real estate investing Archives - Handsome Homebuyer

Oct 2023

Selling A House to an Investor in Long Island

Glenn Haskings2024-04-17T09:39:01-04:00October 9, 2023|commercial property, real estate agents, real estate investing, Sell My House, We Buy Houses|

Are you looking to sell your house in Long Island and wondering how to do it quickly and efficiently? Perhaps you’ve heard about home investors, but you’re unsure what they do and how they can help you. In this article, we’ll explore the world of home investors, what they do, and how you can sell your house to them for a hassle-free experience.

What Is a Home Investor?

A home investor, often referred to as a real estate investor or cash buyer, is an individual or company specializing in purchasing properties intending to renovate, rent, or resell them for profit. These investors are typically well-funded and can offer homeowners a faster and more convenient way to sell their homes than traditional methods.

What Do They Do?

Home investors primarily focus on buying properties quickly and without the usual hassles associated with traditional home sales. Here’s a closer look at what they do:

Fast cash offers: Home investors offer sellers the advantage of receiving cash offers for their properties, often within days. This particularly appeals to homeowners who need to sell their homes quickly, whether due to financial constraints, relocation, or other personal circumstances.
As-is purchases: Investors are willing to buy houses in their current condition, meaning you don’t need to invest time or money in costly repairs or renovations before selling.
Streamlined process: Home investors simplify the selling process, eliminating the need for real estate agents, inspections, appraisals, and lengthy negotiations. This facilitates the transaction and can lead to a faster closing.
No contingencies: Investors typically don’t require financing contingencies, which can often cause delays and uncertainty in traditional real estate transactions.

How Can I Sell To Them?

Selling your house to a home investor in Long Island is a straightforward process that can be completed in a few simple steps:

Contact the investor: Begin by reaching out to a reputable home investor or company. Handsome Homebuyer, for example, is a well-known home-buying company in Long Island with a strong track record of satisfied customers.
Property assessment: The investor will schedule a visit to your home to determine its condition and value. This step allows them to determine a fair cash offer for your property.
Receive a cash offer: After the assessment, you will quickly receive a fair cash offer for your property. This offer is typically presented within a short time frame, often within 24 hours.
Accept the offer: If you’re satisfied with the offer, you can accept it, and the investor will initiate the closing process. You don’t need to make any repairs or invest further in your property.
Close the deal: The closing process with a home investor is usually faster than traditional home sales. You can expect to have your cash in hand within a few weeks or even sooner.

Sell It Fast To Handsome Homebuyer

Handsome Homebuyer is a trusted name in the Long Island real estate market. With a long history of satisfied customers and a commitment to making the home-selling process as smooth as possible, they are an excellent choice for owners looking to sell their properties quickly.

Here are the advantages of selling your home to an investor like Handsome Homebuyer:

Speedy sales: According to Zillow, the average time it takes to sell a house on the traditional market can range from 55 to 70 days. In contrast, selling to a cash buyer can often result in a closing within weeks.
Avoiding repairs: A study by Houzz found that the average cost of home renovations in 2021 was approximately $18,000. When you sell to an investor, you can avoid these costly renovations and sell your home as-is.
Reduced stress: According to a survey conducted by Which? Mortgage Advisers, selling a home can be one of life’s most stressful events. Home investors aim to minimize this stress by simplifying the process and providing quick solutions.

Read Our Reviews

If you’re asking, “How do I sell my house to an investor?” consider working with a reputable home investor like Handsome Homebuyer. To discover how much your home is worth and receive a free instant cash offer, visit Handsome Homebuyer’s testimonials page.

The Bottom Line

Selling your house to a home investor in Long Island can be a smart and efficient choice, especially if you’re looking for a speedy and hassle-free sale of a house, commercial property or land. With our excellent reputation and commitment to customer satisfaction, Handsome Homebuyer is a reliable option for homeowners seeking a quick and convenient way to sell their properties or to sell your house fast Long Island NY.

Mar 2023

Long Island Real Estate Statistics

Glenn Haskings2024-04-16T14:45:00-04:00March 1, 2023|commercial property, flipping houses, foreclosures, house selling tips, real estate investing|

Long Island Real Estate Statistics 2023-2022

Long Island’s median home price reached a record high of $560,000 in 2022, up 15% from the previous year.
Home sales on Long Island totaled 9,408 in 2022, a 17% increase from the prior year.
The average home value on Long Island is $541,700, up 14.5% from the previous year.
The median price of luxury homes on Long Island increased by 29.3% in 2022.
Homes on Long Island are selling on average for 6.8% above their asking price.
The average rent in Long Island NY was $2,292 in December 2021

Key Long Island Real Estate Stats Explained

Newsday.com reports that Long Island’s median home prices have reached a record high of $560,000 in 2022, an increase of 15% from the previous year. This statistic suggests a strong demand for housing on Long Island, driven by low-interest rates, an influx of homebuyers from New York City, and limited housing inventory. This trend may significantly impact affordability and the overall housing market on Long Island.

