Greater Lehigh Valley Real Estate BlogRecently posted or modified blog postshttps://www.homewayre.com/blog/Copyright HomewayRE.com2022-12-16T11:54:58-07:00tag:homewayre.com,2012-09-20:11233FHA loans for First-Time Home Buyers<img src="https://assets.site-static.com/userfiles/2131/image/00000.jpg" width="1920" height="1080" />
Are you a first-time home buyer? If so, you may be wondering if an FHA loan is the right option for you. An FHA loan is a mortgage insured by the Federal Housing Administration, which means that it offers some advantages over other types of mortgages. This blog post will discuss the benefits of an FHA loan and provide information on how to apply for one. Let's get started!
FHA Loans
If you're a first-time home buyer, an FHA loan could be a great option for you
Are you a first-time home buyer who needs to learn their way around the process? Thinking of taking out an FHA loan, but need help understanding what it's all about? No need to worry - FHA loans are great options if you're a first-time home buyer looking for a safe, financial move. With low down payments and competitive rates, FHA loans are easier to qualify for than traditional mortgages, enabling more people to purchase their perfect pad. Get your dream home off the market today with an FHA loan!
Insured by the Federal Housing Administration
FHA loans are insured by the Federal Housing Administration, and this type of mortgage has numerous advantages. For starters, down payments are lower than conventional loans, and certain credit requirements are more lenient. Additionally, mortgage premiums can be 100% rolled into the loan amount and extra discounts exist for service members and first-time buyers. Moving into a home of your own has never been so affordable.
Limited down payment funds
For the creative budgeter, this type of loan can be a godsend. It offers a lower down payment which is great for those buyers that don’t have much saved for a down payment. It's an innovative way to reach your financial goals without breaking the bank. And remember, even if you don't have limited funds for a downpayment, this loan is still worth considering.
Credit Score Qualifications
If you've been out of the credit loop for a while, an FHA loan makes it easier to hop back in! FHA loans were designed with the first-time home buyer in mind. And because of this, lenders tend to lower their credit score requirements with some going as low as 580. This means that if you have less-than-ideal credit, there's an easier way to acquire the home of your dreams. So despite your past financial travails, those with lower credit scores need not despair; there’s still a great option for them in the form of an FHA loan.
FHA Loan Requirements
In addition to the general requirements that go along with any loan, FHA loans also have specific eligibility criteria. You'll need to ensure you meet all of them to qualify for your home loan. Generally speaking, lenders will look at your credit score and history, as well as your income and monthly debt expense (debt-to-income ratio). They'll also consider the type of house you're buying, whether it's a primary residence or an investment property. Finally, you'll have to ensure that the home meets specific requirements such as size and condition to qualify for the loan.
FHA Loan Down Payments
You can get an FHA loan with as little as 3.5% down. This makes it much easier to save up enough money for a down payment and still have funds left over for other essentials like closing costs.
FHA Mortgage Insurance
In addition to the down payment, you'll also need to cover FHA mortgage insurance premiums. This fee must be paid for all FHA loans (30-year loans). Your premium will depend on how much money you borrowed and how long your loan term is.
It's also important to remember that FHA loans come with certain restrictions and limitations, so it's important to read through the terms and conditions carefully before signing on the dotted line.
FHA Loan Limits
FHA loan limits are based on median home prices in an area and vary from county to county. Depending on where you live, the FHA loan limit can range anywhere from $314,827 to $765,600 for a single-family home. It’s important to remember that these limits may be higher in some areas due to the high cost of living.
FHA Loan Closing Costs
It's also important to remember that you'll be responsible for closing costs associated with your FHA loan, including third-party fees and taxes. These costs can add up quickly, so it's a good idea to set aside extra money when budgeting for your loan.
FHA Interest Rates
FHA loans typically offer lower interest rates than conventional mortgages. This means that your monthly payments will be lower, saving you more money in the long run. It's also important to note that FHA loans are subject to credit approval, so it pays to shop around for a good deal.
Types Of FHA Home Loans
In addition to offering a traditional 30-year fixed-rate mortgage, other types of FHA loans are also available. These include adjustable-rate mortgages, reverse mortgages, and energy-efficient mortgages.
Adjustable-rate mortgages- An adjustable-rate mortgage (ARM) is a loan with an interest rate that changes over time. This can benefit borrowers who anticipate their income increase in the future, as it allows them to take advantage of lower rates when they initially sign the loan.
Reverse mortgages- A reverse mortgage is a home loan option designed specifically for seniors looking to supplement their retirement income. These loans allow seniors to access a portion of their home equity without making monthly payments.
Energy efficient mortgages- An Energy Efficient Mortgage (EEM) is an FHA loan that allows borrowers to finance energy-efficient improvements in purchasing their home. The loan covers the cost of the energy-efficient improvements up to a certain percentage of the home's value.
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FHA loans have helped countless first-time home buyers realize their dreams of homeownership, and they can be an invaluable tool in helping you do the same.
An FHA loan can be a great way for first-time home buyers to enter the market and start building equity in their homes. Remember that it's important to research, understand all the requirements, and have your finances in order before applying for any loan. Contact <a href="https://www.homewayre.com/buyers/">Homeway Real Estate</a> for more information on your loan options as a first-time homebuyer.2022-12-16T11:48:02-07:002022-12-16T11:54:58-07:00Alex Lopeztag:homewayre.com,2012-09-20:11152USDA Home Loan Income Limits
Are you thinking about buying a home with a USDA loan? If so, you'll want to familiarize yourself with these loans' income limits. In this blog post, we'll provide an overview of the USDA income limits and explain how they work. We'll also discuss some of the exceptions to these limits so that you can determine if you are eligible for a USDA home loan. So, let's dive right in!
What are the USDA-guaranteed loans?
USDA-guaranteed loans are a type of home loan that helps people with low-to-moderate incomes purchase or build a home in rural and suburban areas. These loans offer attractive interest rates, no down payment requirements, no private mortgage insurance (PMI), and the option for fixed or adjustable interest rate terms.
The USDA has set income limits based on the median household income for each county in the United States. The USDA loan program is designed to assist low and moderate-income households in purchasing a home with little or no down payment.
USDA Eligibility Requirements
Basic USDA loan requirements include:
Clean credit: No recent bankruptcy or foreclosure, or late payments
Low-income and rural area
Be a U.S. citizen, have a valid Social Security number, and be 18 years or older
Have a credit score of 620 or higher
Requirements for funds: Limits on household income vary by region; typically $91,900 for a household with 1-4 members
Employment: Borrowers must have a steady employment history and gross monthly income. Work from home is allowed.
Necessities of the location: You must own a home in a rural area that is eligible for the program. You must have a single-family home as your primary residence.
Type of loan: A 30-year fixed-rate mortgage is the only option.
Income Limits for USDA Home Loans
The USDA home loan income limits are based on the household size and the median income of the area you are looking to purchase a home. Generally speaking, your total annual household income must be at most 115 percent of your region's median. This means that if you have a larger family, the income limits increase. For example, the maximum loan limit for a family of four is usually slightly higher than the limit for a single person or couple buying a home.
In addition to meeting the income limits, you must also have a good credit score and demonstrate that you have sufficient funds available for a down payment. You must also meet specific requirements related to your employment history, debt-to-income ratio, and other factors.
Want to know how USDA Income Limits Work?
USDA loan income limits serve as a threshold for eligibility. You are eligible to apply for the USDA zero-down loan program if your household's total income is less than the limit set by the USDA.
The USDA sets new limits every year in the spring, usually in May or June. These limits can't exceed 15% of the area's median household income.
As of 2022, the following are the standard income limits for the Single-Family Housing Guaranteed Loan Program:
1-4 member households increased to $103,500
5-8 member household increased to $136,600*
In regions with higher living costs, income limits are higher.
Are there Exceptions to USDA Income Limits?
Yes, There are! There are exceptions to the USDA income limits that may allow for higher income levels. For example, if your household's income is slightly over the limit, you may still be eligible for a USDA loan. Additionally, some state and local government grants can assist borrowers who have incomes exceeding the limit.
Also, you may qualify for additional benefits and exceptions if you are a veteran or active military personnel. An experienced USDA loan specialist can help you understand the eligibility requirements for these exceptions so that you can determine if you are eligible for a USDA home loan.
Know the maximum loan amounts that USDA lenders set
Regardless of whether applicants are obligated on the loan, the USDA evaluates them based on each adult household member's income. To get a sense of where you stand, add each adult's annual income to get your household's total annual income.
Use the following formula to determine your annual income if you are paid by the hour:
(Hourly Rate x Number of Hours Per Week) x 52 = Total Annual Income
USDA lenders use these income calculations to determine your ability to repay the loan
1. Repayment income (adjusted annual total from supporting documentation)
2. Total annual household income (from all adult household income earners)
3. Projected annual income for the following year (from supporting income documentation and third-party employer verification)
The following documentation is used to calculate and verify each income:
Paystubs
W-2s
Outsider business confirmation
USDA lenders look at these additional financial factors to determine your ability to repay after verifying your income:
Assets and savings
Asset-to-income ratio
Previous rental or mortgage payment history
Credit score
The buyer's ability to repay the loan amount helps USDA lenders determine the buyer's affordability. Simply put, your lender determines your maximum USDA loan amount. However, not all types of income are eligible.
The most typical types of income that do not qualify for USDA benefits are as follows:
Earned income from a full-time adult student earning more than $480
Earned income from a minor
Earned income tax credit Lump-sum allowances from inheritances, capital gains, or life insurance policies
Housing assistance payments, also known as the Section 8 Homeownership Program, Earned income from caregivers, such as live-in nurses
This list is not exhaustive, and only some applicants' circumstances will conform precisely to these fundamental guidelines. In those instances, lenders might ask for a thorough analysis of the applicant's income in relation to other important factors for qualifying.
Check your USDA eligibility today to determine if you qualify for a USDA loan. With experienced specialists and flexible terms, it's never been easier to make your dream of homeownership come true. So get started today!
2022-12-09T14:57:48-07:002022-12-09T15:03:09-07:00Alex Lopeztag:homewayre.com,2012-09-20:11083A Beginner's Guide to Buying a House<img src="https://assets.site-static.com/userfiles/2131/image/aaa111.jpg" width="1920" height="1080" alt="Homebuying Guide" />
Are you thinking of buying a house for the first time? If so, you're in for a great experience! Buying a home can be one of the best decisions you'll ever make, but it can also be incredibly daunting. It's important to know what to expect before you get started. In this blog post, we will walk you through the steps of buying a house for the first time. By following these tips, you'll be able to purchase your dream home without any stress or headaches!
Steps to buying a house for the first time
Step 1: Budget and Down Payment Plan
The first step to buying a house is creating a budget and coming up with a down payment plan. Budget is the key when it comes to purchasing a home. You'll need to have a clear understanding of how much you can afford to spend on a house before beginning your search. It's also important to know how much money you'll need for a down payment. Typically, most lenders will require a down payment of at least 3-5% of the purchase price or save money that is enough for a down payment, which is typically 20% of the home's purchase price. Depending on your budget, you may need to save for several years in order to come up with the necessary funds. Once you have a down payment saved up, It's important to keep in mind that you'll also need to pay for closing costs, which are typically 2-5% of the home's purchase price.
Step 2: Look for your ideal real estate agent among the sea of real estate agents
Now that you are all set with the budget, down payment plan, credit score, and pre-approved mortgage. As a home buyer, you need a real estate agent who you trust, who will help you find a new home and will help you go through the home-buying process.
The real estate agent will guide you through the negotiation processes of the property that they are selling. A good agent will be familiar with the area where you want to buy a house, your dream house, and they will be able to help you find homes that fit your budget and needs.
Step 3: Credit Score and Mortgage Pre-Approval
The next step is to check your credit score and get pre-approved for a mortgage. A credit score shows how likely you are to pay your loan payments and credit reports, and also it shows your credit behavior. If you have applied for a home loan, the lender will base it on your info and your credit score to decide whether they can loan you the money or not. A good credit score will give you a better chance of qualifying for a low-interest rate on your mortgage. So this is why it's necessary to know your credit score and maintain a good credit score.
To get pre-approved for a mortgage, you'll need to provide the lender with your financial information, including your income, debts, assets, and bank statements. Getting pre-approved for a mortgage, the mortgage lenders will go through all your financial background then from there, they will decide if you deserve to get a loan. Once you're pre-approved for a mortgage, you'll receive a letter from the lender detailing the terms of the loan, including the interest rate, monthly payments, and loan amount.
Step 4: House Shopping
After finding a real estate agent, it is time to start looking for homes! This is usually the most fun part of the process, but it's important to keep your budget and needs in mind. You'll want to consider things like the location, size, and price of the home.
Once you've found a few properties that you're interested in, it's time to start touring them! Your real estate agent will help you schedule showings. This will give you a chance to see the homes in person and get a feel for them. The scheduled showings can also help you see your favorite parts of the house in person. After the scheduled showings, list down the houses that you want to consider buying then weigh the pros and cons to come up with your best option house.
Step 5: Make a Purchase Price Offer
<img src="https://mail.google.com/mail/u/1?ui=2&ik=578c17fbdc&attid=0.4&permmsgid=msg-a:r8645303462551469692&th=184cfbc0270b96fd&view=fimg&fur=ip&sz=s0-l75-ft&attbid=ANGjdJ92GZcS0hs-E8kczTDeAeOwC5KuBFW8g-ls2byk0YIltTtvAHEZXTC3y82MzCN2mgs4TzQpXeFGbAQ6nI9K8WVas6swqPNulP4p7XKqAze0jFUyDeYRcdDsH-Y&disp=emb&realattid=ii_lb5mox9h3" alt="image.jpeg" width="476" height="267" data-image-whitelisted="" class="CToWUd a6T" data-bit="iit" tabindex="0" />
If you have already decided on the home that you love, it's time to make an offer! This is where things can start to get tricky. Your real estate agent will help you determine how much to offer based on the current market value of the home.
With the help of your real estate agent, you need to strategize on how much to offer, the contingencies, and how much earnest money you'll deposit, after strategizing you'll make the offer via a letter, email, or in person that your real estate agent worked on. Next, negotiate with the seller, the seller will decide if they will accept it, and make a counteroffer, or reject it. Once your offer is accepted, you'll move on to the next step in the process.
Step 6: Get a Home Inspection
The next step is to get a home inspection. This is an important step because it will help you identify any potential problems with the property before you buy it.
A home inspection provides a thorough assessment of the house's sturdiness, safety, and condition. The inspector will look at things like the roof, foundation, electrical system, and plumbing. After the inspection is complete, you'll receive a report that details any problems that were found. You can use this information to negotiate with the seller to have them fix the problems before you buy the house or to lower the purchase price.
Step 7: Home Appraisal
You'll also need to get a home appraisal. This is an important step because it will help you determine the value of the property. The appraiser will look at things like the size of the house, its location, and recent sales of similar properties in the area. After the appraisal is complete, you'll receive a report that details the appraised value of the property. This information can be also used to negotiate with the seller if the appraised value is lower than the purchase price. A home appraisal is also similar to a home inspection, but it is for the lender due to the reason for them to check out that the house is a good investment.
Step 8: Get Homeowners Insurance
Once your offer is accepted and you're in escrow, you'll need to get home insurance or homeowners insurance. This type of insurance will protect your home in case of fire, theft, or damage. You can get quotes from different insurance companies and compare rates to find the best policy for your needs.
Step 9: Close on the Home
The second to the last step is closing on the home. This is when the sale is finalized and you officially become the new owner of the property! Once you've closed on the home, you'll need to make sure that you keep up with your monthly mortgage payments and property taxes. You'll also want to consider getting home repairs and renovations done so that you can enjoy your new home for years to come.
Step 10: Move In!
The last step is to move in and enjoy your new home! This is an exciting time, but it's also a lot of work. You'll need to pack up all of your belongings, hire a moving company, and change your address. But once you're settled into your new home, you can start making memories that will last a lifetime. Enjoy the benefits of being a new homeowner.
Conclusion
Buying a house is a big decision, but it doesn't have to be a difficult one. By following these steps, you can make the process of buying a home easy and stress-free. With the help of a good real estate agent, you can find the perfect home for you and your family.
If you're looking for a home in the near future, keep these steps in mind so that you can be prepared for what to expect. With a little planning and preparation, you'll be able to find the perfect home for you and your family.2022-12-02T14:42:59-07:002022-12-07T09:08:25-07:00Alex Lopeztag:homewayre.com,2012-09-20:10980Can you trust Zillow home values?<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_36.jpg" width="1920" height="1080" alt="Zillow Home Values" />
The Zestimate is a value that Zillow provides for every home listed on its website. It is supposed to be the home's value estimates. Many people rely on the Zestimate when deciding whether or not to buy a home. However, can you really trust the Zestimate? I'll explain how the Zestimate is calculated and discuss whether or not you can trust it.
What is a Zillow Zestimate?
This is a Zillow-exclusive home valuation tool that can provide an online estimate of the value of the majority of homes in the United States. It uses data from both the public and user submissions, and its accuracy is partly determined by how much relevant data is available to the public. Zillow's estimated market is unable to accurately price some homes because, for instance, the number of bedrooms may be unknown.
The Zestimate is calculated using a computer algorithm. This Zestimate algorithm takes into account many different data points about the home, such as its location, size, and amenities. The algorithm also looks at recent sales of similar homes in the area. Based on all of this data, the Zestimate is supposed to be an estimate of the home's value.
However, the Zestimate is not always accurate. Because it is based on an algorithm, it is subject to error. The data points that the algorithm uses may not be accurate, and the recent sales of similar homes may not be representative of the home's true value. Additionally, the Zestimate does not take into account the specific features of the home that may make it more or less valuable. For example, a home with a view of the ocean would be worth more than a similar home without a view.
There are a few terms that must be understood:
List price/asking price: The homeowner decides this amount with the help of their agent. It might or might not accurately reflect the housing market value.
Home's estimated value: an estimated amount your home would sell for, given what other, comparative properties have as of late sold.
Value in the real world: how much individuals are willing to pay for a house.
Zillow Zestimates tend to be more accurate for homes on market than for homes that are not on the market (like yours, perhaps). This is because homes on the market have more information that is publicly available. This information includes the home's listing price, recent sales of similar homes, and other data points that the algorithm uses.
If you are thinking of buying a home, you should not rely solely on the Zestimate. The Zestimate is a good starting point, but you should also look at other factors, such as the asking price, recent sales of similar homes, and the specific features of the home. You should also take into account your personal preferences. Only you can decide how much you are willing to pay for a home.
How accurate is the Zestimate?
The accuracy of the Zestimate depends on many factors, such as the quality and quantity of data that is available, the type of home, and its location. In general, the Zestimate is more accurate for homes that are on the market than for homes that are not on the market.
The median error rate for all homes is 2.5%. This means that half of all homes have a Zestimate that is within 2.5% of their actual sale price, and half have a Zestimate that is more than 2.5% off.
For homes that are on the market, the median error rate is 1.9%. This means that half of all homes on the market have a Zestimate that is within 1.9% of their actual sale price, and half have a Zestimate that is more than 1.9% off.
The median error rate for homes that are not on the market is 7.4%. This means that half of all homes not on the market have a Zestimate that is within 7.4% of their actual sale price, and half have a Zestimate that is more than 7.4% off.
How can I improve the accuracy of my home's Zestimate?
There are a few things you can do to improve the accuracy of your home's Zestimate:
Make sure that the information that is publicly available about your home is accurate. This includes the home's address, square footage, number of bedrooms and bathrooms, and other data points.
If your home is on the market, make sure to keep the listing price up to date.
Make sure that recent sales of similar homes in your area are included in the Zillow database. You can do this by entering the sale information into Zillow yourself, or by asking your real estate agent to do it.
If you have made any major improvements to your home, be sure to include this information. Major improvements could include a new roof, an addition, or a major renovation.
If you have any other information that you think would be helpful, you can contact Zillow and let them know.
How is the Zestimate calculated?
The Zestimate is calculated using a proprietary algorithm that takes into account many different data points. Some of these data points include the home's address, square footage, number of bedrooms and bathrooms, recent sales of similar homes, and other information that is publicly available. The algorithm also takes into account certain factors that are not publicly available, such as the quality of the data that is available. The Zestimate is not a perfect predictor of a home's sale price, but it is a good starting point.
To calculate a Zestimate (or come up with a Zestimate price), Zillow uses a sophisticated neural network-based model that uses data from tax assessor and county records as well as direct feeds from hundreds of brokerages and multiple listing services. Additionally, the Zestimate includes:
Characteristics of the house, such as its size, location, or several bathrooms.
On-market data, such as the listing price, description, comparable homes in the area, and number of days on market
Off-market data, such as tax assessments, prior sales, and other publicly available records Market trends, such as seasonal shifts in demand
At the moment, Zillow has data for more than 110 million homes in the United States, and they publish Zestimates for 104 million of them.
What sort of factors impact Zestimate accuracy?
There are several factors that can impact the accuracy of a Zestimate, including:
The quality and quantity of data that is available. The more data that is available, the more accurate the Zestimate will be.
The type of home. The Zestimate is more accurate for homes that are on the market than for homes that are not. This is because there is more data available for on-market homes.
The location of the home. The Zestimate is more accurate for homes in urban areas than for homes in rural areas. This is because there is more data available for urban homes.
The age of the home. The Zestimate is more accurate for newer homes than for older homes. This is because there is more data available for newer homes.
Changes in the market. The Zestimate is more accurate for stable markets than for volatile markets. This is because it is easier to predict the sale price of a home in a stable market.
How often is the Zestimate updated?
The Zestimate is updated regularly, typically every few days. But, the frequency of Zillow updates can vary depending on the available amount of data. For example, if there have been recent sales of similar homes in the area, the Zestimate will be updated more frequently.
You can check the date of the last update by going to the Zestimate page for a specific home and looking at the "Last updated" date.
Why the Zestimate can impact your home selling experience?
The Zestimate can impact your home-selling experience in several ways. First, potential buyers may use the Zestimate to determine their initial offer price. Second, if your home is undervalued by the Zestimate, it may take longer to sell. And finally, if your home is overvalued by the Zestimate, you may end up having a selling price that is less than you could have.
Emotions influence how we buy and sell homes, as any experienced real estate professional will tell you. When it comes time to submit a bid, it can be more difficult to make sound financial decisions if you fall in love with a beautiful house that you "have to have. "Similarly, you may struggle to feel confident about the selling process if you believe the Zestimate to be more or less accurate only to have a professional appraisal indicate that your home is worth significantly less.
Confirmation bias also means that people are more likely to believe data that supports their beliefs. The real estate industry is well aware of the fact that people frequently believe their homes are worth more than they are, and confirmation bias is a common problem. Because it matches your perception of your home, even if you are aware that the Zestimate may have overestimated it by thousands of dollars, you may be tempted to treat the Zestimate as "accurate."
In the hopes of getting the Zestimate number, you may even overprice your home and fall into the trap of having fewer interested buyers. This will make your home sit on the market for longer and force you to eventually lower the price.
Should you sell your home to Zillow?
Selling your home to Zillow is not a good idea. While you may be tempted to do so because of the convenience and the seemingly high prices that Zillow offers, you will likely end up selling your home for less than it is worth. There's no fair market value. In addition, selling your home to Zillow means that you will have to move out of your home quickly and may not have time to find a new place to live.
It is better to sell your home through a traditional real estate agent. Real estate agents are experienced in pricing homes correctly and will work with you to get the best price for your home. In addition, real estate agents can help you stage your home and make it look its best for potential buyers.
The Bottom Line
The Zestimate is a helpful tool, but it is not perfect. If you are thinking about selling your home, it is important to get a professional appraisal to determine the correct value of your home. You should also be aware of the potential biases that can impact the Zestimate, such as confirmation bias and the emotional effects of selling a home. Selling your home to Zillow is not a good idea, as you will likely end up selling your home for less than it is worth. It is better to sell your home through a traditional real estate agent.
So, can you trust the Zestimate? It is important to remember that the Zestimate is just an estimate. It is not always accurate, and it does not take into account all of the factors that could affect a home's value. If you are considering buying a home, you should not rely solely on the Zestimate. You should also get a professional appraisal of the home before making an offer.
Homeway is a full-service real estate brokerage in Allentown, PA. Learn more about us <a href="https://www.homewayre.com/about-us/" rel="noopener noreferrer" target="_blank">here.</a>2022-11-21T14:48:43-07:002022-12-07T09:05:31-07:00Alex Lopeztag:homewayre.com,2012-09-20:1059512 Home Renovations That Will Add Value Before You Sell<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_32.jpg" width="1920" height="1080" />
Homeowners always want to know, should I <a href="https://www.homewayre.com/blog/lehigh-valley-pulse-check-is-now-a-good-time-to-buy-or-sell-real-estate/">sell my house as-is</a>? Or should I invest in some home improvement before listing? And then, they want to know if it is a good idea to repair, replace, or remodel parts of the home and which renovations will add the most value.
Today, we’ll share all the expert advice you need about all these listing questions. And while every Lehigh Valley home is different, there are tips and best practices to consider. We’ll explore them all and highlight the most valuable projects you can consider taking on before you put your house on the market.
Small Details with Big Impact
If you’re on a timeline to sell with a marginal budget to make improvements, you can still make your house more marketable. Consider these smaller and often more affordable upgrades to help make your Lehigh Valley listing more appealing to buyers.
Knobs, Handles, and Hardware
Instead of investing in new appliances or remodeling kitchens and bathrooms, consider updating the little things. Introducing new handles, knobs, and hardware can sometimes bring a modern touch to an existing space. And they’re relatively affordable to buy, making them an affordable extra that adds value. If you have more financial wiggle room in the budget to spend, replacing faucets or <a href="https://www.bhg.com/home-improvement/advice/expert-advice/4-home-renovations-that-add-major-value-281474979622820/">light fixtures</a> can also breathe new life into a tired room. Talk with your real estate agent professional, who’s savvy about the latest design preferences and staging, to see what small purchases can make a big difference.
Curb Appeal Basics
You can make a big impression on potential homebuyers with upgrades and improvements in your home’s curb appeal. And in many cases, lawn care basics and aesthetics can be added without breaking the bank. Sometimes, just tidying up a fence line, trimming some overhanging branches, and introducing potted flowers to the porch is all it takes to make a big difference. Street-view images of your home are responsible for piquing the interest of potential buyers. Take the affordable steps to plant some flowers and polish up the yard, even if it means hiring a professional landscaping company. And you’ll see more traffic of homebuyers.
Fresh Paint
Another way to make your home look and feel like a whole new place without renovating involves a little paint. Consider painting small rooms with lighter shades to make them appear bigger. Maybe a fresh coat of white paint along the baseboards will offer a cleaner look. And any areas where the paint looks discolored or is chipped, introducing new color will be an improvement.
Deep Cleaning
You know that cleaning your house before you <a href="https://www.homewayre.com/blog/ready-to-sell-8-tips-to-getting-your-home-ready-for-market/">put it on the market</a> makes sense. But take the extra step to invest the marginal budget needed for professional carpet cleaning if your flooring looks tired. Go the extra mile to bring in a cleaning service for deep dusting and polishing. A clean space, which also requires decluttering, will be far more appealing to potential buyers.
Moderate Improvements to Move the Needle
If you have a little more budget to work with, you might be able to explore more moderate renovations. And these upgrades and updates are worth the investment, historically resulting in better offers. Every situation and budget will be different. However, consider getting estimates for making these upgrades and selling your home for more.
Bathroom Remodels
Again, your trusted real estate professional can help you decide which rooms in your home should be prioritized for a remodel. But in many cases, a renovated bathroom can bring significant ROI. Consider new sinks or tub surrounds, adding new fixtures, or updating the flooring. With so many great bathroom styles from which to choose, you’ll find the perfect bathroom update elements that fit your budget.
Kitchen Remodels
Probably one of the most important and mission-critical rooms in any home, responsible for making or breaking a deal with a buyer, is the kitchen. If you have the ability to replace appliances, introduce an island, or bring in replacement cabinets, you can expect big returns. Styles and design preferences will obviously vary. However, <a href="https://www.bankrate.com/real-estate/home-renovations-that-return-the-most-at-resale/">any kitchen renovations</a>, as your budget allows, will be a huge marketing point in attracting buyers.
Open Floor Plans
If you have the financial resources and time, consider opening your floor plan. If you can afford to bring in a contractor to open up a space or introduce more modern layouts, it can be a game-changer in attracting buyers. And it’s a great way to make your listing stand out from other listings in the neighborhood. Additionally, if an open floor plan isn’t feasible, consider opening common areas for a bigger feel or making innovative use of nooks and crannies as additional storage.
Windows and Doors
One aspect of any home that most homeowners will tell you they hate to consider replacing is the windows. If your windows are painfully outdated, overly drafty, or cracked, consider having them replaced. It’s a significant selling point for those willing to buy an older home, knowing it’s been updated with energy-efficient window treatments. And doors, including garage doors, can be replaced with more modern designs to make a big impression, too.
Big Home Renovations for Big Results
If you want to see really impressive offers and you have the budget, check out some of these major renovations that have an even greater impact on your offers and results.
Replacing Core Units
If you have the extra budget to do so, and your home’s mechanics require it, consider replacing core units. These might include replacing a water heater or toilets and plumbing. If your furnace or air conditioning system is outdated, consider a replacement. And other essential and functional aspects of your home that will need to be addressed, like the roof, siding, or electrical panels, can be upgrades you explore. Then, when you list your Lehigh Valley home, you can market all those fixes and replacements to inspire even more buyer traffic.
Multiple Space Remodels
If the budget allows and you have the time, consider remodeling multiple areas of your home. If a kitchen renovation is great and a bathroom update is great, then remodeling both is incredible. Before investing in any of these projects, which may come with heftier price tags, talk with your real estate agent to gauge the effectiveness in results.
New Additions
Can you add a new garage or create an addition to your home that adds significant value? Yes! Depending on your home’s layout, you could finance a small addition to market an extra bedroom, promote an open den, or transform a one-car garage into two. And all of those additions will translate to bigger and better homebuyer offers.
Fences, Decks, and Pools
Other home lifestyle extras that tend to bring value include perimeter and privacy fences. New or expanded decks and patios are also highly desirable among homebuyers. And while it’s not entirely worth it to put in a new pool, revamping an existing pool can be a huge motivating factor for new buyers.
As previously mentioned, when you want precise advice about what to renovate in your home before putting it on the market, talk with your trusted agent. And if you don’t have a reliable agent professional, contact the <a href="https://www.homewayre.com/blog/category/selling-your-home/">Homeway Real Estate team</a>! Our pros are experts about Lehigh Valley home trends, including proper staging efforts and renovations that bring value and bigger offers. Let us help you decide what to update and sell your house for more!2022-10-17T12:12:00-07:002022-10-17T12:14:54-07:00Alex Lopeztag:homewayre.com,2012-09-20:10521Lehigh Valley Pulse Check: Is Now a Good Time to Buy or Sell Real Estate?<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_31.jpg" width="1920" height="1080" />
To be honest, it’s hard to speculate sometimes whether it’s a good or a not-so-good time to buy or sell real estate only because every individual’s situation is unique. What may be a good time to buy for you may not be ideal for someone else.
However, the data continues to suggest a few key trends in today’s <a href="https://www.homewayre.com/blog/allentown-pennsylvania-investment-real-estate-the-complete-guide/">Lehigh Valley real estate market</a>. And at the moment of writing this blog, these are the metrics you need to help you decide if it’s a great time to buy or a great time to sell your home. The market continues to be active, and there are plenty of real estate opportunities to explore!
Factors That Contribute to a Fluctuating Real Estate Market
When you’re exploring the countless flow of data and suggestions out there, <a href="https://www.homewayre.com/blog/why-the-best-real-estate-advice-ever-from-your-non-agent-friend-is-wrong/">advising you when to buy</a> and when to consider selling, it can be confusing to know which to follow. And it can seem like the dynamics change almost daily, meaning by the time you get a mortgage pre-approval, the market shifts again. So, how can you really be sure you’re making the right move at the right time for your best financial outcome? Before we get into some of the latest trends and analytics, get comfortable with the key factors that contribute to a fluctuating real estate market.
Supply & Demand: A lot can impact the supply and demand of real estate, as we witnessed with the pandemic. People can decide or feel the need to move due to a host of reasons, including employment, workforce development, family dynamics, and finances. Those reasons are difficult to predict, too, making it an unknown contributor to the state of housing supply and demand. When fewer people are moving or looking to sell, it results in reduced supply.
Interest Rates: Another contributing factor to housing fluctuations is, of course, the interest rates for those considering mortgages. When the rates are low, buyers are incentivized to buy, increasing demand in the housing market.
Weather & Seasons: The metrics shift at various times of the year, some for obvious reasons. It’s just easier to go through the moving process when it’s sunny and warm, which is why many people decide to wait and list or buy during the spring or summer. The weather plays a role in when people choose to make purchasing or real estate selling decisions.
Economic Growth: Drilling down into various regions, you’ll notice that certain housing fluctuations vary from county to county. And a lot of that has to do with the economic development and growth of an area. If jobs are drying up and major employers move out of a city, people could flock to move, as well. Alternatively, if a city or region is experiencing economic growth, with more employers and new development, it’s a sign that it’s a thriving place to live, driving more real estate buyers to the market.
Historically, These Are the Trends to Know
During normal or average real estate conditions, not related to the last two years of pandemic and economic fluctuations, the most popular month to sell a Pennsylvania property in terms of the highest selling prices has typically been June. Historical data suggests that most properties sold in June and spent an average of 37 days on the market before officially selling. Warm spring and summertime months are ideal for those considering a move, making these months more active for real estate transactions.
Contradictory to those metrics are other datasets that suggest the best time to buy a new home in Pennsylvania is during the winter and fall months. These analytics point to less competition of buyers in the market during the colder months, making it more lucrative for potential buyers.
Another real estate trend to consider involves selling and buying over the holidays. Because most people are bustling with activity during the holiday season, they’re too busy to go out looking for new homes to buy. This also translates to less competition in the buying market during those holiday months. And if you’re planning to sell a Lehigh Valley property, some of the best deals and savings can be achieved quickly.
Here's another aspect to consider before you officially buy or sell a property. Historically, low inventory and high demand, meaning fewer homes for sale and more buyers looking to buy, hits its apex in the middle of April, according to Realtor.com. Sellers listing their properties during these peak few weeks can expect 1.4% higher offers and quicker sales.
Rising Real Estate Prices
Increased competition and fluctuations in the market since the pandemic have driven real estate prices upward. And while most Pennsylvania markets have begun to “cool,” there is still a lot of activity. Some real estate professionals suggest now is a great time to buy because some of the competition is slowing, reducing the competing offers on new homes.
It’s important to point out, too, that listings are barely spending time on the market. One dataset suggests that listings are averaging a mere eight days on the market when comparing April 2021 to April 2022. And the <a href="https://www.axios.com/local/philadelphia/2021/10/11/philadelphia-housing-market-drexel-report">median prices of those listings</a> have increased by 10.2%.
September 2022 Margins Point to a Sellers’ Market
Right now, most of the <a href="https://www.bankrate.com/real-estate/selling-a-house-in-pennsylvania/">industry metrics</a> are pointing to be strong for anyone looking to sell their Lehigh Valley property. In the Lehigh Valley, the listing prices continue to be higher than average, and homes are selling faster than traditional timelines.
The Pennsylvania Association of Realtors shared data that suggests buyers right now have “slim pickings,” with available inventory tracking at 3.2 months’ worth. The slight decline in available listings has contributed to the higher buying offers. This July, the median sale price was slightly higher than $219,000, which is still a steady 10.6% increase from last July.
Expect Changes Due to Interest Rates
Since the interest rates for the housing market change frequently, you can look for daily updates to know the most recent announcements. <a href="https://www.bankrate.com/mortgages/todays-rates/mortgage-rates-for-wednesday-october-5-2022/">Bankrate</a> provides such a resource. When the rates are low, they’re favorable to home buyers eager to capitalize on the low-interest opportunities for homeownership. Keep an eye on the ever-changing rates to figure out the best timeline to buy or sell. However, here are some interest rate averages to consider:
30-Year Fixed Rate
Data for the average mortgage rate on a 30-year fixed mortgage is roughly 6.83%, with a daily margin right now of .03% points. Again, by the time you read these, these figures could have shifted.
15-Year Fixed Rate
The average interest rate for a traditional 15-year fixed mortgage is roughly 5.99%, with a daily margin of .02$ points. These interest rates tend to be lower because the terms for payoff are shorter.
Adjustable Rate Mortgages
The averages for ARMs currently are around 5.32% with .20% points of margin. These rates are also lower but within the first five years of the mortgage terms.
As of right now, it’s a seller’s market in the Lehigh Valley. But again, that advice could change at any moment, given the various contributing factors to the market. And because your financial situation is entirely unique, your ideal time to buy or sell could equally be unique. The best way to really determine your ideal timeline for any real estate transaction is with the professional help of a <a href="https://www.homewayre.com/">Homeway Real Estate agent</a>. Contact one of our Lehigh Valley experts and discuss the best timing for your next real estate move! And we’ll help you decide when it’s best to buy a home or sell a home.2022-10-14T07:00:00-07:002022-10-10T09:07:13-07:00Alex Lopeztag:homewayre.com,2012-09-20:10528Ready to Sell? 8 Tips to Getting Your Home Ready for Market<img src="https://assets.site-static.com/userfiles/2131/image/11_1.jpg" width="1920" height="1080" />
You’ve waited on the sidelines long enough. You’re ready or are at least seriously considering putting your house on the market. But it’s been a while since you’ve last bought or sold, or maybe it’s your first time moving altogether. In either case, you know you’ll have to assemble a to-do list before officially putting that sign in the yard. And to help you with that list here’s a complete guide to help you get your home ready for market.
1. Get Busy Cleaning
Even if you’re eager to put your house on the market tomorrow, it’s important to remember real estate transactions are going to take time. There are tedious steps and processes for securing a loan, scheduling appraisers and negotiating offers. It’s a long-game journey for which you can prepare for some downtime. And with that downtime between waiting for mortgage pre-approvals, real estate agents to call you back, or responses to offers, you can be doing some serious cleaning. This is probably the most critical first step for anyone who’s ready to sell their home, officially or unofficially.
When you approach your cleaning to-do list, remember the key advantage of having a tidy home is to attract potential buyers. This means tackling some deep-cleaning projects that you might only reserve for seasonal changes. And you might decide it’s best to bring in professional cleaning services to help with some of these more in-depth cleaning efforts.
Wash the windows inside and out
Shampooing carpets or steam cleaning hardwood surfaces
Deep clean the kitchen, including appliances and fixtures
Deep clean bathrooms, including fixtures
Dust and wipe down ceiling fan blades and light fixtures
2. Declutter Wherever You Find Clutter
You want potential buyers to view each space in your home for sale and see “more,” “bigger,” and “more spacious.” If you have certain rooms or areas in your home that are cluttered or feel "busy," even if it’s organized clutter, those areas won’t inspire those desired first impressions. Think of it this way. You’re planning to move, which requires packing anyway. You might as well start packing now, starting with the most cluttered rooms, closets, or corners of your home. Anything that isn’t serving a daily lifestyle purpose can be packed and boxed. Knick-knacks you love aren’t going to help sell your house. Pack them up and let potential buyers envision their own items in the space. Make closets look bigger to demonstrate potential storage areas. And don’t forget to address outdoor clutter, either, including anything in the garage that is occupying space unnecessarily.
3. Buy More Light Bulbs
It’s generally a solid idea to go ahead and stock up on light bulbs. You’ll want to walk through your home entirely and replace bulbs for proper lighting. When potential buyers come through, even during the day, the lights will all need to be on for increased visibility. You can use energy-efficient bulbs as an added perk to buyers, too. Investing in light bulbs won’t be a wasted purchase, either. Any new bulbs you don’t use in your current home can be saved for use in your new home.
4. To Update or Not to Update
Let’s talk about your kitchen and bathroom. One of the most common considerations homeowners deliberate about is renovation. Should you redo your bathroom altogether to help sell the home quicker? Should you go ahead and upgrade appliances in the kitchen to make it more appealing to buyers? Some renovations <a href="https://www.rocketmortgage.com/learn/how-to-get-your-house-ready-to-sell">will add significant value</a>, allowing you to ask more for your listing. Others won’t necessarily reap the immediate value rewards.
Essentially, it boils down to your timeline and preferences. If you’re in a hurry to move, for a job or other reason, it might be more valuable to you to sell quickly and for less. However, if you have the time to explore renovations, you could get more bang for your investment buck. And if you decide a $20,000 kitchen remodel isn’t in the budget, you can still spruce up the kitchen with new cabinet hardware, a replacement stove, or a simple, new backsplash. The same logic applies to the bathroom. If you’re unable to accommodate a complete remodel, new lighting, faucets, or fresh paint can be all the difference you need to improve the space.
5. The Pre-Listing Home Inspection
When buyers decide they’re interested in your property, they’ll likely schedule a home inspection to have a professional review of the primary components, including HVAC, roofing, foundation, plumbing, and electrical systems. Instead of waiting for the buyers to take this step, consider scheduling the pre-listing inspection yourself. For a few hundred dollars upfront, you could get an itemized list from a neutral party professional about what might need to be fixed or replaced.
These pre-listing inspection reports are great selling tools, too, since you’ll be able to demonstrate to the buyers that you’ve already taken steps to ensure the overall soundness of the home. And with an itemized list of things that need fixing, like a loose railing, clogged gutters, or an aging smoke detector, you can be sure to only focus on those things that are important to the potential sale of the home.
6. Get the Handyperson on the Calendar
With or without a pre-listing home inspection, you should schedule a visit with a general handyperson or contractors. Replacing loose door handles, hanging new ceiling fans, or replacing damaged trim throughout the home are small fixes that can be efficiently outsourced. Make a list of to-dos before you call someone, so you can make sure you’re bringing in the right professional to handle all the jobs. But mounting the new mailbox, replacing rotten steps to a deck, or installing a new dishwasher are all efforts that increase the marketability to potential buyers.
7. Removing Odors & Stains
This step might fall onto your cleaning to-do list, but it’s worth mentioning independently. If there are visible stains or odors, potential buyers walking through your home will notice. So, it’s usually a good idea to address any noticeable issues directly. Consider hiring a professional to tackle the tough carpet stains. And if the carpeting is beyond saving, it might be worth pricing out some replacement carpeting.
Stains might be visible on ceiling tiles or the ceiling itself. Even if there isn’t an active leak to address, you’ll want to replace those stained tiles or touch up past water damage stains, if possible.
Odors can be particularly tricky, especially if you’ve grown accustomed to natural smells in your home. Invite a friend over to see if there are any kind of odors to address, whether it’s pet-related or just a stale odor. To combat intrusive odors, consider washing or having all drapery professionally cleaned. It might be your furniture that needs shampooing or an area rug that's retaining an obnoxious odor, too. You can always use air fresheners or wax burners with pleasant scents. But those tactics will only mask smells and are temporary fixes to major contributing factors to any unpleasant smells in your home.
8. Finding the Best Listing Agent
When you decide you’re ready to put your house on the market, another first step you need to consider is finding the right listing agent. Real estate agents come in all experience levels, so do your homework to make sure you find the best candidate with the most experience, who can help you sell quickly and for the most money. Having an agent partner in your corner means you’ll get all the actionable advice you need about preparing your house for the market. But you’ll also get top-notch property marketing, expert negotiation skills, and diligent communication about every step of the home selling process.
