gtag('config', 'AW-340031415');
Facebook Twitter Instagram Pinterest

March 2022

Functional Obsolescence

Things You Should Know About Functional Obsolescence in Real Estate

Leave a Comment / Tips /

Functional obsolescence is a term used in the real estate industry to describe a decrease in the market value of a property that is caused by a decrease in its functional ability. Functional ability can refer to anything from the physical condition of the property to its usability or livability. There are a few different factors that can contribute to functional obsolescence in a property. The most common is age; as a property gets older, it may start to show signs of wear and tear that make it less desirable or usable. Structural problems, like foundation issues or damage from weathering, can also lead to decreased functionality. Finally, changes in the surrounding area or in demographics can cause a property to lose its appeal, even if it’s in good condition.   How Does Functional Obsolescence Affect Property Values? Functional obsolescence can have a serious impact on the value of a property. In some cases, the decrease in value may be relatively small, but in other cases, it can be quite significant. It’s important to be aware of functional obsolescence when considering a real estate purchase, as it can have a major impact on the value of the property. If you’re thinking of selling a property that’s been impacted by functional obsolescence, it’s important to price it accordingly. You may find that buyers are less interested in purchasing a property that doesn’t function as well as newer properties in the area, and you may have to reduce the asking price to get it off the market.   3 Types of Functional Obsolescence in Real Estate There are three main types of functional obsolescence in real estate: Curable obsolescence: This is obsolescence that can be fixed or improved with some effort on the part of the property owner. For example, a property with outdated finishes can be updated to make it more appealing. Incurable obsolescence: This is obsolescence that can’t be fixed and can only be mitigated by selling the property. Structural damage, for example, is typically incurable. Superadequacy: This is when a property is more functional than necessary for the current market. For example, a large house in a neighborhood of smaller homes would be considered superadequate. Superadequacy can lead to a decrease in value if the property is no longer in demand.   Methods of Appraisal to Consider When Purchasing a Property Not all homeowners or real estate investors will consider functional obsolescence to be a deal-breaker in their purchasing decisions. Your real estate agent may be able to assist you in negotiating a lower price for a home if you are made aware of the home’s obsolescence after you have made an offer on it. Some assessors may label a home outmoded because of functional elements that you consider more aesthetically pleasing or that you are willing to make repairs to yourself. If you are aware of a property’s obsolescence, you might request that the assessor utilize the cost method to assess rather than the sales comparison technique when determining its value. Instead of comparing the value of the outmoded home to comparable homes currently on the market, the appraiser will determine the worth of the home based on the amount it would cost to demolish and rebuild the home in its current condition. The cost of replacing is referred to as the replacement cost. Real estate investments, like all other investments, are subject to inherent risks, which may include the depreciation of assets as well as financial losses and legal repercussions. It is intended solely for educational, informational, and reference purposes that the information is given in this article be used. Before making any legal or financial agreements, get the advice of a licensed real estate or financial professional first.

Things You Should Know About Functional Obsolescence in Real Estate Read More »