LIBN.com highlights the increase in home sales on Long Island, with 9,408 sales in 2022, a 17% increase from the previous year. This statistic suggests that the real estate market on Long Island is thriving, with a higher demand for homes and more buyers entering the market. However, this may also lead to a need for more available housing options and increased buyer competition.

Long Island’s average home value is $541,700, an increase of 14.5% from the previous year. This statistic suggests that Long Island’s real estate market is a strong seller’s market, with high demand and limited supply. It may also impact Long Island’s overall economy, as a strong housing market can lead to increased economic activity.

Other sources also provided valuable insights into Long Island’s real estate market in 2022. For example, a Douglas Elliman Real Estate report suggests that the median price of luxury homes on Long Island has increased by 29.3%, indicating a strong demand for high-end properties. Meanwhile, a report by Redfin.com shows that Long Island’s housing market has become increasingly competitive, with homes selling 6.8% above their asking price on average.

Long Island’s real estate market in 2023 is thriving, with a record-high median home price, increased home sales, and a strong seller’s market. While this may be good news for sellers and the local economy, it may also lead to affordability concerns and limited housing options for buyers. As such, it will be necessary to closely monitor Long Island’s real estate market trends in the coming years.

Cited sources:

More Facts About Long Island NY Real Estate Market Trends

The median home value in Long Island, NY, is $542,876 as of December 2021. This suggests that the real estate market in Long Island remains strong. (Source: Zillow)
Redfin found that the median home sale price in Long Island was $509,000 in December 2021, up 26.6% from the previous year. This highlights the trend of rising home prices in the area. (Source: Redfin)
The number of homes sold in Nassau County, Long Island, increased by 29.5% from 2020 to 2021. This suggests that the real estate market in the area is experiencing growth. (Source: Long Island Board of Realtors)
The average rent in Long Island was $2,292 in December 2021, up 4.4% from the previous year. This highlights the trend of rising rental prices in the area. (Source: RentCafe)
The number of building permits issued in Long Island in 2021 was the highest in a decade, suggesting a growing demand for new construction. (Source: Newsday)
The luxury real estate market in Long Island saw a surge in sales in 2021, with 248 homes priced at $2 million or more sold in the first three quarters of the year. This suggests that high-end real estate in the area is in demand. (Source: The Real Deal)
A study by DataUSA found that the most common type of housing in Long Island is single-family homes, which comprise 61.3% of all housing units in the area. This suggests that single-family homes are a popular choice among homebuyers in the area. (Source: DataUSA)

Long Island Business News found that the commercial real estate market in the area is experiencing a surge in demand for industrial and warehouse space, driven by the growth of e-commerce. (Source: Long Island Business News)

May 2022

How to Build Credit Fast in The Real Estate Industry

Charles Weinraub2024-04-18T09:34:25-04:00May 9, 2022|real estate investing|

Are you looking to start a journey into real estate investment? The size of your credit score
matters if you want to get that property of your dream. It’s important to understand how credit
score works, how it is calculated, and what you can do to improve your credit.

Let’s run a quick calculation:

Assume that you want to start investing and you have a high credit score that, for instance,
qualifies for an 80% LTV loan at a 6% interest rate with two points. If you want to buy a $500k
property with a rent of around $8k/month; you can get a loan of $400k, with your $8k due in
points. You will also be qualified for a payment of $2,400/ month.

Now, assume you have a small credit. You may not find a lender that will give 65% LTV, at
10% interest and four points. And that is if your credit score is not lower than 640.

That means your loan would be $325,000, and owe $13,000 in points at settlement and a
monthly payment of $2,852.11.

That’s a bummer!

How Credit Ratings Are Determined

There are three major credit bureaus: Equifax, Experian, and Transunion. They all quantify
creditworthiness slightly differently, using the same scoring models.

Your payment history affects your credit score the most. If you make a more than 30 days late
payment, it harms your credit score.

