The Long Island Home Buyer's Playbook

The first thing I need to know is whether this is a house we saw together or whether you walked into an open house without me. Buyers aren't my prisoner. If you see an open house while you're out on the weekend and want to go inside, by all means, go look at it. But if I wasn't there, I didn't see what you saw, so I need information. How busy was it? How many people were there? Did buyers seem interested? A quiet open house doesn't necessarily mean there aren't offers, but if the house was obviously packed, that's useful information. We know there's attention on the property, and if you want it, we're probably going to have to be aggressive.

Before we decide what to offer, I am assuming we have already completed the buyer consultation, reviewed the comparable sales and calculated how the proposed price would affect the buyer's monthly payment.

Sometimes we're only going to get one real opportunity to make the offer. I don't particularly like the traditional “highest and best” process because the buyer has to throw out a number without necessarily knowing what it would take to win, and the seller may never find out whether another buyer would have improved their terms. But when that's the process we're dealing with, I want the buyer to make an offer they can live with either way.

What I don't want is for us to lose the house and then spend the next three months talking about how you would have paid another $10,000 or $20,000 if you had known that's what it would take. That's especially difficult when you already understand from our consultation what that additional amount would have done to your monthly payment. I want you to be able to say, “That was my number. I put my best foot forward. If somebody was willing to pay more than that, I'm okay letting them have it.”

I'm not going to decide that final number for you. That's a personal decision. My job is to put you in a position where you understand the comparable sales, the competition for the house, what the payment will look like, and what you're likely going to have to do to win. Then you have to decide, individually or together as a couple, what makes sense for your finances, your family and how much you actually want that particular house. I'll support you through that decision, but ultimately it needs to be yours.

Price Is Only One Part of the Offer

Preparing the offer begins with a conversation: “What do you want to offer?”

After completing the consultation and reviewing the comparable sales, most buyers already have a strong understanding of what may be necessary to win. There usually is not much guessing involved. Sometimes I will recommend going a little higher, and sometimes I will tell them that I believe their number is too high. Most of the time, however, their offer is already close because it is based on what similar sellers have been receiving.

The area where I spend additional time is the offer's terms. Purchase price is important, but the terms can sometimes help us win even when we are not the highest bidder.

Terms That May Strengthen an Offer

Depending on the buyer, property and financing, we may discuss:

• Whether the buyer will pay the brokerage compensation required under their buyer-representation agreement
• The inspection terms
• Whether the offer includes an appraisal contingency
• Whether the buyer can cover an appraisal shortage
• Whether that appraisal-gap coverage is unlimited or capped at a specific amount
• Whether the buyer can give the seller flexibility to choose the closing date

Giving the seller flexibility to choose the closing date can strengthen an offer when timing is important to the seller.

What Makes an Offer Strong?

Purchase Price

The headline amount offered for the property.

Seller's Net Proceeds

What the seller may actually receive after compensation, concessions and other negotiated expenses.

Inspection Terms

The timing and protections included in the buyer's inspection terms.

Appraisal Protection

Whether the buyer has an appraisal contingency or agrees to cover a defined appraisal shortage.

Strong Terms From an Offer I Received

It is important to look at the seller's net proceeds—not merely the headline purchase price. I have won houses without submitting the highest offer because my buyer was paying their own agent rather than asking the seller to provide that compensation. The difference improved the seller's net proceeds enough to make our offer more attractive.

In some transactions, we may explore whether the overall purchase and financing can be structured so that the buyer does not have to pay the entire brokerage expense separately in cash. That possibility must be reviewed and approved for the buyer's particular loan program by the lender and the attorneys. It is not available or appropriate in every transaction.

Inspection and appraisal terms can also affect how the seller evaluates an offer. With financed purchases, the lender may still require an appraisal even when the buyer does not include an appraisal contingency. If the buyer is willing and financially able to cover a low appraisal, we can explain exactly what they are guaranteeing and whether that guarantee has a limit.

Sometimes our purchase price may be $5,000 or $10,000 below another offer, but our overall terms provide the seller with better net proceeds or greater certainty. The highest offer is not automatically the strongest offer.

“I think of the purchase price as the offense and the terms as the defense. We may not know what the competing offers will be, but strengthening our terms gives us another way to compete.”

The final offer still has to make sense for the buyer. My job is to show them how each term affects their risk, their cash and their ability to win—not to remove protections they genuinely need.

Once an offer is accepted, I want the home inspection scheduled as quickly as possible. In a typical Long Island transaction, an accepted offer does not provide the same protection as a fully signed contract. Until the contract is signed, the seller may still decide to proceed with another buyer. That is why I do not want unnecessary delays.