Consider all these tasks as your next steps for putting your home on the market. And let <a href="https://www.alopezteam.com/">Alex Lopez Team</a> your efforts as your listing partner to prepare to sell the right way and with the most value in mind so you can have the best listing experience.2022-10-10T06:02:00-07:002022-10-10T09:07:00-07:00Alex Lopeztag:homewayre.com,2012-09-20:1052710 Things Families Should Look for in a Community Before Moving<img src="https://assets.site-static.com/userfiles/2131/image/12.jpg" width="1920" height="1080" />
Anyone considering a move to the Lehigh Valley is going to want to look for specific community amenities and perks before deciding. Maybe it’s the job market or nightlife that is most appealing about one of the many Lehigh Valley cities and neighborhoods. But for families, there are specific community amenities to look for that will help ensure you’re making the best decision to move, not only for yourself but also for your kids. Based on our experiences with helping families buy and sell properties all throughout the communities of the Lehigh Valley, <a href="https://www.homewayre.com/blog/allentown-pennsylvania-investment-real-estate-the-complete-guide/">including Allentown</a>, Stroudsburg, and Lancaster, these are the perks they say matter most.
1. Evaluate the Schools, School Activities, and Extracurricular Options
When you plan to move your family into a new area, you’ll want to evaluate and explore the various educational options. From private institutions to <a href="https://www.allaroundmoving.com/10-things-to-consider-before-moving-to-a-new-neighborhood/">public school districts</a>, check out the details online and look for parental reviews from those who live there. Ask around and talk to families who’ve made similar moves. Meet with the school administrators to ask questions and take facility tours. If the goal is to live somewhere long-term, you’ll want to review every level of education, too, from kindergarten through high school.
Additionally, your kids may want to participate in extracurricular activities, like sports, academic clubs, or the arts. Look to find any programs that support these initiatives, including classes and private lessons that might be available. Make sure that wherever you move, your kids have all the activities and opportunities they need to broaden their skillsets, athleticism, and minds.
2. How to Review Neighborhood Safety
Obviously, safety and security are going to be top priorities for wherever you decide to move your family. And, despite your best intentions and efforts, there is no such thing as an absolute, crime-proof neighborhood. However, you can do your homework to research about specific crimes in a community. You can also stop into the local police department and express any concerns or ask questions about particular parts of town that might be more at risk for crime. At the same time, you can’t predict whether or not your kid’s bike will get stolen from the front yard. You can learn more about the community’s reputation and past occurrences. And armed with information and a great alarm system, you can have peace of mind knowing your family will be safe and secure.
3. Evaluate Transportation
You might drive your kids to all their events and social gatherings, but it’s still worth it to do a little homework on the area’s transportation systems. From bus routes to bike routes, explore how you and your kids can get from point A safely to point B and with ease. Public transportation may not matter to everyone all the time. But it can be incredibly helpful to know what transportation options you do have, should the need arise in the future.
4. Make Sure There Are Nearby Parks and Recreation
Kids of all ages can appreciate the benefits of a nearby park or bike path. Once you’ve identified a Lehigh Valley home you love, start exploring the recreational activities that might be available within walking distance of the property. Littles can burn off a little energy at the park. And even older kids can explore walking paths and bike rides nearby. It can also be helpful to identify seasonal outdoor activities, like swimming, sledding, or kite-flying areas. There isn’t a shortage of outdoor community amenities in the Lehigh Valley, either.
5. Dining Favorites and New Fare to Love
Even if your family enjoys most meals at home around the table, before moving your family to a new area, take a reading on the local dining. Explore restaurants of all kinds, from fast-food favorites for those post-practice busy weeknights to weekend family pizza nights. Make sure wherever you relocate to with your family, there’s enough fun and food everyone will love.
6. Family-Friendly for Free
You can do a search online for “free family-friendly” activities in any given city and explore a variety of fun, affordable recreational options. And in the Lehigh Valley, regardless of the community you choose, you’ll find festivals and seasonal citywide celebrations. There are libraries for rainy day book adventures. And there are museums and historical landmarks perfect for educational exploration throughout the region. Families need access to all of these great community amenities, so make sure you know what your chosen neighborhood has to offer.
7. Healthcare, Shopping Essentials, and Retail
Shopping for school clothes is one thing. But when there are growing kids in the house, you’re also going to need quick and convenient access to grocery stores, pharmacies, and emergency care clinics. Before officially settling on a home to buy, explore the city. Get referrals from your pediatricians and meet with new providers before moving. Look for those shopping and retail venues you rely on most now to see if they exist in your new community. And check into local farmers’ markets and sustainable produce options if healthy food choices matter, as well. Consider the drives needed to seek adequate healthcare and to buy new middle school basketball shoes, too. These will all be part of your parenting routines, and you’ll want to live where you have convenient access to all of them.
8. Neighborhood Vibe
Look around the neighborhood. Are there kids’ bikes parked in the front yard? Do some of the homes have playground equipment in the backyard? Are people sitting on their front porches? And do the neighboring homes appear to be well-maintained? These are all indications that the neighborhood you’re exploring can be family-friendly. Alternatively, if you’re seeing bars on windows, no signs of community activity, or less than stellar landscaping or maintenance, it could be a sign to keep looking elsewhere.
9. A Growing Community
You’ll be precise about what a new home might need before moving your family into one. You’ll likely look for a property you can grow into with enough space to accommodate enough rooms for all members or any new potential members joining your family. The same approach is needed when you’re looking at a community to evaluate its growth potential to be a perfect fit for your family over time. Take into consideration the economic development of the area. Are there new construction neighborhoods in the works? Are there major employers in the area? Look for signs that a community is thriving and growing so you know you’ll be moving to a place that will be able to grow with your family's needs for years to come.
10. Get Some Expert Community Amenity Advice
Before <a href="https://www.homewayre.com/blog/the-best-real-estate-investing-advice-ever-for-first-time-home-buyers/">moving your family anywhere</a>, you can always get the intel you need about a community’s amenities from an expert real estate agent. Contact Homeway Real Estate and let our team provide all the insights you need about Allentown, Lancaster, Easton, Stroudsburg, the Poconos, and more! Our agents have been helping families like yours buy and sell properties all over the Lehigh Valley for years. And it’s that expertise you need to make the right new-home decisions.
Connect with the <a href="https://www.homewayre.com/">Homeway Real Estate</a> team with all your community amenity questions and to work with an expert agent partner who can help you find the perfect Lehigh Valley home and neighborhood for your family.2022-10-10T06:01:00-07:002022-10-12T02:21:43-07:00Alex Lopeztag:homewayre.com,2012-09-20:10526Selling Soon? 6 Benefits of Having a Pre-Listing Home Inspection<img src="https://assets.site-static.com/userfiles/2131/image/14.jpg" width="1920" height="1080" />
For any Lehigh Valley resident who’s exploring the <a href="https://www.homewayre.com/blog/allentown-pennsylvania-investment-real-estate-the-complete-guide/">idea of selling a home</a>, there’s a lot to consider. For starters, you’re not even sure you want to go through the hassle of moving just yet. But at the same time, you’re seeing so many others buying new dream homes and selling their existing properties for high-dollar offers, and you want in on that profitability.
Before you make any rash decisions or rush to put that “for sale” sign in the yard, there are a few critical preparation steps to consider. One of the biggest trends for sellers these days is to have a pre-listing home inspection. And you’ll want to weigh all these benefits to decide if it’s the best way forward for you, too. Here’s what a pre-listing home inspection can do for you and why you should consider having one before you put your Lehigh Valley home on the market.
What Is the Pre-Listing Inspection?
Usually, it’s the homebuyers who handle the scheduling of and paying for a home inspection. And technically, they still may choose to do so, even if you’ve elected to schedule a pre-listing inspection. However, in most scenarios, when you, as the seller, handle the home inspection, buyers will rely on those findings in lieu of scheduling their own.
A home inspection process is much the same whether you’re scheduling it before you list, or your buyers schedule it before they buy. In either scenario, a certified professional will come into the home and evaluate its components. A report will be generated that itemizes concerns, repairs, or suggested replacements, regarding the home’s condition and overall functionality. Not all pre-listing inspections are alike. But, in general, they include the visual inspection of the following aspects:
Foundation Materials and Conditions
Roofing Structure, Materials, and Conditions
HVAC Systems
Plumbing and Drainage
Electrical Systems
Appliance Operation
Safety Overview (railings, smoke detectors, operable windows, and doors)
Every individual home inspector will work at his or her own pace and incorporate different equipment and processes. But the results should be similar. And it could take an inspector anywhere from three to six hours to complete the evaluation. Remember, though, the pre-listing inspection report is yours, and your inspector will be working for you. So, ask questions if you have them. Your inspector may offer for you to be present throughout the inspection process, too. But it's the finalized report, usually available within 48 hours of the inspection, that will be most valuable to you. Make sure yours includes concise descriptions and images of the areas inspected.
Why Having a Pre-Listing Inspection Makes Sense for Today’s Sellers
Because the <a href="https://www.homewayre.com/blog/the-best-real-estate-investing-advice-ever-for-first-time-home-buyers/">Lehigh Valley housing market</a> continues to be hot, buyers and sellers need to prepare for speedy timelines and transactions. Any step that adds delays, contingencies, and hesitation could negatively impact the overall experience. For this reason, among others, many sellers are taking advantage of the pre-listing inspection as a way to shave valuable time off the transaction, essentially doing the homebuyer’s step for them.
And there are countless other benefits to the seller, solidifying the decision to schedule <a href="https://magazine.realtor/sales-and-marketing/sales-coach/article/2018/01/pre-listing-inspections-put-sellers-in-control">a pre-listing inspection</a> for many. Having more control is one of the biggest advantages.
Immediate Benefits of a Pre-Listing Inspection Report
When you have all the information upfront and before buyers are negotiating on your house allows you as a seller to take control of the process and situation. You’ll have an immediate knowledge of any potential conditions that might warrant price negotiation, repairs, or replacements. And when you can present potential buyers with a home inspection report to back your asking price and to cite repairs you’ve made, it can seal the deal without hassle.
1. Make repairs before buyers have a chance to object.
Instead of waiting for buyers to present condition issues or repair requests later, the pre-listing inspection allows you to address or tackle those fixes ahead of time. This puts the control back in your hands, especially during negotiations.
2. Update deal-breaker items or concerns to attract more buyers.
With a pre-listing inspection report in hand, your property is more marketable. And when prospective buyers come for walkthroughs, seeing your report on the counter will put their minds at ease that you’ve accounted for any conditional concerns.
3. Be more trustworthy and transparent in the eyes of potential buyers.
When you’re open about what’s wrong or outdated with your property, you send a message to potential buyers that you’re trustworthy and transparent. And they'll be more agreeable to working with you.
4. Guarantee a more efficient and smoother transaction.
When you handle the inspection, your buyers may not have to schedule one of their own, thus creating a smoother and more efficient home selling transaction. They might still decide to have another inspector review the property. But having the pre-listing report can eliminate those extra steps, only streamlining the flow of the sale.
5. Protects sellers legally with regard to disclosure clauses.
Having a pre-listing home inspection won’t catch every tiny defect. But it can prove that you disclosed every visible concern without hiding hazards or issues.
6. Save sellers more money.
When you invest the few hundred dollars it costs for a pre-listing home inspection, you gain priceless insights. And if you can make necessary repairs, you can expect to net bigger offers. This all translates to money saved that would otherwise be potentially negotiated off of your asking price.
Choosing a Qualified Professional
When it comes to pre-listing home inspections, they won’t be effective if you don’t hire a reliable and qualified inspector. Some will have more experience than others. So, approach this hiring process the same you would with any other contractor. Vet them carefully, look for reviews, and verify licensing and insurance coverage. Ask your real estate agent for referrals, but don't be afraid to do your own research to find qualified and experienced inspectors in your neck of the woods.
There are organizations known nationwide that provide training, certification, and support for independent home inspectors. Look for Certified Professional Inspectors (CPIs) or Certified Master Inspectors (CMIs) with affiliations. Here are two of the most prominent and nationally recognized.
<a href="https://www.nachi.org/certified-inspectors">International Association of Certified Home Inspectors</a>
<a href="https://www.homeinspector.org/">American Society of Home Inspectors</a>
Once you’re confident you’ve found the right inspector or inspection company, make sure you ask about the format and timeline of delivery of the report. You can authorize the release of a copy to your real estate agent, too, who's going to be helpful in assisting you with knowing what findings are more often deal-breakers than others.
Depending on the average age and square footage of your property, a pre-listing home inspection should cost between $300-$800. Payment options may vary, but most inspectors do expect payment on the day of the inspection. And it’s a worthwhile few hundred dollars, considering all these benefits to you as the property seller.
If you’re thinking about or officially planning to list your house for sale, remember all the advantages of scheduling a pre-listing home inspection. It's a worthwhile step for a host of reasons. And don’t forget to call your<a href="https://www.homewayre.com/blog/category/selling-your-home/"> trusted Homeway Real Estate agents</a> to guide you through your journey! We can make sure you're set up for the best home-selling experience. And we'll help you find your new dream home, too!2022-10-10T05:58:00-07:002022-10-14T08:41:05-07:00Alex Lopeztag:homewayre.com,2012-09-20:105258 Signs You Need a Better Real Estate Partner<img src="https://assets.site-static.com/userfiles/2131/image/13.jpg" width="1920" height="1080" />
Even when the real estate market is calm, you want to make sure you’re working with the right real estate agent. There are so many details to manage, nuances to know, and tasks to tackle; not having the right professional in your corner could wreck deals or, worse, cost you thousands. But in today’s volatile market, the need for the right agent is heightened as buyers line up to put in offers, contingencies move quickly, and deals close before you know it. You can't afford not to work with the best agent who has the most experience by your side.
So, how can you really know if you’re working <a href="https://www.homewayre.com/blog/13-signs-you-need-a-better-real-estate-agent/">with a great professional</a>? Probably the better question to ask is, what signs indicate you’re working with the wrong agent? So, get out your checklist and jot these down. If these scenarios sound all too familiar with your current real estate experience so far, it’s probably time to find a more qualified agent partner.
1. Communication Is (or feels) Entirely One-Sided
When you first met with your agent, you felt confident you were making the right decision. They seemed competent and knowledgeable. Or maybe they even came highly recommended. But here you are, a few months into your journey, without offers and even fewer walk-throughs scheduled for you. You leave a message or two, or maybe even forward a listing you might like to see. Still, no response, or you get the “let me call you later tonight” text without substantive follow-up at all. If you’re feeling like you’re chasing down your agent for answers or results, or worse, are feeling ignored altogether, it’s time to find a better partner.
2. The Agent Bully
Like a toxic relationship you’d tell your friend to leave, agents can be just as arrogant and overconfident. If your partner suddenly seems argumentative, controlling, or downright bullying, it’s time to move on to greener pastures. You’ll want a confident professional to help guide you through this selling and buying process. But the keyword there is “professional.” Any over-pushy or condescending behavior should never be tolerated. Find a real estate partner who can be just that for you, a true partner.
3. Too New to Know Better
Noobs will cost you time and money. Plain and simple. So, even if your agent is a referral or you feel like you’ve hit it off well, when the agent is too new to the business, they won’t have the expertise you need to deliver. Yes, there are fresh agents out there who are absolute rock stars. And if you’re confident you’re in good hands with such a rookie rebel, run with it. But typically, without a track record of sales and listings, there isn’t going to be enough insight for efficient troubleshooting. A new agent won’t be able to see around corners like a veteran. So, look for proof in experience and make sure you’re partnering with someone who knows the ropes, the ups and downs, and all the potholes that may lie ahead. And definitely verify that the agent you choose has the appropriate licensing and credentials.
4. Too Busy to Commit to You
On the flip side, the veteran agents out there may have their plates full of buyers and sellers, meaning they’re too busy to commit to a thorough process for you. When you have an agent who you know comes with a glowing reputation, make sure they have the capacity to take on your listing. Follow up to ensure they’re still looking for new properties for you to explore. And if at any point you feel back-burner, trade in your agent for someone who has the time to commit to your needs and home buying journey.
5. Marketing Mistakes
If you’re listing your Lehigh Valley home for sale, you’ll need an agent partner who is a <a href="https://www.forbes.com/advisor/mortgages/finding-right-listing-agent/">savvy marketing master</a>. Top-performing agents will groom their networks, run ads, heavy up on social media, and will have regular open houses. Simply posting on MLS or a few listing sites won’t cut it in today’s market. If you aren’t seeing any results or traction from your listing agent, ask about what kind of marketing they’re doing on your behalf. If you’re not satisfied in the slightest with the answer, it may be time to look for a new real estate partner.
6. Flurry of Activity without Results
Because the real estate market is bustling these days, it’s easy to feel like you’re seeing a lot of activity. Maybe there are lots of people showing up to your open house or making inquiries about your listing. And if you’re buying, your agent may have tons of fresh listings for you to look at and explore as your next dream home. But in a market this hot, a lot of activity is happening for everyone. What you really want is results, whether it’s an accepted offer on a new house or a better-than-expected offer on your house for sale. If you’re not seeing any results, it could mean there’s a breakdown in your agent’s ability to negotiate a sale or to get others to commit. Negotiation skills and sales experience will <a href="https://www.homewayre.com/blog/16-pieces-of-bad-real-estate-advice-to-never-listen-to/">separate the great real estate agents</a> from the mediocre agents. Make sure you’re working with one of the greats who can turn all that buzzing activity into dollars and cents.
7. Sketchy or Misleading Behavior
This is a big one. If at any point in your real estate agent partnership you feel like something’s off, they’re misleading or misrepresenting in any way, move on to another agent. Any agent who encourages you to skip the inspection because “it’s just a little water in the basement” is not honest. Alternatively, any agent who encourages you to conceal information about your home for sale so as not to detract buyers who “won’t appreciate having to get a new roof” find someone else. Yes, there will be some tough love conversations sometimes with an honest and professional agent partner. But in the end, the best agents know they’re there to guide you and advise based on experience. Any other shady suggestions or quick-sale tactics only make you look like the bad apple in the transaction. Stick to your gut.
8. You’re Not Working with a Homeway Agent
Seriously, though. When it comes to Lehigh Valley real estate experts, there isn’t a group of agents more qualified and experienced than the team at Homeway Real Estate. And you can check out some of our online reviews from buying and selling clients who have nothing but great experiences and positive real estate transactions with our team at the helm.
“Everyone was kind, helpful, and very organized. I would definitely recommend Homeway.” – Valerie M.
“Great staff!” – Amanda S.
“Amazing agents in Allentown. And they service the entire Lehigh Valley, so I was able to look at listings in Bethlehem, Easton, and Allentown!” – Jacob G.
Don’t trust your real estate journey with just anyone. Make sure you find the <a href="https://www.homewayre.com/">right Homeway Real Estate agent</a> partner whenever you list or buy a property in the Lehigh Valley. What you’ll get is a top-rated professional partner with experience and knowledge, commitment, and passion for helping you achieve your best results. What you won’t get are any of the aforementioned signs that you’re working with the wrong agent.2022-10-10T05:56:00-07:002022-10-17T12:12:13-07:00Alex Lopeztag:homewayre.com,2012-09-20:10028Is Buying an Airbnb a Good Investment in the Poconos<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_29.jpg" width="1920" height="1080" />
Buying real estate is a big decision no matter what your motives or where you plan to buy. But if you have a rental property in mind, more specifically, Airbnb properties, keep reading. There is a growing trend and popularity <a href="https://www.homewayre.com/blog/the-best-places-to-buy-an-airbnb-in-the-lehigh-valley/">for Airbnb experiences</a>. And there is significant revenue potential available to you if you’re smart about where and what type of property you purchase.
One of the most attractive and high-profile tourist areas in the Lehigh Valley is the Pocono Mountains. With thousands visiting every year, you’re wondering if buying an Airbnb there is a great idea. And today, we'll shed some light on how Airbnb works, the benefits of choosing a property in the Poconos, and what you'll need to consider before buying an Airbnb property for the first time.
Understanding How Airbnb Works
If your goal is to establish passive income, a vacation rental property is a great investment to help you do just that. More specifically, you can look to market its availability using the Airbnb platform, which is essentially what differentiates a typical vacation rental from an Airbnb rental. Airbnb is an online marketplace of rental spaces, some partial, others entire properties, where travelers can visit and book short-term stays. When you own one of these rentable spaces, you have the potential to turn several guests throughout the year. The key to a profitable short-term rental lies in its ability to attract new guests year-round and ongoing. At first glance, buying an Airbnb in the Poconos sounds like an incredibly lucrative idea. With so many already traveling to the area, you're already a step ahead in attracting vacationers.
How Airbnb Properties Are Different from Traditional Rental Properties
Every property is going to present unique benefits and challenges, regardless of its <a href="https://www.rocketmortgage.com/learn/airbnb-investment">location or Airbnb marketability</a>. But there will be some nuances with the Airbnb property that you won’t have with a traditional rental property. For example, when you own a short-term or vacation rental, you’ll have to deal with decorating and furnishing the space. Your maintenance will be different, too. You’ll change out bedding and amenities after each guest, which, with a short-term stay, will be more frequent than with typical long-term lease agreements. Here are a few other variances you’ll need to expect with an Airbnb:
You’ll pay for utilities
You’ll be responsible for ongoing and routine maintenance
You’ll likely pay for subscription services, like television and internet
Your home insurance might be more costly
Why the Poconos Is an Ideal Location
There are so many reasons to buy vacation rental <a href="https://www.homewayre.com/blog/allentown-pennsylvania-investment-real-estate-the-complete-guide/">property in the Lehigh Valley</a>, whether it’s Allentown, Bethlehem, Lancaster, or small towns dotting the region, chock-full of character and charm. But the Pocono Mountains present even more advantages if you find the right gem to buy.
The popular <a href="https://www.homewayre.com/blog/your-investors-guide-to-the-pocono-real-estate-market/">Pocono Mountains offer tourists</a>, guests, and passers-by the most amazing views and potential experiences. From thrill-seeking adventurers to retired family reunion getaways, the Poconos is a perfect place to vacation. So, naturally, buying an Airbnb there makes sense. Before selecting a property in the Poconos to buy, you’ll want to create a marketing plan to outline all the fun and unique things to do in the area. This list makes your vacation rental more marketable, thus, more lucrative.
Zip lining through the mountains
Exotic bike trails for novice and experienced riders alike
Mouth-watering dining venues with unique dishes and fare
Wildlife viewing and photography
Snow skiing trips
Water activities, including float trips, canoeing, boating, and swimming
Pros and Cons to Consider Before Buying any Airbnb Property
Before you take the leap, sit down and examine your finances to prepare. Once you’re confident you can take the next step, evaluate the various pros and cons before buying an Airbnb property. Again, because these are different from owning and managing than traditional real estate rentals, you’ll want to weigh all the options, good and bad, before making a purchasing decision.
Pros to Consider
The potential to see significantly higher revenue
Less dependency on long-term leases and tenants
Airbnb takes all the guesswork out of “where” to market your space
Cons to Consider
It might cost more to get furnished and setup
Operating costs might be higher with a more frequent guest turnover to manage
Listing on Airbnb and effectively managing it will be a part, if not a full-time job
Tips for Finding Your Ideal Poconos Airbnb Opportunity
The real estate market in the Poconos continues to be hot, and properties don’t stay listed for long. But don’t rush to purchase because you fear missing out on an opportunity. And the Poconos is the perfect setting for all types of properties that would be perfect Airbnb assets. From cozy, remote mountain cabins to upscale and posh waterfront condos, there are a host of property types from which to choose. And all will present their own unique vacation rental experiences you can market to attract guests.
Start with identifying a great location and then explore the various amenities and attractions unique to the space. Remember, you’ll be marketing the vacation experience, which is different from traditional marketing of a living space for a long-term rental. Don’t be afraid of the bizarre or unique layouts, either. Essentially, those are more marketable and stand out from other Airbnb properties in the area.
Most Common Airbnb Ownership Questions, Answered
If you’re buying an Airbnb for the first time, here are some of the most common questions asked, along with the answers you need to better understand your opportunities.
How much does it cost to start investing in a Poconos Airbnb?
Buying an Airbnb property is going to essentially be the same process as buying a traditional home or real estate property. You’ll need to secure a mortgage, which may include a down payment, insurance, title work, and taxes. Explore some of the lending programs available to help you finance your vacation rental purchase and talk with your lending professional for resources and advice for your financial situation.
Is it hard to run a successful Airbnb?
The short answer is maybe. You will need to make a substantial commitment in time and effort if you want your Poconos Airbnb to be successful. The most successful vacation rental owners say it’s a daily effort to stay on top of your task list of marketing, operations, and guest satisfaction.
What type of Airbnb is the best to buy?
Again, unique and special are the best traits of any vacation rental property. And location matters most, making any Airbnb in the Poconos a great first location to buy.
How much does it cost to officially list on Airbnb?
According to <a href="https://www.airbnb.com/resources/hosting-homes/a/how-much-does-airbnb-charge-hosts-288">Airbnb</a>, most hosts pay a flat service fee which is roughly 3% of the booking subtotal. Guests choosing to book using Airbnb pay around 14% in fees to Airbnb.
So, if your question is whether or not buying an Airbnb in the Poconos is a good and sound investment, the answer is a resounding yes! Consider all these suggestions as you explore your real estate purchasing options and let the team at <a href="https://www.homewayre.com/">Homeway Real Estate</a> help you find the perfect Poconos vacation rental to buy. From remote shacks tucked away in the mountains to high-profile condos near the heart of the Poconos tourist towns, our team can help you find it!2022-08-25T08:34:00-07:002022-08-25T09:38:48-07:00Alex Lopeztag:homewayre.com,2012-09-20:9938Allentown Pennsylvania Investment Real Estate: The Complete Guide<img src="https://assets.site-static.com/userfiles/2131/image/Screen_Shot_2022-08-15_at_3.22.46_PM_1.png" width="1000" height="550" />
No matter where you call home in the Lehigh Valley, most people agree that Allentown, Pennsylvania is pretty special. With a host of things to do, consistent economic growth, and a rich history, it’s the perfect marriage of charm and modern amenities.
So, for anyone who’s exploring their options as a real estate investor in the Lehigh Valley, Allentown likely tops your list of local cities in which to start your search. To help you embark on this investment journey, we’ve put together a guide highlighting all things Allentown, along with insights and details you need to buy an investment property there.
Allentown, Pennsylvania Is a Lehigh Valley Investment Gem
Of all the places to begin your <a href="https://www.allentownpa.gov/Businesses/Business-Real-Estate-Guide">real estate investment</a> journey, Allentown is a true gem. And when properties become available, they certainly don’t last long, with an average of nine days before selling. Home values are up, too, by about 19%, as are employment and the general population, each approximately by 1%.
Allentown offers the best of both urban and rural advantages. And if the city life isn't what you had in mind, you can always explore these Allentown suburbs, equally fantastic settings for real estate investment properties.
Nazareth
North Catasauqua
Helle
Emmaus
Freemansburg
Topton Walnutport
Alburtis
Macungie
Quake
The City of Allentown sprawls across 17 square miles in total and has an average population of over 120,000. And within its city limits, you can explore a host of <a href="https://lehighvalley.org/grow-here/real-estate/">real estate diversity</a>, including manufacturing facilities, commercial properties, city lifestyle amenities, and suburb-like tranquility within its residential neighborhoods. With all this bustling activity comes tons of restaurants, shopping, nightlife, and seasonal festivities, too. Allentown really does have something to offer everyone.
Industrial Real Estate
To explore opportunities to invest in area industrial properties, connect with the <a href="http://allentownedc.com/">Allentown Economic Development</a>. Manufacturing and industrial projects can be lucrative investments. Even if you only want to explore warehousing and commercial storage options, you could find just the property worth investing in, in Allentown.
Qualified Opportunity Zones
Qualified Opportunity Zones, or QOZs, are newer community development programs intended to encourage long-term investment in rural and low-income communities. There are tax incentives available for investors exploring these options. Additionally, there are more than 300 census tracts in Pennsylvania designated as <a href="https://www.allentownopportunityzone.com/opportunity-zone-info">Qualified Opportunity Zones</a> worth exploring.
Neighborhood Improvement Zones
There is a special taxing district, created initially by Pennsylvania state law, called the Neighborhood Improvement Zone. Tax incentives and financing resources are available for these areas, as well. The Allentown Neighborhood Improvement Zone Development Authority or the <a href="https://allentownniz.com/">ANIZDA</a> oversees the NIZ, and it may be worth connecting as an Allentown real estate investor looking for new opportunities.
Brownfields
There are redevelopment opportunities across the <a href="https://lehighvalley.org/grow-here/redevelopment/">Allentown brownfield</a> sites designated for sustainable development initiatives. The Lehigh Valley’s Land Recycling Initiative, along with the Lehigh Valley Economic Development Corporation, are supporting partners, ready to help you with any development, planning, or financing of sustainable investment projects. If you're looking to invest in sustainable solutions, this may be a connection you want to make.
Finding the Best Allentown, Pennsylvania Investments
When you’re officially serious about moving forward and investing in Allentown, Pennsylvania, real estate, you’ll want to prepare financially and with a team of professionals who can help. You’ll want to make sure you have guidance from your preferred financial advisor, your lender, and your favorite <a href="https://www.homewayre.com/blog/5-tips-to-find-the-best-lehigh-valley-investment-properties/">Homeway Real Estate</a> agent. Secure your financing and outline your purchasing strategy to set yourself up for success.
Make sure you’re ready with stats supporting:
Allentown neighborhood population
Allentown community development rates
Allentown appreciation rates
Allentown property tax rates
Allentown average income levels
Allentown price-to-rent ratios
The Pros & Cons of Real Estate Investing
Generally, investing in real estate is a safer option, presenting fewer risks than other investments like mutual funds or the stock market. But like with any financial and investment strategy, there are pros and cons to consider. While you have advantages pointing to a return on your investment, there will always be some degree of investment risk involved. Here are both perspectives you can review and reference as you make your Allentown purchasing decisions.
Pros Include:
Tax Benefits
Appreciation Returns
Infused Cash Flow
Diversification Options
Physical Asset
Short and Long-Term Flexibility
Cons Include:
Maintenance Expenses and Property Condition Repairs
Unexpected Expenses
Financing and Lending Challenges
Complex Purchasing Process
Time-Consuming to Buy, Find, and Manage
Still Risk of Potential Loss in Value
Existing Rental Properties
As you begin to look for available properties, it can often be a great idea to start by looking at existing rental properties. Commercial or residential, those Allentown real estate investments already generating income can be ideal first properties for new investors.
For Sale By Owner Properties
Because incredible properties don’t stay on the market for long in Allentown, you might be hard-pressed to act quickly enough to make your purchasing decisions. But don’t discount those listings offered directly by owners. FSBO properties can represent great opportunities for investors. Just make sure you have your real estate agent to represent your interests during negotiation and purchase.
Airbnb and Vacation Rentals
Maybe you’re looking for more seasonal properties, ideal for vacation rentals or Airbnb listings. Allentown is a bustling attraction for thousands of tourists each year. You can browse available vacation listings and actively search for new properties that could easily transition into vacation rentals.
Single-Family
You won’t be hard-pressed to find incredible homes in and around Allentown that would make great investment real estate properties. From move-in ready <a href="https://www.homewayre.com/blog/should-you-buy-fixer-upper-homes-for-sale-in-lehigh-valley/">to fixer-uppers</a>, you’ll have a variety of options from which to choose. And the styles range from eclectic colonials to modern architecture, including these <a href="https://www.homewayre.com/blog/the-most-popular-type-of-lehigh-county-homes-for-sale/">iconic home types</a>:
Classic Ranch
Pennsylvania Colonial
Farmhouses
Victorian
New Construction
Custom Homes
Multi-Family
If you’re looking for an Allentown, Pennsylvania, investment property that will offer a higher return, then you might want to consider buying a multi-family property. These properties are perfect for those who want to live in one unit and rent out the others or for investors who want to generate income from all units. Condos, apartments, and complexes are all available in Allentown, Pennsylvania. Just find the ideal investment for you and make an offer!
Commercial Property
Of course, you’re not limited to residential properties when investing in Allentown real estate. There are plenty of commercial properties available as well, ranging from office space to retail storefronts. And with a thriving economy, there’s no shortage of businesses looking for new locations.
Every Allentown Property Has These Marketable Assets
Regardless of the type of investment property type you decide to buy, there are certain things you’ll always be able to market in Allentown. Developing your marketing plan for renters, commercial tenants, and tourists will be easy when you tap into these incredible Allentown amenities:
Parks & Recreation
Convenient Commutes to Other Cities
Plenty of Retail
Festivals & Family-Friendly Activities
Swimming & Water Fun
Hiking & Biking
Historical Sites & Museums
Great Schools & Educational Resources
Investing in Allentown real estate is a great financial move. Keep these details handy as your guide to available resources, local information, and tips for making your best investment decisions. And don’t forget to <a href="https://www.homewayre.com/">contact Homeway Real Estate</a> for a front-row seat for all the available listings in Allentown. Our team of agents can answer any questions for first-time investors and seasoned veterans alike.2022-08-17T10:18:00-07:002022-08-17T11:21:53-07:00Alex Lopeztag:homewayre.com,2012-09-20:98465 Tips to Find the Best Lehigh Valley Investment Properties<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blog_Posts-2.png" width="779" height="430" />
Whether you’re 25 or 65, managing your finances is a top priority. Either you’re exploring new ways to save and invest, or you’re looking for new methods for improving your retirement income. And one solid solution to both dynamics is investing in real estate in the Lehigh Valley. Real estate continues to be a smart financial investment but beware. Not <a href="https://www.homewayre.com/blog/7-real-estate-horror-stories-that-could-have-been-avoided-with-an-agent/">all investor experiences</a> will be positive. And there are certain insights to consider to help you prepare in advance before venturing out to buy Lehigh Valley investment property.
Real estate investment properties are definitely lucrative for generating passive income, building wealth, and improving savings. And in today’s market, with all the tools and resources available, you don’t have to be a savvy landlord or investment tycoon to be successful. All you need to know is what questions to ask, what properties to look for, and what steps you can take to make the investment and management process seamless. But you'll also need some additional, <a href="https://www.homewayre.com/blog/16-pieces-of-bad-real-estate-advice-to-never-listen-to/">reliable advice as you embark</a> on your journey. Here are the tips you need to see to help you make the best decisions for your finances, timing, and goals. And before you know it, you could just be managing a portfolio of successful real estate investment properties!
1. Prepare Yourself Financially
Having a little capital in reserves isn’t going to be enough to prepare for a real estate investment. You’ll also need to consider your short and long-term investing goals. Sit down with your finances and really think about what’s driving your motivation to buy an investment property in the Lehigh Valley. Are you trying to generate a steady stream of income? Are you looking to quit your job and focus on real estate full time? How much income is going to be a home run for you monthly, quarterly, or annually? Strategize your objectives first, and you can look to make all other decisions in accordance with those goals.
With those goals in mind, you then need to evaluate your own skills, experience, and preparedness to <a href="https://www.forbes.com/sites/forbesbusinesscouncil/2021/11/19/purchasing-an-investment-property-tips-for-finding-the-right-deal/">manage the property or properties</a> beyond the closing table. Are you wanting something turnkey with existing tenants and profits? Are you prepared to manage those engagements in a landlord capacity? Or are you more interested in a DIY project where you can later try to market a property as a rental? Answering these key questions and aligning them with your goals will help you better understand what type of financial and management position you want to be in to reach them. That way, you can easily steer clear of any Lehigh Valley investment properties that don’t fit your current position and overall objectives.
2. Setting Realistic Investment Expectations
Finding the best Lehigh Valley investment properties isn’t always about quick returns. There are expectations, some realistic and others not so much, that real estate is lucrative all the time for everyone. And there are factors that play into just how successful of an experience you can prepare to have, depending on the property you buy. So, really explore the hard truths about your borrowing power, your ability to sustain without an immediate income, and, more importantly, the current state of the real estate market.
By now, you’ve decided what <a href="https://www.forbes.com/sites/forbesrealestatecouncil/2021/09/22/how-to-decide-where-to-invest-in-real-estate-the-breakdown/">type of property</a> or budget you need to stick with, single-family, multi-family, commercial, <a href="https://www.homewayre.com/blog/the-best-places-to-buy-an-airbnb-in-the-lehigh-valley/">or vacation rental</a>. But based on those goals, you can next go and explore the very latest listing prices, sale volumes, and economic benchmarks of those specific types you believe to be a good fit. Check out the various geographic areas around the Lehigh Valley, too, looking at unemployment rates, economic development trends, and interest rates.
As you spot new properties for sale, look at these factors, too:
Population Growth: Know before you buy if more people are moving into the community or out of it. No matter how impressive your rental property ends up being, if the area is drying up in population, there will be challenges in finding new tenants. Also, consider the average age of the current population to help you gauge who a target resident might be for property you buy there.
Appreciation Rates: These rates will be indicators of the overall health of the local market. Look for steady increases year after year. Too much fluctuation could be a signal of an unstable investment.
Property Tax Rates: Because these payments can significantly impact your returns, you’ll want to verify any property’s taxes before buying. Overly high taxation rates can be an indicator of a declining economy.
Price to Rent Ratios: Get into the math on potential rent by taking the median property price and dividing it by the annual median gross rent. Any communities with low rent ranges will have a higher price-to-rent ratio. You want to avoid any ratios so low that buying a property is more advantageous than renting one.
Income Levels: In addition to the unemployment rates and economic development data, look at the latest median income levels for the area. Ideally, you’ll want residents to easily afford the rent you’ll be charging.
Risks Associated with Natural Disasters: Any Lehigh Valley real estate you choose will need to have marketability for current residents, but you’ll also want to be able to sell it if need be. Avoid pitfalls by investing in areas that tend to be prone to environmental disasters or damage.
3. Working at a Pace That’s Right for You
Today’s real estate market is fast-moving. But don’t be rushed into buying any property unless and until you’re ready. The best Lehigh Valley investment property experiences are those that move at a pace that’s conducive to you. If any property or scenario has you second-guessing or feeling pressured, don’t make a move until you consult with someone who can help you decide. Keep the emotional aspect of investing out of your process so you can avoid caving into the FOMO dynamics that are all too prevalent in today’s market.
4. Get Yourself Some Bench Strength of Investment Support
Speaking of consult, make sure you have an army of support at your fingertips. Know your team, including contractors, attorneys, accounting professionals, and financial advisors. The real estate investment journey is going to require first-hand experience from the pros. Now’s not the time to take advice from your friend’s cousin who just started in the industry, either. Take your time and vet each support partner and vendor, so you know every nugget of advice you do get is going to be sound and helpful in reaching your goals. One of the most critical members of your investing support team is a well-versed, locally knowledgeable, and seasoned real estate agent.
Working with the Homeway Real Estate team of professionals will put your mind at ease because you’ll have just the right guidance you need to find and buy the right-fit Lehigh Valley investment property. And whether you’re looking in Allentown, Stroudsburg, Lancaster, or the <a href="https://www.homewayre.com/blog/your-investors-guide-to-the-pocono-real-estate-market/">Pocono Mountains</a>, our agents know the investment landscape and can help you make financially savvy decisions that alight precisely with your goals.
5. Finding Great Lehigh Valley Investment Gems
With your financial goals in mind and ideal property types outlined, you can begin your search for the best property to buy. And finding the best deals and iconic gems will require the expertise of your agent. But you can also explore some of these tips when looking through the listings.
For Sale by Owner Properties: Not all sellers will choose to work with an agent. So, don’t be afraid to drive around and look for FSBO properties to consider. Let your agent handle the details, but you could find great little properties worth buying.
Existing Rental Properties: Some existing rental property or investment property owners are considering selling but haven’t had the right offer or haven’t officially taken steps to list their property. If you spot a condo, for rent sign, or investment property with tenants, don’t hesitate to reach out to the current owner and inquire about an interest in selling.
Check All the Sites: Don’t stick with just one real estate listing site. Not all agents use the same platforms. So, explore MLS, Zillow, and Realtor.com. And don’t forget to check out the rental sites, too, to spot existing turnkey properties you might be able to buy.
Consider these tips when you’re ready to explore and find the best Lehigh Valley investment properties! And call <a href="https://www.homewayre.com/blog/category/buying-a-home/">Homeway Real Estate</a> to help you get started!2022-08-10T07:00:00-07:002022-08-08T16:32:02-07:00Alex Lopeztag:homewayre.com,2012-09-20:9788The Best Places to Buy an Airbnb in the Lehigh Valley<img src="https://assets.site-static.com/userfiles/2131/image/Screen_Shot_2022-08-01_at_10.35.53_AM_1.png" width="1000" height="548" />
There has been a growing movement among travelers and vacationers over the last two years. Vacationing and exploring with friends and family, along with a renewed sense of travel for purposes of taking a break and self-care, are returning <a href="https://www.homewayre.com/blog/3-neighborhoods-with-the-best-lehigh-valley-luxury-homes-for-sale/">as popular trend</a>s. And with that return to travel and families taking advantage of the "great vacation," is a booming <a href="https://www.airbnb.com/">Airbnb</a> industry.
You’ve been watching this short-term rental trend grow for some time now. And you’re recognizing the incredible opportunity to generate income by owning a rentable space, especially in the Lehigh Valley. You’ve done your homework and know that <a href="https://www.discoverlehighvalley.com/annual-meeting/#:~:text=Lehigh%20Valley%20welcomed%2012.5%20million,81%25%20traveled%20by%20car">millions of people travel</a> to the <a href="https://www.homewayre.com/blog/4-incredible-lehigh-valley-trails-to-explore/">Lehigh Valley for vacation</a> every year. Now you just need help identifying the right property to buy that would be an attractive Airbnb rental. Today, we’ll share insights and suggestions for finding the best places to buy an Airbnb property in the Lehigh Valley. And with these tips, you'll be well on your way to becoming a successful host of a great short-term rental.
Pennsylvania Airbnb Hosting Stats
If you need some reinforcement in your decision to buy an Airbnb, <a href="https://www.lehighvalleylive.com/news/g66l-2019/01/38b98c4e9e9590/the-25-pa-counties-where-airbn.html">check out these stats</a>. In 2018, and prior to the pandemic, Pennsylvania Airbnb hosts earned $122 million, based on the projected one million guests who passed through the state then. Roughly, those vacationing visitors have grown by 20%. The Lehigh Valley, more specifically Lehigh County, ranks among the top Airbnb Pennsylvania counties. It’s estimated that 14,200 hosts are scattered around the state, proving it’s a worthwhile investment for many.
Choosing the Best Places to Buy
There are some Lehigh Valley communities that already enjoy a robust Airbnb economy. Based on annual tourism and other amenities, there are <a href="https://www.limaone.com/best-pennsylvania-cities-for-real-estate-investors/">a few cities worth exploring</a> first when you’re looking to buy. Lancaster, for example, boasts an annual guest headcount of 57,000. But Allentown is another top city for tourist attractions, along with being the third most populated city in Pennsylvania. Other communities, including Bethlehem, Stroudsburg, Easton, and small towns in and <a href="https://www.homewayre.com/blog/your-investors-guide-to-the-pocono-real-estate-market/">around the Pocono Mountains</a>, are all ideal destinations for traveling guests year after year.
What Airbnb Guests Want
Because you’re more interested in generating revenue with an Airbnb property and short-term rental, you’ll need to put your “business hat” on before you decide which potential property to buy. Guests will come to the area based on a few key amenities and factors. So, make sure wherever you decide to buy, the surrounding attractions should be helpful in bringing in travelers all year round.
