1. Do you have enough for a down payment and to cover closing costs?  To adequately determine the answer to that question you would need to first speak with a mortgage lender.  This is often a free consultation, and I can certainly help you connect with someone.
2. How committed are you to the geographic area you are currently living in? Is your job stable and something you enjoy?  Do you like the school district?  If you feel your situation is more temporary certainly renting is best.
3. Am I able to set money aside to complete the necessary maintenance and repair of home ownership?
4. Are you willing to do the work of maintenance on the home? Weekend warrior duty isn't necessarily for everyone.
5. What is most cost effective? This question takes more careful thought to answer.  Let's start by looking at the options:

For an example, let's consider (Keeping with the Shakespeare theme) Two houses alike in dignity in fair Eastern York County where we lay our scene.  Both are row homes, similar in size and with 3 bedrooms, one is available for rent, the other is a property for sale.

The home for rent is priced at $1600.00/mo.

The home with principal, interest, taxes, mortgage insurance and homeowners' insurance is $1,862.00/mo.  This is assuming a 5% down conventional loan.

Let's assume you are going to be in the home for 5 years.

Rent increase in York last year was around 3% so that would mean:

2026 rent is $1648.00/mo

2027 rent is $1698.00/mo

2028 rent is $1749.00/mo

2029 rent is $1801.00/mo

All these numbers are less than the $1862.00/mo payment if you purchase the home for sale; however, over that time you will have built a little more than $25,000.00 in equity in the home. 

From 2019-2024 the median home price in York County rose about 33%.  Should that trend hold the home you purchased for $215,000 could increase to $285,000, by 2030.  Should you sell then, you might be able to walk away with a check for more than $90,000.00 if we factor in rate increases for taxes and insurance.

If you can pay the initial price now.  You are able to invest in yourself for the future. 

I understand it is not always possible to make the payments.  Every payment to a landlord is an expense you will not recover; but each payment on your principal is an investment in yourself.

As we look back over the last 3 years, we are all tempted to let out a YIKES!!

And there is absolutely no denying that home buyers who purchased a home in the early months of 2022 while the rates were as low as 2.7% were able to get a great bargain.  The questions remain:  Was this low rate normal?  Was it something we can expect to see again?

To answer that let's take a very brief look at mortgage rates over the last 20 years.

In January of 2005 we saw rates around 5.7%.  by August of 2007 they had reached numbers close to 6.9%. 

With the 2008 housing crash and recession, the Fed stepped in and bought up mortgage bonds to lower rates.  This helped and by 2009 rates were down below 5.5% once again.  They continued a steady decrease through the 2010's, hovering in the high 4% range.

Then 2020 and Covid hit.  The housing market came to a short, but rather grinding halt, as did much of our economy.  The Fed stepped in again, and using much the same rational and tactics of 2008 lowered the rates all the way down to the 2.7% we saw in late 2021 early 2022.  Since then, they have continued their slow but steady climb upward.

For buyers today it is very hard to look at this new 7.1%+ number and feel anything but frustration, especially if people they know got in on that 2.75% from just a few short years ago.

Now many of these present buyers, maybe yourself included, are waiting for the rates to fall again. But here's the bad news, you may be waiting for something that just will not happen.  Those rates under 3% were very artificially created and were not going to last.  That's bad news. 

Yet, when put in perspective the last 20 years of mortgage rates we see approximately a 3% increase.  Milk has increased about 20%, while a gallon of gas has gone up more than 50%.  Had we not had the pandemic of 2020 the mortgage rate we see today is probably near where rates would have been, given their history.  While that may be little consolation to those looking to buy now, it's not as abnormal a situation as some might want you to think.  In fact, it's probably the norm.

Maybe you are still going to wait and hope they come back down.  You certainly can take your chances, but consider this:

Housing prices in the area have increased around 37% since 2020, and more than 4% in the last year.

Let's take a home in Wrightsville, where I live, the home is currently on the market for $215,000. At the current interest rate, principal and interest together (not including PMI, INS, TXS), assuming a 5% down conventional loan you would pay:

$1,376.07

Now, let's say you wait a year for the rates to come down.  At around 4.5% increase in list price, the price of that home could now be listed at $225,000.  To get to a principal and interest payment of $1,375.74 you need the mortgage rate to come down to 6.675% at least. 

Is that possible?  Maybe.   But while we are not certain what rates will do, what we can say is certain is the continued increase in the listing price of homes.

There may or may not be a better rate. 

Well, this has all been bad news.

But here is the good news.

The good news is that if you buy that home now at the $215,000, and rates do fall to 6.675% you can lower your monthly principal and interest rate payment by refinancing to:

 $1,314.59

The person who waited until the rate went down to 6.675% while the price went up to $225,000 is still paying:

$1,375.74

If you act before prices continue to climb you may get a lower base price, and through refinancing you may be able to lower your rate.

1. While rates are higher, that often leads to less competition when submitting offers.  A higher mortgage rate has some buyers choosing to wait right now.  Less competition gives you a better chance of having the terms of your offer accepted.  This also means that you have a better chance of getting things such as inspections agreed to, or maybe the closing timeframe you want.
2. Prices might be better than they will be when rates fall. In May of 2022 in the York/Lancaster area, sellers were getting about 105% of their original asking price.  Some were even getting $30,000 or more above the listed price.  In November of 2024 that number was down to about 101% still high, due to low inventory, but still an improvement over when rates were lower. 
3. You can always refinance. If you buy now you can get a home right around the asking price, and there are even several examples of homes going for under that asking price.  Sure, your interest rate is higher on the home, but more buyers and lower interest rates usually mean higher prices.

Let's assume a home is listed right now for $325,000, and your interest rate is 7.00%. 

With principal and interest you would pay around $1,946.00/mo.

But let's assume you wait until interest rates drop to 6.00%, (assuming they do) but now because of competition you have to offer $340,000 in a bidding contest for that same property, and maybe remove the inspection contingencies, as well as eliminate the leverage to negotiate any repairs if needed.

With principal and interest you would pay around $1,834.00/mo.  Wait a minute, that's still better than $1,946.00.  Right? True.

However, if after 18 months of paying the mortgage on the $325,000 offer at 7.00% let's assume that you can refinance the remaining balance at the now lower 6.00%, now your monthly payment is going to be around $1,575.00 for the principal and interest.

The numbers are estimated, but you can see the advantage of buying at the lower price even with the higher interest rate, and then refinancing.

There is an old adage in real estate, "marry the house, date the rate."

I get it.  It's terrible relationship advice, but when it comes to mortgages it just might work for you.

The place you must start is speaking with a trusted (and preferably local) lender to get pre-approved for a mortgage.

Why is this important?