Following that is the percentage of available credit that you use. For instance, if you have a
credit card limit of $10,000 and a balance of $2,500, your credit utilization ratio is 25%. (At least
for that card).

Here’s How to build an awesome credit score.

Review Your Credit Report and Correct Any Errors

Every day, credit reporting agencies process billions of transactions. They can make a mistake
with such intensity, leaving your credit score negatively impacted. Below are things to look out
for:

Accounts that aren’t yours or that should be reported but aren’t.
Inaccurate delayed payments.
On-time payments recorded as late.
Deleterious public documents that aren’t yours (bankruptcies, liens, foreclosures, etc.).

Credit reporting agencies make errors, and you must correct them if you want to improve your
credit.

Get a Credit Card

While many households misuse credit cards, you need credit reports, hence, a credit card.

A secured credit card helps you boost your credit score. To get a secured credit card, you must
deposit a cash collateral. If you pay your credit on time, the credit card issuer will notify the
Credit Bureaus, leading to an improved score. But if you default, you lose credit points.

Remember that the purpose of a credit card is to maintain good records, so, do not overspend or
default on payments.

Apply for a Credit Builder Loan

The term “loan” is actually deceptive because you are the lender.
It works like this: you agree to pay a set amount of money over a set period of time, say $40 per
month for 18 months. The “lender” reports your payments as on time throughout the loan term,
and you receive your money after loan completion.
At least, the majority of it.

Request an Increase in Credit Line

Recollect how credit reporting agencies look at the lending ratio? You can improve this ratio for
spinning lines of credit (such as credit cards) by simply increasing the credit limit.

If you placed $1,000 on your bank card every month but your credit limit is only $2,000, you’re
using half of your credit limit each month.

Increase your credit limit to $5,000, and you’ll find that you’re only using 20% of your available
credit each month.

Creditors will be more willing to increase your credit limits as your credit history grows.

Report Your Rent Payments to Credit Bureaus

Rent payments to credit bureaus can help renters build credit quickly. Of course, you can’t
control everything. You’ll need to ask your landlord to collect rent using a reporting service. But
it also benefits them by encouraging timely rent payments.

Think About Credit Repair

While credit repair services are not for everyone, they can help you improve your credit faster.
They’ll handle credit reporting errors and disputes for you, and show you how to improve your
credit.

Explore Pay for Delete

With Pay for Delete, a credit collector agrees to remove a collections from your credit report if
you pay past debts.

It works like this: A collector reports every default and unpaid debts to the three Credit Bureaus,
negatively impacting your credit score and remaining on your credit report for seven years. To
mitigate the negative impact, you can strike a deal with a collector to remove such reports.

Good credit helps you secure valuable loans for real estate investments. You must consistently
monitor your credit to ensure that you have enough score to access tangible loans when a real
estate investment need arises.

May 2022

Which Investment Are Better: Crypto vs. Real estate?

Charles Weinraub2024-01-06T12:50:15-05:00May 9, 2022|real estate investing|

If you want to watch your money increase, especially without having to work for every cent, you should put it in the right place. People new to investing or who want to branch out from their traditional tactics may be unsure which field to pursue. While conventional investments such as equities and real estate are still available, modern investors have access to cryptocurrencies.
Crypto investment often allows greater ROI than traditional investments, however, the crypto market is volatile and there is a higher chance of losing your money to sudden dips. Real estate often presents a more stable form of investment; but has a tight market entry. Let’s explore crypto and real estate investments.

Real Estate Investment

Property is a tangible and valuable asset, where you can make money through rent, lease, and sale. Real estate investment is multi-faceted; you may flip houses, rent commercial spaces, or vacation properties. You can also buy a property to sell for profit in the future.

Pros

Excellent passive income source
High cash flow from rent
Long-term returns

Cons

It is not a fluid asset so you cannot sell a property anytime you want.
Property investment requires heavy capital.
Maintenance fees, including upgrade, repairs, and upkeeps add to the cost of managing a real estate property.
It is expensive to maintain

Cryptocurrency Investment

A cryptocurrency is a digital currency transacted over the internet and built on a Blockchain. Satoshi Nakamoto built Blockchain technology and the first crypto, Bitcoin, in 2019. Today, Bitcoin has the 8th largest market cap of all companies in the world. Cryptocurrencies are volatile, but they present an opportunity to make a lot of money. In 2012, the average price of a Bitcoin was $5.27. In 2022, almost a decade later, a Bitcoin averages at $51,190.