That does not mean we rush through the inspection. It means we choose an inspector who can get to the property quickly and provide the report promptly. I prefer working with inspectors who generally deliver the report within approximately 24 hours because the buyer needs enough time to understand the findings and decide how to proceed.

When I represent the buyer, I attend the home inspection. Hearing the inspector’s explanation and seeing the areas being discussed helps me understand the findings and assist the buyer with the decisions that follow.

1. 01
   Offer acceptedThe buyer’s offer is accepted, but the contract has not been signed yet.
2. 02
   Inspection scheduledWe arrange the inspection as quickly as possible.
3. 03
   Property inspectedThe inspector evaluates the visible and accessible areas and systems.
4. 04
   Report deliveredThe buyer receives and reviews the inspection report.
5. 05
   Issues addressedThe parties discuss any requests, and the attorneys document whatever is agreed upon.

What a Home Inspection Can—and Cannot—Tell You

A home inspector can only evaluate what is visible and accessible. They cannot see through walls, underneath the foundation or through the ground. That limitation does not make the inspection unimportant. It means the buyer needs to understand what the inspector examined and whether any part of the property may require additional specialized testing.

The questions I focus on are practical: Are the major systems functioning? Is there evidence of leaking? Are there significant electrical, structural, heating or safety concerns? Is there anything serious enough to affect the buyer’s decision, repair request or willingness to proceed?

A general home inspection may not include every specialized service. For example, an inspector may visually examine a pool and its equipment without pressure-testing the underground skimmer lines. Buyers should ask exactly what is included and arrange a separate specialist when additional testing is needed.

If you want the short list first, I wrote it out here: What should I look for during a home inspection?

Focus on Function, Safety and Major Problems

An inspection report can contain a long list of observations, but every item does not carry the same weight. I focus first on whether the house is livable, functional and safe enough for the buyer to move into. I also look for problems that could require substantial repairs or create additional damage if they are not addressed.

The most common repair requests tend to involve heat, active leaks, major electrical concerns, structural problems and other important systems that are not functioning properly.

Electrical concerns require judgment because they can vary substantially in scope. An ungrounded outlet or a recommendation for GFCI protection near a water source still matters. If the issue is isolated and relatively inexpensive to correct, the buyer may decide to handle it after closing.

Improperly crossed or connected wiring, unsafe conditions in the electrical panel or a more extensive wiring problem is a different conversation. Those are the types of electrical findings I would be more likely to raise with the seller.

Cosmetic requests are also less likely to be accepted in a high-demand Long Island market where sellers may have several buyers to choose from. Sellers often move toward the offer that creates the least resistance. I generally do not recommend creating a long repair list from cosmetic observations when the important systems are functioning properly.

What “As Is” Means to Me

If we specifically told the seller that the buyer would take the house as is to strengthen the offer, I believe we should keep our word. The inspection is not an opportunity to renegotiate every small item after using that promise to win the house.

That does not make the inspection pointless, and it does not mean the buyer should remain unaware of a major problem. If we discover something substantial and unexpected—such as a leaking roof, active plumbing leak, serious structural concern or significant electrical problem—we need to discuss it.

Some problems are serious enough that almost any future buyer would raise them. Before the contract is signed, the buyer can review the information with the appropriate professionals and decide whether to proceed as agreed, make a request or walk away. The final decision belongs to the buyer.

Put the Final Agreement in Writing

Repair requests are often discussed between the buyer’s agent and the listing agent. Once the parties reach an agreement, the attorneys can write the exact terms into the contract or a repair rider. Sometimes the attorneys become directly involved in the negotiation, particularly when a problem is discovered after the buyer is already under contract through a protection written into the agreement.

Nothing should be treated as resolved merely because someone said they would take care of it. The agreed repair, credit or other solution should be documented by the attorneys in the appropriate transaction documents.

Why I Now Recommend a Pool Pressure Test

For many years, I have referred buyers to a large home-inspection company on Long Island. The company provides a wide range of services, and we have completed hundreds of inspections together. When a property has a pool, the inspector visually examines the pool equipment, makes sure the accessible components are functioning and identifies anything that appears concerning.

What the company does not offer is pressure testing of the underground pool lines. Until one of my buyers brought it to my attention, I did not know that a separate pressure test was something we should consider.

I had assumed that a visual examination was the normal extent of a pool inspection because that was the service the inspectors provided. I had completed many transactions involving pools, and no one had ever mentioned pressure testing the underground skimmer lines.

