Hello all and thank you for reading the 2025 (19th annual) home buyer guide. There are huge changes to discuss that will impact your home buying journey. Let's get right to them so if the first page bores you at least you have the latest info.

The first change is that buyer and broker agents (agents bringing buyers) can no longer see what listing agents are paying out to agents bringing buyers. This is causing some upheaval in the market. Buyer agents that are Realtors affiliated with the National Association of Realtors must now have you sign a buyer agency contract stating how much commission the agent will receive when you purchase a home with them. Previously almost every buyer/broker agent was paid by the seller and it was disclosed in the listing on the Multiple Listing Service how much it would be. This gave clarity to all parties, and the seller paying all involved agents was pretty standard practice.

Now we are seeing listing agents not offering payment to agents bringing buyers (we now have to call, text, email and beg them to tell us). What this means is that if you sign a buyer agent contract with an agent and the house you decide to buy isn't offering out a commission to buyers agents, you the buyer will be on the hook for your agent's commission, which can add substantially to your costs. The reverse argument is that in reality the buyer always paid the commission because the seller was paying out from the proceeds of the sale, that may well be but the onus is now on the buyer in many cases to pay their agent directly. Make sure you thoroughly read the buyer agent contract before signing. There is a way around this scenario but unfortunately, I reserve that information for clients.

Now having gotten the unpleasantness of the new changes out of the way let's get on to happier topics. If you're ready to take the plunge and start your search for the perfect home, this year's Home Buyer's Guide is the ultimate resource to help you navigate the challenging market and find the home of your dreams.

April 7, 2025 - The Long Island real estate market is experiencing a dynamic shift amidst the fluctuating interest rates and a possible recession. The market is witnessing a some price drops, expired listings, and an increasing number of days on the market in some areas. There's hope for homebuyers as the market slowly returns to balance, and inventory levels are very slowly improving.

If you've been on the hunt for a while and haven't had any luck, now might be a good time to jump back in. While homes in perfect condition are still receiving multiple offers over the asking price, homes that require some TLC are becoming more attainable in some areas.

In conclusion, the Long Island real estate market is in flux, but it's not all bad news. With a balanced market slowly returning, homebuyers have a chance to get into their dream homes. Please remember that NOTHING in this book is legal advice.

I want to help you navigate the complex (but not bad once you understand it) process of buying a home, and to ensure that you are well-informed every step of the way. I have provided you with a practical guide to follow, so that you have a clear understanding of what to expect throughout the process. By choosing the right agent, you can rest assured that you will have expert guidance for any situations that may arise.

It is important to remember that purchasing a home may be the biggest investment of your life, and therefore, it is worth taking the time to prepare and educate yourself beforehand. The more you know about the process, the better your chances of achieving a successful long term outcome.

I would like to conclude by saying that I am always available to answer any questions or concerns you may have, and I value both positive and negative feedback. If you are looking to buy or sell a home on Long Island, please don't hesitate to reach out to me or any member of my team. As a token of our appreciation, we offer a 10% home buyer rebate, which is something that you should compare with other agents' offerings. We look forward to hearing from you soon.

Thank you.

Thomas Brady

Lic. Associate Real Estate Broker SRES BPOR E-Pro SFR/ Director of Operations

Retired NYPD Lt., U.S. Air Force Veteran & Notary Public

631-682-8660

Some banks will no longer give pre-approvals, only pre-qualifications but they use the term interchangeably so if that is the case then it is fine. If you are one month or closer to purchasing a home, before you start searching you need to get pre-approved by a lender. Pre-approval, as opposed to pre-qualified, should mean that you have submitted documentation to a lender and that they have investigated your credit and income among other things and are preapproving you for a loan. All you need do is to find a home that fits within the price, property taxes and condition (if you are buying a foreclosure, you will most likely need what is called a 203k or rehabilitation mortgage) laid out by your lender. You will not be able to submit actual offers and have them considered for acceptance without a pre-approval and proof of funds for your downpayment (or only proof of funds if you are buying cash).

