How Will Sandy Home Buyouts Impact Remaining Long Islanders?
Thursday, June 12, 2014
New York has finally begun closing on Sandy damaged homes on Long Island. For victims that are finally getting a payout this couldn’t have come sooner. Others are concerned that overblown prices paid for these neighboring properties might ultimately cost them dearly when they get their property tax bills.
The agency handling the transactions, NY Rising closed on the first round of 34 homes in May 2014. Average prices being paid for these properties were $360,000 according to an agency spokeswoman.
These Nassau and Suffolk County homes were either damage in the storm or destroyed. Some properties will be kept cleared to act as a storm buffer for the future. Others will be rebuilt or renovated to bring them up to stronger codes for bracing high impact storms. These homes which are being purchased by the State of New York are anticipated to be sold on at auction, with rumors of some large hedge funds already inquiring about inspecting them.
Over 470 Suffolk and Nassau County homes have received offers so far. The program has been closed but a similar number of requests from local homeowners are still under review. The homes enrolled in the ‘buyout’ program are reportedly being purchased at pre-storm values, plus as much as a 15% incentive on top of that. One attorney says the prices have been ‘fair’.
This is certainly great news for hundreds of Long Island homeowners that lost their homes, saw them damaged beyond repair, or haven’t had the funds to restore them. It may have been a long time coming, and many may have to wait into next year to see any money, but it is desperately needed help.
However, given the recent increase in foreclosures on the island there could be a substantial disparity between sale prices which are being recorded. This creates some cloudiness over how this will impact property tax assessments on surrounding Nassau and Suffolk homes, many of which may have depreciated since Sandy. Ultimately this could result in many homeowners seeing assessed values spike, and larger property tax bills in the mail.
For those that are concerned about being unfairly overcharged for property taxes on their Long Island homes, call Property Tax Adjusters, Ltd. for a review.