My New Blog

June 11th, 2021 8:57 AM
Most appraisers are not only the teachers of their craft but understand their real estate market. This enables them to make the correct adjustments on their subject properties comparable sales. Without this knowledge and educational background, their clients might just be satisfied with "comparable market analysis" or CMA's from local realtors. Not only does the certified appraiser want to analyze and state the true value but also communicate why, which differentiates the real estate agent from the certified appraiser. 
My recent June, 2021 note from Gwen and Jim S. of northern Maine, "thank you, Richard. The appraisal was well done and comprehensive" justifies such.
Call or text 631-513-0442 for your real estate properties fair market value, analyzed and communicated. It's not just the answer, it's why!

Posted by Richard Wayne Abatelli on June 11th, 2021 8:57 AMLeave a Comment

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Housing tenure is a factor that can influence home prices. Longer tenure can facilitate lower inventory. This also can drive prices up!!!! 
Interesting, from 1985 to 2007 housing tenure was running 5 years although to me it seemed slightly longer than that. Today, nationwide it is double that, yes 2x. In the near future, 2021-2024, the COVID-19 variable, that is, wanting a bigger home for a house office or making room for an elderly relative will drive buyers to move. Of course, as families grow, this will add to additional needs for wanting a larger home and increasing movement in the housing sector. 
If you are considering selling, call, text 631-513-0442 or email, Abatelli Real Estate Appraisals for timely market value.

Posted by Richard Wayne Abatelli on May 30th, 2021 1:00 PMLeave a Comment

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Automatic valuations such as Zillow's "Zestimate", Realtor.com, Redfin, etc., base their findings on quantitative data such as (# of bedrooms, bath, square feet, year built), not that these items are not used by appraisers but there is a difference. There are no professional agencies governing and overseeing results. No continuing education including ethics every two years and no comparable sales or adjustments shown. Automatic valuations are not used by banks or any lending institution to estimate a property's value for a mortgage. 
Now there is nothing wrong with taking a peak. After all, Zestimate can be within 5% of fair market value slightly over 50% of the time and especially when the property is listed for sale on the MLS.

Posted by Richard Wayne Abatelli on May 10th, 2021 10:16 AMLeave a Comment

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One of the keys to wearing multiple hats is to always make sure the client understands what hat you are wearing when working with them. This is why a realtor should not do any BPO's(broker price opinion) because you do not want the client thinking that you are performing an appraisal, when your not. When you hold an appraisal license your work must meet certain ethics and standards per "USPAP", The Uniform Standards of Professional Appraisal Practice. So yes, as long as you explain to the client. There  needs to be a clear understanding when a real estate agent is acting as an appraiser.  

Posted by Richard Wayne Abatelli on May 4th, 2021 10:45 AMLeave a Comment

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April 20th, 2021 9:02 AM
What is a better sell than buying a home, FEAR. Internet searches for "housing crash" published by CNBC went up 2,450% in the past month. All the hype fails to realize that housing is still the cost of Shelter not real estate investors flipping a home for profit or getting rental income, they are not the majority of buyers on the North Fork, Riverhead or Shelter Island. Yes, 2020 and the 1st Qtr. of 2021 have been crazy hard for homebuyers. Low inventory, low mortgage rates, "all cash" offers, bidding wars, it's a seller's marketplace, not a bubble. It's unhealthy because many want to buy. As rates move up slightly and the cost of home ownership rises, the days on the market(DOM), will rise, and the local real estate appraiser will be there to help. Do you know what your home is worth? 
Call us, we have been serving the real estate community on the east end of Long Island for over 35 years, its our job!

Posted by Richard Wayne Abatelli on April 20th, 2021 9:02 AMLeave a Comment

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April 7th, 2021 8:50 AM
What is it like for an appraiser in an extreme real estate market in which homes are being purchased and sold at a rapid pace and market data is being pulled ahead of time? When prices are rising almost or even more than 1% every month, market data will struggle to catch up. Historical comparable sales will show large differences between value and the price agreed upon. But, as an appraiser, we are bound to be cautious since we are accountable or shall I say responsible to the party whom is lending a good % of the agreed upon price for at least the next 5 years. Interest rates have risen from 2.5% to 3.5% so many view this as only a 1% increase but look at over the life of the loan and you will be amazed at what your really paying for a loan. 

