How Long Islanders can save when they're buying, closing on or owning a house

Katie Masters and her fiance have looked at more than 40 Long Island homes during the hunt for their first house.

They've made three offers, one of which reached the home inspection. There were several issues that made them ultimately walk away from the house — but not before they had to pay up.

Now, "we're out around $600," said Masters, 32. And the search continues.

Masters and her fiance are representing themselves, rather than working with a real estate agent, and are looking at homes with the potential to add an accessory dwelling unit (ADU) so her future brother-in-law can live with them. It's one of several measures they're taking to save money, both at the closing table and in the long run.

Buying a home comes with costs at every stage — while shopping, making the deal and long after you get the keys. But there are opportunities to change the math: From comparing financing and assistance to negotiating credits and concessions to lowering or offsetting some of the ongoing costs of ownership. Some moves can save real money; others come with caveats.

When you're looking for a house

First, buyers should shop around for a mortgage lender early into their preapproval. Some lenders provide first-time buyer incentives or closing-cost assistance.

Jeffrey Segal, president of Lighthouse Mortgage Corp. in Hauppauge, said buyers should compare rates and the value of any lender credits, and determine how long they expect to keep the mortgage.

"If you think you'll refinance within four or five years, you're probably best served taking the higher rate and getting a credit, because you're still going to be ahead of the game," he said.

There are also town- and county-led down payment assistance programs that provide up to $50,000 for qualified buyers. Application deadlines vary by municipality. The Long Island Housing Partnership (LIHP) in Hauppauge offers counseling year-round and can help buyers understand eligibility, said Stacey Krumholz, its acting director of counseling programs.

Median price of a house in July

Nassau: $880,000

Suffolk: $750,000

Over 100 employers have participated in the Employer Assisted Housing Program, said James Britz, executive vice president and chief operating officer of LIHP. They include Adelphi University, Brookhaven National Laboratory, Catholic Health Services and Northwell Health.

The employer gives a contribution at closing, Britz said, which is then matched by federal and state funds. Employer participation and available funding determine the amount a buyer can receive.

The assistance has helped 750 Long Islanders since its creation decades ago, Britz said, with both down payments and home rehabilitation.

"People are buying preexisting homes that may need a lot of work," he said.

The State of New York Mortgage Agency's (SONYMA) Down Payment Assistance Loan (DPAL) also provides assistance to eligible borrowers. The loan provides a minimum of $1,000 and a maximum of either 3% of the home purchase price up to $15,000 or $3,000, whichever is higher, according to its website. If a homebuyer is interested, they should make sure their mortgage lender is a SONYMA participant (there are many on Long Island) and inquire about their eligibility.

"I did have a buyer get that full $15,000," said Skylar Urraro, a real estate agent with Daniel Gale Sotheby's International Realty in Huntington. The funds fully covered the buyer's closing costs, she said.

A typical home inspection

on Long Island can range from

$500 to $600

Once buyers figure out if they qualify for programs like these, they should get a sense of their incoming monthly payments. Their agents can gather details like the home's insurance cost, whether there is a history of repetitive loss and current water, gas and electricity usage, said Long Beach-based real estate agent Leah Tozer of Daniel Gale Sotheby's International Realty.

"Doing that kind of due diligence will let you know a lot about what's going on in the house," she said.

Although inspections are an upfront cost, they can expose larger hidden expenses. Costs are determined by square footage, but a typical home inspection on Long Island can land somewhere between $500 and $600, local real estate agents say.

In the house Masters and her fiance had inspected, there were signs of water damage and mold in the basement, and remediation can cost thousands to repair. There was also a drainage issue around one of the outdoor entrances, Masters said.

She is crowdsourcing her homeowner friends for leads on an inspector at a lower cost for next time, hoping to find an inspection around $300.

When you're buying a house

Terms matter to sellers, said Kaitlynn McCartney, a real estate agent with Compass in Oceanside.

"It's really about trying to pinpoint what is most important to the seller, outside of the dollar amount," she said.

Real estate agents can do some "fact-finding" about the seller's situation and what they need in order to close, McCartney added.

The negotiation phase is also the time to discuss concessions. These can be worked into a contract, folded into a down payment or applied to the final purchase price, either as a deduction (so the buyer can save the funds for other expenses, like renovations or closing costs) or an increase. If buyers don't have cash on hand for closing costs, sellers can add that onto the sales price instead, which would lead to a higher monthly payment but can help the buyer at the closing table, Segal said.

Look at any house that's been sitting for 65 to 80 days that's gotten a price drop. You might be able to get a concession for it.

— Dominique Ehrlich, Coldwell Banker American Homes agent

Concessions like this can "help the buyer come out of pocket less," said Dominique Ehrlich, a real estate agent with Coldwell Banker American Homes in Smithtown.

Price cuts can also signal the chance for a concession. "Look at any house that's been sitting for 65 to 80 days that's gotten a price drop," Ehrlich said. "You might be able to get a concession for it. There's a reason why they're sitting, so something's more negotiable."

Segal said buyers should only bring up concessions through their attorneys while contracts are being negotiated, instead of upfront: "You don't want to make it seem like a weaker offer."

Average days on market

in the second quarter of 2026

Nassau: 47 days

Suffolk: 50 days

McCartney noted buyers may have time between an accepted offer and closing to continue saving.

"Most of these homebuying-related costs do not have to be paid until you're at the closing table," she said. "That can be about 90 days; another three months to save money."

