Lehigh Valley Real Estate Blog

Lehigh Valley Real Estate Home Sales

The wacky weather may have skewed the statistics but one thing is for sure...the Lehigh Valley has Home Buyers searching and viewing homes daily for the "perfect home".

At the same time, Lehigh Valley Home Sellers are starting to talk to realtors about listing their homes. The spring market has kicked in!

What happens at this time of the year is multiple offers are received on that "perfect home" or worse yet being told, as a potential home buyer, that it went under agreement before you even had a chance to see it. 

A home seller who receives and accepts an offer the first week their home went on the market, may feel that they under-priced the home. 

A home in great showing condition and priced correctly can sell in the first few weeks!!

A really good look at the competition, before deciding on a listing price, may put the home at the exact pricing point that is considered fair market value. 

Home Buyer's are looking for a "deal" but recognize a home priced correctly based on the other homes for sale and their research into the local real estate market.

Home Buyer? If you see a home that really appeals to you don't wait. Not all homes sit on the market for hundreds of days. Nice listings, priced correctly, can sell within the first week or two. 

Home Seller? The first offer really may be the best offer regardless of the number of showings.

For more information about the Lehigh Valley Real Estate Market and to search for homes, visit http://www.lehighvalleyhomesonline.com

Lehigh Valley Home Buyers Are Getting Discouraged!

The inventory of homes on the market is large! The prices are skyrocketing down! These are some of the things being said about Lehigh Valley Real Estate.

In the past few weeks, a few of the Lehigh Valley Home Buyers that I am working with put everything on hold. They went out multiple times looking at homes and gave up. They just didn't find the ideal home, out of the current inventory, and will look again when more listings come on the market.

Last week, I listed a really nice house and we received 13 showings in the first few days. It was under contract within a week. The home buyers are watching and waiting.

Lehigh Valley Home Sellers, what are you waiting for? Contact me for a free consultion about selling your home. Lehigh Valley Home Buyers must have a house under contract by 04/31/10 to receive the tax credit.

Palmer Township 4 BR, 3 BA Colonial Home For Sale

Welcome to this 4 BR, 3 Full Bath home for sale in Palmer Township, PA.

Located in the Old Orchard section of Palmer, this home has amenities to enjoy throughout the year. The wood burning fireplace in the living room makes for cozy winter evenings and the finished soundproof basement area provides a "play" area. During the warmer months enjoy the screened in deck or heated in-ground pool with spa.  

Brand new hardwood flooring accents the family room and the Stofanak kitchen w/Corian counter-tops, center island and Jennaire cook top with a convection/self cleaning oven.

The spacious master bedroom plus 3 other large bedrooms make this a house you can call home.
View Detailed Information About This Palmer Township Home.

Buying a Lehigh Valley Foreclosure Property

As a Lehigh Valley Home Buyer are you considering purchasing a Foreclosure Property?

The Foreclosure properties available throughout the Lehigh Valley go from Diamonds in the Rough to needing a major overhaul. Some houses need very little work (maybe paint and carpeting) while others may need major repairs including missing plumbing, holes in the walls, all lights removed...etc.

Foreclosure homes are sold as-is and a home buyer must acknowledge in writing that they have been made aware of this. A property inspection can be performed to determine what is wrong with the house but the bank will not do any repairs (there are some exceptions).

Depending on what financing is being used (FHA, Conventional, Rehab Loan), a needed repair may become a major problem. It may become a Mortgage Condition and the mortgage won't be approved until the problem is corrected. You, the home buyer, may have to do the repairs before the purchase can take place.

This is a risk. If you do the repair are you definitely getting the house?

A hidden problem with any Foreclosure Property in the Lehigh Valley is whether or not the house went through a "freeze". Just because the house has been winterized (pipes emptied, water turned off) doesn't mean it was done before the water pipes might have frozen. Some of the banks require the home buyer to pay for the de-winterization and then to have it winterized again. Add in the cost of the inspection and it could start getting costly for a home you may not even end up buying.

Purchasing a Foreclosure Property may end up being a good deal or possibly more headaches then you wish to deal with. Know your financing options.

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Make Your Lehigh Valley Home Eye-catching, Inexpensively

There are many inexpensive ways to make your Lehigh Valley Home more appealing

There are a million ways to improve the look of your home, some are more expensive than others. If you are thinking of selling your home or already have your home on the market here are some tried and true, inexpensive ways to improve your home and make it more appealing to a potential Lehigh Valley Home Buyer.

§ Paint. Painting a home is something that anyone can do themselves, or hire a painter to do. Fresh paint on the interior and exterior of a home makes it instantly appear clean and fresh.