Historic Exploration
If you want to make sure you’re buying the best place to market as an Airbnb, look for properties that have nearby historical stories to tell. The Lehigh Valley is full of rich history and adventures for tourists to travel back in time. Landmarks, museums, and nearby historical societies can all be great amenities to help attract guests to your Airbnb, including:
The Hoover Mason Trestle
Historic Moravian Bethlehem
Liberty Bell Museum
Nature-Lovers’ Adventures
Travelers will have different preferences in amenities. But everyone will appreciate a gorgeous view. Nature enthusiasts will choose to stay in an Airbnb that offers a slice of life, au naturale, with outdoor views, nature trails, and scenic adventures. Buy an Airbnb that offers that outdoor experience, including some of these hotspots:
Valley Preferred Cycling Center
Delaware & Lehigh National Heritage Corridor
Appalachian Trail
Festivals & Special Events
Check the community calendars <a href="https://www.homewayre.com/blog/the-best-real-estate-investing-advice-ever-for-first-time-home-buyers/">before you buy</a> an Airbnb. Find a spot that maybe has festivals, annual celebrations, or seasonal events worth promoting to guests. From local farmer’s markets to music festivals, these unique events will help attract guests to your rental.
Celtic Classic
PA Bacon Fest
Musikfest
Garlic Fest
Family-Friendly Attractions
Maybe the Airbnb you have in mind is <a href="https://www.homewayre.com/blog/-6-family-fun-spots-in-allentown/">perfect for a family</a> stay. If you hope to attract those looking for a unique family vacation experience, be sure your rental is located near plenty of family-friendly activities and attractions. Showcase petting zoos, nature hikes, and swimming venues. Highlight all the best places to eat, with kiddie menus included. And be just as welcoming to the littles as you would be to the adults in the group.
Merchants Square Model Train Museum
DaVinci Science Center
Coca-Cola Park
Airbnb in the Poconos
One of the best areas to consider buying a rental space is the Pocono Mountains. Short-term rental investors can <a href="https://www.poconomountains.com/about-us/research-travel-impacts/">always find resources</a> outlining the latest tourism statistics, terms for the various townships and boroughs in the region, and municipal requirements online. But with so much to offer, from recreation and dining to scenic adventures and history, owning an Airbnb in the Poconos is a great investment, no matter how you do the math.
People vacation to <a href="https://www.homewayre.com/blog/lakefront-real-estate-in-the-poconos-6-things-you-need-to-know/">the Pocono Mountains</a> year-round for skiing in the winter and water recreation in the summer. Zip lining, bike trails, dining, and wildlife adventures call to vacationers every year. You can capitalize on this gem of a region by investing in a rental property those travelers would love to book!
Find cottages and cabins perfect for hosting a rustic experience. Get even more off-the-beaten-path with tent sites and camping structures in the woods. Or you could instead go with the more traditional and upscale offering with a short-term stay in a cozily furnished home or posh condo setting. Whatever you choose to buy, remember, it’s the experience you’ll be advertising, not so much the dwelling itself. So make sure the area and the stay are appealing with something fun, unique, and inviting.
Types of Airbnb Properties Guests Love
There are plenty of property types, including structures and layouts, that can be attractive to Lehigh Valley tourists ongoing. Ideally, your guest stay should have something unique to offer, separating it from other rental properties and hotels in the area. Don’t discount non-traditional structures, either.
Check out all the different categories of properties guests can search for on Airbnb. When you buy your space, have an idea in mind about which category your property would fall into for guests searching for Lehigh Valley experiences.
Lakefront
National parks
Cabins
Islands
Camping
Tiny homes
OMG!
Arctic
Amazing pools
Design
Surfing
A-frames
Caves
Amazing views
Earth homes
Tropical
Bed & breakfasts
Luxe
Iconic cities
Countryside
Castles
Farms
Shared homes
Barns
Golfing
Chef's kitchens
Mansions
Beach
Historical homes
Boats
Campers
Cycladic homes
Windmills
Vineyards
Casas particulares
Off-the-grid
Skiing
Shepherd's huts
Houseboats
Ryokans
Beachfront
Minsus
Grand pianos
Treehouses
Desert
Towers
Yurts
Domes
Containers
Creative spaces
Trulli
Riads
Dammusos
Ski-in/out
Lake
Consider <a href="https://www.homewayre.com/blog/why-the-best-real-estate-advice-ever-from-your-non-agent-friend-is-wrong/">these insights before buying</a> your Lehigh Valley Airbnb. The key to finding the best places to buy is recognizing the marketing potential of the experience. And there is, as you can imagine, no shortage of unique experiences to be had in the iconic, fun, and adventure-loaded Lehigh Valley.
The second most important factor in buying the best place for Airbnb is having the right professional partner in your corner. Let<a href="https://www.homewayre.com/"> Homeway Real Estate</a> be your guide in any real estate purchase or investing you have planned if you want a Lehigh Valley expert at your side. Our teams can provide insights into the latest market trends and local hotspots. And we’ll help take the investment guesswork out of buying your first or your tenth Airbnb property in the Lehigh Valley.2022-08-03T07:00:00-07:002022-08-02T07:41:29-07:00Alex Lopeztag:homewayre.com,2012-09-20:972016 Pieces of Bad Real Estate Advice to Never Listen To<img src="https://assets.site-static.com/userfiles/2131/image/New_Door_Blogs_2.jpg" width="1920" height="1080" />
With a grain of salt, right? That’s how you approach any type of advice you get from friends and family. And it makes sense because these are people in your circle that you love and trust. They would never steer you in the wrong direction. But sometimes, when the advice you seek is really important, you need to make sure the suggestions you follow are legitimate. Like, when you’re buying or selling a house, where hundreds of thousands of dollars and 30-year commitments are at stake, mistakes can be costly and significant. And heeding the <a href="https://www.homewayre.com/blog/why-the-best-real-estate-advice-ever-from-your-non-agent-friend-is-wrong/">wrong piece of advice</a> could ruin your experience altogether.
Yes. Getting advice from friends and family who’ve recently been through the home buying or selling journey is helpful. But before you take any action, based on anyone’s suggestions, compare those tips with this list. We’ve put together the pieces of bad real estate advice you should cross off those lists. These are the worst suggestions you’ll want to avoid, no matter how proven the advice-givers say they are. Following these pointers will be utter mistakes.
1. Find a House, Then Worry About Lending
You might have some people in your circle suggesting that you need to act fast in finding a house to buy because the market is so active right now. But putting the lending cart before the home-buying horse is a bad idea. First, find a lender and get pre-approved or pre-qualified for a mortgage. Doing so will ensure you stick within your budget and prevent you from wasting time in the house-hunting phase without having your <a href="https://www.bankrate.com/mortgages/first-time-homebuyer-mistakes/">finances in order</a>. It’s true that the transactions are moving quickly these days. But the best way to keep up with the new pace means handling your mortgage details first, then finding the dream house.
2. Just Talk to Your Bank, No Need to Shop Around for Financing
You might get real estate advice about financing, like the notion that working with your local bank is best. And while those local banking relationships can certainly help, it’s still important that you shop around for the best rates and lending terms before you decide. Securing a few points better can save you thousands over the life of a mortgage. So, it’s always worth shopping around and exploring your options with online lenders and other sources before committing to your traditional bank.
3. Just Use Your Savings for a Down Payment
If you have money in the bank, that’s plenty for your down payment. Some people adhere to this advice, only to completely deplete their savings. Then when other costs come up, like the home inspection, the appraisal, title work, and moving expenses, they’re strapped. When evaluating your finances, don’t just make sure you have that typical 20% down payment in savings. Make sure you also have enough to see through the remaining costs associated with buying a home. And to really cover your financial bases, don’t make a move until you have enough to cover your down payment as well as an additional three to six months of living expenses in an emergency reserve fund.
4. Your Offer’s Accepted, Go Ahead and Buy New Furniture Now
You’re keenly aware of the importance of maintaining a healthy credit score for purposes of qualifying for a mortgage. But you might hear the advice that implies, once the offer has been accepted and your loan is being written, it’s ok to start making significant purchases elsewhere. Most financial advisor professionals will tell you that’s bad advice. Rushing out to borrow more money or spend loftily on big purchases could still offset your debt-to-income ratio and hinder your borrowing power. Some loans have fallen apart altogether because of frivolous spending. It’s always best that you wait until your mortgage is completely finalized and your home purchased before making other significant purchases.
5. Be Prepared for a Bidding War
It’s a vastly <a href="https://lendgo.com/blog/worst-real-estate-advice-people-heard/">different real estate market today</a> than it was five or ten years ago. And your well-intentioned friends and family might be telling you to prepare for a back-and-forth bidding war when putting an offer in on a house. There is stiff competition right now. But the bidding war tactic can quickly backfire if you’re not careful. Rely instead on the offer-making advice from your trusted agent professional instead and do your own homework. Extend a reasonable offer that makes sense, and that will inspire sellers to accept right away. Too much negotiating or low-balling offers can be frustrating, causing sellers to look elsewhere for the right buyer.
6. Always Find the Biggest House You Can Afford to Grow Into
Yikes. This is bad real estate advice that could really cost you. When you’re looking at various properties, be mindful of your budget that you’ve properly planned for by getting pre-approved. And just because you’ve been approved for $500,000 doesn’t mean you have to buy the biggest house you can get at the highest end of your limit, either. Remember, the bigger homes will come with more expensive taxes, higher utilities, and more maintenance. If you can check off your must-have list with a smaller property costing less than your max borrowing power, it’s going to <a href="https://www.homewayre.com/blog/the-best-real-estate-investing-advice-ever-for-first-time-home-buyers/">be a smarter buy</a>.
7. Don’t Bother Asking the Sellers to Fix Things
You’ll be hard-pressed to have a home inspection without a few issues arising. And that might be why you get the advice to not worry about asking the seller to fix things. But it would be a serious and expensive mistake to let everything go. You’re not going to make the seller mad, especially if what you’re asking for is entirely reasonable. More often than not, sellers know what problems are going to show up during an inspection. Just be smart about asking for fixes or price reductions, like to accommodate an HVAC system or roof replacement. You don’t have to nickel and dime list every issue. But don’t move forward with the purchase if you can get at least some accommodations for costly problems that you’ll inherit when you purchase the property.
8. Listing For Sale by Owner Will Help Save You Money
With so many people buying and selling these days, you might hear <a href="https://www.homewayre.com/blog/what-does-a-real-estate-agent-do-for-you/">real estate advice</a> like this, suggesting selling on your own will be the cost-saving way to go. Don’t believe it. Listing on your own requires more know-how than you might think. A sign in the yard is only the first step. Dealing with walkthroughs, phone calls, and questions alone will rob your nights and weekends. Then there are scams to look out for, not-so-serious buyers, and negotiations to handle. Drafting contract paperwork, understanding the real estate terms and managing the details require more expertise than you might have. And that’s why it’s best for both parties to have agent representation.
9. Zillow ‘Zestimates’ Are a Reliable Way to Price Your Listing
General overviews and average ranges are great with sites like Zillow. But they’re not intended to be hard-fast price points to base your listing on entirely. If you follow this real estate advice and just stick with one valuation tool, you could inadvertently over or underprice your home. Zillow and other sites won’t have the up-to-date intel about the condition of your home or any recent repairs or investments made. That’s why relying on the <a href="https://www.homewayre.com/blog/how-to-buy-a-house-in-a-competitive-market/">help of a professional agent</a>, who can help you evaluate the specifics of your home, as well as compare the going listing prices of similar properties, is the best way to go.
10. The Only Time to Sell Your House Is in the Spring
There are certainly tips for selling your house at different points throughout the year. But it doesn’t mean there’s only one season worth waiting for to list your house. Spring might just be the most popular season of the year for selling real estate. But homebuyers are out there all year long. And your property might present different or unique features worth promoting anytime. It’s what makes your home special that makes it marketable, not the season. When you’re working with a professional real estate agent, they’ll tell you they’re more than capable of selling a home, whether it’s 100 degrees or 10 degrees outside.
11. Don’t Worry About Making Improvements Before You List
This is some of the worst real estate advice for anyone preparing to sell. Yes, you can probably find a buyer right now willing to purchase your property as-is. But if you can get a few additional thousand dollars, wouldn’t you want to do what it takes to do so? Not all home improvements are expensive. And there are plenty of easy, DIY upgrades you can do that won’t break the bank. Your agent can guide you on what areas of the property need to be addressed. It could just be a little yard maintenance and touch-up paint. But anything you can do to improve curb appeal and first impressions or to address potentially deal-breaking issues is worth exploring.
12. All Agents Do the Same Thing; Just Pick One
Not all agents are created equal. Do your homework, and don’t settle with <a href="https://www.homewayre.com/blog/7-real-estate-horror-stories-that-could-have-been-avoided-with-an-agent/">any real estate professional</a> who has a business card. Ask about years of experience in the Lehigh Valley. Inquire about communication channels and strategies for marketing your house for sale. And regardless of which side of the real estate transaction you’re on, having the wrong representation will be costly. Take your time and find a qualified agent you’re comfortable with and generally like.
13. Let Their Agent Represent You
If you’re not getting that last round of advice, you might instead hear this one. And it may be some of the worst real estate advice of all. You work with an agent because you need someone knowledgeable to represent you and your financial interests during negotiation, discussion, and even at closing. As a homebuyer, when you choose to work with the listing agent of the property you’re looking to buy, that agent may be more loyal to the sellers. Even if an agent offers to help you, take the time to find someone different.
14. Save Yourself the Money and Headaches by Avoiding the Home Inspection
Go ahead and pass on <a href="https://www.beverlyhillsmagazine.com/7-worst-real-estate-advice-youll-hear/">the home inspection</a>. I have a cousin who’s a contractor who can help fix things if need be. Despite the best intentions, your friends could be ill-advising you in a big way. A home inspection may cost you $300 to $700. But it’s peace of mind you need to ensure you’re making the smartest purchasing decision. If there’s a major complication, like a failing foundation or major renovation required, that could cost tens of thousands. And it’s a pitfall you can only avoid by booking the home inspection.
15. Go Ahead and Skip the Title Insurance
Unfortunately, this piece of bad advice comes up more often than it should. And if you’re buying a property from people you know or feel confident about the sellers, you might be inclined to skip the title insurance. However, having title insurance is worth its weight in gold. This coverage ensures that you’re protected should there be legal concerns with the property down the road. And claims are rare, but they do happen. They’re downright nightmares if you don’t have title insurance, too. So, when they ask you at closing, insist you get the coverage.
16. Don’t Worry About the Final Walkthrough.
Final walkthroughs usually occur right before closing. It’s your opportunity to lay eyes on the property one last time before taking ownership as a homebuyer. And with all the other steps and to-do lists, you might be advised that this step isn’t necessary. Do the walkthrough anyway. If the sellers have fixed or repaired things, you’ll want to know. Alternatively, if there is new damage, maybe from the seller’s pets or a recent storm, those will play into your consideration since they represent new costs. Take the time to do the final tour of the property to solidify your decision to buy. You’ll be more confident at the closing table, too.
It's really a great idea to talk with friends and family to seek real estate advice. Much of what they experience can be helpful in preparing for your journey. But if any of these tidbits of advice come up, know to steer clear. They could lead you down a very different path, costing time, effort, and money. Take those suggestions with a grain of salt. And when you believe you’re ready to get serious about selling or buying, start your agent search with <a href="https://www.homewayre.com/blog/category/buying-a-home/">Homeway Real Estate</a>. Our team of professionals knows the Lehigh Valley market and all the nuances that lie ahead on your journey. Let one of our agents represent you and help with actionable and proven advice for the absolute best results, no matter what your real estate goals are.2022-07-27T07:00:00-07:002022-07-25T12:24:23-07:00Alex Lopeztag:homewayre.com,2012-09-20:9661The Best Real Estate Investing Advice Ever for First-Time Home Buyers<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_28.jpg" width="1920" height="1080" />
This is it. Put aside just about everything you think you know about real estate investing. First-time home buyers get inundated with advice, like “do this to your house before you list” and “you don’t need an agent in this market.” Before you start putting those nuggets of advice in motion, including “buy a house in this neighborhood, not that one,” keep reading. We’ve siphoned all the very best tips and expert-driven suggestions into one list. Forget <a href="https://www.homewayre.com/blog/why-the-best-real-estate-advice-ever-from-your-non-agent-friend-is-wrong/">what your Uncle Harold told you</a>. He means well, as do others who are excited for you on this journey. But this is the absolute best real estate investing advice first-time home buyers want to see.
Choose the Area First
You can waste a ton of your valuable time looking at all the wrong homes for sale if you’re not careful. And as beautiful as the entire state of Pennsylvania is, you don’t really want to go driving it in its entirety looking for a house. The first step to narrowing your search requires a little homework and research to decide where you want to live. Maybe you already have a Lehigh Valley city in mind, or even a neighborhood you find to be perfect. But don’t make any final home-buying decisions until you’ve considered everything about the community, including:
Local Amenities
Commute Times to Work
Economic Development
School Districts (if applicable)
Parks & Recreation
Farmers Markets & Festivals
Nearest Airport, Train Station, or Mass Transit
Dining & Entertainment
Retail Shopping
Parking Availability
Average Property Taxes
Determine with 100% Certainty That You’re Ready for a Mortgage
If you’re <a href="https://www.forbes.com/advisor/mortgages/real-estate/buying-your-first-home-ways-to-be-prepared/">buying your first home</a>, you’re going to want to be absolutely certain that you’re financially ready to commit to a home loan. It’s a commitment that far exceeds loans you’re likely used to, like with a car. The average mortgage stretches anywhere from 15 to 30 years. And homeownership can be expensive, with property maintenance and care on top of that monthly mortgage payment. Make sure you’re ready on paper and ask yourself these questions:
Is my income stable?
Do I have enough money in reserves to cover three months of expenses?
Am I ready to live here, in this area, for at least five years?
Maintain Your Credit Strength
Once you’re sure you’re ready, it’s time to get serious about maintaining your credit rating. Now’s not the time to rush out and buy new furniture or to get a fresh loan for a new car. Don’t rack up those credit card bills, either. Offsetting your debt-to-income ratio could impact your borrowing power in a negative way. And there may be additional costs ahead, like home inspections, closing costs, and title work. Right now, before you buy your first home, you need to make sure bills are paid on time, and your finances remain healthy. Otherwise, you could be set back in securing a mortgage.
Explore First-Time Home Buyer Assistance
Because you’re buying a home for the first time, there are <a href="https://themortgagereports.com/33553/complete-guide-to-down-payment-assistance-in-the-usa">various assistance programs</a> available to you. You won’t necessarily qualify for all of them. Some are based on income, others on location, for example. There are federal, state, and regional programs worth looking into to see if you’re eligible. And there are grants to help with down payments and closing costs. Even if you have your finances in order, look to take advantage of the help for which you might be qualified. Here are a few program types worth exploring.
Grants: Gifted funds that never have to be repaid
Loans: Primary and secondary mortgages available
Deferred loans: These mortgages come with deferred payments that only have to be paid upon a move, sale, or refinance
Forgivable loans: Mortgages that are forgiven over a predetermined number of years (usually five, but maybe up to 20). These only require repayment upon a move, sale, or refinance too early
Shopping Mortgage Rates & Getting Pre-Approved
You might already be checking around for the best mortgage rates. But it’s important to really get the best rate you can. <a href="https://www.rocketmortgage.com/learn/first-time-home-buyer-tips">Freddie Mac shared</a> that home buyers who got at least one quote from an additional lender saved an average of $1,000 over the life of the mortgage. Those who sought up to five more rate quotes can expect to save an average of $3,000. It pays to find the best rates. Shopping around for the right lender will also help you determine point schedules, lenders’ fees, and closing costs, too.
And getting pre-approved for your mortgage is a must. Choose the lender and get the mortgage pre-approval or pre-qualification so you know precisely what you can afford to buy. The mortgage pre-approval is a less formal process whereby a lender might ask a few questions about your income and provide you with a ballpark idea of what you can borrow. A pre-qualification is more in-depth and formal, based on documents you provide your lender to determine a more precise mortgage amount. In either scenario and with your lending partner standing by and a pre-approval or pre-qualification letter in hand, you have stronger offering power. It also provides you with a budget you can use when you start looking at available properties for sale. Additionally, there'll be fewer surprises as you proceed with the first-time purchasing journey. These are the types of loans you can look to secure.
Conventional loans (most common type of loan, usually requiring 3% down)
FHA loans (provided by the Federal Housing Administration)
VA loans (backed by the Department of Veterans Affairs)
USDA loans (offered by the U.S. Department of Agriculture)
House-Hunting 101: Work with a Real Estate Agent
Now comes the fun part. With your finances in order, you can start looking for houses to buy. With your budget in mind, start your lists. What amenities are downright deal-breakers for you? Alternatively, you can create a separate list of home features that might be nice to have but won’t necessarily make or break your decision. Square footage and the number of bedrooms might need to be precise. But having a privacy fenced backyard would be considered a bonus perk.
Once you know what you need in your new home, along with what you’d like, you can be more efficient about looking at available listings. Don’t try to browse homes on your own. Sure, it’s easy to keyword search your way through the online sites. But scheduling and making offers are going to be far more complicated. A trusted real estate agent,<a href="https://www.homewayre.com/buyers/first-time-buyers/"> like one of the Homeway professionals</a>, can help you identify and line up houses to see. Having a partner to help you through everything else, from offer to closing, is a must.
Make a Strong Offer the First Time
Today’s real estate market is very different from years past. It might make sense to low-ball an offer and hope to bring down the listing price of your dream home. However, with so many buyers ready to buy, a weak offer from you won’t fly. Here are a few strategic pointers to keep in mind when you’re ready to make an offer on your first dream home.
Don’t put in an offer unless you’re 100% committed to buy.
Earnest money signals your seriousness about the offer.
Trust your real estate agent’s judgment on what is considered a fair offer.
Loosen up on any contingencies if you can for an easier-to-accept offer.
Always Get the Inspection
When you’ve found the absolute home of your dreams, one that you love and seems perfect, get the inspection. No matter how confident you are that the structure is sound and everything’s safe, have a Certified Professional Inspector come in and take a look. You could uncover repairs or maintenance to use as negotiation tools. It’s also possible that you uncover a more discrete defect that proves to be a deal-breaker. As excited as you are, don’t make this decision on emotions alone. Get the inspection every time.
Get Ready to Spend More Money
First-time home buyers always hear advice like, “stick within your budget.” But many novice home buyers presume that just applies to the purchase price of the home. Don’t get blind-sided. Buying a home is going to cost you beyond the mortgage and down payment amounts. As previously mentioned, the home inspection will come out of your pocket and will usually run between $300 and $700. Don’t forget, too, that there will be an appraisal fee, pest inspection fees, escrow fees, title insurance, and moving costs. Those all add up fast, so make sure you’re ready.
Be Flexible and Expect Road Bumps
No matter how genius you are about your loan or how well prepared you believe you are for this first-time home buying journey, expect hiccups. There will <a href="https://www.homewayre.com/blog/7-real-estate-horror-stories-that-could-have-been-avoided-with-an-agent/">almost always be a delay</a>, a hard-to-reach seller, a hidden road bump. Expect this journey to be one with turns along the way. And it's all the more reason to have an experienced agent by your side who’s been through these complex processes many times before. Remain flexible with your expectations and timing. And remember, it’s normal to be excited or anxious. It’s the biggest purchasing decision you’ll ever make.
Make Copies and Always Ask Questions
Here’s another piece of advice for first-time home buyers. Make copies of every transactional document, digital or paper, for your own records. With so many hands on a typical real estate transaction, you’ll have documents coming at you from every direction. Keep everything together and make sure you’re aware of every step.
And listen, no one expects you to know or understand everything. So, don’t hesitate ever to raise your hand and ask for clarification. Whether it’s a term you’re unfamiliar with or a process that needs a more detailed explanation, you have a right to answers. Anyone not willing to provide transparent answers or direction is not working in your best interest.
Print this list of the best first-time home buyer advice. These are the tips that can make the process easier to navigate and will set you up for a more positive buying journey and experience. Let <a href="https://www.homewayre.com/buyers/">Homeway Real Estate</a> be the first call you make when you’re ready to start house hunting in the Lehigh Valley. Our team works <a href="https://www.homewayre.com/blog/your-investors-guide-to-the-pocono-real-estate-market/">with first-time investors like you</a> and has years of transactional experience to make your journey as seamless as possible.2022-07-20T07:00:00-07:002022-07-18T07:28:05-07:00Alex Lopeztag:homewayre.com,2012-09-20:9585Why ‘The Best Real Estate Advice Ever’ From Your Non-agent Friend Is Wrong<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_27.jpg" width="1920" height="1080" />
When you’re buying or selling a Lehigh Valley house, it’s a big commitment and a complex process, which usually comes with tons of questions along the way. You’ll probably reach out to friends and family for advice, especially from those who’ve been through it before. But take those nuggets of advice with a grain of salt. While your loved ones may have the best intentions in sharing their suggestions, if you’re getting pointers from someone other than a <a href="https://www.homewayre.com/blog/your-investors-guide-to-the-pocono-real-estate-market/">well-versed real estate agent</a>, you could be venturing into troubled waters. Here’s why the “the best real estate advice ever” from your non-agent cohorts is the wrong way to go. If someone advises you of these tips, beware.
You Won’t Need a Real Estate Agent in Today’s Market
The Lehigh Valley real estate market is incredibly hot right now. New listings are bursting online every day, and homes are selling in just a matter of days. You aren't going to need a real estate agent to sell your house with so much action. And when you sell or buy on your own, you could save thousands in commissions! It sounds like pretty great advice, especially the part about saving thousands. But when the market is as competitive as it is today, you actually need the sound advice and negotiating skills of a seasoned professional more than ever. Going it alone, FSBO, or trying to buy, you could find yourself making other more costly mistakes, like overpricing, underbidding, or missing key negotiables. Real estate agents handle these transactions for a living and know more about getting deals done than anyone else. And the stakes are even higher in a competitive market. So, don't try to go it alone.
Your House Is Just Fine. Let the Buyers Make Their Own Changes
This advice may be valuable in some situations. Or your non-agent friend is guiding you toward more listing headaches. It may not make sense to spend $50,000 on <a href="https://www.huffpost.com/entry/worst-advice-realtors_n_5ba3fb2de4b069d5f9d141b2">a kitchen renovation</a>. But if you want to get the best offers and sell your home quickly, you’ll need to explore making a few general improvements wherever necessary. Maybe it doesn’t make sense to replace all your windows. But it can make sense to invest a few hundred in replacing worn or stained carpeting. Instead of a kitchen remodel, maybe a few subtle upgrades like the cabinet hardware or replacing an aging stove is a good idea. The point is a reputable real estate agent can help you decide what updates are worth making to see the results you want.
Don’t Spend More on a Property Than You Can Afford
That sounds like pretty savvy advice in any situation. But it’s the perspective that’s all wrong. Instead of trying to determine the maximum amount you can spend on a home or the biggest loan you can afford, you should be asking yourself, “what’s the least amount I can invest and still be happy?” When you work with a real estate agent, you’ll have a sounding board of solid advice to help you determine what your must-have amenities are, along with the nice-to-have features. From there, you can carve out what you want and need from a property and try to spend the least amount of your hard-earned money to get there.
You’re Selling. No Need to Make That Mortgage Payment
Uh, no. Don’t listen to anyone who suggests this. Even if you’re only a few short days away from the closing date, a lot can happen, and deals can unwind quickly. Maybe your buyer suddenly loses his job and, subsequently, his loan. What if a major storm rolls through and significantly damages your home, requiring major repairs and insurance claims? The experts in lending and real estate alike will all tell you to make that mortgage payment, no matter what. Not making the payment or facing late payments will be damaging to your credit and could impact your borrowing power in a negative way.
Don’t Worry About Fixing Cosmetic Things
Unfortunately, this advice is not only bad, but it could also cost you money. Sure, replacing a stained ceiling tile might seem like a hassle and not worth handling. But first impressions and curb appeal will determine whether or not buyers become interested. The smaller, cosmetic fixes, like touch-up paint, fresh flowers on the porch, and a little tree-trimming, can go a long way with first impressions. Deferring the property maintenance steps will only impact your bottom line and usually result in a longer time on the market. So, spruce things up a bit, patch the drywall hole, paint the trim, and hang the porch swing. You’ll reap the rewards in better offers.
Do All Your Renovations Before You Move into Your New House
It might not sound like bad advice. After all, you don’t want to be living in a full-blown construction zone, right? However, it’s worth considering a more gradual and organic approach to home renovations in your new house. A lot of DIYers, contractors, and <a href="https://www.apartmenttherapy.com/buying-a-home-bad-advice-266434">real estate agent professionals</a> all suggest moving into the space first, then exploring remodel projects. If the changes are largely cosmetic, living in the home first could present new ideas. You can get a better feel of the space and then make decisions about walls that have to go or design changes. Some of the plans you have now might not be needed at all. And you can avoid making unnecessary renovations and wasting money.
You Don’t Need to Get Title Insurance
If anyone ever suggests you skip the title insurance, they’re clearly not in the loop. Title insurance is an absolute must-have and provides protection from previous legal issues that may be involved with your new home’s prior ownership. Skipping it, even if you’re only refinancing, is strongly discouraged. Get the title insurance and save yourself from potential legal and more costly issues that can potentially blindside you later.
It’s Not Going to Hurt If the Seller Stays in the Property After Closing
The deal’s done, right? You need a month or so to get your moving arrangements in order, and so does the seller. Is it really going to hurt to let them stay in the property beyond the closing date? Yes, it actually could. It might seem amicable, especially if you and the sellers have a great rapport and want to handshake on good faith. But don’t do it. Post-closing possession, that’s the official term for allowing sellers to remain on-site, can expose you to a host of serious problems. What if the seller causes damage to your property? What if there are some nefarious motivations you’re not aware of, and the seller purposely sabotages the property? What if someone slips and falls, coming after you for damages? It’s just best to enforce a clean break after the closing date and insist the sellers vacate to avoid these potential what-if scenarios.
Save Yourself Some Money. Don’t Worry About the Home Inspection
A home inspection is for your benefit, not anyone else’s. The average cost is between $300 and $500, depending on the condition, size, and age of the home. That’s peace of mind and well worth the investment. A home inspection report, even on new construction, can turn up a host of complications you can’t see. Evidence of a squirrel’s nest in the attic, a slow drip from a hidden pipe, a bathtub that doesn’t drain, or even evidence of fungal growth can all weigh on your decision to buy. And the report will provide you with a list of things to watch out for, including potentially aging shingles or water heaters. Don’t skip the home inspection. A few hundred dollars to prove everything is in order is just as valuable.
Lowball Your Offer by at Least X Dollars
You probably hear this a lot, and the dollar amount will vary based on who’s doling out the advice. But beware. Lowball offers can result in losing out on the deal. If it’s too low, your sellers may be insulted and simply refuse to work with you. Don’t jeopardize the deal and rely on the <a href="https://www.homewayre.com/blog/what-does-a-real-estate-agent-do-for-you/">advice of a real estate agent partner</a> who understands demand, market pricing, and negotiations. Competitive offers are achievable without lowballing your way right out of buying your dream house.
Your Loan’s Approved. Go Ahead and Start Furniture Shopping
You know that it’s important to preserve your credit score and standing during the loan application process. So, when your non-agent friend says, “your loan’s approved, it’s ok to spend money now,” you might be inclined to agree. However, it’s no time to relax and start shopping for new furniture. Some lenders monitor credit right up until closing, meaning if you start impacting your debt-to-income ratios too soon, you could jeopardize your loan. And remember, deals can fall through at the last minute. If you start overspending now, you could be in a worse borrowing position later.
Start High. You Can Always Drop Your Listing Price Later
In the <a href="https://www.homewayre.com/blog/how-to-buy-a-house-in-a-competitive-market/">competitive market right now</a>, you don’t want to be “testing the market” with out-of-control listing prices. Don’t price yourself right out of a home sale because your cousin said houses are selling right now way higher than normal. The listing price for your property will depend on specific criteria, including similar properties listed in your neighborhood. But other factors will contribute to a realistic listing price, too, like age, condition, updates, and location. Here's the other caveat. If you overprice now and start reducing the price later, potential buyers will notice. And instead of being interested, they might presume there’s something wrong with your house if you make significant reductions. Let a seasoned professional help you determine the best starting price for your home, and don’t guess your way through it.
Thinking About Selling? You Better Do It Fast!
Don’t let anyone, no matter how well-intentioned they are, pressure you into prematurely listing your home. Take the time now to carefully explore your options and chart a course for when and where you’ll move, what will need to be done with the property before listing, and identifying professional partners you’ll need to get it done. You might be in a hurry to sell your home quickly, but you’ll still want to get the best offers. And you’ll still need to find another place to live, which means securing a loan and house-hunting yourself. Stay on your timeline and terms, and be methodical about creating your to-do lists. A lender, a real estate agent, and maybe even a real estate attorney can guide you to a proper listing, quick sale, and best results.
Let Their Listing Agent Represent You as the Buyer
This can come up more often than you think, especially if you’re only casually looking for a new home to buy. If you find a property you wish to buy but don’t have an agent to represent you as the buyer, you could be tempted to ask the listing agent to help facilitate on your behalf, too. This double-dipping can be helpful if you know the agent well and trust they’ll represent your interests just as much as the seller’s interest. However, if you don’t know the listing agent, they’ll be more than happy to help you but still may have allegiances to their listing clients. It’s best that you go and find a dedicated professional to represent your interests.
You Can Do Your Own Open Houses
Nope. There are <a href="https://www.homewayre.com/blog/7-real-estate-horror-stories-that-could-have-been-avoided-with-an-agent/">horror stories from homeowners</a> who thought they’d promote and host their own open houses, only to encounter big trouble. Inviting strangers into your home requires supervision, a proper strategy, and vetting. People will explore your jewelry boxes and medicine cabinets when you’re not looking. And potential burglars will often use open houses to case the place. Real estate agent professionals know how to spot these bad apples and have precise strategies for managing the open house. Don’t try to go it alone and get the professionals to help.
My Friend Just Got Her Real Estate License. Use Her
As much as you’d love to help out a friend of a friend, buying or selling a home requires expertise. Now’s not the time to rely on the advice or foresight of a novice agent who dabbles in real estate on the side. You need someone with years of experience buying and selling homes in the Lehigh Valley. It’s your money and your home on the line. Don’t trust those complex decisions with anyone other than an agent partner you trust has the right knowledge for the job.
Check Out This Algorithm to Help You Make an Offer
Unfortunately, there’s no real magic wand solution to making an offer on your dream house. Counting cards in Las Vegas won’t be helpful either. You might get advice from your non-agent friend about tips and tricks and <a href="https://www.wallstwatchdog.com/money-career/worst-homebuying-advice-ever-received/">math-based algorithms</a> but beware. The market fluctuates daily, and estimates can change on a dime. Data from the local region is dynamic, and how homes are priced won’t always align with those hush-hush, greatest algorithm tips. The best way forward involves making each in-the-moment decision based on the relevant data of the moment. And only an expert agent can help you understand and navigate those ever-changing figures.
Again, there’s no harm in reaching out to family and friends for advice when you’re ready to sell or buy a house. But don’t be so quick to adopt all the suggestions you receive. Protect your investment and position yourself for the best real estate transaction possible by having a licensed expert on your side. Homeway Real Estate can be that Lehigh Valley partner whether you’re buying or selling. <a href="https://www.homewayre.com/buyers/">Let our team of pros</a> provide you with the soundest advice in today’s volatile market. You can then feel confident that you’re in touch with the latest trends, the best financial position, and have the best representation to achieve the most ideal results you want. 2022-07-12T07:00:00-07:002022-07-11T08:31:39-07:00Alex Lopeztag:homewayre.com,2012-09-20:95407 Real Estate Horror Stories That Could Have Been Avoided With an Agent<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_26.jpg" width="1920" height="1080" />
You might be thinking that with a real estate market this hot, you don’t <a href="https://www.homewayre.com/blog/what-does-a-real-estate-agent-do-for-you/">need a real estate agent</a> to sell your home. Think again. Now more than ever, anyone looking to buy or sell a house in the Lehigh Valley needs expert representation. Negotiations are tougher. Deals happen faster. And the complex layers of paperwork are still challenging. Having a real estate agent partner in your corner ensures the most seamless of transactions. You won't be able to avoid every hiccup or issue with the buying process. But you will, however, definitely avoid these examples of real estate horror stories that could have been avoided with the right agent.
1. The Hovering Seller
In one ‘<a href="https://www.realtor.com/advice/sell/fsbo-horror-stories/">For Sale By Owner’</a> real estate horror story, the homeowner thought it would be a piece of cake to sell his house. He was careful to clean around the house and manicure the yard. And with his sign out front, he started getting calls asking for convenient times to see the home. He was so eager and excited that one of these showings would translate to an official offer. But he made one critical mistake that turned off buyers. He stuck around during showings.
Acting like what he thought was a good real estate agent, he followed potential buyers from room to room, pointing out features of the home and added storage options. He thought he was being helpful. No offers came through. His hovering nature had been a turnoff.
Lesson Learned: Having a real estate agent demonstrates to buyers that you’re serious about selling. And the right agent will chaperone showings the right way, without hovering, but providing a layer of professional assistance, so buyers feel comfortable entering into the transaction.
2. The Overpriced Listing
In another real estate horror story, one couple decided to put their home on the market themselves, just to see what kind of offers came in to buy. But making another key FSBO mistake, the couple intentionally overpriced their property, thinking it was a smart move. With so many homes selling in their neighborhood, they were confident the offers would start coming in soon. But instead of being a savvy decision, overpricing their listing only deterred potential buyers altogether. People weren’t even considering their home.
Lesson Learned: Real estate agents are professionals who understand the local market and can help sellers put an aggressive yet realistic price tag on their properties. <a href="https://www.homewayre.com/blog/how-to-buy-a-house-in-a-competitive-market/">From market analysis</a> to compensating for the home’s condition, an agent can help you list with the best price that attracts buyers and financially meets your needs.
3. Nosey Ned Rummages Through the Cabinets
Another FSBO nightmare you’d like to avoid involves the “nosey Ned.” A couple in Oregon shared their real estate horror stories. They took the FSBO route in an attempt to save some money. The husband and kids went out for the day so the wife could host an open house without distractions. She greeted guests at the door and allowed them to tour the property themselves. She was careful not to hover, like in the last horror story. But in this tale, something worse happened.
A man had come to view the home, and just as she did with the others, the wife greeted him, pointed him in the direction of the home’s interior, and welcomed him to look around. It wasn’t long before the wife realized this man had practically disappeared. When she went to check on his whereabouts, she found him in the kitchen, literally rummaging through the drawers and cabinets. He quickly bolted from the home upon being discovered. And sure enough, the wife came to the awful realization that he hadn’t been interested in the property at all. In fact, he had beelined to the medicine cabinet in the bathroom and made off with the family’s prescriptions.
Lesson Learned: There are scams and unsavory characters out there. Having an expert Lehigh Valley real estate agent in your corner means you have someone who can help weed out the unserious buyers and avoid criminals and scams.
4. The ‘Creative Investor’ Offer
This FSBO tale out of Colorado is a doozie. This seller, like the others in this collection of real estate horror stories, thought FSBO would be cost-saving. Unfortunately, it would be a decision that would actually cost him. And it was the aggressive and manipulative buyer that this seller hadn’t been prepared to face.
The seller was approached by a buyer who called himself a “creative investor” who offered to lease the man’s home for a period of five years. Then, this investor of sorts would agree to buy the property at a much higher price. And the seller, doing the math, realized by taking this offer, he’d have an extra $500 each month in cash flow and would then sell the property above market price. It sounded like an incredible deal, right? There was fine print allowing this “investor” to sublet the property. And for five years, the seller would essentially lose complete control of his own property.
Lesson Learned: Having <a href="https://www.homewayre.com/blog/why-do-i-need-a-real-estate-agent/">the right real estate agent</a> partner means having a savvy expert who can spot a bad offer and ultimately help you dodge a nightmare contract.
5. The Bad Appraisal
There are some details the average buyer or seller will not likely know about the process, including the appraisal. In this example of real estate horror stories, a woman had listed her beautiful townhouse FSBO. And it wasn’t long before she had an offer on the table with buyers who also happened to be financing with a VA loan. What this seller wasn’t counting on was the inexperienced appraiser who massively undervalued her property. Not only did that deal fall through, but that substantially below market value appraisal stuck with the property for every other VA loan candidate thereafter.
Lesson Learned: Real estate agents understand the market and lending requirements, too. They can guide your efforts when you’re listing to address appraisal concerns, VA loan guidelines, and in attracting conventional loan buyers, as well.
6. The Bully Buyer’s Agent
When you list your property as FSBO, you’re on your own for everything, including negotiating with buyers’ agents. One man, unfortunately, found out the hard way how uncomfortable and difficult it can be to contend with negotiations. This man opted to sell FSBO with his rehab property. And as he described, the buyer’s agent could “smell his inexperience” almost immediately. He went on to say the agent practically bullied him through the entire buying process. He was forced to make several repairs to the property and <a href="https://www.homewayre.com/blog/how-to-get-the-seller-to-pay-for-closing-costs/">negotiate off of the original listing price</a>. And just when he thought he was through the worst of it, he took yet another hit when the property appraised below the asking price.
Lesson Learned: When you work with a real estate agent, you have a representative who knows the negotiation dance and can represent your interests on your behalf. They can guide you to know what repairs make sense when negotiating the listing price is favorable and when to walk away from an unreasonable set of contingencies.
7. Key Takeaways from These Real Estate Horror Stories
People walking through your property and stealing things is a real phenomenon. Scam offers are presented every day. Bully buyer’s agents will do whatever they can to get the best deal for their clients. And homes sell for far less when there isn’t a professional representing your interest during negotiations. The key takeaway and real estate advice here is that no matter how lucrative the local real estate market is, it’s always best to work with an expert who can help. From marketing your home and property and finding the right buyers to negotiating deals and helping with paperwork, the right real estate agent can be your best option for a seamless transaction.
Before you take any steps toward an FSBO real estate horror story of your own, let the <a href="https://www.homewayre.com/sellers/">Homeway Real Estate team</a> be your guide. Contact one of our Lehigh Valley experts to ensure you avoid these nightmarish real estate tales and have the most positive home buying experience.2022-07-06T07:00:00-07:002022-07-05T10:25:25-07:00Alex Lopeztag:homewayre.com,2012-09-20:9470Your Investor’s Guide to the Pocono Real Estate Market<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_25.jpg" width="1920" height="1080" />
The <a href="https://www.homewayre.com/blog/how-to-buy-a-house-in-a-competitive-market/">real estate market these days in the Lehigh Valley</a> continues to be hot. And it's still a great time to consider a move. It’s just as lucrative to consider investing in area real estate opportunities if you have vacation property or second homes in mind as a rental property. And some of the most incredible real estate on the market right now is in the breathtaking and ever-popular Pocono Mountains.
With picturesque mountain scenery, over 100 lakes, and countless recreational activities, life doesn’t get any better than in the Poconos. Whether you’re on the lookout for a scenic place to retire or additional revenue sources with vacation property rentals, you need tips and suggestions for buying Pocono real estate. This is the investor’s guide you’re looking for, with all the answers to ensure you make the best purchasing decision.
Reasons to Consider Buying Real Estate in the Poconos
If you’re thinking about investing in Pocono real estate, you’re making a sound decision. The Pocono real estate market continues to be highly desirable for a number of reasons. Thousands of tourists flock to the area for summer and winter recreational activities. And even more Americans are looking to the Pocono Mountains for ideal places to call home as permanent residents.
