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Land Ownership: Understanding Freehold Ownership And Leasehold Ownership

Land ownership is a considerable form of property ownership, navigating the intricacies of which is essential for anyone looking to own or invest in real estate.

Whether you want to build your dream home on a piece of land or simply want to make a real estate investment, your unique needs and requirements play a great role in deciding what type of land ownership is suitable for you. Here is where understanding the types of land ownership becomes important.

Well, there are usually two types of land ownership options: freehold and leasehold. Both these types of ownership have their own pros and cons.

Let’s take a deep dive to understand both freehold and leasehold ownerships more closely so that you choose to have the best-suited land ownership for you.

What Is Freehold Ownership?

Having freehold ownership means you are the sole owner of the land and any buildings on it for all time. So, a freehold property is any estate that is “free from hold” by any entity other than the owner.

As long as the usage of the land complies with local regulations, you have the right to use, modify, sell, and transfer the property without any restrictions. The right to ownership is inherited and is transferable to future generations.

Generally, undeveloped land parcels and many single-family houses are held as freehold properties, granting owners complete control over their real estate holdings.

What Is Leasehold Ownership?

Subject to the terms and conditions of a lease agreement, purchasing the right to use and occupy the land and any structures on it for a certain period is known as leasehold ownership. The lessor or landlord regains ownership of the property from the lessee or tenant after this period.

As payment for using the property, tenants are usually obliged to pay ground rent to the landlord. Ground rent is a fixed amount that is outlined in the lease agreement and is often paid annually or semi-annually.

Due to the scarcity of land and high property values, leasehold ownership is common in metropolitan areas and developments.

Freehold Ownership vs. Leasehold Ownership

To understand whether freehold or leasehold ownership is better for you, you should consider the below key comparable factors and decide which type of land ownership best suits your needs.

  1. Ownership Rights
    As a freeholder, you get the absolute ownership rights of the property. Since you are the property’s sole owner, you have total authority over how it is used, modified, and disposed of.

    Leasehold ownership grants the right to occupy and use the property for a certain period which is mentioned in the lease agreement.

  2. Tenure
    Under freehold ownership, the owner has a perpetual and constant right to the property.

    Ownership under a lease is temporary and for a specified period mentioned in the lease agreement. Unless the lease is renewed or renegotiated, ownership of the property reverts to the lessor after the end of the lease term.

  3. Cost
    Since you are just buying the right to occupy the property for a certain period, leasehold properties are usually less expensive to buy than freehold properties.

    Nonetheless, it’s crucial to account for the extra expenses associated with leasehold ownership, such as ground rent and maintenance fees.

  4. Sale And Transfer
    Freeholders can sell, transfer, or lease the property independently. While subject to the lessor’s approval and terms, the lessee has limited rights to transfer leasehold interests.
  5. Decision-making
    Freeholders have the exclusive decision-making authority over the property. Leaseholders are required to adhere to lease terms and guidelines when it comes to decision-making.
  6. Usage Restrictions
    A freeholder has complete freedom to use the property as desired. However, there could be certain restrictions under local regulations. For example, any construction or modification to the property must go by the rules established by the municipality in which the property is situated.

    In leasehold ownership, the property is still owned by the landlord, who has the authority to impose usage restrictions. Depending on the conditions of the lease agreement, tenants may be restricted from subletting, modifying, or using it for a specific purpose.

  7. Resale Value
    Due to the owner’s total control over the property and the land it is situated on, freehold ownership usually carries a higher resale value than leasehold ownership.

Pros And Cons

Below are some pros and cons of having freehold ownership and leasehold ownership. Have a look!

Pros Of Freehold Ownership

  • Absolute ownership
  • No ground rent
  • Freedom of usage
  • Complete control
  • Potential for capital appreciation

Cons Of Freehold Ownership

  • Higher upfront cost
  • Responsibility for maintenance
  • Property tax liabilities

Pros Of Leasehold Ownership

  • Lower upfront cost
  • Lower maintenance cost
  • Lease extension
  • Access to amenities and facilities

Cons Of Leasehold Ownership

  • Time-limited ownership rights
  • Limited control
  • Restricted usage
  • Ground rent and service charges
  • Mortgage complexities and higher interest rates

Frequently Asked Questions

  1. Which kind of property is better – freehold or leasehold?
    Freehold properties are appropriate for residential use, investment, and obtaining bank loans. Leasehold properties, on the other hand, are preferable for low maintenance requirements and economical commercial use.
  2. Is investing in freehold real estate safer?
    Given that a freehold property has been registered and is anticipated to appreciate in value, it is regarded as a safer investment.
  3. Who actually owns leasehold property?
    The lessor of the lease agreement holds actual ownership of the leasehold property.

Final Verdict

Your unique situation and preferences will determine which type of land ownership – freehold or leasehold – you should choose.

Freehold ownership is a well-liked option for people looking to make long-term investments because it provides total autonomy and perpetual ownership. On the contrary, leasehold ownership is a more feasible choice for urban residents and commercial enterprises since it offers more reasonably priced access to properties with shorter lease durations.

However, before choosing, it’s essential to carefully understand the advantages and disadvantages of each type of land ownership. You can consult with property experts like Elites Properties, where we can help you make an informed decision. Contact us here.