Real estate agents typically earn between 2% and 3% in commission at the closing. Masters said that's why she and her fiance are representing themselves. Although it's possible that the seller will cover it, which can be determined when the home is in contract, "there's no guarantee," Masters said.

Real estate agents can offer a variety of resources: They can tap their networks to find new listings and advocate for their clients during negotiations. Masters and her fiance are getting married next summer and are hoping to find their home before then. They're not against working with a real estate agent next year if they're unsuccessful.

"If we're getting nothing, it might give us an edge," she said.

Most closing costs relate to title searches and title insurance, said Syosset-based real estate attorney Michael Ackerman. Though clients can shop title companies, Ackerman said, there is not much flexibility there.

"Those are generally state-regulated, or regulated in a way that there really shouldn't be much deviation," he said.

For properties that require flood insurance, Ackerman said the buyer can sometimes take over the seller's policy to maintain the lower premium.

"A lot of times, a buyer can save money there, and then just reimburse the seller for the unused portion that the seller paid for," Ackerman said.

When you already own the house

For first-time buyers, starting out in a home that has space for an ADU is "a great stepping stone," McCartney said. Income from a legal rental unit can help offset monthly housing costs.

Krumholz said rental income can also help qualify for a mortgage. Freddie Mac and Fannie Mae offer options for borrowers looking to finance, build or renovate an ADU on their desired property.

The cost of building an ADU on Long Island varies widely, depending on labor rates, permits and the condition of the property.

New York State's Plus One ADU Program provides up to $125,000 as a forgivable loan to low- and moderate-income homeowners, so they can either build or enhance an existing ADU.

Despite the time, work and costs to ready an ADU, Britz said in the long run, it can offer financial security and, in some cases, an opportunity to plant roots, if a homeowner rents the space to family.

"I think it's beneficial to any homeowner, whether it's a first-time homebuyer or they've been in their home for 30 years," he said. "It's another model that helps create affordability here, and keeps families together."

That's the case for Masters, and she and her fiance plan to make it work. They are exclusively looking for homes with ADUs or the ability to create one with proper permitting. The couple has been pre-approved for a $750,000 home and are looking below that figure.

"If the house is, let's say, $700,000 and the basement is not done, we could probably do a little bit of work to make sure that it is," she said. "But it really depends on the price."

Another cost for homeowners to consider is taxes. The bill typically includes school, county and town tax and miscellaneous items. A homeowner has little say over how much they owe, but can challenge the assessment by grieving their taxes.

Sean Acosta, president of Plainview-based Property Tax Reduction Consultants,  has told Newsday checking and grieving taxes is like submitting tax returns: it should be done annually.

"It's just like doing your regular taxes," he told Newsday earlier this year. "You've got to make sure every single year, you're paying your fair share."

First, homeowners should make sure they are receiving all possible exemptions, he said. Then, residents can file a tax grievance by themselves or hire a professional to do it for them. Acosta only charges if the client gets a reduction, in which case he receives 50% of the savings, he said. The reduction is not immediate — he noted residents find out about a year later.

Additionally, New York State has standardized mortgage tax rates, but municipalities can tack on local taxes as well, according to a New York State Department of Taxation and Finance webpage.

Those looking to mitigate another annual payment — energy bills — should explore free energy assessments and look into grant availability.

PSEG and NYSERDA offer free home energy assessments. PSEG professionals will come check a home for heat loss, air leaks and drafts, while the NYSERDA assessment is virtual and self-guided.

There are several utility-related grants that can help Long Islanders with varying income levels and situations. Offered through United Way Long Island, the Project Warmth Emergency Energy Fund aims to support families struggling with home heating emergencies. The program utilizes a $500,000 grant from the National Grid Foundation.

According to their website, last winter, the fund helped 2,000 households with one-time grants made as payments to the residents' oil and utility companies.

Shopping around for a new company can help cut down oil bills. Juan Carlos Conesa, the co-chair and professor of Stony Brook University's economics department, recommends checking in with friends and neighbors to see which companies they use, and comparing the prices of three or four total options.

"We all have a tendency to have a provider for a very long time, and we don't actually look around to see if there are more affordable options," he said.

Nandini Trivedi-Rajan, of Garden City, has been looking for a new home with her husband for about a year now. Her husband bought their current home four years ago for $895,000. They are now looking to move and upsize, as they hope to start a family, and learned from an appraiser that their home is now worth $1.6 million.

Since moving in, the couple has renovated their kitchen: They paid $10,000 but did a lot of work themselves to save money, said Trivedi-Rajan, 32.

Her husband, Vishnu Rajan, 36, broke everything down, then painted and sanded cabinets and surfaces, she said. The couple hired a contractor to install new countertops and a backsplash.

To cut down on energy costs, the couple also added solar panels for $28,000, which includes a 10-year warranty, Trivedi-Rajan said. The system has subsidized their electric bill but did add a one-time fee to connect the system to the grid.

Lastly, they installed a reverse osmosis water filtration system for $4,500 — this, along with the kitchen renovation, have added value to their home, although that wasn't their intention at the time.

"We wanted to improve our style of living and comfort," Trivedi-Rajan said. "We weren't thinking about moving, because we had just moved in."

For homeowners and buyers alike, the main way to save is to cut out the little things, and keep an eye on the bigger picture.

"The focus we do [at LIHP] is to make sure they start paying attention to their spending," Krumholz said, "and to continue to try and grow their wealth through savings. That's number one."