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Here's a couple of homes that are now considerably down below housing bubble prices and are centrally located in a middle-class area of Nassau.
Certainly these should be affordable and attractive, at least to first-time buyers ... right?
4BR/2BA handyman special with potential:
ML#: 2295808
Ranch, Detached, # Families: 1
6.0 rooms, 4 Bedrooms , 2 Full Baths
Year Built: 1948
Lot Size: 60 X 100 List Price: $216,500
In much nicer condition than house above:
ML#: 2293550
Colonial, Detached, # Families: 1
7.0 rooms, 3 Bedrooms , 2 Full Baths
Year Built: 1952
Lot Size: 60 X 100 List Price: $257,400
Both have verbiage in their listing that hint at being bank owned (buyer to pay transfer tax; sold as is).
Why do you think they are probably bank owned?
Why do you think they are being listed so low in Nassau?
Why are they even on MLSLI instead of having been snapped up a long time ago?
Spoiler
ML#: 2295808 current property taxes = $10,444
ML#: 2293550 current property taxes = $11,276
Here's the meme:
Out-of-Control and Constantly Rising Property Taxes Can and Do Make "Affordable" Homes Unaffordable and/or Unattractive to Buyers
The lesson of this story: The "good school districts of LI" will not always "keep home values up" if they become too expensive in terms of property taxes for the type of house you are going to get!
Here's a couple of homes that are now considerably down below housing bubble prices and are centrally located in a middle-class area of Nassau.
Certainly these should be affordable and attractive, at least to first-time buyers ... right?
4BR/2BA handyman special with potential:
ML#: 2295808
Ranch, Detached, # Families: 1
6.0 rooms, 4 Bedrooms , 2 Full Baths
Year Built: 1948
Lot Size: 60 X 100 List Price: $216,500
In much nicer condition than house above:
ML#: 2293550
Colonial, Detached, # Families: 1
7.0 rooms, 3 Bedrooms , 2 Full Baths
Year Built: 1952
Lot Size: 60 X 100 List Price: $257,400
Both have verbiage in their listing that hint at being bank owned (buyer to pay transfer tax; sold as is).
Why do you think they are probably bank owned?
Why do you think they are being listed so low in Nassau?
Why are they even on MLSLI instead of having been snapped up a long time ago?
Spoiler
ML#: 2295808 current property taxes = $10,444
ML#: 2293550 current property taxes = $11,276
Here's the meme:
Out-of-Control and Constantly Rising Property Taxes Can and Do Make "Affordable" Homes Unaffordable and/or Unattractive to Buyers
The lesson of this story: The "good school districts of LI" will not always "keep home values up" if they become too expensive in terms of property taxes for the type of house you are going to get!
hey how did you do that spoiler thing? That's cool.
Here's a couple of homes that are now considerably down below housing bubble prices and are centrally located in a middle-class area of Nassau.
Certainly these should be affordable and attractive, at least to first-time buyers ... right?
4BR/2BA handyman special with potential:
ML#: 2295808
Ranch, Detached, # Families: 1
6.0 rooms, 4 Bedrooms , 2 Full Baths
Year Built: 1948
Lot Size: 60 X 100 List Price: $216,500
In much nicer condition than house above:
ML#: 2293550
Colonial, Detached, # Families: 1
7.0 rooms, 3 Bedrooms , 2 Full Baths
Year Built: 1952
Lot Size: 60 X 100 List Price: $257,400
Both have verbiage in their listing that hint at being bank owned (buyer to pay transfer tax; sold as is).
Why do you think they are probably bank owned?
Why do you think they are being listed so low in Nassau?
Why are they even on MLSLI instead of having been snapped up a long time ago?
They are owned by the lender. Goes back to one of my previous posts - the result of the lender trying to "sell at the steps" and not finding a buyer.
Doesn't matter that's it's in Nassau - that's all they're worth because of the condition--maybe even less.
It says "as-is", so no warranty that anything works, whether appliances (if any) or that plumbing is functioning (often previous owner or tenants have "salvaged" some of the copper plumbing before leaving), or that the roof keeps the water out, etc., etc. What is listed in remarks for Agents is the fact that financing is either "cash" or "rehab loan", because the house doesn't qualify for a regular mortgage - house is not habitable in its present condition. Cash is simple enough if you have it; a rehab (or 203k) loan is an FHA loan - the buyer has to qualify for the purchase price PLUS the cost of fixing it up, and the repairs MUST be done by outside professionals--no do-it-yourselfers. So you have to qualify for a lot more than the $200K...