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Your Guide To Seller’s Liability After Selling A House In New York

Selling a house is a significant milestone yet a daunting task. Right from preparing your house for selling to finding buyers, negotiating, and closing the deal, is all a complex journey. Further, if you think that once you sign the sales contract you are done with all the responsibilities, you might be mistaken.

Selling a house in a state like New York comes with certain responsibilities. But exactly when and how long are you liable for any issues arising after closing?

Let’s find out, as understanding your liability after selling a house is crucial to avoiding legal disputes and protecting your interests.

When Is A Seller Held Liable After Selling A House?

Being a homeowner entails routine maintenance and repairs. After closing, new homeowners (buyers) often discover defects in the property, but your (seller’s) liability for any issues that existed before is limited.

However, it is your, your representative’s, and your inspector’s responsibility to disclose any known property defects as well as important information that can influence the property’s appeal.

Therefore, if you conceal material facts like the need for repairs or knowingly give false statements or make omissions, it could be considered fraud on your behalf and you could be held partially or fully responsible for the problems like repairs after closing.

According to the law, to make the seller liable for issues after the closing, the buyer must be able to prove that the seller breached the sales contract or any repair warranty, failed to disclose as required by state law, was fraudulent or negligent in disclosing information, or willfully misrepresented the state of the property.

When Is A Seller Not Held Liable After Selling A House?

If it is proved that you disclosed to the buyer all known defects or crucial information and did not do anything to prevent the buyer from finding any defects in the property, you are unlikely to be held accountable for any property issues after the closing.

Besides, rather than the seller, the real estate agent or the inspector can be held responsible for their failure to disclose if the seller was unaware of the defects but they were.

For instance, a real estate agent may be charged with fraud and deception if they conspire with a home inspector to hide damages to protect a deal from falling through. The seller can not be held accountable in this scenario.

That is why buyers need to do thorough property analysis and inspections before closing.

Requirements Under The New York Property Law

Regarding a home seller’s liability after a sale, different states have different laws and regulations.

Early on in the history of property law, New York adhered to the traditional principle known as “caveat emptor,” or “let the buyer beware“. This meant that sellers would not be held liable if they disclosed nothing about their property defects.

Later, New York courts implemented measures to safeguard buyers by establishing exceptions. For instance, a seller who possesses a special relationship of trust with the buyer, like that of trustee-beneficiary, guardian-ward, agent-principal, or attorney-client, could be held responsible for concealed property defects.

Furthermore, the courts declared that sellers can be held accountable to the buyers for any damages if they actively concealed defects. ‘Active concealment’ refers to a situation in which the seller obstructed the buyer’s attempts to inspect the property and knew about any damage but chose not to disclose it.

Property Condition Disclosure Act (PCDA)

The Property Condition Disclosure Act (PCDA) is the disclosure law in New York for property sales. Under this act, the seller is required to make certain disclosures about the property by giving the buyer a disclosure statement before the sales contract is signed.

Until now, the seller had the option to pay a credit of $500 towards the purchase price to the buyer at the closing if unable to deliver the disclosure statement. However, as per the latest amendment in the act, PCDA will no longer allow a seller of residential real estate to give the buyer a $500 credit instead of the disclosure statement, effective as of March 20, 2024.

Is The Seller Held Liable After Selling A House In Case Of As-in Clause?

An ‘as-in’ clause in a sales contract simply indicates that the house is being sold in its existing condition and the buyer accepts it ‘as-is’. This also means that you (the seller) need not need to fix any property defects disclosed or otherwise discovered by the buyer before the closing.

That’s why the buyer is still responsible to conduct an inspection and asses any property defects or find issues to make an informed decision.

If the buyer finds some defects in the property yet buys it anyway, cannot hold the seller liable after closing. However, despite the as-in clause, sellers can be held liable for fraudulent misrepresentation if they have sold the property without disclosing any known defects, or their inspections didn’t reveal the problem.

Statute Of Limitations In New York For Real Estate Transactions

If the buyer holds you responsible for any property repairs or other issues after closing, they can file a lawsuit but within a limited amount of time. This window of time is the ‘statute of limitations’.

Depending on the type of case and claim, the statute of limitations in New York State for real estate transactions typically ranges from one year to six years or even 10 years in some cases.

For example, in case of fraud or breach of contract in the sale of property, the statute of limitations is six years from the date of the fraud or from the date the contract was broken respectively.

The Final Say

By being transparent, making precise agreements, and getting expert advice, you can protect yourself from problems that may arise after the sale. You can contact our experts at Elite Properties today if you’re planning to have a smooth home-selling journey.

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Selling An Inherited Property In 2024

Selling An Inherited Property In 2024

If selling an inherited property is what’s on your mind, you might be surrounded by a bunch of questions – How to sell an inherited property? What are the legal requirements? What are the tax implications and so much more?

When you inherit a property, you have multiple options for how to proceed. You may decide to live in it, rent it out, or sell it. Emotionally, inheriting a property can be demanding, but it may even put a financial strain on you. If you feel that the obligation of inheriting property is huge for you, the best way out is to sell it.

However, selling an inherited property can be complex and take longer, especially if it goes through a probate process. Yet, once you know which hurdles you need to cross, the process of sale or transfer can become relatively easier to navigate.

So, let us help you with what you must be aware of before you even jump into the selling process.

When Can You Sell An Inherited Property?

You can only sell an inherited property if you already have its ownership. Considering this, the following are the ways of owning a property through inheritance.

