Thinking about buying a home on Long Island, Queens, or Brooklyn? You’re making one of the biggest financial decisions of your life – and the market in late 2025 is full of both opportunities and challenges.
Mortgage rates are sitting around 6-6.5% (and they’re not going back to 3%), home prices are still rising but at a slower pace, and inventory has improved. But here’s what most buyers don’t realize until it’s too late: the purchase price is just the beginning.
The Hidden Costs That Shock First-Time Buyers
Let me be blunt: if you’re only looking at the mortgage payment, you’re in for a rude awakening.
Here’s what a $400,000 home on Long Island ACTUALLY costs per month:
Your mortgage payment: $2,020/month (with 20% down at 6.5% interest)
But wait, there’s more:
- Property taxes: $650-$1,250/month (yes, PER MONTH – this is Long Island!)
- Homeowners insurance: $125-250/month
- Utilities: $300-500/month
- Maintenance fund: $335-670/month (you WILL need this)
Your real monthly cost: $3,500-4,000
That “affordable” $2,020 mortgage just doubled. This is why so many Long Island buyers end up house-poor – they didn’t budget for the real costs.
Property Taxes: The Long Island Reality Check
Nassau County has some of the highest property taxes in the entire country. We’re talking $8,000 to $15,000+ per year depending on your location. That’s a car payment on top of your mortgage.
Some areas of Suffolk County offer better tax rates, which is why location matters SO much on Long Island. A “cheaper” house in a high-tax area might actually cost you MORE per month than a pricier house in a lower-tax town.
This is the kind of local knowledge you need when house hunting – and exactly why working with an agent who knows these neighborhoods inside and out makes all the difference.
The 6 Biggest Mistakes Long Island Home Buyers Make
Mistake #1: Shopping Before Getting Pre-Approved
In today’s market – especially in areas with tight inventory and bidding wars – sellers won’t even look at offers from buyers who aren’t pre-approved. Don’t waste your time falling in love with homes you can’t buy.
Mistake #2: Maxing Out Your Budget
Just because a bank will lend you $500,000 doesn’t mean you should borrow that much. Remember those hidden costs? Leave yourself breathing room or you’ll be eating ramen to afford your house.
Mistake #3: Skipping the Home Inspection
I don’t care how perfect the house looks or how competitive the market is. NEVER skip the inspection. A good inspector can save you thousands – or help you dodge a money pit entirely.
Mistake #4: Falling in Love with Someone Else’s Taste
Don’t overpay for highly personalized upgrades you might not even like. Italian imported wall coverings? Custom murals? Unique fixtures? Those don’t add value. Focus on:
- Updated kitchens and bathrooms
- Good bones (structure, roof, mechanicals)
- Location
Paint colors and decorating styles are easy to change. Location and structural issues aren’t.
Mistake #5: Not Thinking About Resale
Even if you plan to stay forever, life happens. You might need to sell in 5-7 years. Buy something that will appeal to future buyers, not just your specific taste right now.
Mistake #6: Underestimating Long Island Property Taxes
I’m saying it again because it’s THAT important. Those taxes are real, they’re high, and they need to be in your budget from day one.
Understanding Your Options: Co-ops, Condos, and Single-Family Homes
If you’re looking in Queens, Brooklyn, and Long Island especially, you’ll encounter different property types:
Co-ops: You own shares in a corporation, not the actual apartment. Board approval can be lengthy and strict, but they’re often more affordable upfront. Monthly fees tend to be higher but usually include taxes and utilities.
Condos: You own your unit and get a deed. Easier approval process than co-ops, but typically more expensive. You pay separate property taxes plus HOA fees.
Single-Family Homes: You own the property and land. No board approval needed, but you’re responsible for everything. More privacy, more space, typically the most expensive option.
Each has pros and cons depending on your lifestyle, budget, and long-term plans.
The Current Market: What You're Up Against
The Good News:
- Inventory has improved – more homes available than in the past few years
- Mortgage rates have stabilized (no more wild swings)
- Home price appreciation has slowed to more normal levels
The Reality:
- In desirable Long Island neighborhoods, inventory is still tight
- Bidding wars still happen in competitive areas
- Buyers need to be ready to move fast when they find the right home
- Don’t wait for rates to drop to 3% – it’s not happening
Why Buy Now Instead of Waiting?
I hear this all the time: “I’ll wait until rates drop” or “I’ll wait until prices come down.”
Here’s the truth: every year you wait, prices go up and you miss out on building equity.
You’re building wealth. Every mortgage payment builds equity. Rent payments build your landlord’s wealth.
You’re locking in housing costs. Your mortgage stays the same for 30 years. Rent goes up every year.
You’re creating stability. No landlord can tell you no dogs, no paint, or that your lease isn’t being renewed.
But – and this is crucial – you have to be SMART about it. Don’t let emotions drive you to overpay or overextend yourself financially. The goal isn’t just to buy a home – it’s to keep it. Make informed decisions based on what you can truly afford, not what a bank says you can borrow.
Down Payment Help Is Available
Think you can’t afford the down payment? There are programs that can help:
- FHA Loans: 3.5% down for qualified buyers
- VA Loans: 0% down for eligible veterans
- USDA Loans: 0% down for eligible areas (yes, some Long Island areas qualify!)
- SONYMA: NY State program offering low-interest mortgages and down payment assistance
- Local programs: Many Nassau and Suffolk County towns offer assistance for first-time buyers, teachers, police officers, and essential workers
The right agent can help you navigate these programs and connect you with lenders who specialize in them.
Why Local Knowledge Matters
I’ve lived on Long Island for over 30 years and in Queens and Brooklyn for over 15 years. I don’t just know the statistics – I know which neighborhoods have reasonable commutes, where property taxes are more manageable, which areas have tight inventory, and where bidding wars are happening.
More importantly, I know what actually adds value and what doesn’t. I can help you avoid overpaying for someone else’s expensive personal taste and focus on homes that will serve you well and hold their value.
I became a real estate agent because I experienced homelessness at 15. I know what it’s like to not have a safe place to call home – and I know the life-changing impact of homeownership when it’s done right. That’s why I’m committed to helping you make smart, informed decisions.
Want the Complete Guide?
This post just scratches the surface. The complete guide includes:
✓ Step-by-step walkthrough of the entire home buying process
✓ Detailed breakdown of closing costs and what to expect
✓ How to write a winning offer in a competitive market
✓ What to look for during home inspections
✓ How to negotiate like a pro
✓ Timeline and checklist for first-time buyers
✓ Local lender and program recommendations
Email me at carolyn@bestnyrealestate.net and I’ll send you my FREE Complete Guide to Buying a Home on Long Island in 2025!
Just email me and I’ll send you the complete guide instantly – plus tips and insights about the Long Island real estate market delivered straight to your inbox.
Ready to Start Your Home Buying Journey?
Whether you’re a first-time buyer feeling overwhelmed, a growing family needing more space, or empty nesters ready to downsize – I’m here to help you navigate this process with honesty and expertise.
Call or text me anytime: (516) 250-4891
Carolyn A. Best
Licensed Real Estate Agent
EXIT Realty Premier
Serving Nassau County, Suffolk County, Queens, and Brooklyn
PERFORMANCE…not promises.
