Condo living provides many benefits and there are plenty of buyers are looking to enjoy or invest in an amenity filled community lifestyle. During these tumultuous times here are some things to keep in mind regarding condominium communities and mortgage financing. MOST IMPORTANT: Protecting Homeowner Investment & Community Worth It behooves all residents to stay up to date with HOA fees to keep their community in good standing in order to secure the maximum value of their investment. Home Owner Associations and owners equally want to safeguard their real estate assets by preserving the equity of each unit and the entire development. Keeping Communities Safe & Well Maintained When working with sellers, buyers or investors, it’s a good idea to remind them that keeping current with HOA fee payments is essential. When finances are precarious it is tempting to skip a fee, but if many neighbors have the same inclination, the entire neighborhood can suffer as maintenance may be interrupted or scaled back, creating potential safety concerns or aesthetically unpleasing upkeep. Homeowners and realtors alike strive to present listings in the most appealing light to obtain the properties’ optimum worth . The Mortgage Effect Having a significant number of owners in HOA fee arrears within a community adversely affects everyone. For instance, “approved” developments (per Fannie, Freddie & FHA guidelines*) may lose their status if 15% or more residents fall behind on fees. Why is this important? By losing a positive evaluation, a substantial pool of potential buyers is eliminated. ...
More than 1 in 4 mortgaged properties were considered to be equity rich in the fourth quarter of 2019 according to the latest U.S. Home Equity and Underwater Report by the real estate data company ATTOM Data Solutions. Making the Cut A total of 14.5 million homes within the United States, 26.7% of mortgaged properties, were considered to be equity rich. For a home to be classified as “equity rich”, the combined estimated amounts of loans on the property must be 50% or less of the property’s market value. While this share was unchanged from the third quarter of the year, the figure is up from 25.6% in the fourth quarter of 2018. On the other hand, 6.4% of mortgaged properties were considered to be underwater. “Underwater” homes have combined loans on the home that are worth at least 25% more than the property’s market value. This share has inched down from 6.4% in the third quarter of the year and is also down 2.4 percentage points from the previous year. Good News for New York The highest shares of equity rich properties during Q3 2019 were located in both the Northeast and the West: California +40.8% Hawaii +39.2% Vermont +39.0% New York +35.7% Washington +35.6% States with the lowest percentages of equity-rich properties were ...
It’s no secret that New York home sellers have quite the variety of buyers to choose from so it’s important to make sure that your offer stands out from the crowd. The best way to get the competitive edge you’ll need in this competitive market is to get pre-approved for a mortgage. The resulting pre-approval letter lets home sellers and real-estate agents know that you’re serious while alerting lenders that you may be taking out a mortgage soon. Know How Much You Can Borrow It’s easy to get caught up in the excitement of your search and look for homes outside of your budget. Getting pre-approved can help you set realistic expectations for your finances so you can focus on homes within your price range. It’s important to review your budget and make sure that your loan amount is one that you’re comfortable with. Make a Competitive Offer Getting pre-approved for a mortgage lets sellers know that a lender has reviewed your current financial situation and determined that you can afford to buy a house. As a result, sellers can be confident that the process is unlikely to get derailed because you can’t secure the proper financing. Be Aware of Potential Problems While each lender’s process can vary, many will review your credit history, income, and assets before granting a pre-approval. Many people realize that there’s some work to do before making their first offer. From paying down debts, saving for a larger down payment, or resolving inaccuracies on your credit report, it’s important to take care of any potential issues before you make an offer. ...
Whether you’re a recent college graduate or have spent some years working and saving, making your first home purchase may have crossed your mind. Thoughts about the real estate market in New York and the overall affordability of a home for first-time buyers may have quickly followed as well. However, buying a home is more attainable than you think and can be a valuable tool in building your net worth and overall wealth. Homes Appreciate Over Time One of the largest reasons people buy a home has more to do with selling it down the road than anything. The value of a home has consistently appreciated over time. While their appreciation can take years and you may experience some downturns, the overall trends are consistently positive. And when the time comes to sell, any return on your investment is yours, not your landlord’s, to keep. Investment Potential If you buy property in a developing neighborhood, especially here in New York, chances are that your home will yield a high return within a few years. Spending those same years renting a property will put you at a disadvantage when you do decide to buy. The home that you could have bought in the developing area will now be selling for a lot more in that same area, leaving you paying a much higher price for the exact same property. Worst case scenario of buying? The appreciation value will be slower than expected but investing in property has always been one of the safest investments you can make. Tax Breaks When you take out a loan to purchase a property, you will be eligible for a tax deduction against the interest paid on the loan. If you ...
In a market where timing can dramatically impact the amount of time spent looking for a buyer as well as the price you’re ultimately able to get, many people are led to believe that winter is the absolute worse time to sell your home in New York. However, this common misconception couldn’t be further from the truth. Take Advantage of the Opportunity to Sell High and Buy Low If you’re set on purchasing a home in the spring, selling in the winter gives you the chance to be a non-contingent buyer when you’re ready to make a purchase. As a buyer, the warmer months bring you a greater number of options but also an increase in the competition. Selling in the winter sets you up as a competitive buyer because you won’t be saddled with a house sale contingency by the time you’re looking to buy in the spring. Beyond that, reduced inventory in the winter months often sees homes selling at slightly higher prices. Less options for buyers leaves them feeling less likely to try to negotiate the price down. Capture the Relocating Buyer The first quarter of the new year brings a spike in people looking to move as employees are transferred to new areas. These individuals are eager to make offers and they’re often looking to move quickly. Less Competition Makes Your Home Seem More Desirable During the winter months, there are simply not enough homes for sale to satisfy the number of buyers in the market and waiting until the spring can have you seeing more time spent on the market and less money for your home. Sales are generally completed, on average, 10-15 days faster in the winter than they ...