With rents high and being in what seems to be a new normal for interest rates and housing prices, many may still be browsing for homes to buy on LI. Before you sign that purchase contract, make sure you check out the property taxes, and these four other factors…
Property Taxes
The cost of owning and buying a home on Long Island isn’t just limited to the purchase price, finance costs, and mortgage payments. You’ll have real estate taxes, including annual property taxes.
It’s vital to understand how much this will cost you each month and year. It’s also vital to watch out for any delinquent property taxes the seller may owe. These will need to be paid at closing.
If the taxes seem unfairly high, you may be able to challenge them with the help of Property Tax Adjusters, Ltd. If they seem suspiciously low, know that they may jump up substantially next year.
Mortgages
A title search should reveal how many mortgages and lines of credit are tied to a property. As well as their balances. If they owe more than you are offering, you’ll have to negotiate a short sale with the lender. Which can take months.
Code Violations
Code violations can stack up on homes very quickly. Often with interest penalties that can add $1,000 a day to the balance. If there are violations, what are they, who will remedy them, and can any balances be negotiated down?
Association Debts And Rules
Homeowner associations can apply a variety of levels of annual dues, as well as special assessments for improvements. Will all of this be paid up before your closing, or will you have to assume this debt?
Also, with HOAs, condos, and coops you need to be sure you qualify according to their approval criteria to buy.
Outstanding Utility Bills
In some cases outstanding utility bills on a property may need to be paid before you can turn them on in your name. Be sure to call and check the status before you buy.