Lehigh Valley Real Estate Blog, Home Buying & Selling Information

Lehigh Valley Home Buyer Needs Sellers Assist in this Low Inventory Market

There is no doubt that a Lehigh Valley Home Buyer that Needs Sellers Assist to help with closing costs can be a problem in this Low Inventory Real Estate Market.

Sellers Assist, sometimes called Sellers concession, comes off the top of an offer on the home.

For instance, a home is listed at $200,000. The Lehigh Valley Home Buyer offers the seller $200,000 but asks for 5% to assist in closing cost ($10,000). That means the offer to the seller is actually $190,000 ($200,000 that the buyer offered minus the 5%).

With the low inventory of Lehigh Valley Homes why should a home seller, whose house has only been listed a couple of days, accept such an offer?

There is no sugar coating it. Buying a home gets more difficult if the buyer doesn't have any other options and needs help with the closing costs.

In the above situation, a home buyer can say "$205,000 with $10,000 sellers assist". Now, the seller would get $195,000 and closer to their asking price of $200,000. The seller would be accepting $5,000 less but NOW the house has to appraise for higher than the listing price of $200,000. It must appraise for $205,000. 

If the Lehigh Valley Home Seller already believes they are the top of what the home can be listed for, even though the buyer may be willing to pay more, the seller may not be willing to take the risk that their home will appraise at the higher value.

They may have another offer at the list price with possibly 3% sellers assist ($200,000 - 3% ($6,000) or $194,000 to the seller.

The $205,000 offer will net the home seller $1,000 more but has a much higher risk than the offer at $200,000. A mortgage can only be obtained for the appraised value unless the buyer is willing to put in cash to make up the difference....or the seller takes a lower price.

The Lehigh Valley Appraiser uses Sold Properties to determine value. Are there similar sold properties at the higher price of $205,000 to justify a higher value when the home gets appraised. 

If not, the seller may not be willing to take the risk!

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

Pennsylvania Property Disclosure When Selling a Lehigh Valley Home

One of the important documents when Buying a Lehigh Valley Home is the Pennsylvania Property Disclosure.

There are different versions of the PA Property Disclosure floating around but typically this is a 10 page document filled out by the Lehigh Valley Home Seller. It is intended to disclose information about the home that the seller is aware of. 

Some common questions asked on the disclosure:

How old is the roof?
Has it ever leaked?
Did pets ever live at the property?
Are there any easements?

The Property Disclosure is a legal document and can be used in a court of law to sue for "Failure to Disclose". The home seller was aware of a problem and did not disclose it.

For example, the property disclosure states the basement never had water and the first week the buyers live in the home they get water in the basement. Did the seller know about this problem and not disclose it?

Some of the questions on the property disclosure may affect what a buyer is willing to pay for the property. No one wants to admit a negative problem but a full disclosure is always in everyone's best interest.

Having said that, there are occurrences when there is no Property Disclosure (foreclosure/bank owned, estate properties...etc).

If a Lehigh Valley Home Buyer is interested in a home they should ask the agent if a copy of the PA Property Disclosure is Available.

More Information about Lehigh Valley Real Estate is available at www.lehighvalleyhomesonline.com