According to Finance Yahoo, most early adopters of cryptocurrency (people who invested in the early of crypto) have enjoyed more than 20,000,000% cumulative gains since 2011. With NFTs, play-to-earn games, and exchanges allowing investors to short sell or leverage, crypto is still a valid way to make a lot of money.

Pros

It’s easy to trade
Cryptocurrency has an unimaginable earning potential for short and long-term investment.
It has a high long-term earning potential
It is low maintenance: Trading fees and investment fees are very low, compared to real estate.
Easy Market Entry: With as low as $2, you can start investing in cryptos.

Cons

It isn’t a physical asset
It is high risk
It has little/no government involvement; hence, there are no guarantees of getting your money if the network is hacked.

Conclusion

Cryptocurrency and real estate investment are two distinct investment options. The smart investor diversifies his portfolios (invests some in real estate and some in crypto). The greatest strength of real estate is its passivity (you can earn money from rent in your sleep). For cryptocurrency, the easy market entry is a plus. For example, Coinbase, one of the biggest and most popular crypto exchanges in the world, accepts a minimum of $2 for investment. With only $2, Coinbase allows you to actively trade and make money from crypto.

Apr 2022

3 Ways to Become A Real Estate Investor

Charles Weinraub2024-01-06T12:49:57-05:00April 5, 2022|real estate investing|

Real estate investing is a great career, and I recommend that everybody become involved in real estate investing in some capacity because of the excellent returns it can provide. There are a lot of ways you can be involved: Lending money, buying and selling properties, owning rentals, and more. The key is to be honest with yourself, especially with regard to how much time you’re able to dedicate to the business and what makes you feel excited and motivated. You also need to have a firm idea of how much money you’re willing and able to invest.

After considering your options, if you decide you want to get involved in real estate investing, there are three paths I consider great ways to get started:

Above all, I recommend finding a mentor. I learned from experienced, successful real estate professionals including Carl Schiavone (head of the East Coast REA), with whom I trained for almost four years before setting out to complete my first deal. As a direct result of what I’ve learned from him, I’ve completed over 400 sales in the last five years. Mentorship will greatly increase the speed at which you learn the intricacies of real estate investing and help you achieve your goals more quickly. Your mentors are also an excellent resource to turn to when you encounter unexpected obstacles; they can help you navigate your way through whatever problems you run into.
Don’t rule out going to college to get your real estate investing education. There are universities that have exceptional programs, with highly experienced professors who have a history of success in the industry. Personally, I have a master’s degree from NYU in Real Estate Development. It was a two-year program, and during my time there I met some of the greatest minds in the world of real estate, which hugely accelerated my real estate investing career.
Finally, don’t be afraid to do things in a more independent fashion build up your knowledge base using the free (or inexpensive) tools which are available to you. Books which you can likely find in your local public library are invaluable sources of information which can help you get a grasp on real estate investing from wholesaling to the management of rental properties. Similarly, there are content creators on YouTube that provide great information on topics ranging from house flipping to marketing and prospecting. You’ll want to do some due diligence and see if there is consensus among these information sources on a given topic to make sure the guidance you take is trustworthy.

These are all excellent ways to learn how to become a successful real estate investor and set yourself up to take your first steps into an exciting, rewarding career to help people that need to sell my house fast Long Island. You may wish to begin with free or inexpensive sources of information, as part of the process of educating yourself is to perform some self-evaluation and be sure that you’re ready to take the leap before you commit serious time and money.

Apr 2022

Risk VS. Reward When Real Estate Investing

Charles Weinraub2024-01-06T12:49:41-05:00April 5, 2022|commercial property, real estate investing|

When investing, it’s important to think in terms of Risk vs. Reward. The type of investment you’re making, whether it’s real estate, stocks, art, or other investments, is less important than evaluating whether the potential return from any of the options available to you is worth the risk you’ll take by investing. The temptation is to invest in things you’re comfortable with; you may be familiar with real estate and so you might focus your investment solely in that area, but you should only do so when the risk and reward are properly balanced.

For real estate, abide by this guiding principle: The riskier the property is to invest in, the higher the potential reward must be. If you purchase a newly constructed property which is already performing well, the risk is low. Your upfront cost of purchase will be higher, and the return will be commensurately lower. Conversely if you are looking at a property that is older and need of some repair work, and potentially has some problem tenants that need to be evicted, your risk is much higher. To be worth considering the potential return needs to be that much greater, and the upfront cost of purchase needs to be much lower.

