Lehigh Valley Real Estate Blog, Home Buying & Selling Information

55+ Ranch Home For Sale in Traditions of America at Hanover in the Lehigh Valley

Welcome to this 55+ home for sale at Traditions of America at Hanover. Located in the Lehigh Valley, this 2 BR, 2 BA home features one floor "ranch" style living with an open concept.. Enjoy day-to-day easy living with everything on the same floor. On a nice day, barbecue on your deck or visit the clubhouse to participate in many of the weekly activities. All of the exterior work is done for you! Grass and snow are no longer your problem! Schedule your showing today!

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More information about 55+ Communities in Lehigh Valley is available at www.lehighvalley55plus.com.

55+ Homes for Sale in the Lehigh Valley including Allentown, Bethlehem and Easton

As the baby boomers retire, it is getting more difficult to find affordable 55+ Housing in the Lehigh Valley. Even though many 55+ Home Buyers are interested in Allentown, Bethlehem or Easton, almost all of the 55+ Communities are located in the surrounding municipalities. Turnberry Mews and Villages at Monocacy Creek are the only exceptions. They are located in North Bethlehem. 

The Lehigh Valley has limited 55+ communities below the $200,000 price range. All of these communities are leasehold ownership. You don't own the land. It is not part of a condo. You must pay a monthly rental fee for the land. The community may or may not have a clubhouse and it may or may not include grass and snow removal.

These 55+ communities are:

Lockwood Congress - Forks Township
Jacob's Farm - Forks Township
Village at Fox Crossing - Forks Township
Village at Upstream Farm - Forks Township
Evergreen Village - Upper Mt Bethel

Out of the 5 above communities, the only 55+ community offering "new" homes is Village at Fox Crossing and currently that project is on-hold and there is NOTHING For Sale! 

The other 4 communities only have resales available and that is dependent on when a seller decides to sell or has to sell their current home. The monthly land rent plus HOA tends to run in the $425.00 to $575.00 price range with yearly taxes anywhere from $1,000 to $4,000/year. Price ranges on these homes run from about $20,000 to $200,000.

Above the $200,000 price range, you tend to skip above to the $250,000 price range. Every once in a while you may find something lower than $250,000 at Millbrook Chase in Lower Macungie. (getting more difficult over the past year as the low inventory causes price increases).

The bulk of 55+ communities in the Lehigh Valley range in the $260,000 and up price range (as high as in the $600,000 and $700,000 price range). 

The Lehigh Valley has 7 55+ Communities that offer New Construction:

Briarwood Commons - Whitehall Township
Fields at Indian Creek - Upper Milford Township 
Regency at South Whitehall - Allentown
Riverview Estates - Forks Township
Taylor Villas - Northampton
Tradtions of America at Greenpond - Bethlehem Township (this community is still in the works, no homes yet)
Village at Monocacy Creek - Bethlehem

Many 55+ Home Buyers tend to look at the resale market. They feel that they can possibly get more bang for their buck or would prefer not to deal with new construction or months of having to wait for a home to be built. 

Here is a list of Lehigh Valley 55+ communities that may have resales available (some of the new construction, listed above, may also have resales available):

Country Classics at Legacy - Williams Township
Four Seasons at Farmington - Lower Macungie
Four Seasons at Saucon Valley - Lower Saucon Township
Glenmoor - Palmer Township
Highlands of Glenmoor - Palmer Township
Legacy Oaks - Lower Macungie
Wild Cherry Knoll - Lower Macungie
Willow Green - Northampton
Traditions of America at Bridlepath - Hanover Township
Traditions of America at Hanover - Hanover Township

I'm here to help you with all of your 55+ Real Estate and questions. Give me a call.

Visit www.lehighvalley55Plus.com for all of our Lehigh Valley 55+ Community information.

The Mortgage Company Said the Lehigh Valley Home Didn't Appraise for the Purchase Price

As we go into the spring market in the Lehigh Valley, we are running into Appraisal problems with Home Sales and the agreed upon Purchase Price. 

The buyer agreed to pay X amount for the house but the appraisal came in lower. This is the same problem that occurred last spring. 

A low home inventory over the past two years and a pent up demand by home buyers is causing problems with what a buyer is willing to pay and what a Bank or Mortgage Company is willing to lend based on the Appraisal of the home.

When a Lehigh Valley Home Buyer purchases a home using a Mortgage, the bank orders an Appraisal on the home. An Appraisal is used as the eyes and ears for the bank. What condition is the house in? Does it need any repairs? What is the home worth? Is it worth the Purchase Price?