The Poconos offers a quality of life you can’t easily find anywhere else. There is an abundance of dining, retail, culture, and amenities that are typically hard to find in other scenic and remote communities. If you’re considering a new real estate investment of any kind, here are a few more reasons why buying in the Poconos is a smart idea.
Incredible Investment Opportunities
Take advantage of the fast-moving real estate market to sell your existing home and move to the mountains. From remote cabins to sprawling lakefront homes, you’ll find properties to fit your budget. And considering the aesthetics of mountain living, you can have peace of mind knowing your real estate will continue to be highly desirable, presenting a significant return on any investment.
Great Vacation Homes
Instead of investing in the crazy-volatile stock market, consider investing in Pocono real estate vacation homes. You can rent out your property to vacationing tourists and generate additional income streams, too. With the popularity of the Poconos as both summer and winter hotspots, you can continue to see returns on your investment all year long if properly managed.
With hosts raking in nearly $19 million in revenue over the course of 2019
Scenic Retreats
If you’re searching for an ideal second home or permanent residence away from the hustle and bustle of the cities, you can find perfectly scenic retreats dotting the Pocono Mountains. Buying property here will provide you with the solitude you seek, whether it’s everyday living or just one weekend away at a time.
What to Know Before You Buy Pocono Real Estate
Once you’re convinced it’s time to start looking at Pocono real estate for sale, there are best practices to know. You don’t want to rush into purchasing an overpriced property. And you don’t want to begin your buying journey without first having a proper plan. Whether you’re looking for something quaint for use as a potential rental property or your forever mountain home, here are some investment tips to consider.
Identify Your Investment Goals
Sit down and establish investment goals first. If you’re making a permanent move, create a list of what you need in a new house, including size, amenities, <a href="https://www.poconorecord.com/story/business/real-estate/2022/02/21/average-home-prices-in-poconos-are-increasing-year-over-year/63433555007/">and price ranges</a>. Be mindful of daily commutes to work and do the math to estimate an affordable mortgage payment. If you’re investing in a second property or vacation home to rent, similar goals will need to be set. Look for marketable amenities that appeal to vacationers. Calculate your budget, consider taxes, and verify other rent rates in the area to help estimate your potential net operating income.
Find an Expert Lending Partner
You’ll want to get your finances in order before you make any decisions. And that will likely require a conversation with an expert lending partner. Gather your documents and explore <a href="https://www.homewayre.com/blog/why-get-prequalified-for-a-home-loan-before-looking-at-houses/">securing a mortgage pre-approval</a> before you begin visiting Pocono real estate for sale. Having a price range and pre-approvals in place will provide you with purchasing power for a more seamless transaction. And for those investors who may be interested in buying a property outright, talk with your trusted financial adviser to ensure you’re making the soundest financial decision for your retirement or investment portfolio.
Real Estate Agents Specializing in Pocono Real Estate
In addition to financial advice, you’ll want to partner with an expert real estate agent who knows the ins and outs of Pocono real estate transactions. Buying property requires certain nuances and knowledge that only local professionals will know. And a call to the <a href="https://www.homewayre.com/blog/what-does-a-real-estate-agent-do-for-you/">Homeway Real Estate team</a> will ensure you have just the investment guidance you need to find the perfect-fit property for you and your budget.
Frequently Asked Questions
Not all Pocono real estate transactions are alike. And based on our experiences with clients buying and selling mountain properties, there are a few frequently asked questions that come up the most. Rounding out this investor’s guide, these are some of those questions and the answers you need to take the next investment step.
Is Pocono Real Estate a Good Investment?
Yes! Based on recent years’ data, the Poconos officially earns a spot as one of the top markets for buying vacation homes. The Poconos counties are demonstrating a 16% year-over-year increase in sales. Historically, investments in the Poconos always recover, too, even when real estate markets experience fluctuations.
Is Lakefront Property Better?
You don’t need a lakefront property to see a return on your investment. However, <a href="https://www.homewayre.com/blog/lakefront-real-estate-in-the-poconos-6-things-you-need-to-know/">lakefront property in the Poconos</a> is usually the most coveted of real estate. Appreciation rates are phenomenal, demand remains consistently high, and there are a host of health and well-being benefits of life and vacations on the lake.
Do I Need to Get an Inspection on a Vacation Property?
Yes. Don’t presume a second home or vacation property is any different from purchasing a new forever home. Having a home inspector review the property before you buy can help you identify key areas of renovation or costly repairs. From the roof to the foundation, an inspection will reinforce your purchasing decision and help you avoid any serious money pits.
What Should I Expect to Pay for Pocono Real Estate?
Pricing right now can be all over the board. Small cabins in the Poconos will obviously be less expensive to purchase than two-story, four-bedroom homes. Check with your real estate agent partner to help you gauge the very latest in <a href="https://www.realtor.com/realestateandhomes-search/Pocono-Lake_PA/overview">listing price ranges</a> for Pocono Mountain properties. Depending on the area, as well as the size, age, and condition of the property, you can expect to pay anywhere from $100,000 to $1M.
When you’re ready to buy property in the Poconos, consider this investor’s guide. And let <a href="https://www.homewayre.com/">Homeway Real Estate help</a> you find the perfect portfolio complement or forever home in the Poconos! Whatever your investment goals may be, our team of professionals can help you achieve them right here in the heart of the Pocono Mountains.2022-06-29T07:00:00-07:002022-06-27T09:28:15-07:00Alex Lopeztag:homewayre.com,2012-09-20:9401Lakefront Real Estate in the Poconos: 6 Things You Need to Know<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_24.jpg" width="1920" height="1080" />
Some of the most beautiful landscapes nature has to offer are right here in the Poconos. With miles of explorable trails, countless waterfalls, and a full roster of extracurricular activities, there's a magical, nature-infused experience for almost everyone. Whether you’re a lifelong Lehigh Valley resident or new to the area, there’s just something peaceful and serene about visiting the Poconos. But what about living there?
If you’re looking to make a change and move somewhere with breathtaking views, convenient access to amenities, and waterfront recreation, consider lakefront real estate in the Pocono Mountains. But before you officially decide to start looking for houses for sale or even put your home officially on the market, there are a few things you should know about building a life lakefront in the Poconos. Here are the details to know what to expect about exploring, buying, and living on the water in the beautiful Pocono Mountains.
1. Quaint and Cozy Communities in the Poconos
The region is sprawling and spectacularly beautiful, chock-full of tourist and resident activities you won’t find anywhere else. People visit the many communities that make up the Poconos for the best bird watching, hiking, fishing, zip-lining, canoeing, golfing, and whitewater rafting. And before you make a move here, you’ll want to explore the area to find just the perfect spot to call home. Here are a <a href="https://www.poconomountains.com/blog/post/quaint-and-cozy-pocono-towns-to-visit-in-the-fall/">few of the small townships</a> that dot this majestic region across Pike, Carbon, Monroe, and Wayne Counties.
Delaware Water Gap
Milford
Lake Wallenpaupack
Jim Thorpe
Hawley
Honesdale
2. Is Lakefront Property in the Poconos a Good Investment?
Yes! <a href="https://www.homewayre.com/blog/how-to-buy-a-house-in-a-competitive-market/">Buying lakefront property</a> in the Poconos is a stable investment, and demand is typically high, considering real estate along the water is limited. Because it will almost always be in high demand, any investment you make today into property here will be sound well into the coming years. The real estate market in the area may show some signs of cooling off, but it continues to boast higher transaction rates and be wildly busy with activity. It’s still a good time to make a move if you’ve had Poconos lakefront property on your mind.
Keep in mind, too, that there are countless rivers and streams running through the Poconos. If you’re interested in waterfront property, in general, you could find just the perfect spot near one of these many rivers, creeks, and streams. The Lehigh River and the Delaware River branch off, providing incredibly scenic and relaxing views that make for a perfect backdrop to call home.
3. What to Expect with Lakefront Poconos Property Prices
As you might expect, the pricing of homes currently listed for sale in the Poconos will vary. Some cottages will be $100,000 or less. More spacious and finished homes, with acreage and amenities, can soar upwards of $500,000. On average, you can expect a $179,000 listing price for modest dwellings on a lake.
Before you begin your house-hunting adventures in the Poconos, take the time to evaluate your budget and get your financing in order. It’s still recommended that you explore mortgage <a href="https://www.homewayre.com/buyers/mortgage-pre-approval/">prequalification or pre-approval</a> to know precisely what your borrowing power is. There are plenty of homes listed for sale. Don’t waste your time exploring those that fall outside your ideal price points.
4. Pros and Cons You Should Know About Lakefront Life in the Poconos
Visiting the lake and taking a vacation in the Poconos is one thing. But living here means considering other pros and cons. If you’ve lived on a lakefront property before, you likely have some idea of what to expect. But if lakefront living is new to you, or you’ve not experienced life in more rural communities, here are a few aspects to consider.
Lake houses come in all shapes and sizes.
Know what you need in a home before you begin searching. There <a href="https://www.homewayre.com/blog/should-you-buy-fixer-upper-homes-for-sale-in-lehigh-valley/">are small cottages</a>, cozy A-frames, and sprawling ranches to consider. But just as you would make your must-have and nice-to-have home-buying lists if you were to buy a home elsewhere, you’ll want to prioritize what you need in a lakefront home. Keep your budgets in mind, too.
Research the small town or community you have in mind.
Because there are so many charming communities in the Pocono Mountains region, it will serve your home-buying decision best to learn what all the areas have to offer. If you need to commute for work, check your drive times. Be mindful of area school districts if you have children, and check dining and retail options, as well. Envision daily life in your chosen community and consider every potential convenience and inconvenience before you make your final purchasing decision.
There are more than 150 lakes dotting the Poconos Mountains.
Research the lake you specifically have in mind for cleanliness, amenities, and options. The Poconos region has plenty of <a href="https://www.lakelifestateofmind.com/8-tips-for-living-on-a-lake/">lakefront real estate</a> from which to choose, depending on where you look. You might be more interested in a quiet lake to complement a life in retirement. Alternatively, those with young families may be looking for more recreational lake activities to explore on the weekends. Whatever you want from your lakefront experience, do your lakefront real estate homework to make sure you choose the perfect lake to have in your backyard long-term.
Familiarize yourself with the wildlife in the area.
You’ll need to get comfortable with living in a more rural area, up close and personal with Poconos wildlife. Expect coyotes and red and gray foxes throughout the region. There are also weasel and raccoon populations to contend with, who aren’t afraid to wander into residential neighborhoods. The Pocono Mountains are also home to resident bobcats and black bears, as well. Remember, too; you'll have a seasonal influx of insects, spiders, and rodents that will be more afraid of you than you are of them.
Potential for Higher Costs
Depending on how remote you’re looking to live, there <a href="https://www.rocketmortgage.com/learn/the-pros-and-cons-of-owning-waterfront-property">could be additional costs</a> and higher expenses to consider with lake life in the Poconos. For example, utility bills could run higher, especially when heating during the frigid winter months. Some lakefront real estate is also part of an association, which may translate to additional association membership fees. Additionally, some lakes or nearby streams may present flood concerns. And that may mean higher insurance costs.
5. Second Homes and Vacation Rentals
Many real estate investors look to the lakefront properties in the Poconos for opportunities with second homes and potential vacation rentals. These are great investments, as well, should you have the financial standing to do so. Buying a home in one of the most beautiful parts of the country means also having the flexibility of living there, vacationing there, or renting it out to an already booming tourist industry. Depending on the location and condition of the property you buy, you can earn between $300 and $1,500 per night with your lakefront real estate. And owning a second home presents additional tax advantages worth exploring, too.
6. Finding the Right Real Estate Partner
Even if you consider yourself to be a top-notch expert in the Poconos, buying a lakefront home there is not a journey you should embark on alone. You’ll want an <a href="https://www.homewayre.com/blog/what-does-a-real-estate-agent-do-for-you/">expert real estate agent partner</a> who not only knows the market but also has experience helping buyers like you find perfect homes there. You’ll want to almost do as much homework on choosing an agent as you would when choosing a property.
Luckily, you can start your agent partner search <a href="https://www.homewayre.com/">with Homeway Real Estate</a>. Our team of dedicated real estate agents is versed, more than experienced, and incredibly knowledgeable about buying and listing lakefront real estate in the Poconos. Contact us and take all the guesswork out of finding and buying lakefront property in the Pocono Mountains. Start living your best life on the water and among the stunning views you'll only find in the Poconos.
2022-06-21T07:00:00-07:002022-06-20T09:13:14-07:00Alex Lopeztag:homewayre.com,2012-09-20:9179What Does a Real Estate Agent Do for You?<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_9%20----.jpg" width="1920" height="1080" />
You might assume that working with a real estate agent is smart to get help with <a href="https://www.homewayre.com/blog/how-to-buy-a-house-in-a-competitive-market/">finding a home to buy</a> or getting your home on the market to sell. And the more you think about it; you’re wondering now if you could get your house on the market on your own. And finding a new house to buy can’t really be that hard, can it, especially with all the listing sites like Zillow, Trulia, and Realtor.com?
Before you make any rash decisions just yet, what you need is proven intel about just what a great real estate agent partner can actually do for you. There is so much more involved with real estate transactions than finding a property to buy or simply getting your home’s details on MLS. And it's the qualified, expert real estate agent who can shed light around every dark corner of the entire process. Here’s what every Lehigh Valley buyer or seller should know about the <a href="https://www.homewayre.com/blog/why-do-i-need-a-real-estate-agent/">role of a real estate agent</a>.
Definitions and Real Estate Agent Credentials to Know
So, what is a real estate agent, really? These licensed pros are trained and well-versed in organizing real estate transactions between sellers and buyers. Sometimes called listing agents or buyer’s agents, these professionals know the ins and outs and best practices associated with the real estate market, too. They're individuals who have made prominent careers out of helping people with real estate transactions and representing their clients' best interests through every phase of the process.
Real estate agents are also sometimes called REALTORS®. But the term itself can be loosely misassigned. Not every Lehigh Valley real estate agent is a REALTOR®. Those who are REALTORS® are additionally members of the National Association of REALTORS® or NAR. In addition to offering traditional real estate transactional assistance, they also abide by certain codes of ethics, prioritizing the transparency of the transactions and preserving the benefits of clients.
Working with either REALTORS® or real estate agent professionals will also translate to paying a commission or fee upon the purchase of a home or sale of a home.
Understanding the Different Types of Real Estate Agent Professionals
Knowing <a href="https://www.quickenloans.com/learn/what-does-a-real-estate-agent-do">what a real estate agent does</a> is just the beginning. It can be confusing if you aren’t familiar with the various terms and types of services offered. Here are some of those terms and role responsibilities to know as you consider working with an agent yourself.
Selling Agents
Selling agents will, obviously, help you sell your home. Their responsibilities include property photography, showing the property to prospective buyers, staging the house for walkthroughs, marketing the property, and securing official online listings for the public to see.
Buying Agents
Buying agents, as the name implies, refer to the homebuying partnership. Their responsibilities typically include <a href="https://www.homewayre.com/blog/should-you-buy-fixer-upper-homes-for-sale-in-lehigh-valley/">finding potential properties</a> that fit the needs and wants of their home buying clients. They’ll schedule viewings and chaperone walkthroughs with buyers. They can also be instrumental in structuring deals, negotiating offers, scheduling inspections, and offering a host of additional concierge services.
Real Estate Brokers
When you decide to work with a real estate broker, you’re partnering with a professional who’s also passed their brokerage exams. This means the pro can work independently of a larger firm and can usually take on additional administrative duties associated with buying or selling a home.
Dual Agents
If you hear the term “dual agent,” you’re working with a professional who represents both the buyer and the seller in a transaction. It’s not always ideal, with the potential risks of conflict of interest. If you don’t have an agent and enter into a transaction where the other party’s agent offers to work for you during the deal, you’ll be responsible for commissions.
Benefits of Having a Real Estate Agent in Your Corner
When you partner with a <a href="https://www.rockethomes.com/blog/home-buying/what-does-a-real-estate-agent-do">real estate agent professional</a>, you’re working with someone who is dedicated to your best interest throughout the entire transaction and process. Some will be more experienced than others. But, in general, every agent should be knowledgeable about the local market and be prepared to help you:
Sift through all the necessary paperwork required for buying or listing
Communicate your interests across all included parties, including other agents, inspectors, and lenders.
Provide resources for securing inspections and pre-listing contingency requirements.
Prepare for closing day and be available for ongoing questions leading up to it.
What Real Estate Agents Do for Their Selling Clients
If you’re ready to sell your property, you’ll need a well-versed pro who’s prepared to help you sell your house quickly and for the best offer possible. To do this, they’ll help you first get a realistic valuation of your home and establish a listing price. They’ll make suggestions to help you leverage any home improvements that will increase your potential offer amounts, too. They’ll know what aspects of a home need a little TLC, within a realistic budget, based on their extensive experience in knowing what potential buyers look for and what the market demands.
Listing agents who represent you as a seller will also be responsible for marketing your property to the public and attracting potential buyers. They’ll start by listing your property and its details on the local MLS (multiple listing service.) Once in this database, they’ll cross-advertise your home across the other available listing sites, making it available with pictures, pricing, and amenities to anyone browsing homes to buy online. Additionally, a great real estate agent professional will take other steps to advertise your house for sale, including scheduling and promoting open houses. They’ll network with their colleagues and put signs in your yard, as well.
Sellers often rely on their listing agents to help vet potential buyers. Not every interested party is a worthwhile buyer. And dealing with the “tire kickers” yourself could be time-consuming and frustrating. A good Lehigh Valley listing agent will instead help you weed through those not-so-serious inquiries, only bringing viable buyers to your attention when they present themselves.
Real estate agents helping you sell your home provide another key benefit. They’re negotiating masters, which is a skill needed when it comes time to consider offers. They can help you come to the best pricing solution with buyer <a href="https://www.homewayre.com/blog/how-to-get-the-seller-to-pay-for-closing-costs/">negotiation regarding closing costs</a>, home warranties, fees, and contingencies. Their responsibilities also include submitting contracts and agreements on your behalf once a deal is finalized.
What Real Estate Agents Do for Their Buying Clients
When partnering with a Lehigh Valley real estate agent to help you find and buy a property, you’ll get more than just a colleague who can share listings with you. The best agents will sit down with you first to understand precisely what you’re looking for in a property. From location to available amenities, they’ll use your must-have and nice-to-have lists to sort through available listings on your behalf.
They’ll be informative about the current market fluctuations, average offers, and pitfalls to avoid. They’ll also likely insist you follow up with securing <a href="https://www.homewayre.com/blog/why-get-prequalified-for-a-home-loan-before-looking-at-houses/">mortgage pre-approvals or pre-qualifications</a> to position you with the best buying power and to narrow down the search based on your unique affordability parameters.
When you’ve identified a home you love, your real estate agent will walk you through every next step, including submitting offers and negotiating with the sellers. Additionally, they’ll help you set up inspections and appraisals to put your mind at ease about a property’s value and current condition.
As part of all these processes comes paperwork. And a lot of it. Many of these documents and submission requirements may be foreign territory for you. But a trusted real estate agent partner can help you make sense of every step and ensure all documents are properly executed and submitted within required timelines. Agreements, contracts, and supporting paperwork can all be handled by your agent.
What Real Estate Agents Do at Closing
Considering all the tasks and real estate transaction steps a great agent can help you with, some of the most important support comes at the closing table. With so many parties involved, including buyers, sellers, attorneys, lenders, title company representatives, inspectors, and appraisers, communication at every level is key. Your Lehigh Valley real estate partner plays a pivotal communication role from start to finish, so by the time you arrive at the scheduled closing, you’ll have an expert in your corner who understands every nuance. They’ll help you review every document and make sure you understand the commitments or requirements outlined before you sign. They’ll help you with a final walkthrough on the day of closing. They’ll be present with you right up until you take possession of the keys. They’ll be the glue that brings all the components and people of a transaction together and with your best interest in mind the whole way.
How to Choose the Right Real Estate Agent in the Lehigh Valley
Now that you understand the incredible value a real estate agent can bring to your home buying or home selling process, all you have to do is find one to work with in the Lehigh Valley. Not all agents will bring the same level of expertise, market knowledge, or real estate experience either. So, you’ll want to be mindful of asking the right questions before committing to a partnership.
Save yourself the hassle of vetting countless real estate agents and call <a href="https://www.homewayre.com/">Homeway Real Estate</a> instead! Our qualified team of pros has decades of experience with the Lehigh Valley market. Whether you are ready to buy a new property or want to explore selling your home, let one of our local agents guide you through every step. After all, it’s their job!2022-05-25T07:00:00-07:002022-05-23T09:39:14-07:00Alex Lopeztag:homewayre.com,2012-09-20:9103How to Buy a House in a Competitive Market <img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_23.jpg" width="1920" height="1080" />
So, you want to buy a Lehigh Valley house in<a href="https://www.homewayre.com/blog/tips-for-buying-a-house-in-a-competitive-market/"> today’s competitive market</a>. Are you ready for a roller coaster ride? The pandemic, incredibly lucrative interest rates, and a mass decision to find something new have created an unbelievably hot housing market. Homes are selling for more than they ever have. Transactions are happening lighting-fast. And now you’re ready to get in on the action yourself. But how can you prepare?
In order to have the most seamless house-buying experience when buying your next Lehigh Valley home and selling your current property, there are a few tips to know. These suggestions will guide your efforts and help you know what to expect. It’s a jungle out there. Get your house-buying ducks in a row and prepare now so you can sell your home for the most money and buy a house seamlessly. These are the critical steps to successfully buying a house in today's crazy competitive market.
Get Pre-Qualified or Pre-Approved
Don’t even think about looking at houses or scheduling tours until you’ve had a chance to properly assess your finances. It's important to understand your affordability benchmarks and budget. You can talk with lenders about pre-qualification, a less formal way of figuring out what you can afford. But for the best results, consider pre-approval for a loan, which is a more in-depth process of analyzing your borrowing power. In the latter, you’ll provide the lender with employment history, household income, and current debts to do everything but officially apply for a loan. A mortgage pre-approval will give you the leverage you need when you do start looking at houses for sale to make immediate offers and communicate to the sellers that you’re serious about a purchasing commitment. Either method,<a href="https://www.homewayre.com/blog/pre-approval-vs-prequalification-for-mortgage-whats-the-difference/"> pre-qualification or pre-approval</a>, will ensure you only consider looking at properties that fall within your budget, too.
Figure Out What You’re Looking for Before You Begin
With your house-buying budget in mind, you can then get real about what you’re looking for in a Lehigh Valley home. There’s a must-have list of amenities to outline first. These are the deal-breaker features your new home absolutely has to offer. Maybe it’s a bedroom count or square footage goal. Maybe you’re only interested in certain locations because of a work commute or school district. Whatever they are for you, make the list before you set out to buy a house. Your secondary list can be more of a nice-to-have roster of extras, like a fenced-in backyard or sprawling front porch. These features will sweeten the deal but aren’t necessarily deal-breakers that would deter you from buying altogether.
Be Prepared to Act Fast
Buying a house in <a href="https://time.com/nextadvisor/mortgages/tips-buying-competitive-housing-markets/">today’s competitive market</a> is not the long, drawn-out process at a leisurely pace that it once was. There are likely going to be more offers on any house you like. And it’s mission-critical that you be prepared to act quickly. If you do, in fact, find a Lehigh Valley home that checks all your must-have boxes, get in there with an offer. Deliberating too long could result in losing out on your dream house to another, quicker commitment. Decisions have to be swift to be successful.
A Pleasant Demeanor and Cordial Attitude Can Go a Long Way
It can get intense when there are multiple offers on the table, real estate agents and attorneys involved, and multi-thousand dollar or more properties at stake. With communications free-flowing in both directions, lines can get crossed sometimes, causing poor impressions. One way to get ahead of all the static is to simply be nice. Professional courtesy, pleasant conversation, and building relationships with others involved in the deal, sellers and their representatives included, can improve your chances of success. People prefer to work with others they deem nice or deserving. Being anything else can only sour how the sellers feel about working with you. If they have a choice between working with someone who's pleasant and cordial and another buyer who's less than friendly, the deal is more likely to swing your way.
Only Strong Offers Win
It used to be a widely accepted best practice to put in a Lehigh Valley home offer below the asking price. Those tactics won’t fly in today’s competitive market, though. Lowball offers will quickly be discarded, especially with so many other buyers on the hunt right now. Do your due diligence and put together your strongest first-round offer. Be realistic and confident. The strongest offers will win the race every time.
Earnest Money Preparation
Tossing around an offer isn’t necessarily going to seal the deal. You should also be prepared to back up your offer with an earnest money commitment. Earnest money represents funds homebuyers are willing to put down upfront when they’re ready to buy a home. Sellers will be more likely to work with you if you have earnest money than with another offer without it.
Avoid Panic Buying
Today’s competitive housing market tends to induce more anxiety than usual. And if you lose out on a few homes because of other offers, you can start to feel the pressure, too. However, keep a level head and don’t subscribe to the panic-buying pressures. Stick to your budget and your must-have list and remain vigilant. New homes come onto the Lehigh Valley market every day. And missing out on one or two of your first choices means there may just be a better deal in store for you. What you don’t want to do is panic buy and end up with a property that isn’t a good fit or make an offer outside your budget to avoid missing out on a house.
Waive Contingencies That Make Sense
Before you buy any house, you’ll want to secure an appraisal and have a home inspection. But be <a href="https://www.rocketmortgage.com/learn/how-to-make-an-offer-on-a-house">mindful of contingencies</a>. If you get too particular, the sellers may opt to go with another buyer who’s waiving contingencies. Be smart about what contingencies are important to you and be flexible with negotiating any others that don’t bear the same weight. Avoid over-burdening the sellers with complicated requirements, and you’ll stand a better chance of having your offer accepted.
Get Creative About Your Offer
Another way to get ahead in a competitive market is by doing research and constructing a tailored offer. You can do a little homework before submitting your offer to explore the reasons why other offers were rejected or to learn how soon they’re looking to close. You can then cater your offer to meet these objectives, increasing the likelihood of having it accepted. Make yours stand out from any others in the running and be in a better position to get the home of your dreams.
Partner with a Lehigh Valley Agent Expert
If you heed no other advice, heed this suggestion – partner with a<a href="https://www.homewayre.com/blog/why-do-i-need-a-real-estate-agent/"> Lehigh Valley real estate agent</a>. Trying to navigate the housing market of a few years ago might be doable on your own. But in today’s volatile, fast-moving, and competitive market, you need an expert guide to walk you through the most seamless path to buying a home. You’ll need someone who can see around corners for you, know what to expect, and present top-notch negotiating skills. Your real estate professional can also be instrumental in drafting offer letters and communicating contingencies. Let your agent do the heavy lifting for you.
If you’re ready to make a move, keep these tips in mind. It’s a vastly different and more competitive market today than it’s ever been. And preparing ahead of time will only position you for a more successful house-buying experience.
And before you consider looking at a property, contact the pros at<a href="https://www.homewayre.com/blog/category/buying-a-home/"> Homeway Real Estate</a>! Our team knows just how unpredictable the Lehigh Valley housing market can be these days. We can help you navigate every step, from looking at houses within your budget to finalizing offers and taking possession of keys at closing. 2022-05-18T07:00:00-07:002022-05-16T09:36:15-07:00Alex Lopeztag:homewayre.com,2012-09-20:9050Why Do I Need a Real Estate Agent?<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_22.jpg" width="1920" height="1080" />
After giving it some thought, you think you’re ready to sell your Lehigh Valley home and venture out to find something new. Everyone's talking about how now's the<a href="https://www.homewayre.com/blog/tips-for-buying-a-house-in-a-competitive-market/"> perfect time to sell</a>, too. Sitting down to figure out your next move, you start wondering about whether or not you really need a real estate agent. And at first glance, it might be appealing to try your hand at For Sale By Owner and homebuying on your own. It might save you a little money and make it feel like you’re more in control of the whole process. But is it really the smartest decision?
You might not think you necessarily need a real estate agent, especially because you've heard that homes are selling relatively quickly and for top dollar these days. However, going it alone could end up costing you in the long run. Saving upfront on not paying commissions might sound appealing. But there is so much more that officially goes into selling your home for the most money and getting a new home for the best price. It’s a jungle out there. Don’t embark on your journey without an expert guide to help you navigate.
If your goal is to have a seamless process, it’s the real estate agent that will make it happen. Here are a handful of other reasons to support why you need an agent professional in your corner.
Market Knowledge Matters
Today’s real estate market is downright incredible. And it’s nothing like it was two, five, or ten years ago. If you haven’t bought or sold a house in a while, or ever, you need a real estate agent who understands the nuances of today’s crazy volatile market. Having the right partner will mean having someone to help you know just where to look for a home, how to prepare to sell, and how to avoid common mistakes those without agents make. A lot has changed in real estate, and it’s <a href="https://www.quickenloans.com/learn/should-you-buy-a-home-without-a-real-estate-agent">the real estate agent</a> who will help you see around corners and get through the buying and selling process with the fewest risks possible.
Preparing to List Your Home for Sale
You could just clean out the gutters and sweep the walk to prepare your home for sale. But if you want the best offers, you might <a href="https://www.homewayre.com/blog/why-get-prequalified-for-a-home-loan-before-looking-at-houses/">have to do a little more</a>. You can get a pre-listing home inspection to help you identify what areas of your home need the most attention. However, to know what improvements you should make to get the best offers, only a seasoned real estate professional can tell you what upgrades will help you get there. You’ll also get coaching on how to stage your home for showings and listing photos.
Real Estate Agents Know How to Sell Houses
If your kitchen sink springs a leak, you can try to fix it yourself. You might take a few hours longer to do it, and it might require a few extra trips to the hardware store. Alternatively, you could just call a plumber who can come in quickly with all the right tools and solutions to fix the leak. They’re plumbers, after all; fixing leaks is what they do. The same premise applies to real estate.
You could try to sell your home on your own. But it will probably take you longer and require you to do way more to spread the word about your listing. Or you could hire a professional real estate agent, who sells houses for a living, and has a complex process for more efficient results. You need a real estate agent because for a purchase this significant, you need a professional. And the right agent will keep you in the loop as a top priority every step of the way.
You Probably Won’t Have the Added Time or Energy to Do What It Takes
Putting a sign in your yard may not be enough to gain traction with potential buyers. There’s more that goes into selling a house. Marketing your property involves carefully preparing it for market, taking pictures and videos, and crafting language to sell your house. Then there’s the screening of all the potential buyers who want to schedule looky-loo walkthroughs and make low-ball offers. Trying to handle all of these tasks can be hard on their own, let alone if you have a job and a life to get back to at the same time.
Buying a house can take more time and effort than you may have to put into it. Sure, you can browse the listings online. But scheduling your own tours and trying to handle offers, contingencies, earnest money, and the like can be a delicate dance. Having a <a href="https://www.homewayre.com/blog/are-the-cheap-houses-for-sale-in-lancaster-pa-worth-it/">Lehigh Valley real estate agent</a> by your side means you’ll have someone to help you navigate every step and work full-time on your behalf. And they can be instrumental in saving you time by only presenting you with those properties that fit your needs and budget.
Agents Can Be Calming Voices in the Storm
As much as you’d love for your real estate transaction to go smoothly, the industry experts will warn you that so much can go awry. It’s hard not to let your emotions get involved when you’re trying to work through what could be the most important and probably most expensive transaction you’ll ever have. Working with a real estate professional means, you’ll always have that calming voice of reason in your corner to help take the emotion out of the process and find a solution. Chances are, there isn’t a problem you won’t face that your trusted agent hasn’t already navigated before. So, let the voice of reason guide you through, especially when things go wrong.
What Do You Really Know About Writing a Purchasing Agreement?
You might be fine to get through the first few legs of the house-buying race on your own. But there will come the point when you’ll need to draft a purchase and sale agreement. You’ll need to know how to list contingencies and outline earnest money. You’ll also need to coordinate with the title company to perform a title search and secure title insurance. If any or all of those steps sound like unfamiliar territory for you, it’s probably best that you work with an experienced and very knowledgeable real estate agent who can handle all paperwork on your behalf.
Having a Middle Person on Your Behalf Is Essential
You might have concerns about a particular property you’re looking to buy. Having an agent representing your interests means having a middle person who can discuss your concerns or questions without insulting anyone. Additionally, the right Realtor can use those points to help negotiate a better purchasing price. In today’s housing market, misrepresenting yourself could turn the sellers against you, with plenty of other offers on deck to consider. Having that objective and professional opinion will ensure no hard feelings block your best outcome.
Agents Know People You Don’t
Working locally with a <a href="https://www.travelers.com/resources/home/buying-selling/10-reasons-why-you-may-need-a-real-estate-agent">professional real estate agent</a> will allow you to have access to a host of resources you likely wouldn’t have on your own. Realtors know people and have connections that can help make your buying, selling, and moving process seamless. Instead of trying to look up and hire a cleaning service, ask your agent for a referral? Need a storage facility or the name of a good roofer? Your agent will likely have those on speed dial, too.
Who you know matters when you’re trying to sell your home, as well. You can only talk to your friends and family about your house for sale so many times. An agent partner knows other agents, has working relationships with other firms and knows where to find buyers. Hiring the right Lehigh Valley real estate agent will allow you to tap into all their resources to do everything you need to do for a smooth transaction.
Because Real Estate Agents Know What Details Are Important
It’s a big purchase, but it’s chock-full of details and minutiae that the average person won’t know or remember to handle. Realtors not only know these nuances, but they’re also masters at handling all the little things that add up to big results. When listing your house, for example, there are curb appeal perfections and lighting details that matter. When you’re buying a house, there are subtle details in the listing language that could signal problems or delays. And just when you think you’re ready for the paperwork mountain you’ll have to sift through; there are plenty of details you’ll need someone on hand to explain.
Agents Are Master Negotiators
You might not think you need a negotiator. However, in today’s <a href="https://www.homewayre.com/blog/how-to-get-the-seller-to-pay-for-closing-costs/">Lehigh Valley housing market</a>, every deal is going to likely involve multiple offers, several buyers, and strict timelines to make something happen. Missing one important call could be just the mistake that costs you the house. Now’s not the time to take matters into your own hands. Having a trusted real estate agent with you will also mean you have a skilled negotiator who knows just what to say, when to say it and how to get a deal done with your best interests in mind.
So, do you really need a real estate agent? When you consider all of these key benefits, you’ll soon realize it’s the best decision you can make. Of course, you’ll need to find the best agent, not just someone who has a license on the side. For the most experienced professionals in the Lehigh Valley, there’s only one call you need to make. <a href="https://www.homewayre.com/">Contact our agent team</a> today and let us handle all of the above and more to help you with your selling and buying journey.2022-05-11T07:00:00-07:002022-05-09T16:04:59-07:00Alex Lopeztag:homewayre.com,2012-09-20:8996Tips for Buying a House in a Competitive Market<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_20.jpg" width="1920" height="1080" />
In today’s crazy hot housing market, buyers and sellers are flustered and rushing to get deals done. You probably already know of friends and family who have taken advantage of all the house buying and selling activity. Deals happen quickly, and offers stack up only after homes have been on the market for a matter of days. If you’ve been watching and sitting on the sidelines long enough and are ready to jump in to <a href="https://www.homewayre.com/blog/should-you-buy-fixer-upper-homes-for-sale-in-lehigh-valley/">buy a house in the Lehigh Valley</a> yourself, there’s something you should know – It’s INCREDIBLY competitive right now.
Shopping for a new house today isn’t the casual process it used to be. People are buying and selling at much higher rates, and there is a sense of urgency to nab the home you love before someone else comes in with a better offer. Before you venture out to find your dream home, these are the tips for buying in a competitive market. And it’s these suggestions and nuggets of advice that will help improve your chances of closing your deal, even if others are bidding against you.
Get Prequalified or Preapproved for Your Mortgage First
Take the necessary steps to secure your affordability benchmarks and even your mortgage by visiting a lender before you start house-hunting. Prequalification is more of a relaxed process but will at least help you narrow down your ideal purchasing power. Securing a <a href="https://www.homewayre.com/blog/why-get-prequalified-for-a-home-loan-before-looking-at-houses/">preapproval for a mortgage</a> will involve a mortgage application and supporting documents. And if you're serious about buying, getting a mortgage preapproval is a valuable and time-saving step to take before you find a home since it's about as close to securing an actual mortgage without having a property in mind. But both the mortgage prequalification and the mortgage preapproval will improve your chances of getting the house you want since sellers will see you’re more serious about moving quickly with the purchase.
Put Together a Final List of Must-Haves and Nice-to-Haves
Having goals in mind before you start shopping for a Lehigh Valley home will keep you focused. Really sit down and critically consider what you need, including the number of rooms for your family, home amenity necessities, or the preferred location. This will serve as the list of deal breakers you’ll want to stick to in order to avoid settling on the wrong property in a competitive market. Don't get discouraged if what you need doesn't present immediately with the homes you visit. The market is hot with activity, and new listings pop up almost daily. But with your goals in mind, you can then create a separate list of nice-to-have amenities that you consider to be negotiable.
Avoid Impulse Buying
Following up on your list of goals, the next tip for buying a house in a competitive market is not to be swayed by urgency. Patience will keep you focused and in line with your goals. You might find the Lehigh Valley home of your dreams, but because the market is so competitive right now, it’s best to keep looking. Prepare yourself to consider more than one property and explore offers on all of them to ensure you’re able to close in on one that makes sense for you. Don’t panic if your first offer doesn’t stick. Prepare for the long haul and be patient.
Don’t Waste Time or Be a Tire-Kicker
In the car buying industry, they’re called tire kickers. These are the buyers who express interest, maybe show up and “kick the tire,” but have no intention of buying. In the <a href="https://time.com/nextadvisor/mortgages/tips-buying-competitive-housing-markets/">competitive housing market</a> right now, tire-kicking won’t get you any closer to buying. If you’re not altogether sold on a property, move on from it. Avoid wasting time by looking at properties that don’t fit your needs and goals list. And when you do find homes you’d like to buy, prepare to move quickly with your offers. Hold-ups and delays will dissuade sellers from you, especially when other buyers are ready to move quickly.
Have Your Earnest Money and Down Payment Ready
Making an offer on a Lehigh Valley home isn’t really free. You’ll have to back up your offer with earnest money or an escrowed deposit. These amounts will typically fall between five and 20% of the purchase price, depending on the type of loan you’re securing. Presenting your information about earnest money and down payments along with your offer, the seller will know you’re serious about the commitment to move forward with the purchase. It also says you’re a strong buyer, which is an ideal trait sellers will also prefer.
Make Strong First Offers
In years past, it was often <a href="https://www.fultonbank.com/Education-Center/Home-Ownership/Competitive-housing-market">a best practice to offer</a> below the listing price, knowing there would be room for negotiation. And ideally, paying full price for anything meant you’d be paying too much. That logic doesn’t apply to today’s competitive housing market. Making an offer today means writing it in such a way that yours stands out from other offers. Be prepared to go in higher or to provide a larger down payment, telling the seller you’re ready to move forward. Now’s not the time to try to play low-ball negotiation because chances are, someone else is already prepared to offer more than you.
Lose the Contingencies
Writing a good offer might also include losing a few contingencies. Appraisal gaps, inspections, or other steps usually constitute added time delays. While getting a home inspection and securing an appraisal are necessary, there are ways to loosen up on the contingency roster to help sweeten the deal and offer you’re making. When there are fewer pauses in the process and fewer hoops to jump through, the seller will likely find your offer more favorable.
Be a Person, Not Just a Potential Buyer
There are some experts who suggest making the emotional connection with your offer can improve your likelihood of having your offer accepted over another. This might be a heartfelt introduction with a letter included in your offer. Specify what you love about the home, <a href="https://www.homewayre.com/blog/how-to-get-the-seller-to-pay-for-closing-costs/">appealing to any seller</a> who might have an emotional connection to the property. Tell the sellers about you and be human. When you’re able to be an actual person and not a fictitious number in the form of an offer, you increase your chances of making a connection with the sellers.
Find Yourself a Top-Notch Real Estate Agent Professional
Having a real estate agent on board and in your corner is key to staying ahead in the competitive housing market. But the right real estate partner, like one of the Homeway Real Estate Realtors, will be critical to positioning your offer as the absolute best option. Get notices when houses first hit the market. Receive the most actionable advice about when to submit your offer, how to make your offer stand out, and negotiating for the best deal.
If you’re ready to dip your toe into the competitive market, consider these tips to stay ahead. And once you’ve ironed out your finances and lending options, <a href="https://www.homewayre.com/">contact Homeway Real Estate</a> to work with one of our professionals. It’s going to be a bumpy ride. But having the right agent at your side can ensure you find and buy the Lehigh Valley home of your dreams.2022-05-04T07:00:00-07:002022-05-03T07:51:07-07:00Alex Lopeztag:homewayre.com,2012-09-20:8961Why Get Prequalified for a Home Loan Before Looking at Houses<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_19.jpg" width="1920" height="1080" />
Because buying a Lehigh Valley home may just be the single most expensive investment you plan to make, it’s best to plan ahead. And there is a lot you should and can do before you begin house hunting to ensure a smoother browsing and buying process. Even if you’ve purchased a home before, times are changing, and the housing market moves faster than ever when it comes to making offers, negotiating final details, and eventually closing.
Of course, there are plenty of unknowns associated with buying a home that you can't quite anticipate or do anything about now. However, there are two key steps you can take now, before you even begin browsing the online listings, including <a href="https://www.homewayre.com/blog/pre-approval-vs-prequalification-for-mortgage-whats-the-difference/">mortgage prequalification and mortgage preapproval</a>, both of which have incredible benefits to you as a homebuyer.
You might presume to know what kind of borrowing power you might have with lenders, especially if you already have a great working relationship with your bank or mortgage broker. And you might already feel confident that your credit history is strong enough to support securing a loan based on your own affordability calculations. However, taking the first steps to get prequalified can firm up that confidence and present some advantages further along in the home buying process. And if you’re still not convinced, here are a few key reasons why it’s a good idea to get prequalified for a home loan before you venture out to Lehigh Valley open houses.
Give Yourself Time to Compare Lending Options
Once you have found a home to buy, everything about the process can move quickly. You have minimal time to make an offer or negotiate terms. There are timelines for processing loans and finalizing paperwork. Don’t wait until this rushed time in the process to find the right lender.
Getting prequalified before you even start looking at houses means you’ll have the time to be thorough about comparing your lending options. There are different types of mortgage loans, some with more benefits and cost-saving advantages than others. And taking your time to explore the best loan structures now will ensure that when you’re ready to enter that more pressing timeline of processes, you’ll be ready. You want to avoid a situation after you've made an offer on a property that hinders your ability to secure the right loan, or worse, getting declined altogether.
Learning How Much You Can Afford
Another key reason to get prequalified or preapproved before you start house hunting in the Lehigh Valley is having your own peace of mind about what you can afford. Crunching your numbers on your own is one thing. But talking to a lender about securing a loan, and understanding the various steps that go into loan approvals, will help you determine upfront what you can afford.
It can be heartbreaking to find a dream home, only to find out later you can’t get a loan for it. Save yourself the time and avoid disappointment by getting prequalified first. Then you’ll have a listing price range within your means, helping you to narrow your home search accordingly. You can even talk to your real estate agent partner to keep your viewings and open houses within your given price range.
