Lehigh Valley Real Estate Blog, Home Buying & Selling Information

Lehigh Valley Sellers Assist and Appraisals

Sellers Assist is a way for the home buyer to bury the Closing Cost to Purchase a Lehigh Valley Home in the Sales Price. The buyer gets a mortgage for a certain amount and the seller gets an amount equivalent to the purchase price minus the Sellers Assist.

In this situation, the seller is not giving the home buyer money towards closings costs. The Buyers Mortgage amount includes the "closing cost" money. The Lehigh Valley Home Seller is accepting less money for the home. 

Since the Home Buyers mortgage includes the amount of money needed for closing costs what is the big deal?

The big deal is that the House Must Appraise for the Purchase Price!

If a seller agrees to a certain purchase price (minus the sellers assist) the house must still appraise at the purchase price even though the Lehigh Valley Home Seller is not getting that amount.  

If the appraisal does not come in at the appraised value and the buyer has no other way to obtain the closing costs, the home seller will need to accept less money if they still want to sell the house. The other option is to put the house back on the market.

Lehigh Valley Chimney Repairs When Buying A Home

One of the most common problems found on a Lehigh Valley Property Inspection, with an older home, is the chimney.

The chimney may need a liner, repointing, flashing or a cap. Any of these items may present a safety or water hazard and will likely get tagged during a property inspection on an older home.

When a Lehigh Valley Home Buyer is viewing the interior of the home, check the area around the chimney involving any ceilings or the roof. Do you see water stains or paint that is lifting up? If so, there may be a problem with the chimney.

The exterior of the house should also be checked. Locate the chimney and check out the exterior wall near the base of the chimney. A common problem with a brick exterior is the deterioration or rounding of the bricks near the chimney. The mortar becomes like sand and the bricks show rounding from the water running over them. It is possible that the chimney problem may have been fixed but not the damage it had done.

If interested in the house, but concerned, ask your Lehigh Valley Real Estate Agent if the seller is aware of or has fixed any problems with the roof or chimney.

Should You Call the Real Estate Agent on the For Sale Sign?

Should you call the Real Estate Agent that is listed on the Lehigh Valley Home For Sale Sign? Let's examine what this means. Then you can make the decision.

A home owner calls a real estate agent. They meet and discuss the home it's condition and pricing. The seller then hires the agent to sell the house. They sign a contract ensuring confidentiality. Physical defects with the house (i.e. the basement gets water) must be disclosed but the agent is contractually bound not to disclose seller motivation or financial information unless the sellers gives direct permission.

When the Home Buyer directly calls the listing agent, that agent could possibly be put into a Dual Agency position. The agent could now be legally representing both the Lehigh Valley Home Buyer and the Home Seller. This is fine as long as circumstance don't lead the buyer or the seller to believe the agent has a better relationship with the "other side". It could blow up if either party feels they were misrepresented. 

Another option is that the Home Buyer could have their Own Real Estate Agent. If the Home Buyer sees a sign in front of a house, they call "their" agent who schedules the showing, shows it to them, and then delves into any questions/motivations about the property.

When a Lehigh Valley Home Buyer works with a Buyer's Agent (their agent), that agent is contractually bound to confidentiality about the Buyer's motivations and finances. The agent doesn't have a vested interest in selling the "dream house" listed by the other agent and should treat each property with neutrality. Even though home buying can be very emotional, in actuality it is a large financial transaction.

Does using a Buyer's Agent cost more money? The real estate fees and costs are built into the commission on the home sale. Whether calling the agent on the sign or calling your own agent the fees are typically the same. (it must be disclosed if they are not) 

You can call the number on the sign or work specifically with a Home Buyer's Agent. The decision is yours!

Visit www.LehighValleyHomesOnline.com for more information.