If you are further than a month from buying, it may be better to get prequalified. Pre-qualification normally entails verbally providing your information to your potential lender (without verification or credit check by them) and them providing you with an estimated loan amount, interest rate and closing costs. Although you may find it difficult to submit offers with only a pre-qualification (again some lenders now call their pre-approvals pre-qualifications), until you are seriously buying it should suffice to let you start your search in the proper price range.

Why do you need to get pre-anything? There are several reasons. The first is that to have an offer accepted, or taken seriously, the sellers need to know that you can back up your offer with money. That money could either be in cash, which would be proven with bank statements, brokerage account statements and so on, or in the form of a mortgage. The way you show your ability to purchase to the seller when you are going to get a mortgage is with a pre-approval. The preapproval tells the sellers that you have been investigated by a lender and that they are willing to lend you the amount of monies indicated on the pre-approval for your home purchase. Does the pre-approval guarantee you will get a loan? No, many things can change in the interim: you could take out a car loan, pay off a credit card, or the bank could have a change in policies. However, the preapproval explains to the seller that at that point in time you are highly likely to be able to back up your offer with money in the form of a mortgage from a lender. The second thing we usually submit with the offer sheet and pre-approval is the proof of funds showing in a bank statement or similar type statement that you have the money for the downpayment.

The second important reason to get pre-approved is that many people vastly misjudge their potential buying power either higher or lower. This leads to problems when buyers are looking in the $800,000 range, for instance, only to discover that when they are pre-approved it is for $500,000. How many homes will appeal to you once you have looked at homes in a much higher category? Conversely, if you were looking in the $500,000 range and after pre-approval you find that you can comfortably be in the $800,000 range, you have wasted your time and efforts. Pre-approval will let you shop for a home you can realistically and hopefully comfortably afford to buy without any negative surprises.

When selecting where to get pre-approved you need to do your homework. There are direct lenders, such as banks, and there are mortgage brokers. A mortgage broker will shop around for a loan that suits your needs and fits your qualifications. Mortgage brokers tend to be more flexible than banks and can work with a variety of situations, but you may feel more comfortable doing business with your local bank or credit union. It is a personal decision, but you need to make an informed decision. Going randomly from lender to lender applying and looking for the best deal will only hurt your credit rating. You should be able to conduct most of your research online in a reasonably short time. Getting a pre-approval does not mean that you are stuck with that lender, you can always switch later if you find more attractive terms. Now with pre-approval or pre-qualification in hand we can move to step number two.

When searching for a new home, it's important to narrow down your search to a reasonable number of locations. Even if you think you know exactly where you want to live, conducting a little research can uncover hidden gems or unexpected negatives in an area. To do this, make a checklist of your must-haves and wants, so you can compare each place apples to apples. This will make it easier to identify which locations suit your needs and wants.

Don't rely on real estate agents to steer you towards or away from an area (they aren't allowed to either). Even if an agent recommends an area to you, they may have different tastes or preferences than you. Only you know what you like and don't like, and what you find desirable or undesirable in an area. Areas can vary as much as people, so it's important to consider what's important to you. Talk to friends and family to ask for their insights on what surprised them or what they didn't consider when buying their homes.

Once you have identified a few areas that suit your needs and wants, go online to check the prices of homes in those areas. It's essential to ensure that you can afford a home in the locations you are interested in. Use a site such as Zillow, MLSLI, Trulia, or Realtor.com to get an idea of the prices. Once you've narrowed down your list of areas further, take the time to explore each location in person. Drive around at different times of the day and different days of the week and do a little walking and shopping in each place if possible. This will help you get a feel for the location and determine if it's the right fit for you. Making a mistake and ending up in an unsuitable location can be a decision that deprives you of years of enjoyment or forces you to sell and buy again, placing you in possible financial peril. Take the time and do the research to get it right.

Unfortunately, this step is not going to be as easy as you might think. My opinions in this chapter are not the same as most other agents, but I did not write this guide for other agents: I wrote it for homebuyers.

