It’s very rare in today’s market that a home buyer walks into a home a makes an instant decision to buy.  We bought our Victorian home in Peconic that way.  We had been looking for a very different type of property, but when I stepped over the threshold, I knew it was “the one!”

With so many properties on the market and especially here on the North Fork, with so much diversity in housing styles and unique locations, it is often a process of elimination and compromise.  How do you know when a home is truly the one you want to buy?

 The home feels “right” from the moment you drive up to the property. That is exactly what we experienced.  We walked through the home and I left wondering why it wasn’t sold and how quickly we could make an offer.

The positives more than outweigh the negatives.  Perhaps the waterfront location and views, which cannot be duplicated, make the need to redo the kitchen and baths not seem to be as much a deal-killer as it was in other homes.

 You can see your own family and furniture fitting in the home.  It’s about the furnishings and wall color, it’s more about the overall ambiance of the home – how the light comes in, where the kids will play, where you spend your quiet time — that is what draws you in.

As you walk through the home, the remodeling ideas don’t frighten you, but actually excite you.  If you walk through, seeing where the needed additional bedroom will go or where a wall could be removed to open up the space, and you’re not discouraged, this may be the one.  Sometimes, the home is so perfect for you, you don’t want to change a thing!

Any other homes you see, don’t interest you. I remember seeing several properties with our broker after we had seen the Peconic home and I just went through the motions.  We knew the Historic 1860’s Italianate Victorian was the house for us and we made an offer and have enjoyed the home, running a B&B for many years!
When you find “the one,” it’s time to work with your Realtor and make that deal!

At Beninati Associates we excel in helping buyers find the right house for them.  We know our marketplace, we listen to your needs, we care about matching your desires and wants with the right home and we get results for you!   Call us at 631-765-5333, visit our website at www.BeninatiAssociates.com or come visit our office and sit down with one of our consultants in person.  We’re open seven days a week!

Although the program has been in existence for 2 years, most of us have not even heard of HARP (Home Affordable Refinance Program).  The program was intended to help homeowners who don’t have at least 20% equity in their home to refinance, by using government agencies – Freddie Mac or Fannie Mae – to back the loans.  The program has not worked is because lenders have imposed such strict loan requirements, that many homeowners can’t qualify.

Recently, Federal regulators announced an overhaul to the HARP program that would ease up some of the requirements, such as, opening up the program to home owners owing more than 125% of their home’s value, reducing the appraisal and underwriting requirements and dropping or waiving loan fees.  One important requirement is that borrowers must be current on the previous six months’ mortgage payments.

This is good news for those of us who have high interest loans and have been reluctant to seek refinancing because of all we’ve been hearing about how much more difficult it is to qualify.  It’s also potential good news for the economy, since freeing up funds that now go toward mortgage interest will allow people to invest in projects that have been placed on hold, or buy a new car or even restore savings.

If you would like to refinance your home loan but were afraid that you would not be able to meet the rigid bank requirements, the revamped HARP may be just what the doctor ordered!  Call you bank or mortgage broker and see if you qualify – you have nothing to lose and everything to gain!

For professional advice on all aspects of buying or selling real estate, call Beninati Associates at 631-765-5333, email us at realtor@beninatiassociates.com or visit us at our offices on Main Road and Horton’s Lane in Southold.  We listen, we really care and we get results for you!

If Warren Buffett, CEO of Berkshire Hathaway, says it – does that mean it will happen?  Hopefully yes it will in 2012!!!

“The U.S. housing market disappointed Warren Buffett last year, but he hasn’t given up hope.

Buffett said in his annual shareholder letter, posted this weekend, that he was “dead wrong” when he predicted last year that the rebound in U.S. home prices would begin within a year.

This year, though, he’s betting again that the housing market will recover, and for an interesting reason: hormones.

As Buffett explains it, the housing market is currently depressed because young Americans have stayed at home rather than going out and setting up their own households.

“People may postpone hitching up during uncertain times, but eventually hormones take over,”  Buffett wrote in the letter to shareholders in his investment company Berkshire Hathaway. “And while ‘doubling-up’ may be the initial reaction of some during a recession, living with in-laws can quickly lose its allure.”

That is not the entirety of his argument. He also says that home builders are not creating enough new supply. As a result, the excess inventory that built up after the financial crisis is slowly disappearing, paving the way for new demand.

During an appearance on CNBC on March 5^th, Buffett said he would buy up millions of U.S. homes if it were possible.