Things You Should Know About DOM in Real Estate

Things You Should Know About DOM in Real Estate

Leave a Comment / Cash Home Buyers, Tips /

You may come across terminology and abbreviations that you don’t understand during the house buying or selling process. Days on Market (abbreviated as DOM) is one possible example of this type of acronym. The DOM (days on market) is a measure of how long a residence has been on the market. It begins when the property is first listed on the multiple listing service and continues until a contract is signed to purchase it. If you think it’s easy, it’s not usually so simple. A property’s days on market (DOM) can continue to rise even after the seller has accepted an offer and the listing status has changed. Keeping track of your home’s total days on the market might have a significant impact on the selling of your property. Buyers often inquire about the duration of time the house has been on the market before deciding whether or not to proceed with an offer. It is possible for a home seller to lose money if their DOM is higher than the average.   How Useful is DOM in Real Estate? DOM can assist you in determining the current state of the local housing market, as well as the property’s place within it, before making an offer on a house. For example, a new listing indicates that the home hasn’t been on the market for a long period of time. As a result, the seller will be less likely to accept a much lower price, and it may also increase the likelihood of a bidding war. It’s more likely that you’ll get an even better price if the home has an above-average DOM number. Another possibility is that a prolonged DOM indicates that the asking price is too high given what is currently available in the market. It’s possible that the vendor has inflated expectations.   How to Reduce The Days on Market The less time your home spends on the MLS, the less likely you are to get the price you seek. The length of time it takes to sell a home is one of several red flags for home sellers to overcome in the real estate market. In any real estate deal, reducing the time on the market should be a primary goal. It’s possible that one or more factors are keeping potential purchasers from putting in a bid. Keep the DOM number low by figuring out what these things are. The following are some of the most important considerations when selling a home on a timely basis.   1- Accurately Valuing Your Home If you overprice your home, you’ll miss out on the opportunity to sell it. Sellers tend to overestimate their home’s value, which is understandable, but it’s a surefire way to turn away potential buyers. Homeowners have a variety of challenges when it comes to selling their properties for sale. After a pricing error, it is vital to know when to drop the asking price.   2- Staging Your House for Sale To sell your house quickly, it must be presented in the best possible light. This may entail comprehensive cleaning, decluttering, minor repairs, and repainting the house. Homes that appear to be neglected and in need of repair will be on the market for a longer period of time than others. Once that is completed, you may engage one of the best rubbish removal firms to help you get rid of any unwanted objects that are of little or no worth. Even in hot real estate markets when house sellers have a significant advantage, it makes sense to spend the time necessary to prepare your property for sale.   3- Flexibility Throughout The Process Showing your house to prospective buyers is an important part of the selling process, but it isn’t always simple or convenient. Buyers won’t make an offer if they can’t see the home. In order to enable potential buyers access to your home, you must be flexible as a seller. To make it easy to display your house, you’ll need a simple method of scheduling appointments. It’s imperative that you have a system in place that allows you to rapidly approve showings so that potential buyers can visit your home. Restrictions such as 24-hour notice for showings can make it more difficult to sell your home.   4- Correctly Promoting Your Business After you’ve staged your house, the next step is to hire a professional photographer to capture the best possible images of your home for the purposes of marketing it on real estate websites like MLS. It’s up to them whether or not they pursue the matter further and ask to see a demonstration. The listing must also provide sufficient information, such as a detailed description. It’s critical to nail down the whole marketing plan in order to attract the ideal buyer for the house and the surrounding area. Classified ads, social media posts, and even color brochures might all be used in the marketing strategy.’   5- Negotiations When you’re dealing with a lot of emotions at home, it’s going to be difficult to negotiate a fair settlement. There’s no harm in taking a look at the buyer’s offer even if you think it’s lowball. In the end, many low-ball houses offer to come to fruition.

Things You Should Know About DOM in Real Estate Read More »

Pros and Cons of Townhouses What You Need to Know

Pros and Cons of Townhouses: What You Need to Know?

