the settlement, but Kristy Petrillo, owner of Re/Max Town &amp; Country in Blue Ridge, Ga., suggests scheduling the walk-through the day before settlement, if possible, to allow time to handle any issues that may arise. 
 Brandon <a href="/topics/Brandon_Green">Green</a>, principal broker with The <a href="/topics/Brandon_Green">Brandon Green</a> Team at Keller Williams <a href="/topics/Capital_Properties%2C_Inc.">Capital Properties</a> in <a href="/topics/Washington%2C_D.C.">Washington, D.C.</a>, recommends a house walk-through approximately 24 hours in advance of the settlement and no more than 48 hours ahead. 
 "If a significant weather event has occurred between the last time you saw the house and settlement day, like a windstorm, heavy rain or a heavy snowfall, you should be sure to visit the home to check on the condition just before settlement," <a href="/topics/Brandon_Green">Green</a> says. "Once you have signed your settlement papers, the seller has no obligation to fix anything anymore." 
 Green suggests including your home inspector if you have concerns about the property condition. 
 "Don't be afraid to bring your home inspector back to your walk-through," Green says. "The charge for revisit is usually 25 (percent) to 50 percent of the original fee, which could be worth it if you want to make sure everything has been repaired to your satisfaction." 
 Gianos says buyers should be ready for their walk-through with an information packet, including the seller's property condition disclosure form and the home inspector's report, to see that all repairs have been made as negotiated. 
 "If you choose not to bring in a home inspector, you should turn everything on and off such as appliances, lights, heating and air-conditioning systems," Green says. "You can pick up an electrical tester at a hardware store for $1.25 and make sure all the electrical outlets are working." 
 If your walk-through reveals an issue that has not been discovered before, or one that hasn't been resolved satisfactorily, your action should depend on how serious the problem is. 
 "First, you should look at the big picture," Petrillo says. "You are probably getting a great home that you want to buy at a great price. Are you willing to jeopardize that for a $200 item?" 
 If the problem is serious, Gianos recommends contacting your settlement attorney immediately. "Your lawyer should contact the seller's lawyer to work out an agreement before you get to the settlement table," she says. 
 Petrillo stresses the importance of working things out amicably. 
 "If something wasn't done according to agreement, you can ask the attorney to escrow some amount of money, including what is needed for the repair, from the sales proceeds with an agreement in writing to release the funds as soon as the work is finished," Petrillo says. 
 Buyers of a foreclosure, short sale or any property sold as is should also do a careful walk-through on closing day. Even these properties are sold as is at a particular time such as the inspection date or the contract ratification date, Green says. If the property has deteriorated since that time or appliances are missing, the seller should be required to make amends.

re-closing

How to do a house walk-through before closing

If the last few years have taught us anything, it's this: Never buy more house than you can afford. 
 In many instances, that might be less than you've been led to believe, particularly by people whose commissions or fees are based on how much they can talk you into spending. 
 That's nothing against salespeople -- they're only doing their job. But you wouldn't ask a car salesman how much you should spend on a car (we hope!). 
 Before you even start house hunting, make sure you decide -- with no outside pressure -- the maximum amount you will spend on a house. 
 Too many people spend every dime and take out the biggest loan they can get to buy a house, and in no time start losing sleep wondering if they can make their mortgage payments. 
 Follow these 4 smart moves, however, and you'll have little or no trouble paying for your home. 
 Smart Move 1 Spend 30% or less of your gross (pretax) income on housing costs. 
 Add together monthly income -- before taxes and other deductions -- from your job, your spouse's job and part-time or side businesses if applicable. 
 Multiply that number by 30%. The result is the maximum total amount you should spend on monthly housing costs -- including principal and interest on the mortgage, property taxes, condo or association fees and insurance. 
 For years, the U.S. government has defined an affordable home as one that costs less than 30% of your pretax monthly income. Spending less is even better. 
 Liz Weston, author of The 10 Commandments of Money, recommends keeping your housing costs down to 25% or less of your income. 
 For example, if you make $60,000 a year and have no debts, you can afford to spend about $1,500 a month on principal, interest, taxes and insurance without breaking the 30% rule. To keep housing costs down to 25% of your income, as Weston recommends, you'll have to spend $1,250 or less. 
 Nearly 37% of homeowners with a mortgage -- 19 million people -- now spend more than 30% of their income on housing. 
 That's one crowd you don't want to follow. 
 Smart Move 2 Spend no more than 36% of your income on total monthly debt payments. 
 The more non-mortgage debt you have, the less you can afford to spend on a home. 
 Multiply your income from Smart Move 1 by 36%. 
 Plan to spend no more than that result on your total debt payments -- mortgage payments, auto loans, student loans, credit card bills, child support and loans against your 401(k) plan. 
 For example, if you make $60,000 a year but you spend $300 a month on car payments, $125 on credit card bills and $200 on student loans, the 36% rule would limit your monthly housing costs to $1,175. 
 It's easy to put these rules to work. Just <a href="http://www.interest.com/mortgage/calculators/mortgage-calculator/?pid=i_nws">enter your</a><a href="http://www.interest.com/mortgage/calculators/mortgage-calculator/?pid=i_nws"> income and non-mortgage debt payments into our mortgage calculator</a>, and we'll tell you how big of a loan and monthly payment you can afford. 
 Smart Move 3 Choose wisely if you must tap retirement accounts for a down payment. 
 Take the amount you can safely borrow for a home, add however much you've saved for a down payment and that's how much you can spend on a home. 
 Ideally, the money you use for a down payment should be savings you've specifically set aside for a home. 
 But if a lender demands more up-front cash than you expected, an Individual Retirement Account (IRA) or 401(k) may be the only place you can turn for another $10,000, $20,000 or more. 
 If that's the case, tap a Roth IRA or Roth 401(k) plan first. 
 Since contributions to Roth plans are fully taxed before they're made, you can withdraw however much you've put into those accounts at any time without incurring any penalties or additional taxes. 
 If you've held a Roth IRA for at least five years, you can withdraw an additional $10,000 in earnings without paying any penalties or taxes to buy or renovate a first home. 
 The next place you should turn is a traditional IRA, which will allow you to withdraw up to $10,000 for the purchase of a first home without penalty. 
 If you and your spouse each have a traditional IRA, then you can take $10,000 or a total of $20,000 from your two accounts penalty-free. 
 But since contributions to traditional retirement accounts such as this are tax-deductible, you'll have to pay income tax on withdrawals that exceed those limits. 
 Any withdrawals above the limits are subject to income tax and a 10% penalty until you reach 59½ years old. 
 Your employer's traditional 401(k) plan is the last place you should turn for a down payment. 
 It has no special provisions for down payments, and any "hardship withdrawals" are fully taxed and incur a 10% penalty until you turn 59½. 
 The better option is to take out a loan against your 401(k) account. 
 You can usually borrow up to $50,000 or half the value of the account, whichever is less, and take up to five years to pay it back. 
 The interest you're charged, which is generally a couple of percentage points above the prime rate, goes into your retirement account and the monthly payments are deducted from your paycheck. 
 But now you're talking about a new monthly expense that will reduce the amount you can afford to borrow for a home. 
 If this must be a part of your plan, go back to Smart Move 2 and recalculate. 
 Smart Move 4 Move in with a reasonable rainy day fund. 
 When anything goes wrong for people who live paycheck to paycheck, they have nowhere to turn. 
 A job loss, emergency home repair, disaster or health problem could easily keep you from being able to pay your mortgage. Record numbers of homeowners have lost their homes under such circumstances. 
 You can increase your financial security by keeping three- to six-months' income in an easily accessible savings account or other emergency fund. 
 You should also have enough cash on hand to cover home repairs, expected and unexpected. If you have to call a plumber on the weekend, for example, count on spending at least $200. 
 Weston recommends budgeting 1% to 3% of the cost of your home to annual repairs and maintenance. 
 You also need a larger emergency fund if you've chosen homeowners insurance with a higher-than-average deductible. 
 Although higher deductibles can lower your premiums, you must be prepared to cover more out-of-pocket expenses when disaster strikes.

re-mortgage

How much can you really afford to spend on a house?

Q: How do you make people aware of an unprofessional real estate agent? I want people to be aware of this one agent who cost us a potential sale because of her unprofessional behavior. 
 A: If you’ve had an unpleasant experience with either a listing agent or a buyer’s agent, you should first contact the managing broker or owner of the firm and schedule an appointment to discuss the situation. You should calmly discuss the problem and ask the broker to resolve it for you, either by bringing in the agent so everyone can air their grievance or by speaking directly to the agent on your behalf. 
 If that doesn’t solve the problem and you have a legitimate grievance, you can file complaints with the National Association of Realtors (if the agent is a member) and local and state association of realtors. The governmental department in your state that regulates real estate agents and real estate brokers may allow you to file a complaint against the agent with that office. You can go online to the Better Business Bureau and file a complaint there as well. 
 While it may help you feel better to file a complaint, it’s unlikely that your agent will lose his or her license because of it. I suppose if the behavior was egregious, your state may take some disciplinary action. 
 But before you go down the war path with the agent, it’s worthwhile first trying to talk to the person that supervises that agent in the local office or regional office for that agency and then move up the chain of command to the owner if you do not feel your concern has been addressed property. 
 Lastly, while you say the agent was unprofessional in selling your home, there are times when a seller’s perception of a problem may not rise to a level that can actually be considered a real problem by most real estate professionals. You might want to discuss your situation with an unbiased person in the real estate industry to determine whether a problem is grave enough to merit more of your time on this issue. 
 Ilyce Glink is an award-winning, nationally-syndicated columnist, television reporter, radio <a href="/topics/Talk_Show_%28musician%29">talk show</a> host and bestselling book author. Her syndicated column, Real Estate Matters, appears in more than 100 newspapers and Web sites.

re-glink

Filing a complaint against a real estate agent

If you're in the market to buy or sell, it wouldn't hurt to brush up on the rules of engagement, especially when it comes to open houses. Here, real estate agents offer the do's, don'ts and other protocol for buyers and sellers: 
 &nbsp; 
<h3> BUYER ETIQUETTE</h3> 
 1. Be prepared to show identification and sign <a href="/topics/New_York_%28state%29">New York</a> State disclosure forms 
 Buyers attending an open house should be prepared to show a driver's license for purposes of safety and tracking interested buyers, says Ellen Zipes with Daniel Gale Sotheby's International Realty in <a href="/topics/East_Hills%2C_NY">East Hills</a>. Buyers are then asked to sign a disclosure form -- required by <a href="/topics/New_York_%28state%29">New York</a> State -- to confirm that they understand the Realtor is representing the seller at the open house. Although not mandated, Zipes says that if the buyer refuses to sign the disclosure form, the agent writes his name and address on the form and notes he refused to sign. Information is kept confidential. 
 2. Hold on to your kids 
 Better yet, don't bring them along, advises Deirdre Hutton of Prudential <a href="/topics/Douglas_Elliman">Douglas Elliman</a> Real Estate in Huntington. "But if you have no choice, don't let them roam through the house -- it's distracting and a safety concern," she says. 
 3. Skip the small talk 
 Some buyers get too chatty about a seller's artwork, photos, books, knickknacks and diplomas. They may even get competitive about children or careers, explains Reena Khera of Shawn Elliott Luxury Homes &amp; Estates in <a href="/topics/Woodbury%2C_NY">Woodbury</a>. "The broker wants to make a commission, and the seller wants to sell. After you've greeted the host, get down to the business of house hunting," she says. 
 4. Dress appropriately 
 While you can leave the <a href="/topics/Ralph_Lauren">Ralph Lauren</a> suit at home, don't wear shorts and flip flops either, says Claire Calladine of Coach Realtors in <a href="/topics/West_Islip%2C_NY">West Islip</a>. Buying a home is a business transaction. "Obviously financing is the bottom line, but first impressions count," she says, especially in multiple offer situations. 
 5. Come prepared 
 If square footage is important to you, bring a tape measure, says Calladine. And always bring a pad and pencil to take notes because one's memory of a house can <a href="/topics/Blur_%28musician%29">blur</a>, she says. 
 6. Touch before you sit 
 Some homes for sale are empty and with fake furniture, such as airbeds and cardboard box couches. So make sure you check it's real before plopping on the sofa. 
 7. Don't <a href="/topics/Snoop_Dogg">snoop</a> 
 While it's fine to make sure there's enough storage space in bedroom closets, drawers and kitchen cabinets, don't rummage through them, says Khera. Just look. 
 8. Hold your tongue 
 The adage, "If you can't say anything nice, don't say anything at all" also applies to house hunting. "Remember, the seller still calls the place home," says Calladine. "It's one thing to walk into a room and say, 'This room is too small for us,' versus, 'This house is minuscule.' Or just because the kitchen doesn't look like an <a href="/topics/HGTV">HGTV</a> spread, doesn't give you the right to say it's ugly." Who knows who may be listening? The seller, a neighbor, a friend? If you end up in a multiple-offer situation where price and terms are similar, you don't want the seller choosing the other buyer because he or she heard you criticize the home, warns Calladine. 
 9. Use a poker face 
 Especially if you are viewing an open house with other couples, you may not want to reveal how much you love the house, says Christele Amendola of Daniel Gale's <a href="/topics/Cold_Spring_Harbor%2C_NY">Cold Spring Harbor</a> office. Sharing too much information could compromise your bargaining position. 
 10. Ask permission before taking photos or videos 
 "Homeowners, especially those with expensive homes, may get offended, or have privacy and safety concerns," says Khera. For instance, they may not appreciate if an expensive piece of art or furniture or a child is captured in a picturetaken with a camera or <a href="/topics/Cellular_Phones">cellphone</a>. Ask first. 
 11. Gotta go? 
 Don't assume that all bathrooms are for public use. Ask your broker or the seller which bathroom you may use, says Khera. 
 &nbsp; 
<h3> SELLER ETIQUETTE</h3> 
 12. Get out! 
 Buyers are comfortable speaking in front of agents, not homeowners, and they need to visualize themselves living in the house, says Hutton. A buyer also will often feel self-conscious opening the owner's drawers and closets in front of him. The consensus among agents is that sellers would do well to leave the house when it's being shown to interested buyers. 
 13. Or fade into the background 
 If you can't leave, then meet, greet and discreetly step aside, says Gail Carillo with <a href="/topics/Coldwell_Banker">Coldwell Banker</a> Residential Brokerage in Ronkonoma. "It's important to extend privacy to the agent and buyer. However, if the seller is in hiding and makes the buyer feel ignored, that's not good either. It's a delicate balance. Make it clear that you aren't being snobby, but just want to grant the buyer privacy to view the house," she advises. Then, Carillo says, be there at the end for questions and to say goodbye. If there's some connection between buyer and seller, it can sometimes be what it takes to get a buyer who is on the fence to commit, she notes. "Buying a house is about more than just an exchange of money -- it's a personal experience, too," she says. 
 14. No pets allowed 
 Make arrangements for your dogs, cats or other beloved creatures to leave during the open house. Selling a home where pets live is difficult enough without advertising the fact that pets live there. Buyers may even be allergic. Pets are also a distraction -- you want buyers to admire your home, not your cockatoo (or look in disgust at the cage). Ideally, pets should be out of the house at a neighbor's or friend's and pet smells should be eliminated as much as possible. Be sure any visible cages and pet dishes are spotless. 
 15. Look presentable 
 It reflects on your home and housekeeping, says Marie-Denise Kratsios of Daniel Gale's Huntington office. "A buyer may wonder how a house was taken care of if the seller doesn't reflect personal decorum," she says. 
 16. Provide some direction 
 Is your house not so easy to find? Pat Nugent, owner of Marashinsky &amp; Nugent in <a href="/topics/Rockville_Centre%2C_NY">Rockville Centre</a>, suggests making sure that signs are prominently positioned at major and minor roads, where permitted by the municipality, to help buyers find their way. Attach strings of balloons to each open house sign and make sure arrows point in the right direction. Good signage can draw traffic, she says. 
 17. Keep your car out of the driveway to accommodate visitors 
 Neighbors shouldn't park in front of your house because it makes maneuvering harder and look like it will be difficult to park if they move in, says Nugent. 
 18. Set out all house-related documents 
 If you're a serious seller, Nugent says you should have available all inspection reports, appraisals, proof of major repairs and information on monthly expenses for gas, electric and oil, as well as options to rent.