There are basically three kinds of agents that homebuyers will encounter:

Many buyers work with sellers agents every day and do fine, it is not unethical or wrong; it's just that there is usually a better choice for buyers. When you go to an open house and put in an offer with the agent hosting the open house, you are doing it through the seller's agent. If you make the comment "We'd like to put in an offer for $700,000, but I really love this house, I'd gladly pay $800,000". Guess what? The seller's agent is legally bound to inform the seller and you may very well pay the $800,000 when you could have negotiated a better deal or had a buyer's agent negotiate one for you.

Did the seller's agent do anything wrong? Not at all, if he or she had you sign a disclosure form indicating that they were representing the seller. He or she works for the seller, and did exactly as they were supposed to; they got the best deal possible for the seller. Buying through the listing agent can be dicey but can also work out fine for knowledgeable buyers who are confident in their negotiating skills. Also keep in mind when selecting an agent there are a lot of agents out there and not everyone will mesh well with you personally or professionally so try and find an agent that's personality works well with yours.

Ok, now you have your pre-approval, target areas, and agent, it is on to the fun/stressful stuff. This is where your agent should earn their money with honest advice and by giving you a thorough education about the process. Feeling comfortable with your agent and a firm belief that they are on your side will help you get through the next stages far more easily than if you have an agent, you don't communicate well with or don't trust.

You've already taken several important steps to make your home search less stressful and more successful. These include researching banks and brokers, getting pre-approved for a mortgage, narrowing down your preferred areas, and finding a great agent. These actions ensure that you will be looking for homes in the right price range, have confidence in your decision-making abilities, and receive expert advice throughout the buying process. Now it's time to focus on finding your ideal home.

This is where the advantage of having a buyer's agent can work for you. Give him or her your criteria such as, areas, price range, taxes, bedrooms, bathrooms, basement, garage, and any other parameters you have and let them get to work for you, if you made the checklist, I suggested previously give them a copy. Your agent should be able to send you a list of homes to consider as well as signing you up to receive any new homes meeting your criteria that come on the market.

Your agent will email or text you a list of potential homes, and new listings as they come out but don't be afraid to send him or her some that catch your eye even if they don't match what you told your agent you want, people are allowed to change their minds. Go through the list and let the agent know what you think about the properties, the more feedback you provide the more accurate the listings they send you should become. Let your agent know which homes you would like to see and your availability. Don't be disappointed if you can't get to see all of them when you would like as some owners are not very flexible on their showing times. If it is your agent that often cannot fit you in, get a new agent. Currently homes are moving quickly so don't be surprised if several homes you would like to see are already gone even though they show up as available, you must act fast in this market if you see something that's perfect for you.

Once you visit a house that you like (or better yet several), have your agent prepare a market valuation that will show you similar homes in the area and what they sold for as well as current homes for sale and what your agent believes to be the fair market value of homes you're interested in. Many buyers still think that owners will always come down in price, not so in many cases. This year, you are less likely to see a bidding war and the home selling for a bloated asking price but homes are still expensive and we haven't seen large price decreases yet. Do not assume, go through the information provided by your agent, and see what a fair price is or at least a price you can live with.

You will run into situations where homes are overpriced and your Buyer's Agent should be able to advise you accordingly, but you may also run into situations where homes are underpriced or priced quite fairly, when a full price offer or even over asking price is called for. The agent should be able to justify an offer recommendation with the market report. Keep in mind that sold prices are much more important than for-sale prices: one represents hopes and dreams, the other facts. Also remember it doesn't matter what anyone thinks the price should be, it's the price that the seller will accept to sell the house that is the determinate factor. If you think the house isn't worth the price the owner is willing to accept, keep looking.

You put in an offer at where your agent recommends is market value and someone else pays more for it, what gives? Does this happen? Yes, situations like this occur every day. What your agent prepares is a report on what he or she believes would be a fair price to pay for a buyer of average motivation. Not everyone, however, is of average motivation and receives good advice and not every seller is reasonable.

