Q: I am searching for a single-family home for $120,000 somewhere near Bustleton Avenue so I can be near the bus to work. It can be a row home but I need it to have two kitchens – something like an in-law suite. I am having a hard time finding something to fill my needs. Do you have any suggestions?
A: No doubt you are having a hard time finding something. Either two kitchens or an in-law suite, especially in a row home in Northeast Philadelphia, are a rare find. I am not sure if a single-family* row home could even satisfy your needs. continue reading »
Q: I am supposed to make settlement on Friday for a house that may or may not have been flooded in the hurricane. My mortgage lender said we might need to have a mortgage inspection before settlement. My walk-through is scheduled right before settlement. Should I be worried that the bank won’t give me the money for the house if it got flooded? And will it cost me anything for the inspection?
A: Prior to Hurricane Irene’s arrival, mortgage lenders were notified by the Department of Housing and Urban Development and Fannie Mae that they may require an inspection of the property — before disbursement — to determine if there was any damage to the property. This would be done for your best interest. continue reading »
Q: I wanted to buy this house in Morrell Park that was “For Sale by Owner.” I was all ready to do it, but the guy said that I couldn’t have an agent or he would charge me $10,000 more for the house because he says he doesn’t want to pay an agent. My agent can’t do it for free, but said her commission is less than half of the extra the guy is charging me. So ultimately I’d be paying double just to have representation. Do you think this guy is trying to hide something by refusing my request to use my agent?
A: This “For Sale By Owner” seller is not exactly refusing your request to use a buyer’s agent, just making it more expensive than it has to be. Usually a person who is selling their home themselves is just trying to save money but it sounds like there’s more than meets the eye at play here.
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Q: I am making settlement on my first home in Wissinoming next week and I am worried about a few things. What if the sellers didn’t do the repairs we asked them to do? And what if they did them wrong? Does that mean we won’t settle?
A: If the sellers agreed to repairs in writing, they are responsible for doing those repairs in a workmanship-like manner prior to settlement. Your agent should ask for receipts of the work in advance of settlement to make sure the work was done. You will also be given an opportunity before settlement to inspect the home and make sure repairs were done. continue reading »
Q: Finding the right home in the Far Northeast has been very nerve wracking. I started looking in March and have found at least three homes I wanted to buy. But each time I wanted to make an offer on one, it was already under contract. My agent says I need to be quicker making decisions. Exactly how long after you see a home do you have to make the offer?
A: Nobody knows exactly. It’s a mystery how much time you have from the moment you walk out of a house for sale to the moment it receives an offer from someone else. You could see a house on Wednesday morning that could be sold on Wednesday night. Or you could see a house in November that doesn’t sell until June. continue reading »
Q: Is there a way to figure out how much to offer on this home in Holme Circle? It is a really nice four-bedroom twin for sale for $199,900 and has been on the market for more than two months. Do you think the seller would take an offer for $150,000? I am approved to $180,000.
A: There is no set formula for making an offer on a property. The only way to find out if the seller would take an offer that low is to make the offer in writing. But no matter how long it’s been on the market — and these days two months isn’t very long — you’re talking about potentially offending a seller who might be agreeable to $180,000. And an offended seller may not want to participate in negotiations. continue reading »
Q: I am so excited! I make settlement on my first home in Holme Circle on Friday and I don’t know how to get the bills in my name. I want to make sure I have all my bases covered, so I want to call the utility companies asap. Who do I need to call? And will the seller’s bills already be paid off?
A: Congratulations! Owning your first home is very exciting. One thing you shouldn’t have to worry about is the seller’s utility pay-offs. The title company you use to make settlement will make sure the seller’s utility bills are paid up. continue reading »
Q: My home in Somerton has been for sale for six months. I did get one offer in January that I would have taken except I had not found a new home to buy yet, so my agent told me not to sign it. But it has been so long with no offers. Did I do the wrong thing by not taking that one?
A: Unfortunately for sellers we are still experiencing a “buyers market” in Northeast Philadelphia. That means there are more homes for sale than qualified buyers. For the past few years there has been a shortage of homebuyers. Presently there is an excess of homes on the market, not a huge excess, but an excess just the same. If you’ve got a buyer for your home in this market, why would you pass up that opportunity?
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Q: I found a house for a really good price in Parkwood so I put a full price offer in but my agent told me I didn’t get it. I couldn’t believe it when he told me the seller took another offer for less money because it was a cash offer. Why would someone take cash over a mortgage? What’s the difference? Money is money. They walk away with a check either way. It’s all the same!
A: Money is money whether it comes from a cash buyer or a mortgage lender. (That is to say, if the seller doesn’t owe all of the proceeds to their own mortgage company). And many times sellers will go with the higher offer. Sometimes; however, there may be other factors influencing the seller’s decision.
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Q: My 29-year old daughter is renting a house around the corner from me in East Mayfair for $850 a month. She has a landlord who does nothing for her, and she wants to buy a home but I’ve told her she needs to save 20 percent to put down on a house. Some mortgage broker told her she only needs 5 percent. Is this true?
A: Depending on her credit and the mortgage product for which she gets approved, your daughter may only need as little as 3.5 percent of the purchase price of a home. And her mortgage could conceivably be lower than what she’s paying in rent. I’ve recently sold homes with lower monthly mortgage payments than your daughter’s rent in East Mayfair.
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