Data out Monday seemed to support Buffett’s contention. The National Association of REALTORS® announced that the number of people buying used homes in January rose to a 21-month high.”

There are strong signs that our North Fork market is improving.  If you are thinking of exploring the housing market  here, start now.  Call us at 631-765-5333 or visit our website at WWW.BENINATIASSOCIATES.COM or email us at Realtor@ BeninatiAssociates.com. We’re ready to serve you 24-7!!!!

Some home shoppers feel that if they work with a broker they may not see all that is on the market and instead go to open houses and drive around looking for “for sale” signs.  By searching in this way, they are missing opportunities to see homes where owners have opted not to have signs or open houses.  The best way to assure that you are getting the proper exposure to the market  is to select a competent Realtor and then honestly sharing what he or she needs to know to pinpoint the properties that match your needs and wants.

Here are five ideas on how to get the best result when working with a Realtor:

1. Telegraph That You Are Serious.  Do your homework and know generally what you wish for in a home. Plan to make a deal within 3-4 months.  It helps the agent focus on what will work for you.

2. Find Homes for Sale That Appeal to You.  Go on line, use magazines – show the agent examples of what you like and explain why.  Tell them a bit about how you live and the type of home you are currently in.

3. Declare Your Don’ts.  As crucial as what you like, is what you really dislike.  But  separate the “prefers” from the “absolute hates!”  You may have a major aversion to ranch homes, but  would consider one if it had high ceilings.  Whereas, even though you want a historic home, you would not want a house on a busy main street because you have small children.

4. Overshare.  The more details you share with your Realtor the closer you will come to seeing homes that you will want to buy.  What do you intend to use the house for – year-round or weekends?  Who else will be regular visitors and are there special considerations – small children, older family members who can’t go up and down stairs, etc.?

5. Be Budget Blunt.  It’s best to discuss this with your Realtor at the onset.  You may find that you will have to adjust your expectations based on the marketplace.  You may also wish to get a sense of how much house you can afford based on your budget.  With current low interest rates, you may be pleasantly surprised by how much house you can afford.

It’s always best to work with a knowledgeable local Realtor, especially if you are not familiar with the area.  There are so many aspects of the location that you will need to know, such as local town codes- what you can and cannot do to a home, permits needed, etc.  Why would you not work with a pro!

At Beninati Associates, we have the expertise to help you select  the right home for you and your family. We don’t use high pressure sales techniques, we recognize that this is a large investment and you need time to assess all the issues before you make a decision.  Call us at (631) 765-5333 or email us at Realtor@BeninatiAssociates.com, we’ll help you through the process.

We listen, we care and we get results!

I recently worked with a young professional couple who were looking for a weekend home on the North Fork.   As we worked on finding them the right property, I realized how really smart it was for young people to consider investing in real estate at this point in the market – prices are low and interest rates are low.  I also thought about how just a few short years ago, it was becoming almost impossible for younger people to buy anything without assistance from their parents.  How things have changed in just three short years!

The experience of this lovely couple was a good one to share.  If you are considering a home purchase, here are some issues to consider before, during and after you buy:

1.     First and Foremost – Assess Your Finances.  You must have some capital to invest.  A 10% down payment is doable if you have good credit; FHA loans offer a much lower down payment.  Remember you need funds to close – your Realtor can give you a “ball park” figure.  Most important is working up the monthly costs including taxes, insurance, mortgage and maintenance, including some money set aside each year for capital improvements.

The plus side of the finances is that you will have a healthy tax deduction that will improve your cash flow.  Your tax person or financial planner can help you estimate this.

2.     Do Your Homework.  Take the time to get to know the area you are interested in. Sit down and make a list of “must haves” and “deal breakers”.  Go over this with your Realtor, to be sure you are being realistic about what you can expect at you desired price point.  After several house hunting trips, this couple realized that they had to raise their price point to get the kind of home they wanted.  They went back, reassessed and came back with a better game plan that resulted in a great deal, with all their “must haves” and more!

3.     Work With a Professional Realtor.  So often, what a Realtor brings to the table is underestimated.  A professional Realtor bring knowledge of the area that will save you time by directing you to properties that meet you requirements and avoiding properties that don’t suit your needs.  A qualified Realtor will also give you a reality check on expectations of the marketplace.   A Realtor as your “buyer’s agent” with strong negotiating skills will help you make that deal and possibly save you money.  A local Realtor will provide you with references for community professionals – contractors, engineers, attorneys, maintenance people, bank mortgage lenders, etc.- we are often the main contact for newcomers  to the community.  And I’m happy to say most of our buyers have become lasting friends!

