Financial guru, Warren Buffett is predicting that the residential real estate market will start to rebound in 2011.  The combination of a high supply of unsold properties and record foreclosures flooding our markets caused property values to decline throughout the US.  Once demand (for homes) and supply (inventory) meet, the market will start to improve. 

Warren_Buffett_Predicts_Rebound_in_2011

For information on our local real estate market, contact me at Michelle@HarrisburgHouses.net.  

Cumberland County has re-assessed all properties values to reflect a property’s market value as of January 1, 2010.  The revised assessment will be used to calculate county, municipal, and school district real estate taxes for 2011.  The last assessment took place in 2004.

The first batch will be mailed to home owners in Big Spring, Shippensburg Area and South Middleton School Districts on Monday, March 1.  The remaining home owners will receive their assessments in the May/June timeframe. 

Are you looking for a home in Harrisburg?  You’re in luck.  In addition to the current tax credit and low interest rates, there’s a new home ownership incentive program that’s available. 

Announcement_of_Harrisburg_Home_Ownership_Incentive_Program

Please contact me at Michelle@HarrisburgHouses.net for more information.   

Even though the contract negotiations are over, you still can’t relax because the dreaded home inspection is right around the corner.  Below is a list of some of the most common defects that home inspectors look for during their detailed inspection.

- Improper or insufficient electrical wiring.  An inspector will be looking for potential fire hazards.  Wires need to be housed properly in a box, not hanging loose.  If you need electrical work done, make sure you hire a certified electrician who obtains the proper permits (when applicable).  This is an area where you don’t want to cut corners to save a few dollars because in the end it may cost you thousands!

- Plumbing problems such as leaky faucets, corroding pipes, improperly installed hot water heaters, and loose toilets.  Something as small as a leak can lead to mold, mildew and even structural damage when left unattended.

- Roof deterioration.  Home owners should routinely check for loose, missing or damaged shingles.  If you tend to the small repairs on a regular basis, you can stave off costly repairs (or even a full roof replacement).  Eventually, you’ll have to succumb to a roof replacement  but until then, take care of what you currently have.

- Overall neglect.  The details speak volumes as to what type of home owner you are.  If a potential buyer sees peeling paint, decayed caulking around windows and doors, broken fixtures, gutters overflowing, etc., it may lead them to the conclusion that overall “health” of the home is poor.  However, if you take care of the visual details and disclose service maintenanace records, chances are the buyer is going to go into the home inspection feeling confident about their decision and may overlook the small stuff should the inspector find anything.

Depending on the situation, a seller may want to have a pre-listing home inspection.  The benefit is that there won’t be any surprises once a willing, able buyer is identified.  However, sellers must keep in mind that what you know about your property you MUST disclose.  Therefore, if the inspector indicates that the current electrical wiring is insufficient for the current size of the home due to the family room addition, the seller has two options.  1) Upgrade the electrical service to accommodate the square footage of the home and document this upgrade in the seller’s disclosure, or 2) Do nothing and disclose the home inspector’s observation in the seller’s disclosure.  Obviously, it’s recommended for a seller to fix the problem so it’s no longer a potential issue. 

For more information, please contact me directly at Michelle@HarrisburgHouses.net. 

Homeowner’s insurance has been a hot topic lately…especially with sellers who have already vacated their current home.  In today’s market, it is not uncommon for a homeowner to buy a new home first without selling their old one. 

The problem is, most insurers will not insure a vacant home because there is a greater possibility that something will happen to it.  Some insurers will even stop coverage all together when a home has become unoccupied for over 30 days.   That’s because such occurrences as theft, vandalism, fire and water damage are far more likely to happen in vacant houses than occupied ones and the damage is more likely to be worse because no one is around to report it or stop it. 

If you find yourself in this situation, ask your current insurance company for a “vacancy permit” but you need to do this BEFORE the 30 days expire.  This type of permit will provide similar coverage but will not protect your home against malicious acts, glass breakage or water damage.  Some insurance companies do offer coverage for vacant homes but typically it’s at a higher premium. 

Bottom line is…make sure you do your due diligence before making the decision to vacate your home (if it’s going to be for an extended amount of time).   The devil is always in the details!!

FHA is trying to achieve balance of managing their risk while providing access to underserved consumers.  The government mortgage insurer now backs approximately half of all home loans to the nation’s minorities. 

The changes that are coming are:

- Raising upfront Mortgage Insurance Premium (MIP) from 1.75% to 2.25%

- For borrower’s with a FICO score over 580, the down payment percentage will remain at 3.5% however for borrower’s under 580, they will need 10% down

- Reduce closing cost assistance from 6% to 3%

For more information about these changes, visit http://www.cnbc.com/id/34947047 or call your local lender.  As always, if I can assist, you can call me at 717-623-8508.

Willow Brook is an upscale, luxury planned community located in Lower Paxton Township (Dauphin County).  The final phase of building in underway however all existing inventory has been price reduced!

- Three floor plans to choose from (1,644 - 2,159 square feet), including a first floor master suite option

- All plans offer 3 Bedrooms and 2.5 Baths

- Full basement

- Two car garage

- Central Dauphin School District

- Priced from $217,400

- Very affordable homeowner association fees ($170 per quarter)

For more information or a private tour, please contact me at 717-623-8508. 

According to the Mortgage Bankers Association, mortgage rates continue to decline, with 30-year fixed rates reaching their lowest level since May 2009.

- 30-year fixed rate mortgages decreased to 4.79% from 4.82%

- 15-year fixed rate mortgages decreased to 4.27% from 4.32%

- 1-year ARMs decreased to 6.56% from 6.66%

NOW is a great time to buy…low interest rates AND a tax credit for first time buyers as well as ”repeat buyers”.  Call me at 717-623-8508 for more details!

There are a lot of questions surrounding the expanded home buyer’s tax credit.  One of the questions I receive most often is “Do I qualify to receive the tax credit?”  To better understand the eligibility requirements and some of the other most frequently asked questions, watch the attached video.

RE/MAX Agents Know the 2009-2010 Tax Credit:

Even if you don’t live in Central PA or want to buy a home here, I can still help! Feel free to contact me at Michelle@HarrisburgHouses.net or 717-623-8508.

On November 6, President Obama signed legislation that extends and expands the U.S. tax credit for home buyers.  Not all the details have been disclosed but attached below are the basics of the program.

In addition to the tax credit, interest rates remain historically low and there’s plenty of homes to choose from.  Don’t miss out on this limited opportunity.  Call me today at 717-623-8508 to get started!

For more information regarding the home buyer’s tax credit, click on the link below.

Home Buyer’s Tax Credit