Why do people overpay for homes? Overpaying is not a one size fits all type of thing, what one person pays might be considered overpaying while another person might see it as a fair price, it depends on your perspective. There are many reasons why buyers seem to overpay regularly, some buyers with deep pockets just come in and offer over asking price with no appraisal, the average buyer cannot and should not try to compete. For a different example, say that the house for sale across the street from Joe Smith's mother's house goes for sale. Joe Smith wants to move out from his mother's house, but he cannot bear to be separated from his mother. Will Joe Smith pay more than the average buyer will for that house? Yes, he will, and gladly. So, your agent was not wrong, his price opinion is based on the average buyer. You might get into a situation where a house that you must have for some reason comes on the market, your motivation increases the value of the home to you, and so paying more to many people is not necessarily paying too much. Conversely you can have an owner that must sell, he sells for a lower price, but the lower price was still an appropriate one for him based on his need to sell.

One of the keys to a successful house hunt is not getting attached emotionally to any home - that can lead to serious buyer's remorse down the road. You can put in a full price offer and get beat by a higher offer, or an offer of slightly less money but on better terms to the seller. Letting your emotions get the better of you can leave you feeling exhausted and thinking the whole process is rigged against you. Keep the faith if you lose one house a better one usually comes along.

The negotiating process varies depending on the owner's flexibility, the buyer's desire for the house, and any one of a dozen other factors. Suffice to say that when negotiating it is best left to your buyer's agent to handle the path of getting where you want to be both in terms of price and conditions (down payment, closing date, inspection etc.). It is up to you to tell the agent how badly you want the house and what you are willing to pay for it. The agent advises, but you make the decisions, always remember that, and do not let it get twisted around where you feel like you are working for your agent. This is one of the reasons that it is hugely important to have an agent that you can trust and speak with honestly and openly. An honest, hardworking, strong negotiating agent can make or break a deal for you, pick your agent wisely and do not just go by company affiliation or smoke and mirrors. I have seen great agents working in mom-and-pop shops and I have seen terrible agents working at the biggest names. Some of the worst agents I know drive the fanciest cars while some of the best drive more modest ones, substance matters more than flash with agents.

There aren't many short sales around currently with the market so high so feel free to skip this section. A note on short sales and foreclosures here aka distressed properties. Many buyers think that short sales and foreclosures are the be-all and end-all of bargain hunting. In most cases, they are not. Most short sales will not close as short sales asking prices generally aren't representative of the actual price it will sell for. A short sale or attempted short sale is when a person owes more on the mortgage than the fair market value of the home. The homeowner has encountered a financial hardship through no fault of his or her own and can no longer pay the mortgage, so they hope that the bank will eat the loss i.e., the difference between the current market value and what is owed on the home. The bank is not in the business of losing money and will generally not look at this situation kindly. They will perform an analysis to see if it is to their benefit to foreclose or allow the short sale, but this takes time and the short sale listing price usually isn't indicative of what the bank will accept for the home; it's just an enticement to let the agent find out what price the mortgage holder will accept.

You enter into a contract with the homeowner and wait for the bank's decision, the bank can take up to a year (even longer in some cases) and all that time your good faith money that you put down on contract is tied up. When the bank finally replies they may accept the offer, reject the offer, or counter the offer. The homeowner cannot profit off of a short sale so don't be overly joyous when they accept your low ball offer, the owner is just trying to get out from under and accepting an offer, any offer is the first step in the process. In many instances, the buyer has given up and moved on by the time the bank decides which sometimes creates, for a short period of time, what is known as a preapproved short sale. This means that the agent now knows the amount the bank is willing to take and in some cases the bank will allow the agent a window of time to find another buyer that will agree to the pre-approved price and terms, the longer the short sale goes on the more money is usually owed to the bank. For many home buyers a pre-approved short sale may be the only conditions under which to proceed with a short sale with a reasonable chance for success and an acceptable closing date. Beware the short sales, they have sucked in many a buyer looking for a bargain and only ended up losing time and money and in the end were left empty handed.