1. Probate

In New York, almost every inherited property has to go through the probate process. Probate involves the court which determines the legal owner of the inherited property.

During the probate, you must provide the owner’s death certificate and ownership documentation. Through this process, the court also ensures that the outstanding debts of the deceased are settled before transferring the property to the inheritor or inheritors.

Probate proceedings can be costly and time-consuming, it can even take up to 12 months. Once you inherit the property under probate, you can sell it.

2. Joint Ownership

When you and another person own property jointly and that ownership includes the “right of survivorship,” the surviving owner will take over ownership of the property upon the death of the other owner. Although it will require some documentation to demonstrate that title to the property is held exclusively by the surviving owner, no probate will be required to transfer the property.

3. Transfer-on-Death Deed

A transfer-on-death deed helps the executor manage the property owner’s assets after death by automatically transferring property to a designated beneficiary upon the owner’s death without the need for probate.

If you inherit the property through such a deed, you get the right to sell it.

Please note that New York doesn’t allow real estate to get transferred through this method. However, if one doesn’t live in a state that allows TOD deeds, but owns property in such a state, they might still be able to use a TOD deed — but it is advisable to check with an estate lawyer first.

4. Living Trust

A living trust is a legal arrangement that is drawn up by an individual while they are still alive. It names a trustee and lays out clear guidelines for how assets will be distributed upon the grantor’s death.

If you become the inheritor through this method you can benefit from the sale of the inherited property.

What To Consider Before Selling An Inherited Property?

An inherited property is not like a property that you directly get ownership of. That is why the process of selling one can be quite complicated. There are certain factors that you must look at before you decide to sell the inherited property, such as the following:

1. Value Of The Property

Before you look into anything else, first research the fair market value of the inherited property. Compare it with other properties in its vicinity to accomplish this task.

Alternatively, you can use online value estimation tools. Despite the estimated value that you get, remember that several factors can directly affect the property’s value such as the condition of the property.

2. Outstanding Mortgage

Reach out to the mortgage company if there is an outstanding mortgage on the inherited property to determine the required payment amount. This is how you can get to know how much you might earn after selling the property.

3. Debts If Any

Settle any outstanding debts, such as unpaid bills or taxes, for which the deceased person was responsible before proceeding. This way you get an idea of whether the selling of the inherited property would only go to paying the debts.

4. Agreement Of All Inheritors

It might be possible that you are not the only inheritor, but multiple persons/family members are inheriting the property.

In such a case, you must see that all the inheritors agree to sell the property. This will ensure that you have a smooth selling process without any potential conflict.

Tax Obligations

There is no inheritance tax in the state of New York. However, if the value of your property exceeds $6.58 million, you will have to pay an estate tax ranging from 3.06% to 16%.

Moreover, when you sell the inherited property, you must fulfill tax obligations including payment of transfer tax, property tax, and capital gains tax.

How To Sell An Inherited Property?

Selling an inherited property is really no different than selling any other property. You can sell it on the open market for the most profit either through a real estate agent or sell it yourself.

Also, you can sell it directly to a cash buyer without making any repairs or changes. You can move quickly and get cash for the property without needing to make large upfront investments if you sell it as-is.

Elite Properties is a real estate company that will buy your property “as-is,” with no costs or commissions! You receive the greatest cash offer and we also pay for all closing and legal fees. No open houses or showings, and a speedy three-day closing!

The Final Say

Selling an inherited property can be overwhelming with all the legal processes that you need to go through. So, if you want to sell your inherited property with lightning speed, we are just a click ahead, contact us!

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Navigating The Fair Housing Act In New York: Your Go-Guide

Fair housing is not just a fancy term, but a real necessity in the real estate industry across the globe.

Hello, fellow New Yorkers! Did you know that despite progress, housing discrimination is still a significant concern in the Big Apple?

According to recent data, reports of housing discrimination have been on the rise, highlighting the urgent need to address this issue head-on. Not only in New York but several housing discrimination complaints have been recorded nationwide. If you don’t believe, here are some numbers (as numbers never lie, do they?).

As per the data provided by the National Fair Housing Alliance, the most number of fair housing complaints ever recorded in a single year nationwide was 33,007, which came in 2022. The data also shows that discrimination based on disability accounted for the majority of complaints with a whopping 53.26%.

In addition, 2,490 sex-based complaints were received, which is the most since 2005. Despite the huge volume of complaints, the majority of cases of housing discrimination remain unreported or unnoticed.

The Fair Housing Act aims to prevent discriminatory practices that exclude people from housing opportunities because of circumstances outside of their control. In the quest for fair housing in the U.S., people as well as families have rights that this crucial legislative shield seeks to defend.

In this blog, let’s shed light on housing discrimination by taking a closer look at the Fair Housing Act.

Fair Housing Act: Understanding The Concept

To help you gain a better understanding of the concept of the Fair Housing Act, we have listed a few questions and answers below. Have a glance!

What Is Fair Housing?

In simple terms, fair housing is equal and free access to residential housing – that is a housing choice.

What Is the Fair Housing Act?

Basically, it’s a law that says discrimination in housing is prohibited. This law prohibits discriminatory housing practices and housing market denials to individuals based on factors they can’t control.