So, all the young people out there who are thinking of buying on the North Fork, give us a call.  One-third of our sales team is under 40 – so we can relate!  We’ll help you get acquainted with the North Fork market and we would be happy to talk finances with you anytime.  Call our office at 631-765-5333 for an appointment!   At Beninati Associates, we listen, we care and we get you results!!!!

I generally don’t focus on political issues as it relates to the business of real estate, but the recent payroll tax reduction that was funded by increased taxes on mortgages, and the 2013, 3.8% Medicare tax on “unearned income” including capital gains from home sales and rental income, make me wonder whether our government recognizes that the real estate industry is hurting.  Instead of working on solutions to help people keep their homes from foreclosure and stimulate growth in housing and sales, they are adding taxes to already overburdened property owners!

Here are the facts, you be the judge.

Mortgage Fee Increases

The recent two month extension of the Payroll Tax reduction was funded by those buying homes or refinancing in 2012.  Two more months of the Social Security tax cut amounts to $33 billion. To pay for this tax cut,  the fee that the government-backed mortgages( Fannie Mae and Freddie Mac), charge to insure home mortgages will be permanently increased.  The typical person who buys a home or refinances starting on Jan. 1 will have to pay roughly $17 more a month for their mortgage, thanks to a fee increase included in the payroll tax cut bill.

3.8% Medicare Tax on Investment Income

On January 1, 2013, a  Health Care Bill (passed in 2010) imposes a new 3.8% “Medicare Tax” on “net investment income” for  joint filing  taxpayer’s with an adjusted gross income (AGI) over $250,000 ($200,000 for single filers) . The tax is generally levied on non-business income from interest, dividends, annuities, royalties, rents, and capital gains including property sales.

At the present time,  a married couple filing jointly can have and exemption up to $500,000 in capital gains on the sale  of their home ($250,000  for single filers) without paying tax on the gain.  However, come 2013, if the gain on the sale of a primary residence exceeds the exemption,  it will be subject to the 3.8% tax,  for taxpayers with AGI over the amounts noted above.

The scheduled 3.8% new tax on home sales and unearned income in 2013 and other Medicare taxes will raise taxes by more than $210 billion to pay for the Health Care legislation. The National Association of Realtors called this new Medicare tax on unearned income “destructive” and “ill-advised” and warned it would hurt job creation.

Just as our real estate market is showing signs of recovery, laying a tax burden on an already fragile marketplace, is out of step with what is needed to grow our economy.

If are thinking of selling your home and would like to know how this tax may affect you, speak to you tax planner or call me at 631 765 5333.  I would be happy to review the Medicare tax with you.  Certainly, if you have a potential capital gain of $200,000 or more and are planning to sell, it would be prudent to understand the impact of the tax on you.

*Sources: USA Today 12/17/2011; The Mortgage Reports, 12/30/11; “Medicare 3.8% Tax on Net Investment Income”, Schwabe, Williamson & Wyatt, 1/5/1011; “Health Insurance Reform: Frequently asked Questions – New Medicare Tax on “Unearned” Net Investment Income”, www.REALTOR.Org, National Association of Realtors.

Along with the most moderate winter weather we have seen in quite some time, comes cautious optimism from many pundits of the Real Estate Market.   the year 2011 was a mixed bag here on the North Fork.  Weather played a definite role in the early part of the year with record snow storms and a general inability and lack of momentum on the part of the consumer to get out and  look at homes for sale.  Then in August, traditionally  the most active month for home shopping on the North Fork, we had a major storm and power outages.  The good news, things picked up again in the fourth quarter of last year and  continued through the holidays.

What are some of the key Real Estate Market predictions for 2012?

High-end and waterfront properties outperformed the market last year.  This trend will continue in 2012. There was a definite emphasis on turnkey properties.  Staging continues  to help move properties.  We believe that interest rates, now at historic lows, will inch up a bit in 2012 and that financial institutions will be easing up on their stringent lending practices.  Finally, lower real estate prices will continue to stimulate sales.

What does this means to you as a buyer or a seller in 2012?

If you are a buyer, the sooner you make your purchase, the lower your interest rate and the lower the purchase price will be!  Buyers should be pre-approved by a lender before making an offer on a home.  Also, consider making your best offer if you really want a property.  Extremely low offers send the wrong message to sellers and may not get a counter, thus deflating the ability to negotiate.