It Can Save You Time and Effort
Getting prequalified or preapproved for your home loan before you start shopping will ultimately save you time and effort. There are critical and necessary steps you can take now that you won’t have to take later that can begin the lending process before you even find a house to buy. Taking the time now will only make every other process flow quicker. Remember, getting a mortgage preapproval could take a few days or weeks. Those are days and weeks you don’t want to wait for later after you’ve identified a property to buy, and other buyers are chomping at the bit to get in an offer ahead of you.
You Can Avoid Home Loan Surprises
Seasoned lending and real estate professionals all have cautionary tales to share about homebuyers who were met with loan surprises they didn’t expect. You might presume to know everything you need to know about your financial health and borrowing power. But surprises and anomalies do happen. <a href="https://www.homewayre.com/blog/why-am-i-not-getting-prequalified/">Getting prequalified first</a> will allow you to verify if there are any surprising obstacles to overcome. A surprise entry on your credit report or a low debt-to-income ratio can unwind a loan quickly. Know what you need to know upfront so you’re not unpleasantly surprised later and miss out on buying a dream house.
It’s a Great Negotiating Tool
One of the best and probably most significant benefits of getting prequalified for a home loan first is bargaining power. <a href="https://www.mycsbin.com/advantages-of-a-mortgage-pre-approval">Mortgage prequalification is less formal</a> than a mortgage preapproval, but both provide an advantage over any other non-prequalified offers you might compete with on a home. Having been prequalified or preapproved, you send a message to the seller that you’re serious about buying. It also tells the seller that your process moving forward will go faster. And if they’re entertaining multiple offers on their listing, and in today’s market is quite the norm, they’ll be more apt to work with a buyer who’s prequalified or preapproved over someone who has not yet taken those pre-mortgage loan steps.
Speed up the Closing Process
We’ve mentioned several times now about the time efficiency associated with getting prequalified for a loan before you start looking at houses. But another key point worth noting is just how much faster the closing process is when you’ve taken the necessary and required steps ahead of time to get your loan structured. During a <a href="https://www.homewayre.com/blog/the-step-by-step-guide-to-the-documents-needed-for-mortgage-prequalification/">mortgage preapproval process</a>, you’ll provide your chosen lender with most of your financial details, including pay stubs, credit history, asset lists, and identifying information. When your offer is accepted, a quick phone call to your lender is all you need to get the ball rolling with processing the purchase. With all your information and details already collected, paperwork processing can begin immediately, getting you one step closer to keys in hand.
Reduce Stress Associated with Buying a Home
Shopping for a <a href="https://www.homewayre.com/blog/how-long-does-it-take-to-prequalify-for-a-mortgage/">new Lehigh Valley home</a> and getting all the loan paperwork, escrow, taxes, inspections, and moving handled can be stressful. There are more than a lot of moving parts to manage and strict timelines with which to complete tasks. Getting prequalified for a home loan ahead of time will help reduce some of that stress by taking the guesswork out of affordability, lending structure, and first steps off your post-offer-accepted to-do list.
Buying a home in the Lehigh Valley, in today’s housing market, requires a little pre-planning. Take the steps you can now to find the right lending partner, secure your mortgage prequalification or preapproval letter, and take advantage of these key benefits of doing so. It’s also best to have a trusted real estate agent partner by your side to help you navigate the house-hunting process, as well. Let <a href="https://www.homewayre.com/buyers/">Homeway Real Estate</a> be your Lehigh Valley guide. One of our professionals will help narrow your search based on your prequalified affordability. And we’ll ensure every other part of the home buying process goes as smoothly as possible for you.2022-04-27T07:00:00-07:002022-04-26T16:06:25-07:00Alex Lopeztag:homewayre.com,2012-09-20:8905Why Am I Not Getting Prequalified?<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_18.jpg" width="1920" height="1080" />
When you’re ready to find a Lehigh Valley home, either for the first time or because you’re ready to move, you know the value of having a <a href="https://www.homewayre.com/buyers/mortgage-pre-approval/">mortgage prequalification or preapproval</a> in hand before you start shopping the local listings. But what should you do if a lender declines to prequalify you for a mortgage? You can talk to other lenders or brokers to see if you have other options. However, it’s best to look at why a lender might say you’re not able to get prequalified and instead look for ways to improve your borrowing power.
Getting prequalified is a great first step to buying a home. If you’ve been turned down, it’s ideal to know about it now and not later, after you’ve found a house to buy and are ready to make an offer. Here’s what usually goes into mortgage prequalification denials and what you can do about yours.
Mortgage Prequalification and Mortgage Preapproval
Before you start house shopping, you’ll likely consider <a href="https://www.rocketmortgage.com/learn/preapproval-vs-prequalification">getting prequalified or preapproved</a> for a mortgage. These are two very different steps but are both designed to help potential buyers know their borrowing power ahead of time.
The prequalification process is a less formal, unofficial, and soft inquiry review of what you might be able to borrow when buying a home. During the mortgage prequalification process, you don’t have to provide any documents per se. You only need to disclose details about your income, debts, and credit history without completing an application or pursuing a loan directly. Securing a prequalification will usually only take a few hours or so.
The preapproval process is the more formal, official, and hard inquiry into what a lender will actually give you in terms of a home loan. This step involves proving financial history, employment, and credit details, along with the completion of a loan application. This amount is an official loan amount you could get and will only be “good” for a certain amount of time. Securing a preapproval could take up to ten days.
What You Need to Get Prequalified
Because <a href="https://www.bankofamerica.com/mortgage/learn/mortgage-prequalification/">mortgage prequalification tends</a> to be the less formal of the two pre-mortgage verification steps, you won’t necessarily need to bring supporting documents with you. The lender will, however, require you to disclose certain details about your financial situation to gauge how much borrowing power you might have during your house hunt.
Have some realistic numbers in mind before you connect with a lender. Know your credit score and history, with explanations for any negative marks that might show up there. You’ll also need to discuss your household income, including your frequency of pay and steady work history. A lending agent might also ask you to summarize the value of any assets you have, including investment or retirement accounts, vehicles or other property you own, and bank account balances. It’s also ideal to have a rough estimate of outstanding debts you currently have across loans, credit cards, or otherwise.
Since mortgage prequalification relies on self-reporting and is more of a soft assessment of your borrowing power, you can also look to use a prequalified mortgage calculator to see how much a lender might consider prequalifying you for a loan. <a href="https://www.nerdwallet.com/article/mortgages/mortgage-prequalification-calculator">Nerd Wallet offers</a> one that will prompt you to provide the following details:
Annual Income
Preferred Mortgage Term
Preferred/Going Interest Rate
Credit Score Range
Verification of 2-year Employment History
Are You Saving for a Down Payment?
Have You Experienced a Foreclosure?
Monthly Recurring Debt Payments
Using this calculator, even as a best guess, will provide you with an idea of what a lender might officially prequalify you for and your monthly payment on that amount.
Reasons a Lender Might Say No
A lender might tell you no for a number of reasons. And remember, it’s not an official no to a loan since you’re only discussing lending options at this point. But it is recommended you heed the decline as an opportunity to explore what might need to be improved on your end before you officially move forward with a preapproval or a loan application directly. If you’re not able to get prequalified, you likely won’t be able to get preapproved either.
Here are some red flags that a lender might suggest being problematic, meaning you won’t be prequalified for a mortgage:
Recent change in employment
Insufficient income
Disclosed issues with your credit history
A poor credit score
Excessive debts incurred
Again, these suggestions on soft inquiry details you provided unofficially. So, if any of these areas of contention are actually better than you discussed, you might be <a href="https://www.homewayre.com/blog/how-to-get-prequalified-for-a-mortgage-the-first-time/">able to prequalify</a>. However, when you’re honest with your lender about these details, and you should be, the lender will be serving your best interest by telling you what areas of your lending ability will need a little work before securing your home loan.
What You Can Do to Improve Your Situation
If you’ve been told you can’t <a href="https://www.homewayre.com/blog/pre-approval-vs-prequalification-for-mortgage-whats-the-difference/">prequalify for a mortgage</a>, it could be a good thing. Without going through the more complicated loan application process or dinging your credit with an inquiry, you'll know precisely where you stand financially and can now take steps to improve your borrowing power. Start by assessing any red flags or reasons the lender said might hinder your chances of securing a mortgage. Here’s how you can make improvements based on the most common declines.
Job Change: You can’t do much to improve your job history if you’ve recently taken a new job. You can, however, ask to secure statements in your new role confirming projected earnings. You can also put together a past history of steady work that led up to this recent job change to support your claim of reliable, ongoing work and income.
Insufficient Income: If the lender doesn’t think you make enough money to prequalify for a mortgage, you can, of course, look to create new revenue streams for yourself. You might also explore adding co-signers or additional borrowers to the loan who do have more robust earnings.
Credit History: If you have delinquent payment marks or collection agencies on your credit history, you’ll want to take steps to have those items removed. Any accounts you’ve paid in full that might still appear on your report can be requested formally to remove to the reporting bureaus.
Credit Score: Lenders will all be different when gauging a credit score. If your score itself is deemed too low for mortgage prequalification, you can look for ways to improve it by paying off smaller debts, paying down balances, and closing unused accounts. You can also explore the various types of mortgages, with assistance for low-credit-score borrowers, like FHA loans, USDA loans, or VA loans.
Too Much Debt: A lender might decline you for a mortgage prequalification because you’ve disclosed having too much debt or outgoing payments every month. To improve your debt-to-income ratio, look to pay off any smaller debts entirely. You might decide it makes sense to consolidate your debts or sell off property or assets that contribute to your monthly expenses.
Be patient. Some of these improvements are going to take time, in some cases months, to turn around in your favor. Remember, it’s going to be better for you in the long run if you can be in the best financing position before attempting to buy a Lehigh Valley home. Don’t rush it if you can create a timeline to make improvements that might benefit you later.
Getting Serious About Home Buying
Once you’ve had a chance to make some changes to your finances, you can always go back to the lender and discuss prequalification with those improvements. And because prequalifications are still estimates and not hard inquiries, you can shop around with various banks and brokerages to discuss your options. When you are able to secure mortgage prequalification, you’ll typically receive a “prequalification letter” that you can then share with your real estate <a href="https://www.homewayre.com/blog/how-to-get-the-seller-to-pay-for-closing-costs/">agent or property seller</a> to demonstrate your seriousness about buying. It won’t carry the same emphasis or weight as a preapproval, but it will certainly signal to the sellers that you’re financially prepared to make an offer that will likely be approved.
With your mortgage prequalification in hand, you can then reach out to one of the Homeway Real Estate agent professionals to help you start looking at <a href="https://www.homewayre.com/communities/">Lehigh Valley properties</a> for sale. Because you’ll have a loan amount in mind, our agents will make sure to narrow your search to only those properties that can realistically fit your budget.
Have your mortgage prequalification letter? Let <a href="https://www.homewayre.com/buyers/">Homeway Real Estate</a> start finding your dream home!2022-04-20T06:00:00-07:002022-04-19T08:27:40-07:00Alex Lopeztag:homewayre.com,2012-09-20:8805Preapproval vs. Prequalification for Mortgage: What’s the Difference?<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_17.jpg" width="1920" height="1080" />
Buying a home in the Lehigh Valley right now is an incredibly sound investment. The market is a flurry of sellers and buyers, making it attractive to anyone who’s been on the fence about making a move. But the house shopping and buying process can be complex, especially if you’re a new homebuyer. One key way to ensure your house hunting results in a seamless sale and transaction involves preparation before you even begin to search homes for sale.
Get your finances in order before you start venturing to open houses. You don’t want to waste time attending showings of homes that don’t fit your budget. And it’s certain heartbreak when you fall in love with a property that you find out later your bank says you can’t have. To prevent this from happening, homebuyers should consider getting prequalified for a mortgage or, in some cases, preapproved for a mortgage before setting foot into any home for sale.
So, what’s the difference between preapproval and prequalification? The two are not the same, although they do have similar steps and provisions. Here’s what every Lehigh Valley homebuyer needs to understand <a href="https://www.homewayre.com/blog/how-long-does-it-take-to-prequalify-for-a-mortgage/">about preapproval and prequalification</a>. Armed with these details, you can make the best decision based on your timeline to move, borrowing power, budget, and preferences.
Definition of Mortgage Prequalification
A mortgage <a href="https://www.experian.com/blogs/ask-experian/pre-approved-vs-pre-qualified-whats-the-difference/">prequalification is a general process</a> for getting estimates from potential lenders about what you’re more likely able to borrow to finance a home purchase. Anyone ready to buy can venture in to discuss lending options loosely based on credit scores and household income. With these estimates in mind, you can begin sifting through available homes for sale that fit with your estimated borrowing budget.
Definition of Mortgage Preapproval
A mortgage <a href="https://www.bankofamerica.com/mortgage/learn/mortgage-prequalification/#:~:text=Getting%20preapproved%20is%20a%20smart,your%20purchase%20of%20the%20home.">preapproval is a far more in-depth</a> process leveraged by homebuyers who are ready to complete an official application for a mortgage. Getting a mortgage preapproval is about as close to getting an actual mortgage without a purchasing contract. The application process is thorough and far more involved than a general estimate, prequalification process. Preapprovals also have term limits, and most lending amounts are accurate for a period of 90 days.
Benefits of a Mortgage Prequalification
Because <a href="https://www.homewayre.com/blog/how-to-get-prequalified-for-a-mortgage-the-first-time/">a mortgage prequalification</a> is more of a soft inquiry into your finances, you can have more flexibility in taking your time to shop for a new house and pull the trigger on making an offer. Having a general prequalification estimate isn’t going to be a guarantee of what you can borrow. Rather, it’s a great way to get a lending range to have in mind as you visit various homes for sale in the Lehigh Valley.
Benefits of a Mortgage Preapproval
When you take the additional steps to secure a mortgage preapproval, you’re making more of a commitment to the homebuying process. With the increased prerequisites involved with the application, you can expect a more precise result in lending eligibility. And when you know exactly what you can borrow, you can narrow your home search down even further. When you find a Lehigh Valley home you love, you already have a preapproval in place that will allow you to make a serious offer. When <a href="https://www.homewayre.com/blog/how-to-get-the-seller-to-pay-for-closing-costs/">sellers have multiple offers</a>, they’ll often work with buyers who have preapprovals in place over those who have not taken any lending exploration measures, too.
What Documents Are Required for Mortgage Prequalification?
When you go in to talk to different lenders to discuss mortgage prequalification, you won’t need to bring much with you in the way of documents. Most lending institutions only rely on credit history and income to offer general borrowing estimates. However, to receive the most accurate mortgage estimates, you can bring additional documents to support your current financial situation.
For best estimate results, consider bringing with you:
Proof of income (paycheck, tax return)
Credit check to examine borrowing eligibility
Basic banking account information
Your ideal down and monthly mortgage payment in mind
What Documents Are Required for Mortgage Preapproval?
Going in for the mortgage preapproval means getting all of your supporting documents together. To lock in a loan amount and to complete the application process, it’s best to have a collection of information to verify everything from your identity to your average household income. This checklist may not be exhaustive, but it represents the most common things you’ll need to have with you when you go in to talk about mortgage preapproval.
At the very least, bring documentation outlining:
Proof of income (recent pay stubs)
Credit checks to verify borrowing eligibility
All bank statements and account numbers
Your ideal down and monthly mortgage payment in mind
W2 statements
Tax returns for any personal and business taxes over a two-year lookback period
How to Decide Which Pre-Mortgage Step Is Right for You
In order to officially decide whether you should opt for a mortgage prequalification or a mortgage preapproval, start with your homebuying preferences. Do you have a narrow timeline to move, or are you in a hurry? If time is of the essence, a mortgage preapproval will help streamline things. However, if you’re casually looking for a new property, you can casually get a mortgage prequalification to help narrow your search.
Think about your finances, too, including affordability, cleaning up your credit history, or saving up for a down payment. These all will affect your borrowing power. So, any improvements you make will affect your loan. If you’re still working on getting your finances in order and anticipate changes, a mortgage prequalification estimate might be your best bet.
What Not to Do Once You Have a Mortgage Prequalification or Preapproval in Hand
Whether you secure a mortgage preapproval or just get a mortgage prequalification estimate, there are a few things you don’t want to do to jeopardize your borrowing position. The goal is to secure a loan and buy a new home. Now’s not the time to make some of these mistakes that might affect how much you can borrow.
Don’t apply for new credit cards.
Don’t make significant purchases, including recreational vehicles, cars, etc.
Don’t co-sign on anyone else’s loan.
Don’t fall behind on any of your recurring bills.
Don’t make major employment changes that might impact your income projections.
Don’t deplete your savings in any way, if possible.
What to Do Once You Have a Mortgage Prequalification or Preapproval in Hand
Regardless of which you choose to get first, once you have an idea about what you can borrow, you can begin house hunting in the Lehigh Valley. And if you want a seamless experience with finding, visiting, and negotiating a home purchase, you need a local expert to help. <a href="https://www.homewayre.com/buyers/">Homeway Real Estate</a> can be your guide through every step of the process. With your prequalification or preapproval, our professionals can ensure you only consider those properties that fit your budget and timeline.
Now that you have definitions and a better understanding of the differences between a mortgage prequalification and a mortgage preapproval, you can make sound decisions about how to move forward with your homebuying process. Don’t forget to contact a <a href="https://www.homewayre.com/">Homeway Real Estate agent</a> to help you with your search, too. Having the right professional to walk you through every phase of the Lehigh Valley homebuying process will ensure you have the best experience.2022-04-13T06:23:00-07:002022-04-13T06:22:52-07:00Alex Lopeztag:homewayre.com,2012-09-20:8734The Step-by-Step Guide to the Documents Needed for Mortgage Prequalification<img src="https://assets.site-static.com/userfiles/2131/image/step_by_step.jpg" width="1920" height="1080" />
We’ve shared a lot of information regarding the benefits and advantages of having a <a href="https://www.homewayre.com/blog/how-long-does-it-take-to-prequalify-for-a-mortgage/">mortgage preapproval or prequalification</a> before you begin looking for a property to buy. If you haven't read through some of those conversations yet, take a look. There are key differences between prequalification and preapproval you'll want to know about, and as you might have guessed, lenders all have varying requirements, too.
Today, we’ll take that discussion to the next level by sharing a complete list of documents and details you’ll need to be able to provide in getting those prequalification and preapproval letters.
While prequalification is less formal than a preapproval and typically requires less “proof,” not all of these exact documents will need to be on hand. However, the next logical step beyond prequalifying is mortgage preapproval and loan applications, both of which will require you have these items organized and prepared. So, getting ahead of the lending requirements now will also serve you well.
Without further ado, here’s the step-by-step guide you need to assemble all the prequalification and preapproval documents you'll more than likely need to ultimately secure a loan for your new Lehigh Valley home.
Personal Identification
This might sound like an absolute no-brainer, but you’d be surprised how many people show up to apply for the loan with an expired license or without their social security card. Take a minute to verify that you have non-expired forms of ID for yourself and/or anyone else who might be on the mortgage with you. ID cards, driver’s licenses, social security cards, and passports are typically all acceptable forms of ID.
Be prepared with at least <a href="https://www.rocketmortgage.com/learn/mortgage-preapproval-checklist">two viable forms of identification</a>. And in some instances, the lender may additionally ask for proof of residency, which can be satisfied by presenting a utility bill in your name, displaying your current address. Again, not all mortgage prequalification steps will be this in-depth. But it’s best to go ahead and prepare ahead of time because you likely will need these pieces of ID later in the homebuying process.
Credit Report
Any lender ready to move forward with your loan application will want to use your social security number to access your credit report. It’s additionally a good idea to print a copy out for yourself before you seek a mortgage prequalification, so you can see what items are showing up in your history. Now’s your chance to clean up any listings that need correcting, too. If you still have debts on your report, for example, that have been paid off, you may want to request a statement from the creditor proving your final payment. And know that when lenders review your credit report, they’ll look to verify what kind of borrower you are in terms of on-time payments, balanced debt-to-income ratios, and overall credit scores.
Proof of Income
If you’re a <a href="https://www.nerdwallet.com/article/mortgages/documents-needed-for-a-mortgage-preapproval">W2 wage earner</a>, you’ll want to prepare for the mortgage preapproval process by collecting copies of your past W2s to verify your income. These documents outline any bonuses, overtime, and differential pay that lenders want to take into consideration. You may also still need to provide recent and/or year-end pay stubs. If you get your pay via direct deposit, your pay statements will work in lieu of a traditional check stub.
If you’re self-employed, either as a business owner, contractor, or freelancer, you’ll want to have your year-end profit and loss statements and 1099s on hand. If you use software to manage your finances, like QuickBooks, you can usually provide those finalized statements as proof of income. And if you are operating as a business entity, get your company structure details prepared, too, including S-Corp, Sole-Proprietorship, or Federal ID documentation.
As part of your document preparation effort to prove your income to a potential lender, be mindful of other means of earning or revenue channels, like real estate investments or passive income streams. Assemble documents that support these additional revenue sources, including bank statements.
Tax Documents
Most mortgage lenders and brokers will also require you to provide up to two or three years’ worth of tax documents. These won’t be needed right away during mortgage prequalification, but they can be helpful. And when you’re officially ready to move forward with your loan application, you’ll need these tax documents to prove your year-over-year earnings potential. If you can’t find your official documents, you can always connect with your tax preparer for copies of years past.
Bank Statements for All Accounts
Speaking of bank statements, you should probably go ahead and assemble those, too. Bank statements help lenders see a snapshot of your current financial solvency. And they also can portray a big-picture view of your assets. Most lenders will tell you how far back to go, although most only request 60-days’ worth of statements for every account with your name on it.
It’s also recommended to prepare documents that demonstrate any retirement or brokerage accounts you might have. IRAs, CDs, stocks, and 401(k) statements will all have monthly and/or quarterly statements you can use as proof to a lender. Don’t leave out any pages of those statements, either, even if they’re blank. Again, these documents will support your assets and have an overall impact on your potential borrowing power.
Create a Complete Document List of Monthly Debts
In addition to proving your earning potential, you also need to prepare documents that point to your monthly debts. While reviewing your debt-to-income ratio isn’t usually part of the mortgage prequalifying process, it will be critical to the preapproval and final loan approval. As you assemble your documents, look for specific fixed debts, not incidentals like transportation, groceries, or utilities. And any of those with agreed payment plans in place will need to be documented, as well. Here’s a common list of fixed debts that might apply to you:
Mortgage or Rent Payments (lease or current mortgage statement)
Auto Loans (creditor statements)
Student Loans (institution statements)
Credit Card Debts (two months of statements)
Personal Loans (lender statement)
Home Insurance (monthly or annual statement)
Homeowner Association Fees (HOA statements)
Medical Bills (health institution statements)
Make sure that every document representing these debts includes the name of the creditor, along with creditor contact information, the total amount owed, and what payments are due monthly. These monthly expenses will help a lender verify what type of mortgage payment you are likely to afford.
Proof of Tenancy and References
If you’re currently renting your home, you’ll want to talk to your landlord about getting a written reference documenting your tenancy. Prepare a copy of your current lease, of course. But you’ll want potential lenders to know that you’ve paid rent on time consistently. And a landlord's written reference is a great way to demonstrate your ability to uphold your financial responsibilities as a tenant. Additionally, get the necessary documentation to prove at least 12 months’ worth of rental payments. Lenders won’t just take your landlord’s word for it, so documenting rent payments with your bank statements or rent voucher stubs and invoices can all help provide the proof you need.
Documenting Gifted Funds
It’s not all that uncommon for friends and family to contribute to your new-house fund. Housewarming gifts, wedding gifts, and parental financial support can all play a key role in your ability to afford a down payment. But if you’re receiving financial assistance in the form of a gift, you’ll want to document the excess cash. Lenders will need proof that any funds received are, in fact, gifts without expectations of payback. Especially if you’re exploring <a href="https://www.homewayre.com/blog/how-to-find-the-right-first-time-homebuyer-program-for-you-in-pa/">first-time homebuyer assistance programs</a>, gifting can be complicated without proper documentation. A gift letter will need to be drafted and should include:
The donor’s name and contact details, as well as their relationship to you
Your name and contact information as the recipient of the gift
The total of the gift, along with the date it was gifted
An outline of intentions for how you, as the recipient, plan to use the funds
Confirmation that the funds represent a gift, without expectation of repayment
Signatures of both the donor and the recipient
Other Documents You Might Need
There might be additional documentation requirements, depending on your individual situation. For example, if you’re a widow or widower, you may need to provide death certificate copies. If you’re divorced but your name is still on joint debts and assets, it’s best to provide divorce documentation. And should you be responsible for making child support or alimony payments, you’ll need to document those terms and payments, as well. Additionally, if you have foreclosures or bankruptcies in your history, you’ll want to provide copies of all related documentation, including terms, payments, and timelines.
Co-Signer Information
If you plan to include a <a href="https://www.homewayre.com/blog/why-consider-lehigh-valley-homes-for-sale-with-an-in-law-suite/">co-signer on your loan</a>, you’ll need to prepare identification, income, debt, and credit information for the lender, as well. Discuss your document preparation plan with your co-signer so they have the time to collect and assemble their necessary proof of lending eligibility.
Remember, when you seek to get a mortgage prequalification, you won’t necessarily need all these documents. Most prequalification steps are based on estimates of income, debts, and finances. But when you’re ready for preapproval and official application for the loan, this is the list you’ll want to reference. And if you need help finding the Lehigh Valley home of your dreams, you can always count on the professionals at <a href="https://www.homewayre.com/">Homeway Real Estate</a> to guide you!2022-04-06T06:00:00-07:002022-03-31T12:00:52-07:00Alex Lopeztag:homewayre.com,2012-09-20:8708How Long Does It Take To Prequalify for a Mortgage<img src="https://assets.site-static.com/userfiles/2131/image/how_long_does_it_take_.jpg" width="1920" height="1080" />
Before you start house-hunting for your dream home, you’ll need to prepare for the mortgage. And in today’s incredibly hot housing market, having your lending ducks in a row ahead of time is highly recommended. But what should you consider first, and what should you do <a href="https://www.homewayre.com/blog/how-to-get-prequalified-for-a-mortgage-the-first-time/">to prequalify for a mortgage</a>? What documents need to be provided? And is there a difference between prequalifying for a mortgage and securing a preapproval for a mortgage? We’ll take the guesswork out of this critical first step toward homeownership.
Understanding the Differences Between Prequalification and Preapproval
These two terms do often get tossed around interchangeably. But it’s important to know there are <a href="https://www.bankofamerica.com/mortgage/learn/mortgage-prequalification/">clear distinctions between the two</a> in terms of how you prepare and what each provides for you as a homebuyer preparing to look at Lehigh Valley properties.
The Prequalification: During the prequalification process, you’ll secure general estimates outlining what you might be able to borrow. Based on income and credit history, this is not considered a hard loan application. Instead, it’s intended to provide you with <a href="https://www.homewayre.com/blog/are-the-cheap-houses-for-sale-in-lancaster-pa-worth-it/">an affordability range</a> to help narrow your home search.
Perks – You can start looking for a house with an idea in mind of what you can spend
Process – Provide basic income and credit history information to a lender
Documentation - Answer any questions, provide pay stubs and identifying information
The Preapproval: The preapproval process is more formal and is the hard loan application step. It will require a more thorough and rigorous look at your borrowing history and potential. And once approved, it’s as close as you can get to actually signing for a mortgage without actually signing for a mortgage. This commitment will provide you with a hard number for what you can borrow, and it’s a number with a shelf-life of 90 days.
Perks – You can immediately make an offer on a house you want to buy
Process – Submit the required information and wait up to 10 days for determination
Documentation – Provide proof of income, credit history documentation, and complete an application
Additionally, as you decide which pre-mortgage step is right for you, there are important disclosures to know. Neither prequalification nor preapproval are a commitment to lend. And to move forward with either, more precise information will be needed regarding the home you intend to purchase and final execution steps.
Benefits of Prequalifying for a Mortgage
There are significant benefits when you <a href="https://www.credible.com/blog/mortgages/how-long-does-preapproval-take/">prequalify for a mortgage</a>. For starters, you can save yourself loads of time by only pursuing Lehigh Valley homes within your estimated price range. You’ll save yourself the heartache, too, of falling in love with a property that’s too expensive for your budget. You’ll also be effectively shortening the time it takes to find a house and make an offer since you’ve technically taken the first step towards securing a loan.
Prequalifying for a mortgage can additionally work to your benefit when it comes time to make an offer on a property. Sellers will know you’ve taken the first steps toward validating your borrowing power, so they will know you’re serious about buying. If the seller receives various offers, but only one is prequalified for a mortgage, it’s more likely that the seller will accept that more serious offer over the others who have yet to begin the lending process.
Another key advantage and reason to explore a prequalification process now is you’ll have time to explore your lending options and compare. And if there is an issue or setback with one bank regarding your prequalification, you’ll want to know now and not later when you’re trying to make an <a href="https://www.homewayre.com/blog/where-to-buy-ranch-homes-for-sale-in-allentown-pa-for-the-most-value/">offer on a new house</a>. Taking these steps now, before house-hunting, will allow you to address any potential issues, like cleaning up your credit report or securing payoff statements, to position you with your best lending capability.
What to Expect with Regard to Prequalification and Preapproval Timelines
Whether you move forward with a prequalification or a preapproval process for a mortgage, you’ll need to consider the average time it takes to properly secure each. Here’s what you need to know about how long it takes, <a href="https://www.credit.com/blog/how-long-does-it-take-to-get-approved-for-a-mortgage-113416/#:~:text=Getting%20a%20prequalification%20letter%20takes,%2C%20debt%2C%20and%20down%20payment.">from prequalification and preapproval</a> to finalizing a mortgage on a new Lehigh Valley home.
The Mortgage Prequalification Letter
Getting a prequalification letter with an estimate of what you might be able to borrow can take anywhere from one to three days. Because not a lot of documentation is required at this step, and you’ll likely just estimate your income and credit history, the prequalification letter can happen fairly quickly.
The Mortgage Preapproval
When you’re really serious about taking steps toward securing a loan, the preapproval process is your best bet. But because it’s an official application, with requirements for proof of income, comprehensive review of your credit history, and outstanding debts, it can take much longer than a prequalification. For some homebuyers, it could take as little as three days. For others, it could take several months. Depending on how clean or complicated your financial history is and how quickly you can assemble the necessary docs, your timeline to secure a mortgage preapproval will vary. It will also depend on your lender’s document list, which can also vary but usually includes:
Social Security Card
Driver’s License
Two Months of Bank Statements
30 Days of Pay Stubs
Two Years of W2s
Two Years of Federal Tax Returns
Finalizing the Mortgage Approval
When you’ve managed to find a Lehigh Valley home you love and your offer is accepted, you can follow through on what you’ve started for the lending side of the transaction. The final mortgage approval will require the remaining documentation and information supporting your loan amount, interest rate<a href="https://www.homewayre.com/blog/how-to-get-the-seller-to-pay-for-closing-costs/">, and extra fees</a>. But other steps are also required at this phase, including the lending institution securing an appraisal of the property to make sure the loan amount needed is within reasonable market value. Because of these additional steps and the variances that may come up, you can expect roughly two to three weeks of time to get it done.
Nothing about buying a house is going to happen overnight. However, you can take advantage of these few prequalification and preapproval steps to help make the process timelier. And being prepared will always be the most efficient way to go. Don’t forget, too, that having the right real estate agent in your corner will also shave days, weeks, and even several months off of your homebuying experience. The right partner will know precisely where to find potential Lehigh Valley gems within your affordability range. Let <a href="https://www.homewayre.com/blog/">Homeway Real Estate be your guide</a> when it’s time to find the home of your dreams in the most efficient way possible.2022-03-30T06:48:00-07:002022-03-30T06:46:16-07:00Alex Lopeztag:homewayre.com,2012-09-20:8650How to Get Prequalified for a Mortgage the First Time<img src="https://assets.site-static.com/userfiles/2131/image/prequalified_mtg.jpg" width="1920" height="1080" />
If you’re <a href="https://www.homewayre.com/blog/the-most-popular-type-of-lehigh-county-homes-for-sale/">exploring Lehigh Valley homeownership</a> for the first time, you’ll often get random advice about prequalifying for your mortgage before you start house hunting. But what does that mean? And is it the same thing as getting a mortgage preapproval? First-time homebuyers have lots of uncertainty to navigate, and it can be intimidating to even know where to start. You likely have questions about what steps to take to ensure a smooth purchasing experience. And getting prequalified for the mortgage is just one of the many tips you can expect to get. If buying a Lehigh Valley home is on your horizon, here’s what you do when you’re ready to get prequalified for the first time.
What Is Mortgage Prequalification?
Prequalification is a process in which home buyers get general estimates of what they are likely able to borrow. It usually is based on your credit history and income. It’s not a hard loan application, so prequalification estimates can vary when it comes time to move forward with a purchase. However, homebuyers can gauge what price range of homes they can afford, which will help narrow their home search. And when those buyers decide to make an offer, <a href="https://www.bankofamerica.com/mortgage/learn/mortgage-prequalification/">having mortgage prequalification</a> can send a signal to the sellers that they’re serious about making a home purchase.
What is Mortgage Preapproval?
A mortgage preapproval is very different from a mortgage prequalification in that it requires home buyers to complete an actual mortgage application. It’s like getting as close to securing a mortgage, without getting a mortgage, before a purchasing contract is even in place. This process will require a credit check and verifying documents about finances and income. Once a buyer is preapproved, he or she will receive a formal preapproval letter, which serves as more of an offer than a mortgage commitment. And these are good for 90 days, allowing the buyer time to then pursue house hunting. Much like a prequalification, the mortgage preapproval lets sellers know the buyer is serious about committing to a purchase.
What Personal and Household Information Should You Be Prepared to Provide?
It’s important for Lehigh Valley home buyers to know the differences between these two processes. Typically, the prequalification will take less time to secure and fewer steps than the mortgage preapproval. But here is what you can generally expect to have prepared before securing either.
Mortgage prequalification usually means having:
Proof of income (current and over time)
Credit check to verify borrowing eligibility
General banking information
An ideal down payment and monthly mortgage payment in mind
Mortgage Preapproval usually requires:
Proof of income (copies of pay stubs)
Credit check to verify borrowing eligibility
Bank statements and account numbers to gauge liquidity
An ideal down payment and monthly mortgage payment in mind
W2 statements
Tax returns for personal and business taxes for a lookback period of two years
What Action Steps to Take for Prequalification for the First Time
When you’re finally ready to get prequalified for a mortgage for the first time, there are steps you’ll want to take first to ensure you get the most accurate and timely estimate of your potential borrowing power. Here’s where you can start to make sure all your ducks are in a row.
Check Your Credit Score and History
Start with checking your credit score and <a href="https://www.nerdwallet.com/article/mortgages/how-to-get-a-mortgage-preapproval">reviewing your credit history</a>. And even if your score is favorable, it’s best to analyze what’s on your report in case there are paid debts still showing or fraudulent activity that could affect your ability to borrow. You’re always entitled to one free annual credit report from the three major bureaus and can do so by visiting <a href="http://www.annualcreditreport.com/">www.AnnualCreditReport.com</a>. You can also visit these sites:
FICO Score
Credit Karma
Experian
TransUnion
Equifax
Depending on the type of home loan you plan to pursue, there can be <a href="https://www.homewayre.com/blog/first-time-homebuyer-with-bad-credit-in-pa-to-buy-or-not-to-buy/">minimum credit score</a> requirements to consider. Every home buying situation is going to be different. However, these are some of the minimum scores FICO and Vantage Score suggest buyers know:
Conventional Loans – 620
Jumbo Loans – 680
FHA Loans – 500-580 (depending on down payment percentages)
VHA Loans – No min credit score required, but 620 is preferred
USDA Loans – No min credit score required, but 420 is preferred
Sit Down with Your Current Finances
Even though getting prequalified for a mortgage for the first time won’t require all the hard documentation of <a href="https://money.com/how-to-get-preapproved-for-a-home-loan/">income and household finances</a>, it’s still recommended that you sit down and review your affordability situation. You don’t want any surprises. Ideally, you’ll want to have a precise understanding of what you can afford to pay each month for a mortgage and estimate how much savings you’ve stashed away for a down payment. Based on your comfort level with your finances, you might also recognize at this stage of the process that it makes sense <a href="https://www.homewayre.com/blog/how-to-find-the-right-first-time-homebuyer-program-for-you-in-pa/">to explore grants and assistance programs</a> to help.
Employment Status and History
If you’ve been at a new job for a short amount of time or have significant gaps in your immediate employment history, it might be more challenging to secure official mortgage approvals. Lenders will need to know you have a steady income to afford monthly mortgage payments. And anyone who is self-employed will want to take a few extra steps to prove solvency in the business and the ability to generate regular income, as well. In either scenario, be prepared to document and explain your financial situation to your lender to make sure that you know all of your options and eligibility steps before you begin looking for a house to buy.
Don’t Go Buy Anything Big
If you’re planning to buy a home in the Lehigh Valley and are ready to explore prequalification for a mortgage, now is not the time to be making big purchases. Lenders will intently look at your debt-to-income ratio to gauge how much of your income is already allocated to go out each month and make predictions about what you can afford. If you have more debts on the books than you have income coming in, it can be detrimental to your mortgage borrowing power. Most lenders frown on any ratio over 50%, although different loan types have varying requirements.
Know Your Loan-to-Value Ratio
This set of numbers is what lenders use to estimate how much risk they’re taking to give you a loan. It calculates the relationships between the market value of the property you’re looking to buy and the loan amount you need to borrow to buy it. It will also help them determine whether or not mortgage insurance will need to be added. Every mortgage will present a qualifying LTV ratio. But again, depending on the loan and your situation, those actual percentages may vary.
Assembling Your Documents
Once you have a clear and concise snapshot of your potential borrowing power, your finances, and your affordability benchmarks, you can assemble your documents and head to the bank. Of course, you might also explore credit union options or talk to your real estate professional about resources to help you explore grants and assistance programs. There are also online preapproval resources, like Quicken Loans or Better Mortgage, that promise immediate approval responses. If it’s your first time, it’s best to remember to ask any questions along the way and be honest about your financial situation.
Now That You’re Prequalified, What’s Next?
When you’re prequalified for a mortgage, you’ll have a realistic idea of what you can spend on a new Lehigh Valley home. Armed with that information, you can work with your real estate agent professional to describe what your dream home, within your affordability parameters, might look like. And as you venture out to open houses and to take tours of Lehigh Valley area homes, be mindful of your <a href="https://www.homewayre.com/blog/how-do-i-pay-for-closing-costs-10-things-to-consider/">prequalified mortgage budget</a>. Should you find your ideal home to buy, it’s still best to get a home inspection to make sure you’re not blindsided by major repairs or condition improvements either, which will affect your bottom line.
When you’re buying a home in the Lehigh Valley for the first time, there’s a lot to take in before you even start your house-hunting journey. Consider mortgage prequalification or mortgage preapprovals to get an understanding of what your lending capacity might be first. And when you’re ready to partner with a local real estate expert, who can also offer lending insights and point you to local Lehigh Valley resources, let <a href="https://www.homewayre.com/blog/category/buying-a-home/">Homeway Real Estate</a> be your first call!2022-03-23T06:00:00-07:002022-03-21T08:36:33-07:00Alex Lopeztag:homewayre.com,2012-09-20:8592How to Get the Seller to Pay for Closing Costs<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_seller_pays.jpg" width="1920" height="1080" />
When you buy a Lehigh Valley house, you’re not just responsible for the listing price of the property itself. You’ll additionally need to budget for other costs associated with the home purchasing process, like the home inspection, the title search, any brokerage fees, and don’t forget your down payment. But another set of costs that often is overlooked and comes with a bit of sticker shock <a href="https://www.homewayre.com/blog/how-do-i-pay-for-closing-costs-10-things-to-consider/">are the closing costs</a>.
As a buyer, you’ll need to understand how closing costs are calculated and get estimates ahead of time to prepare. And when closing costs can range anywhere from $5,000 to $20,000, it’s a significant chunk of change to arrange for paying.
What many buyers don’t realize, however, especially first-time buyers, is that there are ways of avoiding those hefty closing costs out of pocket. In some scenarios, you can even get the seller to pay closing costs if you know how to navigate the process. Here’s what every Lehigh Valley homebuyer needs to know about closing costs and how to go about getting the sellers to pay for them.
Understanding the Basics of Closing Costs
What are <a href="https://www.rocketmortgage.com/learn/closing-costs">closing costs all about</a> anyway? Typically paid by the buyer, these costs are charged by lenders as payment for creating and processing your home loan. This lump sum, due at closing, represents expenses associated with title searches and property appraisals. Closing cost averages and requirements will vary across the country but are usually within the 3%-6% of the listing price range. The type of mortgage and home loan you get will also impact the closing cost totals.
Closing costs, which can often be anywhere from $3,000 to $6,000 depending, are not included in any down payment you have already had in savings. But closing costs can be negotiated. And we’ll get into the advantage of seller concessions here in a bit. As a best practice, it’s always a good idea for homebuyers to prepare for these closing costs ahead of time, in addition to their down payment, just in case seller concessions are not available.
Some Homebuyer Loans Allow Closing Cost Financing
If you’re a first-time homebuyer, closing costs might be able to roll into your loan. Conventional loans likely won’t allow it. However, FHA loans and VA loans do have provisions to help finance closing costs. There are also grants available for first-timers to explore, designed to help with the upfront costs associated with <a href="https://www.homewayre.com/blog/should-you-buy-fixer-upper-homes-for-sale-in-lehigh-valley/">purchasing a Lehigh Valley property</a>.
What Are Seller Concessions?
When you hear your agent or lender talk about seller concessions, they’re typically referring to any costs the home seller may agree to pay as part of the process of selling their property. In general, seller concessions represent a percentage of or the entirety of closing costs or other expenses. Some sellers might agree to pay for the transfer of taxes. Others might agree to cover half of the closing costs.
As a buyer, it’s important to remember seller concessions are a trade-off, not a gift. Sellers won’t pay your closing costs without getting something in return. Your lender can help you better understand the nuances of your home purchase figures to know what you’ll be negotiating when you’re able to leverage seller concessions.
How to Get Your Sellers to Consider Paying for Closing Costs
Again, sellers won’t offer concessions for free. And there are ways to ask the sellers in your deal to consider concessions. Here’s what <a href="https://www.homewayre.com/blog/the-pros-and-cons-of-first-time-home-buyer-pa-grants/">Lehigh Valley homebuyers</a> should know.
Paying the Full Asking Price for the Property
Making a lower or low-ball offer isn’t going to help you with seller concessions. Instead, consider paying full price for the property, asking for the sellers to help offset closing costs. Be reasonable with your ask and know the best way to get what you want is to also offer something the sellers will want, like the full asking price.
Make Sure You’re Ready to Move Forward, without Delay
It’s best not to ask for seller concessions if you don’t at least have your own ducks in a row. Sellers will be more apt to work with you if you’re ready to close right away, with asking for extensions or more time to get the paperwork in order. Have all of your preapprovals in place and be ready to schedule prompt inspections. This signifies to the seller that you’re serious and motivated, albeit aside from your one seller concession request for help with closing costs.
Don’t Contradict the Market
If it’s a seller’s market, meaning there is a line of buyers right behind you eyeing a listing, asking for sellers’ concessions might not work in your favor. It’s not necessarily doing your sellers any favors by agreeing to closing costs. And when there are other offers on the table, demanding concessions might work against you. To know what scenario you’re in with your sellers, talk to your real estate agent who can coach you on what is and isn’t an acceptable ask right now, based on your current market.
