Lehigh Valley Real Estate Blog, Home Buying & Selling Information

Lehigh Valley Open Houses - Is this the way to Buy a House?

A lot of Lehigh Valley Home Buyers believe that going to Open Houses is the way to Buy a House.

For a tire kicker, this may be the way to do it.

For a motivated Home Buyer this is NOT the best way.

Why?

A home for sale, even a new listing, MAY NOT immediately have an Open House.

Only approximately 10%-15% of listed homes have Open Houses. A lot of Home Sellers don't want just anyone coming into their home on a Sunday afternoon. They would prefer a motivated Home Buyer, working with an agent, schedule a showing.

As a result, waiting for an open house on a home that you are interested in seeing may never happen. Are you going to risk losing the home because you don't want to pick up the phone and schedule a private showing?

Even if an Open House is scheduled, the Home Seller may get an offer and cancel the upcoming open house. You didn't even see the home let alone get an opportunity to put an offer on it.

If you see a Lehigh Valley Home you are interested in call me! We can go see it asap.

For all of your Lehigh Valley Real Estate information, visit www.lehighvalleyhomesonline.com

Making an Offer Contingent on Inspections When Buying a Lehigh Valley Home

When a Lehigh Valley Home Buyer makes an offer on a home they can make the Offer Contingent on a variety of Inspections.

The Pennsylvania Agreement of Sale includes the following inspections:

 - Property Inspection- plumbing, electrical, foundation, roof and all components of home

 - Wood Destroying Insect - termites, powder post beetles, carpenter ants, carpenter bees

 - Deed Restrictions and Zoning - can you park an RV at the home, can you have an in-law suite, can you run a business

 - Radon - natural occurring gas that can come up from the ground and enter the house through the foundation

 - Water - is the water potable

 - Septic - is the septic system in good shape and working correctly

 - Insurance - can the property be insured or does it possibly need flood insurance

 - Survey - what are the property boundaries

 - Lead Based Paint - does any of the paint have lead in it

 The Home Buyer has the ability to either "elect" to have any of the above inspections or can "waive" any of the inspections. If the buyer "elects" a particular inspection that means the purchase is contingent on the results.

For instance, if a buyer elects the Wood Destroying Insect Inspection and termites are found the buyer can terminate the sale OR they can go back to the seller to negotiate the remediation of the problem. If the Home Seller is not willing to negotiate correcting the problem the buyer may decide to terminate.

The Home Buyer is typically given 10 days to get any of the inspections done although this timeline can be modified in the agreement of sale. When a well and septic are involved and the buyer wants to test the water and get the septic inspected it is common to extend the timeline to 15 days.

Even if a home is being sold as-is the buyer still has the right to get the inspections done. It just means that no matter what the results, the seller may not be willing to fix or correct any problems and the only option the buyer may have is to terminate the sale.

For all of your Lehigh Valley Real Estate Information visit www.lehighvalleyhomesonline.com

Selling or Buying a Lehigh Valley Home with a Septic System

When a Lehigh Valley Home has a Septic System it is almost 100% guaranteed that the Home Buyer will want to get the septic system Inspected.

A Septic System typically involves a tank and then an absorption field or a sand mound. The solids and fluids flow into the tank and then the fluids flow out through the baffles into the absorption field or they are pumped into a sand mound. At that point, the fluids filter down into the ground.

When the septic tank is pumped out, it is to remove the solids. If the system is functioning properly the fluids should be at a minimum.

A typical septic inspection involves putting a dye (usually purple) in the system, via one of the plumbing fixtures in the house (toilet..etc), and then running a lot of water into the system to flood the tank and force the fluids into the field or sand mound. If the dye shows up in the grass then the fluids are not being absorbed into the ground and the system is probably failing.

If no dye shows up Great. Then the inspector probes the field to determine the fluid level. The inspector will stick a rod into the field to see the water level and then check it again later to ensure the level is going down in a timely manner. 

Then the inspector checks the tank to make sure the baffles (filters) are okay and the tank itself is okay. Bad baffles can cause solids to go into the absorption field and cause blockage. Solids should never go beyond the tank.

A Lehigh Valley Home Seller Should Not Get the Septic Tank Pumped in anticipation of the home sale. The Pennsylvania Agreement of Sale defaults to making it the responsibility of the home seller to expose the septic tank lid and getting the tank pumped upon request. If the seller gets the tank pumped two months before listing the house they may have to get it pumped again when under agreement.

If the house has been vacant for a while the septic inspection may require a more extensive test since the system has not been getting used.