Because getting pre-approved will tell you the max amount you can pay for a home while keeping within your budget.  It will also provide you with an estimate of your interest rate (though this cannot be locked until your offer is accepted), your estimated closing costs, and your approximate monthly payments.  This will greatly help you in setting your goals and planning for the new home.  It will also help your agent to focus on search parameters when you begin the home search process.

Once you are pre-approved you will receive a letter stating the amount that you are pre-approved

When you write an offer on your home the sellers will want to see a copy of your pre-approval letter as evidence you are able to afford your offer and the deal will close.

To get started, call a local lender and have the following items available:

• Tax returns for the last 2 years.
• SS Number (To check credit score). The lender will run a search for you.
• Bank Statements (Both savings and Checking)
• Stocks, Bonds, Mutual Funds
• At least 2 months of pay stubs
• Any child support you receive, or owe (If applicable)
• Approximate monthly expenses (Credit card bills, car payments etc.)
• Any gift money you may be receiving toward a down payment from family.

That's it!  If you would like the names of some local lenders in the York/Lancaster area please reach out to me.

In real estate market value and appraisal are not synonyms.  There is an important difference.

Let's briefly look at what the two things are:

Market Value:  Market value is the highest amount that a buyer is willing to pay for a home given the current market conditions.  The market value of a home is ultimately set by buyers, and what they are willing to pay.  A real estate agent will use the value of active, pending*, closed homes to help you determine where your highest market value might be.

Appraisal:  An appraisal value is determined by a person who is state licensed appraiser.  Sometimes this appraiser is also a real estate agent, but not always.  The appraisers are hired by the banks to ensure that the mortgage loan they are giving a buyer, to ensure the bank is not loaning more than the home is worth.  The buyer pays for this appraisal.

The difference between these two things is important, because they are not necessarily the same price.  Typically, an appraisal value is higher than the market value.

However, in the booming sellers' market of the last 12-18 months sometimes buyers are willing to pay more (market value) than a home appraises for (appraisal value) to outbid other buyers.  In some markets just because the appraiser says the home is worth a certain value (appraisal value) does not mean that buyers will be willing to make an offer as high as that (market value).

I have had buyers ask me the question; "Why does the bank care?  If I am willing to pay more than the home is appraised for and have the money to do so isn't that my business?"

Well, the bank is looking to protect itself against loosing money, and it is planning for a rainy-day scenario if the new owner goes into default, or the market falls and the house goes into foreclosure. Therefore, the bank will not give more than the appraisal value.

So, when a real estate agent provides you with a Comparative Market Analysis, they are helping you find the market value of your home.  An appraiser is setting the highest value a bank should provide a loan for to a buyer.

*Pending* A pending home is a home that has an accepted, fully signed contract on the home, and is now in the process of going to closing/settlement.  It is no longer available on the market.

Let's take a little different approach for a few moments though; let me ask a few questions:

1.) Why do you want/need to buy right now?  What is the goal?

Is your family expanding?  Are you tired of renting? Are you looking to downsize to one floor living?  Do you need or want to be closer to work?  

Just for a moment forget about the interest rates or market value of home prices, and think about why you want to move into a new home.

Once the market begins to settle down to a more normal, and some may say reasonable pace.  FHA buyers will, more than likely, will begin to reenter the market.  If we go back five years to the late summer and early autumn of 2017, 26% of homes in York county sold using an FHA Loan.  Over the last year or two that number decreased to around 12-13% of York County sold homes using an FHA Loan.  However, many believe that this trend will change and FHA will again become a popular form of financing.  Many sellers hear FHA and begin to think of stringet inspections, laborious repairs, and a prolonged closing date.  These can all be true, but before you begin quoting the palace guard from the Emerald City, in the Wixard of Oz, and adimately state, "NOT NO WAY, NOT NO HOW," when presented with an FHA Loan, let's take a look at the details of the loan.

FHA loans are insured by the Federal Housing Administration, they require a credit score of 640, or depending on the lender perhaps a little lower.  (Some real estate blogs will say 580; however, I am not aware of any lender in York county that will go that low.)  The buyer is required to pay a 3.5% down payment. FHA loans will typically require 45 days to go to closing. The FHA Loan allows a buyer to request from the seller up to 6% of the sale price of the home to assist the buyer in covering their closing costs and downpayment. 

So if you sell your home for $250,000 accepting an FHA loan the buyer can request up to $15,000 from your proceeds to help cover their costs.

$250,000 * 0.06 = $15,000

This is the dreaded "Seller's Assistance," that many sellers, understandably, want to avoid with these loans.

Here is the good news.  At the moment, we are still in a market in which, if I am working with a buyer with an FHA loan, I strongly advise them to not ask for the full amount, unless they absolutely need it, and I think most agents would do the same.

The second portion of the FHA loan that concerns sellers is the appraisal and repair requirements that are attached to these loans.  FHA requires a move in ready home, with all electrical, plumbing, heating, painting, and roofing issues remedied before the loan can receive final approval.  One of the biggest issues is that there can be no signs of cracking, chipping, or peeling paint.

Many sellers do not want to make these repairs.  I can appreciate that; however, let's consider this for just a moment.  If we were to put in your listing that you will only accept conventional loans or cash, as we move toward a more normalized market, where approximately 25% of buyers are using the FHA Loan, we have just eliminated one in four buyers from considering your home.  The more buyers seeing your home the better it is for you.  More buyers mean more competition, maybe more offers, and perhaps a price over the original asking number.

I would suggest we take a look at your home, and see what you might need to do inorder for an FHA loan to be accepted.  Then you must decide what amount is worth it to pay for any repairs.  Using our $250,000 sales price example, what if it costs you 1% of that to do the necessary repairs.  That might be a small price to pay for bringing more buyers to showings and an open house, and the potential of more offers on the table.

Also, consider that if it is something serious, flashing or fascia damaged or missing, loose shingles, water heater not working properly, serious plumbing or electrical issues, furnace not heating properly, A buyer with a conventional loan may be asking for those repairs, or a reduction in price. 

Certainly there is a place for the realization that there is just too much to do, and we should forgo the FHA considerations, but with more buyers entering the market with this financing it is wise for a seller to consider accepting this type of loan.

In August-September of 2017, 1,205 homes closed in York county.  785 of those homes (65%) stated they would accept FHA financing. 318 of those homes (26%) did closing with FHA financing.

In August-September of 2022, 1,190 homes closed in York county. 679 of those homes (57%) stated they would accept FHA financing. 141 of those homes (12%) did close using FHA financing.

In June-July of 2022, 1,275 homes closed in York county. 752 of those homes (59%) stated they would accept FHA financing. 175 of those homes (13%) did close using FHA financing.