The appraiser visits the home, checks square footage and condition and then looks at recently sold properties to determine the value of the home. In an ideal world, the appraiser will look at sold properties in the same school district, within 1 mile of the home and homes that sold within the past few months. The home types should match. For instance, if the appraiser is determining the value of a ranch home then they should look at recently sold ranch homes.

The problem with the current market is that the appraisals don't keep up with the demand by home buyers. A home buyer that has lost out on getting a few homes may be willing to pay the asking price and possibly more than the asking price. Just because a home buyer believes the house is worth more doesn't mean the "sold properties" will justify the higher price and the bank will lend them the higher amount. 

Home values go up a little at a time. If a Lehigh Valley Home sold a block away last month for a certain price it makes it harder to sell the same exact home for $10,000 more weeks later just because 5 buyers want it. 

If a home Doesn't Appraise for the Purchase Price, the appraisal can be contested but in order to change the appraisal additional sold properties must be found or a blatant mistake in the appraisal must be identified. For instance, the appraiser didn't include the additional full bath or used ranch homes to compare to a two story colonial.

When a Lehigh Valley Home Buyer and Seller are faced with a low Appraised value there are 4 options:

- the seller takes the lower value
- the buyer agrees to make up the difference with out-of-pocket cash (the mortgage won't go higher than the appraised value)
- the buyer and seller split the difference
- the deal falls apart and the seller puts the home back on the market with hopes of getting the same higher price and a higher appraisal

If a home buyer is paying cash they may or may not make the purchase contingent on an appraisal. As a cash buyer they may decide they feel the home is worth the purchase price they are paying and since they aren't getting a mortgage an appraisal isn't required. A cash buyer can over-pay if they want to.

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

Getting a Mortgage to Buy a Home in Lehigh Valley

The first step in Buying a Home in the Lehigh Valley is to get pre-approved for a Mortgage. That way you are an educated home buyer that knows their finances and what they can afford.

In addition, if you wish to make an offer on a home the seller is going to expect to see that you have been Pre-Approved for a Mortgage. If the offer is for cash, the seller is going to want to see proof of funds (something in writing showing you have the cash). If the offer has a mortgage contingency they are going to want to see the pre-approval from your mortgage company.

A pre-approval typically means you have spoken to a mortgage company, they have pulled your credit, reviewed your income/debt and determined you should be able to borrow "x" amount of dollars towards a home purchase.

There are multiple Mortgage types available to Purchase a Home in the Lehigh Valley.

FHA Mortgage - 3.5% down payment

Conventional Mortgage - 3, 5, 10, 15, 20% down payment (options vary per buyer)

USDA Mortgage - 100% financing but house must be in a "rural" area - no down payment required - income limits apply

VA Mortgage - 100% financing - no down payment required - buyer must be an eligible veteran of the US Military

PHFHA Mortgage - similar to FHA but includes option to help offset the 3.5% required down payment

Once the home buyer gets pre-approved for a mortgage, they are considered a grade A home buyer that is ready to view homes and make an offer to purchase a home.

If you need a mortgage rep with expertise in all of the above mortgage types let me know.

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

Buying a Home in Lehigh Valley with Well Water

As a Lehigh Valley Home Buyer pursues a home, they may be interested in one that has Well Water as the water source (versus public water).

There are many homes in the Lehigh Valley that have a Well as the source of the Water for a home. The further you go from the major cities (Allentown, Bethlehem, Easton) the more prominent Wells become as the on-site water source. 

Having a Well for your water source may not be a bad thing. It is possible that the water may actually be better than public water.

When you purchase a home with a well, the PA Agreement of Sale has a contingency a buyer can elect to have the water tested. This option and the purchase should be contingent on testing of the water.

Some concerns with a Well:

Is the water potable (drinkable)?

Has the Well ever run dry?

How deep is the well?

How old is the pump?

How old is the ballister tank (typically in the basement of the home)? This can affect the water pressure in the home.

How far is the Well from the septic system (if the property is not on public sewer)? 

When you purchase a Lehigh Valley Home with a Well the water should be sampled and sent to a lab for testing. There are multiple tests that can be done on water but the minimum is Ecoli and Coliform. Is sewerage getting into the water? In addition, Nitrates, Metals and even Pesticides can be checked. Is there lead? Was the land used for farming and pesticides are present? Depending on your mortgage type you may have to test for some of these even if "you" don't care. For instance,a VA mortgage wants a test for "metals" (i.e. lead).

The PA Property Disclosure asks the seller if the well has ever run dry. Hopefully, the seller answers this truthfully. You don't want to purchase a property and run out of water when 3 people take a shower on a Saturday morning.