When you are renting, buying, or financing your home, this law protects you from discrimination based on your:

  • Race
  • Color
  • National origin
  • Religion
  • Sex
  • Disability
  • Family status

When And Why Was The Act Established?

The Fair Housing Act was established in 1968 and came out of the civil rights era activism.
The need for the Fair Housing Act stems from a long history of discrimination and segregation in the housing sector.

Before its enactment, many marginalized communities faced blatant discrimination when trying to rent or purchase a home. The Fair Housing Act seeks to rectify these injustices by prohibiting discrimination based on protected characteristics, also promoting diversity and inclusion in housing.

Whom Does The Act Protect?

Although the Fair Housing Act applies to New York City, it is a federal law. The law believes that housing is a basic right that should be accessible to every American. It safeguards borrowers, buyers, and tenants and strives to end discrimination in public and private housing on a nationwide scale.

Who Should Abide By This Act?

All individuals and entities active in the housing market have an ethical duty to abide by this regulation. This covers everyone engaged in a home transaction, such as lenders, appraisers, real estate agents, landlords, and property managers.

A Few Examples Of Housing Discrimination

A landlord refusing to rent to a family with young children, citing concerns about noise, could constitute familial status discrimination. Similarly, denying housing to an individual because of their disability or nationality is a clear violation of the law.

What Are The Protected Classes?

A protected class comprises individuals who have historically been discriminated against due to a particular attribute. This Act, along with the New York State and New York City Human Rights Laws, protects individuals belonging to protected classes against housing discrimination on both state and city levels.

The protected classes are safeguarded against housing discrimination based on:

  • Race
  • Color
  • Sex
  • National origin
  • Religion or creed
  • Disability
  • Family status

The New York Fair Housing Act also protects individuals from discrimination based on the following factors in addition to the above federally protected classes:

  • Age
  • Gender
  • Citizenship status
  • Marital status
  • Sexual orientation
  • Military status
  • Lawful occupation
  • Lawful source of income
  • Partnership status
  • Status as a victim of domestic violence, sex crimes, or stalking.

What Is Prohibited Under The Fair Housing Act?

The Fair Housing Act strictly prohibits various forms of discriminatory practices. Some common discriminatory practices include:

1. Refusing to rent or sell housing to an individual based on their protected characteristics.
2. Setting different terms, conditions, or privileges for housing based on a person’s protected status.
3. Making false representations about the availability of housing to deter certain groups from applying.
4. Harassing, intimidating, or coercing individuals to prevent them from exercising their fair housing rights.
5. Failing to accommodate reasonable requests for disability-related accommodations, such as wheelchair ramps.

What Type of Housing Is Covered?

The Fair Housing Act applies to most housing. However, the Act exempts from its provisions some types of housing, including:

  • Single family houses sold or rented without the help of a broker,
  • Owner-occupied structures with no more than four units, and
  • Housing operated private clubs with limited members’ occupancy.

Furthermore, just like the Federal Housing Law, New York also has its own exemptions which are as follows:

  • Either one or two owner-occupied family home buildings
  • Room rentals in housing for same-sex individuals.
  • Room rentals in owner-occupied housing

The Final Say

If you believe you’ve experienced housing discrimination, you can file a complaint not only with the U.S. Department of Housing but also Urban Development (HUD) through various modes.

Ensuring equal access to housing is not just a legal obligation but a moral imperative. Not only by understanding your rights under the Fair Housing Act but also taking action against discrimination, you can help create a more inclusive and equitable society for all.

Looking to ease your home buying or selling experience? Get in touch with Elite Properties today.

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How We Buy Any House Hassle-Free?

The term ‘we buy any house’ sounds so relieving, doesn’t it? Well, it really does!

If you wish to sell your home as soon as possible and have no time to go through the traditional lengthy home selling process, ‘we buy any house’ companies can be your savior!

Due to the swift, hassle-free, and convenient method of selling homes that ‘we buy any house’ services facilitate, the concept has gained great popularity in different housing markets.

So, let’s try digging deeper to understand more about the ‘we buy any house’ companies and how they can help you with a smooth and quick sale.

What Are ‘We Buy Any House’ Companies?

The term ‘we buy any house’ is used for companies that buy houses directly for cash or are in the quick home sale industry. Property is purchased directly from homeowners by these companies.

They provide a simplified and streamlined approach to property sales, unlike the traditional property sales which entail real estate agents and perhaps lengthy, drawn-out procedures.

Their main selling points are convenience and speed. Regardless of a property’s condition, they can make quick offers on it and finish the transaction far faster than they might on the open market.

Purchasing properties, often renovating them, and then reselling or renting them out for a profit is the core of their business model. Even if they make the selling process hassle-free, they usually do so in exchange for paying less than the property’s market value.

Why Would You Deal With A ‘We Buy Any House’ Company?

When selling your home, there are several reasons why a ‘we buy any house’ company can be a better option than a traditional real estate agent, who can usually take months to finalize a deal.

Let’s have a look at how dealing with these companies can benefit you.

1. Speedy Process Of Selling

A quick home sale or cash sale can be finished in as little as two weeks or less, which is especially helpful if you need to sell your property quickly for reasons like financial constraints, shifting, or other urgent reasons. While traditional estate agent sales can take several months to complete.

2. Elimination Of Property Chain

A property chain, as defined by the traditional sales process, is a series of interconnected transactions in which the sale of one property is dependent upon the sale of another.

