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Lancaster County Real Estate First Time Home Buyer Credit

I’ve encountered the question recently, what will values do after the tax credit ends? Fact of the matter is, I don’t know. I don’t believe this tax credit has really done that much to begin with. Will it make or break values after it ends, time will tell. I think they’re many buyers who have the cash and are willing to gamble that values will drop.

I can’t say what I would do if I was looking for my first home at the moment. On one hand values could drop which could increase your buying power, on the other it may not make any difference and you’ll miss out on $8,000 credit.  For example, based on a $100,000 home, for values to drop 8% or more, even at the worst time in our local economy I don’t think values dropped that much, in the under $150,000 range. Your closing costs would be about the same regardless, you may end up saving a thousand at most on overall cost.

Based on normal appreciation we’ve experienced in Lancaster County, you can count on about 3-5% over 5-10 years. So do the math, is it worth taking that cash out of pocket, or not getting the tax credit.

It’s easy to buy a Home in Lancaster

Here are a few key steps and thoughts to finding the right home.

  • Call Alex Reedy 717-538-3910
  • Get Pre-approved from a local bank- I recommend finding out your max number allowed to borrow. Then once you know, work backwards from that to suit your budget, be conservative. Be sure to ask about utility costs, taxes and insurance.
  • Identify your needs, schools, kids, sidewalks, homeowners associations, maintenance free, old home, new home, etc. Think long about this, how long will you stay there, are you very active, do you travel, do you have the TIME?
  • Make an offer

Is that easy enough?

Read my next blog of how to make an offer!

Alex

Parade of Homes

Last year was an interesting year for new construction, with a down market and low demand, those of us in new developments all felt it. Although we have felt increased traffic and sales in our new developments, it’s still a mystery of what the future holds. It’ll be interesting to see what the builders in Lancaster Pa build this year and how extravagant or not they’ll be.  Or who may not build at all, let’s face it, some of the competition will not be in the running this year, or in business. I always look forward to the parade of homes, just to see what everyone is involved in and of course to get a glimpse of a few homes. The other factor that will change the pace of this years Parade, is the new building code. To my knowledge it’s not passed yet, but could increase overall costs and raise the standard for new builds in Pa. We have already been notifed that with the changes about to occur, costs will be rising for any new inventory.

If you have any questions feel free to ask, thanks for reading! 717-538-3910

Alex

$8000.00 Home Buyer Credit

Hey, have you received you $8000.00 yet? If not, you can file an amended tax return if you’ve already bought. If you haven’t already bought, you better get off the fence and find something before this tax credit runs out!

Hey Alex,
Just wanted to let you know that I received my FHA money back already.  I filed an amended tax return less than 4 weeks ago, so it happened very fast if you want to let any of your other FHA people know that the process was very quick and easy (at least for me).
Hope all is well!
Carrie