If the Home Buyer is doing an FHA, VA, or USDA mortgage and there is a septic system on the property there could be an issue if the well and septic aren't the proper distances apart from each other. The Well and the Septic Tank should be at least 50 feet apart and the Well and Sand Mound or Absorption Field should be at least 100 feet apart. When the appraisal is done on the home these distances WILL be looked at.

Although this may seem like a lot to take in, many Lehigh Valley Homes are purchased with wells and septic systems with no issues. 

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

Buying a Lehigh Valley Home with a Septic System

If you are considering Buying a Home in the Lehigh Valley there is a possibility that it may have a Septic System instead of public sewer. 

A septic system is an on-site sewage disposal system. Rather than the home sewage going into a public system it goes into a system that is contained on the property.

The sinks, toilets, laundry...etc all empty into a tank on the property. The solids stay in the tank and the fluids go out to a sand mound or absorption field where they are filtered and go into the ground.

Every few years, the septic tank should be pumped to remove the solids.

If the system is working correctly, the fluids are getting filtered and going into the ground. 

Some Lehigh Valley Home Buyers don't want anything to do with a Septic System. Although you won't get a sewer bill, if the septic has issues it can get expensive. 

If the home buyer wants a house "not" in the city or on a larger lot or in the country it may have a septic system.

As part of the purchase, the Lehigh Valley Home Buyer should elect to get a Septic Inspection done. This inspection is scheduled and paid for by the future home buyer.

The septic system should get flooded with water and the absorption field/sand mound checked to make sure the "earth" is accepting the fluids and the tank is correctly releasing the fluids.

The baffles (filters) in the septic tank should be checked.

The septic tank should be emptied (paid for by the home owner) and checked for cracks and integrity.

If the house has been vacant for more than 30 days a Hydraulic Load Test should be done. This is typically a 2-day test.

Many buyers purchase a home with a septic system but you should definitely make sure the purchase is contingent on the inspection.

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

Down Payment versus Escrow or Deposit on a Lehigh Valley Home Purchase

A topic that is sometimes confusing to a Lehigh Valley Home Buyer is the Down Payment versus the Escrow or Deposit required to Purchase a Home.

There are various mortgages available for a home purchase. Two common ones are 20% down conventional or 3.5% down FHA.

What this means is that for instance on a $200,000 home with a 20% conventional mortgage the buyer is going to have to put $40,000 down and for an FHA mortgage $7,000.

The down payment has absolutely nothing to do with the home or the home seller but is dependent on the mortgage type. This Down Payment is NOT required when you make an offer to purchase the home but is required on closing day when you get the mortgage and successfully close on your new home.

What is required when you make an offer to Purchase a home is a Deposit also called the Escrow. A show of good faith that you intend to purchase the home. This is the money the home seller will attempt to keep if the home buyer without any reason decides not to buy the home.

For instance, on the $200,000 example above you submit the following offer. Mr Seller I will offer you $190,000 for your home and will give you a deposit of $2,000. At this point, the seller can say "I want $195,000 and a $5,000 deposit". 

The price as well as the deposit are negotiable (there are many other negotiable items but for now we are discussing the deposit). 

The home buyer can say "Ok, we accept the $195,000 but will give a $3,000 deposit".

The buyer and seller agree on the deposit and the offer.

Once the contract is executed, the home buyer will have to provide a check made out to the listing company for the deposit. This check will be cashed and the money will be placed in Escrow towards the purchase of the home. On closing day, the listing office will bring that money to the closing and it will get applied to the buyers final costs for the purchase. If the buyer needs $10,000 and the deposit is $3,000 then the buyer will need to bring $7,000.

What happens to the deposit/escrow if the buyer doesn't buy the home?

This depends on "Why" the home buyer doesn't pursue the purchase and what contingencies are in the contract.

If the contract on the home includes inspection contingencies and the buyer and seller can't come to an agreement over repairs the buyer can terminate and ask for their deposit back.

Mortgage and appraisal contingencies are another reason a buyer can terminate and get their deposit back.

A Deposit on a Lehigh Valley Home becomes totally at risk when a buyer decides NOT to purchase a home with no contractual reason. "I changed my mind"

Since the Deposit is held in Escrow it requires the signature of the home buyer and seller to release it and to whom it goes. In certain cases, it may have to be left up to a judge to decide who deserves the money.

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

What is Leasehold Ownership on a Lehigh Valley Home?

A common question I get asked about a Lehigh Valley Home is what is Leasehold Ownership. 

Leasehold Ownership is typically associated with a mobile home but there are some 55+ Communities in the valley that are stick built homes, on a concrete slab but are Leasehold Ownership.

There are multiple types of ownership with Lehigh Valley Homes.