Foreclosures are generally another type of distressed property that is not a good fit for most buyers. They sound great on the reality shows and late-night infomercials, but the truth is somewhat different, and the competition can be cutthroat. You can see some of the things that need repair but with many foreclosures it is what you do not see that will bankrupt you. With the advent of online foreclosure auctions, there are foreclosures bid up over the price of similar re-sale homes in good condition. There seems to be a gamblers spirit that grabs some people during these auctions, and they drive the price far over what the true worth is.

To summarize, if you are set on a short sale or foreclosure, I strongly suggest you have a great buyer's agent and a strong stomach. In most cases, short sales and foreclosures are much more closely aligned with investors goals and operating methods than with normal homebuyers. In my experience, homebuyers looking for a bargain home to live in will find better deals in estate sales far more often than with foreclosures or short sales. The key with estate sales is that they tend to go quickly, and you need vision. Most estate sale homes are in livable condition but need substantial updating. The main goal is usually to sell them quickly hence the prices are generally discounted, but you need to move fast and be willing to accept that they will not be in perfect condition. Searching for estate sales is a bit harder than searching for short sales and foreclosures so if you are considering an estate sale get an agent that can find them for you.

With most foreclosures, and some short sales, estates and even normal resales the buyer may need or want to get what is called a rehabilitation loan or mortgage (an FHA 203k loan is a rehabilitation loan backed by the federal government, many lenders have their own programs which are essentially the same thing but privately backed).

What that basically means is that the home is not up to mortgage standards and needs work so there needs to be a special loan made that will purchase the home and pay to make repairs/upgrades after closing. Some generally permitted uses would be roof repairs, windows, heating, plumbing, electrical, kitchens, bathrooms, adding living space and on and on. The home buyer will make one monthly payment which contains the purchase price plus the cost of repairs/upgrades, with the main caveat being that the home must appraise for the purchase price plus repair/upgrade cost as well as meeting the banks standards. If you are interested in a home needing a rehab loan you will need to shop around as standards and rates can vary greatly, in almost all cases the rate will be higher than a conventional loan.

You have found two or more homes you like and want to put in offers (it is fine to put in multiple offers, in many cases it helps during the negotiations). You have your pre-approval and proof of funds for the down payment (usually a bank statement) so it is time to sit down with your agent and go over the terms of each offer. Home one is asking $600,000 is vacant and has been on the market for over a year. We decide to offer $540,000 with 10% down on contract, another 10% down at closing, an inspection within 3-5 business days (the inspection is a contingency), a contract date of approximately 10 business days from the offer, and a proposed closing date of 45 days from the contract date. This offer sheet should not be binding and the language on the offer sheet your agent uses should indicate that the offer is pending attorney approval.

The second home has only been on the market for two days at an asking price of $540,000 and your agent values it at $580,000. We do not know why it is on the market at less than market value (it's not a foreclosure or short sale), but we can assume that the owners want to get out as quickly as possible or were ill-advised. There are of course a few ways to go and each offer and negotiation is different. We offer $540,000 with 20% down on contract, an inspection the next business day, contract asap and closing asap. The second home accepts our offer, the first home countered at $595,000 (now we know they are not serious sellers anyway).

Congratulations! You have an accepted offer. Please read this carefully – an accepted offer means nothing. Another offer can beat yours or any host of other scenarios can still take place. You need to get into contract, then you have protection. Unfortunately, an accepted offer is not usually legally binding upon anyone so the quicker you can get the inspection done and into contract, the quicker you can feel some sense of security. In better than 99% of home sales it is not worth waiving the inspection to strengthen your offer. If you are going through the listing agent, they may suggest it, even some buyers agents may suggest it on a very hot home but it's almost always in your best interests to have an inspection.

Usually about three to five business days after the accepted offer, you will have an inspection performed on the house (you as the buyer pay). Picking an inspector is a huge part of the home-buying process. Pick an inspector that doesn't do a thorough job and you will be paying through the nose for the things he missed, pick a 'Chicken Little'-type inspector and he'll make you think molehills are mountains and the house is a money pit.

