Grieve Your Taxes?

Long Island, New York’s property taxes are among the highest in the nation. Here is some information to help to determine whether filing a tax grievance should be considered. Each township assesses each property in the town and establishes a residential assessment ratio (RAR). That assessed value establishes your annual town tax bill. If you take your total assessment found on your tax bill and divide it by the residential assessment ratio, that will provide the town’s opinion of the current market value of your home. You will need to call the township for the RAR since it is town specific. If you find, after the calculation, that your home’s value is inflated, you should consider filing a grievance. A homeowner can do this personally or hire a grievance service for assistance. There are deadlines for filing and a call to the town will provide that information as well as the residential assessment ratio needed to do the calculation.

How would you like to save hundreds of thousands of dollars of interest on your home mortgage? If you have no prepayment penalty on your loan you might be able to do just that. Interest is especially high and principal low during a substantial part of the loan term and especially at the beginning. If you were to make one extra payment during the year and allot it towards principal you would reduce a thirty year loan term to approximately 22.8 years. If you made two extra payments per year you would reduce the loan term to 17.3 years. You would in effect be saving hundreds of thousands of dollars in interest.

Check with your bank about the possibility of making extra principle payments for these great savings. Many banks provide their customers with the option of making extra principle payments on their mortgage statements.

Why Should You Hire Us?

Of course a homeowner can sell their home on their own but it is not a simple process by any means. The more money issue always plays in the mind of the seller but most often brokers can get more money even after the commission is paid. The proper handling of the complexities from marketing to disclosure laws, certificates of occupancy and safety issues, and buyer qualifications and financing choices are all factors that can make or break the sales process. Real estate brokers are problem solvers. We pride ourselves in knowing what to do, when to do it and how to remedy problems that invariably arise. There are emotional issues that arise whether selling or buying and we try to be as understanding and as helpful as possible while the seller is leaving and the buyer is realizing the American Dream.

Disclosure Part 1

Remember that first home you bought & the agent you bought it through? Many agents become fairly close to their buyer customers. Some buyers might share confidential information with their agent such as the price they are willing to pay for a house even though they want the agent to present a lower offer at first. Some buyers even ask their agents what a seller might be willing to reduce their price to. The truth be known, most agents are employed by the seller, and furthermore, agents must disclose who they are working for when they first meet with buyers and sellers. This is called agency disclosure and a form must be presented and acknowledged by all parties. An agent can represent a buyer but again this fact must be also be acknowledged by all. So when you meet with an agent remember that the required agency disclosure form is intended to put everyone on notice so as to allow the transaction to proceed honestly and fairly.

Disclosure Part 2

We as New York State real estate brokers are required by our licensing authority, the Department of State, to do as they direct us. With the new seller property condition disclosure law, in effect since March 1, 2002, they are giving brokers the responsibility of educating our clients and customers about the existence of this new legislation and the penalty for non-compliance. The State department further suggests that we provide a disclosure form to the sellers but not insist, advise, or help a seller to fill out the form. The legal community has different interpretations and suggestions as to how their clients should comply with the law and we as brokers can only suggest that they consult with their attorney with any questions and/or direction. This said, New York is the 35th state to have a seller property condition disclosure law in effect. It has not been easy going since the law’s inception in 2002 and it is up to the legal community to deal with its interpretation and compliance. Brokers can only take the role as educators and not advisors.

Disclosure Part 3 - Lead-Based Paint Regulations

For all homes built prior to 1978 the seller/landlord is required to disclose all known lead paint present or to specify that they have no knowledge of lead paint in the dwelling. They must also provide all available reports or records pertaining to lead-based paint and the real estate broker/agent is required to inform the seller/landlord of their obligations and to insure compliance with the regulations. The purchaser must receive the EPA/HUD lead paint pamphlet and receive a 10 day opportunity to inspect for the presence of lead paint. A person may be penalized $10000 for each violation and, upon conviction, a fine of $25000 for each day of violation. Clearly non-compliance with the law is a serious issue and best discussed with the attorneys to the transaction. The broker can also be the conduit for education and compliance with the law. Yes, the selling process involves some serious issues.