MSN recently published an article that lists the nine best, livable cities.  The criteria used to determine the “top nine” include:  affordable and appreciating housing, low unemployment, short commute times and availability of entertainment. 

In the final report, the Harrisburg-Carlisle area ranked #3 out of 9.  We know that Central PA is a great place to live and work and now the rest of the world will know as well.

To read the article in its entirety, please visit http://realestate.msn.com/Buying/Article2.aspx?cp-documentid=3863709>1=9226

Rock on Harrisburg! 

Some buyers may ponder the thought of “Why should I get a home inspection?  It’s only going to cost me more money.”  The fact is that spending anywhere from $200 - $400 can actually save you thousands of dollars. 

Buying a home is one of the biggest decisions that you will make during your lifetime.  Wouldn’t you be able to sleep better at night knowing that you are buying a home that is in good condition?  During a home inspection, a qualified expert will take an in-depth and unbiased look at the property you intend to buy.  The inspector will:  

-  Evaluate the overall exterior condition including the structure, construction and mechanical systems

-  Identify items that should be repaired or replaced

-  Estimate the useful life of major systems (such as electrical, plumbing, heating and cooling) as well as structure and finishes

The home inspector will provide a detailed written report regarding his/her findings.  Some inspectors provide this report immediately following the inspection.  If you don’t receive your written report at the conclusion of the inspection, request for the home inspector to provide the written documentation within 2-3 days of the appointment.  Remember, if your offer is contingent on a home inspection, you need to “Reply to Inspections” within the proper time frame.  If you don’t, then the contingency is removed and no longer valid.

My last piece of advice is ALWAYS, ALWAYS, ALWAYS attend the home inspection.  It is the perfect time to ask questions and learn about the home you are buying.  The money you spend on a home inspection will buy you piece of mind down the road.

Are you thinking about buying in this market? It’s a great time to buy and let me tell you why.

Mortgage rates are very attractive. The average interest rate on a 30-year mortgage is 6.1%. By December, interest rates will most likely reach mid-6% and the forecast rate for 2009 is 7%. The inventory of homes is abundant and will remain so but financing is projected to get more expensive.

No one can time the bottom of the market. For buyers, now is the best time to buy - inventory is high and mortgage rates are low. Make sure you look at a reasonable amount of homes before you pick “the one” and then drive a hard bargain. If you are trading up, you may want to sell your current home first before you buy. If you don’t, you may be forced to pay two mortgages until your current home sells.

Do yourself a favor and don’t listen to the national news when it comes to real estate. Real estate is a local market (versus a national market). The Harrisburg area (Cumberland, Dauphin, York, Perry) is very stable and homes are selling at ALL price points. During the first quarter of 2008, in Central PA alone, 1,598 homes settled.

The following data is pulled from the Central Penn Multi-List Service. It’s proof that homes are selling in Central Pennsylvania at all price points. Naturally, the list price comes in to play so the data is segregated by the actual selling price (not list price).

Selling Price                   Units Sold               Avg. Days on Market                 Active Listings

$199,999 and below         1,011                                44                                           2,023

$200,000 - $299,999         298                                  93                                           1,088

$300,000 - $399,999         102                                  94                                              488

$400,00 and above             60                                  111                                             504

Note to Sellers: If the market value of your home is hovering around $200,000, it is in your best interest (if you want a fast sale) to price your home under $199,999. Homes are selling fast in the $199,999 and under category.

Note to Buyers: The same information applies to you. If you are looking to buy in the $199,999 range and under, be prepared to make an offer on a home that you really like. If you hesitate or take a week or so to get pre-approved, the home may be under contract and no longer available.

Gone are the days of 100% financing.  In order to buy your first home you need to financially prepare yourself so when the perfect house comes along you can go after it with some buying power.

Tip #1 - Save money for a down payment and closing costs.

Down payments usually range between 3-20 percent of the property value.  The exact percentage will be determined by the type of mortgage loan.  Closing costs consist of title insurance, taxes, points (if applicable), financing costs, items that must be prepaid prior to settlement and other settlement costs.  Buyers should receive an estimate of these costs either from the lender and/or from the broker.

Tip #2 - Get pre-approved from a lender.

Before you start looking at homes, you need to know how much you can afford.  Call a local lender or ask your Realtor who they recommend you should call to get pre-approved.  Your income, debt and credit history will determine how much you can borrow.

Tip #3 - Verify your credit report.

Request your credit report from each of the three credit reporting companies:  Equifax, Experian and Trans Union.  You will want to make sure the report is accurate and fix anything that is not.  Potential lenders will review your credit history and based on your credit report they will determine whether or not they will grant you a mortgage loan.  Get your credit report in good shape in advance of applying for a mortgage.

Tip #4 - Don’t make any major purchases!

Although you may be tempted to buy a new car, don’t do it right before you want to buy a home.  It may decrease your chances of getting a loan or it could potentially lower the amount of the loan.

Tip #5 - Familarize yourself with the local real estate market.

Start researching the home values in neighborhoods that catch your eye.  Also, you need to educate yourself on the TOTAL cost of home ownership such as homeowner’s insurance, remodeling costs, maintenance costs, utility bills, Home Owner Associations (if applicable), etc.

Home ownership is a wonderful thing and a great investment for your future.   Hiring an experienced real estate professional will also better prepare you for this adventure.  They can guide you through the process and make it a fun and rewarding experience. 

According to research conducted by The Patriot-News, the midstate’s economy is doing pretty well. In fact, better than the national average. Two key indicatores are:

Unemployment Rate Foreclosures

Harrisburg Area 4.1% Up 7% in 2007

Lebanon County 3.9%

York County 4.3%

National 4.9% Up 75% over previous year

Overall, Central Pennsylvania did not experience skyrocketing home prices or new build growth like other areas of the country. Therefore, we are not suffering from the “pounding” that other areas of the country are currently trying to endure. Living in the midstate is a great thing!