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Home Buying 101: Questions and Answers - Your Course Finale
Your comprehensive guide to navigating the Long Island real estate market with confidence and knowledge.
Welcome Back to Our Final Lesson!
Welcome back to Home Buying 101! I'm Tom Brady, and we've reached the final lesson of our comprehensive home buying course. Over the past 12 lessons, we've covered everything from getting pre-approved to closing day, and I hope you feel empowered and prepared for your Long Island home buying journey.
Today, I want to address the most common questions I hear from buyers, tackle some persistent myths, and give you practical answers to the concerns that keep first-time buyers up at night. These are real questions from real buyers, and the answers could save you thousands of dollars and months of stress.
The Big Questions Everyone Asks
"Should I get my real estate license to purchase my home?"
This is a question I get surprisingly often, and I understand the logic – if agents get paid commission, why not get licensed and represent yourself?

The Reality:
Getting licensed to buy one house is like getting a pilot's license to take one flight. Here's why it doesn't make sense:
Licensing Requirements:
Time & Education
  • 75+ hours of education and exam preparation
  • State exam fees and licensing costs
  • Continuing education requirements
  • Board membership and MLS access fees
  • Time investment of several months
The Drawbacks:
  • No experience in negotiations or market dynamics
  • Legal liability you don't understand
  • No professional network of inspectors, attorneys, contractors
  • Time distraction from your actual job and life
  • Commission isn't guaranteed you still need to close successfully
Better Approach:
Work with an experienced agent who will negotiate a portion of their commission back to you in the form of a home buyer rebate after closing if that's your goal. You get expertise AND savings without the licensing hassle.
"Can I put in multiple offers?"
Absolutely.
This is can be a good strategy and give you added leverage in negotiations as well as uncovering sellers who are more motivated than others.
"What if I get outbid multiple times?"
This is probably the most common fear I hear, and it's completely understandable in our competitive market.

The Reality Check:
  • It happens to almost everyone even experienced buyers lose out sometimes
  • Each rejection teaches you something about the market and your strategy
  • You refine your criteria and become a stronger buyer
How to Handle Multiple Rejections:
Review Strategy
Review your strategy with your agent after each loss
Get Feedback
Get feedback on why your offer wasn't selected
Adjust Approach
Adjust your approach - price, terms, or target properties
Stay Positive
Stay positive - the right house is out there
Don't Compromise
Don't compromise on your must-haves just to win
Remember: It only takes one acceptance to become a homeowner, and losing out on the wrong house often leads to finding the right one.
"How much should I really have saved beyond the down payment?"
This is such an important question because most first-time buyers underestimate the total cash needed.
Beyond Your Down Payment, Plan For:
Closing Costs (2-3% of purchase price):
$1,000-$2,000
Attorney fees
$1,500-$3,000
Title insurance
$500-$1,000
Bank attorney fees
$300-$500
Recording fees
$800-$1,500
Survey
$500-$800
Home inspection
$500-$700
Appraisal
Moving and Initial Setup ($3,000-$8,000):
  • Professional movers: $1,500-$4,000
  • Utility deposits and connections: $500-$1,000
  • Immediate home needs: $1,000-$3,000
Emergency Fund (3-6 months expenses):
  • Should be separate from home buying funds
  • For job loss, major repairs, or life changes
Don't use this money for home purchase
Immediate Home Costs ($2,000-$10,000):
Potential Repairs
Repairs from inspection issues
Basic Furnishings
Basic furniture and appliances
Security
Security system or lock changes
Landscaping
Initial landscaping or maintenance

My Recommendation: Have at least 25-30% of your purchase price in total liquid savings, with the down payment being just part of that amount.
Long Island-Specific Concerns
"What's the difference between a cesspool and a sewer system, and why does it matter?"
This is crucial knowledge for Long Island buyers:
Sewer Systems:
  • Connected to municipal treatment plants
  • Monthly fees added to your water bill
  • No maintenance required from homeowner
  • Generally more reliable and convenient
  • Higher property values typically
Cesspool/Septic Systems:
  • On-site waste treatment on your property
  • No monthly fees but significant maintenance costs
  • Pumping required every 3-5 years ($400-$600)
  • Potential failure costs $15,000-$30,000 for replacement
  • Environmental regulations becoming stricter
Why It Matters:
Total Cost of Ownership
Is very different between the two systems
Resale Considerations
Some buyers won't consider cesspool properties
Environmental Concerns
Especially near water bodies
Future Regulations
May require expensive upgrades
My Advice: Get a house with a sewer if possible.
"Oil versus gas heat – what should I know?"
Oil Heat:
Pros: Lower upfront conversion costs, heat output efficiency
Cons: Price volatility, delivery scheduling, tank maintenance, environmental liability
Costs: Typically $2,500-$4,000 annually for average home
Considerations: Underground tank liability, conversion potential
Gas Heat:
Pros: Convenience, generally lower costs, cleaner burning, consistent supply
Cons: Higher upfront conversion costs, not available everywhere
Costs: Typically $1,800-$3,000 annually for average home
Considerations: Line availability, conversion costs $8,000-$15,000

