Who thinks home prices will fall? (Albany, Freedom: condo, brokers, lawyers)

[JoshNHR]

Originally Posted by amsm196

Even if the home prices drop on Long Island the property taxes will just keep rising & rising as will the utilities. So its almost a no win situation for most but not all of the middle class people who like living on LI.

And its sad that the majority of the older retired people have to move out due to the high cost of living.

I have relatives paying close to $9000 a year in property taxes alone on LI, and they are young, imagine what there taxes will be in lets say 5-10 years from now? Its crazy but is there a CAP on how high they can keep raising the property taxes?

Many older residents do have the option, which I realize may be an option a few aren't willing to consider because they've lived in the home for so long, to move into an active adult community that offers condominium ownership where the taxes are much lower (here in upstate it's $6,000 tops for most single family style condo units in an active adult community).

You COULD cap taxes but then you are most certainly going to start losing services. I think that a lot of times we just see the number that we pay in taxes but not all that it represents. You have librarians, teachers, school adminstration (superintendents up here make $100K/year), the county highway department plus local townships, firemen, police officers etc. All of these people need to be paid well too because they need to live and pay for their family to live in a home too. Then of course you can layer on corruption and miscalculated spending so if you do complain they will cut the music or art programs since it's less expensive than launching an internal investigation as to where the money really went. Then the sports teams go, the parks stop being maintained etc. We are finally starting to collapse under the weight of decades of bureaucratic politicians who are long since gone but their legacies continue to be felt. Read some of the threads on this forum about those who've made the move out of NY and to North Carolina where the school and property taxes are much lower.

The biggest problem we face today isn't that we are paying too much in taxes but rather we are all too indulged in luxuries that we now take for granted. 20-30 years ago families had nowhere near the same amount of luxury items that we expect as an everyday thing like daycare, Lexus' and BMWs etc. There is nothing wrong with luxury among every class but combined with the corrupted politicians we are crushed under our own weight.

[OvertaxedOnLI]

This is a question to the new user "IhateNY":

In your post on this thread, you say you are a real estate agent on LI.

Yet in your thread "Why Long Island Sucks", you say you are a student at SUNY Stony Brook and can't wait to graduate and leave LI.

So forgive me for questioning this apparant dichotomy... but which is it? Are you a college student, or a real estate agent?

Frankly, I find it difficult to believe that anyone who hates LI as much as you appear to do in your other thread, would choose to work as a realtor here....

[ihateny]

Originally Posted by OvertaxedOnLI

This is a question to the new user "IhateNY":

In your post on this thread, you say you are a real estate agent on LI.

Yet in your thread "Why Long Island Sucks", you say you are a student at SUNY Stony Brook and can't wait to graduate and leave LI.

So forgive me for questioning this apparant dichotomy... but which is it? Are you a college student, or a real estate agent?

Frankly, I find it difficult to believe that anyone who hates LI as much as you appear to do in your other thread, would choose to work as a realtor here....

It's both. being a real estate agent is not brain surgery,
I do it part time.. easy money on the side. Take a 5 day 8 hour class, 40 hours total, take the state test and pass, find a sponsoring broker = licensed real estate agent. no big deal. Making money and hating where you live are two different things.

[OvertaxedOnLI]

Originally Posted by ihateny

It's both. being a real estate agent is not brain surgery, I do it part time.. easy money on the side. Take a 5 day 8 hour class, 40 hours total, take the state test and pass, find a sponsoring broker = licensed real estate agent. no big deal. Making money and hating where you live are two different things.

I see. So... you're making money by pretending to be enthusiastic (to clients) about a geographic location that you hate and despise? And people don't pick up on this?

I am very very aware of the credentials for being a realtor in the State of New York. Trust me on that one.

I'm also well aware of the difference between a career realtor who is professional, committed and takes pride in the job he/she does, and people who like yourself look at it as "easy money on the side" that practically anyone with half a functioning brain can do.

Please tell me, because now I am curious: What is your opinion of the recent change in the representation requirements for realtors in NY, and how are you able to reconcile your opinion of Long Island and the majority of its inhabitants with your fiduciary responsibility to a potential buyer?

[ihateny]

I am not a career realtor, I do not pretend to be enthusiastic. I provide a simple service, does a plumber need to be enthusiastic about sh*t to do his job properly? Does a garbage man love garbage? I don't see what you don't understand about this, I am not a vacuum salesman, I sell homes, the biggest most important investment in most peoples lives. I do not lack the conscience that others may, to have the ability to try to sway people's opinions for my own monetary benefit.