If you are a seller, properly price your home and carefully select the Realtor who will be your partner through the entire sale process. Do your homework when you select your agent.  Find a REALTOR with a good track record – one you trust and one dedicated to not just listing your home but selling it too!

The team at Beninati Associates will get you the best results – whether you are buyer or a seller or perhaps both! We are professional, trustworthy and we have an exceptionally high rate of success in getting the deal done.

For a relationship based on trust, knowledge and expertise – whether buying or selling – choose Beninati Associates – we’ll exceed your expectations!

A colorful history can add significantly to the value of a home.  Researching the provenance of a property you are interested in buying can be both interesting and ultimately profitable.  The market value of a home will be greater if it has historic designation, retains original architectural features or was designed by a notable architect, or lived in by a celebrity who hosted famous guests.  If you restore an historic property and re-purpose it for business, you may be entitled to significant federal and state tax credits.

If you have an interest in older homes, we have several on the market today that have historical significance.  Two of our featured properties have been beautifully restored and offer a great deal of history – the “Belvedere” in Peconic  is an Italianate Victorian built in the 1860’s and has been the subject of the HGTV program, “If Walls Could Talk,” and many magazine and news features.  It is delightful both in its history and charming environment.  The Wells-Fleet House in Cutchogue dates back to 1680 and was originally a honeymoon cottage!  Both have business zoning and offer commercial possibilities as well as residential use.

Buying an older home that needs renovation can be rewarding, enjoyable and lucrative – there are tax incentives for renovating and converting historic homes for business use.  Some tax credits can be carried forward and save you income taxes for many years!

If you’re thinking about buying a business location call us at Beninati Associates today  – we have MANY possibilities!

For professional advice on all aspects of buying or selling real estate, call us at 631-765-5333, email us at realtor@beninatiassociates.com or visit us at our offices on Main Road and Horton’s Lane in Southold.  We have first-hand experience with historic renovation!

This has been a year of emerging yet slow recovery. We’re looking forward to a  more robust real estate market in 2012 – the signs of a turn-around are definitely here! Although there are still some bumps in the road to recovery, it’s important to take time to be grateful for all the blessings in our lives.  May the verse below inspire you to engage in the dance of life and enjoy every moment!  

“We hope you never lose your sense of wonder, May you get your fill to eat but never lose that hunger. 

 May you never take a single breath for granted, May love never leave you empty handed.

  We hope you still feel small when you stand beside the ocean, Whenever one door closes, may another open.

  Please give faith a fighting chance, And when you get the choice to sit it out or dance…

              We hope you dance!   We truly hope you dance!

  We hope you never fear those mountains in the distance,Never settle for the path of least resistance.

  Living may mean taking chances, but they’re worth taking. Loving might be a mistake, but it’s worth making. 

  Don’t let some hell bent heart ever leave you bitter. When you come close to selling out – please reconsider.

  Give the heavens above more than just a passing glance, And when you get the choice to sit it out or dance…

              We hope you dance! We truly hope you dance!”

 Adapted from a popular song recorded Lee Ann Womack, “I Hope You Dance”

 All of us at Beninati Associates wish you a Blessed  and Merry Christmas and a Very Happy and Prosperous New Year!                

We are pleased to introduce our new Sales Associate Chris Drum.  Chris has recently moved to the North Fork from Florida, but he is a true New Yorker – born in Brooklyn, brought up in Manhattan and Manhasset and lived in Long Beach before he moved to the west coast of Florida.

Chris has spent over 10 years in commercial sales and leasing.  He has spent over 15 years in sales and marketing.  He attended Long Island University at C.W. Post and majored in Business Administration and holds degrees in Computer Network Administration and Information Technology.  Chris brings strong internet marketing skills to our team and we are already seeing the results of his good work in this area!

Chris is a quintessential service professional and will always strive to exceed a client or customer’s expectations.

Chris is also a chef! He is a graduate of the Long Island Culinary Academy and worked in a number of fine restaurants on Long Island.  Although, he is now a Realtor, he still makes the best Bolognese sauce on Long Island!

Please join me in welcoming Chris Drum to our Sales and Marketing Team – we wish him much success and are delighted to have such a talented addition to our staff!

Come join Chris and the rest of the Team at Beninati Associates.  We are growing and need enthusiastic go-getters!  Grow with us into the future.  Join an upbeat, creative, winning, team that is a leader in Real Estate on the North Fork. Call Marie in confidence at (631) 235-8980.