While those sellers stating in their listing that they will consider FHA financing holds somewhat steady, the sellers that are actually agreeing to accept an offer with this financing are going down.  So what is a buyer to do?

Well, first lets look at a few details of FHA. FHA financing requires a credit score of approximately 640 or better, the required down payment is 3.5%.  These are are not of huge concen to a seller, provided you can pay the down payment, and you have the appropriate credit score, the seller is willing to entertain your offer.

However, the proplem for many sellers lies in two other aspects of the FHA loan. First, a buyer with FHA financing can request that the seller contribute up to 6% of the sale price to assist the the buyer in paying closing costs this is called "Seller Assistance."  This means that if you have a pre-approval of $180,000 you can ask that the seller contribute up to $10,800 of their gross proceeds to help cover your closing costs. It goes without saying that many sellers are hesitant to do this.  The second issue that many FHA buyers will run into is that FHA appraisals are much more strict than conventional loans. Leaking pipes, missing shingles or flashing, signs of water damage in the basement, lack of GCFI outlets in the bathroom or kitchen, switches and outlets that do not work, problems with the water heater, furnace, and air conditioning, all of which may be overlooked by a conventional loan appraisal will more than likely be flagged and the repairs required to be completed prior to the final approval of the loan with an FHA appraisal.  Not only does this cost the seller money it may delay the closing date.  All things considered, if the seller can choose between an FHA loan, and a conventional.  Conventional is always the better way to go from their perspective.

Now, before you throw up your hands, and say, "I cannot get an FHA offer accepted, so why try," there are a few things you can do.

1.) When you submit an offer on a home you will put down an Earnest Money Deposit.  This is a good faith deposit typically due within five days of both the buyer and the seller signing the contract.  This good faith payment will be applied to your down payment/closing costs at the closing of the property. Typically, 1% of the sale price is a minimum amount, so using our $180,000 example that would be $1,800.  It always looks good to a seller if you put down more.  2%, 3% or even more if you can do it will go along way toward helping to convince a seller that they should accept your offer.

2.) Check with you lender to see if you are able to pay more than 3.5% in a down payment.  The larger the down payment the more secure your loan will be, thus making it a better chance that you will qualify for the loan and close on the home. Even 4%, 4.5%, or 5% may help.  Ask your lender if it is possible.

3.)  Avoid the temptation of requesting the Seller's Assistance of 6% closing cost help.  If you need to ask for it try to make it as small as possible, perhaps 1% or 2% at most.

4.)  Consider offering just a little over the asking price, even by $1000, or $1500. This is a little extra proceeds to make up for required repairs.  For all real estate transactions in Pennsylvania, a 2% transfer tax is paid 1% is paid by the buyer, and 1% is paid by the seller.  Consider offering to pay the seller's transfer tax for them in exchange for any required repairs.

5.)  Pay down any debts that you have as much as possible.  The more you can increase your credit score above the 640 minimum the more secure you become as a borrower.

It's an uphill battle for FHA buyers, but it is not impossible. Don't give up.

Essentially, a mortgage rate is the amount percentage rate the lender is charging you on a monthly basis to borrow the money to buy your home.  Mortgage rates are determined by several different factors; those that are out of your control (inflation, stock market, federal reserve, etc..), and the factors that are in your control.  It is the factors that are in your control that we want to look at.

1.) credit score: your credit score will have a significant impact on the mortgage rate you will be able to get from a lender.  Raising your credit score is one of the surest ways to lower your mortgage rate when you are buying a home.

2.) Loan to value: This is a way of saying the amount of downpayment you will make on your new home when you are at the settlement.  A downpayment is the amount of money you will pay at the beginning of the loan to try to lower the amount you are borrowing.  So for an example, let's pretend you are buying a home that costs $200,000, and you have a loan to value ratio of 95%.  This means that 95% of the cost of the home is going to be borrowed from the lender.  The day of settlement on your home you will pay a 5% or $10,000 down payment.  The lower your loan to value ratio is, and the more your down payment, the lower your mortgage rate will go.  Home buyers with a large downpayment are seen as less risky to lenders; therefore, will usually be given a lower rate. Home buyers with a smaller downpayment are seen as more risky to lenders; therefore, will usually be given a higher rate.

There is one more part of this that can be a little difficult to understand.  When you go to a lender and you receive a pre-approval letter there will probably be the letters APR with a percentage beside it.  APR stands for Annual Percentage Rate.  It reflects the entire percentage rate you will pay for your mortgage. It will include your mortgage rate, lender fees (not paid at settlement), and points* it is usually higher than just the mortgage rate itself, and is a much more accurate picture of the rate you will pay.

*POINTS-some lenders will decrease your rate, or "give points" if you pay certain lender fees upfront, thus bringing down your APR. If the lender allows you to bundle those fees or costs into the loan your APR will go up.

There are a few things to bear in mind though if your going to look for a mobile home.

First, the famous Dave Ramsey line, "Cash is King," could not possibly be more fitting in the case of mobile homes.  Many mortgage lenders including a lot of banks do not want to take these on.  The reason for this is because they are not on a fixed foundation, which makes them subject to property damage much easier, as well as being moved which can be a liability.  In addition, they are technically motor vehicles and not real estate.  Finally, prior to 1976 there were no standard specs for modular homes.  So that means no quality standards for how they were made.  It is nearly impossible to find a lender that will finance a mobile home prior to 1976.  One other consideration here is that even if you are able to locate a lender many times the interest rate is much higher, sometimes more than double other mortgage rates.

Second, if you are going to be in a mobile home park you will need to pay a monthly ground rent for the space that your mobile home is on.  The mobile park owners divide up the land in the park, and then charge a ground rent or lot rent fee for the lot your home is on. Lot rent fee's can vary from park to park; however in York county the range from around $250-$500 a month on average.  The more services the park provides for you (water, sewer, snow removal, etc...) the more you will pay. 

The final thing you need to bear in mind is that the parks often run like an HOA/planned unit development you must submit an application for approval, and there can often be strict rules governing the parks.  You will typically have 5-7 days from the time your offer is accepted to review the park rules and have your own application accepted.  Some parks will limit what you can do with the land.  For example, often no swimming pools are allowed, but gardening, landscaping and children's play-sets are often fine.

I understand the frustration, and I understand the logic.  If you are approved for a loan at $250,000, and the home cost $225,000 then you can clearly make the down payment and monthly payments at $250,000.  The banks getting more money, so why do they care?

The bank cares because they are always looking ahead and assuming the worst.  If an appraiser says the home is worth $225,000, and a buyer has taken out a mortgage more than the home is worth it becomes an unsafe investment for the bank.  Banks don't like loosing money down the road, so if the housing market declines, and a buyer defaults they have lost money on there investment. 