A more extreme example is construction of new commercial property, the riskiest real estate investment you can undertake. Factors which compound the risk are numerous, including lengthy construction times, financing risks, and the effects of market fluctuations. Due to the high level of risk involved, your upfront costs should be as low as possible.

To provide numbers as a point of reference, consider three hypothetical investment opportunities on Long Island:

A fully performing Class-A apartment building. If this is the building you’re going to purchase, you want to do so between a 4 and 5 cap
If you’re looking at purchasing a “value-add” type of property, you’ll do so at approximately an 8 to 8.5 cap.
Finally, for ground-up construction, the riskiest investment, you’ll want to between a 12 and 15 cap.

To reiterate, consider any potential sell my house fast investment, in real estate or otherwise, in terms of Risk vs. Reward. Know your capacity for risk before entering into any investment, and perform a thorough analysis to be sure that the potential rewards will be worthwhile.

Apr 2022

Long Island Real Estate Investor Predicted COVID. Want to Know What’s Next?

Charles Weinraub2024-01-06T12:51:33-05:00April 5, 2022|real estate agents, real estate investing, section 8|

In February of 2018 the real estate market had been riding high for two years and business was booming. But I felt something coming. One way or another, I knew, we were approaching the end of an era. I felt an economic shift coming. Granted, real estate moves more slowly than the stock market, it doesn’t change overnight. But at the time I started conferring with my friends and associates in the real estate industry and offered them a prediction: At the end of Q4 2019, there’s going to be some kind of economic upheaval that’s going to impact the country.

I wasn’t able to explain why at the time, I just had a hunch. As someone who has been fully immersed in the real estate industry for years, I recognize the cyclical nature of the market and I’ve developed an ability to sense its ebbs and flows. I felt confident that my prediction would come to pass. And sure enough, Q1 2020 saw the breakout of COVID-19, and all the economic fallout it caused in the U.S. and beyond.

I don’t claim that I knew a pandemic was about to sweep over the world. But I had known the market had reached a high which was vulnerable to disruption. Every 5 to 10 years, an economic recession occurs, with generally the same resultant impacts. What differs most frequently is the catalyst which kicks the recession off. In this case, it just happened to be COVID-19.

So what happens next? In situations where there is a minor recession, typically the government intervenes to artificially stimulate the economy to get it going again. Unfortunately, this has a tendency to set the economy up for a larger downturn at a later date. In this recent case, the government provided cash funds and flooded the market with money. 40% of all the country’s currency has been printed in the last two years! In my opinion this is going to lead to inflation, which we’re already seeing, but it will snowball as all this money continues to be disbursed. To counter this inflation the government will have no choice but to raise interest rates in response to sell my house fast Long Island. This has the effect of limiting the buying power of the public with regard to mortgages. Compare this to the 70s and 80s, another time when inflation became an issue and the government raised interest rates to get it under control.

The real estate market has benefitted from low interest rates for many years. The cyclical nature of the market and past history suggests to me that 2022 and 2023 will be good years for real estate and the larger economy. But by the second half of 2024 things will start to slow down and the U.S. will see a major economic correction featuring a significant change in interest rates resulting from the government’s current efforts to prevent a major recession.

Apr 2022

Why Real Estate Investors Love Section 8 Tenants

Charles Weinraub2024-01-06T12:49:29-05:00April 5, 2022|property management, real estate investing, rental property, section 8|

Section 8 tenants have negative stigmas associated with them. Investors fear that Section 8 tenants will be destructive and lead to costly property repairs. Another concern is getting less than the market rate for rental units, reducing income, or that collecting rent will be problematic. However in the vast majority of cases the potential downsides of renting to Section 8 tenants are greatly outweighed by the benefits.

The past few years, many landlords have had significant impacts on their rental incomes due to the COVID-19 pandemic. But for landlords renting to Section 8 tenants, the government is paying the majority of the rent. The tenants themselves are typically responsible for an amount equivalent to 30% of their income, in most cases just a few hundred dollars. The portion paid by the government is sent directly to the property owner at the beginning of every month, ensuring timely payment of the majority of rents without spending time on collection.

Another benefit of renting to Section 8 tenants is the involvement of case workers. Most Section 8 tenants have a caseworker who advocates on behalf of both the tenants and the landlords. They act as a bridge between both parties and help to resolve problems in a proactive manner which can prevent the types of landlord/tenant conflict that can occur in private rentals.