How Inspection Findings Become Contract Terms

A separate transaction provides a real example of how inspection findings can move through the negotiation process. The inspector documented the concerns, the buyer’s attorney listed the items the buyer wanted addressed, the seller’s attorney responded and the final agreement was written into a repair rider.

01 — The inspection findings

02 — The buyer's attorney requests repairs

03 — The seller's attorney responds

04 — The final repair rider

Names, email addresses, street addresses, signatures and contact information have been removed to protect privacy.

The purpose of the inspection is not to find a perfect house. Very few houses will check every box or have nothing that could be improved. The purpose is to understand the property, identify the important risks and give the buyer enough information to decide whether the house still makes sense.

A serious finding does not automatically mean the buyer should walk away. Depending on the problem, the buyer may request a repair, negotiate a credit, accept the condition or decide not to proceed. My responsibility is to explain what I see, help the buyer understand the tradeoffs and make sure the final decision remains theirs.

Most of the Appraisal Conversation Happens Before the Appraisal

Once the appraisal is ordered, there is not much for me to do. The buyer pays for the appraisal through the lender, and the appraiser visits the property, reviews the applicable information and produces a valuation.

The more important conversation usually happens before the appraisal—when we are preparing the offer and deciding what the buyer is willing to guarantee.

Many houses on Long Island sell above their asking prices. In a competitive situation, a seller may want the buyer to agree in advance that they will cover some or all of an appraisal shortfall. That agreement may help the buyer’s offer get accepted, but the buyer needs to understand what they are promising and how much additional cash could be required.

A Full Appraisal-Contingency Waiver From a Real Offer

What Is an Appraisal Shortfall?

Consider this example:

The buyer offers $525,000.

The property appraises for $500,000.

The difference is a $25,000 appraisal shortfall.

The seller still has a contract to sell the house for $525,000. The appraisal does not automatically change the purchase price to $500,000.

What happens next depends on the contract. The buyer may have agreed to cover the entire shortfall, cover the difference up to a specific limit or retain an appraisal contingency that provides another form of protection.

The buyer’s lender and attorney need to explain how the appraised value affects that buyer’s financing, required cash and contractual obligations.

Possible Outcomes After a Low Appraisal

If the parties did not already agree on exactly how the shortfall would be handled, several outcomes may be possible:

• The buyer covers the full shortfall. The buyer proceeds at the contract price and provides the additional funds required for the difference.
• The seller lowers the purchase price. The seller agrees to reduce the price to the appraised value.
• The buyer and seller compromise. The seller lowers the price by part of the difference, and the buyer contributes additional money toward the remaining shortfall. With a $25,000 difference, for example, they might agree to meet somewhere in the middle.
• The seller refuses to reduce the price. The seller may decide to enforce the existing agreement or return the property to the market, depending on the contract and the advice of the seller’s attorney.
• The buyer refuses to pay above the appraised value. The buyer may decide that they are not willing to bring additional cash and may seek to cancel if the contract permits it.

I have seen every one of these situations occur. I have seen buyers cover the full difference, sellers lower the price, buyers and sellers divide the shortfall and transactions end because one side would not move.

1. 01Buyer covers the difference
2. 02Seller lowers the price
3. 03Buyer and seller compromise
4. 04Seller refuses to reduce the price
5. 05Buyer declines to contribute additional cash

Both Sides Have Something to Lose

The buyer’s negotiating position depends partly on how badly they need this particular house. A buyer who already has somewhere stable to live may be more willing to walk away and begin searching again.

That does not make walking away painless. By the time the appraisal is completed, the buyer may already have paid for the home inspection, appraisal, attorney work and part of the title process. Starting over can mean losing time and paying some of those expenses again.

The seller also has to consider the consequences of losing the transaction. The seller may have already started packing, committed to another purchase or signed a lease for their next home. Returning to the market could leave them paying for two properties or interrupt the plans they have already made.

That is why the best result is often reached when everyone remains reasonable and tries to work through the problem. However, neither side has the same amount of leverage in every transaction.

The contract controls what each party is required or permitted to do. If the buyer already guaranteed an appraisal shortfall, the low appraisal may not create a new opportunity to renegotiate. The attorneys and lender need to confirm the buyer’s obligations for that specific transaction.

My role is not to influence the appraiser or tell the appraiser what conclusion to reach. My role is to prepare the buyer for the possibility of a low appraisal before the offer is made, explain the practical choices if a shortfall occurs and help negotiate when the contract leaves room for a solution.

The Quiet Middle of the Transaction

After the buyer signs the contract and the lender begins working toward the mortgage commitment, there often is not much visible activity.