Also, Levitt houses don't have basements and mostly no garage, usually 60x100. So you're buying a house for $200K, pay ALL closing costs, including transfer tax which is normally paid by the seller, and then the payments for fixing it starts... new kitchen, bath(s), floors, etc. etc. Adds up to substantial amount and you can buy non as-is houses in Levittown in the mid 300s (shopping with a buyer right now). Taxes can be around 10K... not the bargain it seems when you first see it.
Oh, and REO's (bank owned properties) always get listed on MLS - the lender wants to get as much as possible and that's the commonly practiced method to make sure they do.
They are owned by the lender. Goes back to one of my previous posts - the result of the lender trying to "sell at the steps" and not finding a buyer.
Doesn't matter that's it's in Nassau - that's all they're worth because of the condition--maybe even less.
It says "as-is", so no warranty that anything works, whether appliances (if any) or that plumbing is functioning (often previous owner or tenants have "salvaged" some of the copper plumbing before leaving), or that the roof keeps the water out, etc., etc. What is listed in remarks for Agents is the fact that financing is either "cash" or "rehab loan", because the house doesn't qualify for a regular mortgage - house is not habitable in its present condition. Cash is simple enough if you have it; a rehab (or 203k) loan is an FHA loan - the buyer has to qualify for the purchase price PLUS the cost of fixing it up, and the repairs MUST be done by outside professionals--no do-it-yourselfers. So you have to qualify for a lot more than the $200K...
Also, Levitt houses don't have basements and mostly no garage, usually 60x100. So you're buying a house for $200K, pay ALL closing costs, including transfer tax which is normally paid by the seller, and then the payments for fixing it starts... new kitchen, bath(s), floors, etc. etc. Adds up to substantial amount and you can buy non as-is houses in Levittown in the mid 300s (shopping with a buyer right now). Taxes can be around 10K... not the bargain it seems when you first see it.
Oh, and REO's (bank owned properties) always get listed on MLS - the lender wants to get as much as possible and that's the commonly practiced method to make sure they do.
Hope this helps
Thanks for the info. Are both houses rehab or just the first one? The second one had pics that seemed like someone had done upgrades.
Actually, though I am not looking to buy either one of these houses.
I am noting that the property taxes are INSANE for what you are getting here and that is probably a contributing factor as to why these homes are bank owned and why they are priced this low (especially the 2nd home, which looked a lot better than the first one). I think in these cases the tipping point has been reached where the property taxes make an otherwise "affordable" home unsaleable in contrast to those people who think that "as long as the schools on LI are good" it doesn't matter how high the property taxes go because their homes will always rise in value also.
How much more room is there for property taxes to continuously rise on LI when homes like this have taxes in the five figures?
Quote:
ML#: 2295808 current property taxes = $10,444
ML#: 2293550 current property taxes = $11,276
Here's the meme:
Out-of-Control and Constantly Rising Property Taxes Can and Do Make "Affordable" Homes Unaffordable and/or Unattractive to Buyers
The lesson of this story: The "good school districts of LI" will not always "keep home values up" if they become too expensive in terms of property taxes for the type of house you are going to get!
Oh, and REO's (bank owned properties) always get listed on MLS - the lender wants to get as much as possible and that's the commonly practiced method to make sure they do.
Actually, it's my understanding that this isn't necessarily true across the board... Many REOs fall into a shadow inventory category where banks will sit on properties to not blow up an entire area with distressed properties being sold at crazy discount. It's in the bank's best interest to keep values propped up. I don't know how rampant this is on LI, but it's certainly a major consideration down here.
Quote:
Originally Posted by I_Love_LI_but
Mikey, don't tell me you are going to run back to LI for one of these houses!!
Problem is, what do you think your property taxes will be for one of these in as little as five years?
haha - even if I thought about it, I'm a Suffolk boy! I'm really curious to see how values fair into the Fall/Winter... I'm guessing that properties like this are the tip of the iceberg.
Since the NYC metro will begin its recovery long before the transplant meccas, I'll be continually keeping my eye on MLSLI as a gauge.
Actually, it's my understanding that this isn't necessarily true across the board... Many REOs fall into a shadow inventory category where banks will sit on properties to not blow up an entire area with distressed properties being sold at crazy discount. It's in the bank's best interest to keep values propped up. I don't know how rampant this is on LI, but it's certainly a major consideration down here.
.
I'm sure some of that happens on Long Island as well, though possibly not as much. Nonetheless, once the lender stops "sitting on it" it will get listed on MLS...
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