Lehigh Valley Real Estate Blog, Home Buying & Selling Information

Mortgage Rates are Instrumental in Turning Real Estate Around

Low mortgage rates are helping the Lehigh ValleyReal Estate market

For the past few months the public and private sectors have been putting their heads together to get our Country out of the mess we are in and real estate and lending have been the primary focus.  The lowering of mortgage rates and keeping the interest rates low has been playing a major role in turning real estate around and getting potential Allentown, Bethlehem, and Easton home buyers off of the sidelines and into property.

Lehigh Valley Mortgage rates have been holding at historically low rates.  The current average rate for a 30 year fixed mortgage is 5.12%.  The average rate for a 15 year fixed mortgage is 4.69%.  A recent article at Realty Times points out “Low rates contributed to existing home sales rising for the fourth consecutive month to an annual pace of 5.24 million in July, the most since August 2007, according to the National Association of Realtors.”

Keeping mortgage rates low in the Lehigh Valley seems to be doing the trick as sales volume increase across the Nation.

USDA Rural Housing Program for 100% Home Financing in the Lehigh Valley

Buying a Lehigh Valley Home Using 100% Financing

100% Financing is available for Rural areas within the Lehigh Valley. The home financing program is made available through the USDA (United States Department of Agriculture).

The USDA Rural Housing Program requires that the home being sold is located in a designated rural area (that is on the approved list) and the home buyer meets the criteria with respect to income, dependents...etc.

More information is available at Lehigh Valley USDA Rural Housing Program.

Why Use a Lehigh Valley Realtor?

A Lehigh Valley Realtor can be an invaluable tool when buying or selling real estate

An often perused question is: Should I use a Realtor or not?  People often underestimate Realtors and their importance in a real estate transaction.  On both sides of a deal a real estate professional can be an invaluable asset, helping to keep deals together and run more smoothly.

For sellers Realtors are valuable in a number of ways.  Realtors know the local market and how to evaluate the price your home should be sold at.  A real estate professional will advertise, market and expose your home to other real estate professionals as well as the community at large, not to mention the large customer base that they may already have.  A Realtor can help you set your home up for success by helping you present your property in a way that will appeal to potential buyers.  Realtors are indispensable when it comes to contracts and making sure each step is carried out to the seller’s best interest.

For Lehigh Valley Home Buyers a real estate broker can be an incredibly helpful tool when looking for real estate.  Not only does a competent Realtor know his local real estate market and what is available but he also knows the community, its amenities and all that it has to offer.  A Realtor will write a contract when a buyer has found his ideal property and will help the buyer follow through with each step until closing.

In a nutshell, Realtors are incredibly helpful in diminishing the stresses involved with buying and/or selling real estate.

Patience is a Virtue When Deciphering the Lehigh Valley Real Estate Market

Understanding Lehigh Valley Real Estate is Complicated These Days!

The reports and articles that keep surfacing about real estate are enough to keep a person’s head spinning.  There is good news and bad news on a daily basis.  A recent article by Global Property Guide was recently posted on the Nu Wire Investor and it did a great job of deciphering what is going on in today’s real estate market.  The news is, in a nutshell, complicated.  There is a lot more good news out there these days but the reality is we still have a way to go as far as recovery goes.  The facts are broken down, simply, as follows:

§ The recovery will be slow

§ Some cities are really struggling

§ Home sales are rising

§ Foreclosures are falling

§ First-time homebuyers are getting an $8,000 tax credit

§ Homes are more affordable

There is a vast amount of research available in individual markets and as a whole things are looking better for the real estate market but there are serious hurdles to overcome. The Lehigh Valley does not correspond directly with national real estate data. The valley is composed of more than 70 municipalities and each has their own "local" real estate market. Real estate varies greatly between the major cities of Allentown, Bethlehem, Easton and the surrounding areas.

Trying to Sell Your Lehigh Valley Home? Helpful Things to Prioritize!

Paying attention to how your Lehigh Valley Home will appear to others will help you sell your home.

If you are trying to sell a home in today’s market there are a few things to keep in mind that will help your home stand apart from the pack.  Prioritize and analyze what will fit in your budget and take the steps necessary to make your Lehigh Valley Home show well and appeal to prospective buyers.

§ Fresh & Clean: Inspect your home inside and out. Does it need a coat of paint? A fresh coat of paint will always be recouped in the sale of a home and is well woth the cost.  Does it look clean and tight?  Pack up the mess, the more clutter free a home the better it will show.  Likewise an empty house shows better.

§ Curb appeal: Pay attention to your home as if you were a potential buyer.  Is it inviting?  Clean?  Shore up your landscaping, make sure that your lawn is green and well-kept, that your flower beds are weeded and mulched, and that the exterior of your house is clean and respectable.