Avoid Making Unreasonable Demands
If you’re primarily looking for your sellers to cover closing costs, avoid making other demands that might sour the deal. For example, if there are repairs or conditions that didn’t fare well during the home inspections, it’s reasonable to ask the sellers to offset those costs of repair or make repairs themselves. But asking for condition repairs and closing costs might be too much to ask, depending on the situation. Let your expert real estate agent guide you on the negotiation process to make sure you’re asking for the most reasonable seller concessions and within the best chances of getting your closing costs covered.
A Percentage of Closing Costs Is Better than Zero Dollars
If you’re buying a home for $250,000, with 3% representing closing costs, or $7,500, be open to partial <a href="https://www.moneycrashers.com/seller-pay-closing-costs-home/">closing cost seller concessions</a>. Because you’re essentially asking the sellers to do you the favor, don’t get greedy or over-demanding. Be flexible and negotiable, even with closing costs. Getting $3,500 of that $7,500 bill is better than having to come up with $7,500 on your own.
When Is a Good Time to Ask for Seller Concessions?
Your timing matters when trying to get sellers to cover your closing costs. And there are certain circumstances in which asking for seller concessions make the most sense. Here are a few scenarios that might apply to you now, that warrant a proper inquiry into asking your sellers for help with closing costs.
Seller Concessions to Prevent Draining Your Cash Reserves
If you’re concerned about cutting yourself short financially, especially considering all the other out-of-pocket costs you have in purchasing your home, asking for seller concessions makes sense. Your reason could be to avoid becoming cash poor
Staying within Preapproval Limits
If you’ve secured preapproval before beginning your home search, you’ll have price limits and budgets to maintain. It might make sense to ask for seller concessions to help you stay within those preapproval limits.
Reasonably Priced Homes
Seller concessions can make sense when the listing price of a home is reasonable already. Because getting sellers to pay for closing costs can, in turn, result in adding to your mortgage amount, it can also impact your loan, interest, and down payment. Adding closing costs to the purchase price, as a sellers’ concession, needs to be within the home’s value, which is best accomplished when the listing price is reasonable.
Having the Right Guides to Help
One common denominator throughout every one of these situations pertaining to sellers’ concessions is having the right guides to help you during your homebuying journey. An experienced real estate professional, for example, can help you navigate the market and the negotiations with your best interest in mind. Knowing just what to ask for and when to ask for it can improve your chances of getting a seller to pay for your closing costs.
If you need a Lehigh Valley partner, let <a href="https://www.homewayre.com/blog/category/buying-a-home/">Homeway Real Estate</a> be your guide. Our professional team can help you find your dream home and every step that comes thereafter!2022-03-14T08:33:00-07:002022-03-14T09:36:04-07:00Alex Lopeztag:homewayre.com,2012-09-20:8480How Do I Pay for Closing Costs? 10 Things to Consider<img src="https://assets.site-static.com/userfiles/2131/image/closing_costs_.jpg" width="1920" height="1080" />
There is obviously no shortage of real estate advice out there offering tips for <a href="https://www.homewayre.com/blog/first-time-homebuyer-with-bad-credit-in-pa-to-buy-or-not-to-buy/">buying a new house</a>, how to prepare your home for listing, where to find financing, and moving tips for a seamless transition. But what about handling closing costs? Do you really know what to expect to pay on closing day? And are you aware of the various methods for paying for those closing costs?
If you’ve been wondering about how to pay for closing costs, keep reading. We’ll help shed light on what closing costs are all about, what you can expect, and a whole slew of ways to help you cover those closing costs.
1. What Are Closing Costs?
Closing costs are a <a href="https://www.forbes.com/advisor/mortgages/closing-costs/">real estate transaction term</a> that collectively refers to a host of various fees that buyers typically pay when purchasing a property. These fees generally represent the professional services involved in facilitating the transaction itself. People who are responsible for preparing the paperwork, documents, and processes are compensated using these fees. Closing costs are industry-standard expenses and can include:
Fees from any participating surveyors, appraisers, or loan processors involved in your transaction preparation
Your first official property tax bill covering the first six months of your occupancy of the property
The first year of homeowner’s insurance, applicable private mortgage insurance (PMI,) and title insurance
Any pay points you’ve chosen to pay in exchange for a better interest rate
2. How Much Should I Expect My Closing Costs to Be?
Of course, no two closing transactions are alike, and neither are closing cost amounts. But on average, lenders typically tell buyers to prepare two to five percent of their loan to put aside for closing. You’ll know what your closing costs are precisely when your Loan Estimate document is prepared from your lender. So, prepare ahead of time and engage with your lender to know what your closing costs are going to be.
But now you’re wondering, how do I pay for closing costs? Especially when you realize a $100,000 home purchase price could translate to a $2,000 to $5,000 closing cost bill, you’re going to be keen on exploring the various methods for covering those fees.
3. Paying for Closing Costs Outright
If you’ve been saving funds to buy a home in Lehigh Valley, you might have enough in cash reserves to pay for your closing costs outright. Lenders will want to look at two months of bank statements showing your balance, also known as “seasoning” funds. And there are legal guidelines that require those down payment and closing cost funds to be in your personal bank account for at least 60 days before accepting your plan to pay for closing costs outright.
Be sure to clarify if you can write a personal check from an account or if there are requirements for a certified check instead. And as an additional note, don’t cut yourself too short with your reserves, especially when it comes to covering any upcoming moving expenses and new household expenses.
For anyone who might be self-employed, there are provisions that allow you to transfer closing cost funds from a business account into escrow or to your personal account. Again, the 60-day “seasoning” rule will typically still apply. Your loan officer will be an ideal resource for questions you might have about your specific requirements.
4. Rolling Closing Costs into Your Mortgage
It’s not uncommon for Lehigh Valley homebuyers to roll closing costs in with the mortgage. If you’d prefer not to pay for closing costs outright, talk with your loan officer about the type of loan you have. There are generally budget-friendly options, <a href="https://www.homewayre.com/blog/how-to-find-the-right-first-time-homebuyer-program-for-you-in-pa/">especially for first-time homebuyers</a>, to add those closing costs to the mortgage total. The downside is that you’ll be paying interest on these closing costs over the term of your mortgage. Based on today’s home value averages, your monthly mortgage payment might increase $5 to $10 for every $1,000 you roll into the mortgage total. But if you’re trying to maintain cash reserves, incorporating the closing cost into your loan can be a great method.
5. Getting Credit from the Sellers
Seller concessions are another way to help pay for closing costs. For example, in a USDA, VA, or FHA loan, you can ask the home seller to pay part of or every last dime of the closing costs. If you’re in a seller’s market, where there are lots of offers on the table, this request might not be successful. In some real estate scenarios, it might make sense to make the request more attractive by offering a higher price for the home in exchange for them covering closing costs.
It's also essential to recognize there are maximum amounts of seller concessions that might apply to your specific loan situation. These guidelines involve the type of occupancy, i.e., primary residence, secondary home, or investment property, along with Loan to Value (LTV) percentages. Discuss these viable options with your real estate agent and lending partner to know what guidelines to which you need to adhere before making your offer.
6. Government Assistance for Closing Costs
If you’re hoping to find other methods for covering those closing costs, you might explore government assistance programs. There are local, state, and federal housing programs available to those who fall into certain homebuyer profiles. First-time homebuyers, low-income, moderate-income, and region-specific grants and forgivable loans might be able to help. Talk with your lender about these low-interest or forgivable programs, designed to provide the down payment and closing costs that sometimes deter homebuyers.
7. Employer Programs for Homebuyers
Depending on where you're employed and how long you've worked there, it might be worth talking with your employer about any company-sponsored homebuying programs. Some companies do offer incentives and perks that include short-term loans that allow employees to cover closing costs and down payments for a first-time home purchase. If your job offers such a program, or something similar, talk with your HR department about needed documentation and with your lender to confirm processing funds from such a resource.
8. Getting Friends or Family to Help
You could ask friends and family to help contribute to your closing costs. For legal reasons, most lenders require an official “gift letter” to verify the gift terms. And in some cases, you can set up an escrow account that others can freely contribute to without documentation. Talk to your loan officer about how it might work. And you can then rally your friends and family to help <a href="https://www.homewayre.com/blog/buying-a-house-with-the-best-real-estate-timing-expectations/">reduce the closing cost</a> burden!
9. Secured Loans and Collateral
If you own other property or have valuable possessions to leverage equity with, you could explore collateral or secured loan options to cover closing costs on your home purchase. For example, any vehicles you own outright, recreational vehicles, or real estate property could present you with the equity you need to secure a loan or offer collateral. Be mindful, though, any secondary loans you explore will present interest rates and may impact your debt-to-income ratio needed to secure your new home loan. So, talk with your loan officer first to find your best way to leverage these other assets.
10. Lender Credits Can Offset Closing Costs
You might be able to talk with your loan officer <a href="https://themortgagereports.com/74662/lender-credits-for-mortgage-explained">about lender credits</a>. This arrangement allows a lender to cover part of or all of the closing costs associated with your deal. In exchange, you will likely have to commit to a higher interest rate. You’ll want to do your affordability cost analysis to see which makes the most sense for you, the short-term closing cost relief or the long-term better interest rate. But in many home buying scenarios, lender credits can be incredibly helpful for down payment and closing cost burdens.
Before you buy a Lehigh Valley home, consider all these options for exploring methods to pay for closing costs. Having the right real estate agent partner can be helpful, too, so don’t hesitate to <a href="https://www.homewayre.com/">connect with Homeway Real Estate</a> to begin your journey. Our professionals will help you navigate buying a house and coach you through avoiding pitfalls and unknowns, as well as your resources and options, including those associated with closing costs. 2022-03-07T08:00:00-07:002022-03-01T17:50:26-07:00Alex Lopeztag:homewayre.com,2012-09-20:8419Are the Cheap Houses for Sale in Lancaster, PA Worth It?<img src="https://assets.site-static.com/userfiles/2131/image/Cheap_Houses.jpg" width="1920" height="1080" />
You’ve been watching the <a href="https://www.homewayre.com/blog/are-single-story-homes-for-sale-in-lancaster-county-pa-the-right-choice-for-me/">Lancaster, PA, real estate market</a> for a while now. And you have a sharp, keen eye for spotting investment opportunities when you see them. One thing you notice is an abundance of cheap houses for sale. While you know these types of cheap homes are typically reduced in price for a reason, you’re not afraid to explore potential renovations, especially if you can get a good deal on the purchase.
But you’re cautious about any investment you make. The more you think about buying cheap, the more you recognize there is so much you don’t know about buying property. And what if you buy a cheap home in Lancaster that requires <a href="https://www.homewayre.com/blog/should-you-buy-fixer-upper-homes-for-sale-in-lehigh-valley/">way more remodeling</a> than you anticipated? Is it smart or worth the hassle in the end? Should you be sticking to that old saying about deals being too good to be true?
We’ll uncover some of the nuances that go along with buying cheap houses. These tips will help demystify the process of shopping for and purchasing cheap homes in Lancaster, PA, so you can have the clarity you need to make the best investment decision for you.
What Makes a Lancaster, PA, House Cheap?
The term itself, “cheap,” can imply negative impressions about quality or inadequacies. Sometimes, a cheap house is reduced in price for those very reasons, they have subpar quality conditions or require repairs to become livable. But sometimes, cheap only means affordable. And those types of cheap houses in Lancaster are worth considering.
Some homes are marked down because:
They’re located in an underdeveloped area
They’ve been on the market too long, and the sellers are motivated
It’s a secondary property for the seller who is looking for a quick exit strategy
It’s a bank-owned, bankruptcy property
It’s an inherited property being sold off as part of a trust or auction rate
It’s unlivable due to poor maintenance or condition
The market is complex, especially these days. Confusing advertising with “price reduced” or “priced to sell” only muddies the waters even more. And then, when you narrow your listing site search to homes for sale for less than $25,000, you can’t help but be inspired to learn more. There are cheap houses for sale that deserve a look, as long as you know what to look for and have the right real estate partner to help you evaluate your options.
Reasons People Buy Cheap Homes in Lancaster
You might already have your reasons for exploring cheap houses to buy. But there are added benefits to consider that inspire others to buy up these cheap and affordable homes. Investing in cheap properties will allow you to explore rental options, secondary living options, or short-term lease options.
Buying cheap will allow you to tap into potential revenue streams that will help offset your current mortgage or pay down existing debts.
Buying cheap will provide you with an added equity-building resource.
Buying cheap will serve as a safety net should you experience financial hardship in the future.
Buying cheap with plans to make the property <a href="https://www.moneyunder30.com/why-you-should-buy-less-house-than-you-can-afford">your primary residence</a> will afford you the financial benefits of lower payments, EMIs, and improved household budgeting.
Purchasing a cheap house in Lancaster has its immediate financial benefits, regardless of your plans to move into the property or rent it. You’re paying less upfront and over time, in deposits and with your mortgage, which could be reason enough for you to look at some of these cheap house listings.
When Buying Cheap Houses Isn’t Worth the Hassle
It really boils down to your financial position and intentions. If you aren’t pressured to move out of your existing home and want to buy a cheap house as a secondary investment, your deal breakers are going to be different from someone who’s buying cheap to move into the property immediately. However, these are the considerations you’ll want to weigh before committing to buying, regardless of your situation.
Foreclosure properties aren’t always the best deals
Tenants or residents of the cheap property could delay timelines
The condition of the property requires more than just a few repairs
Falling home prices in the neighborhood could be a bad investment sign
The community itself is far from amenities, has increased crime, or is undesirable
These scenarios can all make the cheap property harder to renovate, harder to sell later, and even harder to rent out if you plan to find tenants. In these cases, your investment won’t provide the level of benefits you probably need to justify the purchase.
How to Determine a Good Cheap House from a Bad One
You might be savvy about buying, selling, or even building houses. But navigating the Lancaster real estate market on your own could be challenging. And when it comes to properly assessing a cheap house to buy, you’ll want a few key players on your side.
Reputable Home Inspector
Don’t rely on your own eye to calculate maintenance or repairs needed on a cheap house. Spend the few hundred dollars to have each property evaluated by a reputable home inspector. You can then view a report, itemizing all operational, safety, and condition concerns you’ll need to address. These reports will help you avoid money-pit purchases and spot diamonds in the rough.
Trustworthy Real Estate Partner
Cheap houses in Lancaster are listed right now on all the big sites. But you won’t really know the history of those listings without a trusted real estate partner who knows the area and volatile market. A <a href="https://www.homewayre.com/blog/the-complete-guide-to-lancaster-real-estate/">Homeway Real Estate agent can guide</a> you to narrowing your roster of cheap homes for sale based on experience and Lancaster knowledge. Make your purchasing decisions with the help of someone who can spot trends, knows what to expect, and can steer you away from the wrong cheap houses for sale.
Reliable Lending Partner
Having the right lending partner is key. Even if you plan to pay outright for your cheap Lancaster property, you’ll need someone to help you plan down the road. Maybe you need to borrow funds for renovations. Maybe you want to explore using the equity to fund future remodels. Get the lending perspective you need from a reliable lender.
Real-Estate Savvy Financial Advisor
If you’re buying cheap houses because you’re intended to build a portfolio of properties, sit down with a real estate investment financial professional. A financial advisor can help you strategize for long-term investment success and keep you from buying cheap houses that don’t help you achieve that success.
Don’t Be Swayed by Anything Other than Hard Data
The soundest advice for buying cheap homes for sale in Lancaster is to never commit without having the numbers and data in hand. Leave the impulse buying for the candy bar in the checkout lane at the grocery store. Don’t be swayed by a super-cheap asking price for a house without studying your budget and the data. Don’t let others weigh in on your decision either, unless they’re the industry professionals previously mentioned. Your brother’s wife’s cousin who did construction for a few years in the 90s isn’t really going to be helpful. And your parents, despite their best intentions, may not have the most relevant advice concerning today’s housing market or your personal finances. Use the tools and resources you have to gather all the information you need to strategically look at a cheap house buying opportunity.
If, after careful consideration of your situation, you decide you’re ready to start hunting for a cheap house for sale in Lancaster, let a <a href="https://www.homewayre.com/buyers/">Homeway Real Estate agent</a> be your guide!2022-02-28T08:00:00-07:002022-02-22T09:48:58-07:00Alex Lopeztag:homewayre.com,2012-09-20:8357Should You Buy Fixer Upper Homes for Sale in Lehigh Valley<img src="https://assets.site-static.com/userfiles/2131/image/Fixer_Upper_Lehigh_Valley.jpg" width="1920" height="1080" />
All these DIY television shows are inspiring you to try your hand at tackling a fixer-upper yourself. And you realize <a href="https://www.homewayre.com/blog/why-consider-lehigh-valley-homes-for-sale-with-an-in-law-suite/">the local Lehigh Valley market</a> is absolutely hot right now, so the timing might be right for a change. But there’s a lot to consider in any real estate transaction, let alone buying a fixer-upper. Are there certain fixer-upper homes for sale to veer away from altogether? Are you confident you can effectively estimate what expenses will go into hiring contractors and covering materials? And then you wonder if it’s worth the risk when you see just how much materials cost these days.
What you want is an honest look at what you’ll need to successfully buy a fixer-upper in the Lehigh Valley. And these are critical details to consider before you officially make the decision to invest. Start here and let us guide you through your next steps.
What Constitutes a Fixer-Upper in the Lehigh Valley?
Let’s start with the basics of a fixer-upper. Any <a href="https://www.rocketmortgage.com/learn/pros-cons-buying-fixer-upper-house">property you buy</a> for a lower price because it’s in need of significant maintenance or repair can technically qualify as a fixer-upper. Some fixer-uppers are in such a condition that living there is impossible. However, other Lehigh Valley fixer-uppers might be livable during renovations. Before you decide to move forward and purchase one of these properties, you’ll want to look at your current resident situation and budget to decide if you can afford to do either.
Preparing Yourself to Buy a Fixer-Upper
There are definitely advantages to buying a fixer-upper in the Lehigh Valley. But there are also some pitfalls to consider before you decide. Preparing yourself for the homebuying journey alone requires a few steps. But buying a property that needs renovations or repairs will require some additional critical thinking and budgeting.
Pros include:
A great purchase price
Fewer offers to compete with when buying a fixer-upper
Better opportunity for customizing your fixer-upper
Control over remodels and maintenance timelines and budgeting
Cons include:
Renovating can get expensive, fast
Budgeting can be difficult since costs can fluctuate
Unexpected or unforeseen repairs
Construction efforts take time, prolonging your living situation
Get a Home Inspection
Before you even think about officially putting in an offer on a fixer-upper <a href="https://www.homewayre.com/blog/3-neighborhoods-with-the-best-lehigh-valley-luxury-homes-for-sale/">in the Lehigh Valley</a>, you’ll want to schedule a home inspection. Even if you have experience in remodeling, getting an objective opinion about everything a property entails, from roof to foundation, is critical. You might be focused on remodeling a kitchen or bathroom, but if the inspector finds evidence of fungal growth, asbestos, or active water intrusion, you might be biting off more than you can chew.
Estimating Fixer Upper Expenses
You have an idea in mind of what you can afford. And you'll want to <a href="https://www.homewayre.com/blog/the-most-popular-type-of-lehigh-county-homes-for-sale/">find a Lehigh Valley property</a> within that budget and leave a reserve of funds to pay for those renovations. But now, you really need to sharpen your pencil with your estimates. Ideally, you’ll have enough of a budget to comfortably make the changes you want without stretching yourself too thin or leaving yourself short should unexpected costs arise. It might be best to calculate your estimates and add on an additional 10% to see how much wiggle room you’ll have to make it all work.
And don’t forget, as you’re estimating costs of materials and contractors, there may be permits required for fence work, window installs, structural work, and room additions. Additionally, as you carve out your fixer-upper budgets, there are loan options available, like rehab funding or Fannie Mae HomeStyle Renovation Mortgages, to explore if they make sense for your situation.
Don’t Take on Too Much
They just make it look so easy on television, right? And you’re thinking you can knock out a wall and run some basic electrical wiring yourself. But when you’re considering your first fixer-upper, you’ll need to be careful not to overwhelm yourself with DIY tasks. It may be more timely, more efficient, and cost-effective to hire a professional than doing something yourself and having to backtrack to fix it later. And if you’re on a timeline, having contractors can ensure you stay on pace for completion in a timely manner, rather than burning yourself out on hard, physical work and getting behind schedule.
Consider these important steps as you decide if you want to take on a fixer-upper in the Lehigh Valley. And <a href="https://www.homewayre.com/">let HomeWay Real Estate</a> guide your efforts, from finding the right-fit property to making a really smart and affordable offer!2022-02-21T08:00:00-07:002022-02-15T10:26:33-07:00Alex Lopeztag:homewayre.com,2012-09-20:8259Where to Buy Ranch Homes for Sale in Allentown PA For the Most Value<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_9.jpg" width="1920" height="1080" />
You’ve decided you’re ready for a new home. And you love <a href="https://www.homewayre.com/allentown/">everything that Allentown, PA</a> has to offer. So, with your location preferences in mind, you start scrolling through the online listing sites to explore what houses are for sale. As you review pricing and the various house styles in Allentown, you’re starting to lean toward favoring the ranch-style home.
You narrow your search efforts online to ranch homes in Allentown, and you start to notice a wide range of home values and asking prices. How can you be sure you find only those properties with the most value? This is a significant purchase and investment. You’ll want to stretch your dollar and get the most of what you want in an Allentown ranch.
Here are the tips and suggestions to aid in your search efforts. Finding the best ranch home for you in Allentown with the most value is within your reach if you consider these things.
Define What Home Value Means to You
Firstly, it’s important to recognize that value can be subjective. Sure, when you’re investing thousands of dollars, value is definitely one-part about the cost. But there’s more to it that you’ll want to consider. You might value an updated kitchen or a fenced-in backyard. Value to you might translate to proximity to public transportation or commute times to work.
As you research potential ranch homes in Allentown, jot down those amenities in a house for sale that matter most to you. These are the “needs” and not the secondary “nice to haves” of a property. It will help you narrow your search and ensure you’re only viewing homes that have value to you.
Allentown Ranch Houses Can Offer a Host of Different Features
Not all Allentown, PA ranch homes are created equal. In general, the ranch home style can have similar structural components, including a single-floor layout. But browsing the available listings, you realize there are still very different aspects of a ranch home. Rooflines can be different, for example, making one ranch look more appealing to you than another. Some might have attached garages, while others have detached garages. Maybe there’s a pool or backyard patio oasis for one property that a neighboring property doesn’t have. An asphalted driveway might have more appeal than a rocked driveway. And the lot size, landscaping, and working fireplaces all distinguish these ranch homes, as well. These amenities will all play a role in how you choose your favorite and how much the home itself will be worth.
Allentown, PA Neighborhoods to Consider
Allentown is a sprawling city with charm and character around every corner. There are resident <a href="https://www.homewayre.com/blog/3-neighborhoods-with-the-best-lehigh-valley-luxury-homes-for-sale/">favorite neighborhoods to explore</a> when you’re considering a move. For example, maybe the East Side is a good fit for you with ranch homes for sale throughout Dutch Hill, East Allentown, and Overlook Park neighborhoods. Other residents love the South Side, from Cumberland Gardens to Mountainville neighborhoods. You can also consider The Wards, the West End, and the homes near the Historic Downtown, depending on what you value most about a <a href="https://www.niche.com/places-to-live/search/best-places-to-live/m/allentown-area/">neighborhood community feel</a>.
Finding the Ranch Home with the Most Value Requires Expertise
When you think you’re ready to really get serious about finding your dream ranch home in Allentown, especially with a value-driven perspective, it’s time to partner with a local expert. Take the nightmare guesswork out of the search and let a <a href="https://www.homewayre.com/blog/the-best-places-to-find-a-great-realtor-in-allentown-pa/">Homeway Real Estate professional</a> do the heavy lifting for you. Don’t waste time chasing open houses for mediocre home contenders. Instead, let one of our agents set up viewings of those ranch homes and Allentown properties that represent the most value and best-fit options.
Get in touch with <a href="https://www.homewayre.com/blog/">Homeway Real Estate</a> today and start seeing Allentown, PA, ranch homes with the most value!2022-02-07T07:07:00-07:002022-02-07T08:59:10-07:00Alex Lopeztag:homewayre.com,2012-09-20:8203Why Consider Lehigh Valley Homes for Sale With an In-law Suite<img src="https://assets.site-static.com/userfiles/2131/image/inlaw.jpg" width="1920" height="1080" />
You’re noticing that as you browse the Lehigh Valley homes for sale, there are a few that feature an in-law suite. Now you’re wondering if this is a trend. You might not be sure what all comes with such an extra, either. Should you consider a Lehigh Valley home for sale with an in-law suite?
There are plenty of key advantages to owning a property with an in-law suite. We’ll help you better understand the benefits of purchasing such a Lehigh Valley home. And even if you’re not quite ready to move in <a href="https://www.homewayre.com/blog/6-lehigh-valley-memories-you-can-make-with-mom-this-mothers-day/">your mother-in-law</a>, having an in-law suite might be a great asset.
What Is an In-law Suite?
It has many names, depending on who you talk to about in-law suites. Officially, it might be phrased as an <a href="https://www.upnest.com/1/post/mother-in-law-suite/">accessory dwelling unit or ADU</a>. Other listings refer to it as a multigenerational unit, a granny flat, or a secondary suite. More commonly, however, the added living space that can be detached or attached but usually features a separate entrance and utilities is called the in-law suite or mother-in-law suite.
The original intent of an in-law suite is to provide an ideal living space with privacy yet proximity for multigenerational families who live together. These spaces will vary in design, so when you see a Lehigh Valley listing with an in-law suite, be sure to inquire about amenities in the space. Most will offer a separate entrance from the main dwelling, and they’ll have a stand-alone kitchen or kitchenette area, a bedroom, and a bathroom, as well.
A Lehigh Valley Home for Sale with an In-law Suite Doesn’t Necessarily Mean In-laws
Depending on the current nature of the relationship you have with your in-laws, the idea of having an in-law suite in your new home might terrify you. But you can relax. Buying <a href="https://www.homewayre.com/blog/secrets-of-the-lehigh-valley-real-estate-market/">a Lehigh Valley home for sale</a> that features an in-law suite doesn’t mean you have to actually move them into your residence. In fact, in-law suites are great for visiting friends and family. They’re also ideal spaces for young adults in the family who aren’t quite ready to venture out on their own yet. College students coming home for the weekends have a cozy place to crash. And in many instances, homeowners with mother-in-law suites generate a little revenue by renting out the spaces.
An In-law Suite Adds More Value
All in-laws aside, investing in a Lehigh Valley home with a mother-in-law suite can bring more value to the property. Some HomeLight data suggests in-law suites can add anywhere from 7.2% to 9.8% to the market value of a property. Any experienced real estate agent will also likely tell you that these properties tend to sell faster, especially in hot and active markets.
In-law Suites Can Have Other Uses
Don’t get hung up on the name. An in-law suite can easily transition into an entirely different space, based on what you need. With so many working remotely these days, an in-law suite could transition to be the perfect office space. Turn the comfortable area into a welcoming place for clients, ideal for hairdressers, massage therapists, and home health professionals. Essentially, you have an additional space at your disposal to design whatever you need and be flexible about how you use it. Make it an office today. Move in your aging parents in five years. Welcome distant cousins <a href="https://www.homewayre.com/blog/-6-family-fun-spots-in-allentown/">for a summer stay</a>. Turn it into your ultimate workout room during the winter. The options are endless when you buy a Lehigh Valley home with an in-law suite!
Enlist the Help of a Lehigh Valley Real Estate Professional
Not all in-law suites and <a href="https://realestate.usnews.com/real-estate/articles/mother-in-law-suites-should-you-add-one-to-your-home">accessory dwelling units</a> are created equal. So, if you do know how you intend to use a space, talk with a real estate professional, like Homeway Real Estate. Having an agent guide you through finding and seeing Lehigh Valley properties with in-law suites will make your ultimate home buying decision that much easier.
If you’re looking at a Lehigh Valley listing that features an in-law suite, contact the team at <a href="https://www.homewayre.com/blog/category/buying-a-home/">Homeway Real Estate</a> about scheduling a tour. They’re usually great additions to a property, even if you’re not quite ready to move your mother-in-law in just yet.2022-02-07T06:47:00-07:002022-01-28T07:52:44-07:00Alex Lopeztag:homewayre.com,2012-09-20:81363 Neighborhoods with the Best Lehigh Valley Luxury Homes for Sale<img src="https://assets.site-static.com/userfiles/2131/image/luxury_homes.jpg" width="1920" height="1080" />
You have specific tastes and the highest quality standards when it comes to where you live. And only the luxury homes in the Lehigh Valley will make your list. Or, maybe you’re just curious to know where the most luxurious homes for sale are in the Lehigh Valley. Regardless of which motivation you subscribe to, these neighborhoods have some of the most lavish and sprawling <a href="https://www.homewayre.com/blog/are-single-story-homes-for-sale-in-lancaster-county-pa-the-right-choice-for-me/">homes for sale right now</a>. And while you're driving through, you might just spot your dream home!
What Makes a Lehigh Valley Home a Luxury Home?
What about a Lehigh Valley home actually qualifies it to be a luxury home, you ask? Most industry experts suggest any home for sale priced within the top 10% of a given market qualifies as potentially luxurious. Usually, though, these homes represent considerable size, great locations, and top-quality materials throughout. They sometimes feature unique architectural designs and layouts. When you think “over the top,” you might think about other exclusive or plush amenities, too, like heated floors, spas and pools, and home theater rooms.
Luxury homes may be determined by the eye of the beholder. But in the Lehigh Valley, if it comes with some of these features and <a href="https://www.homewayre.com/property-search/results/#pagenum_3/lprice_1000000/">a multi-million-dollar price tag</a>, it’s pretty highfalutin. Now that you're well-versed in how to identify and define a luxury home, let’s explore where you can find these stunning gems in the Lehigh Valley.
Find Luxury Homes for Sale in Allentown
If you’re looking to drive around and explore luxury homes for sale in Allentown, these are the neighborhoods that <a href="https://www.neighborhoodscout.com/pa/allentown">Neighborhood Scout</a> says feature the most expensive. And there are sprawling stunners to behold.
Minesite
Krocksville / Ruppsville
Yorkshire Cir / Yorkshire Rd
N May St / W Tilghman St
Wescosville
Guth / Guthsville
Park Way Manor / Parkside Courts
Cetronia / Dorneyville
Gauff Hill / Overlook Springs
Greenawalds / Woodlawn
Find Luxury Homes for Sale in Bethlehem
When you’re spending the day taking in the scenery <a href="https://www.homewayre.com/blog/the-most-popular-type-of-lehigh-county-homes-for-sale/">in the Lehigh Valley</a>, venture over to these Bethlehem neighborhoods for a front-and-center look at some of the luxury and high-quality homes for sale.
Seidersville
Westgate Hills
Bath Pike / Hanoverville Rd
Santee Mill Rd / Linden St
Main St
Broadhead
Butztown
Hanover / Delta Manor
William Penn Manor
Notre Dame Hills
Find Luxury Homes for Sale in Stroudsburg
Some of the most stunning luxury homes on the market right now are in Stroudsburg and E. Stroudsburg. Take a tour through these neighborhoods and see some of the most expensive in the area.
Hamilton Square / Kemmererville
Appenzell / Neola
Foxtown Hill
Kellersville / Brainerd Center
Arlington Heights
Borough Center
If you’re house hunting now or in the foreseeable future, with your mind made up to find a property that has it all, including open floor plans, smart-home tech, great amenities, and polished touches, you’ll find everything and more with luxury homes for sale in the Lehigh Valley. And if you need a guide to arrange tours to see some of these properties up close and personal, let a <a href="https://www.homewayre.com/property-search/results/">Homeway Real Estate</a> agent handle all the details!2022-01-31T13:30:00-07:002022-01-21T16:44:28-07:00Alex Lopeztag:homewayre.com,2012-09-20:8135How to Find the Right First-Time Homebuyer Program for You in PA<img src="https://assets.site-static.com/userfiles/2131/image/first_timer.jpg" width="1920" height="1080" />
If you’re ready to make your move, officially and literally, to become a first-time homeowner, this is a must-read guide for you. Right now, there are a host of <a href="https://www.homewayre.com/blog/first-time-homebuyer-with-bad-credit-in-pa-to-buy-or-not-to-buy/">first-time homebuyer programs</a> available in Pennsylvania to help make your dream of homeownership a reality. But if you’re like most people just starting out, you have questions like:
What are the benefits of these first-time homebuyer programs?
What do I need to know about these programs before leveraging one to buy a home?
What are the mortgage rates right now in Pennsylvania?
Can I buy a Lehigh Valley home with no money down?
With so much buzz in the hot housing market today, you need a road map to help you decide <a href="https://www.homewayre.com/blog/the-pros-and-cons-of-first-time-home-buyer-pa-grants/">what steps to take first</a> and which first-time homebuyer programs are worth exploring further. This is that guide to help you navigate available assistance opportunities and get you one step closer to homeownership. While we can't make the home buying decision for you, we know a thing or two about the Lehigh Valley, PA, real estate market and can walk you through what you need to know about exploring your financing resources and options.
Really Understanding Your Financial Situation
Before you buy anything, you typically look to make sure it’s a sound decision you can afford. Of course, when it comes to buying a home for the first time, there is a lot more to consider than there would be when buying a car or new dishwasher. We’re talking thousands of dollars to pay back over decades of financial commitment. And while there are a host of first-time home buying programs to explore, which we’ll dive into here further down, it’s best to first get an accurate snapshot of your financial situation right now. Here are a few key areas to review, to help you define what’s affordable and what makes the most sense to your bank account and probability of homeownership.
Credit Score and Debt to Income Ratios
Mortgage Calculator Affordability
Know Your Monthly Cost of Living Expenses
Income Stability
Savings
Knowing precisely where you stand financially will help you through the next steps in exploring first-time homebuyer programs. Going through your finances will also help you prepare to apply for any mortgage programs for which you might be eligible.
Try a Homebuyer Education Course
The <a href="https://www.forbes.com/advisor/mortgages/first-time-homebuyer-class-why-you-might-need-it/">courses for first-time homebuyers</a> are super helpful, even if you’re not required as part of your loan to participate. It’s a great resource to help you determine what you need and how you can decide which PA program is right for your situation. The National Industry Standards for Homeownership Education and Counseling sponsors these educational courses, intended to walk first-time homebuyers through the entire process from lending to closing. Here are a few other topics these courses can help shed light on for you as you decide what’s best for your situation. And these are typically offered online, by phone, or in person.
Understanding the Pros and Cons of Homeownership
Planning for All Costs Associated with Owning and Maintaining a Home
Learning About Relevant Timelines in the Homebuying Process
Budgeting and Credit-Related Basics
How to Choose the Right Lender
What are First-Time Homebuyer Loan Programs All About Anyway?
Houses are expensive. Getting a loan means financially committing to a 30+ year relationship with whatever property you buy. But typically, when you engage in this commitment for the first time, as a first-time homebuyer, you have some challenges that others might not have. These <a href="https://www.nerdwallet.com/article/mortgages/pennsylvania-first-time-home-buyer-programs">programs are intended to help</a> those who may be financially capable of buying a house but need a little support. These candidates usually want low down payments or need limited mortgage insurance premiums. Here are a few first-time homebuyer lending programs you need to know:
Conventional Mortgages
These loans aren’t insured by the federal government, meaning they don’t have to abide by some of the stricter requirements you’ll find with Fannie Mae and Freddie Mac conventional loans. Fannie Mae and Freddie Mac loans allow qualified candidates to make down payments as low as 3% for first-time homebuyers. These are ideal for those with strong credit scores, who can be approved easily and can afford low down payments.
FHA Loans
This is the most popular program for first-time homebuyers with poor credit. The Federal Housing Administration allows down payments as low as 3.5% for individuals with credit scores of 650 or higher. The FHA will insure loans for those borrowers with credit ratings as low as 500, but it will typically require a 10% down payment. Mortgage insurance must also be paid for the duration of an FHA loan and cannot be canceled.
USDA Loans
The USDA provides financing to eligible homebuyers in rural and suburban regions. The USDA's Rural Development Guaranteed Housing Loan Program administers USDA loans. There are regional income limitations, which change from time to time. Applicants with credit score ratings of 640 or higher usually receive quicker processing. Those with credit scores below that threshold can be required to meet more stringent underwriting criteria.
VA Loans
The Department of Veterans Affairs aids service members, veterans, and their spouses in purchasing a property. VA loans are highly beneficial since they provide low-interest rates and frequently don't require a down payment or mortgage insurance. Although there is no official or strict requirement for a credit score, the majority of VA-approved lenders demand scores of at least 640.
How to Verify Your Eligibility for PHFA First-Time Homebuyer Programs
The Pennsylvania Housing Finance Agency is a great place to find free advice as a first-time homebuyer. You can also <a href="https://www.hud.gov/states/pennsylvania/homeownership/buyingprgms">check with HUD</a> for additional resources. Additional eligibility requirements might include:
An assessment of your liquid assets to determine accounts are no greater than $50,000
Calculations of potential monthly payments to ensure amounts don’t exceed 30% of your income
Confirmation that the property in question will be your primary residence
Verification of credit scores to confirm a minimum of 660 (for some)
Confirmation and scheduling of homebuyer education courses, if applicable
If it’s determined that you are, in fact, eligible to receive assistance, you might be able to enjoy:
Down payment assistance
Closing cost assistance
Tax credits
30-year, fixed-interest loans
These programs are open to anyone who falls within these eligibility guidelines. But originally, many of the assistance homebuyer initiatives were intended to help:
First-time homebuyers who haven't owned a “principal homestead” over the past three years
Individuals who may have only been a homeowner with a former spouse or during the marriage
Anyone who’s owned a “residence” not affixed to a regulatory foundation
Anyone who’s owned a “residence” not in compliance with regulatory building/structural codes
First-Time Homebuyer Programs in PA Worth Exploring
First-time buyers who need a little <a href="https://themortgagereports.com/78608/pa-first-time-home-buyer-programs-grants">extra help with down payments</a> will appreciate these PHFA programs. And for those who qualify, an additional $2,000 in tax savings may also apply with the Mortgage Tax Credit Certificate. Some of these might include:
Keystone Home Loan Program – Zero to 5% down payments may apply
Keystone Government Loan (K-Gov) – Provides government-sponsored FHA, USDA, or VA loans
HFA Preferred Loans - Payments are made to PHFA directly on this 30-year fixed-rate plan
First-Time Homebuyer Grants in PA to Help
In your quest to explore first-time homebuyer programs in PA, you’ll definitely want to consider the advantages of the <a href="https://www.homewayre.com/blog/first-time-homebuyer-grants-to-know-about-in-pa/">various grants available</a>. The PHFA sponsors some of these resources, intended to reduce closing costs and down payments. And while they’re referred to as actual grants, many of them function more like a forgivable loan, with guidelines to follow.
Keystone Forgivable in Ten Years Loan Program – The K-FIT program allows first-time homebuyers to borrow up to 5% of the appraised value, with each year of ownership, 10% of the loan is forgiven.
Keystone Advantage Assistance Loan Program – Get an interest-free loan to pay back over ten years and borrow up to 4% of the property’s appraised value.
HOMEstead – Forgivable portion every year, with borrowing power of up to $10,000 with no interest.
Finding a Real Estate Professional Who Can Help
Another great resource for finding and exploring Pennsylvania area programs might just be your real estate agent. Of course, that’s if you have the right partner. Ideally, you’ll want to work with someone who not only <a href="https://www.homewayre.com/blog/the-most-popular-type-of-lehigh-county-homes-for-sale/">knows the Lehigh Valley</a> but who also prioritizes your affordability needs and preferences. If you’re getting pre-approved for a loan, with potential first-time buyer program assistance, the home you buy will need to meet certain criteria and pricing. It’s the diligence and expertise of your agent that will ensure you find just the right fit listing to view and home to buy. And a great real estate agent, especially for those who are buying a home for the first time, will make the entire process less stressful.
When you’re ready, let <a href="https://www.homewayre.com/property-search/results/">Homeway Real Estate guide</a> you through the first-time homebuyer process in the Lehigh Valley. We’re experts in the area and can ensure your first-time home buying experience is pleasant, from securing mortgage assistance to moving day.2022-01-24T13:30:00-07:002022-01-21T16:37:22-07:00Alex Lopeztag:homewayre.com,2012-09-20:8095Are Single Story Homes for Sale in Lancaster County PA the Right Choice for Me?<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_single_story.jpg" width="1920" height="1080" />
As you begin your house hunting adventure, you’re overwhelmed with all the different home styles available for <a href="https://www.homewayre.com/blog/the-complete-guide-to-lancaster-real-estate/">sale in Lancaster County, PA</a>. Victorian, ranch-style, contemporary, and Cape Cods have all caught your attention with their unique designs and character-rich features. But one glaring home aesthetic is leaving you undecided. Should you stick with a single-story home or explore second and third-story options?
There are plenty of benefits of moving into a single-story house. But to really know if the ranch-style homes in Lancaster County are right for you, these are the home amenity questions you need to ask yourself. How you answer these feature-based questions will help you determine what you need most in a new home. These values will ultimately help you decide if <a href="https://www.homewayre.com/blog/the-complete-guide-checklist-to-prepare-your-home-for-your-first-lancaster-winter/">the single-story Lancaster home</a> is going to be your dream home.
Do You Need More Square Footage of Living Space?
The single-story home tends to offer more living space in terms of square footage availability. Even if the ranch-style home seems smaller than those second and third-story options, it’s the single-story house that’s going to feel more spacious. There is no wasted space on stairways or secondary HVAC units. And the single-story design typically presents options for an open floor plan.
Are You Looking for an ‘Aging in Place’ Home?
For many homebuyers, the next home purchase is intended to be the final home purchase. If you’re looking for an “aging in place” option, ideal for retirement living, the single-story home is the best fit. Not having stairs to climb and having a first-floor laundry room can seal the deal for those interested in finding a Lancaster home to buy. And it’s these single-story homes that tend to be the best fit structures for those who intend to age in place, for safety, cost, and maintenance, as well.
Are Home Maintenance and Cleaning Costs a Concern?
If the cost of ownership is a concern for you during your home buying process, the single-story Lancaster County home is the best choice. Washing windows is easier when you don’t have to climb a ladder. Servicing one HVAC unit every year is cheaper than servicing two. And these considerations can translate to reduced maintenance costs over time.
Is Safety a Priority in Your New Lancaster County Home?
Each home is unique in its condition. So, <a href="https://www.homewayre.com/blog/12-ways-to-research-a-neighborhood-before-buying-a-house/">some Lancaster County houses for sale</a> might have more safety issues than others based on condition alone. But, in general, if overall safety is a priority for your new home purchase, the single-story home comes out ahead. For starters, without steps, there is reduced fall risk for residents. Because there is only one floor, fire escape routes are easier to access. Escaping from an intruder from a second floor can be impossible, too. So, while you certainly don’t want or expect burglars and fires, you might sleep a little sounder in a single-story home with better escape options.
Does Energy Efficiency Matter to Your Home Buying Decision?
Because one-story homes typically have fewer rooms, they tend to <a href="https://www.schumacherhomes.com/custom-building/posts/a-short-course-in-the-pros-and-cons-of-one-story-vs-two-story-homes/">be more cost-effective</a> to heat and cool. The larger, two and three-story homes will usually require secondary units for temperature regulation. The utilities in a larger house will always be more expensive than the smaller, single-story designs, too. If energy efficiency matters to your home buying decision, the single-story Lancaster home is your best bet.