It is important to understand that an appraisal is not done for the buyer.  An appraisal is done for the bank/mortgage lender to ensure that their investment is a good one.  So the appraiser does not work for the buyer, they are hired by the bank. Now, I can hear buyer's asking, "Then why are we paying for it?" The bank's logic; they would not need to do the appraisal if you were not buying the home.

So even if you are willing to offer above the asking price, if an appraiser tells the bank it is not worth that much.  The bank is going to hesitate to give you that loan. 

We have to consider this when making an offer, but there are a few things we can do.  However, in order to do it you must have cash on hand.

1.  You could offer to go just a little over the asking price, but then offer to pay for some of the seller's transfer tax, and even commission at closing. Obviously, this will increase your cost out of pocket at closing but will increase the value of your offer, and makes a property not appraising not as likely.

2. Appraisal Gap Coverage:  You could offer that if a the home doesn't appraise at your offer you will make up some, (or even all) of the difference.  So for example:  The home is $225,000, you have offered $240,000.  We could write in your offer that you will cover some of the gap with cash at closing.  Let's say you offer to give $5,000 of gap coverage at closing, and the home appraises at $232,000.  You are telling the seller you will still pay $237,000.  This $5,000 cannot be added to the loan.  You must pay with cash at closing.

3.  Put down a large down payment.  30%, 40%, or more, SOME banks, and I stress SOME banks, will then say,  "If you are willing to put that much "skin in the game,"  we will forgo the appraisal."

All of these carry some risk/reward, but they are ways of overcoming the appraisal if you are offering over the asking price.

This is a complicated answer.  First, removing inspections has a level of risk.  The question becomes: how much risk are you willing to take?  I can never recommend to a buyer that they waive the right to these inspections. (I just don't think it is a good idea with this large of an investment.) However, there are some times that a calculated risk is not a bad thing.  If you, or someone you know is a good DIY person it could work.

Second, sellers are required by law to reveal any KNOWN defect in the property.  To assist this process sellers will complete a Seller's Property Disclosure.  In this disclosure we can find out details about some big ticket items.  Has there ever been water in the basement?  When was the last time the roof was replaced?  When was the furnace and the air conditioning unit installed, and last serviced?  When was water-heater installed?  Are there any known plumbing or electrical problems.  This can give us some idea as to what the condition of the property is in.  We can ask questions to clarify things and try to determine what you are walking into.  For some buyers this is enough.  However, you need to remember that the seller is revealing known defects.  They may not know everything that could be wrong.  If you feel comfortable with this information, and want to give yourself a leg-up on other buyers you can forgo inspections.

Finally, let's say that you are not a gambler, and you want to have the home inspected. What can we do?  Well, there are some ways we can get creative.  Maybe, offer to help the seller pay some of their closing cost in exchange for the inspections.  Maybe we can write into the contract that we won't "knit-pick," (although, we need to find a different word.)  Here's an example:

Buyer will only request repairs on the roof, furnace or A/C unit.

Or:

Buyer will only request repairs up to $1,000.00.

This puts a cap on what the seller would pay.  It might help to put their mind at ease that you are not going to ask for a lot of repairs, but want to know what you are getting into.

One final thought:  this can also be a case by case decision.  If a home is older, often seller's understand inspections will be requested.  If the home you are buying is new (5-10 years)  then maybe it is a okay to forgo the inspections.

Hopefully, this helps with making decisions on whether or not to waive the right to inspections.  it is a risk to keep inspections in the deal (could be beaten by another offer that left them out), and it is a risk to remove them ( could have a serious repair problem).  Ultimately, it is for you to choose.

1.  The year was 1976....  In 1976 the government standards form mobile homes changed, and the criteria used for building them became more strict.  This led to a higher quality of mobile home builds.  This date becomes very important for many lenders.  If your mobile manufactured home is prior to 1976, it may need to be a cash sale.  There are a few mortgage lenders that will take on this type of loan; however, they are few and far between, and many require a larger down payment potentially over 10%.  This means that there are only certain conventional loans that will apply.  VA, USDA, FHA buyers are out of luck on these homes.

2. Retired Title:  This is not a title that has moved to Florida, and gets to the local diner by 3:30 in the afternoon for the early bird specials.  (I'm Kidding!!)  When an owner has full ownership of a mobile home, and the real property (land) that the mobile home is on.  The title can be retired.  You can take the title to the DMV, with proof that you have paid in full for the home and land, and have it switched to a type of deed.  In the eyes of many mortgage lender this can now be seen as another type of real property, and they will issue a mortgage.  Many times if you can do this you can accept at least most conventional loans.  It probably cost around $50.00 to retire a title.  If you have lost the title don't sweat it.  Getting the serial number from the placard under the kitchen sink and taking it with you to the DMV will allow them to look it up and issue you a new title.  Of course ther is probably an additional fee now as well.

3.  Firm Foundation:  The final thing to consider is how the home is affixed to the foundation.  Even if the two requirements above are met, if the the home is on cinder block and tied down with hurricane straps, more than likely a conventional mortgage will not fly.  (Incidentally, we just need to forget about a govenment loan in this case.  Upon hearing the words "hurricane straps" and FHA appraiser will not be able to get in there car and drive off quickly enough.)  It will also help if the hitch has been removed.  This will be clear indication to any lender that the mobile home is no longer mobile.  The best case scenario is a home on a fixed concrete foundation.

In many cases, it is difficult to get all three of these.  But we will open you up to more financing possibilities if we can at least meet two of the three.

1.  It is really important to understand that even though a Realtor can help you with the sale of your mobile home, a mobile home is personal property not real estate property.  How does this affect you?  First, of all it means that it is very difficult to find a bank or lender that will give a buyer a mortgage on a mobile home.  We are going to be primarily looking for cash buyers.  There are a handful of places that are able to give buyers a loan on a mobile home, but they are very few and far between.  CASH IS ALWAYS BEST, in any transaction; however, this is especially true with a mobile home.

2.  We will need to have the original title for your mobile home prior to listing.  I will need a copy of this for our records.  To transfer the home a buyer will need the original title.  I point this out because sometimes people misplace things.  I have done it.  We all have.  No judgment here, but we still need to fix the problem.  So how do you do it?  On each mobile home is a HUD plate with the serial number of the home.  This is usually located in one of two places: outside, near the front door, or under the kitchen sink.  When you find it copy the title number, serial number, make and model of the mobile home, and take it to the DMV.  They should be able to issue you a new title, and if memory serves me correctly, it will cost less than $50.00.

