Lehigh Valley Real Estate Blog, Home Buying & Selling Information

Preparing To Sell Your Lehigh Valley Home

Preparing to Sell Lehigh Valley Home

As you consider Selling your Lehigh Valley Home it is important to consider it from a Home Buyer point of view.

Price is critical but so is condition...and it may affect the price!

How does your home compare to other homes for sale? How well does it show versus your competition?

There are some things that a Lehigh Valley Home Seller can do to improve the condition and the buyers perspective of the home.

Carpet/Flooring and new Paint are always a positive!

Overlooked items as you prepare to sell a home are:

Stove/Oven - This appliance is included in the purchase of a home. Make sure it is clean.
Built-In Microwave - Same as Stove/Oven
Ceiling Fans - is there a layer of dust on the fan blades?
Forced Air System? Are the vents clean?
Bathrooms, Showers, Tubs and Sinks - no soap scum, caulking replaced?
Water Stains on any ceilings - if the problem has been fixed, paint.
Nail pops, cracks in any of the walls - Correct!

Lehigh Valley Home Buyers will open the oven and microwave and look at things like ceiling fans and HVAC vents. They may be interested in a home but based on the above may decide the home isn't worth what the seller is asking for it. If they decide to make an offer, they will take the condition of the home into account when deciding on a price.

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

Buying a Lehigh Valley Foreclosure Property Using a Mortgage

I'm getting a Mortgage so I can't purchase that Lehigh Valley Foreclosure Property!

This is totally untrue. The owner of the property, Mr or Mrs Jane Doe, Wells Fargo Bank (foreclosure) or the Triple A Investment Firm DOES NOT matter on a home purchase.

What matters is the condition of the property and whether or not the seller will fix/repair any issues that can be an issue with getting a mortgage.

Different mortgages want the property to be in better condition.

For instance, a conventional mortgage may be okay with a repair that is needed since the buyer is putting 20% down.

The problem, that may not be a problem for conventional financing may be a show stopper for an FHA mortgage (3.5% down) or a USDA or VA financing with 0% down.

The mortgage company is lending you more money so they want the collateral (the property) to be in a better shape with no repair issues.

The main issue with purchasing a Lehigh Valley Foreclosure Property and getting a mortgage is that Foreclosures are typically sold as-is. The buyer can get the inspections done to determine any needed repairs but the bank is not going to fix anything.

If the Lehigh Valley Home has a major problem, your mortgage company may require it get fixed before closing. The Bank (seller) says Nope, we said it is being sold as-is. Take it or leave it.

This does become more of a problem when using FHA, USDA, or VA financing to purchase a Foreclosure Property.

Many foreclosure properties do have issues that will be a problem with a mortgage (mold or water damage..etc) but some can qualify.

In fact, some of the banks do repairs before listing the property in order to increase the pool of potential home buyers and get a higher price for the property.

Don't rule out foreclosure properties just because you are getting a mortgage. Worst case, you can use an FHA 203k renovation loan in order to purchase the property. (purchase the home with a guarantee to borrow additional funds for the required repair)

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

Buying a Home in Lehigh Valley with Zoning Issues

I recently ran into a situation in the Lehigh Valley where a Home was being sold as Residential but it had been previously Zoned as Commercial. 

Halfway through the transaction, the appraiser for the mortgage company stated that paperwork was needed from the township to state the property was "now" considered residential.

The township required an inspection in order to change the zoning of the property.

The property was being purchased under a USDA residential home loan. If not deemed residential, the loan would not be approved on the property and the Home Buyers would have to find another property.

The Lehigh Valley Home Seller said "no problem, he had obtained all the permits" and it shouldn't be an issue.

Unfortunately, the seller had not requested the final inspections with the township.

When the township inspected the property, they determined 4 of the windows needed to be replaced.

Then, all of a sudden, the Lehigh Valley Home Seller wanted the buyer to help pay for the windows.

The property was listed For Sale as a residential property. It wasn't the home buyers fault that the township wanted some windows replaced. The buyers said No they would not contribute any money to resolve the issue. It wasn't "them" requesting new windows and the property was listed as a residential sale.

The home seller did eventually agree to replace the windows but it caused a delay and the property was not able to close on time.

If the purchase had fallen apart because of this there is a possibility that the buyer would have won in court to get their expenses (property inspection and appraisal) reimbursed. The home seller was not able to convey the property as listed.

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

Using a PFHA Mortgage to Buy a Home in the Lehigh Valley, Bethlehem, Easton and Allentown

Buying a Home in the Lehigh Valley with an FHA mortgage requires that the buyer has 3.5% of the purchase price as a down payment. 

