The Long Island real estate market remains driven by the old rules of supply and demand. There is more of the latter than can be met by the former, with low inventory still very much a reality and higher asking prices following suit. The situation has driven certain buyers to action, while others stay on the sideline, waiting for any number of reasons. Kevin Leatherman of Leatherman Homes notes that people should think twice about why they’re waiting.
Prices will come down, some say. I’m holding out for my perfect home, say others. Regardless of the rationale, however, the saying that goes something like time and tide wait for nobody also applies to real estate these days.
Many people may actually be hurting themselves on the issue of price, if they are not doing their math carefully. As mortgage rates remain historically low, saving $10,000 or $20,000 on the cost of a home, especially among more expensive home, over a long period of time does not have a massive impact on monthly payments. Yes, it is money saved, no doubt, but what is the cost of that savings? Did you lose the property you loved to another buyer? Did you wait too long, holding out for a better deal, and mortgage rates rose, wiping out that “savings” over time?
Regarding financing, says Kevin Leatherman of Leatherman Homes, whose experience in the market over more than 30 years, buyers should without question take the time to consider how they are planning to pay for their property.
“Are you’re financing it over 30 years?” he posits. “I’m also seeing more buyers taking out a 15-year mortgage. That’s a little more of the seller-buyers, because sometimes people are selling and buying and they’re going into their new home with a 15-year mortgage or possibly a 20-year mortgage. So you have to take all of that into consideration.”
Another thing facing everyone searching for a new home is the challenge of coming across a listing that fits one’s criteria, especially in a time of historically low inventory across Long Island.
“It’s so difficult to find what they want,” Leatherman notes, “so if they’re truly getting a good match, they really like the property, they didn’t rush into it, they’ve thought it through and it meets their criteria, their goals, the location, square footage, and if it’s just the right fit for them, then go for it. Don’t lose it over a couple of dollars, as long as it’s reasonable.”
Having realistic expectations about the property is also essential in making a decision. It isn’t always about when you’re ready to move, but when your new home will be ready to receive you.
“Buyers should be thinking about if the house needs work,” he cautions, “because if you’re trying to hire a contractor now, depending upon how extensive the renovations are, if you can’t live in the house for two months, that’s costing you probably another $3,000 a month, so that might be another $6,000.”
It seems in some cases, time actually is money.
Learn more about Kevin Leatherman and Leatherman Homes at leathermanhomes.com.