Category: Real Estate Law

November 7th, 2013 Real Estate Law No Comments »

New Jersey & New York Real Estate Contract – What Buyers Need to Know

As home prices plummet and interest rates remain low, more homebuyers are stepping into the New York and New Jersey real estate markets.  For most people, a home is the largest investment they will ever make, which is why it is crucial they know what they are getting into.

If you are a homebuyer in New York, you will most likely be asked to sign a binder or contract when you want to make an offer on a property.  This binder contains the essential terms of the offer, such as price, deposit, down payment and mortgage amount.  Depending on where the property is located in New York or New Jersey, you might be asked to sign an actual contract that is a state-approved form.

Before you sign any contract or binder, you should have it reviewed by a New York or New Jersey real estate lawyer.  A real estate attorney will be able to make sure that all of the necessary elements are included in the contract and can even help with the negotiation process.

A good New Jersey or New York real estate contract should have a clause that allows a property inspection by a home inspector or engineer.  The home inspector will be able to examine the house, including the roof, plumbing system, electrical system and so on, to determine if any problems exist.

If you are considering purchasing or selling house in New Jersey or New York, you should contact a New York real estate lawyer at Decker, Decker, Dito & Internicola at (718) 979-4300 or (800) 976-4904.

November 7th, 2013 Real Estate Law No Comments »

Is it a good time to purchase a home in Staten Island now that housing prices have fallen again?

Housing prices have fallen 7.5% so far this quarter.  This raises the question “Is it a good time to purchase a home?”.

For many people the option to purchase a house is becoming more appealing as the prices fall lower and lower, especially for those who currently rent an apartment because in some cases a mortgage payment may end up costing less than the monthly payment for a mortgage.

As prices continue to fall there are many more people considering buying a home because they will able to get a house at the lowest price, get a good price on a mortgage due to low mortgage interest rates and, as long as they plan on owning their home for the next few years, they may be able to make profit off of their home once the market rebounds fully.

Here are some things CNN has listed as tips when considering to purchase a home:

  • Plan on owning the house you are purchasing for the next couple of years
  • Check out your credit history to make sure it is clean if you are applying for a mortgage
  • Shop for homes you can afford and don’t try to live beyond your income
  • Get professional help from real estate broker
  • Hire a real estate lawyer
  • Get pre-approval for a mortgage
  • Do your homework before bidding on a house
  • Have a home inspection done on the house you are considering purchasing prior to signing the contract (to read more about the value of home inspections click here)
If you are looking to buy a home in Staten Island or any other New York or New Jersey area contact Steven T. Decker, Staten Island real estate attorney.
November 7th, 2013 Real Estate Law No Comments »

Co-op in Harlem offers “stimulus package” to buyers

A new co-op building in Harlem is trying to apply the same ideas for trying to boost the economy to their co-op unit buyers.

Beacon Towers, which was recently developed, is offering a sort of “stimulus package” to anyone purchasing a co-op in their building between now and July 5.

The “stimulus package” being offered to the purchasers of the new york city co-op property in Harlem is a $300 credit towards monthly maintenance fees for one year.

Beacon Towers is saying they are doing this in hopes that it will bring in new purchasers and also help surrounding restaurants and other businesses at the same time.  They said the co-op purchasers are free to use the money they are saving as they please, but they are hoping that they will use some of it to eat out more often or purchase things from the businesses in the area.  They believe this will help both the purchaser save money and will help boost the sales of the businesses in the surrounding Harlem area.

If you are interested in buying a co-op in new york city or purchasing or selling a home in the New York or New Jersey area, contact Steven Decker Staten Island real estate lawyer.

November 7th, 2013 Real Estate Law No Comments »

Tax credit: you may be able to take advantage of it now

You may have recently heard of the tax credit that is available to first time home buyers but something you may not have heard of is that you do not have to wait until 2010 to reap the benefit of it.

If you are looking to purchase a home and take advantage of the $8,000 tax credit that is available for first time home buyers you may be interested in knowing that you can receive the $8,000 tax credit this year.  You do not have to wait to file your 2009 tax returns to claim this credit.  In fact, you may be eligible to re-file your 2008 tax returns and receive the $8,000 credit some time this year (check with your accountant for more details).

In order to be eligible to receive this credit you must be a first time home buyer, purchase a home before December 31, 2009 and remain in possession of the house for at lease three years (or else you may owe the money back).

If you are a first time home buyer looking to purchase a home contact Steven Decker, Staten Island real estate lawyer, to discuss your purchase and get you started on your way to owning your first home.

Steven Decker helps new buyers close on the home everyday.  For more information contact Steven Decker at 718-979-4300 or sdecker@deckerlawsi.com.