Leave a Comment / Cash Home Buyers, Tips /

For those considering purchasing a property, townhouses are a viable option rather than single-family homes or condominiums. And if you’re looking for a rental property, you can find yourself in the same situation. In this article, we’ll go over some of the advantages and disadvantages of townhouse living so that you can make an informed decision. Families and individuals have a wide range of housing options to choose from in today’s market. The benefits and drawbacks of living in a single-family house, a condominium, or a townhome are all different. The many pros and cons of owning a townhouse should be carefully weighed before making a decision.   What is a Townhouse? Everyone has seen one of these free-standing houses that dot the landscape. Even in suburban and metropolitan areas, you can find townhouses scattered about. Townhouses have numerous levels and share only one or two walls with the residences next door. It is a multistory residence that shares at least one wall with an adjacent property that is referred to as a townhouse or row house, respectively. You have your own entrance and, in some cases, your own basement, driveway, garage, and backyard if you live in a condominium. A homeowners association, sometimes known as a HOA, will typically govern the property.   Pros Of Townhomes Let’s take at the list of pros. These are the benefits you can expect when buying a townhome.   1- Affordability It is not always cheaper to buy a townhouse than separate property. The townhouse, on the other hand, is often less expensive to buy if you’re comparing it to a single-family home in the same neighborhood with a similar interior and renovations. Why is this so? Building properties that share walls is cheaper than building them individually, therefore the savings are passed on to customers.   2- Amenities Many townhouse communities have amenities in the common areas that might improve your overall quality of life. Some HOA fees may include access to community amenities such as a playground, swimming pool, fitness centre, tennis court or clubhouse where you can host parties and entertain guests.   3- Easier Maintenance When you purchase a detached single-family home, you assume responsibility for a plethora of exterior upkeep tasks and responsibilities. You’ll need to keep up with the lawn maintenance on your property, arrange for snow removal (or shovel it yourself), and take care of the plethora of other responsibilities that come with owning a separate house. Generally, when you purchase a townhouse, you will only be responsible for the interior of your property because your HOA will often take care of the exterior upkeep. For those who are first-time homebuyers, a townhouse may be an excellent starting point, especially if they aren’t sure how much upkeep they will have the patience for.   4- Freedom Townhouse owners are required to follow the guidelines set out by the HOA. To ensure that the properties are kept in a certain manner, the HOA adopts bylaws. In contrast to condominium owners, townhouse owners, on the other hand, have greater flexibility in making decisions about the interior and exterior of their homes.   Cons Of Townhomes Let’s take at the list of cons. These are the cons you can expect when buying a townhome.   1- Hoa Fees Your townhouse may not be as economical as you think because of the high monthly maintenance fees you’ll have to pay. Buying a townhouse is a great way to save money for many people. However, if your HOA costs take into that savings, you’ll lose out on the money you saved. The costs you pay for shared area maintenance will help, but they won’t cover the upkeep of your own home’s interior. Even if you buy a townhouse, you’ll still have to maintain it on a regular basis.   2- Less Privacy Detached homes allow you to come and go as you wish without constantly running into your neighbors. Maintaining a sense of privacy can be difficult in a townhouse because you and your neighbors are practically living on top of one another. Also, keep in mind that townhouses are not completely soundproof.   3- More Noise You can be assured that if you own a townhouse, you will have another property adjacent to yours on at least one side. In many cases, you’ll have residences on both sides of the street that are attached. You could be listening in on their disagreements, hearing their music or television blazing when you’re trying to rest quietly with a book, or being awakened in the middle of the night by a crying child if you share those walls with your neighbors.   4- Less Space Apartment buildings and townhouses are typically more compact than detached dwellings. There is a possibility that this will result in reduced living space in some circumstances. When it comes to townhouses, storage might be a problem as well. Many homes do not include garages or basements, and if you have children, you may find yourself living in a space that is too small for their needs.   Is A Townhouse Right For You? Buying a townhouse has both advantages and disadvantages. A townhouse may be an option for you if you want to live in a community that’s out of your financial grasp, but if you’re trying to buy, it may not be the best option. There are several advantages to purchasing a townhouse, including the fact that it will save you time and money in the long run. A real estate professional in the area can help you figure out whether or not a townhouse is a right investment for you. If the location or amenities of a certain townhome community are important to you, you’ll want to talk to a local expert before making a final decision.

Pros and Cons of Townhouses: What You Need to Know? Read More »

Taxes Grievance in Long Island

Things You Should Know About Taxes Grievance in Long Island

Leave a Comment / Cash Home Buyers, Tax /

When property owner feels that they are overpaying on their property taxes or that the assessed worth of their home is lower than it actually is, they file a tax grievance. It’s then decided whether or not a tax complaint can be filed. Afterward, the property is assessed by the tax appeals board. If a tax grievance company determines that the town has over-assessed the property or that the property’s taxes are excessive, they can begin the reduction procedure. The property owner will receive a letter from the tax grievance firm indicating that there is no credible tax grievance case if the company cannot determine that the property has been over-assessed. In addition, a property’s taxes are not determined by the tax assessment of nearby residences. You may not be comparing apples to apples if your neighborhood’s other homes are undervalued. Reducing your property taxes is possible on both business and residential properties. A grievance can be lodged if a tax has been imposed on a property within the jurisdiction of a town and if the owner of that property is paying that tax. In both commercial and residential properties, a tax grievance firm works closely with residents to secure them the lowest feasible tax decrease. How Are Property Taxes Assessed? Property owners must pay taxes on the basis of an assessment made by the town, which includes the surrounding land as well. Schools, police enforcement, and water and sewage services are some of the local institutions that receive funding from these taxes. As a result of the taxes paid, the town/county is able to maintain itself and fund jobs that would otherwise go unfunded. According to the assessed valuation, the property owner is obligated to pay the town a certain amount in taxes. In certain cases, property owners are concerned that their property taxes are too high and want to take steps to reduce their payments. Attempts to reduce property taxes can only be made after a tax grievance has been submitted. When and How Often You Can Make a Claim? After contacting a tax reduction agency, an evaluation of your property will be performed. To verify this information, the town’s public records will be consulted. If the tax reduction service determines that the property is over-assessed, you may be able to file a petition for a tax reduction. Fortunately, if your petition is rejected by the town, you have the option of submitting a new one each year. Every year, you have the possibility to file a tax grievance because the value of your home depends on the continuously changing real estate market. How Does Filing a Grievance Affect Property Taxes and Other Government Programs? It’s a common concern among property owners that filing for a property tax refund may have an impact on their taxes, as well as any tax-related programs they may be participating in. Property tax exemptions will not be affected by a complaint. Filing a tax grievance does not give you the right to raise property taxes. An adequate disparity in assessments must be found before any grievance petition can be submitted. If there is not enough of a discrepancy, no complaint will be filed. The STAR and VA programs will not be affected by filing a tax grievance. You can save money by filing for a property tax reduction, but it will not increase your tax payments or change the present programs you are a part of. There will be no official visits to your home because the assessment is done by tax reduction consultants using public information. The town’s properties are appraised based on public information, so there will be no surprises for the town’s leaders. If you’re a Long Island property owner looking to maximize your savings, consider partnering with Cash Buyers NY. Not only do we specialize in quick and hassle-free cash purchases, but we also understand the importance of managing your property taxes effectively. At Cash Buyers NY, we offer a unique advantage – not only can you sell your property for cash in Long Island, but we can also guide you on potential property tax savings. Our experts are well-versed in the tax grievance process, helping property owners like you reduce their tax burdens.

