Lehigh Valley Real Estate Blog, Home Buying & Selling Information

Does It Really Matter if We’ve Hit Bottom in the Lehigh Valley Real Estate Market?

Whether Lehigh Valley Real Estate has hit bottom yet or not, there is no mistake that it is a Home Buyer's Market.

The biggest question hovering around these days is, have we hit bottom?  Whether this question be a general question regarding the recession or the real estate market, we have to ask does it matter? 

Whether we hit bottom in the Lehigh Valley a couple of months ago or are going to hit it a couple of months from now, we can all agree that we have had better times and better times are in our future.  Whether we have hit bottom or not there is no mistake that it is a buyer’s market when it comes to Buying Lehigh Valley Real Estate.

That being said, if we haven’t hit bottom then the bottom must be close.  Wouldn’t it be better to buy near the bottom than miss it entirely?  Across the Country, there are markets that are on their way down, markets that have stabilized and markets that are on their way back up. 

Whether the market hit bottom a couple of months ago, is at the bottom now, or will hit the bottom in a couple of months, the top of the market is far away.

It is a Lehigh Valley Home Buyer’s market out there.  Whether you are looking for a primary residence or a second home it is a great time to invest in real estate.  Property values are lower than they have been in years, interest rates are still hovering at 30 year lows and some tax incentives make buying real estate today more affordable than it has been in years. 

For all we know, the real estate market might be more affordable today than it will be for many years to come.

VA Home Loans for Lehigh Valley Home Buyers

The following is a guest post by Robert from www.VAMortgageCenter.com:

VA Home Loans continue to gain popularity in the Lehigh Valley and across Pennsylvania, as veterans who encounter tighter credit standards increasingly turn to the Veterans Administration for help in buying a home.

The VA currently guarantees more than 3,400 home loans in Pennsylvania, worth a total value of more than $630 million. Those numbers are set to be even bigger come 2010 – the Department of Veterans Affairs guaranteed more than $68 billion in single-family homes in the last 12 months, an 80-percent increase from last year.

VA home loans have proved a lifeline for veterans looking to purchase a home. About 80 percent of VA loan holders could not have qualified for a conventional home loan. Today, VA loans are more important than ever after the housing and credit collapses.

Lenders have tightened their credit standards, making loans difficult to obtain for some Pennsylvania veterans. But VA loans don’t have credit or income restrictions. On top of that, qualified borrowers can purchase a home worth up to $417,000 with no money down.

Other prime VA Home Loan Benefits include:

• No private monthly mortgage insurance
  
• A negotiable interest rate
  
• Borrowers can finance the VA funding fee
  
• Borrowers can have the seller pay up to 6 percent of closing costs and concessions
  
• The ability to prepay without financial penalty

Military Veterans in the Lehigh Valley can also utilize the government’s $8,000 tax credit for First-Time Home Buyers with their VA loan. The tax credit, which expires at the end of November, has its own program requirements.

In terms of VA’s requirements, applicants must first meet the initial eligibility standards. To do that, veterans must Obtain a Certificate of Eligibility (COE) from the Department of Veterans Affairs. This document verifies a veteran’s military service and VA entitlement.

Those who may qualify for a VA loan are typically from three categories:

• Military members who’ve served 181 days on active duty or three months during war time may be eligible.
• People who have spent at least a half-dozen years in the National Guard or Reserves
• Spouses of those killed in the line of duty

Not everyone who gets a COE may qualify for a loan. While the VA doesn’t have income or credit restrictions, the lenders who issue VA loans likely will. Remember, the VA guarantees loans – it does not issue them. At present, veterans will need a credit score around 620 to qualify.

The current VA loan limit for borrowers in Pennsylvania is $417,000. But the VA also provides competitive rates on jumbo loans.

Visit www.lehighvalleyhomesonline.com for more information.

Lehigh Valley Short Sale

Considering selling your Lehigh Valley Home in a Short Sale?

Unfortunately, although not as bad as some other areas of the country, the Lehigh Valley has been hit by some home sellers that need to sell their house for less than they owe on it. A Short Sale means that the home seller is "shorting" the bank and paying off the mortgage for less than what is owed on the home.

In order for this type of "Short Sale" to succeed, the bank must approve the sale and agree to the accepted payoff of the mortgage. 

A lot of Lehigh Valley Short Sales fall apart because the bank never responds to the offer on the home.
 
The home buyer gets impatient and finally gives up and goes after another house. The wasted time has put the Home Seller Closer to Foreclosure. There may not be enough time to find another buyer and start the process over.

Long & Foster has partnered with Platinum Group Services in order to facilitate the Short Sale Process. The Platinum Group will take over all communications with the bank and make sure all required paperwork from the seller and buyer is submitted. 

Contact Me for more information.
 

