Lehigh Valley Real Estate Blog, Home Buying & Selling Information

Pitfalls When Buying Your First Lehigh Valley Home

Statistically, every year approximately 40% of real estate sales are First Time Home Buyers. Last
year was no different as more than 37% of the home sales were first time
buyers.

One of the major problems Lehigh Valley First Time Home Buyers are facing is getting a mortgage.
The motivation is there but things like enough money and credit scores are
causing a problem.

As the government tightened the guidelines they made it tougher for a buyer to get a mortgage.

An ideal buyer has above a 640 credit score and a debt ratio below 45% (gross/debt each month). In addition, they have enough money saved up for the down payment (depends on loan type) and closing
costs.

As the credit score gets lower, the debt to income ratio becomes more important.(your credit isn't as good but you have less debt...makes sense).

Mortgage lenders have different qualifying factors and even if one mortgage company says No, another may say Yes.

With this in mind, there are couple of different Lehigh Valley Mortgages available:

FHA - minimum of 3.5% down payment - the buyer must have this money or have it gifted to them. This does not include the closing costs which can run 5-6% (FHA does allow up to 6% sellers assist for these costs). This is the most common loan with Lehigh Valley First Time Home Buyers. Buyer pays a monthly PMI (principle mortgage insurance) until 20% equity is obtained on the home.

USDA - 100% financing but only available in rural areas promoted by the Department of Agriculture (many homes in the Lehigh Valley qualify). The buyer must meet certain guidelines but can purchase a home with very little money. The closing costs can be buried in the mortgage using sellers assist. No PMI.

VA - 100% financing available but only to active or prior military members. Closing costs can be put into the mortgage using sellers assist.

Conventional - 5, 10, 15, or 20% down is required with the minimum down payment being lower as your credit score is higher. Unless, you put down 20% you will still have the monthly PMI that an FHA loan incurs.

As interest rates float in the 4% range, now is a great time to buy your first Lehigh Valley home. You just need to qualify for the mortgage.

Visit www.lehighvalleyhomesonline.com for all of your Lehigh Valley Real Estate information.

Lehigh Valley Home Buyer or Investor Wants to Make an Offer on a Foreclosure Property

Lehigh Valley Home Buyers and Investors want to place an offer on a Foreclosure or REO property.

I typically hear,"I can get a really good deal on a bank owned property!!"

This may or may not be the case.

There is no doubt there are good deals out there BUT the bank's will not take just any offer. A cash offer is better than an offer involving a mortgage but that doesn't mean the bank will accept a very low offer just because it is a cash offer.

The bank's have appraisers and real estate agents helping to determine value on a Lehigh Valley Home or Property.

Even so, they may list the property for more than it is worth. A low offer does not usually get accepted at this higher listing price point even though the property may still sell for the lower price months later.

The banks will slowly reduce the price until the property sells. At some point, it may cause multiple offers when it becomes the "really good deal".

For more information about Lehigh Valley Real Estate visit www.lehighvalleyhomesonline.com!

White Christmas at the Bethlehem Ice House

 

Irving Berlin’s White Christmas

When: November 10-13, 2011

Where:
Charles A Brown Ice House, Bethlehem PA
57 River Street
Bethlehem, PA 18018

Why: To benefit Military Families in Lehigh Valley

History: Sing For America, founded by the Gilbert family, performs to raise donations for families of active military. The group has raised over $27,000 through donations. Irving Berlin’s White Christmas will be their biggest fundraiser to date. Thus far, many local businesses have been very generous and supportive.

Tickets: 

www.SingForAmerica.com   610-417-2189

Group Discounts Available

Adults: 15.00 Students/Seniors: 10.00

Children 6 and under: $5.00.

All students and children of Military are ½ Price.

Download the Flyer

More information? Email gibs7usa@msn.com

8th Annual Lukie's Fall Festival - Pen Argyl - Lehigh Valley

 
On October 8th, the 8th Annual Lukie's Fall Festival will be held at Weona Park in Pen Argyl. This is a great event and supports families dealing with Spinal Muscular Atrophy which typically afflicts children under the age of two.

The event is being held at Weona Park which is located right off of route 512 in Pen Argyl.

For more information visit Lukie's Fall Festival

Lehigh Valley Real Estate Market Update - September 2011

Welcome to the Real Estate Market Update - What's going on with Lehigh Valley Real Estate?

This monthly video provides up-to-date statistical information about real estate in the Lehigh Valley including Northampton and Lehigh Counties.

Visit www.lehighvalleyhomesonline.com for more Lehigh Valley Real Estate Information!

4 Types of Homes for Sale - Lehigh Valley Buyers Getting Frustrated

 
Although there are over 5,000 homes for sale in the Lehigh Valley, the Home Buyers are having a hard time making a decision on what to purchase.

Currently, there are 4 types of homes for sale in the Valley (excluding new construction):

1) Bank Foreclosures
2) Short Sales
3) Estate or divorce sales
4) Normal resale, the seller has equity and the house is in good shape.