LSMAIN16.WEB

Open house etiquette for buyers, sellers

reVALERIEistock001

Q: Last summer we refinanced our farm home. Line 103 of the settlement statement indicated that we had settlement charges of about $4,000. A month or so later, we listed the property for sale and it closed at the end of last year. 
 Our question is can we claim the $4,000 on our income tax itemized statement (schedule A) for last year? 
 A: Just about everybody has seen a settlement statement if they have purchased or sold a home during the last thirty years or so. That settlement statement is usually prepared by the closing agent, title company, settlement agent or by the person handling the closing of a residential transaction. 
 The settlement statement goes by the name of HUD-1, closing statement or settlement statement, depending on what state you are in when you close. But the document itself is a standard statement that is the same wherever you go to close on a residential real estate transaction. There might be some exceptions, but most everyone will agree that the form seems quite long and confusing, even after the so called improvements to the form that were in place at the beginning of last year. 
 The amount you referenced from line 103 is the sum of costs from the second page of the settlement statement. You are right to think that you might be able to deduct some of those expenses, but some are definitely not deductible. 
 The second page of the settlement statement will include charges from your lender to give you financing, may include points and fees charged by your lender, fees charged by the closing agent, title company and other parties, may include prepaid interest, as well as fees to record documents and amounts you might need to escrow for real estate <a href="/topics/Income_Taxes">taxes</a> and insurance payments. 
 For practical purposes, you might have already deducted or have the right to deduct some of those fees. If you paid interest at the time of your closing, you might have received a 1099 form from your lender itemizing the interest that was part of that $4,000. You won’t be able to deduct that amount twice. 
 Some of the closing costs from that page of the form are not deductible in any event when you are dealing with a residential transaction. Some of these fees may be related to recording charges, title company fees and the closing fee. If your farm home is handled as a business, you’ll have to talk to your accountant to determine how to handle these expenses. 
 If you paid points to obtain the loan, you would have been entitled to divide the amount you paid by the number of years for your loan and deduct an equal amount each year that you had the loan. But since you have now paid that loan off, you may be entitled to deduct those points on your return for last year. 
 Other costs and expenses may go towards increasing the basis of your home, but not expenses for real estate <a href="/topics/Income_Taxes">taxes</a> and insurance. That is to say, if you spent $3,000 in costs to obtain the loan and the basis on the home was $400,000, your new basis would be $403,000. And when you sell the home you would not owe any tax on the first $403,000 of the sales price. 
 (Keep in mind that current law allows you to exempt the first $250,000 in profit from taxation when you sell your primary residence and you have used that home as your primary residence during the prior two of the last five years. And if you are married, you can keep up to $500,000 in profits tax free if you qualify for the exemption.) 
 For precise information of what you can and can’t deduct, take a look at the booklet put out by the IRS called: Publication 523, “Selling Your Home” and Publication 936, “Home Mortgage Interest Deduction.” You can download these publications at www.IRS.gov.

Which closing costs are tax deductible?

ISTOCK  cropped 3.15.12

&nbsp;My friend and I are in the final stages of buying a house. The property is going to be in her name only but some things have changed and we no longer can afford to buy the home. 
 What are the penalties if we don’t go to the closing and renege on the deal? We both own homes about 75 miles apart and are already paying on our mortgages. She made up a rental contract on her property in order to qualify for this one. 
 How should we handle this? 
 A: It’s far better to back out now – it’s kinder to the seller and the agents who have spent time trying to get this deal done. As far as penalties go, you might lose the deposit you put down to purchase the home and you might get sued down the line if the sellers can prove damages. 
 The extent of your liability to the seller should be detailed in your purchase and sale agreement. In some cases, you might only lose the money you put down on the contract. In other cases, a seller can sue you for any damages they sustain. And in other cases, you might not have any liability if you are early enough in the transaction and have a valid reason to terminate the deal. 
 If circumstances have changed in your lives that will prevent you from obtaining financing, your contract might provide that if you are denied financing within a certain time period, you can notify the seller and cancel the deal. 
 But if you are almost at closing, you can expect the seller to be quite upset at you terminating the purchase and sale agreement for their home. If your purchase and sale agreement contains a penalty provision, you can bet the seller will want to enforce that provision to the maximum and get as much as he or she can from you for your default, breach of the contract, and failure to purchase their home. 
 Contact a real estate attorney who can help explain your legal liabilities and help you unwind this. Call your local bar association and ask for the head of the real estate committee if you don’t know an attorney. Ask for a referral for an attorney that practices mainly real estate law. 
 Award winning columnist, television reporter and radio <a href="/topics/Talk_Show_%28musician%29">talk show</a> host, Ilyce Glink gives her best tips and tricks on Personal Finance and Real Estate, along with general consumer advice.

Terminating a purchase contract for a home

ny-re-contract0528-top

<a href="/topics/Bankrate_Inc">Bankrate</a>.com recently released a list of the top ten states for foreclosure (based on June numbers). Many on the list aren't a surprise, but a few -- such as <a href="/topics/Idaho">Idaho</a> -- are. Nationwide, foreclosure filings rose 4 percent from May to June, <a href="/topics/Bankrate_Inc">Bankrate</a>.com reports. 
What's helpful about the <a href="/topics/Bankrate_Inc">Bankrate</a>.com list is that it shows the average foreclosure sales price in each of the top ten states. So people interested in buying houses on the foreclosure market get a good idea of what they can expect to pay. A word of warning, though: Foreclosures may look like great deals, but buying one can be a hassle. 
To find foreclosures, there are several resources online: 
See homes in foreclosure at <a href="http://www.realtytrac.com/home/">RealtyTrac.com</a> (free for seven days; $49 a month for a monthly subscription or $25 a month for an annual subscription) and <a href="http://www.foreclosure.com/">Foreclosure.com</a> (free for seven days; $9.95 a week). <a href="https://www.equator.com/home/">Equator.com</a> also provides a free listing of homes in foreclosure. 
<a href="http://www.homepath.com/">HomePath.com</a> lists properties owned by <a href="/topics/Fannie_Mae">Fannie Mae</a> (acquired through foreclosure). Besides listings, <a href="/topics/Fannie_Mae">Fannie Mae</a>'s site also offers two types of financing -- the HomePath mortgage, which allows as little as 3 percent down, and a renovation mortgage, which finances both your purchase and a light renovation. 
<a href="http://homesteps.com/">HomeSteps.com</a> lists properties owned by <a href="/topics/Freddie_Mac">Freddie Mac</a>. Buyers of a Freddie <a href="/topics/Mac_Cosmetics">Mac</a> home may qualify for a two-year home warranty and a discount of up to 30% on new appliances. 
<a href="http://homesales.gov/homesales/mainAction.do">HomeSales.gov</a> lists homes for sale by the federal government. 
All contents copyright 2011 The Kiplinger Washington Editors, Inc.

re-foreclosures

6 websites for finding homes in foreclosure

Foreclosure -- cropped

The American dream of owning your own home is still alive on <a href="/topics/Long_Island%2C_NY">Long Island</a>. 
For those venturing into the <a href="/topics/Real_Estate">real estate</a> market for the first time, that big house with the picket fence might have to wait. But thanks to low interest rates and an ample supply of affordable cooperatives and condominiums to choose from, getting your foot in the door might be easier than you think. 
Prices of condos and co-ops can run considerably lower than comparable single-family homes, says Ira Freireich of Best Buyer's Broker Realty in <a href="/topics/Malverne%2C_NY">Malverne</a>. Freireich estimates that condos are priced at about 85 percent to 90 percent and co-ops at 50 to 60 percent of the cost of similarly situated single-family homes. 
In some areas, a buyer can land a studio apartment for as little as $50,000 and start building equity instead of paying rent. 
Barbara Ford of Ford Real Estate in <a href="/topics/Floral_Park%2C_NY">Floral Park</a> says that owning a co-op or condo may be less expensive than renting, depending on your mortgage or loan payment and monthly carrying charges, and applicable tax deductions. 
For example, she says, in <a href="/topics/Floral_Park%2C_NY">Floral Park</a>, one-bedroom apartment rentals run between $1,200 and $1,400. The total cost of typical mortgage and maintenance payments might be about the same, but, Ford says, the "real cost" of owning that unit could be hundreds of dollars less after tax deductions. 
The Mutiple Listing Service of <a href="/topics/Long_Island%2C_NY">Long Island</a>'s latest figures show that in September, the median sales price for residential properties in <a href="/topics/Nassau_County%2C_NY">Nassau</a> County was $423,250, and for <a href="/topics/Suffolk_County%2C_NY">Suffolk</a> it was $340,000. In contrast, the median sales price for condos and town houses was $409,550 for <a href="/topics/Nassau_County%2C_NY">Nassau</a> and $318,500 in <a href="/topics/Suffolk_County%2C_NY">Suffolk</a>, and for co-ops, the median prices were $189,000 in <a href="/topics/Nassau_County%2C_NY">Nassau</a> and $130,000 in <a href="/topics/Suffolk_County%2C_NY">Suffolk</a>. 
Median closing prices were down in every category compared to September 2009. Affordability, as defined by MLSLI's index that factors in median family income and home prices, is also up in every category since last year at this time. 
"Buying a home is a process," Freireich says. "Take the time to investigate and to research and understand what you are purchasing." 
While co-ops won't appreciate as much as single-family homes, they will go up and down with the market, and Freireich feels that prices will not drop over the next five years. 
"The bottom line is that you are buying a place to live in now that will sell later," he says. 
<hr> 
<img src="http://cdn.newsday.com/polopoly_fs/1.2386445.1287667178!/httpImage/image.JPG_gen/derivatives/landscape_297/image.JPG" align="left" style="padding: 15px 15px 15px 0px;" alt=""> 
<h3>Nesconset&nbsp;</h3> 
$339.999 
What:&nbsp;Town house condominium in the Woods at <a href="/topics/Smithtown%2C_NY">Smithtown</a> development 
Where:&nbsp;Jeremy Circle 
Common charges:&nbsp;$350 a month 
Annual taxes:&nbsp;$7,143 
Down payment: &nbsp;No minimum required by the development; down payment determined by lending institution 
The unit:&nbsp;Two bedrooms, two full baths, end unit in the <a href="/topics/Smithtown%2C_NY">Smithtown</a> school district. Amenities include central air-conditioning, skylights, a fireplace, deck, a one-car garage and a private driveway lined in Belgian blocks. The master bedroom has a walk-in cedar closet, and the master bath has a Jacuzzi. The development has a pool, a tennis court and a clubhouse. The home is close to MacArthur Airport and the <a href="/topics/Ronkonkoma%2C_NY">Ronkonkoma</a> <a href="/topics/LIRR">LIRR</a> station. 
Listed with:&nbsp;Michele DeLuca, Leesa Byrnes Realty, 631-589-2000 
<a href="http://newsday.optimumhomes.com/homes/listing/128-2321877/Nesconset-NY-USA/300000-350000-price/128-2321877--80-1079860--2112432-2274334--80-2295419--80-2277548--80-2322948--2112768-2301565-ls/7-t/CodeFeatured,0,,Price_Sales,1-ns">CLICK&nbsp;HERE</a> for more photos and the full listing. 
<hr> 
<img src="http://cdn.newsday.com/polopoly_fs/1.2386486.1287667665!/httpImage/image.JPG_gen/derivatives/landscape_297/image.JPG" align="left" style="padding: 15px 15px 15px 0px;" alt=""> 
<h3><a href="/topics/Lynbrook%2C_NY">Lynbrook</a>&nbsp;</h3> 
$319,000 
What:&nbsp;Co-operative town house 
Where:&nbsp;Atlantic Avenue 
Maintenance charges: $1,164, includes taxes 
Down payment:&nbsp;Development requires a conventional loan, usually with at least 10 percent down 
The unit:&nbsp;Three bedrooms, 2 1/2 baths in the <a href="/topics/Lynbrook%2C_NY">Lynbrook</a> school district. With a private entrance and fenced-in yard, this three-level townhome has the feel of a private house, the listing agent says. Amenities include central air-conditioning, a washer/ dryer, two outdoor and one indoor parking spots, a new eat-in kitchen and an attic. It's within walking distance of the <a href="/topics/Lynbrook%2C_NY">Lynbrook</a> <a href="/topics/LIRR">LIRR</a> station. 
Listed with:&nbsp;Marlene Gross, Edward McNulty Realty Inc., 516-887-3603 
<hr> 
<img src="http://cdn.newsday.com/polopoly_fs/1.2386509.1287667918!/httpImage/image.JPG_gen/derivatives/landscape_297/image.JPG" align="left" style="padding: 15px 15px 15px 0px;" alt=""> 
<h3><a href="/topics/Great_Neck%2C_NY">Great Neck</a>&nbsp;</h3> 
$269,000 
What:&nbsp;Co-operative apartment in the Birchwood Development 
WHhere:&nbsp;Brompton Road 
Maintenance charges: &nbsp;$793 a month, which includes heat, water, taxes, management fee and the interest on the property's underlying mortgage. 
Down payment:&nbsp;20 percent 
The unit:&nbsp;One bedroom, one bathroom with an L-shaped living room that can be converted easily to a second bedroom, the listing agent says. This top- floor apartment in the <a href="/topics/Great_Neck%2C_NY">Great Neck</a> school district has custom closets and a fully renovated kitchen and bath, and is one block from the <a href="/topics/Great_Neck%2C_NY">Great Neck</a> <a href="/topics/LIRR">LIRR</a> station and the nearby library, health clubs and shopping. 
Listed with:&nbsp;Tina Kupferberg, Laffey Fine Homes, The June Shapiro Division, 516-482-1111 
<a href="http://www.mlsli.com/unidetailsredo_test.CFM?MLNum=2287461&amp;typeprop=1&amp;start=3&amp;rpp=10" target="_blank">CLICK&nbsp;HERE</a> for more photos and the full listing. 
<hr> 
<img src="http://cdn.newsday.com/polopoly_fs/1.2386522.1287668050!/httpImage/image.JPG_gen/derivatives/landscape_297/image.JPG" align="left" style="padding: 15px 15px 15px 0px;" alt=""> 
<h3><a href="/topics/Freeport%2C_NY">Freeport</a>&nbsp;</h3> 
$229,000 
What:&nbsp;Condominium in the Main Street Mews lofts development 
Where:&nbsp;South Main Street 
Common charges:&nbsp;$360 a month 
Annual taxes:&nbsp;$5,300 
Down payment:&nbsp;10 percent; owner financing available 
The unit:&nbsp;One bedroom, two baths in the <a href="/topics/Freeport%2C_NY">Freeport</a> School District. This loft-like newly constructed apartment includes 17-foot ceilings, central air-conditioning, a T-1 Internet connection, an intercom and a washer/dryer in the three-story elevator building close to the <a href="/topics/Freeport%2C_NY">Freeport</a> <a href="/topics/LIRR">LIRR</a> station. There's a 1,035-square-foot rooftop deck common area for parties and views of the village. 
Listed with:&nbsp;Stuart <a href="/topics/Bayer">Bayer</a>, Prudential <a href="/topics/Douglas_Elliman">Douglas Elliman</a> Real Estate, 516-621-3555 
<a href="http://newsday.optimumhomes.com/homes/listing/80-2238325/Freeport-NY-USA/225000-250000-price/2112309-2323417--2112347-2321701--2112548-2283925--2112548-2250594--2112522-2320980--2112522-2313213--2112359-2318877--2112636-2312114--1-29534132--2112679-2279061--2112326-2312111--524-2315295--2112476-2199338--178-2336194--80-2238325-ls/18-t/CodeFeatured,0,,Price_Sales,1-ns">CLICK&nbsp;HERE</a> for more photos and the complete listing. 
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<img src="http://cdn.newsday.com/polopoly_fs/1.2386533.1287668106!/httpImage/image.JPG_gen/derivatives/landscape_297/image.JPG" align="left" style="padding: 15px 15px 15px 0px;" alt=""> 
<h3><a href="/topics/Middle_Island%2C_NY">Middle Island</a>&nbsp;</h3> 
$215,000 
What:Condominium in the Coventry Manor development 
Where:&nbsp;Crystal Rock Court 
Common charges:&nbsp;$270 a month 
Annual taxes:&nbsp;$4,800 
Down payment:&nbsp;As low as 3.5 percent 
The unit:&nbsp;Two bedrooms, 1½ baths in the <a href="/topics/Longwood%2C_NY">Longwood</a> School District. This home has new ceramic tile and Pergo floors, all new light fixtures, a new washer, a dryer, a den with a brick fireplace and a pull-down storage area. Development amenities include a play- ground, a pool and a tennis court. 
Listed with:&nbsp;Richard Bitzer, Hough &amp; Guidice Realty Associates, 631-345-5600 
<hr> 
<h4>Figuring the down payment&nbsp;</h4> 
So just how much does a first-time buyer need to put down on a condo or co-op? 
Down payments, says Barbara Ford of Ford Real Estate, can vary by community, but start at about 3.5 percent for a condo, she says. For co-ops, the average down payment required is 20 percent, says Ira Freireich of Best Buyer's Broker Realty. "Ten percent is less common, and sometimes no down payment is required," he says. 
If a co-op board asks for less than 20 percent, he says, this may be a sign that the number of owner-occupied units in the cooperative development may be low. Lenders, in turn, could be less inclined to approve a mortgage for the unit. "Know what you are buying into," he says. 
Tina Kupferberg of the June Shapiro Division of Laffey Fine Homes in <a href="/topics/Great_Neck%2C_NY">Great Neck</a> recommends a 20 percent down payment to her clients, even if it's not required ,so that the monthly mortgage amount is lower. Ultimately, she says, "Your mortgage and maintenance fees should never exceed 30 percent of your income." 
For help with that initial down payment, both <a href="/topics/Nassau_County%2C_NY">Nassau</a> and <a href="/topics/Suffolk_County%2C_NY">Suffolk</a> counties offer down payment assistance programs for first-time home buyers who meet certain income requirements. In <a href="/topics/Nassau_County%2C_NY">Nassau</a>, call the <a href="/topics/Long_Island%2C_NY">Long Island</a> Housing Partnership at 516-572-0818; in <a href="/topics/Suffolk_County%2C_NY">Suffolk</a>, call the county's Community Development Agency at 631-853-5705 for more information. 
Educational and counseling opportunities are available to first-time home buyers through the <a href="/topics/Long_Island%2C_NY">Long Island</a> Housing Partnership (lihp.org) and the Community Development Corp. of <a href="/topics/Long_Island%2C_NY">Long Island</a> (cdcli.org). 
<hr> 
<h4>Four things to consider before &nbsp;buying</h4> 
1. FINANCES 
Take stock of your finances. Determine what you can afford, factoring in mortgage and maintenance or association fees. If possible, get preapproved for a loan by your bank. Since approval by a co-op board often takes months, an offer is more likely to be accepted when a shareholder knows you meet the board's income requirements and can obtain a mortgage. 
2. YOUR BROKER 
Find an agent who specializes in co-ops or condos, or someone familiar with the developments in your area. Get referrals or meet brokers at open houses. Your broker should be able to advise you on income and other requirements for the co-op or condo you are interested in and also what to expect in an interview with the board. 
3. THE UNIT 
Decide how much space you need. Will a studio suffice, or will you need more room for the children you plan to have? What are the amenities in the complex? Is there a pool, a clubhouse or exercise room, laundry facilities? Does that matter to you? Is parking included or is a parking space available at an extra charge? What services are included in the carrying charges? 
4. THE RULES 
Before you sign a contract, find out if you are comfortable with the rules of the development. Are they too restrictive, or could you be happy there? Are you able to sublet, are pets allowed, is smoking allowed, are there any age requirements? Read the development's guidelines carefully before making your decision.