My Recommendation: If gas is available, it's usually the better long-term choice. If buying a house with oil, budget for potential conversion costs. Propane is becoming another popular option for those who don't have natural gas on their block and don't want oil.
"Property taxes are so high – can I appeal my assessment?"
Yes, you can appeal, and here's when it makes sense:
When to Consider Appealing:
  • Grieving your assessment can be done through a tax grievance company. Most only charge you if you are successful and they generally charge one half of one years savings.
  • Recent comparable sales suggest your assessment is too high
  • Property damage or condition issues not reflected in assessment
  • Assessment increase seems disproportionate to market changes
  • Neighborhood market decline not reflected in assessments
The Appeals Process:
Research comparables
Find similar properties in your area that have sold recently
File application
Submit by the deadline (usually May 25th)
Prepare evidence
Gather documentation of your property's actual value
Attend hearing
Present your documentation
Receive decision
Get potential adjustment (or have a grievance company do it for you)
When Appeals Make Sense:
Potential Savings
Exceed the cost and time invested
Strong Comparables
Evidence supports lower value
Assessment Errors
Are clearly documented
Market Conditions
Have changed significantly
Costs vs. Benefits: Even a 10% reduction on a $20,000 tax bill saves $2,000 annually – often worth the effort.
"How do STAR and Enhanced STAR programs work?"
These are huge money-savers for Long Island residents:
Basic STAR Program:
Eligibility
Available to all primary residence owners
Benefit
Exemption on first $30,000 of assessed value
Savings
Saves approximately $700-$1,200 annually in the form of a rebate check
Application
Must apply through your town assessor
Renewal
Renewed automatically once approved
Enhanced STAR Program:
Eligibility
For residents 65+ with income under $92,300 (2025 limit)
Benefit
Much larger exemption varies by town but typically $70,000+ of assessed value
Savings
Saves $2,000-$4,000 annually for qualifying seniors
Verification
Income verification required annually
Administration
Direct from state rather than local exemption
How to Apply:
Contact Town
Contact your town assessor's office
Documentation
Provide required documentation
Early Application
Apply early - some deadlines are strict
Renewal
Understand renewal requirements

Important: These programs can save thousands annually – don't miss out by not applying!
Mortgage Myths Busted
"You need 20% down to buy a house"
This is completely false
and prevents many qualified buyers from purchasing homes.
Reality of Down Payment Options:
Conventional Loans:
  • As little as 3% down for qualified buyers
  • PMI required under 20% but can be removed later
  • Good credit gets better rates and terms
FHA Loans:
  • 3.5% down minimum
  • Lower credit score requirements
  • Mortgage insurance for life of loan or until refinanced
VA Loans:
  • 0% down for qualified veterans
  • No PMI ever
  • Competitive rates and terms
USDA Loans:
  • 0% down for rural/suburban areas
  • Income limits apply
  • Property location restrictions
The Reality: Most first-time buyers put down 5-10%, not 20%. Don't let this myth keep you from exploring your options.
Market-Specific Q&A
"Is now a good time to buy on Long Island?"
The best time to buy is when you're ready personally and financially. Here's how to evaluate market conditions:
Consider These Factors:
  • Your personal timeline and housing needs
  • Interest rate environment and your qualification
  • Job stability and income prospects
  • Local inventory and competition levels
  • Long-term investment perspective
Market Reality:
  • Long Island consistently maintains property values
  • Limited inventory creates ongoing demand
  • Interest rates fluctuate but home ownership builds equity
  • Timing the market perfectly is impossible

My Advice: If you're financially ready and plan to stay 5+ years, market timing is less important than finding the right property.
"How do bidding wars work?"
Bidding wars happen when multiple buyers want the same property:
Typical Process:
  1. Multiple offers submitted by deadline
  1. Seller reviews all offers simultaneously
  1. Best offers invited for "best and final" round
  1. Final decision made based on total package
  1. Winning offer accepted, others notified
Winning Strategies:
  • Competitive initial offer based on recent comparables
  • Strong terms financing, closing date flexibility
  • Personal appeal through letter or agent relationship
  • Quick response to best and final requests
  • Backup position negotiation if you're second choice
When to Walk Away:
  • Price exceeds your maximum budget
  • Terms become unreasonable or risky
  • Emotional bidding replaces logical decision-making
Addressing Common Fears
"What if my dream home needs a new septic system?"
This fear is understandable – septic replacement can cost $15,000-$30,000.
How to Handle This Situation:
  • Get professional septic inspection before purchase (very few sellers will allow a septic inspection)
  • Negotiate price reduction if replacement is imminent
  • Factor costs into your overall budget
  • Consider walking away if costs are too high
  • Get multiple quotes for accurate cost estimates
Financing Options:
  • Personal loans for immediate replacement
  • Home equity lines after purchase
  • Some lenders allow renovation loans
  • Payment plans with some contractors