There are a lot of homes to look at but most fall into categories 1-3 in the above list. Lehigh Valley Foreclosures and Short Sales are being Sold as-is and many of them need more work than a buyer is willing to pursue (unless the price is right). Should they bother making that low offer? Will the bank accept? Can they get financing if the home needs a major repair?

Estate Home Sales have too many hands in the transaction. Can the 4 siblings on an estate sale come to an agreement over what to accept for the purchase price? What if repairs are discovered? Does the lawyer agree with the terms?

A similar situation is found with Divorce Sales. The couple is parting ways and each needs to mazimize what they walk away with. Negotiations can get rough plus the lawyer(s) have to agree.

That leaves Category 4 as the best home seller to work with on a home purchase. They have equity and a home in good shape. Unfortunately, these home listings are not easy to find in the Lehigh Valley. Home Sellers aren't listing their home because they feel a buyer is going to try and take advantage of the situation/market.  

When a really nice home comes on the market, is in good shape and is priced appropriately it will sell fast!!

As a Lehigh Valley Home Buyer, if you want to have a competitive advantage, it is essential to be informed of new listings or price reductions asap. Don't get caught saying: "If we had only gone to see the house last week"    

View homes (data updated daily) and sign up to get email notification of that special home when it comes on the market at www.lehighvalleyhomelistings.com 

Cinderella: The Enchanted Edition coming to Bethlehem June 23rd

Rodgers and Hammerstein’s “Cinderella: The Enchanted Edition” Presented by: Sing For America! When: June 23-26, 2011

Where:
Charles A. Brown Ice House
57 River Street
Bethlehem, PA 18018
Tickets: 610-417-2189

Benefits Military Families in Lehigh Valley

History: Sing For America, founded by the Gilbert family, performs to raise donations for families of active military. The group has raised over $20,000 through donations. Cinderella, The Enchanted Edition will be their biggest fundraiser to date. Thus far, many local businesses have been very generous and supportive.

At each performance, Children are encouraged to “dress up” as Cinderella or the Prince and each will receive a special surprise!!

Tickets: Adults: 15.00, Students/Seniors: 10.00, Children 6 and under: $5.00.

All students and children of Active Military are ½ Price. Group Discounts available.

Click here for a Printable Brochure of Cinderella

Visit www.lehighvalleyfestivals.com for information about events in the Lehigh Valley.

Long & Foster Leaves Lehigh Valley, Prudential Patt White Takes Over

 


On Monday, March 14th, the news was announced. Long & Foster had sold their Lehigh Valley Office to Prudential Patt, White Real Estate.

Although surprising, this was great news. A company that has foundings in the Lehigh Valley since 1943 (Patt White) was fully behind the ongoing success of all of the Long & Foster agents.

I have spent the past two weeks making the transition. Going forward, I am happy to be part of the Prudential Patt White Real Estate team.

Emmaus Snowblast Winter Festival

Come out this weekend and join in the Emmaus Snowblast Winter Festival.

Activities start at 4:00 pm on Friday (02/04/2011) and continue through Saturday afternoon.

For more information visit: www.emmausarts.org/snowblast/

 

Lehigh Valley Foreclosures – Dealing with the Inspection and Utilities

Foreclosure Properties in the Lehigh Valley are sold As-Is. Even so, as a buyer of a bank owned property, you have the right to get a property inspection done. Based on the results of that inspection, you can either accept the property or walk-away. If you decide to walk, you will get your deposit (escrow) back but you will be out the cost of the property inspection (~$400.00). This is a small price to pay to know exactly what you are purchasing.

The problem is that almost all bank owned (foreclosure) properties in the Lehigh Valley have been winterized (water turned off and plumbing system has something similar to anti-freeze put into it). In addition, the gas is usually off or the oil tank may be empty. So, how do you do a complete property inspection when all of the utilities are off (electric may or may not be on)?

In some situations, the bank may be willing to get the home de-winterized and the utilities turned on but in others it is up to you, the home buyer, to have this done.  Add in the cost of the property inspection and the expenses start going up for a property you aren’t even sure you are definitely going to purchase.

Last week. UGI would not turn on the gas unless the water was turned on (even though it was a forced air system). On Saturday morning, the water was turned on and the system was completely charged. UGI came out on Saturday afternoon and turned on the gas but couldn’t get the furnace working. Now we had a house with the water on and NO HEAT. Thankfully, it wasn’t a week earlier with outside temperatures in the teens.  UGI came back out on Monday, fixed the heat problem and the buyer successfully closed on the home.

A Foreclosure Property can be a good deal but the process to verify what you are purchasing is a little more difficult. The home owner is gone. A history of repairs/modifications to the house as well as utility costs is typically not available.

When buying a foreclosure property, more diligence is required on the buying side to ensure you know exactly what you are purchasing.

More information is available at www.lehighvalleyhomesonline.com