I do take pride in the job I do, which is being honest to customers and finding them a house without steering them in a certain direction based on the commission rate offered by certain houses like most "career" real estate agents would. Hell, if anything I am better for them than a "career" real estate agent who pretends to be enthusiastic about anything other than what they really are, which is money. Any career realtor is about making money, this is what this business is about, MONEY, and ensuring more of it. I do not plan on making this my career. I am finishing up my degree for that.

And please don't waste my time with these silly tests.. I don't need to prove anything to anyone, and as far as fiduciary responsibility, I am not lying to anyone, if someone comes to me looking for a house it's because THEY have made the decision to buy on Long Island, and I will advise them on what areas they should be looking at if they haven't solidified the decision in their minds. If I think they are making a bad decision I will tell them. If someone asks me, do you love long island I will tell them the truth.

If a person goes into a record store, and is a fan of a certain artist, and asks the clerk to find them that cd, does the clerk tell them no way, get outta here I refuse to sell you that cd because I hate it!? No.

About any recent change in requirements for representation, I have no clue. I get the realtor newspaper thing delivered to me every 2 weeks or so and I toss them straight to the trash. The libor fees are ridiculously inflated just like every other fee on long island. I show houses, make offers and make listings, my broker takes almost half my money for a reason, he can take care of reading up on all the latest changes. But how about you enlighten me of this new requirement?

[berryjuice4life]

I, I have to say, your right on the money..LOL I didnt love your other posts, I am licensed in NY and NJ and do both and must say you are right when it comes to the business, I too am moving out of Jersey but would never persway anyone not to do it because I have my issues with Jersey....and my motto also is to find the best home that suits my clients needs and trust me Ive sold where the commsions were lower and a lower end home than opposed to the higher end homes I usually sell, but I am also ethical and like what I do and its not my main source of income so I dont have to be the Career type that is in it just for the money, I had some BAD agents when I was buying before I became licensed and I swore I would never be like that....I am from Brooklyn, lived in Staten Island for many years and then moved to jersey and now leaving for many reasons, Im sure I will have people reporting me for not minding my business as it says I live in NJ and not NY but whatever, I just felt I had to agree with you in this instance just because I am in the business as well

Take Care

[OvertaxedOnLI]

My, you are rather defensive/testy, aren't you? Nowhere did I imply that you "try to sway people's opinions for (your) own monetary benefit" nor that you are "lying to anyone". I've simply found that the people who are most successful in any career (and in interacting with other people) are those who find enjoyment in what they do; but your posts about LI and the people who live here, seem to indicate the opposite situation.

Your analogy about the plumber is a very good one. No one expects a plumber to be enthusiastic about the unpleasant parts of his job. But a good and successful plumber will keep himself constantly educated and updated within his chosen profession. That's the guy I want working on my house! I don't want some guy who spends his days whining about the area he lives and works in, and the people (customers, distributors, etc) he has to deal with every day. The difference between a pro and a hack (whether it's plumbing or sales or law or real estate) is not only Skill Level but Attitude.

Far be it from me to "waste your time with silly tests". However, if you had read those publications you routinely throw away, you might have come across two important changes that apparantly escaped your attention. One is the new and considerably more detailed agency-disclosure forms that you're required to present to all clients for signature as of January 1, 2007. The other is the abolition of sub-agency in New York State. That means that you're no longer allowed to show another agent's listing to a prospective buyer without having a Buyer Agency agreement in place. So unless it's your very own listing, congrats, you're now supposed to be working for and acting in the best interests of the Buyer instead of the Seller. Hadn't you noticed?

[ihateny]

seems like you don't have it too clear yourself.

you might wanna read this http://onlinerealtor.mlsli.com/articlepr.asp?id=219 to get it straight.

[OvertaxedOnLI]

The fact that "There is no definition of subagent contained in the form, so subagents are included under the definition of seller agent" is construed by some in the industry to imply that standard sub-agency as a separate class of representation is no longer recognized.

The effective killer to sub-agency is the language which now includes vicarious liability for a seller: "This vicarious liability attaches because of the contractual relationship between the listing broker or a subagent and the seller" ... "If the seller is willing to accept the possibility of vicarious liability, then other brokers can serve as the seller's subagent". What informed seller is going to be willing to accept vicarious liability??? There's absolutely no reason for a seller to expose him/herself to liability for the words or deeds of a subagent, and many reasons not to do so (the civil court caseloads in both counties can attest to that).