§ Clean & De-clutter. Remove clutter, family photos and other personal items and clean and organize your home. Clean your carpets.

§ Repair & replace. Have a broken window? Fix it. Does your screen door squeak, oil the hinges. Look at your home with a fresh set of eyes and fix what looks broken or is broken. Duct tape may be fine for you, but probably not a prospective buyer.

These are just a few things that you can do yourself. It is a competitive Lehigh Valley Real Estate market out there and to sell your home quickly and for the most money it has to look its best.

FHA Changing the Rules on Lehigh Valley Home Buyers

The FHA is doing its part to insure that it will be able to keep financing new Lehigh Valley Homes The past few years have not been easy in the housing sector and the FHA is working hard to assure its stability in the market. Created to insure that people could purchase affordable homes and catering mostly to the Lehigh Valley First Time Home Buyer, the FHA is an integral part of the real estate business and keeping the association healthy is important to communities around the country. The changes that the FHA is making to insure its survival are as follows: § The mortgage insurance premium will rise. It will now be 2.25% of the loan amount as opposed to 1.75%. § New Borrowers will have to have a FICO score of 580 or more to qualify for a 3.5% down payment, those with a score of less that 580 will have to put a 10% down payment toward their new home. § Sellers Assist for FHA Home Loans is being reduced to 3% from 6%, to limit any inflation that can occur on the price of a house. § FHA lenders are going to be carefully scrutinized to make sure that they are adhering to FHA rules and regulations. The FHA has helped to put many people into new homes in the Lehigh Valley since its inception in 1934. Its changes reflect its desire to continue to help many more for years to come. For more information on the FHA changes click here.

FHA Will Allow Mortgage Insurance on Properties Owned Less Than 3 Months

 
HUD (Department of Housing and Urban Development) has announced that on February 1st, 2010, they will allow the FHA to Relax the Rule Restricting Mortgage Insurance on homes owned by the home seller less than 90 days.

This new ruling will allow Lehigh Valley Home Buyers to purchase properties they may not have been able to purchase in the past.

The past restrictions would not allow mortgage insurance on a home that was being sold within 90 days of being purchased.

In other words, if an investor purchased a property, remodeled it, then put it back on the market in 50 days, an FHA Mortgage could not be obtained on the property. The seller had not owned the property longer than the FHA requirement of 90 days.

The above scenario allows the house to be on the market for 40 days and possibly sold before the FHA Home Buyer could even qualify for the mortgage.

The new ruling should also attract Lehigh Valley Property Investors who wish to purchase rehab houses, clean them/fix them up, then quickly sell the home. It allows more home buyers in the market during a shorter turn-around time.

The full text of the waiver is on www.hud.gov

Lehigh Valley Real Estate Investment Tips

The following guest article was contributed by Richard Hemby a freelance writer who writes on the topics of real estate, technology, and online degrees.

When starting out in the Real Estate market, there are a few key tips that will help first-time investors maximize their returns while ensuring that they don’t overextend themselves financially. The risks of real estate investment have been highlighted in recent years by the housing market crash and the attendant foreclosures and financial difficulties that affected even the most experienced investors. However, those same difficulties present unparalleled opportunities in the current Lehigh Valley Real Estate market, as distressed and foreclosed properties can often be found at extreme discounts.

Especially when considering Lehigh Valley Real Estate, it’s essential to understand the overall market picture in the area. Investors should research the comparable properties in the area to get a sense of the real value of the property; especially if the investment is intended as a rental, it is crucial to have a clear idea of rental prices throughout the area.

According to investment professionals, a successful investment offers a ten percent return over and above expenses and loan costs. If the property is already rented, find out how much the current tenants are paying per month; this information, along with a general overview of rental prices throughout the area, can provide a solid basis for determining whether the purchase is a sound financial investment.

Start small. Purchasing a number of properties simultaneously may seem like a good idea, but this can lead to serious difficulties if the properties turn out to require serious repairs. Be certain to keep a sizable financial reserve in place for unexpected expenses; real estate investments require flexibility on the part of investors, since mechanical breakdowns and unexpected expenses are par for the course in this volatile market.

By ensuring that there is sufficient liquidity to take care of expenses, including Lehigh Valley Property Taxes and other administrative costs, investors can ensure that their real estate investments remain secure.

The most important advice, of course, is the traditional “Buy low, sell high.” In the current real estate market, it may be easy to find properties to buy low; the trick is to purchase the right properties that will appreciate in value when the real estate market returns to its previous levels. By knowing the market and by purchasing conservatively, Lehigh Valley Real Estate Investors can amass a portfolio of properties that will form the basis for future wealth.