LSMAIN22.WEB

Co-ops and condos: More affordable home ownership

That new-car smell. The latest fashion. A theater debut. There's something irresistible about the newest thing on the scene - and <a href="/topics/Real_Estate">real estate</a> is no exception. Like the proverbial 15 minutes of fame, your home's first week on the market is a moment in the spotlight that won't happen again - so it's crucial to make the most of it. 
A new listing has two major perks that smart sellers won't want to miss out on. The first is your bargaining position: It will never be this good again. It's an inescapable reality of any sales negotiation that once you've named your opening price, you've got nowhere to go but down - and the longer it takes, the lower the price may go. Indeed, in the first half of this year, Long Island homes spent an average of 119 days on the market, and the average contract price was 6.45 percent less than the original asking price, according to <a href="/topics/Real_Estate">real estate</a> appraisal and consulting firm Miller Samuel. For a seller asking $350,000, that's a $22,575 discount. In the same time period for 2006, the average time on the market was 86 days and the listing discount averaged 4.1 percent. 
The second advantage to the first week is the marketing blitz that occurs - effortlessly, and at no extra cost to the seller - when a home is entered into the Multiple Listing Service. Thanks to an endless array of electronic gizmos, apps and alerts, the moment a new home is listed, everybody knows it. "It is instantaneous," says Cyndi Sheppard of RE/MAX Alliance in Miller Place. "Whatever sites your office is involved in, they all feed off the Multiple Listing automatically." 
Having your home announce itself to your target market at its moment of peak value is big exposure - and it only happens once. Here's how to capitalize on that new-listing luster before it fades: 
<hr> 
1. Don't jump the gun Even if you want your house sold yesterday, don't make the mistake of rushing it onto the market before the property and your selling strategy are anything less than perfect. There's a lot of preparation - from prettying up the place to pricing it properly - that needs to take place. "Unless the sellers are really savvy and have done all this ahead of time, it's premature," says Krae Van Sickle of The <a href="/topics/Corcoran_Group">Corcoran Group</a>. "You should hire somebody and figure out what's necessary, and then go on the market once you've got your show ready for prime time." 
2. Hire a pro, or think like one There are 7,996 homes for sale in Nassau and 11,713 in Suffolk, according to the Multiple Listing Service of Long Island. "With all the competition, you have to make sure that the marketing of the home is perfectly in place," Sheppard says. If you're not using an agent, you should be aware of what they're doing for your competition. "The listing agent is hired by the owner to give them information, consultation, to do management, arrange showings and marketing," Van Sickle explains. The marketing can include everything from professional photography and virtual tours to holding open houses. 
Appealing to potential buyers is only half the marketing equation, says Karen Mazzola of Realty Connect USA. "It also needs to be accepted by the other <a href="/topics/Real_Estate">real estate</a> brokers and agents out there, so they'll view it as an exceptional piece of inventory." 
To attract all those agents, "Make sure you've done your homework, and make it really easy for the selling agent to answer all the buyers' questions," Van Sickle says. 
Get it right the first time, and you've got yourself an extended sales team, Mazzola says. "Basically, they're working for our homeowner as well." 
3. Price it right Sellers, understandably biased, are notorious for overestimating the worth of their homes. But this is no time to be sentimental - it's time to be pragmatic. "Price is a moving target," Van Sickle says. "You need to have a sober market analysis done by somebody objective. The agent should give the owners the raw data, and they should listen to the interpretation. The agent has to do a very thorough and considered market analysis to judge what price it should be." 
Most buyers' agents won't bother showing your house if the price is unrealistic - they'd rather put their time and effort into the ones that are most likely to sell. An overpriced home isn't a good bet for two reasons. The first one's obvious: What buyer wants to overpay? And second, even in the unlikely event that a buyer falls in love and agrees to a price that's above market value, the lender may not. 
If your place is more expensive than comparable ones in the area, or if similarly priced homes are offering more for the money - the same model house with a newer kitchen, for instance - rethink that number before you list it. 
 4. Get ready for your close-up One of the biggest blunders sellers make is to list a home without photos, figuring they can add them later. Don't do it, Sheppard warns. When agents and buyers receive a new listing alert, they expect to see interior and exterior photos immediately - and good ones. If they don't, they'll likely pass it over and never look back, she says. By the time you get around to posting the pictures, you've missed your shot: Newer listings will be getting all the attention. 
"The photograph is extremely important these days," Van Sickle says. "So many people are making a huge amount of their judgment based on the photos on the Internet." 
You want your house to explode onto the electronic scene looking impeccable. The interior shots should depict a home that's spotless and clutter-free. Outside photos should be in season, with a manicured property for inviting curb appeal. "Take four or five different angles to see which looks best," Mazzola suggests. 
 5. Set the stage Buyers need to be able to imagine themselves living in your house, and it's your job to remove any obstacles that might cloud that vision. Stage the place carefully, putting your home's best face forward - not your family's. "When you're selling a house, less is more," Mazzola says. "You want to depersonalize it so the buyers can picture themselves there. You don't want too many personal things up and hanging. It distracts them. They're supposed to be looking at the house and they end up looking at your pictures and your plaques and your history." 
Patch up any problem areas before showing the home, Van Sickle advises. "You'll end up taking a huge discount if you don't fix it up properly," he says. "The first thing they look for is the defects. If they don't see any defects, then they walk in and begin to see themselves in the house," Van Sickle says. 
Follow your agent's advice, or consult a professional home stager for tips on how to make your home look its best. "You're trying to do the superficial things mostly, the things that make it present well," Van Sickle says. "Buyers have choices. The ones that are best presented are the ones that will sell." 
<hr> 
A picture is worth a thousand words 
The owner of this four-bedroom <a href="/topics/Brookhaven%2C_NY">Brookhaven</a> home received an offer within a week of listing the home, and was in contract in 19 days. The house sold for $470,000 - 5.8 percent below asking price. 
The home was first listed with another broker for $529,000 using the photo at right. When it didn't sell after nine months, the owner let the listing expire and hired Tracy Boucher of Coach Realtors. 
"There was nothing wrong with it, but it didn't look good on the Internet," Boucher says. 
It was off the market for a week, during which Boucher and the owner made a few tweaks. "I came in, we repriced it, put in the mulch, trimmed it up and reshot the house with a wide-angle lens," she says. 
Boucher is very particular about what to include in a shot - and what to exclude. "We try to shoot to get most of the house in, never the street," she says. She forbids cars, trash cans and toys. 
The professional photographer noted the direction the home faced, then waited for the optimum time on a sunny day and took the photo at a new angle from under the tree so the house wouldn't be obscured. 
Home stager Lynne Kleinman explains why the new shot works. "You want to see the architecture of the house. It's a very appealing line," says Kleinman, who co-owns Accent Home Staging &amp; Organizing in Great Neck with Ellen Blank. "The way they took it makes you want to walk in." 
"His house was pretty clean, but it just needed a fresh perspective - and it worked," Boucher says. 
<hr> 
 Did it wrong the first time? Try again 
Missed your big moment? All is not lost - but now you'll have to work twice as hard to stay competitive, says Cyndi Sheppard of Re/Max Alliance in Miller Place. "Constantly find things to do with your listing to bring it in front of the eyes of the buyers," she says. Here are three changes you can make that will keep your house in the running: 
 CHANGE YOUR PHOTOS A dated-looking picture tells buyers it's an old listing - and makes them wonder what's wrong with the house. If the tulips were in bloom when you took your exterior shot, it's time to replace that image. "Change the pictures with the seasons," Sheppard advises. 
 UPDATE THE DESCRIPTION This one's most effective if something has actually changed - you've given the place a new paint job, for instance, or scheduled an open house. But even if you just rewrite the description to highlight your pool in the summer, or the fireplace in the winter, the update might get your listing a second look. 
 IMPROVE THE HOME - OR DISCOUNT IT 
"If it's not mint, start working on it," Sheppard says. "If it's not mint and you can't work on it, then you have to do a price reduction." It's painful, but sometimes necessary. "Just reduced" may not have the same ring as "new listing," but there is a bright side: Your home will be "new" to the eyes of every buyer in your new, lower price range.

A new listing gets the spotlight: make it sing

Long Island is a colorful place, with different regions giving off distinctly different vibes. 
There's an all-business attitude pumping through the well-developed middle of the island that begins to taper off as you branch out toward the coasts: The North Shore's natural landscape is pensive and peaceful, the South Shore's beach and bustle are warm and lively - and those feelings only intensify as you progress east, to the serene reaches of the <a href="/topics/North_Fork%2C_NY">North Fork</a> and the sunny, playful Hamptons. 
Each region's <a href="/topics/Real_Estate">real estate</a> market has its own temperament as well. Read on for a sampling of the many personalities of the Long Island's housing market. 
<hr> 
<h4>MID-ISLAND</h4> 
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THE VIBE: Buyers gobbled up discounted inventory in <a href="/topics/Nassau_County%2C_NY">Nassau</a>, according to Miller Samuel. First-quarter sales hit 1,324 - a 31.7 percent jump from 1,005 homes in the same quarter last year. 
The first-quarter median slid 2.6 percent, from $380,000 last year to $370,000 in 2010, and 3.9 percent, from $385,000, in the last quarter of 2009. Average first-quarter sales price sagged - down 6.8 percent from $436,070 in 2009 to $406,200 this year. 
In <a href="/topics/Suffolk_County%2C_NY">Suffolk</a>, first-quarter sales rose 22.5 percent, from 316 in 2009 to 387 this year - down by 29 percent, from 543 sales, in the fourth quarter of 2009, according to Multiple Listing Service of Long Island data. 
There was an uptick in first-quarter prices - the median went up 3 percent, from $310,775 in 2009 to $320,000 this year, and the average rose 1.3 percent, from $351,362 to $356,086 in the same periods. 
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THE HIGH: A three-bedroom custom contemporary with two bathrooms and two half-bathrooms on nearly seven acres in the pine barrens area of <a href="/topics/Manorville%2C_NY">Manorville</a>, is on the market for $1.35 million. 
Listing agents: Diana Fasano and Robert Normandin, Coach Realtors, 631-360-1900. &nbsp; 
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THE LOW: There's a two-bedroom ranch with one bathroom in <a href="/topics/Roosevelt%2C_NY">Roosevelt</a> listed for $159,000. 
Listing agent: Teddy Livingstone, <a href="/topics/Century_21">Century 21</a> Annettes, 516-564-4480. &nbsp; 
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GROOVY HOME THEATER AWARD: This five-bedroom Colonial in <a href="/topics/Dix_Hills%2C_NY">Dix Hills</a> gets the prize for its main-level entertainment wing featuring a sports bar and home theater with all the bells and whistles - surround sound, a drop-down screen and blackout shades. The walls are painted with a playful film motif. It's listed for $2.3 million. 
Listing agent: Rita Bender, Coldwell Banker Residential Brokerage, 631-673-6800. 
<hr> 
SOUTH SHORE 
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THE VIBE: The invigorating ocean breeze seems to have ushered in enthusiasm along the silky sands of the South Shore, from <a href="/topics/Atlantic_Beach%2C_NY">Atlantic Beach</a> to <a href="/topics/East_Moriches%2C_NY">East Moriches</a>, in the first quarter. 
The number of sales across both counties rose by 33.9 percent, from 513 to 687 compared with last year - although that number is down by 34.6 percent from 1,051 in the previous quarter, according to the Miller Samuel report, which was commissioned by Prudential <a href="/topics/Douglas_Elliman">Douglas Elliman</a> Real Estate. 
The median sales price for the first quarter of 2010 dropped 3.2 percent from the first quarter of 2009, from $310,000 to $300,000, and saw a 5.4 percent decline from the fourth quarter of 2009. 
Average sales price slipped - the first quarter average was $332,505, down 4.2 percent from $347,119 the prior year quarter. 
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THE HIGH: A bayfront Colonial on a private cul-de-sac in <a href="/topics/Lido_Beach%2C_NY">Lido Beach</a> with six bedrooms and 3½ bathrooms is listed for $3.2 million. Listing agent: Joyce Coletti of Prudential <a href="/topics/Douglas_Elliman">Douglas Elliman</a> Real Estate, 516-313-2700 &nbsp; 
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THE LOW: A one-bedroom, one-bathroom cottage in <a href="/topics/Patchogue%2C_NY">Patchogue</a> is listed as a short sale for $189,000. 
Listing agent: Jennifer Goldberg, Gateway to the Hamptons Real Estate, 631-325-3449. 
&nbsp; 
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UNEXPECTEDLY MODERN INTERIOR AWARD: A 1910 Colonial in <a href="/topics/East_Moriches%2C_NY">East Moriches</a> retains its exterior charm and its original stairs - but everything else, from the moldings to the floors, has been restored or remodeled. It's listed for $390,900. 
Listing agent: Veronica McMahon, Gateway to the Hamptons, 516-848-6372. 
<hr> 
<h4><a href="/topics/North_Fork%2C_NY">NORTH FORK</a></h4> 
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THE VIBE: It's a good year in wine country, which enjoyed a boost in both prices and sales. The median sales price in the area east of <a href="/topics/Riverhead%2C_NY">Riverhead</a> for the first quarter climbed 16.3 percent, to $516,000, compared with $443,500 in 2009's first quarter. 
The same trend was evident in average sales price, which rose to $749,057, a 35.9 percent increase from $550,994. 
The number of first-quarter sales showed a 60.7 percent increase year over year, rising from 56 to 90, though it dipped from 155 in the fourth quarter of 2009. 
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THE HIGH: A Mediterranean-style home in <a href="/topics/Mattituck%2C_NY">Mattituck</a> with six bedrooms and 8 1/2 bathrooms is listed for $9.75 million - and it comes with all the furniture, including an antique pool table and a fully equipped gym, plus a 26-foot Sea Ray cruiser and a 2008 Mercedes S550. 
Listing agent: Sheri Clarry, The <a href="/topics/Corcoran_Group">Corcoran Group</a>, 631-765-1300.&nbsp; &nbsp; 
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THE LOW: There's a three-bedroom ranch with 1 1/2 bathrooms for sale in <a href="/topics/Greenport%2C_NY">Greenport</a> for $249,900. Listing agent: Sonja Reinholt, The <a href="/topics/Corcoran_Group">Corcoran Group</a>, 631-765-1300 &nbsp; &nbsp; 
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WHIMSICAL GARDEN AWARD: A trickling waterfall, rich greenery and peeking gnomes earn this <a href="/topics/Wading_River%2C_NY">Wading River</a> property the prize. Listed for $324,850, the ranch has two bedrooms and 1 1/2 bathrooms. 
Listing agents: Matthew and Margaret Kochman, Prudential <a href="/topics/Douglas_Elliman">Douglas Elliman</a> Real Estate, 631-474-4242. 
<hr> 
<a href="/topics/The_Hamptons%2C_NY">THE HAMPTONS</a> 
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THE VIBE: In an apparent frenzy of activity in the hedonistic Hamptons, the number of first-quarter sales made a 173.1 percent leap, from 145 to 396 - the biggest gain over a one-year period since the group began tracking it six years ago. 
But don't get too excited - sales were abnormally depressed when fickle would-be Hamptonites fled the beach scene during the stormy economic conditions at the beginning of last year, making the rebound look deceptively dramatic by comparison, the report says. 
First quarter 2010 sales tapered off by 3.2 percent from the fourth quarter of 2009. First-quarter prices paint a sunny picture, thanks to activity in the slow luxury market: The median sales price rose 34.6 percent, from $675,000 to $908,500, and the average went up 33.5 percent, from $1,313,735 to $1,753,608 compared with the prior year quarter. 
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THE HIGH: This $9.9-million postmodern in <a href="/topics/Westhampton_Beach%2C_NY">Westhampton Beach</a> has seven bedrooms, seven bathrooms and two half-baths. 
Listing agents: Traci Clinton and Lynn November, Prudential <a href="/topics/Douglas_Elliman">Douglas Elliman</a> Real Estate, 
516-627-2800. &nbsp; 
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THE LOW: In <a href="/topics/Hampton_Bays%2C_NY">Hampton Bays</a>, a two-bedroom, one-bathroom cedar shake farmhouse with Andersen windows is listed for $264,000. Listing agent: Anthony Lubrano, Compass East Realty Ltd., 631-728-1116 &nbsp;&nbsp; &nbsp; 
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BEST-BUY AWARD: This three-bedroom, three-bathroom ranch on a three-quarter-acre lot lists for $1.29 million - that's a bargain for property south of <a href="/topics/Montauk%2C_NY">Montauk</a> Highway in pricey <a href="/topics/Quogue%2C_NY">Quogue</a>, says listing agent Judi Riccardi of Town &amp; Country Real Estate. Add a second story and you'll have water views, she adds. Contact: 631-288-3030. 
<hr> 
<h4>NORTH SHORE</h4> 
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THE VIBE: Sales were up in both counties along the Gold Coast, where mature trees and rocky beaches seem undisturbed by mortal matters such as market fluctuations. From <a href="/topics/Nassau_County%2C_NY">Nassau</a>'s <a href="/topics/Kings_Point%2C_NY">Kings Point</a> to <a href="/topics/Laurel_Hollow%2C_NY">Laurel Hollow</a>, prices made no dramatic moves, yet the number of sales nearly doubled - from 216 to 416 - in the first quarter of 2010, compared with the first quarter of 2009, according to Miller Samuel. The average sales price rose 1.1 percent, from $861,260 to $870,689, while the median dipped 2.4 percent, from $653,000 to $637,500. 
In <a href="/topics/Suffolk_County%2C_NY">Suffolk</a>, sales activity increased by 62 percent, according to data from the Multiple Listing Service of Long Island: Some 390 homes sold in the first quarter of 2010, compared to just 242 in the same quarter of 2009. The median sales price slipped 2.4 percent, from $410,000 to $400,000, while the average price dropped 6.5 percent, from $478,447 to $447,214. 
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THE HIGH: A custom-furnished, six-bedroom Mediterranean-style home with six bathrooms and five half-baths is on the market for $17.5 million in <a href="/topics/Sands_Point%2C_NY">Sands Point</a>. 
Listing agent: Patricia Shroyer, Harding Real Estate Inc., 516-944-3870. 
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THE LOW: A cottage with two bedrooms and two bathrooms is on the market in <a href="/topics/Greenlawn%2C_NY">Greenlawn</a> for $279,000. 
Listing agent: <a href="/topics/Nancy_Kelly">Nancy Kelly</a> Fauser, Coach Realtors, 631-757-4000. &nbsp; 
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COLORFUL KITCHEN AWARD: Pink and blue cabinets and dollhouse charm earn this two-bedroom, two-bathroom Colonial in <a href="/topics/Cold_Spring_Harbor%2C_NY">Cold Spring Harbor</a> the prize. It's listed for $599,000. 
Listing agent: Peggy Moriarty, Daniel Gale <a href="/topics/Sotheby%27s">Sotheby's</a> International Realty, 631-692-6770. 
<hr width="45%"> 
&nbsp; 
&gt;&gt; PHOTOS: <a href="http://www.newsday.com/classifieds/real-estate/short-sale-homes-1.1887756" target="new&quot;">Short sale homes on LI</a> &gt;&gt; PHOTOS: <a href="http://www.newsday.com/classifieds/real-estate/if-you-want-a-house-for-315-000-1.1887820">If you want a house for $315,000</a> &gt;&gt; <a href="http://www.newsday.com/classifieds/real-estate/selling-tips-1.1649432">Selling tips: Expert advice to help you sell your home</a> &gt;&gt; <a href="http://www.newsday.com/classifieds/real-estate/buying-tips-1.1647973">Buying tips: Pointers to help you navigate the process </a> &gt;&gt; <a href="http://www.newsday.com/realestate">Find your dream home.</a> 
&nbsp; 
<hr width="45%">