Are You Interested in Having a Quiet Home?
If you want your new Lancaster County home to be quiet, the <a href="https://www.theplancollection.com/house-plan-related-articles/1-story-vs-2-story-dream-home-are-you-ready-to-decide">single-story house design</a> is ideal. Sound and noise-canceling efforts are maximized on one level much easier than they are on homes with multiple levels. Larger, taller structures tend to just be noisier with house “breathing” and expected shifting in place over time. Having a single-story home also means not contending with footsteps, creaking floorboards, and upstairs noises.
Do You Want Free Reign to Change Designs?
Typically, if you intend to remodel your new home, those larger and multi-story designs will be more expensive to change up and cost more to redesign. Load-bearing walls can’t be moved, for example. But in a single-story home, <a href="https://www.homewayre.com/blog/23-easton-area-home-styles-you-simply-must-see/">the design options can seem endless</a>, with opportunities to create open floor plans, add on additional rooms, and expand upwards, if necessary.
Do You Want the Cheapest Purchase Price?
As you’re out house hunting, you’ll want to be mindful of your budget. And purchase prices for homes right now are all over the board, meaning you’ll likely find something within your ideal range. However, if affordability matters most to you, sticking with the single-story or ranch-style homes will often present lower price points than their multi-story, much larger counterparts. The single-story Lancaster County home is just going to cost less because there are fewer materials in the structure, as well. Building a new ranch versus a contemporary multi-story is just going to be cheaper because there’s less lumber, fewer shingles, and reduced labor.
To know if a single-story house for sale in Lancaster County is right for you, review how you answered these key questions. They will help you decide what you value most in a new home and can streamline your shopping process to only those that fit those values.
And when you’re ready to start seeing homes in person, let the <a href="https://www.homewayre.com/blog/">Homeway Real Estate</a> professionals take care of everything! Begin browsing our listings now and contact us to start scheduling tours in Lancaster County!2022-01-18T11:14:00-07:002022-01-18T12:17:15-07:00Alex Lopeztag:homewayre.com,2012-09-20:8078The Most Popular Type of Lehigh County Homes for Sale<img src="https://assets.site-static.com/userfiles/2131/image/1-17.jpg" width="1920" height="1080" />
Defining a dream home is entirely subjective. What you may consider a must-have feature might be a deal-breaker for someone else. But if you’re embarking on a house-hunting journey in Lehigh County, you’re destined to find whatever you believe is your ideal fit. Based on the current listings, these are just some of the <a href="https://www.homewayre.com/blog/the-most-popular-pennsylvania-home-styles/">most popular home styles</a> on the market, waiting for you to schedule a tour. And with so much history and character in this region of Pennsylvania, you’re sure to find almost any design you consider to be perfect.
Find the Ranch Home of Your Dreams
Ranch style homes are in high demand all over the country right now. As the baby boomers continue to reach the age of retirement, countless golden-aged homeowners are making the move to one-story residences. They’re getting out of the big, multi-level homes and choosing those peace of mind properties that require less maintenance and square footage. In the Lehigh Valley, there’s no shortage of ranch homes on the market, either.
The Pennsylvania Colonial
If colonial homes for sale top your prospect list, you won’t be disappointed when you browse the Lehigh County listings. These historic homes, usually built between 1640 and 1800, are chock-full of character, intricate designs, and personality. Find homes for sale right now, with the colonial charm you’re looking for in Allentown, Copley, and Trexlertown.
Farmhouses in the Lehigh Valley
If you’re currently living a hectic life in the big city, like Philadelphia or New York City, you might be ready for a breath of fresh air. And you’ll find all the sprawling acreage and mountain brisk mornings you can stand in Lehigh County. Farmhouses here come in all shapes, sizes, and ages, with many harkening back to colonial times. Farm life, whether you’re into traditional crop and herd work or just recreational, there is a <a href="https://www.rockethomes.com/blog/home-buying/buy-a-farm">farmhouse in the Lehigh Valley</a> calling your name. Start up a working cattle farm or just adopt a few fainting goats. Whatever you consider to be your dream farm life, you’ll likely find it here.
Victorian Elegance Across Lehigh County
If your idea of an absolute stunner of a dream home involves a two or three-story house with lots of brick, vibrant colors, turrets, and wrap-around porches, then you have narrowed your search down to the elegant Victorian style home. These legendary structures are often called “gingerbread houses” just for their sheer intricacies.
New Construction
For some people, buying a dream home means finding something new, fresh, and even contemporary in style. A home that no other human has yet lived in tops many consumers’’ list. And if it’s a new construction you have in mind, you’ll have a wide selection from which to choose in Lehigh County. Start browsing the new construction houses available on the market with <a href="https://www.homewayre.com/property-search/results/#newconstruction_true/">Homeway Real Estate</a>!
Just because these Lehigh County home styles are the most highly sought-after right now doesn’t mean you won’t be able to find your dream Cape Cod, Condo, or Contemporary. Let the agents at <a href="https://www.homewayre.com/">Homeway Real Estate</a> schedule a day of tours throughout Lehigh County!2022-01-17T07:16:00-07:002022-01-15T08:18:53-07:00Alex Lopeztag:homewayre.com,2012-09-20:8028First Time Homebuyer With Bad Credit in PA: To Buy or Not to Buy<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_4.jpg" width="1920" height="1080" />
You have a dream of homeownership, but you’re also keenly aware that your credit isn’t so great, limiting your chances as <a href="https://www.homewayre.com/blog/the-pros-and-cons-of-first-time-home-buyer-pa-grants/">a first-time homebuyer</a>. For anyone with bad credit in PA, this discussion is for you.
There are several financial options available, even to the credit challenged. However, it’s tough to know which program is a good fit. And you don’t want to end up biting off more than you can chew financially, resulting in an even worse position. Should you try to find and buy a house right now, with not-so-great credit? Or should you wait until your finances improve?
Here’s what every first-time homebuyer, with bad credit, in PA needs to know.
Let’s Define Bad Credit, According to the Lenders
Most traditional lenders have benchmarks they use when determining if a person has poor credit. What most people don’t realize is that while lending institutions typically don’t extend mortgages to credit scores below 620, they aren’t bound by a minimum credit score limit. So, in a sense, no score is too low for a mortgage. That doesn’t mean, of course, you’ll get a loan. Lenders can decide to lend to whomever they choose. How you fare in these other key categories will more than likely determine whether or not <a href="https://www.homewayre.com/blog/the-pros-and-cons-of-first-time-home-buyer-pa-grants/">securing a traditional mortgage</a> is in the cards for you.
History of Timely or Missed Payments
Amount of Debt Owed
Diversity of Credit
Length or Newness of Credit History
Borrower’s Total Down Payment Amount
Earnings and Work History
Accounts in Collections
Again, while the credit score itself isn’t the only factor considered in obtaining a loan, credit scores for first-time homebuyers can certainly fall into <a href="https://www.lendingtree.com/home/mortgage/first-time-homebuyers-bad-credit/">a bad credit category</a>. Not every bank or lending institution uses the same credit reporting, either, so knowing your Experian, FICO, and TransUnion scores can be helpful. Here is a general categorization of excellent to poor scores to see where you stand right now.
Excellent Credit Score Range: 800 – 850
Very Good Credit Score Range: 720 – 799
Good Credit Score Range: 620 – 719
Fair Credit Score Range: 580 - 619
Poor Credit Score Range: 579 or Lower
Remember, even the most terrible of bad credit scores in PA can still have a shot at a mortgage. However, the lower scores, along with the other factors mentioned, might translate to higher interest rates and less flexible terms.
First-Time Homebuyers with Bad Credit Have Options
Now that you have a better understanding of where you stand with your credit score, it’s time to review some of your <a href="https://www.quickenloans.com/learn/bad-credit-home-loan">available mortgage options</a>. Cash is king, especially in real estate. So, the more you have saved up and set aside for a potential down payment and other home buying expenses, the better position you’ll be in to secure financing.
Conventional Home Loans
We covered some of the basics of credit scores as they relate to traditional loans. But the conventional loan from a bank or credit union might also make some exceptions to a bad credit score. If your income is substantial and you have a sizable down payment, a conventional home loan could still be feasible for you.
FHA Loans for First-Time Homebuyers
The Federal Housing Administration backs what is commonly referred to as an FHA Loan. First-time homebuyers with bad credit can take advantage of these loans. They’re attractive because there are fewer requirements for securing FHA financing, including the minimum credit score of 500 to get started. Also, an FHA loan is only applicable in buying a property in which you intend to reside.
VA Loans for Veterans
If <a href="https://www.homewayre.com/blog/the-complete-guide-to-lancaster-real-estate/">you’re a first-time homebuyer</a> with bad credit and you’re a veteran, you could qualify for a VA Loan, which is traditionally backed by the Department of Veterans Affairs. These lending options are available with no money down but may apply a “funding fee” up front. There are other standards you might have to meet, depending on your financial situation and current credit score.
USDA Loans on the Federal Level
Some homebuyers might qualify for a USDA loan, backed by the federal government, more specifically, the US Department of Agriculture. These loans come with zero down payment perks. However, there is a minimum credit score of 640 to qualify. And depending on your situation, there may be additional requirements to meet regarding income.
The First-Time Homebuyer with Bad Credit Checklist
Before you decide whether or not you’re in a financial position to buy a home or not, start with this checklist of steps. Good credit or bad, you’ll need to have a clear understanding of where you stand before making any significant purchase decisions. And how <a href="https://www.quickenloans.com/learn/bad-credit-home-loan">you answer these key points</a> will also help you put together a timeline that makes sense to your bottom line.
Start with Your Credit Report Analysis
Before you assume your credit is in the tank, take a hard look at your score and the factors contributing to it. You might find discrepancies on your report that you can dispute or have removed. You might be better off than you originally thought. There are free credit reporting services out there to get started, including Credit Karma that compares the major reporting bureaus’ scores in one dashboard.
Reach out to Credit and Housing Counseling Services
If you’re financially dire and need help addressing some of those debts, don’t be afraid to connect with professionals who can help. There are counseling services available, some paid and others as community resources, that can assist you in putting strategies together for addressing your poor credit.
Discuss Your Options with a Lender
You can reach out to your bank or credit union to just have an initial conversation about your options. And if you have a good relationship with your institution, they might be able to point you in the right direction to explore and secure funding. If you don’t have a bank, that’s ok, too. You can still meet with a lending professional to have someone explain the process to you, step-by-step, and offer some guidance in setting financial goals for yourself.
Identify and Take Steps to Rebuild Your Credit
Knowing your credit score and financial blemishes is one thing. First-time homebuyers need to also look for action steps to improve and rebuild credit. This might involve liquidating assets to pay off debts or asking family members for help. Start with small manageable steps to effect change, based on what you can afford. Any progress is good progress.
Look for Ways to Pay Down Debts
If you have one or many high credit card balances or loans out there, you’ll want to take steps to reduce them ongoing. Start with the smallest balances and make payments you can afford to clear them off your report. You can then apply extra to payments you’re already making to those larger accounts. And if you need to call creditors to ask for payment plans, don’t be afraid to do so. Most creditors will have options available that make paying down those debts more comfortable on your bank account.
Can You Increase Your Income?
Another way to significantly improve your current financial situation is by bringing in more income. This, of course, isn’t going to be feasible for everyone. However, it can be helpful to sit down and brainstorm for ways to grow those revenue streams. Can you take on a side hustle, like tutoring or rideshare driving? Can you ask for additional hours at work or switch schedules to improve pay rates? Any extra income you’re able to bring in should go directly toward paying down debts or saving for a down payment.
Can You Grow Your Down Payment Savings?
You might already have a small nest egg set aside to serve as a potential down payment on a new home. Whether it’s $100 or $10,000, you can always be looking for new ways to add to this reserve of funds. Consider cutting out the morning drive-thru coffee and instead tossing those few bucks into savings. Download receipt collecting apps that offer cash-out rewards, like Receipt Hog. Have a yard sale or sell that fixer-upper car in the garage that you’ll likely never get to fixing. Every dime you manage to save is just another $.10 closer to homeownership!
Setup or Grow Your Emergency Fund
When you’re in debt or are facing financial hardships, the hardest thing to conceive of right now is saving for a rainy day. But the financial advising experts always suggest doing your best to do so, even if it’s only in small increments. You’ll be surprised how quickly small change can add up collectively. And that emergency fund will come in handy when you’re applying for home loans and needing to convince a lender of your capability to pay a mortgage.
To Buy or Not to Buy
So, now that you know where you stand with your credit situation, should you buy a house? The short answer is yes. As previously discussed, there are plenty of loan resources available intended to help those with less-than-stellar credit <a href="https://www.homewayre.com/blog/first-time-homebuyer-grants-to-know-about-in-pa/">achieve first-time homeownership</a>. And the other thread of good news is that you always have a way out of a bad credit situation, even if it means taking baby steps.
That’s great and all, but should you buy a home with bad credit?
That answer is a little more complex. You don’t want to rush into a hefty financial commitment to a mortgage with concerns of affordability six months or a year from now. Homeownership is a long-term endeavor but also requires some acute math calculations. Can you afford a monthly mortgage payment? Can you get a far better interest rate if you pay down some of your current debts and look for loans next year? Are you concerned about job security or other household situations that might affect your ability to keep up with a house payment? Only you can answer these questions.
If you feel comfortable with your responses to some of these long-term projections, it very well may be your time to buy your first home! And securing your financing options first is generally the best first step. Once you know what lending opportunities you have, you’re ready to work with a real estate professional to help find a dream home within that estimated budget.
There is a lot of guesswork and critical thinking that goes into deciding whether or not you should buy your first home with bad credit. But there’s one aspect of the process that’s a no-brainer. When you’re ready to find a Realtor to explore the Lehigh Valley listings, <a href="https://www.homewayre.com/buyers/">Homeway Real Estate is the first call</a> you should make. Our team can help you find that ideal dream home within your lending budget and can shepherd you into the glorious experience of first-time homeownership!2022-01-10T12:46:00-07:002022-01-10T13:51:16-07:00Alex Lopeztag:homewayre.com,2012-09-20:7959The Pros and Cons of First-Time Home Buyer PA Grants<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_Pros_n_Cons_Home_Buyer_Grants.jpg" width="1920" height="1080" />
When you’re <a href="https://www.homewayre.com/blog/the-complete-guide-to-lancaster-real-estate/">buying a home</a> for the first time, you’re undoubtedly nervous. And you have every right to be at least a little anxious. We’re talking about a lot of hard-earned money here, not to mention a super-complex series of events to journey through on your own.
Since the money aspect of first-time home buying tends to be the most stressful, we wanted to spend a little extra time exploring what you need to know about homebuyer programs, loans, and grants out there. There are a host of <a href="https://www.homewayre.com/blog/first-time-homebuyer-grants-to-know-about-in-pa/">resources and PA grants</a> that you’ll want to consider that can significantly make an impact on what you can afford.
But there are some pros and cons to also think about before you make your decision. These are the details you won’t likely hear from anyone else. And just knowing what first-time homebuyer grants entail can bring a whole lot of relief and understanding.
Let’s Start with the Different Types of First-Time Home Buyer Programs
There are plenty of resources out there that, if anything, at least warrant further exploration. But to help you get started with understanding the various programs available, here are the most common types to know. Remember, grants imply funds you do NOT have to pay back while the loans do require repayment, usually with interest. And there are <a href="https://www.rocketmortgage.com/learn/first-time-home-buyer">different assistance programs</a>, too, that can further muddy the waters in between.
Down Payment Assistance
When purchasing a home, a down payment is one of the major expenditures required for most mortgage types. Many first-time homebuyers believe that they must have a 20% down payment to obtain a mortgage, but many lenders accept applications from first-time buyers with as little as 3% down.
DPA Grants
You may be able to apply for DPA through grants, which are not supposed to be refunded. However, because program requirements for loans can differ, it's essential to contact your local or PA state government for more information on any first-time buyer down payment assistance programs.
DPA Loans
Not sure you can cover that whopping down payment on your own? You could also be eligible for down payment assistance (DPA) through several specific sorts of loans to lower the amount you must put down.
Second mortgages, deferred payment loans, and forgiven loans are a few options. Second mortgage payments must be made together with your primary mortgage. Deferred payment loans must be paid off when you retire or pay off your primary mortgage.
Loans cannot be written off during your lifetime, but they may be forgiven in installments over a certain period of time. If you move before the agreed-upon number of years has passed, your loan will have to be repaid if you relocate before the terms of forgiveness are met.
Government-Sponsored Loans
A loan guaranteed by the federal government can also assist qualified first-time house buyers to purchase a home without a down payment - we'll go through these sorts of loans in more depth further below.
Home Buyer Education Resources
If you're not quite sure how to begin or even know where to get started on your house search, you should definitely use online educational programs and resources. A decent first-time home buying course might be free or low-cost, and it may teach you about loan alternatives, the purchase process, and how to apply for a mortgage. Look through real estate courses available online to <a href="https://www.zinguniversity.com/">see if Zing University</a> or another free course makes sense for you.
Closing Cost Assistance
Down payment assistance, as well as government-sponsored and private programs, can assist you with the <a href="https://www.homewayre.com/blog/closing-costs-in-pennsylvania/">costs of closing</a>. Closing charges are expenditures you must pay at the conclusion of your mortgage procedure. Closing costs are generally between 3 and 6 percent of the overall cost of your home loan.
Forgivable Loans
Forgivable loans are the closest relative of grants since they may be free if you live in the property long enough. You might, for example, borrow $5,000 to assist with a down payment and have the debt reduced each month for ten years. If you leave before the term expires, you'll be required to repay a portion of the loan. However, if you stay in the property for ten years, it will be completely forgiven.
FHA Loans for First-Time Homebuyers
The <a href="https://www.realtor.com/advice/buy/pros-cons-first-time-homebuyer-loans/">FHA offers low down-payment</a>, reduced interest, minimal fees, and the opportunity to defer payments for first-time homebuyers. The Federal Housing Administration and most states provide these sorts of financing.
A first-time homebuyer is defined by the FHA as someone who has not owned a house for three years. So technically, it could be your second or third home purchase over a lifetime. But it's also important to note this definition includes single parents and displaced homemakers who maybe only previously owned homes with their spouses.
You might want to consider these FHA loan options if:
You don’t think you have enough money saved up for a large down payment.
You have a limited ability to make high-interest payments and/or lofty fees.
Your official credit score is not high enough to qualify for other loan types or traditional funding.
Other potential drawbacks include:
If you sell your home not long after purchasing it, you could lose out on some of those great loan benefits.
If you later decide that you'd like to refinance your loan or otherwise change the terms of your debt, it might not be feasible with a first-time homebuyer loan.
While some of these loans don’t require you to purchase PMI (private mortgage insurance,) you may still be required to purchase insurance offered by the loan program, which could have higher fees and longer payment terms.
Let’s Unravel How First-Time Home Buyer Grants Actually Work
As a <a href="https://www.homewayre.com/blog/13-signs-you-need-a-better-real-estate-agent/">first-time homebuyer</a>, it's possible that you may qualify for numerous forms of financial assistance. But the difference between grants and other types of aid is that you are never required to repay the money.
A PA grant can help you pay for a down payment on a house as well as closing fees before you move in. Some grant programs are available to homeowners who bought prior to the time they applied.
<a href="https://www.bankrate.com/mortgages/first-time-homebuyer-grants/">First-time home buyer grants</a> are distinct from other down payment assistance programs in that they can assist you in paying for a house today, but they come with strings attached for the future.
Here are a few first-time home buyer grants to consider exploring, according to BankRate.com.
Bank of America Grants
<a href="https://promotions.bankofamerica.com/homeloans/downpaymentcenter">Bank of America</a> has two grant options available to assist you with a down payment and closing costs: the Down Payment Grant and America's Home Grant programs. Closing costs are eligible for up to $7,500 in lender credits under the America's Home Grant program, while the Down Payment Grant offers up to $10,000 in down payment assistance.
Chase Home Buyer Grants
If you buy a home in a "low to moderate income census tract" that is certified by the US government, <a href="https://www.chase.com/personal/mortgage/assistanceprograms">Chase bank may give</a> you up to $2,500 in grant money. These funds are generally spent on closing costs (but they can also go toward your down payment if necessary) and have to be considered taxable income. Your loan officer can help you decide if this is a good-fit grant for you.
National Homebuyers Fund, Inc.
The <a href="http://www.nhfloan.org/">National Homebuyers Fund</a>, a nonprofit organization, provides down payment and closing cost grants up to 5% of the purchase price of your house. To qualify, you must be a first-time homebuyer, but you must find a mortgage lender that participates in the program. Find lenders in your neck of the woods by calling the organization’s hotline at 866-643-4968.
HomePath Ready Buyer Program
The HomePath Ready Buyer program is a homebuying initiative from Fannie Mae, one of two government-sponsored enterprises that support the mortgage market. You may get up to 3% of your house's purchase price as a loan to assist with closing costs through this program.
However, there are several restrictions on what you can buy. You can only qualify if you're buying a HomePath property, which is a foreclosed home owned by Fannie Mae. In addition, you'll have to finish a homebuyer education course.
Good Neighbor Next Door Program
The <a href="https://www.bankrate.com/mortgages/good-neighbor-next-door/">Good Neighbor Next Door program</a> (this one's not really a grant, but kind of qualifies as one,) which is technically classified as a “forgivable loan,” offers significant advantages because of the potential for free money. This government initiative from the Department of Housing and Urban Development provides a 50 percent discount on homes in designated revitalization regions to police, teachers, firefighters, and emergency medical technicians.
You can sell your home for a profit of almost 70 percent if you wait three years to sell it. You will not have to return the discount, as long as you maintain residence in the house for three years. But beware, you won't be able to buy yourself just any ol' home with this program, either.
How Can You Learn If You Qualify for a PA Grant?
Knowing you have first-time homebuyer grants available to you is only half the battle. You’ll also need to know and prepare for how to qualify for these PA grants. Here are the key benchmarks recipients of these funds will tell you to focus on first.
Your Contribution to the Deal
Although you may get assistance for the purchase, many grants demand that the buyer pay something as well. One frequent request is $1,000 (whichever is greater) or one percent of the total price of the house.
Knowing Your Income Limitations
Low-income households are usually identified by numerous social programs as those who make 80 percent or less of the area median income (AMI). Some grant programs are limited to people in that range. The income restrictions can also change based on the number of individuals in the household.
Understand PA Home Price Limits
You may also be limited by a financial budget. Once more, these restrictions vary widely depending on the local housing market.
Additional Education Matters
Before receiving money through a grant, it can be <a href="https://www.homewayre.com/blog/12-ways-to-research-a-neighborhood-before-buying-a-house/">helpful to complete a homebuyer</a> education course. Some grants actually require first-time homebuyer education courses to be eligible.
Residence Status
You can generally only obtain a grant to assist you in purchasing a home that will become your primary residence, not one that you'll rent out to someone else.
The Pros and the Cons About First-Time Home Buyer Grants
The key takeaway from all of this information overload <a href="https://www.homewayre.com/blog/new-construction-or-existing-home-which-should-i-do/">about first-time homebuyer</a> grants is this: you won’t know if you qualify, and you’ll always pay more if you don’t bother to ask. Explore some of these different types of grants and lending assistance programs. Ask questions and talk to your banking officer. Remember these essential nuggets of knowledge:
Know your budget and your finances.
Have a plan for how long you intend to live in your new home.
Educate yourself with all the free online courses you can to demonstrate good faith.
If you don’t qualify now, don’t hesitate to try again later.
When you're thinking about buying a Lehigh Valley, PA home, you'll definitely want to take a deeper dive to explore PA grants. And if it's your first time ever buying a home, or it's been several years, there are some excellent first-time homebuyer grants and assistance programs to consider, too.
Just don't forget to include <a href="https://www.homewayre.com/buyers/">HomeWay Real Estate</a> in your journey. We can help you find all the house hunting, buying, and selling resources you need, whether it's your first rodeo or your tenth. <a href="https://www.homewayre.com/">Contact one of our</a> Lehigh Valley, PA professionals today and see how we can help!
2022-01-03T07:09:00-07:002022-01-03T08:13:54-07:00Alex Lopeztag:homewayre.com,2012-09-20:7911The Complete Guide to Lancaster Real Estate<img src="https://assets.site-static.com/userfiles/2131/image/Lancaster_Real_Estate.jpg" width="1920" height="1080" />
If you’re <a href="https://www.homewayre.com/blog/first-time-homebuyer-grants-to-know-about-in-pa/">considering a move to Lancaster, PA</a>, you’ve come to the right place. This is the ultimate Lancaster guide you’ve been waiting for when it comes to all-things real estate, community, and things to do that Lancaster has to offer. It’s not just about finding your dream house. It’s about finding your dream community, too. And Lancaster may just be the perfect place to call home.
Lancaster, PA By the Numbers
Lancaster, PA, offers its residents a great urban and suburban feel. It’s often on many lists of the “best places to live,” as well. Here’s a glance at Lancaster and Lancaster County, by the numbers.
Population and Growth
Lancaster is the official county <a href="https://www.homewayre.com/blog/the-complete-guide-checklist-to-prepare-your-home-for-your-first-lancaster-winter/">seat of Lancaster County</a>. With roughly 60,000 people calling the city of Lancaster home, it’s clear there’s a lot to love about living here.
The <a href="https://hourglasslancaster.org/resources/blog/census-data-places-2040-what-does-the-future-of-growth-look-like-in-lancaster-county/">current growth rate in Lancaster County</a> is about 0.32%. The county, as a whole, is home to nearly 550,000 residents and continues to be a popular place to relocate. Lancaster is currently the seventh-fastest growing county in Pennsylvania and has officially transitioned to the status of a metropolitan area.
The Lancaster View
Lancaster is an attractive place to live and visit because of its landscape. Nestled in the southern pocket of the state, Lancaster County sits on the beautiful Susquehanna River. The region features rolling hills, sprawling farmland, and a picturesque view of nature’s best. With creeks all around and breathtaking views, it’s no wonder homeowners continue to flock here.
Is Lancaster, PA Considered ‘Up and Coming?’
Lancaster, PA, is often most known for its Amish population since it’s home to one of the largest Amish populations in the nation. But Lancaster is also considered “hip” and “up and coming” because of the wide variety of trendy and highly desirable amenities here. Forbes even named Lancaster one of the “10 Coolest U.S. Cities” back in 2018.
Real Estate in Lancaster Tops Everyone’s List
If you’re not quite sold on the idea of relocating to Lancaster, PA, you’ll probably need to know a little more about the real estate market here. Here’s a snapshot of home-related stats, prices, and styles to help guide your home buying efforts.
Average Lancaster Home Prices
The housing market is hot everywhere right now. But Lancaster seems to be even more attractive to new potential residents. Based on data collected in October of 2021, 100% of homes in Lancaster sold for approximately the asking price. According to averages collected in November, the <a href="https://www.realtor.com/realestateandhomes-search/Lancaster_PA/overview">median home listing price</a> for Lancaster properties was up 5.3%, hovering around $258,000.
Lancaster Home Styles You’ll Love
Location might be the most important aspect of your dream home search process. But finding <a href="https://www.homewayre.com/blog/new-construction-or-existing-home-which-should-i-do/">real estate in Lancaster</a> also means finding the architecture and home styles you love. There is nearly every type of home in the area, but these styles <a href="https://cityoflancasterpa.com/architectural-styles/">tend to be most prominent</a>.
German or Colonial Style (1710-1770)
Georgian Style (1730-1790)
Federal Style (1790-1835)
Classic Revival Style (1840-1860)
Italianate Style (1850-1895)
Second Empire Style (1860-1895)
Queen Anne Style (1876-1910)
Romanesque Revival Style (1860-1900)
Beaux Arts Style (1880-1930)
Colonial Revival Style (1880-1955)
Art Deco Style (1925-1945)
The Lancaster Community at a Glance
Finding the <a href="https://www.homewayre.com/blog/the-ultimate-guide-to-buying-your-first-home/">right home and Lancaster real estate</a> to call your own is only half the battle. You also need to know about the community and what a lifestyle in Lancaster, PA, will be like for you and your family. Here are the job, family, and recreational details to help guide your decision.
The Job Front in Lancaster
Lancaster continues to grow and does so because of its robust economy. So finding work in the area isn’t likely going to be a challenge, depending on the career for which you’re applying. <a href="https://www.zippia.com/company/best-biggest-companies-in-lancaster-pa/">Zippia says these</a> are some of Lancaster’s largest employers to help with your job search.
Eurofins Scientific
Lancaster General Health
Armstrong World Industries
Fulton Financial
High Industries
Armstrong Flooring
SmileBuilderz
Aside from the major employers, the hotel and restaurant industries are <a href="https://www.homewayre.com/blog/12-ways-to-research-a-neighborhood-before-buying-a-house/">thriving in Lancaster</a>, always eager to hire top talent. And there is a healthy mix of professional and entry-level opportunities, perfect for nearly every skill set.
The commute isn’t that bad, either. Lancaster, PA, workers mostly drive themselves on those morning commutes, averaging less than 20 minutes or so. But recent data suggests another 11.6% carpool with others, 4.5% work remotely from home, and 5.4% take mass transit.
Transportation in Lancaster, PA
So, how do most Lancaster residents get around these days? You’ll enjoy <a href="https://www.bestplaces.net/transportation/city/pennsylvania/lancaster">plenty of transportation options</a> here! Much of the city’s center is walkable, perfect for leisurely strolls or faced-paced shopping excursions. You can take the bus or hail a rideshare. You can even try the bike share program, powered by Zagster, allowing you to pay by the hour and tool around on two wheels to enjoy the Lancaster culture.
Of course, you can drive your own vehicle anywhere you choose. And if you need to major metropolitan adventures, you’re still only about 68.8 miles away from Philadelphia. You can even hit New York City for a day trip if you’re up for a three-hour drive. And <a href="https://www.homewayre.com/blog/the-best-places-to-find-a-great-realtor-in-allentown-pa/">Allentown, PA, is roughly an hour’s drive</a> away, as well.
Schools and Education
If you have kids or are potentially planning to have children, <a href="https://www.cityoflancasterpa.com/public-schools/">Lancaster schools and education</a> will be on your shortlist of real estate considerations before moving. And Lancaster schools do tend to rate above average academically. And <a href="https://sdlancaster.org/discover-sdol/athletics/">the athletics programs</a> are equally impressive, with a host of sports and events for nearly every interest.
The school district serves much of the city, with 13 different elementary schools and four middle school campuses. JP McCaskey High School allows for Advanced Placement® coursework and exams. And based on 2019-2020 enrollment, it educated 2,631 students. The average student-to-teacher ratio is 13.41. Alternatively, there is also the <a href="https://www.lchsyes.org/">Lancaster Catholic High School</a>, offering a progressive academic curriculum that includes a high level of AP classes, distance learning, certificate programs for Scholars, STEM (Science, Technology, Engineering, and Math,) the Fine & Performing Arts Certificate, and a Corporate Mentor Program.
Things to Do When You Live in Lancaster, PA
Before moving to any community, you’ll need to do a little homework on what the area has to offer in terms of amenities. And you won’t be disappointed with the “things to do” list Lancaster, PA brings to the table.
Lancaster, PA Parks, and Recreation
If you want to buy a new-to-you house in an area that is rich with natural beauty and plenty of ways to enjoy that beauty, Lancaster is perfect! With so many parks, pavilions, recreational areas, and paths to explore, you won’t run out of <a href="https://www.cityoflancasterpa.com/services/parks/">afternoon outdoor adventures</a> or morning jog routes anytime soon. Here are just a few park favorites you can visit when you come house-hunting:
Binn’s Park 100 N. Queen St.
Brandon Park 525 Fairview Ave.
Buchanan Park 901 Buchanan Ave.
Conestoga Creek Park 1255 S. Duke St.
Conestoga Pines 150 Arthur E. Morris Pkwy.
Crystal Park 525 First St.
Culliton Park 210 Conestoga St.
Holly Pointe Park 300 Holly Ln.
Long’s Park 1441 Harrisburg Ave.
Mayor Janice C. Stork Corridor Park 449 N. Mulberry St.
Musser Park 135 N. Lime St.
Penn Square Intersection of King St. & Queen St.
Reservoir Park 701 E. King St.
Rodney Park 200 Crystal St.
Sixth Ward Park 680 E. Ross St.
South End Park 10 Furnace St.
Family-Friendly Attractions Around Every Corner
Another reason to find real estate in Lancaster, PA, is the abundance of <a href="https://familydestinationsguide.com/fun-things-to-do-in-lancaster-with-kids-pa/">family-friendly amenities</a> the area has to offer. If you have little ones or enjoy a jam-packed social calendar, Lancaster has you covered. Here are just a few of the local and regional adventures awaiting your family.
Magic & Wonder Theater
Lancaster Archery Supply & Academy
Dutch Wonderland
Old Windmill Farm
Turkey Hill Experience
Lancaster Virtual Reality Lounge
Refreshing Mountain Retreat & Adventure Center
The Lancaster Science Factory
Here are some of the fun, historic museums to enjoy.
Railroad Museum of PA | 300 Gap Road, Strasburg.
AACA Museum | 161 Museum Drive, Hershey.
Tiny Town | 533 Janet Avenue, Lancaster.
North Museum of Nature & Science | 400 College Avenue, Lancaster.
Choo Choo Barn | 226 Gap Road, Strasburg
Lancaster’s Nightlife Is Hoppin’
Lancaster is a great place for nightlife, or as the locals call the downtown, <a href="https://www.discoverlancaster.com/blog/nightlife/">Lancaster City</a>. There are many bars and clubs to please any taste, from rooftop bars to dive bars; Lancaster has them all. Enjoying dinner before your evening begins? You can have that too! Lancaster offers some of the best casual food in PA with tons of options- you'll never be hungry! Beyond the food, there are live music venues, theaters, and attractions that are open late. Any time of year is perfect for an exciting night out in Lancaster City!
Finding the Best Real Estate Agent in Lancaster
Armed with all the information you need to better understand the Lancaster real estate and community, you just need a Lancaster expert real estate professional to help you start the search for your dream home. Lancaster and Lancaster County have so much to offer new residents. And the Realtors at Homeway Real Estate will ensure you find the perfect house, in the perfect neighborhood, with the perfect amenities to make your dream come true!
Contact our team today and let <a href="https://www.homewayre.com/buyers/">Homeway Real Estate</a> give you a proper Lancaster, PA introduction!
2021-12-27T07:38:00-07:002021-12-27T08:44:17-07:00Alex Lopeztag:homewayre.com,2012-09-20:7876The Best Places to Find a Great Realtor in Allentown PA<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_Allentown_Realtor.jpg" width="1920" height="1080" />
The Allentown, PA real estate market continues to be hot. And you feel like you’ve sat on the sidelines long enough. You’re ready to join the movement and start your <a href="https://www.homewayre.com/blog/buying-a-house-with-the-best-real-estate-timing-expectations/">hunt for a new home</a>.
Whether it’s your first-time house-hunting or you consider yourself to be a seasoned pro, you know you still need the help of a local real estate agent. You might be able to find a home you’d like to tour or see. But then there’s listing your house, negotiation steps, and closing details to navigate. And you’ll only want to work with the best Realtor to help.
Based on the <a href="https://www.nar.realtor/sites/default/files/documents/2021-home-buyers-and-sellers-generational-trends-03-16-2021.pdf">National Association of Realtors</a> data for 2021, roughly 88% of homebuyers worked with agents to do so. You know there’s a reason for this.
So now, you face another challenge. In addition to finding your dream home, you also need to begin your hunt for a real estate professional. Today, we’ll take all the confusing guesswork out of finding the best Realtor. Here’s what dream home buyers need to know about where to look, what questions to ask, and how to find an Allentown, PA real estate agent.
Why the Right Real Estate Agent Matters
There are different credentials out there for real estate agents, each representing strengths and weaknesses. And there are also scams to avoid. So before you begin searching for an Allentown PA partner, it’s best to know and understand the various types of professionals, along with what each does best. Finding and selecting the right Realtor partner matters, so knowing these distinctions will help you choose the best-fit candidate for the job.
<a href="https://www.homelight.com/blog/buyer-questions-to-ask-a-real-estate-agent/">Homelight.com shared four certifications</a> and designations that homeowners will likely encounter more frequently. Here’s how they are and what they mean to you.
The Realtor: A Realtor® is a real estate agent who is also a member of the National Association of Realtors (NAR). The Code of Ethics and governing rules outlined by the association's board govern these agents' duties to their buying clients, the general public, and other real estate professionals. There are over 1.5 million Realtors® in the U.S.
The Seniors Real Estate Specialist, aka SRES: Real estate agents who have been educated and experienced in assisting buyers and sellers over the age of 50 through the house buying process.
The Accredited Buyer Representative, aka ABR: An Accredited Buyer Representative is a real estate agent that has been trained to work with buyers. These agents have extensive expertise assisting customers throughout the home purchase process.
The Certified Residential Specialist, aka CRS: Agents who have completed a thorough residential sales course and passed an exam may use the title Certified Residential Specialist (CRS). To earn this credential, agents must finish a comprehensive training program on the ins and outs of residential sales.
How to Find a Realtor Online
It’s not hard to find a Realtor online. A quick, general search, and you’ll have pages of options. But you’ll want to peek at reviews and do some homework of the various agents who all want your business. Here are the <a href="https://birdeye.com/blog/realtor-ratings/">most popular resources</a> for not only identifying top-performing real estate professionals but also providing ratings to help.
Zillow
The benefit for Zillow is that this platform was created especially for real estate. They have distinct star ratings for qualities like process expertise, local knowledge, negotiation skills, and responsiveness. They also do things a bit differently from other websites in that they break down local real estate agent evaluations by zip code. In addition, the user must create a Zillow account, making it harder to fabricate reviews.
Realtor.com
The <a href="https://www.realtor.com/realestateagents/lehigh-valley_pa">National Association of REALTORS</a> is a real estate trade group that operates the Realtor.com site. The listings for land, houses, and rentals are all there. It obtains data from MLS. Because it is designed with Realtors in mind, the evaluation categories are tailored to those skills, such as market knowledge, overall rating, customer service, professionalism, and communication. You may get a comprehensive analysis of the local housing market, trends, presently available homes, school ratings, as well as top-rated local agents at Realtor.com.
Google
Now it's Google's turn. Some would claim that Google reviews are comparable to Yelp reviews since the platform offers access to any company. Any active Google account user can submit a review on the site. When people search for a realtor, the listing will appear on the right side of the screen. If everything is correct, a star rating and the words "X Google reviews" will be included next to the item. Searchers can read other users' real estate agent evaluations after clicking on the link.
Facebook
Realtors are making money off of Facebook by having a company Facebook page that allows consumers to recommend local real estate agents. The best part is knowing who authored the review and how you may improve your services. Also, Google will display reviews on the page in the search results.
Yelp
When it comes to real estate agent ratings, the first name that springs to mind is Yelp. If you're looking for expert feedback on any service, Google will most likely feature Yelp on the top page of search results. People may see orange stars by your name when they "Google you" if Google uses Yelp profiles to create its ratings. And Yelp has a policy for flagging fraudulent reviews.
How to Find Great Agents through Referrals
Talk to your friends and family about their recent real estate transaction experiences. But don’t forget to also explore other referral options with some of your other connections. Maybe check with your banker or lending agent for a referral. Ask your accountant about their experiences with Allentown, PA, real estate agents. Use the feedback you receive from these sources to help you narrow down your search to specific groups or top few agent prospects.
Once you have a narrowed list of agents based on your referrals, you can go back to your online search. Look to Yelp and Google for reviews about those real estate agencies or individual Realtors directly. An occasional disappointing experience won’t be a red flag. But any agents with several less-than-stellar reviews are probably worth avoiding.
Questions to Ask Before Working with a Real Estate Agent
Before you decide to work with a real estate agent, be prepared to do a little vetting. Have a conversation with each agent. And here are some great first-round questions to ask, <a href="https://www.homelight.com/blog/buyer-questions-to-ask-a-real-estate-agent/">according to Homelight.com</a>.
How long have you been an agent?
Do you work as an agent full or part-time?
How many buyers do you represent right now? Sellers?
What’s the average time you spend with a buyer before closing?
Will we be working with you directly, or do you have a team?
Can you offer <a href="https://www.homewayre.com/blog/first-time-homebuyer-grants-to-know-about-in-pa/">recommendations for other services</a>, like appraisers, inspectors, contractors, and moving companies?
How your prospective agent answers those questions will help you decide if you’re settling on the right partner.
What Performance Metrics Matter When Choosing an Allentown, PA Realtor?
While you’re asking questions, you’ll want to be mindful of certain metrics. Not all Allentown, PA Realtors are created equal. And the proof is in the home selling and listing finding pudding.
Ask about how many buyers the agent worked with in recent months.
Ask, too, how many of those buyers were able to buy their dream homes.
The broad-stroked average number of homes closed in a year is ten.
Ask specifically if the agent has found homes for buyers within the price range you have in mind. Some agents are great, but only within certain types of homes, specific areas, or price ranges.
Ask for an explanation of how the commissions work. Buyers don’t typically pay agent fees. But again, you want to know before you commit to working with a Realtor who does.
You’ll Never Go Wrong with Homeway Real Estate Professionals
If the thought of all these vetting tips has your head spinning, there is an alternative. When you need to know how to find a <a href="https://www.homewayre.com/blog/11-reasons-your-house-isnt-selling-in-hot-market/">Realtor in Allentown, PA</a>, there’s really only one call you need to make. The team at Homeway Real Estate will check all the boxes when it comes to experience, Lehigh Valley expertise, and proven results.
If you’re ready to take the plunge, put your house on the market, and start your search for the ultimate dream home, <a href="https://www.homewayre.com/">Homeway Real Estate is ready to help</a>! When you need to find a great Realtor in Allentown, PA, you can follow these tips or just give our team a call.2021-12-20T13:15:00-07:002021-12-20T14:22:00-07:00Alex Lopeztag:homewayre.com,2012-09-20:7626Buying a House with the Best Real Estate Timing Expectations<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blogs_-_timing.jpg" width="1920" height="1080" />
Like all life-changing decisions you face, the best outcomes sometimes boil down to perfect timing. And in real estate, timing is everything. Real estate timing matters whether you’re buying or selling, and it's all about managing your timing expectations. For anyone buying or selling a Lehigh Valley home, it's important to not only understand when to make a move but also when to expect the results you want.
The housing market can be volatile, as we’ve seen over the last two years and as a result of the pandemic. And you might be feeling the pressure to take advantage of the <a href="https://www.homewayre.com/blog/11-reasons-your-house-isnt-selling-in-hot-market/">hot Lehigh Valley real estate market</a> right now. But before you make any official decisions to list your house or start shopping for a new or new-to-you home, here’s what you need to know about real estate timing, learning what phase of the real estate cycle you’re in, and making the smartest investment decisions at the right time.
Let’s Talk About the Planning Stage of Real Estate Timing
Leave the impulse buying to your lunch decisions. Buying a house or deciding to list your house are not impulse decisions to be taken lightly, no matter how hot the real estate market is right now. Home buying represents the most significant purchase you’ll likely ever make. Don’t go into that process the same way you’d order Taco Bell.
Planning and proper preparation can take up to three years, yes three years. First, there is some soul-searching involved to come to the decision you’re ready to move. Then there is financial planning and long-term lifestyle decisions to make. Do you need to consider the local school systems for the kids or commuting time for a job or career change? Take the time you need to think through the personal motivation for moving. Don’t rush into a transactional decision that you might regret later.
