Lehigh Valley Real Estate Blog, Home Buying & Selling Information

What Renovations or Upgrades Add Value to Selling a Home in Lehigh Valley

When Selling a Home in the Lehigh Valley what Renovations or Upgrades Add Value?

There are two ways to look at this. What repairs or upgrades need to be done and will help complete the sale and what repairs or upgrades Add Value and marketability to the home.

For instance, replacing the roof on your Lehigh Valley Home may cost $9,000 but that doesn't mean the house is worth $9,000 more.

A home is expected to have a roof.

A new roof is great for marketing but a Lehigh Valley Home Seller may not recoup the value by upping the purchase price by the complete price of the roof.

Can a house be worth a more because of a new roof?

From a marketing point of view "Definitely!"  From a price point of view "Not Really".

Value is in the eye of the beholder. The new kitchen with granite counter tops might be worth more to the home buyer than a new roof or furnace.

The finished basement adds value. The new deck adds value.

Paint and carpet Always help a home sale and definitely adds value. A buyer loves walking into a freshly painted home with new carpet or flooring. This is probably the cheapest thing a home owner can do to add value.

Personally, I'd prefer a Lehigh Valley Home with the major systems replaced (roof, furnace, electrical...etc) but a brand new kitchen or deck is definitely appealing.

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

The Low Inventory of Lehigh Valley Homes for Sale can Cause a Buyer Problems

The Low Inventory of Homes for Sale in the Lehigh Valley is causing some Buyers to Move Fast. The Buyer realizes that due to the low inventory, when a "nice" home comes on the market it may go under agreement fast.

As a result, a newly available home may receive a lot of showings in the first few days and receive an offer that the seller accepts without other home buyers even getting to see it.

A buyer that wants to negotiate over what they may see as a problem with the home and/or ask for help with closing costs may be beat out by a buyer that doesn't care about that aspect of the home and/or need closing assistance.

Lehigh Valley Home Buyer Problems with Low Inventory

Buyers have to see a home ASAP - Finding out your "dream home" went under agreement yesterday is depressing.

Buyers Lose Negotiation Power if Multiple offers or Lots of Activity - Seller may feel they can hold out for a better price or terms.

Buyer may give the best offer possible and still lose the home - One buyer may be limited on price or contract terms such as the inspections/mortgage type, termite inspection...etc while another buyer may have a lot of flexibility.

A seller who had multiple offers or lots of showings may not be willing to negotiate repairs found during the inspections - The seller has been known to say: If we say no, do you think any of those other buyers are still interested. We took a lower offer! We gave them help with closing costs! They want what done??

Possible Solutions for a Home Buyer

Some of the above can be fixed by not waiting and viewing the home asap. 

A buyer can get on a system that gives immediate notifications when a home becomes available. If 4:00 in the afternoon you get notified. If 2:00 in the morning you get notified.

The agreement of sale contains many items as "terms" of the sale. The contract can be written to try to contain some positives in order to help offset any negatives.

For example, The buyer wants $10,000 off the house but is willing to wait four months to close; The offer is full price but the buyer wants to close in 30 days. Two different offers that are total opposites with only two of the terms (price vs closing date). 

The price is the most important item but there are other terms that can help get an offer accepted. Purchase price, deposit, closing date, sellers assist, included items (washer,dryer,frig) and inspections are all part of the offer. A buyer can possibly tweak some of the items in order to offset a negative with another one.

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

Lehigh Valley Wood Destroying Insect or Termite Inspection on Home Purchase

When a home is purchased in the Lehigh Valley, a common contingency on the agreement of sale is a Wood Destroying Insect (WDI) Inspection which is also called a Termite Inspection.

Although generically called a Termite Inspection, the inspection should check for any wood destroying insects such as termites, carpenter ants, carpenter bees and powder post beetles.

The results of the inspection can yield different results:

• No evidence of Wood Destroying Insects
• Active Wood Destroying Insects were found
• Active Wood Destroying Insects were found plus damage was observed
• No Active Wood Destroying Insects were found but damage was found from a prior problem

The first option is ideal for both the home buyer and seller plus the mortgage company. No Wood Destroying Insects were found.

The other 3 situations can cause a problem.

I don't know of any Lehigh Valley Home Buyer that wouldn't expect or ask the seller to treat the home if evidence of Active Wood Destroying Insects is discovered.

If damage is discovered and notated this can cause a major problem with getting a mortgage. How much damage was done? Is there a structural problem with the house?

Certain types of Mortgages (FHA, VA, USDA) may require a copy of the Termite Inspection. The mortgage company may require proof that the Active WDI has been addressed and if there is any damage they may also require a Cert from a Structural Engineer stating there is no structural damage to the house.

A Lehigh Valley Home Buyer or Seller may get backed into a corner to prove the problem has been addressed and there is no major damage or provide proof the seller is going to do any required repairs before the closing.

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