LSMAIN21.WEB

Spring home buying guide for Long Island

Choosing the right neighborhood to suit your personal needs can be just as important as selecting the right house. 
Factors to examine include the amount of time you will need to commute to your job, the types of programs available in the local schools and how they would suit your children's needs and talents, any environmental or health issues in the area, and the variety of shopping and entertainment options nearby - just to name a few. 
Naturally, what is paramount to some buyers will be of little concern to others. But you need to examine many aspects of a neighborhood before moving into a home, since you don't want any surprises once you are all settled in and find yourself stuck in a1 particular area that isn't right for you. 
"Drive around an area and really check it out to see if it is right for you, then ask a lot of questions and do your due diligence," suggests <a href="/topics/Commack%2C_NY">Commack</a> real estate attorney Lita Smith-Mines. "You don't want to find out that the house behind you is in awful condition or that the neighborhood has bad flooding problems after you have moved in." &gt;&gt; <a href="http://www.newsday.com/classifieds/real-estate/selling-tips-1.1649432">Selling tips: Advice from real estate experts to help you sell your home</a> &gt;&gt; <a href="http://www.newsday.com/classifieds/real-estate/buying-tips-1.1647973">Buying tips: Experts offer pointers to help you navigate today's homebuying process </a> &gt;&gt; <a href="http://www.newsday.com/classifieds/real-estate/money-and-finance-1.1649652">Money: Learn more about mortgages, taxes and other real estate money matters</a> &gt;&gt; <a href="http://www.newsday.com/classifieds/real-estate/best-places-to-live-on-li-1.1656774">Best places to live on Long Island with...</a> 
Here are some neighborhood-related topics to examine, as well as how to go about getting the information you will need before buying a home: 
<img align="left" src="/polopoly_fs/1.1716131.1264080291!/image/3797501414.jpg" style="margin: 12px 12px 0pt 0pt;" alt="schoolgirl"> 
 SCHOOLS 
Meet with the principal of the school your children might be attending to find out what type of enrichment programs, sports, arts and other activities are offered. Touring the school is a good idea so you can get a look and a feel for the place, says Dee Dee Brix, licensed associate broker in the <a href="/topics/Glen_Head%2C_NY">Glen Head</a>-Old Brookville office of Daniel Gale <a href="/topics/Sotheby%27s">Sotheby's</a> International Realty. Also, check with the state Department of Education to find out its rankings. 
If your child has special needs, you will want to know what your options are for services that are required, says Frank Dell'Accio, president of <a href="/topics/Century_21">Century 21</a> AA Realty in <a href="/topics/Lindenhurst%2C_NY">Lindenhurst</a>. Also, if you are a working parent and need an after-school program, ask what local options are available and visit those facilities, says Joyce Coletti, licensed sales agent with Prudential <a href="/topics/Douglas_Elliman">Douglas Elliman</a> Real Estate in <a href="/topics/Long_Beach%2C_NY">Long Beach</a>. 
Ask if your child would be bused to school. This could become an issue if you need to leave early for work and find out that you will have to spend time in the morning driving your children, notes Sheryl Hecht, licensed agent in the <a href="/topics/Dix_Hills%2C_NY">Dix Hills</a> office of Prudential <a href="/topics/Douglas_Elliman">Douglas Elliman</a> Real Estate. 
<img align="left" src="/polopoly_fs/1.1716133.1264080551!/image/1241128939.jpg" style="margin: 12px 12px 0pt 0pt;" alt="Commute"> 
 THE COMMUTE 
If you take the <a href="/topics/Long_Island_Rail_Road">Long Island Rail Road</a> to work, see the local train station and find out how long your commute would be, says Bill Sim, <a href="/topics/Great_Neck%2C_NY">Great Neck</a>-based regional manager with RealEstate.com, an online realty company. Find out from the municipality about obtaining a parking permit or sticker and examine the availability of parking during the time that you'd be taking the train. Clock how long the drive is from the house to the station. 
If you will be driving to work, ask your Realtor about the traffic pattern in case there are peculiarities you are not aware of. Make the drive to work during the time you would normally commute to see what the drive feels like. 
<img align="left" src="/polopoly_fs/1.1716137.1264082299!/image/4127724552.jpg_gen/derivatives/display_600/4127724552.jpg" style="margin: 12px 12px 0pt 0pt;" alt="taxes"> &nbsp; 
TAXES 
Visit the records room of your local municipality to see what your taxes would be to confirm what the seller says, Dell'Accio says. Checking will allow you to find out if the homeowner may be receiving an exemption that you would not qualify for, he adds. &nbsp; 
<img align="left" src="/polopoly_fs/1.1716138.1264081613!/image/1735141364.jpg" style="margin: 12px 12px 0pt 0pt;" alt="schoolgirl"> 
&nbsp; NOISE 
If the home is close to a main road or to businesses, visit the area at different times of the day. A quiet block on the weekend could be very noisy at rush hour during the week or in the morning when businesses are first opening, Coletti says. The same is true for a home near the railroad tracks. Visit the home during peak hours when more trains will be passing by and blowing their whistles. 
Listen to noise from both inside and outside of the house, says Diane Saatchi, senior vice president with Saunders &amp; Associates in <a href="/topics/East_Hampton%2C_NY">East Hampton</a>. What seems quiet from the inside could be very loud from the backyard, she points out. 
The same is true if a residence is on the same block as a school, or borders one. Visit the house when school lets out to find out if your block is the local hangout or if there are parking problems that may be of concern. 
<img align="left" src="/polopoly_fs/1.1716147.1264083489!/image/2721781669.jpg" style="margin: 12px 12px 0pt 0pt;" alt="schoolgirl"> 
 OVERALL COMFORT LEVEL 
Walk around the neighborhood to see if you feel at home. 
"This is more emotional than anything else, just seeing if you feel good in a particular area," said Dee Dee Brix of Daniel Gale <a href="/topics/Sotheby%27s">Sotheby's</a> International Realty, Glen Head. 
Contact the local police precinct or sheriff's office to get information and any statistics collected on the crime rate in the area. 
<img align="left" src="/polopoly_fs/1.1716148.1264083729!/image/112677216.jpg" style="margin: 12px 12px 0pt 0pt;" alt="schoolgirl"> 
 ENVIRONMENTAL ISSUES 
If the home is near an industrial area, power plant or any other facility that presents environmental concerns such as toxic spills, there are Web sites and databases to turn to for information, Smith-Mines recommends. 
The site rtknet.org is the Right-to-Know Network and provides free access to databases and resources on the environment. It is operated by the Washington, D.C.-based OMB Watch, a nonprofit research and advocacy group. You can find information such as specific factories and their environmental effects on an area. 
Also, the <a href="/topics/Environmental_Protection_Agency">Environmental Protection Agency</a>'s site (epa.gov) contains local environmental information and data. Enter the ZIP code of the area where you are looking to buy to obtain information. 
<img align="left" src="/polopoly_fs/1.1716146.1264083204!/image/73096536.jpg" style="margin: 12px 12px 0pt 0pt;" alt="Commute"> 
 SHOPPING/ENTERTAINMENT 
Tour the local stores and restaurants. If you like to walk to stores or have someone in your family who is elderly and doesn't drive, see if it is doable to walk to your local downtown, Smith-Mines says. Also, ask local police how safe it is to walk to stores, particularly after sunset. 
Visit the local shops - from supermarkets to pharmacies to hardware stores - to see if they are the types of stores you would be likely to use and feel comfortable shopping in, Brix says. 
<img align="left" src="/polopoly_fs/1.1716218.1264084137!/image/2502795468.jpg" style="margin: 12px 12px 0pt 0pt;" alt="schoolgirl"> 
 HOUSES OF WORSHIP 
Ask your agent for information on the local churches, synagogues or mosques to find out about different options and if they are easily accessible from your home. Consider meeting with the local clergyman and perhaps attend a service to see if you will be comfortable with other members of the congregation, Saatchi says. At the same time, find out what kind of religious instruction is available for children if you plan to enroll them in a program. 
<img align="left" src="/polopoly_fs/1.1716273.1264084585!/image/1868009337.jpg" style="margin: 12px 12px 0pt 0pt;" alt="schoolgirl"> 
PARKS AND RECREATION 
If sports are important to you, visit the local parks. Find out if there are any fees to use tennis courts, a pool and other recreational facilities, Smith-Mines says. Inquire about any local sports teams or leagues you or your family could join through the parks department. 
Also, if the house you like is near the park, find out what the hours are and check with local police to see if there are incidents of crime or noise late at night, Smith-Mines says. 
<img align="left" src="/polopoly_fs/1.1716244.1264084364!/image/27575634.jpg" style="margin: 12px 12px 0pt 0pt;" alt="schoolgirl"> 
 MEDICAL FACILITIES 
If you or someone in your family has a medical condition that requires frequent doctor visits, go online to research what special services your hospital offers, Sim says. Also, meet with doctors in local practices and get recommendations from your current physicians. &gt;&gt; <a href="http://www.newsday.com/classifieds/real-estate/selling-tips-1.1649432">Selling tips: Advice from real estate experts to help you sell your home</a> &gt;&gt; <a href="http://www.newsday.com/classifieds/real-estate/buying-tips-1.1647973">Buying tips: Experts offer pointers to help you navigate today's homebuying process </a> &gt;&gt; <a href="http://www.newsday.com/classifieds/real-estate/money-and-finance-1.1649652">Money: Learn more about mortgages, taxes and other real estate money matters</a> &gt;&gt; <a href="http://www.newsday.com/classifieds/real-estate/best-places-to-live-on-li-1.1656774">Best places to live on Long Island with...</a>

Sizing up the neighborhood where you want to buy

Real Estate Top

A foreclosure’s below-market-value price can be tempting for the bargain hunter, but buying a distressed property can be more complicated and entail more risk than going the regular home-buying route. Mary Adams, managing partner at Century 21 American Homes in Babylon, explains four “trouble spots” for buyers to consider: 
1. Understand the foreclosure process "Plenty of times a purchaser will think that the process of purchasing a foreclosure is the same as a regular home buying purchase. It is not. Contracts will read differently. 'As is' condition, and pretty much whatever the condition [of the property] is during the process and up to closing is what [the bank is] accepting, which includes leaks, foundation damage, roof situations. As a Realtor, I strongly recommend that a purchaser use an attorney who is well versed in the foreclosure process and can understand the contract’s language. The contract is being prepared by an attorney who has the best interests of the bank at hand; there may be clauses and wording that could be detrimental to the purchaser that only a [qualified] attorney could read through and protect their client. &nbsp; 
2. Make sure permits are good "The purchaser should make sure that all the certificates of occupancy, permits and variances are in place for the home before purchasing, as well as know if there are any open violations that the town has issued against the property. This way a purchaser will know what they are purchasing. The bank takes no responsibility in obtaining these C of Os, permits, etc. Again, that is part of the 'as is' condition. The purchaser’s attorney can ask for them from the bank, but whatever the bank has it will forward. Other than that, it will be the purchaser’s responsibility." 
3. Inspect but don't expect "The purchaser should understand that he or she can have a home inspection, but they must realize that there is no negotiation on the results of the report. The inspection report should be for their own edification, but not to renegotiate with the bank. The bank is already taking a loss and if there are multiple offers on the property, the bank will just move on to the next offer; there will be no consideration." 
4. Be prepared to act fast "Upon the acceptance of an offer, the purchaser needs to move quickly. The bank will require that a contract be signed as soon as possible and with a deadline date. The same will be true for a closing date. Should the bank not receive contracts within the time frame they are requiring, the bank will just move on to the next offer, unless there is some unforseeable situation, such as the contracts were sent to wrong address, etc. The bank wants to move the property as soon as possible and will not be inclined to entertain the fact that the buyer or attorney is taking their time to execute the contract." 
&nbsp; 
AP photo &nbsp;