Things You Should Know About Taxes Grievance in Long Island Read More »

Benefits of Accepting a Cash Offer

Benefits of Accepting a Cash Offer On a Home in New York

Leave a Comment / Cash Home Buyers, Tips /

When it comes time to sell your New York property, have you considered the Benefits of Accepting a Cash Offer? Instead of listing your house for sale on the New York housing market, you might want to think about selling your house for cash. Working with a New York cash house buyer has many advantages that you may not have considered. If you’re selling a house in New York, you need to take into account the amount of time, effort, and money it will take to make the deal. If you’re planning to sell your home, you need to take into account the expenditures of staging and photography, as well as cleaning and maintenance. In order to compete in the Real – estate market with other house sellers, you may also need to make significant improvements to your home. When you sell your house for cash in New York, you won’t have to bother about a lot of these things. As a result, let’s take a closer look at the true advantages of accepting a cash offer on a house in New York.   Benefits of Accepting a Cash Offer Accepting a cash offer on your house might sound surprising, but there are several advantages to doing so. Selling a house for cash has several advantages: it may be completed fast, there are no hidden costs, you retain complete control, and you are not required to do any repairs or modifications to the property. Here are the few most important benefits of accepting a cash offer on your house:   1- The sale is made more quickly First and foremost, cash sales can be completed in a matter of minutes. There is no need to wait for a mortgage or loan approval when buying a home with cash. As soon as you accept a cash offer, the closing process might begin right away if you choose it. Within a few weeks, the entire sale may be completed. Cash buyers can be a great option if you need to sell your New York home quickly because of a life change, relocation, or other financial situation.   2- There are no Realtor or Commission Fees You can save money on commissions by working with a cash buyer instead of an agent or a broker. By taking a percentage of the final sale price, real estate brokers earn their money. Four to six percent of the ultimate transaction price is not uncommon for this fee. Despite the fact that this may not seem like much, when added together, it can be substantial. If your home is worth $250,000 and the commission is 6%, the real estate agent will pocket $15,000 from the sale. A large portion of your profits will be slashed by it. If you’re considering selling your New York home to a cash buyer rather than a market buyer, keep this in mind. No commissions or fees are charged by cash purchasers.   3- Sell As-is One of the perks of selling your New York home to a cash buyer is that you can sell it as-is. To put it another way, you can sell your house in its current state no matter what. In any case, you don’t have to do anything if the house is in bad shape, has mold or flooding, or was inhabited by a hoarder in the past. Take Away the Key Regardless of any of the above, homebuyers will buy your house.   4- Streamlined Sale There shouldn’t be any hiccups along the way while working with a cash buyer to sell your house. At CashBuyersNY, we aim to achieve that goal. Sell your house with us and we’ll make sure that you’re treated fairly, given all the information you require and given the freedom to make an educated decision. There is no need for you to make any repairs or pay commission fees as we take care of all the intricacies and heavy lifting for you.   5- You Have the (Negotiation) Advantage While the process of selling a home on the market can be stressful, selling your home for cash allows you to have far more control over the outcome. You are free to accept or reject an offer from a cash buyer, but you are not obligated to do so. If you’re dealing with a respectable cash buyer, they’ll make you an offer and explain how they arrived at it, but the decision to proceed is ultimately yours. And if you accept the offer, you get to set the closing date of your own accord. If you’d like to sell your home quickly, no problem. However, you can work with your cash buyer to push the closing date back a few months to accommodate a move or another key event. There are cash purchasers like Leave the Key Homebuyers who will work with you on your schedule and assist you to get the best potential result.

Benefits of Accepting a Cash Offer On a Home in New York Read More »

©2024. All Rights Reserved By Cash Buyers NY