The bank is completing its underwriting and may contact the buyer for updated or additional documentation. If that happens, the buyer should respond quickly. Otherwise, we are generally waiting while the bank, title company and attorneys complete their respective parts of the transaction.

Most of my hands-on work has already taken place by this point. I prepared the buyer before the search, helped structure the offer and guided them through the inspection, repair negotiations and appraisal-related decisions. If everything was set up properly before the contract was signed, the transaction should now follow the terms that everyone agreed to.

That does not mean I disappear. I like to call the buyer, say hello, make sure they do not need anything and conduct what I think of as a mental-health check. Waiting without seeing much progress can make people nervous, even when everything is proceeding normally.

At this stage, I am primarily there for support and advice. If a problem arises, I help solve it. If I see a potential problem developing, I point it out before it becomes more serious. Otherwise, I allow the lender, title company and attorneys to do their work.

The next major point when I become directly involved again is usually the final walkthrough.

What the Mortgage Commitment Actually Means

The pre-approval that a buyer receives before shopping is a preliminary review. It indicates that the lender may be willing to provide financing based on the information and assumptions available at that time, but it is not a guaranteed loan offer.

A mortgage commitment is a much more advanced step. It means the lender has reviewed the loan application and agreed to provide the financing, subject to the terms and conditions written in the commitment letter.

The purchase contract normally gives the buyer a specific amount of time to obtain and provide that commitment. Depending on the transaction, the deadline might be 15, 20, 30 or 45 days. The exact deadline is written into the contract and handled by the attorneys.

Once the commitment is delivered, the buyer may no longer have the same ability to cancel under the mortgage contingency. However, the precise effect depends on the language of that particular contract. The buyer’s attorney should explain when the contingency has been satisfied and what obligations remain.

The buyer must still complete the conditions listed in the commitment letter. That may include obtaining homeowners-insurance coverage, providing updated financial documents or satisfying other requests from the underwriter. A commitment is an important approval, but it does not mean the buyer can stop cooperating with the lender or make financial changes without consequences.

A Real Mortgage Commitment

Check for Financial Changes Before They Become Problems

I do not try to replace the lender when it comes to financial guidance. The loan officer and underwriter are responsible for explaining what the buyer can and cannot do while the mortgage is being processed.

However, I begin that conversation much earlier. During the initial consultation, before we sign a contract, I ask whether the buyer is planning to change jobs, purchase a car, open new credit or make any other major financial change.

If something is being considered, I want the buyer to discuss it with the lender before taking action. We should verify that the change will not interfere with their ability to obtain the mortgage.

There are essentially two checks built into the process. I raise the issue during the initial consultation so that we can identify potential problems early. Once the lender becomes involved, the lender performs the more detailed review and continues monitoring the buyer’s finances through closing.

What the Title Company Is Checking

A title search is performed before closing to examine the property’s ownership history and determine whether anyone else has a legal or financial claim against it.

The search may identify issues such as:

• Existing mortgages
• Liens and judgments
• Unpaid property taxes
• Ownership disputes
• Easements or other recorded restrictions
• Other claims or encumbrances affecting the title

Related municipal searches may also reveal open permits, missing certificates of occupancy, violations or other property-record issues. The exact searches and documents required can vary depending on the property, contract and lender.

Most title problems are addressed before closing. An existing mortgage may need to be paid off, a lien may need to be satisfied or an ownership problem may require additional documentation. The attorneys and title company work through those issues so the buyer can receive the title required by the contract.

Lender’s Title Insurance and Owner’s Title Insurance

There are two different title insurance policies.

A lender’s title insurance policy protects the lender’s financial interest in the property. When a buyer obtains a mortgage, the lender will usually require this policy.

An owner’s title insurance policy protects the buyer against covered title defects and ownership claims that existed before the purchase but were not discovered during the title search. Its protection is subject to the policy’s terms, exclusions and exceptions.

I explain it to buyers with a simple example. Imagine that five years after the purchase, someone appears and says, “This house belonged to my father. My brother did not have permission to sell it.”

That does not automatically mean the person’s claim is valid. However, it illustrates the type of ownership dispute that an owner’s title insurance policy may help address. The title insurer would handle a covered claim according to the terms of the policy.

Title insurance does not guarantee that every imaginable property problem will disappear. It provides protection against the specific title risks covered by the policy. The buyer’s attorney and title representative should explain the title report, any listed exceptions and the difference between the lender’s and owner’s coverage.

Use the Final Walkthrough to Test the House

The final walkthrough normally takes place shortly before closing. This is the buyer’s opportunity to confirm that the property remains in the expected condition, agreed repairs were completed and anything included in the sale is still there.