Fee Simple - the owner owns the home and the land, they are responsible for everything including home maintenance and land maintenance

Fee Simple with HOA - the owner owns the home and the land but there is a Home Owners Association. The HOA may or may not do grass or snow but typically the home owner is responsible for any maintenance/repairs to the home itself. There may be limitations on the land. i.e you cannot put up a fence

Condo - Typically, this means the home owner is responsible for the "sheet-rock" in. The HOA is responsible for all exterior maintenance and the "condo association" owns the land. Fences, gardens...etc are usually not allowed.

Leasehold - the home owner does not own the land. It is leased and a monthly fee is charged to "rent" the land that your home sits on. Leasehold is the type of property with the most variety on what is included or what can or cannot be done on "your" land in each community.

Some common questions with a Leasehold Home in Lehigh Valley:

How much is the monthly rent for the lot?

What does the monthly rent include (water, sewer, garbage, grass, snow, clubhouse or just the land)?

Do I still have to pay yearly real estate taxes? Usually this is a definite YES.

How long is the land lease for each home? Some renew yearly.

Is the HOA leasing the land (Is there a Master Lease)? Whom actually owns it? Am I guaranteed in 10 years that I will still have a home on the lot and will be living there?

Leasehold Ownership on a Lehigh Valley home has many factors that may or may not be the same among communities.

Since the land is not owned on a Leasehold Property, a typical home mortgage cannot be used for the purchase. Your pre-approval with Wells Fargo won't allow you to buy one. Mobile Home Financing, Cash, or private funding with a local bank or credit union are probably the only available purchase/mortgage options. 

Need more assistance? Call Joe at 484-241-1641.

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

Buying a Lehigh Valley Home with a Veteran or VA Loan for the Mortgage

Buying a Home in the Lehigh Valley using a VA or Veterans Loan for the Mortgage is a fantastic way to purchase your home.

When it comes to Purchasing a Home, Lehigh Valley Veterans may not even realize the benefit they receive by having served our country. I purchased my first and then my second home using a VA mortgage. When I purchased my first home I didn't have a pot to you know what in. What a great loan for eligible vets!

This past week, I closed on a home with a 4 year vet. When we made the offer on the home we put down a $500.00 deposit. At the closing, he needed to bring a check for $267.00. He purchased his first home for only $776.00 out of pocket plus the $375.00 fee for his home inspection.

Multiple fees that may have been required by a home buyer using a different loan type were waived as a result of his service.

A VA Loan DOES require the veteran to purchase a home in better move-in ready shape.

A VA Loan won't work for the home that needs a lot of work and a seller that isn't willing to do any repairs. Bank Foreclosures or Short Sales aren't the best home for a vet to attempt to purchase (since they are sold as-is).

When the Lehigh Valley appraiser on a VA loan goes out to the home they may require repairs to ensure the home is livable and safe to occupy. A VA mortgage DOES NEED a seller that will cooperate if any repairs need to be done to "get the mortgage".

The VA Home Buyer IS NOT allowed to agree to do any "required mortgage repairs" after the purchase. They have to be done beforehand in order to get the mortgage to purchase.

Having said that, a Lehigh Valley VA Mortgage is a great mortgage for an eligible veteran.

Contact me to get the process started.

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

Home Buyers are Looking for Lehigh Valley Homes For Sale

What a difference over the past few years of the number of Homes for Sale in the Lehigh Valley.

A few years ago, I remember publishing stats stating that there were 4,000 to 6,000 homes for sale in the valley. Some homes were sitting on the market for over a year sometimes two. Lehigh Valley Foreclosures and short sales were common and it seemed like at least 2 out of every 5 homes for sale fell into this category.

For the past year (maybe past two years), Home Buyers in the Lehigh Valley have been getting discouraged. They are searching the listings daily. A new home comes on the market and all of sudden there are multiple offers and they haven't even seen the home yet. "What, if we like the house we have to make an offer NOW"!!!

The supply and demand curve is kicking in and it is causing home prices to go up. Frustrated buyers that have access to cash are also driving the prices up. We want this house!! We'll pay you over listing price and waive the inspections.

This has definitely made it difficult for a home buyer that needs some assistance with closing costs or has to sell their current home. Hang in there! Things will eventually work out.

Here is the current inventory in the Lehigh Valley as of March 9, 2019 (Northampton and Lehigh Counties).

Residential Homes Currently For Sale: 1,535

Out of the above

Detached homes for sale: 1,070

Foreclosure/bank owned for sale: 49

Short Sales for sale: 18

There are currently 219 properties listed for sale as investment properties. The deals that investors have been looking for over the past few years are getting very hard to find.

Currently, there are 307 rentals available in the Lehigh Valley.

It is very important for a property buyer to get actively involved with a real estate agent and that they work together to find the "right" property.

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