What you need to know about buying property in foreclosure

When Laura McKinney first saw the <a href="/topics/Hampton_Bays%2C_NY">Hampton Bays</a> home her husband was considering buying, she was leery. After all, the property had been advertised "as is," meaning it had to be purchased with all its flaws, which could be anything from termite damage to a neglected basement straight from a horror movie. 
Sure enough, she did find something truly frightening. 
It was an ancient bathroom. With a blue tub. And (shriek!) a blue vanity. 
"That was probably the scariest thing for me," she says. <a href="http://www.newsday.com/classifieds/real-estate/embracing-potential-1.1659065">PHOTOS: A look at some "as is" homes</a>. 
Finding the words "as is" in the description of a dwelling can be disquieting for someone searching the <a href="/topics/Real_Estate">real estate</a> market. Stories abound of unwary purchasers being stuck with a home with a crumbling roof or a moldy basement. But the phrase doesn't always imply a sinister discovery and may even reflect a situation that can be turned into an advantage. 
"A flexible buyer can get a bargain," says Barbara Tomko of Shawn Elliott Luxury Homes &amp; Estates. "Some investors actually look for this kind of thing." 
There are many innocuous reasons a home is sold "as is," she says. Examples include an estate bequeathed to children who live elsewhere and want a no-hassles sale. Or, an owner who knows his home has a leaky roof and reduces the price to compensate for post-sale repairs. Or, a bank that wants to get a property off its books with a short sale, a situation where the owner owes more than the property is worth. 
The century-old <a href="/topics/Shoreham%2C_NY">Shoreham</a> home being sold by Linda Stowell with Coach Realtors in <a href="/topics/Port_Jefferson%2C_NY">Port Jefferson</a>, for instance, has sweeping views of the <a href="/topics/Long_Island%2C_NY">Long Island</a> Sound, but its interior has been vandalized. A little handyman TLC could easily boost the home's value into a seven-figure category, she says. 
"It's a phenomenal location," she adds. 
Tomko's advice for those considering an "as is" home is to have the property thoroughly inspected and be prepared for repairs. Then, instead of a horror tale, you might have a happy ending. 
Two months after buying their home, Laura McKinney has a renovated bathroom and a much better attitude. Her advice to those considering an "as is" home? 
"Don't be afraid," she says. 
WHAT 'AS IS' MEANS 
AS IS A sale with no guarantee as to the home's condition. The seller will repair or improve nothing, which means you can get a terrific deal or a terrific headache. 
YES, BUT You can reduce this risk with a home inspection. Most inspections on <a href="/topics/Long_Island%2C_NY">Long Island</a> run around $500, although costs can rise with the home size and whether a termite inspection is included. 
AND, FINALLY A buyer can contractually detail the home's as is condition to protect against a catastrophe between the time of signing the contract and the time of closing. In other words, if the described leaky roof has caused more damage in that interim, that's OK since it's expected wear and tear. If the roof has fallen in, that's not, and the buyer can back out.

LSMAINWEB18

Potential and pitfalls of buying homes 'as is'

hoCOVas_is

In 2002, Chris Muldoon, 37, an account manager in the market data group at the <a href="/topics/NYSE">New York Stock Exchange</a>, and his wife, Denise, bought their Massapequa Park home, which, despite its proximity to a local elementary school, is considered part of the Farmingdale school district. 
The Farmingdale school district line cuts through the top half of Massapequa Park, making it so that homes north of the line go to Farmingdale schools while those south of it go to Massapequa schools. Similarly, there is a section of eastern Massapequa that is zoned for Amityville schools, and part of North Massapequa goes to the Plainedge school district. 
"The delineation cracks me up in terms of how they made the call," says Muldoon, who has two sons, Timothy, 6, and Conor, 2, with wife, Denise Muldoon, 37, a teacher at The Hagedorn Little Village School in Seaford. "It looks like they said, 'OK, right here will be the Farmingdale school district. No, wait ... we have too much, we have to stop back here.' It doesn't make sense, especially when there are logical, natural borders, like the Preserve, to separate school district from school district." 
<a href="http://www.newsday.com/long-island/education/edli-1.812001">&gt;&gt;MORE: EdLI, Newsday's education blog</a> 
Indeed, many Long Island school district lines, some of which were drawn hundreds of years ago, seem haphazard, separating large chunks or tiny segments of towns and directing families in those towns to neighboring districts. 
Liz Wallace, broker-owner of Century 21 Sherlock Homes in Rockville Centre, says the setup is a geographical oddity not easily understood by potential home buyers, particularly those coming to Long Island from other states or New York City. 
"A lot of times people from the city will say, 'I hear Rockville Centre is a great town, with pretty houses, and I want to buy here,'" says Wallace, "and we'll ask if they're open to different school districts, and they say, 'What does that mean?'" 
Well, what does it mean? In addition to children simply going to a different school district, depending upon what that school district is, homeowners may be paying lower school taxes - or more - and their property values may be higher or lower. Seth Forman, chief planner for the Long Island Regional Planning Board, says, "Some studies have shown that as much as 25 percent of [the value of] a house is caused by the school district it is in." 
Evaluating a district 
Sometimes the "perception" of a school district is substantiated by data; perhaps one school district has a much higher rate of graduation than another. Other times, although opinions can vary greatly when comparing school districts, the statistics may not differ much. 
"Pay careful attention," says Lawrence Levy, executive director of <a href="/topics/Hofstra_University">Hofstra University</a>'s National Center for Suburban Studies. "District lines are often irrational and don't reflect traditional community boundaries, and the differences between the school districts can be profound. But be sure you research the district line and don't buy into stereotypes about the quality of the districts. Do your homework on what the districts truly offer." 
Wallace says home buyers should be sure they know what school district their home is part of and contact that district directly if they have any questions. "There are questions that can always be answered by people in the school districts - what kinds of programs are available, how many students go to four-year colleges, etc.," she says. 
Prospective home buyers can also examine the New York State School Report Card ratings for each district, which are available on the Department of Education's Web site. 
Anne-Marie Lepore and her husband, Louis, will close on a house in Seaford, priced close to $500,000, after an exhaustive home search that lasted a few years. The house is in the Levittown school district. 
&gt;&gt;<a href="http://www.newsday.com/long-island/education/edli-1.812001">MORE: EdLI, Newsday's education blog</a> 
Lepore says she did her homework, narrowing down the school districts that she knew she wanted for her 2-year-old daughter, Samantha, and creating spreadsheets based on statistics she pulled from various sources, including Web sites like greatschools.net, which gives information for public, private and charter schools nationwide. 
"We had an idea of what locations we wanted, and then I tried to narrow the location by looking up information about the school districts," says Lepore, 37, a neuropsychologist whose husband, Louis, 41, is a product manager in the financial industry. "From there, we narrowed our search based on the towns that had the school districts we wanted. If we found we had a house we liked in a town with a different school district from the town, I would look at my spreadsheet to see if it was good based on the various criteria I was interested in." 
Reality check 
Joe Mugnai of Farmingdale has three children who have gone through the Half Hollow School District; his oldest two are in college, and his youngest is a seventh-grader. Mugnai, 47, who is in advertising sales, says that when he and his wife, Mary, 44, a therapeutic horseback riding instructor, purchased their current home, "We were aware of the school district and originally perceived it to be a big advantage. The school district was a major factor in our decision and a reason why we did not consider moving to some other towns on Long Island." 
Now, having lived the Farmingdale/Half Hollow Hills experience since 1998 and, before that, living for 12 years in Wantagh, where his kids attended Levittown schools, Mugnai says, "Depending on your school district, you could be paying higher taxes than a neighbor across the street in a different school district. I am not sure the level of school taxes has a direct correlation to the quality of the school district." He advises home buyers to make sure they choose districts that offer the programs important to them. 
&gt;&gt;<a href="http://www.newsday.com/long-island/education/complete-coverage-school-lunches-on-long-island-1.1252120">FOOD: Newsday's report on what schools are feeding LI students</a> 
Sports, in particular, was something that had been worrisome to Jeannemarie Goldberg, who bought her Massapequa Park home in 1996 with husband, Michael, 37, chief financial officer for Kliger-Weiss Infosystems in Port Washington. Goldberg, like Muldoon, is part of the Farmingdale School District. 
"We didn't know which town's sports activities to sign our kids up for," says Goldberg, 37, a graduate student studying education at <a href="/topics/Molloy_College">Molloy College</a>. "Will they have friends if we sign them up in Farmingdale or in Massapequa? We just recently put our son Ryan in Farmingdale sports, and now that he's going into the Farmingdale middle school in September, it's great because he'll know all the kids who are coming from the other elementary schools in the district." 
When it came to sports, Muldoon says he straddled the fence, so to speak. He signed up his son Timothy to play T-ball and soccer in Massapequa and football in Farmingdale. However, because he receives only Farmingdale-related information through his son's school, it was only when he saw a banner at the Massapequa railroad station that he found out about Massapequa's T-ball registration. 
It's these kinds of quirks that characterize living in one town, but going to the schools of another: You vote for elected officials in a school building your children don't attend; local papers may not cover school-related events your children participate in; or you may have privileges at libraries that are farther away than those of your municipality. 
&gt;&gt;<a href="http://longisland.newsday.com/newsday/newsData/#newsData-schools">DATA: A numbers breakdown of Long Island's schools</a> 
"They make school districts out to be such a big thing in keeping up with the Joneses, even the idea of what number you go to - oh, that's school district 22, that's 23," Muldoon adds. "If your kid is going to be smart, it's based more on how much the parents put into it." 
Why lines don't align 
Why are school district lines and municipal lines so erratic across Long Island? Seth Forman, chief planner for the Long Island Regional Planning Board, says the haphazardness is actually the result of two different mapping strategies. Forman says many of the townships - the state's primary municipal organization - were formed during the Colonial period and basically geographic entities, meaning "the area of a town would be related to the amount of time it might take to ride a horse in one day to get to town hall," he says. "Therefore, towns were based on geography, rather than population, in order to deliver basic services to everyone." 
On the other hand, Forman says, districts were population-driven, rather than geographically driven, and as more people migrated to Long Island, they took shape based on where population settled. "For most schools on Long Island, the main thing was they wanted independence, the power to organize themselves," Forman says. "They wanted home rule. Many people who settled on Long Island came from the city, where there was a centralized school system under the mayor, and they wanted more local control and the ability to fund school systems." - DINA SANTORELLI 
Looking at both sides 
What do you gain or lose by living in one town and in the school district of another? 
POSSIBLE PROS 
Lower school taxes 
Higher property values 
Perceived "better" school district 
Gaining the benefit of school district's libraries 
Feeling like you're part of two neighborhoods 
The chance to be involved with both communities' sports teams 
POSSIBLE CONS 
Higher school taxes 
Lower property values 
Perceived "worse" school district 
Not having access to municipality's libraries 
Feeling like a "stepchild" to the neighborhood you live in 
Confusion regarding sports teams 
&gt;&gt;<a href="http://www.newsday.com/long-island/education/edli-1.812001">MORE: EdLI, Newsday's education blog</a> &gt;&gt;<a href="http://longisland.newsday.com/newsday/newsData/#newsData-schools">DATA: A numbers breakdown of Long Island's schools</a> &gt;&gt;<a href="http://www.newsday.com/long-island/education/complete-coverage-school-lunches-on-long-island-1.1252120">FOOD: Newsday's report on what schools are feeding LI students</a>

re-schools1210

It pays to study school district geography

School

Long Island downtowns run the gamut. Some consist of busy stretches of small strip malls. Others offer marinas and waterfront dining. There also are those that have office buildings and apartments interspersed between mom-and-pop stores. 
And, there are those downtowns that have it all -- a variety of shops, restaurants, banks, movie theaters, performing arts centers, supermarkets and the <a href="/topics/Long_Island_Rail_Road">Long Island Rail Road</a>, all within walking distance. Also, because these are busy and active downtowns with less wide open spaces, they usually tend to feature smaller single-family homes that are more affordable. 
Here are six Long Island downtowns that <a href="/topics/Real_Estate">real estate</a> experts say are worth buying into. They give you the option to leave the car at home and just walk, and they also feature an assortment of housing stock: 
<h2> <a href="/topics/Huntington%2C_NY">Huntington</a> </h2> 
WHY IT'S WORTH BUYING IN 
If you want a downtown that boasts a performing arts theater, a park with free concerts, an independent movie theater, a more commercial movie theater, about 50 restaurants and 200 stores, <a href="/topics/Huntington%2C_NY">Huntington</a> is the area for you, says 17-year resident Cori Kaplan, associate broker with Coldwell Banker Residential Brokerage in <a href="/topics/Huntington%2C_NY">Huntington</a>. The area is also about one mile to beaches and the <a href="/topics/LIRR">LIRR</a>. "This downtown offers a little bit of everything and is always busy and active," Kaplan says. 
WHAT THE NUMBERS SHOW Sales in <a href="/topics/Huntington%2C_NY">Huntington</a> are off by 2.44 percent, whereas sales in <a href="/topics/Suffolk_County%2C_NY">Suffolk</a> County are off by 5 percent, according to Multiple Listing Service of Long Island data. 
WHAT'S ON THE MARKET About 65 percent of available residences are single-family houses, 10 percent are co-ops, 10 percent are condos, and the rest are rentals, she says. 
RECENT HOME SALES 
An updated three-bedroom, 1 1/2-bathroom Colonial on a quarter-acre sold in September for $560,000. Annual taxes of $8,400. A garden-style, one-bedroom, one-bathroom co-op with a separate dining room sold in September for $253,000, with a monthly maintenance fee of $600, which includes taxes. 
<h2> <a href="/topics/Great_Neck%2C_NY">Great Neck</a> </h2> 
WHY IT'S WORTH BUYING IN "This downtown is like a consolidated, mini <a href="/topics/Manhattan">Manhattan</a>," says Mona Holzman, branch manager for June Shapiro Realty Laffey Associates in <a href="/topics/Great_Neck%2C_NY">Great Neck</a>. There are more than 40 restaurants and nearly 125 stores, Holzman says. <a href="/topics/Downtown%2C_NY">Downtown</a> also is home to a <a href="/topics/LIRR">LIRR</a> station, several parks, a movie theater and a post office. 
WHAT THE NUMBERS SHOW 
In the second quarter, the average sales price in <a href="/topics/Great_Neck%2C_NY">Great Neck</a> - slightly more than $1 million -- was significantly higher than the average sales price in <a href="/topics/Nassau_County%2C_NY">Nassau</a> County -- $621,300. 
WHAT'S ON THE MARKET 
About 40 percent co-ops, 20 percent condos, 20 percent single-family homes, and 20 percent rentals. A new condo development is just breaking ground, and a new rental building is opening at the end of October. 
RECENT HOME SALES A four-room co-op with 1 1/2 bathrooms and a terrace sold for $350,000; maintenance is $1,089 a month. A renovated house on less than a quarter of an acre fetched $972,000. The home has four bedrooms, 2 1/2 bathrooms and taxes of $13,475. 
<h2> <a href="/topics/Long_Beach%2C_NY">Long Beach</a> </h2> 
WHY IT'S WORTH BUYING IN Downtowners can walk not only to the train station but to an ocean beach and boardwalk, a multiplex, about 25 restaurants and almost 100 stores of nearly every type, says Joyce Coletti, licensed sales agent with Prudential <a href="/topics/Douglas_Elliman">Douglas Elliman</a> in <a href="/topics/Long_Beach%2C_NY">Long Beach</a>. 
WHAT THE NUMBERS SHOW 
The number of homes sold in the second quarter of 2008 -- 50 -- is 13.6 percent higher than the first quarter -- 44 -- according to the Multiple Listing Service of Long Island. 
WHAT'S ON THE MARKET 
Everything -- single-family houses, two-family houses, town homes, condominiums, co-ops, seasonal rentals, and year-round rental apartments. 
RECENT HOME SALES A 1,100-square-foot, two-bedroom, one-bathroom single-family house sold in October for $405,000, with $6,000 in taxes. A 700-square-foot one-bedroom, one-bathroom condo with a terrace on the boardwalk facing the ocean sold in October for $605,000. The condo has $300 in monthly common charges; annual taxes are $12,000. 
<h2> <a href="/topics/Rockville_Centre%2C_NY">Rockville Centre</a> </h2> 
WHY IT'S WORTH BUYING IN "With our own electric and water companies, buses, taxis, houses of worship, railroad stop that is just 37 minutes to Manhattan, 63 restaurants and 50 stores of every kind imaginable, it is a pleasure to live in our downtown," says Doreen Teta, <a href="/topics/Real_Estate">real estate</a> agent in the <a href="/topics/Merrick%2C_NY">Merrick</a> office of Prudential <a href="/topics/Douglas_Elliman">Douglas Elliman</a> Real Estate, which services the community. The downtown area has a multiplex, numerous banks, and the post office. 
WHAT THE NUMBERS SHOW Sales in the second quarter of 2008 were 5.02 percent higher than a year ago, according to Multiple Listing Service of Long Island data. 
WHAT'S ON THE MARKET About 30 percent are condos, 20 percent are co-ops, 20 percent are rentals, and 30 percent are single-family houses. 
RECENT HOME SALES A 700- square-foot studio apartment co-op unit sold in August for $125,000, with a maintenance fee of $1,000. An 1848 three-bedroom, two-bathroom Colonial with $9,565 a year in taxes sold in June for $385,000. 
<h2> <a href="/topics/Babylon%2C_NY">Babylon</a> </h2> 
WHY IT'S WORTH BUYING IN 
"From restaurants to movies to an actual lake, downtown <a href="/topics/Babylon%2C_NY">Babylon</a> has a lot of activities all within an easy walking distance," says <a href="/topics/Mary_Adams">Mary Adams</a>, managing partner of <a href="/topics/Century_21">Century 21</a> American Homes in <a href="/topics/Babylon%2C_NY">Babylon</a>. "And, if a store does ever close, that space is usually taken over by another store in a very short period of time." There are about 50 stores and 15 restaurants, as well as a gazebo with free concerts, says <a href="/topics/Mary_Adams">Adams</a>, who has worked in the area for 22 years and lives downtown as well. The <a href="/topics/Babylon%2C_NY">Babylon</a> stop of the <a href="/topics/LIRR">LIRR</a> is less than a mile away. 
WHAT THE NUMBERS SHOW 
The average sales price in the second quarter, $614,200, was 4.88 percent higher than a year ago at the same time, according to Multiple Listing Service of Long Island data. <a href="/topics/Mary_Adams">Adams</a> says. 
WHAT'S ON THE MARKET About 92 percent of the market consists of single-family homes; 5 percent are town house condos and 3 percent are co-ops. 
RECENT HOME SALES 
A three-bedroom, two-bathroom Colonial with some updates on one-half acre sold in July for $521,000. It is 2,600 square feet; annual taxes are $9,200. A three-bedroom, one-bathroom updated Cape Cod sold in 
September for $427,000. It sits on about one-fifth of an acre and totals 1,800 square feet. Annual taxes are $6,200. 
<h2> <a href="/topics/East_Hampton%2C_NY">East Hampton</a> </h2> 
WHY IT'S WORTH BUYING IN 
This South Fork enclave offers year-round and summer visitors almost everything at their fingertips - from the <a href="/topics/LIRR">LIRR</a> and Jitney to movies and stores, says Diane Saatchi, senior vice president at the <a href="/topics/East_Hampton%2C_NY">East Hampton</a> office of the <a href="/topics/Corcoran_Group">Corcoran Group</a>. The ocean is about two miles away. There are 11 restaurants. There are 50 stores, both part of national chains and mom-and-pop varieties. "While prices are down here, as they are everywhere, a home in this area will still hold its own and the downtown will always be a popular place to buy," says Saatchi. 
WHAT THE NUMBERS SHOW There were four sales in the second quarter; last year at the same time, there was one. Nine of the 10 most expensive properties sold in <a href="/topics/East_Hampton%2C_NY">East Hampton</a> in 2008 were here. 
WHAT'S ON THE MARKET The housing stock is 99 percent year-round single-family homes and the rest are town house condos, she says. 
RECENT HOME SALES A 4,023- square-foot ranch-style house sold in July for $5.2 million, with three bedrooms and four bathrooms on 1.8 acres, with taxes of $13,166. A 2,600- square-foot barn-style home with four bedrooms and 4 1/2 bathrooms sold in July for $2.1 million, on almost half an acre with taxes of $12,138.

