As a Lehigh Valley Home Buyer, you should be aware of the different type of Home Sales on the market. It is possible that any home you look at will fall into one of these categories.
Typical Resale: The Lehigh Valley Home Seller has equity on their home and is selling it. They have wiggle room on the price and the ability to possibly address any repairs found during the inspection.
Typical Resale No Equity: The Home Owner is financially stable but is not making any money on the home. They are less willing to negotiate the price and or fix anything wrong with the property.
Resale – Short Sale: The Home Owner owes more on the home then they can sell it for. The home is being sold as-is (no repairs). The price is negotiable but has to be approved by the owners bank because they are being “shorted” the money they are owed.
Foreclosure -Bank Owned Property: The Home Owner is no longer the owner and the home is being sold by the bank or mortgage company (typically Fannie Mae or Freddie Mac). The property is sold as-is (no repairs). The price is negotiable but although many buyers believe the bank will take “anything” for the property they Won’t. They will counter or reject low offers.
HUD Property: Similar to Bank Owned but actually owned by the Department of HUD. These homes require a HUD registered agent/broker to make the offer. They are sold as-is (no repairs) with the exception of Lead Paint. They give up to a $4,000 credit to remediate any lead paint in the home.
Hubzu/Auction Properties: All of the auction properties vary with terms and conditions. Some list the home, allow showings, and then allow you to place an offer. Others have an open house at some day/time to allow anyone to see the property. Some accept financing while others are cash only. An Auction property requires Due Diligence to make sure the exact terms and conditions are known.
New Construction: Does the home need to be built? Is it a spec home? Can the home buyer still negotiate price and upgrades? Every builder/development is different and the Home Buyer can definitely have an agent working for them throughout the process. The sales price typically includes a commission for an agent working for the buyer.
Some of the Foreclosure and HUD properties list the property with a First Look Initiative. For a certain number of days, when the home is first put up for sale, only Lehigh Valley Owner Occupied Buyers can make an offer. No Investors Allowed. Offers may be scrutinized to ensure Owner Occupant.
For all of your Lehigh Valley Real Estate Information, visit www.lehighvalleyhomesonline.com.