Posted by Richard Wayne Abatelli on April 7th, 2021 8:50 AMLeave a Comment

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The real estate market continue to stay hot on the east end and Long Island in general. The most telling sign "Nationwide" as reported by the National Association of Realtors, is that there are more real estate agents than homes for sale. This reflects both the extremely tight supply of homes and how surging prices are persuading tens of thousands more people to try their hands at selling real estate. Let's discuss the surging prices and how it affects the appraisal process. In the past, lending institutions frowned on adjustments. Too many adjustments indicated poor comparable sales. Makes sense. However, with prices increasing monthly, the appraiser has no choice but to adjust the time or date sold for the surging increase in prices. In the past, appraisers typically allowed 3-6 months of time difference before making an adjustment for time. But for non-lender appraisals and for many lenders requiring an appraisal, adjustments are necessary right-a-way.
Stay up-to-date on real estate values, call Abatelli Real Estate Appraisals at 631-513-0442.


Posted by Richard Wayne Abatelli on March 22nd, 2021 1:04 PMLeave a Comment

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Determining the value of a home or real estate in general depends on both art and science. Yes, there is an increasing availability of massive amounts of data and the ability to analyze that information. Analysis of millions of pieces of disparate data informs nearly every decision made involving residential real estate.
Real estate agents, consumers, investors, mortgage lenders, insurance companies and other financial institutions need accurate valuations to inform their immediate decisions about investing in real estate. But big data has a deeper value than just estimating today's property value's. It can be used to evaluate ongoing risks that could impact not only future property values but also the cost of maintaining and perhaps repairing properties. We have all seen risk due to climate change, natural disasterstypical storms and environmental hazards. You now can add crime data and school district data.
A deep understanding of the risks associated with a property and a community is essential. Call or text 631.513.0442 or visit abatelliappraisals.com.

Posted by Richard Wayne Abatelli on March 9th, 2021 3:35 PMLeave a Comment

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February 27th, 2021 7:46 AM
The use of available data from public records(sales/listing prices/rental prices, etc.) to approximate value. Their error rate can be close when homes are similar, as with small lot and house size's such as properties in the outer borough's of Manhattan, and Nassau County or developments in outlying area's. However, the error rate is much higher, say 7.5%+ when they are off-the-market such as on the east end of Long Island. This can amount to tens of thousand's of dollars when the median price range in the towns of Southold, Riverhead, Southampton, Easthampton and Shelter Island are certainly more than One-half Million to well over One Million $$$$$. Can YOU afford not to have a NYS Certified Appraiser provide you with more specific analysis of your market and determine what's overpriced and underpriced. Call or text us at 631.513.0442. 

Posted by Richard Wayne Abatelli on February 27th, 2021 7:46 AMLeave a Comment

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February 21st, 2021 11:56 AM
How do you report Section 1031 Like-Kind Exchanges to the IRS?
You must report an exchange to the IRS on Form 8824Like-Kind Exchanges and
file it with your tax return for the year in which the exchange occurred.

Form 8824 asks for :
(1) Descriptions of the properties exchanged.
(2) Dates that properties were identified and transferred.
(3) Any relationship between the parties to the exchange.
(4) Value of the like-kind and other property received.
(5) Gain or loss on sale of other (non like-kind) property given up.
(6) Cash received or paid; liabilities relieved or assumed.
(7) Adjusted basis of like-kind property given up; realized gain.

If you do not specifically follow the rules for like-kind exchanges, you may be held liable for taxes, penalties, and interest on your transactions.

Posted in:INVESTING
Posted by Richard Wayne Abatelli on February 21st, 2021 11:56 AMLeave a Comment

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