Long Island

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Long Island downtowns worth buying in

In today's economic climate, buyers may consider buying a foreclosed house to give them a good return on their investment. "Buyers are looking for a bank-owned property to get value for their dollars," says Todd Yovino, owner-broker of Island Advantage Realty in <a href="/topics/Huntington%2C_NY">Huntington</a>, which has about 500 such listings on <a href="/topics/Long_Island">Long Island</a>. 
But the drawback is almost invariably the condition of the house, points out Brian Dwyer, owner-broker of Metro Property Services in <a href="/topics/Huntington_Station%2C_NY">Huntington Station</a>, which also markets bank-owned properties. Some houses are stripped of appliances, some have been abandoned and some simply have not been maintained. 
"You are buying a nonworking house, and you're buying it blind," says Philip Donnellan, licensed associate broker with RE/MAX Innovations in <a href="/topics/Wantagh%2C_NY">Wantagh</a>. 
He explains that bank-owned houses sold at public auction are usually offered "as-is" and that buyers usually cannot inspect the property before the sale; bank-owned houses listed with an agent can usually be inspected by buyers. Banks won't negotiate the sales price but will take a lower offer if it's the best one. 
But these houses have "normally been closed up -- power off, pipes flushed," Donnellan adds. "They [can] sit literally for years." 
A November study by <a href="/topics/Harris_Interactive%2C_Inc.">Harris Interactive</a> for Trulia.com and Realtytrac.com found that negative sentiment around buying a foreclosure rose in the past seven months. In a previous nationwide survey conducted in April, 69 percent felt that there were negative aspects to buying a foreclosed home. In November, 80 percent of U.S. adults were concerned with "hidden costs, risky process, home losing value and personal connection with foreclosure." 
Despite the hesitancy and the <a href="/topics/Real_Estate">real estate</a> downturn, brokers say buyers are flooding the foreclosure market. And "today's buyer can do really well," says Yovino. There is no rule of thumb, although one source says properties have been known to be purchased for as much as 50 percent below market price.

News

ny-hocov5998950jan16-copy

How to score a good deal

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For those who've waited long enough for the housing market to bottom out and pull the trigger to buy, be prepared: Going from contract to closing is taking longer and, in the process, sometimes threatening to kill the deal. 
"The benchmark used to be 45 to 60 days, but sometimes now it can easily take three to four months to close," says Sabrina Teplin, a broker in the <a href="/topics/Cold_Spring_Harbor">Cold Spring Harbor</a> office of <a href="/topics/PRUDENTIAL">Prudential</a> <a href="/topics/Douglas_Elliman">Douglas Elliman</a> Real Estate. 
Some sales are falling apart because consumer confidence is keeping buyers from making offers and going to contract, says Teplin. Buyers know that the contract price - the price the buyer agrees to pay the seller - is often higher than it should be and can fall during the wait to sign on the dotted line. They also know that getting back a deposit isn't so easy once a contract is signed, she says. 
Why is it taking so long? "Banks are scrutinizing engineer reports, appraisals, the buyer's income, money down, credit scores, bank balances, and debt-to-credit ratios to make their final lending decision," says Jeffrey D'Amico, managing attorney at D'Amico &amp; Associates, P.L.L.C., in <a href="/topics/Mineola%2C_NY">Mineola</a>. "I'm also finding that since the economic downturn last fall, many potential deals don't even make it to contract. And, even those deals that do go to contract where the buyer was preapproved by the bank, [it] doesn't guarantee that they'll receive a mortgage." 
Here's what buyers and sellers need to know in this market about the contract price: 
NEGOTIATE, NEGOTIATE, NEGOTIATE! 
Now's the time for buyers to muscle in for the lowest possible contract price, not only because it's a buyer's market but because it's so difficult to get financing, says Jacqueline Harounian, a partner with Wisselman, Harounian &amp; Associates, P.C., in <a href="/topics/Great_Neck">Great Neck</a>. "I advise using any red flags from the engineer's report as leverage to lower the seller's price or to get other seller's concessions," she says. 
Real estate agents should run a preliminary title search well before a client goes to contract to see if the house has any problems, Teplin says. The agent also should look into public records for the certificate of occupancy history, too, she says. 
"I had the experience as a buyer's agent, with a seller who was more than willing to disclose that she and her husband were getting a divorce but did not want to disclose that the house was in pre-foreclosure," says Teplin. Although this information would have been disclosed eventually, by uncovering it early, Teplin's client had more leverage to negotiate before going to contract. "The house was listed high to compensate for the fact that the seller wanted to satisfy a loan that was out of whack with the home's market value," says Teplin. "The information helped my client at the bargaining table." 
Real estate lawyer <a href="/topics/Bill_Wallace">Bill Wallace</a>, of Favata &amp; <a href="/topics/Bill_Wallace">Wallace</a> in <a href="/topics/Garden_City">Garden City</a>, says a title search also may reveal an IRS lien, bank judgments, unfinished permits for bathrooms, decks, basements, pools, dormers and atrium windows. "All this unfinished business can delay the sale, but it can also help to lower the asking price before going to contract," says Wallace. 
SCRUTINIZE APPRAISALS 
Sellers should be proactive about appraisals before going to contract, says Wallace. "Because there is no legal obligation for a bank to redo an appraisal, I recommend that sellers invest in a pre-sale appraisal," he says. 
An appraisal costs about $250 to $350. "It helps the seller be realistic and price his home to sell from the get-go," Wallace says. And, he says, if the bank appraisal comes in low, the seller can arm the <a href="/topics/Real_Estate">real estate</a> agent and the lawyer with information to make a case to the bank. "If your pre-appraisal raises valid points, the bank will be more likely to take another look," he says. 
Sometimes, the pressure on the seller to lower the purchase price can continue even after the contract is signed. How? "An appraisal that comes in too low will most likely be denied by a bank and can trigger a renegotiation," says Harounian. "The seller must acknowledge the real market value or else risk losing the buyer - a situation that would be painful to many sellers in this market." 
Many sellers then agree on a reduced purchase price to get the loan approved and save the deal. 
ABOUT THOSE MORTGAGE CONTINGENCIES 
"Because buyers aren't coming out of the woodworks," says D'Amico, "sellers and their attorneys have to be realistic about contract prices and to be more lenient about accepting a broader range of mortgage contingencies." 
Mortgage contingencies are conditions that, if not met, give the buyer grounds to cancel the contract and have his down payment refunded. "A standard mortgage contingency in a contract states that if the appraisal doesn't support the mortgage, the buyer can get his deposit back," he says. "But a good buyer's attorney will also negotiate for a deposit return if the loan isn't approved due to a border credit score, loss of a job, disability or death." 
No matter how enticing a seller's price may be, "don't be tempted to agree to an unconditional contract," says Harounian. "Unconditional contracts are simply too risky for the buyer, given how hard it is to get a loan." 
For example, clauses in a contract such as "time of the essence," that allow the seller to keep the down payment if the buyer is unable to close by a certain date (usually 45 to 60 days), are no longer prevalent. "And, a buyer's lawyer who allows such a clause to remain in the contract," says Harounian, "could be negligent in protecting his client, akin to malpractice." 
CAN THE BUYER JUST CHANGE HIS MIND? 
If you're nervous and want out because the market has dipped while you wait for financing, that can be a problem. "Unfortunately, there's no mortgage contingency in a contract for cold feet," says D'Amico, "so you may not get back your deposit, depending on the contract terms." 
That's when your lawyer should negotiate for you, he says. He or she should try to interpret the contract's mortgage contingencies to find justifications for threatening a lawsuit for the return of the deposit. Even if the justification is weak, the lawyer might be able to get back 35 percent to 50 percent. 
For example, a lawyer could show that the buyers applied for the mortgage in good faith and in a timely way, and, if they still haven't received a mortgage, they may have the right to back out of the contract and get back their deposit. 
Or, you could sue for the refund of the contract deposit and potentially tie up the seller's property in litigation, he says. If the contract terms won't tie up the property, then D'Amico says, "it becomes an economic decision on the part of the seller. He has to ask himself, 'Does the cost of litigation justify fighting to keep the deposit?' A $15,000 deposit wouldn't be worth the attorney's fees to litigate, but a $75,000 deposit sure would." Is this legal? Yes, D'Amico says, as long as the lawyer is interpreting the contract in good faith - meaning he or she has a legitimate justification for the suit.

ny-lsmain2912792887may27

Contract and bargaining price wars

Few <a href="/topics/Real_Estate">real estate</a> terms carry as much negative and emotional baggage as "foreclosure" - a word that inevitably signals some family's financial distress that has resulted in an eviction or abandonment of their home. In many cases, homeowners with little or no equity in a house find themselves falling behind in their mortgage payments for a home now worth less than the money borrowed to purchase it. For some, the ruined credit and loss of a home that are part of the foreclosure experience are nonetheless preferable to the pressure to keep up those now impossible payments. 
The depressed housing market has seen some parts of the country - such as Stockton, <a href="/topics/California">Calif</a>., and <a href="/topics/Detroit">Detroit</a> - swamped with bank-owned homes for sale. 
Here on <a href="/topics/Long_Island%2C_NY">Long Island</a>, in both <a href="/topics/Nassau_County%2C_NY">Nassau</a> and <a href="/topics/Suffolk_County%2C_NY">Suffolk</a> counties, there's been a gradual but nonetheless substantial increase in the number of foreclosed homes for sale. For a number of years until the middle of 2006, about 25 homes per week were foreclosed and added to the inventory as bank-owned homes for sale in each county. Those numbers have doubled in the past two years to about 50 per week per county, and, says Pat Ammirati, president of the <a href="/topics/Long_Island%2C_NY">Long Island</a> Real Estate Report, the numbers have not leveled off. 
But while the word "foreclosure" carries ominous connotations for most, it also is misunderstood by those who think a foreclosure represents a threat to home values in their neighborhood, or by those who think buying a foreclosure represents a bargain. Those who imagine that a foreclosure offers an opportunity for a fast purchase are likely to be surprised, as well. 
Here is a look at some of the myths of foreclosure, according to Danielle Babb, co-author of "Finding Foreclosures" (Entrepreneur Press, $21.95): 
MYTH A bank-owned home is an opportunity to buy a home for pennies on the dollar. 
REALITY Although banks don't want to be landlords, they are under a great deal of scrutiny following the subprime loan debacle, a level of scrutiny that won't permit them to give away homes at bargain prices. Like any other business, a bank wants a good price for the sale of any asset. 
MYTH A foreclosed home for sale in my neighborhood represents a threat to home values in the area. 
REALITY If the bank is trying to get full value for the property, and assuming the area is not overwhelmed with foreclosed homes for sale, the property for sale is not much different from any other kind of sale. 
MYTH The bank is not going to take care of the property. 
REALITY The most common complaint is that grass isn't cut. But that can happen even when the home is occupied by an eccentric or reclusive neighbor. And while it's true that banks are not in a position to do a great deal in the way of maintenance or improvement, the home does represent an opportunity for an investor. If high grass is a problem, call town hall. If it continues to be a problem, take turns with neighbors cutting the front yard. In areas where high foreclosure rates have offered opportunities to squatters and vandals to steal copper piping, neighbors are encouraged to call the police. So far, these extremes have not been problems on <a href="/topics/Long_Island%2C_NY">Long Island</a>, according to Adam Waldman of Re/Max Best in <a href="/topics/West_Babylon%2C_NY">West Babylon</a>, whose agency handles a number of bank-owned homes among its listings. 
MYTH A foreclosed home offers a quick sale because banks don't want to own homes. 
REALITY Although banks don't want to own homes, most banks were not prepared to have so much inventory on their books, and it's taking them a long time to act, even on offers for the full asking price. Some full-price offers can take three to six months to wend their way through a bank's bureaucracy in search of a decision. 
MYTH You can negotiate a deal with a bank just like any other home purchase. 
REALITY Bank-owned homes almost always carry the telltale phrase "sold as is." That's their way of saying, "Don't think you can negotiate your way to having the deck repaired or the roofing replaced before you go to closing." A private homeowner may be open to such negotiation, but not a bank. The most you can expect is a credit on the sale price that will allow the buyer to spend money repairing the property after the sale. 
MYTH Foreclosed homes offer a great opportunity for first-time buyers. 
REALITY Since foreclosure sales take much longer because of the banks' bureaucracies and backlogs of inventory, and since the prices are at best about 5 percent lower than the rest of the market, a figure more than offset by the work and improvements needed, a great many first-time buyers become quite frustrated trying to buy a foreclosed home. 
Foreclosed homes are more attractive to investors and handymen who can afford to wait while the bank moves at its own speed. They are attractive to buyers who have no deadline to move in. 
If foreclosed homes are not such a great bargain in this depressed market, what is a bargain? Experts like Babb say the best deals are in short sales - sales in which the homeowner is having trouble making payments but not yet in foreclosure. In a short sale, both the bank and the homeowner have agreed to take a negotiated lower price for the sale of the home to avoid foreclosure. 
Short sales require that the bank be willing to accept less than the amount called for in the mortgage, so this means the bank is a third party to negotiations that in other sales involve only the buyer and seller.

