What are you planning after the dog days of summer are gone?

Philip A Raices

Now that the summer is passing by your rear view mirror, have you figured out your plan to sell, invest, purchase or rent this fall?

Although I have talked and conversed with many, many sellers, investors, landlords, purchasers and tenants this year, to ascertain how and what they are thinking and pondering about in their next move into or out of this strong market, I have come to several conclusions.

The first one is that the market is not waiting for anyone to decide what to do, it’s still moving along at a very brisk pace with its limited inventory (sales have slowed due to this) and over the top demand.

That’s not to say that you can price your properties at any price and someone will grab it at any price.

Although there have been sales at the asking price and above; whereby, the market felt that the price was below market or that they realized that they “needed that home” and not just wanted it. They weren’t worried or concerned about the long-term value, since many homes have doubled in value in a 14-20 year period of time.

Most important is if inflation kicks in, which just might happen down the line, values could escalate faster, due to replacement costs for building and renovating and upgrading. However, most places are selling at market value as long as there are comparable sales that justify the final sale price.

But when financing some banks are more conservative than others and they essentially will determine whether or not the price is correct and whether or not they might ask the buyer to add more money into the transaction or not.

I have seen buyers pay out of pocket, 30-40 percent or more and they have, what we call “more skin in the game” compared to other buyers who normally will pay a total of 20 percent with an 80 percent mortgage.

Obviously, paying outright for your purchase eliminates the bank financing and the majority of sellers will go in that direction as opposed to worrying whether or not an appraisal will, as we say, “comp out with the existing sales” and enable the purchasers to receive a commitment for their mortgage.

Not all buyers will have the extra money to put up if the appraisal is short of the sale price. But if you love that home, beg, borrow and steal to get that extra money!
My second observation is that although interest rates are still at historic lows, prices have continued to escalate.

From May of 2017 through May of 2018, there has been an average 8.1 percent in most areas, (as per The National Association of Realtors -N.A.R. economist, Lawrence Yun) and as I have mentioned in previous articles.

Although the majority of salaried individual’s incomes, have not really kept pace with the cost of housing, it has been shown that it is still more economical and advisable to own than to rent in 48 out of our 50 states.

However, those that scrimp and save and are diligent with their money will always strive to buy their own home. How else can one keep their wealth intact, take advantage of whatever tax deductions that are allowed, and keeping up with inflation, while increasing and building upon one’s financial picture for the long term.

Homeownership is and will always be the single most valuable asset that most people possess and until something radically changes that fact; people will continue to strive for that “picket fence” that they still desire as the “American Dream The stock market is another viable path for a few who know how to navigate and make a profit.

However, for the majority, it’s a slippery slope that is, in most instances a loser for many. Owning a home, developing roots in the community, new acquaintances and some long-term friendships and seeing your children grow and most important schools are other crucial and critical reasons to choose as a safer way to grow your wealth.

We all can touch our homes and it will be there tomorrow morning, as long as you pay your mortgage and taxes. But the other path of stock ownership can be here today and gone tomorrow.

I call it gambling and some might disagree with me; because they are professionals. I do know that many have made money in the stock market and also people have lost money in the real estate market too.

But those who are uneducated in either venue will have a hard time earning money either way unless they know what they are doing. But homeownership is something a lot different.

So, if you are a seller, it’s an amazing market to sell in and if you are a buyer, don’t hesitate to continue looking; just don’t be to0 picky and have some trade-offs so you don’t miss the boat with these low-interest rates!

You can always find a second “dream home” as your equity increases; because your rental will not!

Philip A. Raices is the owner/Broker of Turn Key Real Estate 3 Grace Ave Suite 180, Great Neck. He has earned designations as a Graduate Realtor Institute and Certified International Property Specialist. Receive regular “FREE” updates of sold homes in your area and what your home would sell for in today’s market. He can be reached by email, at, or by cell (516) 647-4289

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Philip A Raices

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