3.  This is very simple, but you will need to check with you park management as soon as you decide to sell.  Because you do not own the land many park owners/managers want to be kept in the loop.  Some may even need a two week or month notice prior to listing.  You just want to know this up front, so we know our timeline.  Also you will want a copy of the park rules & regulations, because we will need to provide them to a buyer, and the sooner you can get them to the buyer, the less hassle there will be for you.

That is pretty much it, but if you or someone you know is thinking of selling in a mobile home park in the near future these are important things to keep in mind.

1. Commission:  I know, obvious, right? But it will show up in your final cost.  This is 6% of the final sales price, and a broker fee.  Usually between $200-$300 depending on the broker (Berkshire Hathaway Homesale is $245.00 for sellers.).  Even though this is one flat fee.  On the closing disclosure it will often already be separated into the amount that goes to each real estate broker involved.
2. Sellers Assistance: With many loans buyers are able to request a certain percentage of the sales price, capping at 6%, in assistance from the seller to put toward their closing cost.  A conventional loan that puts less than 20% down can request up to 3%, if a buyer puts down 20% on a conventional loan they can request up to 6% in sellers assistance. Using an FHA/USDA loan a buyer can request up to 6%, and with VA they can request 4%.  If you choose to give the buyer seller''s assistance this will be on  the Closing Disclosure as part of your closing costs.  This is where it can sometimes get tricky, because this will often show up as a credit; however, you need to remember that the Closing Disclosure is written from the buyer's perspective, so it is a credit to them a debit to you.
3. Property Taxes: Depending on the time of year we close in these may or may not be paid in full.  Either way they will be prorated.  You the seller will pay for any taxes up to and including the day of settlement. The buyer will begin paying the next day.
4. Transfer Tax:  Yes, the Commonwealth of Pennsylvania will take their cut.  In this case it is 1% of the sales price that you the seller will owe in transfer tax.
5. Deed Preparation, Notary, and Tax Certifications:  In Pennsylvania the seller will pay for deed preparation which is usually around $150.00, and a Notary fee which usually will be $50.00, tax certification will be between $50.00-$75.00.  There may also be a wire transfer fee of $20.00-$25.00 depending on the settlement company.
6. Mortgage Payouts/Liens:  Per PA Real Estate Contracts, properties must be transferred clear of liens.  If there are any liens against your property you will need to pay these off at closing. The settlement company will order a payout statement from your lender of the total amount of money you will need to pay off your mortgage.  With back interest, and things in escrow it is a good idea to take the balance of the last mortgage bill you paid + 1 months mortgage + $500.00, and that is a solid estimate of what you mortgage payout will be.

So there you have it.  These are the common things that a seller will pay at closing.  Of course every situation is different, so there may be a fe extras here and there, but for the most part this is what you will be looking at when you come to the settlement table.

We will take a look at homes that are similar to your home that have sold in the last 6 months.  This is referred to as comparables (though that is not really a word).  We will consider active and pending, but focus mostly on the closed properties, because that is what the appraisers are going to use to determine their value.  So, what do we mean by comparables and what are the best ones to look for?

First, we need to consider location.  Primarily we are looking at the market in the school district that you live in, if we can narrow this down to your township even better, and if we can get down to your neighborhood and block to find comparables, that's even better.  The BEST comparables come from the homes closest to your own.

Second, style.  We need to find homes that are the same or similar in build to your own.  Do you own a rancher, then we are looking for other ranchers. A colonial then colonial, and so on.  Now, what if we can't find another one that is your style? (In a market where there are few listings this is a possibility.) In this case we are going to go to the next best thing, if you own a spit foyer for example, some other bi-level homes or a rancher with basement might be an adequate substitute.

Third, square footage.  We are especially looking for homes that have a similar above grade sq/ft amount to your own.  Above grade square footage is anything that is finished square footage and is at or above ground level.  Finished basements are good, but they are not weighted as much as finished above grade sq/ft. Typically, I'm looking for something within 250sq/ft of your own.

Number of bedrooms and bathrooms.  We are looking not only for homes that have a similar amount of square footage, but homes that have used the square footage in a similar way.  

Kitchen and bathroom updates:  While updated kitchens are not necessary.  They can be very appealing to buyers, and an updated modern kitchen will certainly add value.

Garage space:  Parking can be a huge consideration for buyers, the amount of garage parking spaces can add value to your home.

Lot size:  The amount of acres you have is certainly something you consider; however, this is something that often will only come into play if there is a significant difference in the size of the lot.  There really isn't that terribly much difference in 0.33 acres, and 0.50 acres when it comes to value.

Intangible upgrades:  Did you put a stone patio in the backyard, build a large composite deck,  or put in a detached workshop or garage?  Install central air, or build a stone fireplace?  That will certainly give you more value.  But one note, sometimes pools don't work this way.  Pools can be kind of like the old saying with beauty, "It's in the eye of the beholder."  One buyer might love the idea of a pool while another may not be able to get back in their car quickly enough.  For the most part though, a well landscaped and well maintained inground pool area will give you extra value.  Above ground pools will not.

These are the primary things I am looking for when I find comparable to your home, and those comparables will then guide us to a price.

This is an understandable question.  Your home is your most valuable asset, and you want to get the best price for it.  

So how do I as a real estate agent come up with a price for your home?

First, it is important to understand that real estate agents do not set a price.  Rather, I study what the market is doing, and tell you using as many facts as I can, where I believe your home is in the current market.  The two things that determine your homes price are, first of all, what will the appraisal property of the home be.  A licensed appraiser, hired by the buyers lender, will determine for the lender if the value of your home can back the mortgage amount the buyers is applying for to purchase the home.   The second thing that is considered is what buyers are wiling to pay for the property.  I know this second one seems obvious it's basic high school economics supply and demand, but it is something that a lot of sellers do not consider.  If we can justify the price through looking at past appraisal that does not necessarily mean that is the price a buyer will be willing to pay.  (Though, in a seller's market, as we are currently in during the spring/summer of 2021, they probably will.)

Let's take a look at these two things in a little more depth.  

Appraisal:  I recently heard it said that seller's are constantly looking out the windshield of a car, while the appraisers are constantly checking the rear view mirror.  This is a near perfect analogy of what an appraiser does when determining a value.  Appraiser will look at what has sold in the past 6 months, not what is currently listed, and not what is currently pending.  The appraiser's only interest is properties that have been signed, sealed, and delivered.  Typically, they will go back 6 months and they are looking for homes that are in the same school district, same township/neighborhood, same style (colonial, rancher, cape cod, etc...) same amount of square footage, and similar bedrooms and bathrooms, condition and upgrades are considered, as well as acreage.  All of that is important for us to remember as we look for the price for your home.  The most important thing to remember is the appraiser has the final say on value, and their eyes' are always looking in the review mirror.