You should normally not go with the inspector your realtor recommends if you can help it. You are buying one home, your realtor is probably selling many homes, who will the inspector's loyalties lay with? I am not saying the inspectors or realtors are unethical, but I'd prefer to pick my own home inspector if I am buying a home. Get recommendations from friends and family who have recently purchased a home and then thoroughly research those recommended inspectors online. This is a critical step, do not treat it lightly.

You have the inspection report, what are your options? Unlike some people may have you believe this is not a time to renegotiate your offer, it may be a time to fine-tune it though. Minor things on an inspection report are normal and to be expected, the major unexpected ones such as roof leaks, plumbing, electrical, foundation, termites etc. are where adjustments are made. Based on the inspection results you can go forward with the deal as is, request the homeowner make some repairs, request that the homeowner reduce the price or credit you the anticipated cost of repairs, request that the owner leave a sum of money in escrow, or walk away. Your buyer's agent should be able to handle most of the negotiating for you (obviously not the seller's agent, you would have to negotiate for yourself if you used the seller's agent). Some attorneys like to get involved at this point but on most sales the agents will try and come to an agreement between the buyer and seller, so the attorney gets presented with a fairly complete deal and you don't potentially get charged by your attorney for a failed negotiation.

Now that the inspection is out of the way, it is time to get into contract. The seller's attorney will confer with your attorney (I try not to involve the lawyers until the inspection issues are worked out as you may have to pay something for their time even if the deal falls apart after the inspection) then draws up the contracts. You'll go to your attorney's office and sign and give them your down on contract money (the downpayment is usually broken into two parts with some down on contract and the rest of the down payment due at closing), then it will go back to the seller's attorney for the seller's signature. Do not delay in signing the contract, the house should still be shown and marketed until the home is in contract; meaning both parties (buyer & seller) have signed. If a better offer comes in before all the signatures are complete the seller may take the new offer and you will have lost your inspection fees and will have to restart your home search.

Once everyone (buyer then seller) signs you are now in contract! Now it is time to hurry up and wait while the lending process plays out. There will be a title search and normally an appraisal (something else that can get waived but usually shouldn't be is an appraisal clause) as well as several other tasks performed before the closing. One of the final hurdles you will face will be if the appraisal comes up short which we have seen extraordinarily little of in the current market but was a persistent problem many years ago. If it does come up short your usual options will be to walk away, make up the difference, or have the seller lower the price or something in between.

Somewhere between 45 and 60 days after you get into contract you should close and be the owner of a new home. Congratulations, you have navigated through the potentially murky waters of home-buying with no stress, or at least hopefully less stress if you read my e-book and followed the steps.

You should be in your new home now and reflecting on the process that got you there. Please contact me with suggestions, criticisms, questions or if you're buying or selling a home. I try and make improvements to the guides each year. I rely on the opinions, questions and comments from past clients, current clients, and some people who just read the book and did not buy with me or didn't buy at all to make additions and adjustments.

While it can seem impossible to buy a home at a reasonable price on Long Island, it's not. You just have to be patient and know what you want so that when a decent deal comes up you are ready to pounce without hesitation. You need a good agent that can advise you along the way so that you know what's going on and can understand the process. When you have a good agent, they can explain things so that they become more clear and less mysterious to you which will enable you to better deal with the occasional setbacks of having your offers rejected. In my observations, most times when buyers get rejections they end up with a better deal on something they like better.

I am continuously updating the guide throughout the year so if you feel I have left anything out or have a question you think others may benefit from please let me know.

While I have slowed down and don't take many clients personally anymore I still take a few and have a large team of great agents to assist you on your home buying journey if I'm unable to.

Thank you for reading and best of luck with your home purchase.

Thomas Brady SFR, e-PRO, SRES, BPOR NYS Licensed Real Estate Associate Broker Vintage American Realty Notary Public, Retired N.Y.P.D. Lt. U.S Air Force veteran 631-682-8660 Tom@VARAgent.com www.VintageAmericanRealty.com

*All opinions expressed are mine and do not reflect those of any company, entity or another person. This guide does not offer nor is it a substitute for legal advice.