Because of this, they can be a major cause of stress and uncertainty as the sale depends on the transactions of several parties. Unlike this, ‘we buy any house’ companies terminate the need for a property chain.

3. Assurance Of Sale

In a traditional sale, the transaction may collapse for many reasons, including buyer finance difficulties or a change of decision, even after an offer has been accepted.

Due to their readily available money, ‘we buy any house’ companies eliminate the risk of last-minute cancellations, providing homeowners with greater assurance of sale and peace of mind.

4. Helps Save Repair Expenses And Time

A ‘we buy any house’ company will purchase your home “as is.” You can easily escape renovating expenses or repairs.

Additionally, there’s no need to organize the house in anticipation of numerous viewings. This might spare you from the ongoing headache of maintaining a pristine home as well as help save both time and effort.

5. Helps Avoid Estate Agent Fees

A typical commission for estate brokers is a percentage of the transaction price. Dealing with ‘we buy any house’ companies can help you save money by avoiding estate agent fees.

You will directly receive the amount these companies offer, assuring transparency and certainty in the transaction.

How Does The ‘We Buy Any House’ Process Work?

Selling property to a ‘we buy any house’ company is an easy and quick process. The majority of legitimate companies will walk you through the below steps.

  • Fill out the online inquiry form found on their website. They will take some time to look into the property after you give them the necessary details. There is no need to come in person for this. Instead, they rely on appraisal software linked to homes similar to yours. They can then assess a property’s true value in the current market in this way.
  • Within a day of receiving your information, the company will send you an offer. Typically, a phone call will be made to go over the offer, the timeline, and when you might anticipate receiving the money. At this time, you will also have the opportunity to ask questions.
  • Further, upon reaching a mutual understanding, the business will submit a written offer to you. You’ll complete the papers and send them back.
  • An independent solicitor will represent you. It will also be covered by them, so there will be no expense to you.
  • The company you are selling your home to will also pay for a surveyor to evaluate your property. They will submit a final offer after obtaining a valuation report and legal check.
  • The company will confirm the completion date that works for you once again. Finally, there will be funds in your account on the completion date.

The Final Say

Despite all the benefits, the most important step you shouldn’t miss out on if you want to sell your house quickly for cash to a “we buy any house” company is to make sure you’re dealing with a legitimate company. You can do this by ensuring to complete some background checks so you can get a genuine and better deal.

We really hope this blog helps you.

Are you looking to close your deal with lightning speed in just 3 days? If yes, we have got your back!

At Elite Properties, based in New York, we buy your home “as-is,” with no costs or commissions. For your home, you receive the highest cash offer. Not only this but we also pay for all closing and legal fees and most importantly – you can trust us! So, let’s get in touch!

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Housing Market Predictions For The Next 5 Years

Housing Market Predictions For The Next 5 Years

For many home buyers and sellers, 2023 has been a challenging year. This is due to the fact that many people cannot afford the costs of houses and mortgages. Meanwhile, a scarcity of available housing has increased rivalry among buyers, making it difficult to locate the ideal property. In this case, housing market predictions for the next 5 years will help you take correct decision.

A valid question that a lot of buyers and sellers are posing is: Will things in the real estate market get better soon?

Numerous forecasts already exist predicting the trajectory of the US housing market in the next five years. This is because, ultimately, real estate buying and selling usually require long-term planning.

In spite of being a hot topic, the US housing market seems to be slowing down after growing rapidly during the pandemic years. Experts believe that things will get worse before they get better. This given the turbulent ride that the US housing market has been on in recent years. Some forecasts also predict that there will be fewer homes available for purchase, which may drive up prices.

Let’s take a deeper dive to understand more about the US housing market predictions for the next 5 years. So, here we go!

Current State Of The Housing Marketing

It’s useful to evaluate the current status of the US housing market before you jump onto the predictions for real estate forecasting for the next five years.

The recent data shows that U.S. home prices increased by 5.1% in January 2024 over the same month the previous year. Currently, the median price of a home in the US is approximately $402,242.

There were 2,87,009 homes sold in January of this year, up from 279,249 homes sold in the same month last year. This representing an average 2.8% annual increase in the number of homes sold.

At 6.6%, the average 30-year fixed mortgage rate nationwide has increased by 0.4% in the past year.

Housing Market Predictions For The Next 5 Years

While the housing market prediction for the next 5 years is challenging, the following gives an idea of what data shows and what most experts believe is possible.

The land use and real estate industries have been significantly affected by the COVID-19 outbreak. Over the following five years, these effects will still have a mark on the supply and demand in regional housing markets.

The fitness of local job markets, the prevalence of hybrid work mode, emerging technology, and shifting demographics are some of the factors that are anticipated to continue having an impact on the housing market in the future.

On the other hand, if real incomes increase more quickly than inflation, affordability, home sales, and prices. This may all increase due to increased purchasing power and reduced mortgage rates. Home prices will probably increase by 1% to 2% over the present inflation rate if real incomes increase between 2025 and 2027. It may take some time to get to the mid-2022 home value highs.

Let’s also have a look at what more the data has to say about the home prices, home sales, and mortgage rates below.

1. Home Prices

The National Association of Realtors predicts that by the end of 2024, home prices, which were down 0.8% year over year through December 2023, will have increased by 1.8% to $390,000.