Does NOT Using a Lehigh Valley Home Buyers Agent Save the Buyer Money?

This is a common question. If a Lehigh Valley Home Buyer does not use their own real estate agent will it save them money?

The spread of real estate information on the internet has led some home buyers to believe they do not need to work with their own real estate agent to purchase a home. They believe the only thing the real estate agent does is find the house. This is definitely not true and I'll discuss it in a future blog.

Home Buyers believe that BY NOT using their own agent they will get a better deal on the house. After all, the home owner will save half the commission.

In Pennsylanvia anyways, this is a misconception. When a listing agent signs a contract with a home seller they both agree on a total commission that will be paid to the agent's broker upon the sale of the home. The broker will typically offer half that Commission to a Buyer's Agent, from any firm, as an incentive to sell the home.

In most cases, if their is no buyer's agent, the listing agent/broker will get the complete commission. This results in No Savings to the Seller!

In addition, this means that the home buyer may end up working directly with the agent who is representing the home seller. This is known as Dual Agency and should be disclosed (in writing). The real estate agent is working for both the Lehigh Valley Home Buyer and Seller and must represent each while protecting both parties privacy and confidentiality.

Is working directly with the sellers agent in the best interest of the buyer? Can the agent truly remain neutral and equally represent both the buyer and the seller throughout the negotiations, inspections and other contingencies? Hopefully, the answer is yes but if either side feels that the other was given preferential treatment it can cause a lot of problems. 

Either way, whether the home buyer has their own Real Estate Agent or decides to work directly with the seller's agent may not affect the purchase price of the property. Why go it alone when agent representation is built into the price of almost all home purchases on the market including new construction.

Visit www.LehighValleyHomes.com for more information.

Buying a Lehigh Valley Foreclosure Home vs a Short Sale Home

  
In general, buying a Lehigh Valley Foreclosure Home is a much cleaner/faster process than a Short Sale.

You make an offer on a foreclosure and the bank accepts it, counters it, or rejects it. Once the offer is accepted, you are fully under contract to purchase your Lehigh Valley Home and if the inspections and mortgage go well you eventually move-in.

The time from the bank accepting the offer to closing on the home is typically around 1.5 months (at least in PA). Foreclososure properties usually include an addendum from the mortgage provider stating that they accept your offer and here are THEIR terms (being sold as-is, must close within 30 days...etc) 

From when you submit the offer until you hear whether or not the bank accepts it may take 1 day, a few days, or a few weeks. Each lender is different but most reply in an acceptable time. The listing agent should have some idea on a reply time. 

With a Foreclosure Property, the bank already owns the house. They don't want to own real estate and usually want to unload it (although that doesn't mean they will accept an unrealistic price). The bank typically gets a BPO (broker price opinion) or appraisal to determine the approximate worth of the property.

With a Lehigh Valley Short Sale the home owner still owns the home. They may or may not be paying the mortgage. The mortgage companies will look at each situation differently to determine whether or not there is a hardship that justifies the "Short Sale". The bank is being "Shorted" the money they are owed. They want to know Why?

Typical reasons for a Short Sale:

• Job Loss
• Divorce or Break-up of owners
• Medical Emergency

When a Lehigh Valley Home Buyer wishes to make an offer on a Short Sale, the offer is presented to the seller of the home. Since the home seller will not be making any money on the purchase, they are likely to accept an offer that may not get accepted by the bank. On the other hand, the closer the offer is to what they owe on the house the better likely hood for a successful sale. 

Once the home seller accepts the offer, it goes over to the bank to get approved. The process of the bank reviewing and either accepting, countering, or rejecting the offer is the painful part. It may take months of waiting without any indication that the bank has even looked at the offer. The term no news today is very common. In the meantime, the listing agent may continue to market the property to accept a better offer or a backup offer.

So, a home buyer may wait months without hearing a word about their offer. This is very discouraging to many home buyers. This year I worked with 4 home buyers on short sales that never closed. In each situation, the bank was given 4-6 months to give a reply on their offer. Each of the buyers moved on to another house (2 went on to purchase foreclosures) after giving the bank ample time to reply to their offer.

The term Short Sale is deceiving because it may take months to get an approval from the bank that the offer has been accepted. 

Regardless of a Foreclosure or a Short Sale Property, a Lehigh Valley Home Buyer may end up with a really good deal pursuing one of these properties. Unfortunately, there is no set roadmap since each situation is unique.

With a Foreclosure, there is no longer any involvement with the original home owners so a VERY time consuming step in the process has been removed. With a Short Sale, the home owner is motivated to sell the home before it goes into foreclosure so the home may be in better condition.  

Each property needs to be looked at with these thoughts in mind.