§ Inspection: There will be a home inspection completed by the buyer be prudent and do one yourself.  Attend to items that could possibly hold up the sales process.

§ Best areas of a home to update and remodel? The Master Bathroom and the Kitchen.  Don’t spend the money to gut and redo your entire home but remodeling the master bath and kitchen areas of your home will make your home more appealing and grab a buyer’s eye.

§ Evaluate: Are the remodel/updates going to net you more than you are putting into them?  It is very important in the ned to pay attention to your local market and make the improvements that will help you not hurt you.  If you are not going to get the money back that you are intending to put into your home don’t do the changes.  Do the low-cost improvements and make do by making your home clean in its appearance.

As a Lehigh Valley Home Seller, doing the above should help sell your home faster and for more money! For more tips, visit www.lehighvalleyhomesonline.com

Lehigh Valley Home Buyer Seminar

*** Free Seminar *** $8,000 Tax Credit Expires November 30th, 2009 Lehigh Valley Home Buyer Seminar Wednesday, September 16, 2009; 7:00 - 9:00 pm DeSales University, Bethlehem Township More Information   Lehigh Valley Home Seller? This seminar will also be a beneficial to you!

What Exactly is a Lehigh Valley REO Property?

REO properties in the Lehigh Valley may be a bargain for the real estate investor or home buyer.

What is REO property?  REO (real estate owned) is property which has been taken back  by the lender.  REO properties typically sell for less than comparable real estate listings as the lender usually wants to recoup the value of the loan which was traditionally less than the value of the property. The real estate market in the past couple of years differed since a fair amount of home buyers purchased homes using 100% financing (typically short sale listings).  

The differences between REO property and foreclosure or short sale properties are:

§ REO has already been acquired by the lender typically after a failed foreclosure sale or foreclosure auction.

§ The REO is owned by the bank (or lending institution) and is listed as an asset on their balance sheet.

§ The original home owner is no longer in the picture and the property is for sale.

The downside of a Lehigh Valley REO Property is that an REO property is typically not well-maintained by the financial institution that owns it. In addition, the original owner may have damaged the property or removed critical components.  The positive side of an REO is that a real estate investor or home buyer can often purchase the property at a distinctively lower price.

For more information on REO property click here.

Real Estate Report Sees Home Prices Rise, Sales Increase

 

Lehigh Valley Home Real Estate values and sales seem to be on the rise!

According to Clear Capital Report, home prices have risen across the country. Quarterly results indicate home value gains in all regions of the country, averaging out to 5%, with the Midwest gaining the most at 11.2%.  The real estate improvements are linked with summer being a buying season, increased investment opportunity and the previous large drop in home values.

The second quarter of 2009 followed a period of extremely low real estate activity, couple that with tax incentives, low mortgage rates and reduced home values, and the evidence of a true buyer’s market became omnipresent.  Acquiring a Lehigh Valley Mortgage is probably still the most difficult part of the home buying process but money is starting to loosen.  Increased sales volume indicates an improvement in the real estate sector, a welcome sign for a beleaguered economy.

For a complete look at the Clear Capital report click here.

Ridiculous offer with contingency?

This was a question posted on Trulia by a Home Buyer in Portola Hills, CA

I'm head over heels in love with a Million dollar home, but can only afford an $800k home, contingent on selling mine to take my $200k equity thus making my loan $600k. My house isn't even on the market, nor would I sell for any reason but to get THAT house. Is an offer such as this even possible or remotely plausible? Would I just be embarrassing myself?

Although asked by a buyer in California, my answer was generic in nature and applies to Lehigh Valley Home Buyers and Sellers.

A home Sale and Settlement Contingency is a negative thing to any home seller. You are asking the home seller to stop the marketing on their home and allow you the time to list your house and find a qualified buyer. Will your home be priced correctly to sell? Will your agent be pro-active in finding a buyer? The seller is taking a big risk.

Sometimes, the seller reduces the risk by continuing to market their home. If another buyer comes along then they can possibly accept that offer and kick you out of the picture (this is all dependent on how the contracts are written).

View the Complete Answer on Trulia.com

Real Estate Report: Positive Signs, Sales on the Rise

According to reports June was the 5th month in a row where pending real estate sales were on the rise, great news for the national real estate market and for the Lehigh Valley Home Seller.  While there are still many areas where sales are faltering the majority of the country is seeing home values stabilizing or dropping at greatly decreased levels while at the same time the volume of sales is picking up.  A recent Associated Press article pointed out that “the last time there were five consecutive monthly gains was July 2003.”  Lower home values, the first time home buyer tax credit and reduced mortgage rates are seen as drawing people back into the real estate market.  Lehigh Valley Home Buyers can find bargains as far as real estate goes and that is an attraction in any market.

For more information visit YahooRealEstate.com.