A PFHA Mortgage is a mortgage that sort of sits on top of an FHA mortgage and gives a second loan to cover the 3.5% down payment.

This is a good option for someone who qualifies for a Lehigh Valley Home Mortgage but doesn't have the needed funds to move forward.

A USDA mortgage allows a home buyer to do 100% financing. A PHFA is similar but unlike a USDA mortgage the home buyer is not limited to buying in a "rural" area. They can purchase a Home in Bethlehem, Easton or Allentown.

The one downfall with an FHA or PFHA mortgage is that the home buyer must purchase a home in good shape and is move-in ready. The appraiser (from the bank/mortgage company) is going to view the home and decide if there are any needed repairs. 

A home buyer must purchase a home that is in good shape or hope that the home seller will make any repairs that come up as a result of the transaction.

A home being sold as-is with known problems is typically not an option for a PHFA mortgage.

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

Lehigh Valley Home Title Insurance - Liens on a Home that may affect the Buyer

When a Lehigh Valley Home Buyer purchases a home, they hire a Title Insurance company to ensure that there are no Liens or Encumbrances on the home.

Title Insurance is a one time fee paid at closing to ensure you, the home buyer, is protected from any past issues with the home (unpaid taxes, water/sewer bills, tax liens...etc).

The Pennsylvania Agreement of Sale states that the seller must provide "clear title" for the property.

The Title Company is hired by the Lehigh Valley Home Buyer to ensure this occurs (any liens are paid off) and to "insure" that anything that may pop up in the future from a past problem is covered.

A mortgage on a Lehigh Valley Home purchase requires Title Insurance. A cash buyer can skip this coverage but should they? Definitely not!

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

Buyer CD (Consumer Disclosure) Needs to be Signed 3 Days Before Closing or You Can't Close!!

After the mortgage meltdown a few years ago, the government (aka CFPB) implemented a new regulation that could STOP the closing on your new home.

In order to ensure "Buyer Beware", a Lehigh Valley Home Buyer, getting a mortgage on a home, must receive a document (from the mortgage company) known as the Buyer Consumer Disclosure 3 days before the closing. If the Home Buyer does not receive and sign this document at least 3 days before closing an act of god won't allow the closing to occur.

For example, if you are due to close on your new home on Friday you must receive and sign this document before midnight on Tuesday.

If the Buyer CD doesn't get signed until Wednesday guess what? Your home purchase will have to get moved to the following Monday.

There is no addendum available to over-ride this government requirement.

The Lehigh Valley Home Seller should also receive a Seller Consumer Disclosure but the 3 day beforehand timeline ONLY applies to the Buyer CD AND a home buyer getting a mortgage.

The home sellers agent (listing agent) may want to check with the buyers agent or mortgage company 3 days before the closing to ensure the Home Buyer did sign the form in the required amount of time.

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

Buying a Lehigh Valley Home When You Have a Home to Sell

A lot of Lehigh Valley Home Buyers, especially in the $200,000 or up price range, have to sell their current home in order to purchase a new home. Most home owners can't afford to own two homes.

How do you purchase a home when you need to sell your current home?

The Correct way to Sell and Buy a Home:

You list your home for sale, go under agreement, then make an offer on your new home continent on the settlement (closing) of your current home.

The problem:

Doing it the "correct" way can be a problem because of the low inventory of homes for sale. Your home may go under agreement and you don't have a new home to purchase! You can end up homeless and need an alternate plan.

The Incorrect way to Sell and Buy a Home:

You don't have your Lehigh Valley Home listed For Sale:

Mr Seller, I don't have my home currently listed but I want to purchase your home. Will you give me the time to market and sell my home plus the additional time needed to close?

The problem:

This is a major negative to a Lehigh Valley Home Seller whom may be entertaining a lot of showings or even multiple offers. Are they willing to take the risk that you can sell your current home fast and in a timely manner?

Accepting the buyers offer and ageeing to take their home off the market and go under agreement may require a really good offer (price, inspections, large deposit)

The Semi-Correct way to Sell and Buy a Home:

The "Home Buyer" lists their current home for sale but makes the purchase contingent on them finding a new home. This way they can make an offer on the new home contingent on "closing" on their current home.

The problem:

A home buyer may not be willing to take the risk. Is the Lehigh Valley Home Buyer willing to stop their home search, possibly start spending money (inspections and appraisal) for a home they aren't certain they will be purchasing? 

Finding a home buyer to agree to the above may be difficult. The Lehigh Valley Home Buyer may be tough on negotiations to accept what the seller is asking for and want the seller to give them a safety net (inspections and appraisals will be done after the home seller knows they are definitely buying a new home). What if any of these cause the buyer to walk? Now, the home seller will lose the house they plan on buying.