Here are three processes to consider during this one-to-three-year period before you decide to buy or sell:
1. Is Buying or Renting Your Best Option
Explore all of your potential options when it comes to buying or renting. The economy, your job situation, and the local market will play a part in how you make your official decision.
Also, consider where you are in life. For example, if retirement is in your future, you might not want the hassles of homeownership and decide to trade in snow plowing for a travel schedule. Alternatively, if you’ve been renting for a while, you might be ready to make the homeownership commitment.
2. Analyze Your Budget & Finances
Look at your budget now as well as over the next ten years. You will need to consider your current financial situation as well as prepare for worst-case scenarios. Mortgages are based on debt-to-income ratios (DTIs.) Analyze your current credit scores and outstanding debt. You might decide there are a few bills you want to pay off before you follow through on securing a home loan. And it might take you the better part of a year to financially plan for the best home buying experience.
3. Start Saving Before You Buy
Even if you feel your finances and credit are healthy, you’ll still want to create a cushion for yourself before diving into a home purchase. Real estate timing means planning ahead for unforeseen costs. Maybe your existing home needs renovations before you sell. Perhaps your dream home requires a more substantial down payment. Whatever lies ahead in your home buying journey, it will be easier to tackle with a little extra cash in the bank.
When Is the Right Time to Begin Looking into a Mortgage Loan?
There’s no precise <a href="https://www.homelight.com/blog/buyer-down-payment-assistance/">phase of the real estate cycle</a> in which securing a pre-approved is ideal – as long as it’s before you start house shopping. Look into special assistance programs. Start by browsing the internet for region-specific <a href="https://www.homewayre.com/blog/first-time-homebuyer-grants-to-know-about-in-pa/">down payment or loan assistance</a>. There are resources available for FHA loans, Veterans assistance, and others. Starting there will help you carve out your financial to-do list before you start shopping for a home or putting your house on the market.
Bring in an Expert Real Estate Professional
You might be inclined to hop online and start researching house pricing predictions for the next five years or try to estimate when home prices will go up before making your official decision. And when most real estate industry experts suggest buying and selling is best during the late summer or fall, you might hesitate to move forward right now. But in the end, every real estate market is different. And the best way to keep your finger on the perfect-timing pulse of the Lehigh Valley is with the help of Lehigh Valley experts, like the professionals at Homeway Real Estate.
Having a real estate professional in your corner from the beginning will be critical in having a successful home buying and home listing process. Let the agent talk you through the next steps and help you decide what new home amenities make sense for you and your family. The right agent can also help you get your existing property ready for market. Take the complicated guesswork out of everything that comes next by working with a professional you trust in the Lehigh Valley.
Start House Shopping One to Six Months Ahead of Your Moving Schedule
Now’s the time to start seriously considering what you want in a new home. If you’re relocating within the Lehigh Valley, you’ll have a <a href="https://www.homewayre.com/blog/23-easton-area-home-styles-you-simply-must-see/">host of home styles and communities</a> to explore, too. Are you downsizing with interest in single-story ranch homes? Or is your family growing with a need for larger homes in family-friendly neighborhoods? Start creating wish lists for yourself, too. And your real estate agent can help you decide which home features are realistic for the areas you’re considering. Keep in mind too, what you absolutely need in a new home should guide your efforts, not just the nice-to-have options.
Online Home Browsing Options
You have a ton of online resources at your fingertips. You can begin your dream home search with a few of the common listing sites, like Zillow and Realtor.com. Check out neighborhoods and use the Google Maps street view option to explore a community. And some of the online listing resources offer virtual tours and comprehensive amenity details for each home featured. And don’t be afraid to check out the various Lehigh Valley communities by browsing city and regional sites, activity calendars, and other city data-related information.
Navigating Open Houses
You might spend months searching for the ideal home. And you won’t have enough hours in the day to visit every open house tour. But visiting a few open houses in a target area can help you better understand the types of homes and amenities in the local real estate market. Rely on your real estate agent to help you determine which top-pick homes are worth seeing in person. Then, stick to your house-hunting checklist and make amendments as you find features you don’t like and others you do.
Real Estate Timing & Negotiating the Purchase Price
Once you’ve identified the <a href="https://www.homewayre.com/blog/youve-found-a-house-for-sale-in-bethlehem-now-what/">Lehigh Valley home of your dreams</a>, you’ll need to make an offer. Negotiation is best left to your real estate professional, who has extensive experience and can represent your best interests. But you’ll need to be aware of how much time this back-and-forth might take. There may be a counteroffer to consider. And the seller will have to agree to fees, earnest money, and any contingencies.
Home Inspection Processes as Part of Your Real Estate Timeline
Your <a href="https://www.bankrate.com/real-estate/how-long-does-it-take-to-buy-a-house/">real estate timing plan</a> should also make room for the home inspection process. After you’ve found a house you like, you’ll need to make sure you’re aware of its condition from the roof to the foundation. You won’t want to close on a house that you later find out needs repairs you weren’t ready to make. Pest damage, flooding basements, and drafty windows can all be costly. And be prepared to start the home buying process all over again if the house you have in mind presents with deal breaker maintenance challenges, adding another potential six months to your real estate timing schedule. Whatever you do, though, don’t skip this mission-critical phase of the real estate shopping cycle.
Locking in Your Mortgage Rates
When you’ve identified a property that you’re serious about buying, it’s time to also lock in your mortgage. At this point, you’re about one month away from closing in your real estate timing schedule. Depending on your lender and real estate market at the moment, it might take a few extra weeks to lock in your rate and prepare title work for closing. <a href="https://static.elliemae.com/pdf/origination-insight-reports/EM_OIR_DECEMBER2020.pdf">As of December 2020,</a> the average timeline to close from this point was 58 days.
Other Steps During the Three to Four Week Window Before Closing
In the month before closing, you’ll also likely be required to secure homeowner’s insurance and schedule an appraisal of the dream home you intend to buy. Your real estate agent can guide you through these steps, but your lender will usually organize the appraisal, and your insurance agent can help with homeowner’s insurance. The appraisal, remember, will help your lender determine the balance in your loan with the home’s value. If the house you have in mind appraises below what you’re paying for it, you’ll have more work to do. These steps might add additional weeks to your house-buying timeline.
Homeowner’s Insurance a Week Prior to Closing
About a week before closing, the title review and title search will be completed. This is the process in which the title company reviews a property’s history. There is a thorough examination of past ownership, easement information, liens on the property, and potential deed restrictions. While most title processes can take place within a week, it’s not always smooth sailing. If there are issues that need to be resolved first, it could delay closing by a few days to several weeks.
Real Estate Timing for Your Final Walkthrough
A few days prior to closing, you’ll be notified that everything’s in order. An underwriter will prepare the paperwork for closing, where all the signatures happen, money exchanges hands, and keys transfer ownership. But now is also the time to schedule that final walkthrough of the property in question. A lot can happen between your home inspection and this point in the timeline. You’ll want to verify the home’s condition is as it was during your last viewing. Here’s where you’ll verify requested repairs, too. Your Homeway Real Estate agent will help you schedule this engagement. If there are any issues, it could delay closing.
Closing Time
It could realistically take you anywhere from one month to three years to get to this point in the home buying process, making it even more momentous of an occasion. But you’re not done yet. During the closing, you’ll go over and finalize the details of your loan. And then, you’ll review and verify the details of the new home. You’ll want to be prepared with your list of things to bring to closing, usually provided to you by your title agent or real estate attorney if you have one. Be thorough about reviewing all the terms and conditions before you sign. Ask questions if you have them, and don’t be afraid to raise your hand if you’re uncertain about anything. The actual closing could take anywhere from five minutes to five hours.
Before you buy or sell a home in the Lehigh Valley, you’ll want to be aware of these real estate timing considerations. And the <a href="https://www.homewayre.com/">Homeway Real Estate professionals</a> can help you at any phase of the real estate cycle. Having the right expectations and taking the necessary steps to plan ahead can ensure you have the best experience possible. So start browsing the <a href="https://www.homewayre.com/property-search/results/">Homeway Real Estate listings</a> today to see what incredible homes are available on the market today. And call our team to help you navigate every point in the real estate timeline!2021-11-22T08:58:00-07:002021-12-14T09:32:35-07:00Alex Lopeztag:homewayre.com,2012-09-20:4553What Are Closing Costs in Pennsylvania<img src="https://assets.site-static.com/userfiles/2131/image/Homeway_Blog_Posts_81.png" width="779" height="430" alt="A Real estate agent and a couple working through a home closing" />
There’s more to buying a new home in Pennsylvania than the purchase price alone. And if you’re ready to enter into an agreement for a home purchase or sale, it’s important that you know what additional costs to expect so that you can budget appropriately. Both the buying and selling parties will be held responsible for some of the expenses associated with closing on a home. And these additional expenses are often referred to as <a href="https://www.homewayre.com/buyers/what-are-closing-costs/" style="font-size: 17px;">closing costs</a>.
It can be frustrating to realize just how many extra charges are involved with a real estate transaction. However, these closing costs are necessary and can help guarantee the legal property exchange of ownership in a way that protects both the buyers and the sellers. Today, we’ll highlight what closing costs you can expect with your <a href="https://www.homewayre.com/blog/the-ultimate-guide-to-buying-your-first-home/">home-buying</a> journey.
What Buyers & Sellers Need to Know About Closing Costs
No one likes unexpected expenses. But if you aren’t anticipating the closing costs or are unable to plan ahead, you might be caught off guard by the full cost of buying or selling a home. Luckily, in Pennsylvania, your real estate professional is required to provide you with a statement of estimated cost and return. This document provides the buyers and sellers an estimated closing cost.
If you’re the home buyer, this statement can help you predict the budget for the total amount you are likely to need, in addition to the home’s down payment, to close on the house. The closing costs are important to sellers, as well, because they offer insights in calculating potential profit from the sale of the home minus the applicable fees and expenses.
Average Closing Costs
Closing costs will vary by state. It’s important to know that the average closing costs in Pennsylvania rank as some of the country's highest after taxes.
Typically for a buyer, closing costs can be about 5% to 6% of the home's value.
In Pennsylvania, the average closing cost before taxes is roughly $4,000. After taxes, closing costs can average around $10,000. Overall, you can expect your total closing costs to range between $6,000 and $15,000, depending on the actual value of the home and region of Pennsylvania.
Common Expenses to Consider
To help you prepare accordingly, here are a few of the fees you can expect to pay as the buyer of a new-to-you home:
Appraisal Fee (averaging $600)
Courier Fee (averaging $25)
Closing Protection Letter (averaging $125)
Deed Transfer Tax (Buyers and sellers will typically split this fee 50/50, though it's dependent on the sales contract. Generally, it costs 1% of the home’s sale price, and varying municipalities charge an additional 1%.)
Title Insurance (The costs associated with title insurance vary based on the house you want to buy and are also determined by the PA Department of Insurance.)
Per-Diem Interest (This represents the interest on your loan from the closing date to the last date of the month.)
Prorated Property Taxes (These are calculated and applied, allowing you to pay taxes on the number of days you will own the property.)
Mortgage Lender Fees
Commissions
Prepaid Homeowners Insurance
Broker / Transaction Coordination Fee
These fees represent some of the most common across the average home-buying transaction. But, of course, not all fees apply to everyone, and alternatively, some property exchanges <a href="https://www.homewayre.com/buyers/what-are-closing-costs/">have additional fees</a>. If you represent the selling side of the process, you can expect your portion of the closing costs, too. These include document preparation, home warranty, realtor commissions, brokerage services, seller contributions, and mortgage payoffs.
If you have questions about your <a href="https://www.homewayre.com/buyers/">buying</a> or <a href="https://www.homewayre.com/sellers/">selling</a> journey, it’s essential to work with your real estate agent professional to fully understand the closing costs specific to your transaction. Your agent can set the expectation with you and even assist in <a href="https://www.homewayre.com/buyers/making-an-offer/">structuring an offer</a>. Homeway Real Estate is a local, full-service real estate agency and can be your trusted partner throughout the journey. Explore our <a href="https://www.homewayre.com/">website</a> further to learn more and see how our team of professionals can help.
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Still Dreaming of a Dream Home?
Are you waiting patiently for the stars to align to make your dream of homeownership a reality? Chances are, you don’t have to hope for long. There are first-time homebuyer grants available that can help you finally take the next step toward your owning your very first home.
Owning a property is vastly different from renting or living with others. And that prospect alone can be both intimidating and enticing. Financial obligations can also play a role in the stress associated with buying a home. Most people suggest the only way to move forward is with a 20% or higher <a href="https://www.homewayre.com/blog/5-secret-sources-of-down-payment-money/" target="_blank">down payment</a> sitting in the bank. Coming up with that amount of savings can be incredibly daunting for some individuals and families. Then adding in closing costs and additional fees, it can seem practically impossible to become a homeowner.
Despite how difficult it can seem, there are first-time homebuyer grants and programs, specific to Pennsylvania residents, that can help. Finding an affordable mortgage rate, reasonable down payment amounts, and not-so-scary closing costs is actually quite feasible.
The PA Housing Finance Agency, or PHFA, has several available <a href="https://www.homewayre.com/blog/5-types-of-mortgage-loans-ideal-for-homebuyers-in-2020/" target="_blank">mortgage programs</a> and purchase assistance programs worth exploring. <a href="https://www.homewayre.com/blog/how-to-get-preapproved-for-a-home-loan-in-pennsylvania/" target="_blank">Eligibility requirements</a>, including income, credit, and location, will vary for each program. To <a href="https://www.homewayre.com/blog/9-financial-tips-for-buying-your-first-home/" target="_blank">help</a> you understand each available assistance program, we have put together a general overview and introduction.
For more detailed information regarding requirements, terms, and conditions, you can explore <a href="https://www.phfa.org/homebuyers/">https://www.phfa.org/homebuyers/</a>.
First Front Door (FFD)
First Front Door can help those looking to buy their first home by offsetting closing costs as well as down payments. For every dollar you can contribute, participating FFD institutions will offer three dollars in assistance matching, up to $5,000. To learn more about how to make FFD work for you or to see how you can qualify, contact or visit an FFD provider and ask specifically about the First Front Door grant.
PHFA’s New K-FIT Program
The Pennsylvania Housing Finance Agency is launching a new program called the Keystone Forgivable in Ten Years Loan Program (K-FIT.) This unique assistance platform is designed to offer a second loan with a forgivable rate of 10% over ten years. The program allows you to pay off the balance when you sell the home, never make a payment, earn assistance up to 5% of the purchase price, and is based on a zero percent interest model. If you live in the home, the loan can be forgiven without ever making a payment. There are some requirements, including a minimum 660 credit score, income limits, and these loans are considered on a person-by-person basis. Approval will also be determined within certain debt-to-income parameters along with a 401K and a bank account.
PHFA Keystone Government Advantage (K-Gov)
The K-Gov program offers up to 4% or $6,000 in assistance, whichever is lower. and it is not forgivable. The assistance is given in the form of a 2nd loan. Although this loan is not forgivable, it is paid back over 10 years interest-free. Participants do not pay any interest on the assistance portion. Anyone can apply who is looking to buy their first home.
Keystone Home Loan with Advantage
Another second loan that can be incredibly helpful in realizing your homeownership dreams is the Keystone Advantage Assistance Loan Program. These loans could be up to 4% of the home’s price, or $6,000. The main difference with this program is the income limit. This program has an income limit, where the K-Gov does not. This platform allows buyers to take out a second mortgage immediately to help cover down payment requirements or closing costs.
The HOMEstead Down Payment and Closing Cost Assistance Loan
For other first-time homebuyers who meet specific requirements, they, too, can potentially qualify for the HOMEstead Down Payment and Closing Cost Assistance Loan. This program, similar to the Keystone Advantage Assistance Loan Program, provides an opportunity for a second mortgage. This loan is offered with no interest.
ACCESS Home Modification Program
For any first-time homebuyers with a disability within the household can qualify for these programs. In addition to potentially being eligible for the other available grants, the ACCESS Home Modification Program provides mortgage loans that can be used for accessibility modifications. Make your dream home perfect with proper door widths, lifting devices, and spacious hallways using this program.
Don’t let the <a href="https://www.homewayre.com/blog/how-to-finance-the-home-of-your-dreams/">finances</a> intimidate you or get in your way of becoming a homeowner. If crunching the numbers has left you waiting indefinitely, check into some of the first-time homebuyer grants. You could be house-hunting next week. And many of the obstacles blocking your path to buying a home could be lifted. For more help with resources and embarking on your first-time home buying journey, let the professionals at <a href="https://www.homewayre.com/">Homeway Real Estate</a> help turn your dream into a dream home reality.
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// ]]>2021-11-20T07:00:00-07:002022-04-05T03:06:10-07:00Alex Lopeztag:homewayre.com,2012-09-20:455211 Reasons Your House Isn't Selling in Hot Market<img src="https://assets.site-static.com/userfiles/2131/image/46_of_the_Best_Places_to_Eat_2.png" width="780" height="430" />
Right now, the real estate market is pacing at record highs. Mortgage rates are rock-bottom and demand is through the roof. But sometimes, despite all of the hot home <a href="https://www.homewayre.com/blog/7-key-trends-expected-to-shape-real-estate-in-2021/" style="font-size: 17px;">market trends</a>, a <a href="https://www.homewayre.com/blog/5-things-to-avoid-when-selling-your-house/" style="font-size: 17px;">house just doesn’t seem to sell</a>. Why then, when all the other houses are selling so well, does yours appear stuck in forever-listing limbo? We'll highlight eleven reasons why your house might not be selling in today's hot market and how to reverse this to <a href="https://www.homewayre.com/blog/how-to-get-multiple-offers-when-you-sell-your-house/" style="font-size: 17px;">get multiple offers</a>.
1. The <a href="https://www.homewayre.com/blog/home-pricing-strategies/" target="_blank">Price is Too High</a> (Or Way Too Low!)
<a href="https://www.homewayre.com/blog/home-pricing-strategies/">House pricing</a> is a tricky and strategic balancing act. If you list it too low, buyers might think there’s something wrong with it, as if you were desperate to move. But if you price it too high, potential buyers might see for themselves that it’s not quite worth the asking price.
When you’re <a href="https://www.homewayre.com/sellers/pricing-your-home/">looking to calculate your home’s price</a>, you need to consider four key criteria: comps in your same neighborhood, a market evaluation, how much work went into the home's condition and the residential quality of the area.
Your real estate agent partner should have the tools necessary to come to the right pricing conclusions. However, even realtors can sometimes be wrong. If you're listing your home by yourself, maybe you made the pricing mistake. It could be time to go back and revisit your price and the steps that led you to that number. You can make adjustments accordingly to keep your listing price in line.
2. It Doesn’t Have Inviting <a href="https://www.homewayre.com/blog/5-ways-to-improve-curb-appeal-before-you-sell-your-lehigh-valley-home/" target="_blank">Curb Appeal</a>
Buyers will make judgments about your home within the first few seconds of pulling up to the curb, long before they ever get in the front door. It’s called curb appeal because a home that is attractive at the curb will appeal to buyers in a way that maybe inspires them to see what’s inside. If you have a budget to invest to help your home's marketability, be selective about what improvements you do. If you aren’t sure about renovating a bathroom or redoing the exterior siding, the odds are favorable that the exterior improvement will <a href="https://www.homewayre.com/blog/5-inexpensive-home-improvements-that-can-drastically-increase-value/">get you the most bang for your buck</a>. Touch up chipping paint, replace a missing piece of siding, and trim the hedges. A broken window or overgrown fence lines can deter buyers. Remodeling a bathroom is great. But not fixing the front patio steps can lead buyers to decide against purchasing altogether before they ever see that remodeled bathroom.
3. It’s Too Unique
Sometimes a house doesn’t sell because it’s unique and in some cases, kind of an oddball. It certainly doesn’t mean that there’s anything wrong with the house necessarily, just that it’s different. It could be that your house is massive but in a neighborhood of small homes (or vice versa). Your home might be an expensive house in an area of cheaper homes. It could be a perfectly average house in a very unusual place. Or your house might have a quirky personality, either in architecture, design, or interior. In these unique cases, there isn't much you can do other than wait for <a href="https://www.homewayre.com/blog/five-tips-for-attracting-motivated-buyers/">just the right buyer</a> to come along. Don't be tempted to just reduce the listing price, hoping someone will overlook the quirks. Of course, sometimes you need to <a href="https://www.homewayre.com/blog/home-pricing-strategies/">adjust your pricing</a>. However, unique homes typically sell when the right potential buyers into the home to see it first hand. someone who will fit it like a glove.
4. It Needs Repairs
A home found in disrepair can be a big red flag for home buyers. If the house has visible problems, they will automatically wonder what hidden issues it has, too. And if it has hidden problems found during the inspection, you might get a lot of offers, but they back out before finalizing. You have to be honest: if your house needs repairs, you should fix what you can improve and adjust the price as needed.
5. The Pictures Aren’t Great
Houses are selling so fast that they often get snapped up the moment their pictures show up online. But if yours isn’t among them, you might want to ask if the photographs are of the <a href="https://www.homewayre.com/blog/top-5-home-buyer-turn-offs/" target="_blank">quality needed</a> to get that home off the market. You don’t need Ansel Adams, but the more professional your pictures look, the better. Make sure that you have well-framed photos that highlight all the good stuff, not the bad stuff (avoid showing your neighbor’s unsightly yard), and have enough pictures to give online lookers a complete view.
6. It Could Use Better Staging
As with curb appeal, there’s a ton to be said for the staging of the house. People want to be able to see themselves living there. They’re not particularly interested in knowing that your kids and your dogs are currently in the middle of a slumber party. If you have to live in the home while trying to sell it, it will be challenging to keep it clean for <a href="https://www.homewayre.com/sellers/showing-your-home/">showings</a>. But the better you can do about keeping things tidy, the more likely it is to sell. And there are endless lists of <a href="https://www.homewayre.com/blog/the-ultimate-house-showing-checklist-in-the-lehigh-valley/">things you can do to make the staging better</a>, from taking down personal photos to decorating more generically to rearranging the furniture. If you have questions about staging, ask your realtor or look online for tips because it matters.
7. The Appliances Are Old
As surprising as it might be, buyers put a lot of stock into a home’s appliances. They tend to judge the kitchen and the whole house by the age of the fridge and the stove. Part of this is subconscious. The presence of outdated appliances can make a house seem out of style to them or out of date. It can also lead potential buyers to wonder then if the furnace is just as old as the microwave or the air conditioner is as old as the freezer.
8. It’s Not Getting the Right Exposure
There’s a difference between a lot of exposure and the right exposure. Your house might have been in front of many eyes, but if it’s not in front of the right ones, you’re sunk. You want your home to get in front of the potential buyers that will be attracted to it. And you do that by targeting those listings and ads. Use appropriately descriptive listings so that when people search for specific amenities, they find you. If you’re in a high-end area, you want to feature your home on high-end websites. If the house is niche in some way, offering a massive garden or a garage that can fit eight cars, for example, you'll want to be targeting gardeners and car enthusiasts.
9. It Smells Bad
As soon as someone walks in the door and takes that first inhale of air, the next reaction could make or break a sale. You want the aromatic impression to be a good one, or at the very least, not a bad one. Some people use scented candles, and others bake bread. Smells can be difficult to identify and remedy, especially if the house is old or has been vacant for an extended period of time. Odor can also be a problem if the house has a history, including a former smoking resident or feline collector. Carpeting and cloth surfaces can lock in smells that you might not even realize are there, too. Sometimes the answer can just be a few air fresheners in each room. But sometimes the solution requires a deep clean and then some.
10. It’s Been Listed for More Than 120 Days
Market transparency data suggests that most homes sell, for the most money, within the first 30 days of listing. Of course, you probably hoped your house would sell that soon. But if you’re crossing more than 120 days off the calendar without traction, the time on the market alone could be counting against you. Buyers perceive a long-term listing as a potential poor-quality home. Of course, that isn’t always true and this kind of signaling isn’t your fault. But it can point to other issues. If you haven’t opted to consider some of the other reasons mentioned above, or are waiting too long to address upgrades, your house may fall into this long-term listing pitfall.
11. You Have the Wrong Realtor
A realtor is supposed to be in your corner during the listing process and beyond. They should be just as motivated to get the house sold as you are. But if your realtor seems disinterested, is often unavailable, or gives you unsound advice, maybe it’s time to <a href="https://www.homewayre.com/blog/curious-questions-to-ask-your-real-estate-agent/">find someone else</a>. Don’t feel bad about this! You have a house to sell, and the realtor works for you. You can <a href="https://www.homewayre.com/sellers/">partner with a new one at any time</a>, and you should do so the moment you feel your realtor isn’t doing the best work. If your agent isn’t proactive about scheduling open houses or showings, it could be time to start looking.
If your <a href="https://www.homewayre.com/blog/secrets-to-marketing-a-home-for-sale-in-lehigh-valley/" target="_blank">home isn’t selling</a>, consider these points as the <a href="https://www.homewayre.com/blog/frequently-asked-questions-for-sellers/" target="_blank">first places to look</a> for improvement. And if you think you need better listings, more impressive pictures, targeted ads, or a new realtor altogether, let Homeway Real Estate help!
You can also rely on a realtor for buying your next house and even <a href="https://www.homewayre.com/buyers/making-an-offer/">structuring your offer</a> or <a href="https://www.homewayre.com/buyers/what-are-closing-costs/">learning about closing costs</a>. Always work with the best.
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// ]]>2021-11-20T07:00:00-07:002021-12-15T10:36:58-07:00Alex Lopeztag:homewayre.com,2012-09-20:756123 Easton Area Home Styles You Simply Must See<img src="https://assets.site-static.com/userfiles/2131/image/easton_homes.jpg" width="1920" height="1080" />
There are plenty of different reasons to <a href="https://www.homewayre.com/blog/13-things-to-do-in-easton-pa-the-whole-family-will-love/">move to Easton, Pennsylvania</a>. Ask any Easton resident what they love about the area, and you'll be in for a lengthy conversation. With a lively and friendly community promoting growth, a rich local history, and with tons to do, Easton continues to be at the top of some of the Lehigh Valley’s best places to live lists. But another attraction for new potential residents is the wide variety of <a href="https://www.homewayre.com/blog/the-most-popular-pennsylvania-home-styles/">Easton area home styles</a>, making it easy to find the home of your dreams.
Easton is the county seat in Northampton County, and roughly 27,000 residents call Easton home. Life here feels one part big-city and one part country living, making it a kind of “Goldilocks” of the Lehigh Valley. And the picturesque landscape at the confluence of the Lehigh River and Delaware River makes the perfect backdrop for all types of unique and desirable Easton area home styles from which to choose.
Not all of these home styles will be available for sale all the time, of course. And some house designs are more prevalent in the Easton area than others. But here are some of the unique residential home styles and structures to look out for as you start browsing for an Easton home to buy.
1. Traditional Ranch Homes
If simplistic is the order of the day, the traditional ranch home is a great option. Usually noted by their efficient living spaces, ranch homes tend to offer simple floor plans and attached garages. This Easton area home style is perfect for upgrading with additions if customizing a home sounds appealing to you. The style itself <a href="https://www.bhg.com/home-improvement/exteriors/curb-appeal/house-styles/">dates back to 1932</a> and continues to be a popular layout for new construction homes still today. Homeowners love the single-story layout, too, making access to every corner of the house easy and without stairs. Ranch homes are also popular because they can be built with a variety of different features, amenities, and layouts, making them feel less cookie-cutter than some home styles.
2. The Cape Cod Home
Dating back to the 1930s, the Cape Cod style home is a signature design in Massachusetts. But these sometimes one or one and a half story homes are prevalent all over the U.S., including in Easton, PA. To spot one of these gems, you can look for steep rooflines, multi-pane windows, and wood siding. Inside a Cape Cod style home, you can look for smaller living spaces and hardwood floors. These styles will have an upstairs room that may or may not be finished, giving you options for developing the space how you see fit. You’ll typically see dormer windows with the Cape Cod style, helping to bring light and space into the living area, as well.
3. The Tudor-Style House
If you’re looking for an Easton area home style that harkens back to the architectural designs of 16th-century England, look for the Tudor house style. Of course, today’s Tudors are modernized versions of the traditional Medieval layouts, with all the must-haves of today’s lifestyles. But you’ll see hints of the old-world with the steeply pitched rooflines, tall and narrow windows, and half-timbering. Most of these homes also have those prominent and easy-to-identify cross gables.
4. Victorian Home Styles in Easton, PA
The Victorian home can come in different styles, but all are reminiscent of architecture from the Victorian Era back in 1860 to 1900. These romantic layouts are incredibly distinctive, featuring an attention to style and engineering details like no other home style. Expect these homes to feature two or more stories, with tons of nooks and cranny spaces throughout for storage. There are traditional and more contemporary Victorian home styles, both trends offering various amenities. However, you’ll recognize one when you spot it just by the patterned shingles, steep roofs, cutaway bay windows, and expansive front porches.
5. Stunning Country French Homes
Back when France occupied much of the eastern portion of the country, in the 18th century, the French settlers brought with them a unique perspective on home building and home style. <a href="https://www.bhg.com/home-improvement/exteriors/curb-appeal/country-french-style/">Country French homes</a> are well-known for their incredible curb appeal and stunning driveway designs. But they also tend to feature narrow windows with shutters, stucco walls, and steeply pitched rooflines, with one-story architecture. You don't have to be French or live in the country to enjoy these home Country French styles.
6. Find a Farmhouse in Easton, PA
You don’t have to be a Pennsylvania farmer with tractors or own livestock to enjoy the beautiful designs of <a href="https://www.rockethomes.com/blog/home-buying/home-on-the-range-modern-farmhouse-decor">the traditional Farmhouse</a>, either. Sometimes these homes resemble old-time barn structures with barn-looking rooflines. But most will have the giant front porch, perfect for rocking with a cold glass of lemonade. There is often a central fireplace, tall ceilings, and exposed support beams for a more rustic look and feel. These might present with stone or brick exteriors, as well. Even modernized versions or remodels of these Farmhouse style homes still offer that relaxed, rustic ambiance you won’t likely find in other Easton area home styles.
7. What About Contemporary Styles?
When you see a home listing with the phrase, “Contemporary style design,” you may not know what that entails. After all, there are lots of interpretations of what is considered “contemporary.” But in real estate, the Contemporary style of home is usually referring to an architecture made popular between 1950 and 1970. Simply put, these homes have simple forms and geometric lines, with open floor plans and lots of windows. There is usually a healthy mix of contrasting materials, too. For example, you might see a variety of textures like exposed roof beams and smooth metal accent surfaces. These homes will sometimes feature a low-pitched roofline or an entirely flat roof, as well.
8. The Split-Level Home Design
Everyone wanted a Split-Level back in the 1950s and 1960s when its ranch-style versatility made home lifestyles different. Living spaces are separate in the home, usually connected by shorter flights of stairs, contrasting the official two-story home design style that presents long flights of steps. The Split-Level design is still popular today, with so many potential functions for these uniquely distinctive layouts.
9. The Colonial Style House
The iconic Colonial house has been one of the most popular home designs, dating back to 1876. These homes usually feature two or even three stories, perfect for growing families. You’ll hear about different variations of a Colonial, but the Georgian style tends to be most common. There are often fireplaces, and both <a href="https://www.homewayre.com/blog/should-you-be-getting-a-pre-listing-home-inspection-in-the-lehigh-valley/">kitchens and family rooms</a> are on the first floor. Look for brick or wood exteriors, as well. These homes are also popular to renovate. There are plenty of reproduction Colonial materials available for contractors and designers to maintain the look during modernization and remodels.
10. The Cozy Cottage Home
Think English countryside meets modern American architecture, and you have the Cottage Style home design. These charming houses tend to look like they belong in a storybook for children. It became super popular back in the 1920s and 30s, but today’s simple-living home buyers love the Cottage Style. Look for cross gables, arched doors, and steep roofs. They look cozy and inviting regardless of their brick, stone, or stucco exteriors.
11. Mediterranean Houses Are Unmistakable
While they’re not entirely prevalent in Easton area home styles, you might still come across a Mediterranean-styled home for sale here. Made popular as a design in California during the 1920s and 30s, these homes are unmistakable when you spot them. Inspired by a Spanish colonial impression, these homes have arches, grillwork, and typically low-pitched tile roofing. In addition, there are usually courtyards, sometimes with a fountain, promoting airflow between these U-shaped layouts.
12. Easton Area Home Styles Include Townhomes
If you’re not looking for an expensive home investment with all the responsibility that comes with homeownership maintenance, you might live your best life in an <a href="https://www.rocketmortgage.com/learn/types-of-houses">Easton area townhome</a>. These home styles are individually owned and typically share a wall with other property. Townhomes feature more vertically designed living spaces with more than one story. Collections of townhomes may also have shared community amenities you might find appealing. While these living situations can reduce privacy and remodeling flexibility, they’re great options for those looking for a modern and simplistic design.
13. The Craftsman House Is Making a Comeback
Back in 1905 and through the 1930s, the Craftsman home became popular with its extensive woodwork. One of the most distinguishing construction features of these “Crafts-style” houses is the abundance of wood throughout the home’s interior, including built-in bookshelves, seating, and woodworking details. Look for square columns on the porches and low-pitched rooflines. There are often decorative beams and exposed roof rafters, as well. Many of these traditional designs have usable attic spaces, great for remodeling and usage flexibility.
14. The Dutch Colonial
There is Colonial, and then there’s the Dutch Colonial. This home style is much older than the traditional Colonial, back to the early 1600s. Original designs featured one-room homes, but today’s variations obviously accommodate residents to today’s standards of living. Look for the broad gambrel roof and styled dormers. It might look like a “barn house” with flared eaves and decorative porch entryways. Also common with the Dutch Colonial is the existence of the double door.
15. The Lifestyles of the Rich and Federal Colonial
You don’t have to be wealthy to appreciate a Federal Colonial home design, but you’ll feel rich <a href="https://www.homewayre.com/blog/house-hunting-explained-do-you-really-need-that/">living in one of these homes</a>. Sometimes referred to as the Adam Style, this variation of the Colonial home is reminiscent of Roman classicism. These homes have different wings and plenty of decorative embellishments around every corner. The Federal Colonial almost always features a brick exterior. These wealthy-looking styles offer grand entrances, too, usually with prominent pillars, curved stairs, and large symmetrical windows on either side of the structure.
16. Living Your Best Life in a Log Home
It used to be that log homes or log cabins were reserved only for life in the wilderness. Early settlers built their homesteads with available materials, creating an iconic look. But fast forward to present-day homebuilding today, and there are several modern home styles that feature the look and feel of the back-to-nature characteristics you’ll only find with a Log Home. The apparent differentiator of the Log Home is the home style’s exterior, featuring actual logs. But these homes today often feature open floor plans, great use of natural lighting throughout, and a natural atmosphere.
17. Forward-Thinking Mid Century Modern Home Styles
Flourishing in popularity from 1945 through the 1980s, the <a href="https://www.hgtv.com/design/decorating/design-101/all-about-mid-century-modern-architecture">Mid Century Modern home</a> style looks entirely different from its predecessors. Engineers brought new ideas and materials to the homebuilding segment. Look for large glass windows, open spaces, and plenty of flat planes. Many of these homes will also offer unique aesthetics using steel and plywood in a way that feels simplistic yet natural. This design prioritizes function over form and presents in a no-frills, less ornate way. If organic and geometric designs appeal to you, the Mid Century Modern home is ideal.
18. Art Deco Features Can Be Found Anywhere
The official Art Deco home style may have you thinking of tropical locations like Miami Beach. And you wouldn’t be wrong since Art Deco styles are more prevalent in California and Florida. However, Art Deco features are popping up in a variety of places, including in commercial office building designs. Technically, you can spot Art Deco characteristics in plenty of homes across the country today. In some Easton area home styles, you’ll see smooth wall surfaces and fluting or reeding around windows and doors. Art Deco shows up in low relief decorative panels and front facades that appear stepped. When you see liberal use of chevrons, zigzag patterns, or geometrical forms as a home's style exterior, it harkens to the Art Deco design roots.
19. Italianate Style Homes
For those with a keen eye for the ornate and brilliantly decorative, the Italianate style home might be perfect for you. Styled with the elaborate villas of Italy, these styles often present with rounded windows and rectangular doorways. Look for window cornices and corbels with one-of-kind design features. You can almost tell an Italianate style home from its porch layout alone. These houses can come in two, three, or even four stories.
20. The Formal Proportions of the Neoclassical Home
Your idea of the dream home might lie within the design styles and features of the Neoclassical home, complete with formal proportions that reflect Greek and Roman influence. These are the residential homes that look like they could be universities or government buildings with their tall columns and full-height front porches. These are the elaborate home designs that might even have a few domes or towers incorporated into the layout. You won’t find any portion of this home’s style out of symmetry either, with evenly spaced windows and features throughout.
21. Dogtrot Houses: Why the Two Front Doors?
It’s not uncommon in Pennsylvania to spot homes for sale that feature two front doors. You might be wondering what design category that might fall into and why houses seem to have them. Families settling in the area historically used to be comprised of several immediate and extended family members. <a href="https://www.thespruce.com/my-house-has-two-front-doors-3972272">Dogtrot Homes were built</a>, according to some reports, with multiple entries and exits in case of an emergency and in part because transporting glass for windows was more challenging back then. Other historians suggest some doors were simply a status symbol of the 19th century.
22. New Construction for Sale in Easton, PA
If you’re still not sure which home style interior or home style exterior you like best or think you’d rather not deal with potential maintenance or repairs of an existing home, you can look at some of the available new construction homes for <a href="https://www.homewayre.com/property-search/results/#year_2021/">sale in the Lehigh Valley</a>. New developments in Easton have homes for sale right now, with all the latest styles and amenities you’d expect with <a href="https://www.homewayre.com/blog/new-construction-or-existing-home-which-should-i-do/">new construction</a>. And you might even find some of them have the unique style features you love about some of these other traditional home designs.
23. The Custom Home with Your Unique Style
If you like some features of the Victorian as well as the Art Deco or the Mediterranean, you could find the perfect blend of all three by designing and building your own custom home in Easton, PA. New construction projects can be costly but also allow you to bring the styles and designs you want to your unique home. So start browsing available lots and land for sale with <a href="https://www.homewayre.com/property-search/results/#listtype_4/">Homeway Real Estate</a> to find your perfect corner of the Lehigh Valley for your dream home!
You may not have an idea right now about what kind of front porch you want or if you like ornate moldings. That’s ok! If all you really know is that you’re ready for a move to Easton, PA, you’re in luck. <a href="https://www.homewayre.com/">Homeway Real Estate</a> can help guide your efforts and identify all the different Easton area home styles to consider seeing firsthand. So start <a href="https://www.homewayre.com/property-search/results/">browsing our Easton property listings</a> today and let our real estate professionals introduce you to your Easton dream home!2021-11-17T10:23:00-07:002021-11-12T11:25:30-07:00Alex Lopeztag:homewayre.com,2012-09-20:7560You’ve Found a House for Sale in Bethlehem... Now What?<img src="https://assets.site-static.com/userfiles/2131/image/bethlehem.jpg" width="1920" height="1080" />
If you’ve spent any amount of time in Bethlehem, PA, you know there’s no shortage of beautiful houses. You may have even found a house for sale in Bethlehem that you want to buy. But now what?
To help you navigate the next steps, we’ve outlined a handy to-do list to consider. You’ve found your dream <a href="https://www.homewayre.com/blog/house-hunting-explained-do-you-really-need-that/">house for sale in Bethlehem</a>. Here’s how you go about making it yours.
Getting Your Financing in Order
Unless you have enough savings to buy a home outright, you’ll need to take a look at your finances and pursue a lender. Every lender is different, but most will require an <a href="https://www.creditkarma.com/advice/i/finances-ready-buy-house">analysis of your financial health</a>. So prepare the necessary documents, including tax returns, lists of assets, employment history, bank statements, or rental history.
Your credit history and current debt-to-income ratios will play a role in how much a lender might offer. The golden range for DTR is roughly 43 percent. Provide potential lenders the price range you’d like to secure, based on what you know about the house for sale in Bethlehem you have in mind, too.
Be prepared, as well, to get a down payment together. Generally, you’ll need to have 20 percent of the purchase price as a down payment. The more you can afford, the better. Most lending institutions will additionally require you to purchase PMI, protecting their interests if you’re putting less down upfront and depending on the type of loan you’re seeking to secure.
You don’t want to start pursuing a house for sale in Bethlehem without knowing your finances and borrowing power. Having a pre-approval in order will allow you to take these next few steps toward buying your dream home.
Working with a Professional Real Estate Agent
If the house you have in mind has a sign in the front yard, you’ll likely start the process by contacting the listing agent. If it’s a <a href="https://www.homewayre.com/blog/fsbo-vs-realtor-what-they-dont-tell-you/">For Sale By Owner</a>, you’ll have to go that route. In either scenario, it’s best you find a real estate professional to represent you directly. Going it alone could lead to hiccups, negotiation setbacks, and worse. You have an opportunity to buy your ideal house. Don’t go into the process without someone who knows the terrain and can represent your best interests.
Getting a Home Inspection
Before you invest a dime into what is probably the most expensive thing you’ll ever buy, you should consider hiring a home inspector. Sellers are required to be honest and transparent about the home’s defects. However, having a professional come in to review all the components of the house’s structure, utilities, and condition can shed light on potential repairs and maintenance. You’ll be responsible for paying for the inspection yourself, but it’s well worth the $350-$1,000 to have the peace of mind and knowledge before finalizing the purchase.
Making an Offer on a House for Sale in Bethlehem
If the house for sale in Bethlehem that you’re pursuing checks out this far, you’re ready to start thinking about making an offer. This is another instance during the home buying process in which <a href="https://www.homewayre.com/blog/13-signs-you-need-a-better-real-estate-agent/">having a real estate professional</a> in your corner will be a tremendous asset. Based on the findings of a home inspector, you might initiate an offer with repairs or replacements in mind. Your agent can extend the offer on your behalf and handle any negotiation in the first round. If the sellers reject your offer, another round of negotiations may need to take place. Or you could decide to walk away altogether.
If your offer is accepted, congratulations! You’ll want to prepare to write your first check, making an <a href="https://www.nerdwallet.com/article/mortgages/home-buying-checklist-steps-to-buying-house#9.-make-an-offer">earnest money deposit</a>. These funds will usually go into an escrow account, where you can use it as part of your cash to close. And you’re just another step closer to owning your dream house in Bethlehem!
Final Walkthroughs & Closing
Before finalizing the purchase of your home in Bethlehem, you’ll have an opportunity to do a final walkthrough. This is your chance to do one last check of everything and make sure the house is still in the same condition. You can also verify that any repairs or replacements were made in conjunction with any stipulations of your purchasing agreement.
On closing day, the ownership of the house will transfer officially to you. Prepare for lots of signing as funds are transferred between you, the lender, and the seller. There will be title fees associated with processing the new deed and documents.
We can’t stress it enough. Having a <a href="https://www.homewayre.com/">Homeway Real Estate</a> professional with you when you’re ready to buy a house is mission critical. So if you’ve found a house for sale in Bethlehem, or are thinking about trying to find one, let the team at <a href="https://www.homewayre.com/property-search/results/">Homeway Real Estate help</a>! You’ll have a local Lehigh Valley expert to guide you through every step of the process and ensure you walk away with the keys to the Bethlehem home of your dreams.2021-11-15T10:18:00-07:002021-11-12T11:22:38-07:00Alex Lopez