If a repair was substantial, the buyer may want the home inspector to return for a reinspection. Other buyers may bring a parent, contractor or another knowledgeable person. That decision is made case by case and should be arranged in advance.

Most of the time, however, it is simply the buyer and me walking through the property together.

The final walkthrough is not another complete home inspection. We are checking that the house is in substantially the same condition as when the buyer agreed to purchase it and that everything we expect to be working is functioning.

Buyers should do whatever reasonably helps them feel comfortable. If bringing another person or using a property-specific checklist provides additional confidence, we can plan for that. A generic checklist found online may include items that the particular house does not have, so it should be adjusted to the actual property and contract.

If we discover damage, a missing item, an incomplete repair or something that is no longer working, we document it and notify the appropriate parties immediately. The buyer’s attorney needs to know about the problem before the buyer completes the closing.

What Happens at the Closing Table

Closing is when ownership officially transfers from the seller to the buyer and the money required to complete the transaction is distributed.

Depending on the transaction, the closing may include:

• The buyer
• The seller
• The buyer’s attorney
• The seller’s attorney
• The title closer
• An attorney representing the lender
• One or both real estate brokers

Not every person is necessarily present at every closing. Realtors are not required to attend. When I attend, my role is primarily to support the buyer, help with communication and make sure any final practical details—such as transferring the keys—are handled.

Before the Closing

The buyer should receive a Closing Disclosure from the lender at least three business days before closing. They should compare it with their Loan Estimate and ask about anything that appears incorrect or different from what they expected.

The attorney and lender will tell the buyer exactly what to bring. This will generally include identification and any funds the buyer must provide through the approved payment method.

Wire instructions should always be verified through a trusted telephone number before money is sent. Buyers should never rely on an unexpected email changing the wiring instructions.

A lot of the paperwork may be sent to the buyer electronically before closing for review and, when permitted, electronic signature. This is not true of every document or every transaction, but completing part of the paperwork beforehand can reduce the amount of time everyone needs to spend at the closing table.

At the Closing

At closing, the buyer’s attorney goes over the remaining documents with them. Much of the paperwork relates to the mortgage terms and other transaction details that have already been established. Many of the forms are standardized, and the attorney is there to explain the documents and answer the buyer’s questions as they complete the required signatures.

The attorneys and title closer also confirm that the title requirements have been satisfied. Existing mortgages, liens, water charges and other items affecting the property must be addressed according to the contract and closing requirements. Proof that agreed repairs were completed may be exchanged before closing or presented at the table.

Once the documents are signed, the funds are authorized and everyone confirms that the financial obligations have been handled, the transaction can be completed. The seller is paid, existing obligations are satisfied and the brokerage compensation is distributed or wired.

If the buyer is receiving possession at closing, the keys are normally the final exchange.

When an Agreed Repair Was Not Completed

A final-walkthrough problem should be raised immediately, preferably before everyone begins signing closing documents.

For example, suppose the seller agreed in the contract to complete a repair, but the buyer discovers at the final walkthrough that it was never done. The parties and their attorneys then need to determine how the problem will be resolved.

Possible solutions may include:

• Delaying the closing until the repair is completed
• Giving the buyer an agreed credit
• Holding an agreed amount of money in escrow until the issue is resolved

Everyone normally arrives intending to close, so the goal is to find a practical solution. However, the buyer may decide that they are not prepared to close until the seller satisfies the agreed obligation. That decision must be discussed with the buyer’s attorney because the buyer’s rights and potential consequences depend on the contract.

My role is to help communicate the practical problem and support the buyer. The attorneys determine how the legal and financial resolution should be documented.

How Long Does Closing Take?

A closing commonly takes between one and two hours. Most attorneys reserve approximately two hours so there is enough time to complete everything without rushing. Buyers should plan to be there for about two hours. If the closing finishes sooner, that is a bonus.

That is not a guarantee. I have attended closings that lasted four or five hours because an unresolved property issue had to be addressed.

For example, a seller may say that an agreed repair was completed but be unable to provide an invoice. In another situation, the seller may bring in a professional who disagrees with the buyer’s home inspector and says that no repair was necessary. The buyer does not necessarily have to feel comfortable accepting that explanation without another look.

I have seen the seller and attorneys remain at the closing table while the buyer returned to the property to reinspect an issue. Situations like that can extend the closing considerably.

The shorter version of the timeline is here: How long does closing take in New York? And buyers in New York should expect an attorney too— Do I need a real estate attorney to sell my house in New York? explains why the legal process here works the way it does.

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