ny-re1210

Foreclosure myths and realities

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So it's officially a buyers' market, and you're all geared up to find a home that makes your heart sing. 
 But, despite advantages in the buyers' favor, at least for now - prices that still seem to be falling, low interest rates and lots of houses to choose from - smart house-hunters need to be wary of the pitfalls of buying. 
 And take care. 
 We spoke to experts - <a href="/topics/Real_Estate">real estate</a> agents, mortgage brokers, bankers and attorneys - for their advice to buyers. 
 1. Make a list 
 If you don't figure out just what you want, you might just buy the wrong house. 
 "I always say this to all the young buyers: They have to decide where they want to live and what they're looking for in a home," says Michelle Cohen, associate broker and executive vice president for <a href="/topics/Century_21">Century 21</a> Laffey Associates in <a href="/topics/Greenvale%2C_NY">Greenvale</a>. 
 "Does it have the proximity to your job? Especially now, with the cost of transportation so high, it might make more sense to look for a house close to your place of business." 
 You also have to look at the cost of owning a home - again, with fuel costs high, how much will heating it run you? If it has a large piece of property, keeping it up costs either time (if you do it) or money (if others do), she says. How is the school district? Can you afford the taxes? (They will only go up.) 
 "You should sit down and write a list of what you're looking for in a home, and really do your homework," Cohen says. Even a house that seems like a bargain may not be one if it doesn't meet your needs. 
 2. Check it out 
 Avoid a nasty financial surprise that could ruin a deal. 
 "I think education is extremely important right now," says Jeff Barker, <a href="/topics/Bank_of_America">Bank of America</a>'s regional executive for consumer banking. "The buyer should fully understand what will be asked of him or her when they are ready to apply for the mortgage." 
 It's important to check your credit reports to see if you can fix any mistakes, he says. And be sure to figure out how much house you can afford - most lenders, including <a href="/topics/Bank_of_America">Bank of America</a>, have online tables that will help you figure it out. 
 You'll need to get your financial records in order - proof of income, tax records, a solid source for a down payment and the like, he says. Then, get prequalified so you can show a seller you're a serious buyer who's ready to go. 
 Barker says that, even though lenders may be taking more care than in the past, "it's not a difficult process for people who can afford a mortgage." 
 3. First, hire a lawyer 
 Fools act as their own attorneys in <a href="/topics/Real_Estate">real estate</a>, too - you could get burned. Badly. 
 You might think you can wait until the closing to hire an attorney - but things can go wrong, so it's a good idea "from the get-go" to find a good lawyer, says Elysia Prinz, manager of Coach Realtors' <a href="/topics/Northport%2C_NY">Northport</a> office. 
 And they're surprisingly affordable - most attorneys charge a flat fee for the entire <a href="/topics/Real_Estate">real estate</a> transaction, and you'll probably pay somewhere between $1,000 and $1,500 locally, experts say. 
 It's a good idea to have your lawyer look over any legal document before you sign it - no matter how boilerplate it might look, including an agreement with a broker, says David Sappé, a <a href="/topics/Huntington%2C_NY">Huntington</a> attorney with a practice concentrating in <a href="/topics/Real_Estate">real estate</a> law. "As soon as they're out in the market and serious about buying or selling, they should have an attorney - from that first binder handshake," he says. "There's no premium that you have to pay for lining up an attorney before or after." If you don't have recommendations, he says, you can check with the state or local bar association. 
 Look at it this way, he says: When else would you get involved in "a half-million-dollar transaction" without protecting yourself legally? 
 4. Working for you 
 Not all <a href="/topics/Real_Estate">real estate</a> brokers are alike - and remember, most of them are representing the homeowner. Not you. 
 Ask friends, neighbors and relatives for recommendations, and find an experienced person who makes you feel comfortable. 
 Especially if you're a first-time buyer, you might want to consider hiring a buyers' broker to represent your interests. (It won't cost you any more - their fees are split with the seller's agent, as in any <a href="/topics/Real_Estate">real estate</a> transaction.) 
 Even brokers who take you around are working for the seller (which is their legal obligation), not for you, unless they're specifically a buyers' broker - a concept more <a href="/topics/Common_%28musician%29">common</a> elsewhere in the country, but catching on here. 
 A buyers' broker "might be able to do a little better job negotiating," says Prinz of Coach Realtors. Plus, she adds, a broker representing a seller is not required to reveal things or find things out about the property or neighborhood that might be negative - for example, if a local planning committee is considering an action that would mean "that lovely piece of land that you've been looking at, that greenbelt, is going to be an industrial park," she says. 
 A buyers' broker, on the other hand, should do that kind of research for you. 
 5. Have a cushion 
 Don't use a fly-by-night broker (or bank) to finance your mortgage, or you could blow the deal. 
 No one who's followed the news in recent months about failing mortgage companies - and even banks - should take the prospect of financing a house lightly. 
 Make sure you deal with a reputable mortgage broker or a bank, says Robert Bram, senior loan officer for Preferred Empire Mortgage Co. of <a href="/topics/Melville%2C_NY">Melville</a>, an affiliate of Prudential <a href="/topics/Douglas_Elliman">Douglas Elliman</a> Real Estate. And, he says, it's important that you have a bit of a cushion when you apply for a mortgage in case the situation changes. "The market is changing," Bram says. "There could be some fluctuations in the interest rate." You shouldn't be "down to your last dime." 
 If the interest rate suddenly goes up half a point, you shouldn't be so tight that you can no longer afford the mortgage - not to mention having a fund for repairs and emergencies. 
 6. Get good advice 
 Listen to the experts, not your Aunt Bertha - it's likely she doesn't know what she's talking about. 
 You could drive yourself crazy trying to sort through all the doom and gloom in the news as well as "advice" from people who may have your best interests at heart but don't know what they're talking about. 
 Talking to relatives who don't own houses but feel free to give advice is "a sure deal killer," says Michael Daly, principal broker for Beach Properties of the Hamptons in <a href="/topics/North_Haven%2C_NY">North Haven</a> and author of <a href="/topics/The_Hamptons%2C_NY">The Hamptons</a> Real Estate Blog (thehamp tons.<a href="/topics/Wordpress">wordpress.com</a>). 
 And "telling your cousin you're about to buy a house and having him scream, 'You're crazy!'" doesn't help either, he says. 
 You've put together a team of professionals - a broker, a financial adviser, a real estate attorney - so listen to them. That's what you're paying for. 
 7. Don't skip the report 
 Don't buy a lemon (but sometimes, a lemon-in-waiting can help you make lemonade). 
 When we're talking about professionals, by no means skip that all-important engineering report. 
 The seller should handle serious issues, such as removing an underground oil tank or fixing any serious problems with plumbing or electrical systems - and these can be negotiating points. If the house has serious issues and the seller doesn't want to address them, the best bet might be to walk away, experts say. 
 But something that comes up on the report could help you bargain for a lower price - that is, if it's not something vitally important that makes buying the house questionable. 
 On the other hand, you're not buying perfection. On a used house, Sappé says, "wear and tear" - say, some outside boards that have rotted, or painting that needs to be done, or the like - are not the seller's responsibility to fix. 
 An engineering report can sometimes kill a deal, says Joan Silverman, a Northport attorney whose practice concentrates on real estate. 
 "Buyers kind of want it perfect, and sellers feel like they don't want to give it away," she says - adding that both buyers and sellers need to be reasonable and compromise. 
 8. It's not a fire sale 
 Don't insult the sellers - if you do, you might never have another chance at their house. 
 A lowball offer might work - but it might bring only hostility. Let your agent guide you about a negotiating price. 
 <a href="/topics/Rick_Hoffman">Rick Hoffman</a>, senior regional vice president of the East End for The <a href="/topics/Corcoran_Group">Corcoran Group</a>, says, "Don't go out there and think that there's a fire sale going on, especially on the <a href="/topics/East_%28designer%29">East</a> End. There are bargains to be had, but it's not a fire sale, and if a buyer comes in and makes an unreasonably low offer, you're going to lose because you'll insult the seller, and they won't negotiate with you. 
 "Everyone thinks that their house is special," <a href="/topics/Rick_Hoffman">Hoffman</a> says. "People are emotionally attached to their homes, they have memories, and they've raised their family there. And sometimes, that's not evident to a buyer. People need to remember that. Just be sensitive to it." 
 It's important to justify your offer, he says. "You can say, 'I've looked at the properties around, I love your home, but it needs this, this and this.' If you can maintain an amiable relationship between the parties, that helps facilitate the transaction, and that's what a good broker does." 
 9. The short and long 
 Don't try to buy a short sale - unless you don't care about the time. 
 Short sales, in which a lender will agree to accept less than what the homeowner owes and thus avoid foreclosure, are becoming more common on <a href="/topics/Long_Island%2C_NY">Long Island</a>, says Philip Tesoriero of Gelip Inc. Consulting of Amity Harbor, a broker and consultant who teaches seminars about short sales for Realtors around the country. 
 But they can take much longer than the typical real estate transaction. "In this current market, you have to be prepared to be patient," Tesoriero says. Whereas, a regular house sale could close within 30 days, a short sale could easily take eight to 12 weeks, he says. 
 Are they worth waiting for? 
 "I think they could be excellent deals for a person who could be a do-it-yourselfer or a contractor," he says. But since these houses were owned by homeowners in financial trouble, he says, don't underestimate necessary repairs - which could make what seems like a good deal a poor deal. Short sales, he says, "could run into a lot of money for people."

ny-lsmain5800321aug15

9 ways to avoid home-buying pitfalls

When looking for a home, most house hunters know to ask about the age of the roof or the boiler, or whether the schools have a good reputation. Many hire inspectors to check the infrastructure of the building itself. 
But do the prospective buyers know to ask: If there is an abandoned underground fuel tank or if a chemical spill a block away has seeped into the basement? 
Whether that peacefully wooded area behind the home that buffers the backyard from a busy road is ac-tually zoned for commercial use? 
Or if the home is in a high water-table area and will flood whenever there is heavy rain? 
The answers to these questions could prove costly. So it is worthwhile for prospective buyers to investi-gate and check these threats off their list of possible problems. There are ways to see if disasters are lurking beyond the walls. 
1. HIGH WATER TABLE: In October 2005, heavy rains flooded basements in the Lake<a href="/topics/Lake_Ronkonkoma%2C_NY">Lake Ronkonkoma</a>05, heavy rains flooded basements in the Lake <a href="/topics/Ronkonkoma%2C_NY">Ronkonkoma</a> area, just north of the <a href="/topics/Long_Island_Expressway%2C_NY">Long Island Expressway</a> around Terry Road. Today, homeowners are shocked that they still are pumping their basements almost two years later. 
Federal, state and local government officials, including both <a href="/topics/New_York%2C_NY">New York</a> senators - <a href="/topics/U.S._Democratic_Party">Democrats</a> <a href="/topics/Hillary_Rodham_Clinton">Hillary Clinton</a> and <a href="/topics/Charles_Schumer">Charles Schumer</a> - are coordinating efforts to help alleviate the problem, but the costs to the homeowners are high. Some, overwhelmed with high electric bills to run the pumps and the persistence of mold growing in areas that remained wet, went into foreclosure after failing to sell their houses. Others are toughing it out, but tell stories of homes that have overflowing cesspools, swampy yards and expensive pumping systems running continuously. 
Cathy Wirtenson, 47, a registered nurse, is one such resident. She bought her house, which had been newly constructed, in December 2005. While it was being built, there was water in the basement. The builder put in a trench drainage system around the house called a French drain, but the cost in electric bills - and the worry if the electricity goes out - are constant. 
"Who would think this could happen in the middle of the Island?" Wirtenson asks of her Lake Hills neigh-borhood in <a href="/topics/Ronkonkoma%2C_NY">Ronkonkoma</a>. She wishes now she had investigated more with nearby residents. "You have to speak to neighbors." 
The other way to check is to see if the house sits in a high water table area. Don't be fooled by its prox-imity to water, say experts. Water table records usually can be found in town planning or building departments. 
Basements that have been wet for long periods, even if dry at the moment, can hold mold, an environ-mental hazard. "Mold is the biggest bugaboo," says John Zito, a home inspector for Deepdale-Atlantic Home Inspection company in <a href="/topics/Southampton%2C_NY">Southampton</a> and <a href="/topics/Queens%2C_NY">Queens</a>. "It's far more important than asbestos." 
2. CONTAMINATION NEARBY: Science often points to outside environmental influences when it comes to disease, but most contamination that can affect a family in a home is hard to detect visually. Experts say bad things that may have happened 50 years ago can leave an environmental footprint today. 
Ben Cesare, managing director for Environmental Data Resources Inc., a national company based in Milford, Conn., said his company keeps 22 million records on potential environmental hazards, mostly gov-ernmental records, in data-bases. The company sells its reports about the health condition of the property's surroundings to both home inspectors and the general public. Most of the information is available through government sources, said Cesare, such as with the Department of Evironmental Conservation and federal superfund site Web sites. 
The report by Environmental Data Resources includes a 300-foot radius around the home and its prox-imity to landfills, Superfund sites, manufacturing gas plants and known leaking storage tanks or other haz-ardous waste sites. A second report included goes beyond the 300 feet to other hazards. 
For example, trichloroethylene, commonly called TCE and used in cleaning solvents, is hazardous to humans in vapor form, causing organ damage. A TCE spill from a nearby dry cleaner or other industrial site can travel underground and seep into basements of homes. 
"You may say, 'I'm on city water,' but you should still care because of vapor intrusions," says Cesare. "It can go into basements like radon would. You can't see it or smell it." 
The company finds about half of 1 percent of its customers come up with something that would require immediate action, but it's all about peace of mind, he says. "If there is a nearby superfund site, I'd want to know," Cesare says. 
John Zito, also a home inspector with Deepdale-Atlantic Home Inspections, uses the Environmental Data Resources reports, calling them an important aid, but says only about one of 20 home buyers opts to buy them (cost $150). He says he wishes more homeowners would use them. "I'm sold on it," he says. "I really believe in it. There's a lot of hidden things you would never think of." 
3. WHAT'S THAT NEXT DOOR? Say there's an undeveloped piece of land behind the house that serves as a wooded buffer from the busy street on the other side. Six months after you move in, what's to prevent bulldozers from clearing the land and a sign going up in front of the property announcing a new big box store? 
"Do not accept anyone's word" on buffer zones or unoccupied parcels "anywhere at anytime," <a href="/topics/Smithtown%2C_NY">Smithtown</a> chief planner Frank DeRubeis cautions buyers. Even if the land is zoned residential, it can be rezoned by the town board. "Talk to the planning officer or building officer" of the town, says DeRubeis. "Ask, 'What is the chance of a rezoning?' ... There's really no such thing as something in perpetuity." 
DeRubeis says that the location of the land matters, too. If it is tucked inside a residential neighborhood, it will have different zoning options than a piece of land that is zoned residential but abuts a major road. "You need to ask, 'What is the likelihood of change?'" 
4. SEWERS, UTILITY LINES, ETC.: When Brad and Janine Oblaj bought their <a href="/topics/West_Islip%2C_NY">West Islip</a> home in Septem-ber 2006, they say they assumed the house was attached to the sewers. However, when workers started digging out the backyard to lay down a new patio, they discovered to the contrary. 
"They hit one of the drywells, which tipped us off," says Brad Oblaj. The house was not hooked up to the sewers available but to an active cesspool system. It cost the Oblajs, they say, $2,500 for the hook-up and delayed the patio installation for weeks. 
Brad Oblaj says that when he went to the sewer district to fill out the paperwork, he was told it was not unusual that someone would buy a home assuming they were hooked up. "The guy said that 'Someone like you comes down here every day with the same story,'" he says. 
<a href="/topics/Smithtown%2C_NY">Smithtown</a> chief planner Frank DeRubeis says to check the property's tax statement to see if sewer pipes are hooked up to the house and, if not, whether it can be hooked up. 
The same for utilities, he says. "You may have cable in the area, but to connect [a main line] just a few feet can be breathtakingly expensive." 
5. EASEMENTS: A town's planning department should be able to tell what government and private entities have taken over a portion of the property for an easement, such as drainage pipes or electrical and gas lines. This is important to know because, if something goes wrong, such as a pipe burst or gas line leak, you could be held responsible for repair costs. 
And knowing where gas lines are, for example, is critical if you plan to dig in the yard. Also, ask if you are allowed to put a structure, such as a shed, on the property where the easement is located. 
"These things should be on the survey," says Frank DeRubeis, chief planner for the Town of <a href="/topics/Smithtown%2C_NY">Smithtown</a>, but sometimes they aren't. "You need to look at the property records filed with the county. Don't accept the little description given by the [real estate or seller]." 
Spending a little time before a purchase can potentially save a lot of time and money down the line, says John Zito, home inspector and part-owner of Deepdale-Atlantic Home Inspections. "I've heard a million horror stories," he says. "There's a lot of hidden things you would never think of."