Most Section 8 tenants who secure housing through these programs were on waitlists for many years (in some cases as long as 7 years) before they get their vouchers. This makes them highly motivated to maintain positive relations with their landlords and avoid any actions which could result in the loss of their housing voucher. Additionally, the average Section 8 tenant stays in a rental unit for 11.5 years, as compared to approximately 2 years for tenants in private rentals. So, while monthly rental income is reduced somewhat by working with Section 8 tenants, consider how much greater the loss of income is from vacancies.

Section 8 (and other government program) including lease back “sell my house fast Long Island” tenants are worthy of your consideration as a real estate investor. Get in touch with local agencies which frequently hold forums for landlords to explain the programs and specifics such as pricing and how to meet the requirements for becoming Section 8-approved.

Apr 2022

Do Banks are Giving Houses Away?

Charles Weinraub2024-01-06T12:48:58-05:00April 5, 2022|flipping houses, foreclosures, real estate investing|

It’s a common misconception for new investors that bank owned properties (REO as they are referred to in the business) are the cheapest and easiest way to find distressed properties. The truth is quite the opposite. Ten years ago I took a one day class on real estate foreclosures because I was certain that banks were giving houses away to investors like myself who had the right connections. I completed the course and devised a plan to build relationships with REO brokers who would give me first dibs on any of these deals. My girlfriend at the time even went so far as to get licensed as a real estate agent so she could work at the premier REO brokerage on Long Island. We would have the inside track on all the deals and she would get commission when I bought and when I sold. Great plan right? In theory yes, but in reality it was anything but.

So why didn’t this plan work?

A number of reasons. First, by the time a property becomes bank owned the bank has already taken a significant loss and is looking to minimize their downside. Selling properties to investors at a discount only hurts them further. Second, most banks require properties be listed on the MLS, auction sites, and more to give them maximum exposure. Many banks go as far as to require a property to be publicly marketed for a minimum number of days before any offer can be accepted. Lastly, REO brokers aren’t willing to risk a bank relationship that took them years to cultivate. So the odds of them steering a deal in your direction is slim to none and slim just ran away. The truth is that bank owned properties are usually the most overpriced properties an investor can buy.

What can investors do to generate quality leads to purchased distressed assets ?

Simple, you need to generate a comprehensive marketing strategy and be consistent with it to find deals of people that want to sell my house fast Long Island. How involved the strategy becomes depends on how much business and the type of business you’d like to do. Marketing strategies include networking, TV, radio, mailers, cold calling, driving for dollars, organic social media, paid social media, PPC, SEM, events, sponsorships, and more. The more exposure you have the more opportunity you’ll get. For more creative real estate marketing ideas see the attached video

The Advanced Guide On How To Get Deals in Real Estate!

Apr 2022

How to Buy a Short sale in Real Estate

Charles Weinraub2024-01-06T12:48:54-05:00April 5, 2022|real estate investing, short sale|

A short sale occurs when a bank allows a property to be sold for less than what is owed to the bank. Investors as well as end users have been purchasing properties in this way for years. Typically, you see more short sales take place in states like New York and New Jersey where the foreclosure process takes many years.

So how does a short sale work? A property that is “under water” (more is owed on the mortgage than the house is currently worth) is listed by a real estate agent on the market as a short sale. Buyers will submit offers the same way they would on a non short sale. The highest offer will be brought to the bank for their review. At this point the bank sends either a BPO agent (broker price opinion) or an appraiser to evaluate the property on their behalf. Once the value comes back the bank can either accept the current offer or reject the offer due to a discrepancy in the value. This is where the magic happens.

Often banks don’t understand the true market value of a property because they don’t work in that market everyday. Furthermore, appraisers and BPO agents are market value experts, not construction cost estimators. It’s for these reasons that values and contract prices vary widely. So how can an investor get the bank to understand the true market value of a property?

Handsome’s value dispute method

Every good value dispute has three key components: An independent appraisal, detailed letter about the property/neighborhood, and a construction estimate. Prior to the BPO have your own appraisal done on the property. Make it fair. Don’t purposely skew it and come in low because the report will be dismissed. Second, have a licensed contractor generate an itemized written estimate of all repairs that need to be completed to bring the property up to standard. Make sure to suggest the appropriate level of repair. Don’t have your contractor budget $30,000 for a Wolf stove in a $350,000 house. Lastly, put together a letter describing the property that is short and to the point. The letter should discuss the reno, value, specifics on the house, area, school district, and more. The goal is to make it easy for the examiner to understand your position and perceived value of the sell my house fast Long Island based on facts. These steps have worked for me and will work for you as well.