Buyers:  As the appraiser has the final say on value, the buyer has the final say on price.  What are they willing to pay?  In a seller's market, like the one we are currently in, often, the buyer will pay a lot, but even if they are willing to go above the appraisal value their loan may not allow them.  So, when we price your home we still need to follow the closed homes in the area as a guide.  Unfortunately, the reverse of this is also true, just because we see other homes in the area that have appraised at a certain value, doesn't mean that buyers will pay that price for your home.  So when we set a price, we need to monitor our showings, and any offers you receive.  If we are not generating a lot of interest we may need to bring the price down a little bit.  So the interest generated in your property will also be a factor.  Sometimes, unfortunately, you have everything else, but may not be in the location buyers are looking for, or their may be another variable maybe a sloping yard, or lack of ability to connect to public water and sewer, etc...

Those are the two broad factors in pricing a home. In the next post I will look at the details we will need to consider when pricing your home.

The quote above is from a mentor I meet with to talk about business planning and real estate.  It was one of the things that really stood out to me in our recent conversation.  Our current real estate market is not very buyer friendly at the moment.  But, you can still find the house you want with some diligent work up front.  Part of this upfront work is understanding your needs and goals as a home buyer.  What are you looking for?  Why are those things important?  What are your goals?  

I understand that this may seem like a rather tedious process.  However, the more I know about what it is you are looking for the faster we can get you to that house that you are looking for.  In a hot seller market where every moment counts for you as a buyer knowing exactly what you are looking for will help us get to that home quickly, and make it possible to put that offer on the table as well.  

At our first meeting we will go through the Consumer Notice.  Then we will have a conversation about your needs and goals.  I want to know as much as possible about you and your home search so I will ask a lot of questions, and then let you do much of the talking.  A few examples of questions that help you find a home.

• Are you a first-time home buyer, or is this a second or third purchase?
• Do you have a home that you need to sell in order to buy a new home?
• What do you do for a living? Who do you work for?
• Are you married? Do you have children?
• What do you do for hobbies and recreation?
• Do you have other family in the area?
• Where do you see yourself in 10 years?  Are you planning on making this home a home for a long time? Or is this something you will use for a transition?

Of course we will also talk about the amount of bedrooms you want, bathrooms, lot size, garage space, etc...   

After we do that we will go through the process of buying and the different steps you will need to take during the process.  At the end we will spend a few moments going through the Buyer Agency Contract.  I will do my best to answer any questions you may have, and try to alleviate any fears/concerns that you may have.

Our conversation will be about an hour or so, but I truly believe if we have that conversation I will be able to save us a lot of time finding the home that you are looking for.

1. How much is the commission?  Commission is 6% of the final sales price.  My broker will collect a 6% commission at closing.  The broker will then give 3% to any other broker that brings you a buyer.  I will be paid out of the 3% my broker keeps.  In addition to this 6% commission there is a $245.00 Broker Fee.  The Broker Fee goes toward covering administrative cost and the processing of the transaction.  All of these fees are paid when you close on your property.
2. How long is a typical listing period?  The listing period is 6 months.  
3. What is included in the Real Estate Sale?  No personal property need be included in the sale.  On page 5 of the Listing Contract is a list all fixtures included in a real estate sale.  If there is something not on that list that you would like to take with you, there is a place to list that as an exclusion. However, there are some things that are very difficult to remove (gas stove/oven as an example.)  It is probably better to just leave those with the home.  In addition the seller will agree not to enter a LISTING AGREEMENT with any other broker during the time of the listing contract.
4. Duties of Broker & Seller.  This section highlights the responsibilities of the broker and seller. We will market the property for you, and do our best to find you a buyer.  The seller will have the responsibility to refer any potential buyer that approaches them to the listing agent.  If your property or any portion of the property is rented please provide the agent with a copy of the lease.
5. Material Defects & The Sellers Disclosure.  It is very important that prior to putting your home on the market you complete the 10-page Sellers Disclosure.  This will ask you a list of yes/no questions about the condition of the property.  The seller must disclose any known defects in the home to the buyer.  This is the only information that the confidentiality clause between the seller and seller's agent does not protect.  I must reveal a known defect about the property to a buyer agent by law.
6. Homes Built Before 1978 & Lead Paint.  If your home was built prior to 1978 we will need to complete a Lead Based Paint Disclosure as well.  
7. Recording Devices.  As a seller you may certainly have both video and audio recording devices on your property.  When you list a property in Pennsylvania however; you must let any potential buyer who looks at the property to know that they are being recorded.

That is the basic highlights of a listing contract.  If you would like to see a copy of a PA Listing Contract I can provide you with a copy to read through.  Please contact me if you are interested.

So what does this Buyer Agency Contract entitled you as a buyer to.  First, it ensures that a real estate professional is representing your interest, and not only the seller's interest.  You will have someone to explain and walk you through each step of the process, assist you with the lending process and getting connected to a lender.  You will have someone to help you find the home you are looking for, as well as help with negotiating the right price and terms for you.  You will have an advocate with lenders, appraisers, and the seller's.

This may all sound great, but with anything else the question becomes how much will it cost?  To answer that we need to look at how a real estate agent gets paid:

A listing brokers commission is usually 6% of the sale price.  The listing broker will then advertise to their own brokerage, and other brokerages that they will give 3% to the brokerage that brings the seller a buyer. When a buyer is found, the listing broker will pay the selling broker (or buyer's broker) the 3% on the settlement day.  Your buying agent is paid from a portion of that 3% that the buying broker collected.  

In most real estate sales today the listing broker will agree to give that buying broker the 3%.

So in most cases, you the buyer, do not owe any commission to your buying agent.  Though, there is a buyer broker fee that must be paid at the time ot the time of settlement.  For Berkshire Hathaway Homesale this fee is $295.00.

Now I know what you are thinking! Wait a minute! The seller pays your paycheck?  Doesn't that mean you work for the seller? 

No, even though my broker has collected a 3% fee from the seller when you buy a home, my broker is paying me out of that 3% for the purpose of representing you. If you are purchasing a home, our broker will accept a 3% fee from any seller, so there is no loyalty to a seller (except in Dual Agency See this entry). In addition, our agency contract clearly states that even though we (Berkshire Hathaway Homesale) may accept a fee from the seller we represent the buyer's interest.

So for representation, assuming you have a buyer agency contract, you will pay no commission other than the aforementioned broker fee.  It is really in your best interest as a buyer to find an agent that will help you through the process and help solve the problems that arise in a real estate transaction.

A Few Other Highlights:

• Your Information remains confidential.
• Expertise of Real Estate. (You have someone to walk through the process with you.)
• An Explanation of how the Earnest Money Deposit will work.

It is always a good idea to have an agent acting in your best interest.  If you are thinking of a move give me a call for a free consultation.