Given the significant increase in home prices from 2021 to 2023. It is anticipated that by 2025 through 2028, prices will climb more gradually at a pace. That is approximately 1% higher than the rate of inflation, or an estimated 13% to 14% higher than 2023 levels.

2. Home Sales

In 2024 and 2025, we anticipate a significant increase in existing home sales as mortgage rates continue to drop. This following their sharp decline in 2023 to the lowest level seen since 1995.

Builders’ ability to reduce mortgage rates, thereby enhancing affordability. This fueled the surge in new home sales in 2023, with expectations for this trend to persist.

3. Mortgage Rates

During the forecast period, experts anticipate a gradual decline in 30-year fixed mortgage rates. However, it’s unlikely they will fall below 5.0% due to increased public debt in the US and globally. This would limit available financing.

Some Expert Predictions

Nobody owns a crystal ball, and accurately anticipating five years in advance is difficult. Since it’s still a long way off, a plethora of unforeseen circumstances could arise and throw off our predictions about how the economy and home market will behave.

Despite this, experts remain ready to offer a long-term perspective.

According to McBride, during the next five years, average yearly growth in house prices will be in the low- to mid-single digits. According to him, this rate of appreciation is in line with the long-term average of house prices rising at a rate. That is marginally higher than the rate of inflation.

Lawrence Yun, chief economist for the National Association of Realtors. He predicts that during the next five years, the rise of total price growth across the country would likely range from 15% to 25%.

Greg McBride, chief financial analyst at Bankrate. He predicts that during the next five years, the US real estate market would likely yield an average annual return of the mid to low single digits.

We are aware that, over time, real estate often yields stable long-term returns that outpace inflation. Although there is never a straight line. We may be more certain of the general direction of travel over a longer period of time. Also, in the case of real estate, that has historically been upward.

We really hope this blog was helpful to you in gaining better insights!

Are you looking for more guidance from professionals? This will help you to make the right decision at the right time to ace your real estate transactions.

Elite Properties is acknowledged as one of the top real estate companies in New York City because of our extensive experience. We are dedicate ourselves to delivering unparalleled real estate services of the utmost quality to our valued customers. Contact us today!

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How To Sell Your House In 5 Days?

How To Sell Your House In 5 Days?

After reading the title – how to sell your house in 5 days? of the blog, it can make you wonder in the first place whether selling your home in just 5 days is even possible or not.

Well, it is!

There can be various events in your life that can push you to sell your house at a lightning-fast speed. You might be required to make a sudden shift to a new place, have a job change, and whatnot.

There are many reasons, but practically selling a house in just 5 days or a shorter period sounds challenging. As we all know that real estate transactions involve several tedious steps and processes. Nevertheless, you can manage to get your deal done in a quicker and shorter period like 5 days with some smart techniques.

So, let’s get your hands on these super quick ways that will help you understand how to sell a house in 5 days.

Here we go!

Ways To Sell A House In 5 Days

1. Contact Cash Home Buyers

The U.S. News Real Estate states that, according to the Ellie Mae Origination Insight Report, the average time to close on a home purchase was 49 days, and the average home sat on the market for 22 days as of November 2021. This means the total average time from listing to closing is 71 days. However, the amount of days a sale is on the market and the closing time will differ for each market and sale.

Now, with such stats in hand, you can figure out how advantageous it can be to sell your house to cash home buyers like cash home-buying companies, local investors, and iBuyers. This method can ultimately cut down the time it takes to get an offer and close down your deal.

You can save your time on pre-listing preparations, showings, open houses, and sometimes even repairs. Another big edge is that it eliminates the need for a financing contingency.

However, every aspect has two sides, and so is with selling your home to cash home buyers. Cash home buyers will usually pay you 75% or less than the fair market value of your home. Still, it’s your best bet as you are required to sell your home in just 5 days or closer to it.

2. Hire A Top-performing Agent

Yes, this could be your savior if you want to sell your home in just 5 days. A quick-sale expert agent can help you understand the traditional real estate process and modify it for you to facilitate a speedy deal for you. Once they understand your timeline, they take up the responsibility to ensure you keep up with everything involved to streamline the deal faster.

Apart from such great support, selling your house through a realtor increases the likelihood of a bidding war and bids over the asking price. That will more than cover the real estate agent commission. This is typically between 5% and 6% of the sale price.

In addition to first-time purchasers, a realtor can also provide you with offers from cash home-buying companies, iBuyers, and nearby real estate investors.

3. Price Your Home Below Fair Market Value

Pricing your house below fair market value can give you a competitive advantage, especially when you want to sell faster. This tactic will get you more eyeballs online where the realtors and buyers can see that your house is underpriced.

However, ensure that you mention that the reason for the lower price is that you want to sell faster. This will help you get a genuine and bigger net of offers quicker, mostly attracting cash home buyers and first-time home buyers.

Above all these, there are fewer chances of contract issues like appraisal issues if a home buyer intends to obtain a mortgage.

4. Offer Buyer Incentives

This is yet another interesting way to crack a deal in 5 days. It is like presenting a sweetened deal by marketing irresistible benefits to potential buyers to get offers faster.