BZSPDN

Buyer beware

Flood home

For <a href="/topics/Long_Island">Long Island</a> homeowners, the past two years have provided a steady stream of bad news. Regional median home prices peaked in the summer of 2007 and have fallen more than 20 percent since, stripping wealth and leaving many owing more on their mortgage than their home is worth. 
But the historic plunge has an upside, real estate experts say. Potential first-time home buyers - some of whom had been priced out of expensive homes in <a href="/topics/Nassau">Nassau</a> and <a href="/topics/Suffolk">Suffolk</a> counties - may now have a chance to crack the <a href="/topics/Long_Island%2C_NY">Long Island</a> housing market with the help of lower prices, attractive mortgage rates and their own government bailout. 
Here are six things they need to know. 
Price, rates make market affordable 
"I think its an excellent time for a first-time buyer to get into the market," says Marianne Garvin, president of the Community Development Corp. of Long Island, a nonprofit with offices in <a href="/topics/Centereach%2C_NY">Centereach</a> and <a href="/topics/Freeport">Freeport</a> that provides counseling for first-timers. "There are lots of options out there for affordability that even a year or two years ago didn't exist." 
In February, the median closing price for a home in <a href="/topics/Nassau_County%2C_NY">Nassau</a> County was $400,000. That's down from $458,800 the same month last year and $502,500 at the peak in August 2007. In <a href="/topics/Suffolk_County%2C_NY">Suffolk</a> County, the median closing price for a home was $309,500 in February, down from $359,500 in February 2008 and $420,000 from its peak in June 2007. 
Homes in neighborhoods that may once have been unattainable financially have fallen into many first-timers' price ranges, real estate experts say. On top of depressed prices, mortgage rates for qualified buyers also have fallen to historic levels. The national average for a 30-year fixed-rate mortgage on March 19 was 5.29 percent, according to the Web site <a href="/topics/Bankrate_Inc">Bankrate</a>.com, which follows mortgage rates through surveys. That's driven up business for some real estate professionals. "I'm seeing more activity this year," says Dorothy Aschkar, a Realtor at Fairway Homes in <a href="/topics/Queens_Village%2C_NY">Queens Village</a>, which has listings in Nassau and Suffolk, who says 80 percent of her clients are first-time home buyers. "The need is there, and they're taking a step forward to enter the market." 
File for new tax credit 
On top of low prices and rates, there's one more carrot out there for first-time home buyers: A tax credit approved as part of the <a href="/topics/Economic_Stimulus">economic stimulus</a> package signed into law last month is meant to boost housing markets by giving first-timers up to $8,000 to cover closing costs or a portion of a down payment. Singles making $75,000 or less, or couples making $150,000 or less (figures are modified adjusted gross incomes), qualify for the government payout if they buy a home on or after Jan. 1 and before Dec. 1. 
The credit can be claimed on home buyers' 2008 or 2009 tax returns. 
For those first-timers who bought last year, there's still help: a $7,500 tax credit that must be repaid - essentially an interest-free government loan - is available. 
The law defines a first-time home buyer as someone who has not owned a principal residence in the past three years. 
Get preapproved, then browse 
Getting preapproved for a mortgage to set an affordable price range before looking at homes should be any first-time home buyer's first step into the housing market, real estate experts agree. Be prepared to show a potential lender monthly income statements, recent tax returns and information regarding any other debt, such as credit cards or student loans, they say. 
But here's the catch: While today's mortgage rates and real estate prices may make for a more attractive market, getting that approval may be difficult. Lending standards have tightened across a financial industry imperiled by bad loans. People have to reset their expectations according to the guidelines, says Bob Moulton, president of Americana Mortgage Group, a brokerage firm in <a href="/topics/Manhasset%2C_NY">Manhasset</a>. Prospective first-time home buyers expecting to get approved for a loan should have a credit score of 720 or higher, Moulton says. 
Larger down payments also can be more important in this economy, says Kirk Kordeleski, president and chief executive of <a href="/topics/Bethpage_State_Park%2C_NY">Bethpage</a> Federal Credit Union. In the past, Kordeleski says, lenders who felt protected by high rates of housing appreciation placed less value on credit history and down payments. "Now we've gone back to a traditional marketplace, where you have to have money to put down," Kordeleski says. "If you have that 10- to 20 percent, getting approved is not that difficult. 
Explore other borrowing options 
Lenders demanding pricey down payments, however, aren't the only options for first-timers. <a href="/topics/Federal_Housing_Administration">Federal Housing Administration</a> loans are available with down payments as low as 3.5 percent and financed closing costs. Qualified borrowers must have reasonable credit - although a score of 700-plus may not be necessary - and demonstrate an ability to make payments, says Lynn Law, director of education and counseling at the <a href="/topics/Hauppauge%2C_NY">Hauppauge</a>-based Long Island Housing Partnership Inc., another nonprofit counseling agency. 
The State of <a href="/topics/New_York">New York</a> Mortgage Agency offers up to 100 percent financing, plus assistance with closing costs, for eligible first-timers. George Leocata, a senior vice president with the agency, suggests obtaining a preapproval from a participating lender before shopping for a home. Income and home-price guidelines apply. Find eligibility requirements and those participating lenders at nyhomes.org/index.aspx?page=271. 
Also, don't overlook local programs offering down payment assistance, like those in Nassau and Suffolk counties and the Town of <a href="/topics/Babylon%2C_NY">Babylon</a>. (Look for contact information in the box above.) 
Counseling help is out there 
Not only is education available for potential home buyers at nonprofits such as the Community Development Corp. or the Housing Partnership, but most services are offered free of charge. Services range from brokering loans to one-on-one credit counseling to group classes covering basics of purchasing, financing and maintaining a home. 
Counseling is available not just for prospective buyers who are mortgage-ready, but also for those who need time to save for a down payment, or others whose credit problems prevent them from qualifying for a loan and entering the housing market immediately. 
Also, buyers don't need counselors for everything. For example, the Multiple Listing Service of Long Island's Web site, mlsli.com, is helpful for regional home listings, statistics, neighborhood information and finding a realtor search. 
Is now the time? 
Of course, no one wants to buy a home only to have its value depreciate. So one question still is keeping many on the sidelines, even in this buyer's market, real estate experts say. 
Where is the bottom? The answer: No one knows for sure, but economists estimate. 
Pearl Kamer, chief economist for the nonprofit business group the Long Island Association, says she expects Long Island's prices to drop about 10 percent from today's values before settling sometime early next year. Action taken by the government to buy assets and push down mortgage rates could mean the market would bottom out quicker, Kamer says, but not much quicker. "Late this year, early next year is the most optimistic scenario I can imagine," says Kamer. "The question is, can you wait, or do you need a home now? It's an individual household thing." 
Where to find help 
• The Long Island Housing Partnership administers down payment assistance programs for Nassau County and the Town of Babylon. Call 631-435-4710 for more information and to put your name on a list to receive applications when they become available. An online application and eligibility guidelines for Babylon's new program, offering a $15,000 match for middle-income families, are available at townofbabylon.com/whatsnew.cfm?id=286. 
• For details about a Suffolk County down payment assistance program and to get on a list to receive that application when it's available, call 631-853-5705. 
• Community Development Corporation of Long Island, a nonprofit housing agency, offers counseling for first-timers and information about financial assistance that may be available. Visit cdcli.org for more information. To register for a first-time home buyer orientation session held monthly in Nassau and Suffolk, call 631-471-1215 and dial ext. 144, or e-mail home buyer@cdcli.org. Provide your full name, mailing address, day and evening telephone numbers, and include the location and date of the session you would like to attend. 
• Federal Housing Administration loans are available with down payments as low as 3.5 percent, with financed closing costs. Visit www.hud.gov/buying/loans.cfm for more information or call 800-569-4287 to search for counseling agencies using your ZIP code. 
• The State of <a href="/topics/New_York%2C_NY">New York</a> Mortgage Agency offers several programs to help first time home buyers get into a home. Financing up to 100 percent is available, 97 percent in some programs. Closing cost assistance is also available. Visit nyhomes.org/index.aspx? page=48 or call 800-382-HOME for more information.

ny-lsmain0312588470apr01

Buyers may find LI homes affordable now

You've been searching for the perfect one for a long time. 
You have a list of qualities you're looking for in the ideal match. There's no need to settle for the first one that comes along. After all, if all goes well, you'll be committing to a long-term relationship. 
We're talking about finding your dream home. 
Many of those gut reactions we feel when we meet that special someone are the same ones that make us respond positively to a particular house. 
The Realtor: 'Meet online first' 
These days, if you can find a date on the Web, why not a house? In fact, <a href="/topics/Mary_Alice">Mary Alice</a> Ruppert, associate broker with Coldwell Banker Residential Brokerage in <a href="/topics/Huntington%2C_NY">Huntington</a>, says you should do some online research before you actually go out looking. 
"The Internet is a vehicle to look at properties so you know whether or not to spend your time looking at them in real time," she says. "There are virtual tours, property photos, <a href="/topics/Google_Inc.">Google</a> Earth, even <a href="/topics/Facebook_Inc.">Facebook</a>, so you can take the time to figure out what you want in a house, all from a safe distance. It's like match.com when looking for a date. It gives you a chance to see what's out there with a veil of privacy, so you can talk to people without making a commitment. And it gives you space you need for when you're ready to meet that house face-to-face." 
The Mortgage Banker: 'Don't be blind to flaws' 
At the same time, keep in mind that puppy love can blind you to a home's flaws, says Mira Dick of <a href="/topics/Roslyn%2C_NY">Roslyn</a>, a private mortgage banker with <a href="/topics/Stamford">Stamford</a>, Conn.-based Luxury Mortgage. 
"You need to investigate it thoroughly and not assume that those first feelings of love are the real thing. Think with your head and heart," she says. "You may have love at first sight. But take a step back and make sure you love it for the right reasons." 
Also, come into the search from a position of assurance by getting preapproved for a mortgage. "Get a commitment from a bank before searching for a house. A preapproval gives you confidence that you can shop around for the right match," Dick says. "As in a relationship, you should try to be prepared, and that means having self-awareness about how far you're willing to go to make this work - or in this case, how much you're willing to spend." 
The Architect: 'Don't lose your head' 
Try to be realistic, advises <a href="/topics/Jim_Thomas">Jim Thomas</a>, a senior associate with Giambertone Architects in <a href="/topics/Cold_Spring_Harbor">Cold Spring Harbor</a>. "A house is probably the biggest purchase of your life, yet most people respond with their emotions. You wouldn't buy a car that way, but with homes, often it's an emotional buy - an expensive emotional buy." 
<a href="/topics/Jim_Thomas">Thomas</a> says that many have an image of the perfect house from childhood - it has to be two stories, have a white picket fence - and then they take those images with them on the house hunt. It's much like a romantic notion some people have of the kind of relationship they want, he says. 
"We put aside the rational and instead focus on things we love like the fireplace or den," he says. "People think of this big purchase in small details, and that's how we think of relationships with a significant other. When you walk into a house, you start to ask, Can we imagine ourselves living here, raising children here?" 
But it's important to remember that this is a big-ticket commitment, so you have to put the emotional aside at some point and let practicality take center stage as well. 
The Interior Designer: 'Don't get seduced' 
Take that first on-site look at the house with your eyes wide open, says designer Genevieve Gorder, who has redecorated many homes on <a href="/topics/Long_Island">Long Island</a> and is the host of <a href="/topics/HGTV">HGTV</a>'s "Dear Genevieve." 
"Don't get seduced by the details," she says. "The beautiful boy at the party doesn't always have a lot of substance underneath. Don't try to convince yourself a house will work just because you like the homey finishing touches. If you only pay attention to the icing, you can quickly get weary of the house when you move in." 
Gorder recommends coming back a second or third time before making a commitment. 
"If you're interested, start dating this house," she says. "Go back to it at all times of the day. How does the light filter into the rooms at different times of the day? Maybe it's quiet in the morning, but it's on a delivery route at dinner time. You have to love it all day long." 
The Home Inspector: 'Get an unbiased opinion' 
Even if it seems just right, you should let someone else take a look, especially an objective party, says Matt Kaplan, who owns HouseMaster in <a href="/topics/Commack%2C_NY">Commack</a>. "You need someone who is trained to point out the pros and cons of the home, the structural and mechanical aspects," he says. "You may have based your dream house on style and location, but you don't want to find out later that you have to spend money on a new roof, electrical issues and repairing water damage in the basement." 
Kaplan recommends that all potential buyers get a home inspection by a licensed inspector. "You might love the cosmetics, but the inspection points out the flaws. And make sure you read the report." 
The Love Coach: 'Be willing to compromise' 
Robin Gorman Newman remembers all too well, after a search of nearly four years in three states, when she met the one. 
"My husband and I knew exactly what we wanted - a ranch, a neighborhood within walking distance to a town - and when we pulled up in front of the house we own now, I just knew," says the love coach and dating book author from <a href="/topics/Great_Neck%2C_NY">Great Neck</a>. "I said, 'If it looks anything like the outside on the inside, this is it.' When we went inside, everything clicked." 
Though she was smitten, she says the ranch wasn't perfect. It wasn't within walking distance of town, and Newman says she really wanted one more bedroom. 
"But the rooms were large, and I loved the way it looked," she says. "I think we do use almost the same thought process when we search for a mate as we do with a house - this whole notion of judging initially by someone's looks. There's a level of attraction, but then sometimes the right one turns out to have qualities you didn't expect to like. And then you compromise, like you thought you'd want someone taller, but the guy is shorter, and it no longer matters to you. It's when you get to know the inside that counts." 
Nine years later, though, Newman says that what helped in her decision was that she took her time and waited for the right house to come along. "In that way, by the time I did find it, I was comfortable enough with my decision," she says. 
The Psychologist: 'Learn when to let go' 
If that report indicates the house really isn't the best purchase for you - you'll need all new windows within a year, for instance - learn when it's time to let go. 
Elizabeth Carll, a clinical psychologist in <a href="/topics/Centerport%2C_NY">Centerport</a>, says there are no perfect houses, like there are no perfect relationships. "So you have to be flexible, and you should get another opinion from a friend or relative, especially if you feel smitten," she says. "Very often, we don't want to hear what someone close to us has to say about our choice. You don't have to do what they say, but hear them out. If everyone is giving you similar feedback, at least take their recommendations into consideration." 
And if you decide they're right, and you have to give up this house in search of one that's a better match, you'll probably go through a mourning stage. But, she says, the right one will come along when you least expect it. 
Housetrology 
Check out this fun way to find your dream house at coldwellbanker.com/housetrology. Coldwell Banker Real Estate's Housetrology online quiz asks, "What's Your House Sign?" to encourage consumers to think beyond such standard home-buying variables as square footage or school districts. Housetrology examines how emotional instincts can factor into the type of house you might want to live in. Answers to such questions as, "Which TV show's house would best suit you?" or "What would you see out of your dream home window?" include images and descriptions and lead to your ideal home style.

ny-hocov6032139feb13-copy

Advice for the smitten

Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers. 
The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. The <a href="/topics/Commerce_Department">Commerce Department</a> said Wednesday that new home sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit. 
Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader <a href="/topics/Harry_Reid">Harry Reid</a>, D-Nev. 
The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers. 
Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash. 
Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of <a href="/topics/Unemployment">unemployment</a> insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening. 
Popular bills like the one to extend <a href="/topics/Unemployment">unemployment</a> benefits often attract amendments that would have a difficult time passing on their own. 
<a href="/topics/U.S._Republican_Party">Republicans</a> were demanding that they be given a chance to offer amendments to restrict federal aid to the beleaguered community activist group <a href="/topics/ACORN">ACORN</a> and on requiring that people receiving <a href="/topics/Unemployment">unemployment</a> insurance be processed through E-Verify, an Internet-based system that employers use to check on the immigration status of new hires. 
Majority <a href="/topics/U.S._Democratic_Party">Democrats</a> have refused to add the amendments. 
If the Senate passes the bill, it would go to the House, which passed a similar bill extending unemployment benefits last month. House leaders have also said they support extending the tax credit for homebuyers. 
Sen. <a href="/topics/Christopher_Dodd">Chris Dodd</a>, D-Conn., has been negotiating for several weeks with Sen. <a href="/topics/Johnny_Isakson">Johnny Isakson</a>, R-Ga., to craft an extended tax credit for homebuyers that would pass the Senate. 
Lawmakers didn't release a cost estimate for extending the tax credit, though similar proposals were projected to cost about $10 billion. 
Industry representatives said uncertainty about the tax credit is hurting new home sales. September's decline was the first since March. 
It takes 45 days to 60 days to close on a house, making it unlikely a sale made today would be consummated by the end of November, said Lucien Salvant, spokesman for the National Association of Realtors. 
"Buyers right now have an incentive to hold off, not knowing whether the credit will be extended," Salvant said. 
About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit. 
The tax credit for money-losing businesses is a favorite among Republican lawmakers. Businesses could get tax refunds by using losses from 2008 and 2009 to offset taxable profits made in the previous five years. Under current law, they can only offset profits from the previous two years. 
The provision would help a variety of industries, including retailers, manufacturers and home builders, though it's expensive. 
"It's clearly a way to put cash in the hands of some major economic players," said Clint Stretch, a tax policy expert at Deloitte Tax. 
A similar proposal that was ultimately dropped from the <a href="/topics/Economic_Stimulus">economic stimulus</a> package enacted in February would have cost nearly $20 billion over 10 years. Lawmakers are working to reduce the price tag. 
Because people are so strapped for cash, this is a good way to get refunds when businesses need them for operating expenses, said Rachelle Bernstein, vice president and tax counsel for the National Retail Federation.

re-homecredit1030

Homebuyer tax credit extended

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