If you’re thinking to buy a house on Long Island, you’re probably asking yourself, should I buy now? Or should I wait for the market to actually cool off? My name is Dean Miller, and I want to help you understand what the right decision is for you and for your family.
The First BIG Decision
Should I buy now?
Should I wait?
What’s the upside to each decision?
The Current State Of Nassau County Real Estate
If you’ve been involved in a home search recently, you know the current market is absolutely crazy right now. The properly priced homes are getting 20, 30, 40, or more viewers at every single open house. And usually multiple offers all on the first day.
Maybe you’re thinking about waiting until the market cools off in the fall, or the winter, or later in the summer. Here’s what I’m seeing that’s happening right this minute. We’re seeing market appreciation of about one and a half to 2% per month in most towns and a median sale price here in Nassau County of well over $600,000.
Let's Think This Through
Now let’s assume that you want to wait because you’re on the bubble or you think you can’t afford it. And you’re assuming that prices might start to come down because demand will decrease later in the year, or you might have the opportunity to save more money for later in the year.
Well, think about this…
Six months later, that home that you looked at today that we assumed was about $600,000, that home will increase in value $35,000 to $40,000. Was it worth those six months or more to make the actual purchase? Were you able to save up enough for that even larger down payment?
There’s no sign of this inventory shortage changing or the demand slowing down anytime soon.
In some towns right here in Nassau county, we’re actually seeing the best price homes coming off the market literally in days. In over 20 years in this business, I have never seen an inventory shortage that is even close to what we’re experiencing right now.
And even with interest rates starting to increase slightly, we’re still seeing massive competition for homes that are priced properly.
If you’re thinking to buy a house on long island right now, things are not going to be easy. This is not HGTV where you look at three or four or five houses and you get to pick the perfect one and move right into it.
You’re probably going to have to make very quick decisions. You may have to make multiple offers on multiple homes and you may even need to be prepared to lose a few of those homes, especially if you do not have the best team of people working with you before you actually start looking at these houses.
Your Home Buying Team
Like we say, every time we talk about the home buying process, build your team in advance of your search.
Yes, you’re going to need a great real estate agent who could help guide you through the selection process and negotiation. And keeping a challenging deal together to get you through the closing process, which is one of the hardest parts of it today.
You’ll also need a great real estate attorney who will listen to your needs, who will work quickly for you and be responsive to you and make sure that you don’t lose out due to delays and someone you have a relationship before you make that first offer.
Your home inspection team needs to be ready the minute that you get that yes, response about your offer of acceptance.
And of course your finance team, whether you’re paying all cash or leveraging a mortgage, your financial representatives can often make or break a deal for you. Loan officers, financial planners, et cetera.
Making Your Offer
Be prepared to make offers above asking price and be prepared to see the homes that sell around that specific new home appreciating in value as well. Yes, you may think you’re a little bit overvalued today, but that $600,000 house you’re buying today, tomorrow you’ll see the neighbor’s house come on the market at 675 and 625 and 700 over the course of time.
And your home’s value will start to rise as a result of you getting that ball rolling in the neighborhood.
So... Should You Buy a House on Long Island Now? or, Should You Wait?
So if you’re thinking of waiting, we’re currently advising against it. And we think that you’ll be glad you bought today as opposed to waiting three to six months or even a year. I’m personally confident that we’re going to continue to see home prices increase. And like we mentioned earlier, we’re also already starting to see interest rates increasing, which means it’ll have an impact on the affordability factor.
I’m personally in the market looking at new homes to buy, and I’m experiencing this exact same madness that you are. But I’m doing so because I’m confident that the market will continue to improve and appreciate. And I want you to have that same level of confidence. So if you’re watching this video (or reading this blog post), we would be honored to be a guide in your process.
Want Some Help Buying A Home On Long Island?
Give us a call at (516) 248-5007. We can tell you about our VIP buyer program and we would love to share with you our six steps to successful home buying report. Again, give us a call at (516) 248-5007. I’m Dean Miller and I look forward to speaking with you about your new home.