Here’s what you can do:

  • You can offer the home buyers to cover their closing costs which can help them save thousands of dollars.
  • Further, you can attract more home buyers and make the deal appealing by leaving your home appliances or other hard-to-move home stuff for the buyers.
  • A full year’s worth of HOA or condo dues may be required by some homeowners organizations at closing. In addition to accelerating negotiations, offering to pay that expense could save homebuyers some dollars at closing.
  • Selling your house with a flat repair credit could save you and the buyer a great deal of time and stress when negotiating after-inspection repairs if your house requires significant repairs.

Pro Tips For Preparing Your Home For A Quick Sale

Get your home ready for a quick sale with these pro tips:

  • Start with decluttering your house by organizing all the stuff and clearing out all your personal belongings.
  • Get a pre-listing home inspection to attract more serious offers by sharing the results with the buyers.
  • Improve your home’s appeal by making high ROI upgrades or cosmetic repairs such as painting or flooring.
  • Adding a floor plan of your house to your listing will help buyers better understand your home’s layout and room sizes. This will cut down your home’s time on the market.

Frequently Asked Questions

1. What type of house sells fastest?
Starter or small homes usually sell fastest due to their affordability and their broad appeal to a wide range of buyers.

2. How long do most houses take to sell?
Zillow estimates that selling a house takes 55-70 days on average in the United States.

3. In what months are houses hardest to sell?
In the U.S. winter is usually the worst time to sell a house because of unfavorable weather. Also, the perception among buyers that owners must be eager to sell during the busy holiday season.

That is it. We hope this helps! You can get in touch with Elite Properties for more immediate support!

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What Is Home Title Theft? Here's How To Protect Yourself

What Is Home Title Theft? Here’s How To Protect Yourself

One of the growing concerns in the real estate industry is home title theft, also known as ‘deed theft’. Fraudulent means cause individuals to lose ownership of their homes in this type of theft.

Around 3,000 deed theft complaints were filed in New York City over the past few years. Not only this, but considering the whole picture, the FBI’s 2022 Internet Crime Report states that 11,727 individuals in the US suffered real estate losses of $350 million due to fraud. The report also gives an alarming indication that home title theft is on the rise and the industry is required to take notice.

Staying aware of such fraudulent activities is wise and essential. This enable you to know what steps to take in order to protect yourself with proper prevention techniques.

So, let’s try to understand more about home title theft. Further, we’ll also shed light on how you can protect yourself from such fraud.

Here we go!

What Is Home Title Theft?

When someone steals the title to someone else’s home is what a home title theft is. Also called deed theft, this activity involves fraudulently transferring a house deed into another person’s name.

Physical documents that prove the ownership of a person are called deeds, and thieves can try to steal deeds using several cunning and unexpected techniques. Some of their techniques involve pretending to be legal associations, breaching private and sensitive information, and even just going through trash cans to steal personal details.

How Does The Home Title Theft Occur?

In this kind of fraud, title thieves use stolen personal information to forge a deed, making it look like they are the owner of the property. This means that they can impersonate homeowners to forge deeds to deceitfully sell the property for a profit or perhaps take advantage of the home equity that the actual homeowner has accrued by taking out a home equity loan.

If they target an empty house, such as an unoccupied vacation home or rental property, they can sell it and make money without your knowing by forging a deed.

In some cases, they might also try to offer “refinancing” to defraud elderly people or struggling homeowners in crisis. After that, the transaction is recorded as a house sale, giving the thief ownership of the house.

How To Prevent It?

1. Monitor Your Correspondence

It may indicate that someone has moved without your awareness if you suddenly cease getting bills or other crucial mail. Additionally, make sure your deed and mortgage statement are stored securely, and keep an eye on other critical documents you may have.

2. Watch Over Your Property

Report any unusual behavior in your neighborhood or the arrival and departure of strangers from your home to the police. In addition to providing protection for vacant homes, security system installation can discourage criminals from taking important documents like mortgage statements and deeds.

3. Use Caution When Revealing Personal Information

Bank statements and other undesirable documents containing your personal information should be discarded. Keep your birth certificate and social security card out of your pockets, and only divulge sensitive information online or over the phone to people you are certain you can trust.

4. Keep An Eye On Your Credit Report

Every year, you have the right to a free credit report from each of the three main credit reporting bureaus. You can identify questionable activity, such as newly opened accounts in your name and unauthorized adjustments to already-existing accounts, by routinely checking your credit report.

5. Obtain Title Insurance For Owners

Get coverage right away if you did not choose to get an owner’s title insurance policy at closing. If there are any liens or claims made against the property while you are the owner, this coverage can defend you. Without title insurance, individuals may find title protection services useful, but they often encounter fraud within these services.

What To Do If You Are A Victim Of Home Title Theft?

If your deed goes missing, remember that not every missing deed demands concern. You can request a fresh copy of your deed from the local county clerk’s office if it has gone missing. But if you suspect that someone stole your deed, you may have good reason to be concerned about deed theft.

The Federal Trade Commission (FTC) provides the following suggestions to anyone who has been the victim of house title theft or who thinks they might be a victim of this fraud:

  • Get in touch with any related company where you believe there has been fraud with you.
  • Set up a fraud alert and get credit reports from the main credit bureaus.
  • Inform the Federal Trade Commission about your identity theft case.
  • File an official complaint to the local police department.

Although dealing with home title theft can be extremely unsettling and upsetting, it’s critical that you act quickly to take desired measures and also ensure you interact thoroughly with the authorities.