November 7th, 2013 Real Estate Law No Comments »

Hopes are high for real estate tax credit extention

One of CNBC’s reporters, who recently attended the National Association of Realtors conference in Washington, D.C., is reporting that the Federal Housing Administration is hoping to be able to further strengthen the economy by working on a plan to provide more assistance to home buyers.

One of the options being discussed by the Federal Housing Administration is to offer a tax credit extension.  They would do this by giving all home buyers the tax credit that is currently being offered to first time home buyers.

The Federal Housing Administration believes that this will help jump start the real estate market and in turn help the economy as a whole.

If you are looking to purchase a house in Staten Island contact Steven Decker, Staten Island real estate attorney at 718-979-4300 or sdecker@deckerlawsi.com.

November 7th, 2013 Real Estate Law No Comments »

Purchasing a Home: The advantage new home owners have over renters

In these tough economic times there has been a struggle in the sale of newly constructed homes.  Many home builders are starting to do something about the recent lack of business in their area.  They are starting to market the purchase of  newly constructed homes to renters.

Renters are being persuaded more now than ever to become a homeowner in todays market.  There are many advantages for the renters, especially if they are first time home buyers.  With current interest rates averaging around 4.25-4.5% there is plenty of reason for people to purchase a home or refinance.  Some renters may even find that the amount they would be paying monthly for a mortgage is equal to or less than the amount they are currently paying for rent.   Another advantage to the renter as long as they are a first time home buyer is the $8,000.00 federal tax credit for first time home buyers that will be given as long as you purchase a home between now and December 1.

As you can see there are many advantages to becoming a homeowner in todays market instead of renting a property.  Some builders are trying to potentially sell their newly constructed homes by offering custom designing within the homes, trying to promote the fact that you can have pets in your home (unlike some apartments) and even helping the potential buyer find a bank that is offering low affordable interest rates.

If you are looking to purchase a home in Staten Island or the New York area contactSteven Decker, Staten Island real estate lawyer, to get started on your purchase today.

November 7th, 2013 Real Estate Law No Comments »

Benefits to mortgage modifications

Homeowners who are struggling to pay their mortgage are now having a chance to have their mortgage modified under the new foreclosure prevention program which went into effect on March 4, 2009.   This prevention program was created to help homeowners who are considered delinquent or an at-risk mortgage.  The lenders are encouraged to offer their current borrowers a lower interest rate.  One of the provisions under this foreclosure prevention program is to make sure the interest rates being offered to borrower who is struggling to pay their mortgage does not exceed 31% of the borrowers gross monthly income.

Since President Obama put the foreclosure prevention program into effect JP Morgan Chase has reported to have issued more than 15,000 loan modifications.  Bank of America did their part by sending out letters to over 100,000 eligible borrowers letting them know of the potential opportunity to do a mortgage modification.

If you would like to discuss having a mortgage modification done or regarding any other real estate matter you can contact Steven Decker, Staten Island real estate attorney.

November 7th, 2013 Real Estate Law No Comments »

Affordability Index says now is the time to buy

While some economists believe that further declines will happen many feel that the residential real estate market will be one of the first sectors to recover from the recession.  With record foreclosure rates forcing prices down and mortgage interest rates as low as ever homeownership is more affordable than ever before.  With prices falling new housing starts have fallen even further.  In Staten Island, Brooklyn and Queens the number of new building permits issued has fallen 50-70%.  In Manhattan dozens of new projects are being abandoned as developers wait for a sign that the market for luxury housing will improve.  With new housing stats falling once the current inventory is exhausted the normal rules of supply and demand will lead to an increase in market prices as the number of available new units will be way down.  Many defaulting homeowners were themselves first time homebuyers trying to get into starter homes.  Many of these homeowners were not as knowledgeable as they could have been and were more likely to underestimate the true consequences of sub prime loans with variable rates.  The National Board of Realtors affordability index is at an all time high.

November 7th, 2013 Real Estate Law No Comments »

Am I foolish for purchasing a home in thie down market?

Should I wait for the market to go lower or will the Presidents plan lead to a rise in housing prices and interest rates?
President Obama’s economic policies are attempting to rescue the real estate market and aid floundering lenders and homeowners.  If successful his policies will cause housing prices and interest rates to rise.  While this is good news for banks and hurting homeowners this change will adversely affect two groups who should be benefiting from the current real estate downturn, owners who can refinance and people looking to purchase homes.  By continuing to wait to refinance or purchase members of these groups may very well miss a once in a lifetime opportunity to lock in low interest rates and acquire homes for record low prices.