The most common problem I have seen with septic systems is the baffles. To replace them runs a couple of hundred of dollars. If a new tank is required it may run a few thousand dollars. If the absorption field or sand mound needs to be replaced you may be talking big dollars $8,000 to $30,000.

For all of your Lehigh Valley Real Estate information visit www.lehighvalleyhomesonline.com.

Buying a Lehigh Valley Home when the Inventory is Low and You have a Home to Sell

Lehigh Valley Home Buyers are running into a problem when they currently Own a Home but Need to Sell It to purchase a new one. 

Ideal World When You Have a Home to Sell:

The Home Buyer lists their current home
They get an offer on their home, accept and go under agreement.
The home inspections get done on their current home and everything is moving forward.
Now the home buyer is in good position to make an offer on a home that they really love.
The Home Buyer can make the offer on the new home Contingent on the Settlement/Closing of their current home.
Hopefully, the seller on the new home agrees to accept the settlement contingency.

The Low Home Inventory in the Lehigh Valley is causing a problem in the "Ideal World" for someone with a home to sell.

Home Owner Concerns:

- What if my current home goes under agreement and we don't have a home to move to?

- The Home Seller, on the new house we want, may not be willing to accept an offer with a home sale involved on our end EVEN if it is currently under agreement.

A Lehigh Valley Home Buyer that has to Sell has a few Options to choose from:

1) List their current home, get an offer and make the sale Contingent on the Buyer Giving Them Time to find a new home. Will the buyer be willing to risk moving forward on the purchase if possibly the seller can't find another home and cancels the contract?

2) List their current home, get an offer and accept it. Find a new home and try to line up the closing dates so that you can move directly from one to the other. In the event the correct home isn't out there have an option if things don't work out renting/staying with relatives...etc.

3) Don't list their current home but wait to find the home they want to purchase first. The low inventory makes this option the most difficult. If the home buyer is interested in a home that has a lot of showings and activity the owner/seller may not accept an offer with a home sale...no matter how good. The seller may prefer to wait on a home buyer that doesn't have a home sale involved in the purchase.

Option 1 puts the most risk on the Buyer of your Home.

Option 2 puts the most risk on You. What if you can't find a home?

Option 3 puts the most risk on the Seller of the home you wish to purchase AND You if you lose a home you really want.

Whether Option 1, 2 or 3 is selected a contract can be modified to try and reduce the risk to the party Most at Risk.

For all of your Lehigh Valley Real Estate information visit www.lehighvalleyhomesonline.com.

Lehigh Valley Home Buyers Beware of Fraud when Wiring Money for Home Purchase!

If you are a Lehigh Valley Home Buyer (or anywhere else for that matter) BEWARE if you are going to WIRE the money for the Home Purchase.

There is a new Fraud taking place in the country with Home Buyers!

Home Buyers are receiving an email that looks like it is official and is coming from the title company. The email contains pertinent information with the wiring instructions on where to send the money in order to purchase the home. It is possible this email will have you wiring thousands of dollars to a Fraudster.

Everyone has become dependent on email as a major form of communications. When wiring money, this is definitely the time you should take a minute and pick up the phone and confirm with the title company (not some phone number that may be in the email) if the information you were sent is accurate. Don't wire potentially a couple of hundred thousand dollars without verifying the information.

If a Home Buyer falls prey to this Fraud there may not be a way to recover the money.

For all of your Lehigh Valley Real Estate information visit www.lehighvalleyhomesonline.com

Lehigh Valley Home Buyers Are Frustrated Looking for a Nice Home For Sale

 

After months of looking for a home, Lehigh Valley Home Buyers are getting frustrated. Where are the Nice Homes?

The Home Buyers have looked at everything currently for sale and for one reason or another have passed on each house.

Now, they are patiently waiting everyday to see what "New" home may come on the market OR has one of the previous homes reduced their price.

The current inventory of homes for Sale in the Lehigh Valley is approximately 3 months.

As a result, it is definitely considered a Home Seller's market! 

All of a sudden a nice home comes on the market and within a few days the seller has multiple offers.

The home buyer that may need some help with closing costs or is using FHA, VA or USDA financing may get left out as a more powerful buyer (possibly a cash buyer) gets the home.

This puts a lot of pressure on the home buyer to make a quick decision about placing an offer AND what to offer.

They may have to give their best offer right from the get-go and may still potentially lose the home. 

This is causing anxiety in the market. If a Lehigh Valley Home Owner is thinking about selling now may be a good time. 

For all of your Lehigh Valley Real Estate information, visit www.lehighvalleyhomesonline.com