The Final Say

Home title theft is a grave offense that, if unchecked, can have disastrous impacts on you. It’s wise to keep a watchful eye on your property. Also, to pay extra attention to any sensitive and personal information and documents. That might be the target of modern scams.

In case you suspect that you have fallen prey to home title theft, a search for a home’s title. You can also do this yourself. To accomplish this, go to the county clerk’s office in the area where your property is located. Then obtain the relevant property information.

Proactively safeguarding yourself and avoiding title theft is the key to preventing home title theft.

That is it! We really hope this helps you.

If you are looking for professional support to ease and securely conduct your real estate transactions in New York, get in touch with Elite Properties today!

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Closing Costs For Buyer: From Budgeting To Keys In Hand

Closing Costs For Buyer: From Budgeting To Keys In Hand

Closing costs for buyer are something that is often overlooked by homebuyers when purchasing a house. This is because when preparing their budget for buying a house they tend to miss out on calculating all the possible closing costs and incorporating them into the budget.

Therefore, it is crucial that you research and know the possible closing costs that you might need to incur when buying your home to avoid any unpleasant experience in your home-purchasing journey.

So, let’s try to dig deeper and understand what exactly closing costs are and what are the various types of costs that get covered under the umbrella of closing costs for buyers.

What Are Closing Costs?

Simply put, closing costs are expenses and fees incurred at the very end of the home-buying process. The reason these expenses are called “closing costs” is that they are not included in the purchase price of the property and are typically paid to third parties like real estate brokers, agents, attorneys, government agencies, and similar entities. These expenses are actually required to be paid to finish the deal.

Before a real estate transaction is completed, closing costs have to be agreed upon and legally disclosed to both the buyer and seller.

While the seller may bear some of the closing costs, the buyer bears the majority of them which can be one-time costs. For qualified buyers, government programs or state financial agencies may offer closing cost assistance too.

Closing costs can vary across states because of different fees and regulations from statutes. For example, buyers in New York pay closing costs that range from 1.5% to 6% of the agreed-upon value of the home, with an average of roughly 3%.

Closing costs can involve costs like title search fees, attorney fees, insurance, taxes, record filing, underwriting of a mortgage, and so on. We shall take a closer look at these costs in the blog further.

Most Common Closing Costs For Buyers

Here’s a list of some of the most common closing costs that you may incur as a buyer.

1. Mortgage Application Fee
When you apply for a loan to buy a house, the lender will charge you an application fee to process your loan request. This is one of the most common closing costs for buyers, as the majority of them use home loans.

2. Credit Report Fee
The credit reporting charge refers to the cost associated with obtaining a credit report. During the credit score verification process, you grant lenders access to your credit record. Using one of the three credit bureaus – Experian, TransUnion, or Equifax—they examine the credit record. Lenders include the monthly premium these agencies charge to access credit reports in closing costs for buyers.

3. Appraisal Fee
The cost of hiring a professional appraiser to determine the home’s value is covered under the appraisal fee. Appraisal is crucial as it helps in setting the value of the property that you wish to buy. This process helps you to ensure that you aren’t overpaying for the property.

4. Home Inspection Fee
Paying the home inspection fee is part of the process to assess the property’s condition. It covers the cost of hiring a professional to make sure the house is in decent condition and is worth the money.

5. Title Search Fee
This fee is applicable for the title search. The purpose for this is discovering any liens or claims against the property that the seller might not be aware of. To review public records such as land records, tax liens, deeds, court decisions, etc., you need to work with a title company.

6. Title Insurance Fee
Charging this fee is necessary to furnish title insurance, mandated by the lender for the buyer to address ownership concerns after the sale.

7. Attorney Fee
A real estate attorney’s compensation includes the cost for preparing and reviewing contracts and home purchase agreements. It goes directly to the attorney to aid in drafting relevant documents and facilitating the transaction.

8. Escrow Deposit
At the closing, it’s common practice for lenders to ask for a deposit of two months’ worth of property tax and mortgage insurance payments into an escrow account.

9. Closing Fee
The closing company receives the closing costs. Also known as Escrow fee.

10. Courier Fee
A courier fee is applicable for the transportation of documents.

11. Transfer Tax
It is the tax that is levied by the local or state government for transferring the property’s title from the seller to the buyer.

12. Prepaid Expenses
These expenses include homeowner insurance, property taxes, and the mortgage interest that will accrue between the closing date and your first monthly payment.

13. Other Costs
Other costs can include the recording fee, survey fee, underwriting fee, origination fee, PMI, and so on. Lastly, you may also have to incur some closing costs depending on your situation. For example, if the property is in a flood zone, you may also need to pay for flood insurance.

The Final Say

It is particularly important to include closing costs in your budget because they can be unexpectedly high. Saving enough money to pay these costs is the best course of action, even though you might be able to lower them or perhaps have them rolled into your mortgage loan.

Therefore, figuring them out is necessary for a seamless house purchase procedure. The type of loan, the services needed, and whether you would rather pay more in full now or over time all affect these expenses.

For precise closing estimates, review the closing disclosure. Also, remember to look over and bring all necessary paperwork to the closing.

At Elite Properties, in order to ensure that you are not taken aback by any hidden closing costs when you get ready to purchase your house, we try to make the home-purchasing process as straightforward as possible. We also provide first-rate customer service to minimize the stress associated with house buying. Get in touch, we are just a click away!

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