"If the seller authorizes broker's agents but not subagents, then the listing broker must notify all cooperating brokers (except buyer's agents) that they are to act as broker's agents. In such a circumstance, the listing broker could be vicariously liable for any misconduct of a cooperating broker but, the owner could not be so liable." So legally this leaves the listing broker holding the bag as far as liability is concerned, while at the same time it's good for the Seller (no liability) and for the Buyer (who is not going to be shown the house by sub-agents representing the Seller). The best situation for everyone (listing broker, seller, and buyer) is for the seller to authorize that the house be shown only by the listing broker OR by buyer's agents, which the article recognizes: "If the seller elects to work only with buyer's agents, then neither the listing broker nor the seller would be liable for such agent's misconduct" and "It is therefore incumbent upon the listing broker to make sure that the owner understands that they could avoid vicarious liability by selecting either buyer's agents and broker's agents." (The phrasing here is awkward and was probably intended to say "..by selecting either buyer's agents OR broker's agents).

Is it still legal for a home to be shown to a potential buyer by a realtor acting as a sub-agent for the Seller? Yes, but only if the Seller has agreed to this and thus by doing so has accepted a liability exposure that is completely unnecessary and potentially financially harmful. What properly-informed Seller is going to be stupid enough to do that? For that matter, what listing broker would be stupid enough to fail to protect him/herself from liability by advising the seller to choose "showing by listing or buyer agent only", for the seller's protection as well as his own?? I'd like to see some stats on how many Sellers have authorized subagency since these new agency rules went into effect, because no one who has had this properly explained to them is going to have any inclination to do so.

[house-hunter]

to OvertaxedOnLI and IhateNY

I personally can tell you horror stories from working with "career" realtors. They are all after one thing... Money. Not that it’s a bad thing. It’s only bad when that is all that they are after. Most lie to you flat out just so that you sign on the dotted line and will try and pressure you into placing bids without providing you with even a decent CMA. The "new" signing on disclosure is all BS and I'll tell you why. All realtors and I mean all get paid by the seller at closing. How than can they act on the buyers behalf?

I commend IhateNY for being honest here and if he is honest with his clients than he is to be commended there too! I also do not love NY. I don't hate it; let’s just call it a love/hate relationship. That does not mean that I won't buy a home here. This is where I work and live and I have choices to leave but I simply did not make that choice yet.

I have to blame some of the issues of the real estate marker also on the realtors out there who do a **** poor job and are after the payment at close. You know who you are. At the same time it is not an easy job and a few I have met are actually dedicated and honest but they are few and in between. I do not believe that there is such a thing as buyer agency until those realtors will accept the commission from the buyer... period!

It is the only place where your representative gets paid by the other party who you are supposed to be protected against. Think about it... would you hire a lawyer to represent you in a case if at the end of the day that lawyer got paid by the other party? Answer... NOPE! You will find yourself in jail yet we allow these realtors to do this each and everyday... NY State is catching on but has not realized this fact or perhaps they have but decided not to act upon it yet.

Just a little story, if interested... I was represented by a buyers agent on a property recently that (thanks be to god) fell through. Talk about divine intervention. I won't bore you with the details... we had to act quickly and we did one we had the accepted offer. started to get my lawyer in line and inspector and not a day later got a phone call that the seller accepted a higher offer and was willing to entertain a higher offer from us. We walked away. Two weeks later we found out that the property had serious issues. 5.4 million Actually. Did I mention it was a condominium complex? The sewage treatment plant had gone faulty. I consider myself lucky for not going forward with this one and actually got a call from the seller’s agent who advised that the other higher buyer backed out also and asked again if we are still interested. You can imagine what we said the other part of this story is that our "buyer’s agent" was asked to get the prospectus which describes the by-laws, financials and construction assessments on the property. The agent continuously ignored the request and said that the info was unattainable until we had a contract written to buy a condo in the complex. I picked up the phone myself and called the management company and within 10 minutes I had all the info that I needed faxed to me in my hand. Moral of the story... unless you are paying someone for services, they are not working for you. As a buyer you are on your own to fend for yourself. I see things getting a bit better with the new disclosures and fiduciary responsibilities set fourth by the Department of State. However, we have a while to go until it’s an even playing field out there.

Just my .02