Owning real estate comes with a large number of substantial benefits. Not only are you in full control of your housing situation, but you can also significantly boost your net worth.
In fact, some people choose to invest in multiple properties so that they can rent them out to tenants and generate passive income. If you’re looking for Long Island NY real estate, there are certain factors that you need to keep in mind before you dive in.
Let’s explore the most important information you should know.
1. Good Homes Go Quickly
In general, the most favorable properties in this market will be sold at a rapid pace. In some cases, you might even find that a home that has been listed for less than 24 hours already has a buyer.
This means you need to have a strong understanding beforehand of what type of property you are looking for. This is simply due to the fact that there is not much room for deliberation if you want to have a fighting chance at making a purchase.
If you find a listed property that meets all of your criteria, it’s likely best to pursue the transaction. You should also be ready to handle any nuances that you encounter, such as organizing an inspection or appraisal. Otherwise, you could delay the process and risk having the seller work with another buyer instead.
2. Consider the Future Value of the Property
It can be easy to get caught up in the rapidly rising property values of the Long Island real estate market. However, you’ll need to take a step back and consider what the property will be worth in the future if these values cool off. This means considering factors like proximity to quality local schools, how accessible the home is to major roads, etc.
Unfortunately, it’s not impossible for a home to drop significantly in value in the coming years if it is not an objectively good purchase. To help make this obligation easier for yourself, consider this… How you would feel about the home if it had not experienced a spike in value?
Although there is no way to guarantee that home values will decrease in the future, be prepared for this outcome prior to making your decision.
3. You May Need to Purchase Over the Asking Price
The housing market in Long Island is highly competitive. In fact, many people are finding it much more difficult than they expected to buy real estate in this area. As previously mentioned, homes don’t stay listed for very long before they are purchased.
However, there is another complication at play. The buyers who purchase these homes are typically offering tens of thousands of dollars above the asking price. This helps them gain an edge over other buyers.
You may easily find yourself in a situation where you do not have a chance of purchasing a house unless you offer significantly more than what it is listed for. For example, a house might be listed for $450,000. In less than 24 hours, someone may offer $480,000 for it.
Assess in advance how much capital you have access to. Additionally, be clear on whether or not you are willing to pay more than the listed amount for the property you are interested in.
4. There Is an Inventory Shortage
A major contributing factor to the tumult of the Long Island market is the presence of an inventory shortage.
In a conventional market, buyers would have a fair amount of flexibility when it comes to the properties they were able to find within their budget. Today, however, they might have a bit more trouble finding a home within their price range.
This also means that houses are slow to enter the market, making the currently listed homes even more sought after.
5. You May Strike Gold if You Keep Digging
Eventually, you may find a house within your budget that meets all of your necessary criteria.
People are now frequently relocating to other regions of the United States since they can work remotely for their employers. Some families are looking to sell their houses as quickly as possible, and you might find someone in Long Island who cares more about working with a fast buyer than one who will pay over what they list the home for.
If you’re the first one to get in touch with them, you might find yourself able to secure a transaction that is highly in your favor.
Consider Working With a Professional
When looking to buy a house, working with the right agent can significantly improve the overall process.
In fact, most people who are serious about buying real estate make finding a reputable real estate agent their first move. When searching for one to work with, consider their past reputation.
Find an agent who has had a large amount of positive feedback. This allows you to gain insight into what you can expect from them.
The Long Island NY Real Estate Market Can Seem Convoluted
This is particularly true given the unprecedented growth that the market has seen over the past year.
The above information, though, will ensure that you can easily navigate the Long Island NY real estate market. In turn, this will then help you make the best decision for your situation.
Want to learn more about what we have to offer? Feel free to get in touch with us today and see how we can help.