In Episode 2 of Get Rich or Rent Trying, Richard Alvarez, Ohizua Russel and Sergio Lopez dig into why Long Island has so few homes for sale and what that means for buyers and sellers this fall. They cover the 2-1 buydown, how fast a well-priced listing goes, why an accepted offer in New York isn’t a deal yet, and the Friday-night phone call that turned into a listing.
Long Island’s affordability problem starts with supply. Richard opens with a number he had read recently: about a two-month supply of homes for sale, when a balanced market has about six. Tough zoning makes building hard, so demand keeps pressing on the same small pool of houses.
Three takeaways
- Low inventory, not just rates, keeps Long Island prices rising. Richard’s math: a buyer at 6.5% who paid $50,000 to $100,000 less can have a lower monthly payment than a buyer at 5.5% who paid more.
- Buyers have more tools than they think. A 2-1 buydown softens the first two years, several borrowers can share one loan (Sergio has closed with four), and the boroughs have more supply and less competition.
- In New York, an accepted offer isn’t a deal until contracts are signed. Speed, a clean file and a team that can get attorneys on the phone close sales.
The 2-1 buydown, explained by a loan officer
Sergio’s go-to in a higher-rate market is the 2-1 buydown:
“Let’s say right now the rate is six and a half, right? Now, the 2-1 means, so year one, their rate’s gonna be four and a half, okay? And they’ll pay four and a half for that first 12 months. After 12 months, now it’s gonna be five and a half.” — Sergio Lopez
In year three the loan returns to the full rate. If the savings are $500 a month in year one and $250 in year two, about $9,000 is prepaid up front. Paying points for a permanent cut runs $10,000 to $12,000 on a $500,000 to $600,000 loan and only pays off if you keep the loan for years. With a 2-1 buydown, the unused portion comes back if you refinance after year one: “You don’t lose it.”
How fast homes move, and why “accepted” isn’t “sold”
Richard’s team lists on a Tuesday, holds open houses Saturday and Sunday, and on a hot property has offers by Monday, which puts a good home under accepted offer in 10 days to two weeks.
“Now, the only thing with New York and a handful of other states in America is that we’re an attorney state, right? … Whereas in New York, your accepted offer, but it’s not even legally binding.” — Richard Alvarez
The hosts lost a buyer on a $1.3 million Woodside deal after 40 days of getting contracts out. Ohizua’s counterpoint: a Queens listing of theirs sat six months and expired; the sellers called back three weeks later and it is now under contract. Outside Long Island, he says, you are no longer competing with 30 or 40 offers.
Why you still hire an agent
Richard’s win of the month started with answering his phone at 8:30 on a Friday night. The caller expected voicemail; she was already talking to the agent who had sold her the house, and chose Richard instead. Her Queens multifamily had a vacant unit with a signed lease, a paid deposit, and a tenant who never moved in and then reappeared. Richard got real estate attorneys on the phone, reached an agreement to cancel the lease legally, and, with the seller out of the country, the team changed the locks, set up photography and listed the home.
“You could technically not hire a realtor and sell your home, 100%. … But you’re paying for expertise in the situations where things can get really, really, you know, sophisticated and complex, you know?” — Richard Alvarez
FAQ
How quickly will my Long Island home sell right now?
Priced right and showing well, Richard’s experience is an accepted offer within 10 days to two weeks. Town-wide averages run longer; Redfin put West Hempstead at about 30 days on market in August 2026.
Is an accepted offer binding in New York?
No. New York is an attorney state, so either side can walk until both parties sign the contract and the deposit is paid, usually after inspection and attorney review. A complete file and fast scheduling matter on both sides.
What is a 2-1 buydown and who should use it?
A temporary rate reduction: two points below your note rate in year one, one point below in year two, then the full rate. Sergio prefers it to paying points in a high-rate market because unused funds are returned if you refinance early. Ask your lender who funds it.
Should I wait for rates to drop before buying?
The hosts’ view is that lower rates bring more buyers and higher prices, so acting now at a higher rate and a lower price can come out ahead, with a refinance later. Run the numbers with a lender first.
Watch the full episode: https://www.youtube.com/watch?v=cNYE2-3OJ8w
Selling this fall, or buying in this market? Start with your free home value estimate at https://teammodernx.com/how-much-is-my-home-worth/, then contact Richard Alvarez at Team Modern X, West Hempstead: 631-316-3654 or https://teammodernx.com/contact/. English and Spanish.