A Home Sale Contingency may be used to address any of the above issues when you need to sell a home in order to buy a home. Depending on the situation, a contingency and/or verbiage in the agreement of sale (on both homes) may be needed.

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These are some of the solutions to purchasing a Lehigh Valley Home when you have a home to sell. I would be happy to discuss any of these in more depth Give me a call. Joe

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

Lehigh Valley Low Home Inventory is Causing Problems for Buyers Asking for Repairs

The Lehigh Valley Home Inventory has been low for the past year or two. This is causing a pent up demand with Home Buyers.

A house comes on the market and it may have multiple offers within a few days.

Lehigh Valley Home Buyer's are making really good offers that would never have been done a few years ago. 

This may seem good to Lehigh Valley Home Sellers but is it really? 

Home Buyers are getting forced into making hasty decisions. "If you want the house we need to write up an offer now!!"

The second showing, where a buyer pays more attention to the home's condition and what they will offer, may never occur. 

As a result, the home buyer is dependent on the property disclosure and property inspections to justify their offer. We love the house but are all of the major systems okay?

All of a sudden, the Home Buyers are faced with the fact that they paid full price or maybe higher for a property that needs thousand of dollars of Repairs.

The Home Seller received this offer, and potentially multiple offers, after only being on the market a few days.

Are the home sellers going to be willing to work with the buyer to negotiate some potential repair issues?

It depends on the motivation of the Lehigh Valley Home Seller. Do they wish to "deal" with the current buyer or put the home back on the market? Are they going to disclose any problems the previous buyer found with the home if they put the home back on the market? Legally, they are supposed to.

If a house was under agreement and comes back on the market your real estate agent should be checking to see what happened. Why did the deal fall apart?

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

Lehigh Valley 55+ New Construction and Community News

The Lehigh Valley, PA has become known as a great place to retire. As a result, we have 24 55+ Communities in the Allentown, Bethlehem and Easton areas and are continuing to add more.

Last month, Bethlehem Township approved Traditions of America (TOA) at Green Pond as a new 55+ community.

Green Pond is a great location within minutes from route 33 and William Penn Highway. The community still has some approvals to get through and anticipates breaking ground in the spring of 2019 with homes being available towards the end of 2019.

TOA is also trying to get a new community approved in the Coopersburg area called Traditions of America at Locust. If approved, it is anticipated that this community will start towards the end of 2019. 

Toll Brothers has a new 55+ community in South Whitehall. It is called Regency at South Whitehall and is located off Walbert Avenue and Cedar Crest Boulevard (north of route 22 on the west end of the valley). 

Kay Builders has a new 55+ community in the Emmaus/Lower Milford area. It is called The Fields at Indian Creek and is located south of route 22/78 and west of Cedar Crest Boulevard.

After years of lawsuits between the builder and the HOA at Riverview Estates in Forks Township, it appears everything has been finally worked out and new construction has started again in the community with a new builder.

Currently, Toll Brothers, Kay Builders and Riverview Estates are the only 55+ Developments for New Construction in the Lehigh Valley where a buyer can select the lot, the home, and have their "custom" home built. All of the other 55+ Communities are resales only.

For all of your Lehigh Valley 55+ Information contact Joe Finnerty at 484-241-1641 or visit www.lehighvalley55plus.com.

Lehigh Valley Home Buyer Should Have Mortgage Preapproval

It is very common when I ask a potential Lehigh Valley Home Buyer if they have a Mortgage Preapproval they say NO.

The Home Buyer wishes to see a home, has tried some of the on-line mortgage calculators and believes they are in great shape to purchase a home based on the calculated monthly payment.

Yes, a home buyer should be comfortable with the monthly payment and maybe they can definitely afford the payment but that doesn't mean they can get a mortgage to purchase a home.

Getting a Mortgage to buy a Lehigh Valley Home involves many factors:

Credit Score - if your score is below 600 it can be very difficult to get a mortgage (620 or higher is much better)

Debt ratios that support the ability to pay the monthly payment - how much monthly income do you have versus how much debt

Job Stability - if you recently switched jobs this can cause a problem especially if you switched job types

Self employed or own a business - can you show a consistent income?

Savings - do you have the down payment plus closing cost money saved up?

For instance, FHA requires 3.5% of the purchase price plus an additional 5-6% for closing costs (sellers assist can be used for the closing costs but you must have the 3.5%).

A Lehigh Valley Home Buyer may know their finances but they should still talk to a Mortgage Professional before starting to look at homes.

Know your Numbers!

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