Honestly, I get it! I am just like you.  I hate feeling like I am pushed into signing something, and I will try to avoid it.

So let me take a few minutes and explain this form that was put in-front of you.

The form is called the Consumer Notice, it has the PA State Seal on it, and states "THIS IS NOT A CONTRACT."  However, by PA real estate law, it is my obligation as an agent to show you this form at our first meeting.

What does it say?

Essentially, it gives you a written description of a real estate agents responsibilities/duties.  It also breaks down the five types of relationships you can enter into in real estate (four different agency types, and one transaction relationship).

First, Seller Agency: In this agency the agent represents the seller exclusively, acts in the seller's best interest, and must keep seller's information confidential. But the seller agent must reveal know defects with property.

Second, Buyer Agency:  In this agency the agent represents the buyer exclusively, acts in the buyer's best interest, and must keep buyer's information confidential.

Third, Dual Agency:  In this agency, the agent represents the seller and buyer.  In order to do this an agent must have the written permission of both parties, and may not take an action that is detrimental to either party.

Fourth, Designated Agency:  This happens in a situation where the broker is representing both the buyer and seller, but two separate agents are designated to exclusively represent the two parties. An example:  I am licensed with Berkshire Hathaway Homesale, so if I am representing you as a buyer, and we look at a home listed by a Berkshire Hathaway Homesale agent.  I am your designated agent as the buyer, and the listing agent is designated to represent the seller.

Fifth, Transaction Licensee: You do not have a representative or an agent in this case, a transaction licensee essentially is a real estate professional who makes certain the paperwork is in order.  They do not assist in negotiation.  They are still required to reveal known defects in a property.

That's it.  On the second page, just above the signature the Consumer Notice states, "I acknowledge that I received this disclosure."

Here is what signing the Consumer Notice DOES NOT do:

• You are not obligated to pay anything by signing the form.
• You are not obligated to sell your home.
• You are not obligated to buy a home.
• You are not obligated to use the signing agent as your agent.
• You are not obligated to use the agency that agent works with.

Hopefully this has helped to understand the Consumer Notice.  As a Licensed PA Real Estate Agent I am obligated to give you this form at our first meeting.

This can be confusing and seem a little overwhelming when you first look at it.  The closing costs are the fees that the lender has charged to process the loan, the title/settlement company fees, inspections, and lender escrow requirements, and they are seperate from the down payment.

Some basic examples are below.

Title Charges:  Wire Transfer Fee, Notary Fee, Closing Protection Letter, Deed Recording may vary by county, Mortgage Recording, Title Endorsements (usually 3 on a residential property).  Title Insurance, Broker Fees.

Lender Fees:  Mortgage Origination and Underwriting Fees, Credit Report, Appraisal, Escrow Amounts: Varies by lender/loan type, but 10-13 months of taxes, up front mortgage insurance premium + 2 months escrow, usually 2 months of home owners insurance.

Inspection Fees: (Usually Due at Time of Service): Whole House Inspection, Termite, Radon, Water, Septic etc...

Other:  Upfront Home Owners Insurance, Upfront HOA Contribution Fees (if home is in a Home Owner's Association).  Real Estate Transfer Tax (1% of sale price), Home Warranty (If you choose to purchase), Flood Insurance and Tax Certification.  Any commission you may owe; however, this is very rare.  I have seen a few situations, that in order to secure a loan, a buyer had to pay back income taxes due, etc...

While not complete this gives you a good idea, of the different costs that you will pay in addition to your down payment at closing.  It's important to remember that this is in addition to your down payment.  I usually tell buyers to anticipate that their closing costs will be approximately 7-8% of the sale price of the home.  So if you purchased a $200,000 home, you can anticipate between $14,000-$16,000 in closing costs.

This means if your loan has a required 10% down payment on a $200,000 home ($20,000.00) you can anticipate the amount you will pay at closing to be around $35,000.00.

Before making an offer your agent will provide you with a line by line statement of these closing cost.  This form is called a Buyer's Estimated Closing Cost.  You will need to sign this; however, when you do, you are merely agreeing that you have seen it, as it is an estimate and subject to changes.  When I calculate a Buyer's Estimated Closing Cost, I try to assume worse case scenario for you at closing.  That way you are as prepared as possible for changes through the process.

We will go through this together on a home that you are making an offer so you know what to expect at closing.  

PUT YOUR BEST OFFER ON THE TABLE

This may seem simple.  However, many buyers will make a lower offer than they are willing to pay in hopes of receiving a counter-offer from the seller. This is done with the intention of "meeting in the middle" on the final agreed upon price. When there are multiple offers on the table this will not work.  In this case, most sellers will not counter anyone they will take the best initial offer on the table.  You cannot anticipate a counter-offer.

USE A CONVENTIONAL LOAN

 If you are pre-qualified with a government loan (FHA, USDA, VA) these loans benefit buyers because of lower down payments, and often have the ability to request sellers assistance at closing.  However, sellers tend to be hesitant with them due to a more stringent inspection and appraisal standard than a typical conventional loan.  If you are pre-qualified with one of these loans, you may want to consider asking your lender if you can switch to a conventional loan at 3% or 5% down.  Sellers are often more likely to lean toward the offer that has a conventional loan.

ESCALATION CLAUSE ADDENDUM

There is an addendum that allows you to, in a multiple offer situation, offer to beat any other offer by YYY amount of dollars, up to XXX total amount of dollars.

Example:

Let's assume a home is Priced at $200,000.  With a Escalation Clause Addendum, you could offer $200,000 (full price), and then offer to top any competing offer by $2,000, up to a total sales price of $210,000.

In this case, if another buyer made an offer of $203,000, your offer would increase to $205,000, and so on with your capped amount being $210,000.

There are some potential pitfall, and other tricky details with this, so be sure to have your agent explain it thoroughly.

BE WILLING TO GIVE SELLER WHAT THEY WANT ON THE LITTLE THINGS.

What do I mean here?  It is a good idea to have your agent call the listing agent, and ask a few questions, (sometimes sellers are willing to answer them.)  An example:  Is there a good closing date for the sellers?  If the seller's agent is willing to share that information, and your loan allows you to do it, give them that closing date, even though the closing date is typically the buyer's choice.  Even if it inconveniences you for a few days try to give them the sellers that date.

There are other things you can do to.  Maybe there is something in the house that the sellers reserved to keep with them.  Even if it is something you want, don't ask for it in the inclusions section of the contract. Ex, swing-set in the backyard, refrigerator, or washer and dryer.