The Rent to Own Scenario in Lehigh Valley

The rent-to-own scenario can work out for both the Lehigh Valley Home Buyer and the Seller

The real estate market has led to some creative financing techniques, one of which is a rent to own scenario.  While rent-to-own has been around for a long time, today it is helping many nervous Lehigh Valley Home Sellers get a deal done.  In essence the rent-to-own scenario is seller financing.  It is important to work the specifics out in a rent-to-own situation.  Items that need to be addressed are:

§ The percentage of the rent that goes toward the down payment

§ Which party pays for major repairs to the home

§ Which party takes care of the basic upkeep of the property

§ What happens to the down payment money if the buyer changes his mind

A typical rent-to-own scenario takes a percentage of each months rent to put toward a down payment on the home.  As soon as the down payment money is collected and reached its goal then the potential buyer can qualify for a mortgage.  The seller has to cover his bases so that he is not out if the buyer changes his mind while at the same time a buyer has to look out for his best interest as well.  If planned accurately and followed through diligently the rent-to-own scenario can work out well for everyone in the valley.

Lehigh Valley Halloween Attractions

The Lehigh Valley has many Halloween Attractions to keep your weekends busy and scary.

The Waldorf Hotel in Palmerton, the Haunted Parkway by the Whitehall Fire Department, the Haunted Mill in Tatamy and the Hotel of Horror in Saylorsburg are a few of the Lehigh Valley attractions available this year.

If you have younger children a fun day is spent at Seiple Farms taking a hayride to the pumpkin patch to pick your own pumpkins. You can also enjoy the corn maze or ride some amusement park rides.

A list of Lehigh Valley Halloween Attractions is available at:

http://www.lehighvalleyhomesonline.com/Halloween_Attractions/page_2285704.html

Staging a Lehigh Valley Home For Selling Success

 
Staging a Lehigh Valley Home prepares it for the potential buyer's eye

There is no doubt that Selling Real Estate in the Allentown, Bethlehem, and Easton area is a tough and competitive market today.  The key to successfully selling your home is to make it stand apart from the rest.  Many real estate companies have turned to staging companies to put the best foot forward for a home that is for sale.  Empty homes are often completely furnished by staging companies to allow the potential buyer to see what can be done with the house.  Staging is, in essence, getting a house decorated/designed by a professional.  If you or your Realtor are not going to spend the money on staging, here are a few tips for getting your home ready to sell, staging it yourself:

§ Remove clutter.  Clear off counters, clean out cabinets and closets.  To much stuff lying around gives rooms, closets and cabinets a smaller feel.  You want the potential buyer to see space and room.

§ Get rid of personal items and leave neutral feel.  Photos, school items, political and religious material should all be removed.  The buyer needs to see himself living in the house, not you living in the house.

§ Pay attention to the outside of your house and how it presents itself.  A little landscaping can go a long way.  There will never be a second chance to make a first impression.

§ Clean, clean, clean.  Clean your floors.  If you have carpet get it cleaned professionally.  Make sure your walls are clean and your appliances smudge-free.

§ Move furniture around to make your rooms seem more spacious.  Also use furniture to define spaces.  Make your home as inviting and roomy as it can be.

§ Have a home inspection done.  By having your home inspected before selling it you can fix many of the issues that may arise and make a deal more complicated.

Remember, when you are Selling Your Lehigh Valley Home you want it to appeal to the potential buyer.  If you can get them to fall in love with your house then you will likely get the money you are asking for it.  Keep your home clean, your furniture well-placed and everything clutter-free until you sell your home.

Things to Know Before You Buy Your First Lehigh Valley Home

Take your time and know what you are doing before buying your first home in the Lehigh Valley

It is a great time to buy a first home.  Not only are home values down and mortgage rates at historic lows but the First Time Home Buyer Tax Credit will give you 10% of your home’s value (up to $8,000) at closing.  These three items can add up to significant savings for the first time home buyer, making it an ideal time to start looking at Lehigh Valley Real Estate.  However, there are important things to keep in mind before buying your first home to make sure this important decision is the right one for you and your wallet.

• Get Information.  Most communities offer free seminars for first time home buyers.  There are also non-profits that offer helpful advice and information.  Visit www.HUD.gov for helpful tips and a list of agencies near you that have free information available.
• Know What You Can Afford.  Analyze your monthly budget.  A good rule of thumb is that your mortgage should be 28% of your expenses or less to be successful financially.  Remember to factor in home owners insurance and property taxes into this scenario.
• Talk to a Lender. Start talking with a bank or mortgage lender and get the ball rolling.  The process of being approved by a lender is a longer process these days and you want to make sure that you get approved before the First Time Home Buyer Tax Credit expires on November 30.
• Find a Real Estate Professional.  Finding the right real estate agent to work with can make your deal run that much more smoothly.  A good real estate agent will help find you a home that works for you, not against you.  A good real estate professional can also help you find a good lender if you have had a hard time during that step.
• Know What You Are Committing to. During a real estate transaction you are signing a lot of papers.  Know what you are signing.  If your real estate agent is having a hard time explaining things to you you might want to take the extra step and get a real estate lawyer to review your documents.

When it comes to buying your first home you want to make sure your are buying something you can afford, something located in a neighborhood you want to live in and, most of all, a place that you want to call home.  Take all of the information and advice you can get, filter and decipher it and make the best decision for you.