Prevention: Always inspect septic systems before purchase, especially on properties over 20 years old (again it is recommended but very few sellers will let the septic system be inspected).
"What if the appraisal comes in lower than my offer price?"
This happens more often than you'd think – here are your options:
1
Pay the Difference
  • Bring additional cash to make up the gap
  • Simplest solution if you have the funds
  • No contract modifications needed
2
Renegotiate with Seller
  • Ask seller to reduce price to appraised value
  • Split the difference between offer and appraisal
  • Seller may prefer this to putting house back on market
3
Challenge the Appraisal
  • Provide additional comparable sales to lender
  • Request second appraisal (costly but sometimes successful- not available on federally backed loans for 120 days)
  • Show unique features not captured in initial appraisal
4
Walk Away
  • Use appraisal contingency to cancel contract
  • Recover earnest money if contingency exists
  • Continue house hunting with better price understanding
Closing Costs Breakdown
"What are typical closing costs on Long Island?"
Expect 2-3% of purchase price in closing costs:
For a $500,000 Purchase:
Total Range: $10,000-$15,000

Mansion Tax: Applies to purchases over $500,000 in Nassau County and some Suffolk towns – typically $1 per $1,000 of purchase price.
Your Next Steps
If you're ready to start your journey, contact me for a confidential consultation.
What We'll Discuss:
  • Your specific situation and timeline
  • Current market conditions in your target areas
  • Pre-approval process and lender recommendations
  • Strategy for your price range and needs
  • Realistic expectations for your home search
No Pressure, Just Information:
  • Confidential consultation about your situation
  • Market analysis for areas you're considering
  • Professional network introductions (lenders, attorneys, inspectors)
  • Honest assessment of your readiness to buy
Questions for Future Videos/ Written Courses
I want to hear from you! Submit your questions for future videos:
Email me at: [email protected] Call or text: 631-682-8660
Types of Questions I Love:
Specific property concerns or situations
Market conditions and timing questions
Process questions about any step we've covered
Long Island-specific concerns or regulations
Financial planning and budgeting questions
Your Home Buying Success Formula
After 13 comprehensive lessons, here's your formula for success:
Preparation + Knowledge + Professional Team + Patience = Homeownership Success
You Now Have:
  • Complete understanding of the process from start to finish
  • Knowledge of Long Island specific considerations
  • Realistic expectations about timeline and challenges
  • Professional network recommendations and guidance
  • Confidence to make informed decisions
Final Thoughts and Encouragement
You've invested time in learning this process, and that investment will pay dividends throughout your home buying journey and homeownership experience.
Remember:
Every buyer feels overwhelmed sometimes it's normal
The right house exists within your budget
Patient, informed buyers get better deals
Your team of professionals is there to help you succeed
Homeownership is an achievable goal with proper preparation
You're not just buying a house – you're buying a home, a community, and a future. The knowledge you've gained through this course will serve you well not just in purchasing your home, but in maintaining and potentially selling it years from now.
Trust the process, trust your team, and trust yourself. You're ready for this journey.
Thank You for Your Commitment
Thank you for investing your time in Long Island Home Buying 101. Creating this course has been my pleasure, and knowing that it helps families achieve homeownership makes every minute worthwhile.
Your success is my success, and I hope these lessons have given you the confidence and knowledge you need to navigate the Long Island real estate market successfully.
Whether you work with me or another agent, use the knowledge you've gained to make informed decisions and protect your interests throughout the process.
Welcome to your home buying journey – I'm excited to see where it leads you!
Contact Information:
Phone
631-682-8660
Office
Vintage American Realty
1551 Montauk Highway Suite E, Oakdale NY 11769
Website
www.VintageAmericanRealty.com
Ready to start your home buying journey? Let's talk!
Thank you for completing Home Buying 101. Here's to your future as a successful Long Island homeowner!
Thomas Brady SFR, e-PRO, SRES, BPOR,C_REPS
Licensed Associate Real Estate Broker/ Director of Operations
Notary Public, Retired N.Y.P.D. Lt., U.S. Air Force Veteran
Vintage American Realty LLC.
1551 Montauk Hwy. Suite E
Oakdale, NY 11769
631-682-8660