Today, the great fear of people considering refinancing their mortgage or those seeking to buy a home is that they should wait as the market may go lower.  The fear that interest rates will go lower or that they will overpay for a property that may decrease in value.  While understandable these fears will cause many people to miss the tremendous house pricing and interest rate values currently available.  The market may go lower and interest rates and prices could go a little lower but these risks must be weighed against the benefits currently available with interest rates below 5% and record foreclosures driving prices down.  My concern for people waiting on the sidelines is how quickly interest rates and prices will rise once the new economic stimulus policies kick in and the recession ends.  Will increased economic activity lead to inflation and increased interest rates? Will a bailout plan for banks and homeowners lead to more people keeping their homes?  Either of these outcomes will increase the cost of homeownership to those who miss the current market opportunity.

Mortgage interest rates are at remarkable lows and I have many clients refinancing or purchasing with loans closing at interest rates below 5%.  These rates are a function of the US governments attempts to help ailing banks and aid the depressed real estate market.  In order to help lenders drowning in sub prime foreclosures the Federal Reserve is lending to banks at historic low rates.  The Fed is lending to banks at ¼% interest to encourage them to make mortgages.  When borrowing from the Fed at a low rate lenders have been happy to lend it on mortgages paying 5%.   This can’t last forever so two groups need to take immediate advantage of these low rates, current owners and homebuyers.  Homeowners can get an immediate benefit by refinancing their current loans.  They can lower their monthly payments and if they have an adjustable rate get a low fixed rate.  Homebuyers can get more for their mortgage dollars by getting a lower payment or a higher loan amount to allow them to buy a more expensive house. The current interest rate climate will change once the housing crisis starts to abate.  This will lead to the Fed increasing rates and the mortgage rates will rise.

Foreclosure sales are driving the market lower.  With the record increase in foreclosures more distressed homes are for sale and this has lead to a decrease in median home prices.  It also affects the psychology of buyers who believe that lower prices are real.  With an increase in bank owned properties and short sellers looking to dump properties the effect on non-distressed properties is evident.  Looking at the residential market in Staten Island, Brooklyn and Queens I see the effects rising foreclosures have on the market.  There is a direct correlation between foreclosure activity and price reductions.  In areas with large numbers (Port Richmond in Staten Island, St Albans in Queens, East New York in Brooklyn) prices are down markedly whereas in areas with little foreclosure activity prices have not fallen nearly as much.  If the number of foreclosures is decreased the number of homes for sale will fall and prices will rise.  President Obama’s stated goal to reduce foreclosures can only lead to a decrease in the number of homes for sale as lenders and homeowners will have less pressure to sell overvalued properties.

The President’s stated goal to help the real estate market is still being developed and implemented.  Once it takes effect the results could be startling.  Make sure you don’t miss the opportunity the current market offers.

November 7th, 2013 Real Estate Law No Comments »

Profitting from a Falling Economy: Renters Using Falling Home Prices to Become Homeowners

It is no secret that the Staten Island residential real estate market has seen a major decrease in property values.  While Staten Island, Brooklyn and Queens have seen a lesser decrease than many areas it is not uncommon for some areas to be down up to 20% from the heights seen in 2006.  But this news is not all bad as many people can use this market downturn as an opportunity to become homeowners.  Every day I answer questions about the true cost of renting versus becoming a homeowner.  With falling home prices and interest rates now is the time for renters to get into the market.  After comparing the costs and potential benefits of homeownership many renters see this as the best time to get in on the American dream and purchase a home.

While people seeking to sell and buy a higher priced house and those seeking to refinance their existing mortgages can benefit form the current market weakness, renters and first time homebuyers have the best opportunity to profit from the market downturn.  Falling prices and interest rates makes homeownership more affordable than ever before.  With the number of foreclosures at an all-time high, more housing inventory is available and median home prices have fallen while rents continue to increase.  Coupled with lower mortgage interest rates the spread between the cost of owning a home and paying rent has narrowed.  All renters who intend to remain in a neighborhood for more than a few years really need to determine whether the tax benefits (and potential market appreciation) of owning a home make it a better decision than continuing to rent and making your landlord wealthy.  When looking at the actual cost of paying rent versus owning a home start with the cost of your rent and add in any anticipated increases for the next 5 years.  Now look at the cost of homeownership.  To determine the true cost of homeownership compare the ownership costs (mortgage, insurance, taxes, utilities, maintenance costs) versus the benefits of the tax deductions available for owners (mortgage interest and real estate taxes) along with the potential for increased property values when the market improves.  Many renters with good credit and the ability to pay a mortgage will find the benefits of homeownership worthwhile.

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