INCREASE YOUR EARNEST MONEY DEPOSIT

The earnest money deposit is the money you put down to back your offer at the time your offer is accepted.  As a general rule of the thumb, this is 1% of the sales price.  When their are multiple offers of the table, if several of those offers are the same or close, seller's will look at who is putting down the most Earnest Money Deposit.  In this case it might be a good idea to increase this to 2%, 3%, 4%, or even 5%.  The more money in the earnest money deposit the less likely the buyer is to try to get out of the sale.

ELIMINATE INSPECTIONS

This is not something I recommend! However, if a seller sees that you are going to give up your right to inspection, and accept the house as is they know they don't need to come back to the table and renegotiate repairs after the inspections.  This is very appealing to them.  It is risky, but in the current market it is a risk some buyers are taking and succeeding with.

ELIMINATE SELLER'S ASSISTANCE

Many loan structures allow for a seller to contribute a certain percentage of the sales price to assist the buyer in paying closing cost.  In this market, it is definetly a good idea to not ask for this.  This is true even if your offer is the only offer.  In the hot seller market, sellers will, more than likely, turn this down, knowing that within a few days they will receive another offer where no seller assistance is requested.

ASSUME YOU HAVE TO BEAT A FULL PRICE OFFER

You will not know the terms of the other offers on the table.  Therefore, the best option you have is to make the assumption that one of those offers is full price, and is requesting no seller assistance at closing.  Now, use the other strategies to craft a winning offer that will top it.  Mix and match and be creative.  Sometimes the highest money amount is not necessarily the only thing a seller is looking for.  Ease of the transaction, favorable closing dates, and the ability to avoid repairs can come into play as well.

It can be tough for buyers, but it's not impossible.  There is a way you can put a winning offer on the table if you are willing to be creative with the terms of your offer.

SO WHAT IS THE EARNEST MONEY DEPOSIT?

The earnest money deposit is an amount of money you, as the buyer, are prepared to place in a non-interest bearing account, that is typically held by the office of the property's listing agent.  It is seen as a good faith deposit to back the offer on the home you are seeking to purchase.  When your offer is accepted you have (5) five calendar days to have the check to the listing agent.  This money will be held in the escrow account until closing. At closing the money is then applied as a credit toward your closing costs.

HOW MUCH EARNEST MONEY SHOULD I GIVE?

There is no set amount required.  However, as a general rule of thumb, never offer less than 1% of the sales price.

If the home's sale price is $200,000 then your Earnest Money Deposit should be at least $2,000.

Like anything else in real estate, earnest money is always negotiable.  In the current seller's market, where multiple buyers are bidding on the same home, it can  strengthen your offer to increase the amount in the earnest money deposit.  If all other terms to a competing offer are the same or close this may push you over the top.

CAN I GET THE MONEY BACK IF THE SALE FALLS THROUGH?

This is a little bit more of a complicated answer, but the short answer is, in most cases, yes, you can get it back.  The way the Pennsylvania Agreement of Sale is written certainly makes it easier for the buyer(s) to get the deposit back as opposed to the seller(s) being allowed to keep it.  The seller may be entitled to keep it under certain circumstances.

• Buyer providing fraudulent information on the mortgage application.  (This one is pretty straight forward.)
• Failure to respond to a buyer requirement/responsibility listed in the contract by the deadline date.
• Buyer backing out for a reason not specified in the contract. (Ex. Day of settlement arrives and you simply decide I don't want the house anymore.)

That is a quick overview of the earnest money deposit.  It is important that buyers are prepared to write this check within a few days of your offer being accepted, and remember the more you put down the better chance that a seller accepts your offer.

You continue to browse, and you see this phenomen happen time and time again.  "Well, I guess I'll just wait for another time," you say to yourself.

It is definetly a reality of the current housing market that things are moving fast, and if you hesitate, even for a day, someone else will jump in ahead of you.

But don't give up!  You can still move, buy that first home, and even find what you want.  And with interest rates where they are, it's a great time.  However, you do need to put yourself in position to act when the moment and the house are both right.  Here are a few tips to do just that.

1.) What's your why?

Simply, why is now the right time for you to purchase?  Maybe you are coming up on the end of a lease, you have young children and your targeting a specific school district, maybe you need more space, maybe it's a new job.  It doesn't really matter what it is, but it must be something that motivates you.  People in this market that are "just looking around," for the sake of looking around, will rarely if ever be successful even if they do find the home of their dreams. Having that why gives you a definite timeframe you need to act in. It gives you the motivation to put the best offer on the table for the home you really want.   It doesn't matter what the reason or timeframe is, just that you know what it is.  This may seem elementary, but many buyers don't have this.  Sharing this why with me will also help you find what you are looking for.

2.)  GET PRE-APPROVED!!

For those who have read my posts before I probably sound like a broken record.  However, I cannot possibly emphasize this enough.  In this market waiting until you find the house you like until you obtain a pre-approval letter from a lender will more than likely result in you loosing the home to another buyer that was pre-approved.  Pre-approval can take a day or two to complete soometimes, and in this market that will probably be a day or two too long.  Remember, with most lenders the pre-approval process is free, and does not obligate you to anything.  When you have that letter, you have the ability to have an offer on the table within just a few hours of seeing the home. 

(If you need help find a lender reach out to me, and I can connect you with a good one in the York area.)

3.)  Make a list of what you are looking for.

I know this too seems elementary.  But let me explain why this is so important in this market.  The more you can be specific about exactly what it is you are looking for the less houses you have to filter through before deciding on ones to tour.  This will save you time, and filter out what you are not interested in so we can eliminate them quickly.  Leaving us with the 1 or 2 houses that really meet your needs and wants.  I like to sit with home buyers, or over the phone if you prefer, and ask about 3 pages of question.  This is not to make you feel like you are experiencing an interrigation but to get to exactly what you are looking for so we have the best chance of finding it quickly.

4.)  Avoid asking For seller's assistance if at all possible.

With government loans (FHA, VA, USDA) and some conventional loans, a lender will offer the buyer the ability to request that the seller give a certain percentage of the sales price (usually capped at 6%) to assist the buyer in paying for closing cost.  In our current housing market this is not a good negotiating strategy for a buyer.  Simply put, sellers know that if they receive even a full price offer with a seller's assistance request, if they just hold out another few days, an offer of full price and no seller's assistance will be on the table.  Thus, your offer will be turned countered, or just rejected flat out.  The removal of a seller's assistance request in the terms of your offer becomes even more important when there are multiple offers on the table for the home.

Now, for that disclaimer, "if at all possible."  Sometimes some buyers NEED to have some seller's assistance.  If this is you don't despair.  There are some options.  Maybe we can find some creative terms to encourage the seller to give you the help at closing.  But remember, if you don't NEED it, it's best not to ask for it.

Keeping these things in mind will help you find a home, and put a winning offer on the table in a market that is currently stacked toward sellers.