This guide is touching on just the basics of real estate. There is so much more involved depending on where you are in the market and there are many informative websites with the click of a google search.

For first time home buyers and investors

I just had to write this guide primarily because too many people are unaware how real estate works. Right now the market is quite volatile especially with increasing interest rates, inflation, over abundance of supply etc. I keep hearing "the home prices will drop 50% by next year, just wait". Hmmm well as much as I wish that were the case (for personal reasons), that assessment is way off base. Real Estate is local to the market you are buying or selling in. If there is economic growth and stability in the area you wish to purchase, demand and prices will continue to increase hence the reverse is also true.  Harrisburg has seen the same continual growth (8% yoy) although we never really experienced a "boom" as other parts of the country has.

There are also many loan programs available to which I would seriously advise anyone looking into getting a mortgage in the near future to due their due diligence. HELOC's, IO, ARM are great programs just not for everyone. You need to access your situation, understand what your options are and proceed accordingly. For example, a 2/28arm is great for someone with some credit blemishes that need that time to re establish their credit, i.e: You need to purchase a home now but your credit's not so good, once you're in you can start working on those credit repairs and refinance in two years.

IO loans are great for investors that do not intend to keep their investment property but rather "flip" in 2-5 years. I would not advise any traditional homebuyer that intends to use their property as their primary residence to use this program.

Heloc's are great for homeowners with enough equity to take out a loan for their children's college fund, investments (not to spend on depreciable toys). 

I can go on and on but hopefully you grasp the idea. There are many reputable lenders and not so reputable lenders and a reputable lender will explain this to you in detail. Seeing as I got slammed for this comment, I must add there are reputable realtors and not so reputable realtors...lol.

I also have to touch on "newbie investors", please educate yourselves before getting in over your heads. I hate to see people lose their behind on a property their worked so hard on simply because they made some costly mistakes. Marble floors, granite countertops, stainless steel appliances with three fireplaces are nice but when it comes time to sell, you may not get what you paid for those items. Remember first and foremost this is business and the bottom line is not to lose money or to break even but to make a profit. Consider your expenses, overhead, capitol, carrying costs, vacancies, and equity. Can't sell in your market right now, consider wraps, sub2, creative notes, etc. Is this ideal? Probably not but it's better than holding several mortgages and trying to float them all.

When pricing your home to sell, please keep in mind that if the appraisal doesn't come back at your asking price, that buyer has to come up with the difference out of pocket.  There are also unscrupulous lenders out there that will adjust the appraisals accordingly and although I'm not going to get into that here, you can do a simple search on zillow.com, homevalue etc. to get an accurate idea of where you're home should be priced. For those that are interested in "flipping" research your market and remember this is an investment property not your personal residence which means basics rules of business apply. There are many websites out there that can point you in the right direction if this is truly what motivates you. There are workshops, investor groups, networks of people that can help you understand your market all you have to do is ask.

When selling your home, interview several realtors.

Ask your friends and families for referrals. Don't be afraid to ask questions such as," What types of marketing do you plan on doing?" "Where do you advertise?" "Who will be able to see my home?" "What hours are you usually available?" "How far are you in proximity to my home?" Ask to see comparables to your market. And here's the key to dropping your price, if the home has 10-15 showings in a week and there's no offers it's the price. If you home only has one or two showings in a week, it's your marketing. What do the pictures look like? Are they easily accessible to buyers? Does your home show well? Is your home readily available for showings? Are your buyers pre qualified? Pictures are worth a thousand words and if your initial pictures are not appealing, buyers will skip right over them and to the next home for sale especially in today's market.

Understand your market, appreciation, depreciation, your goals and you will be fine in any market whether you're buying or selling. Don't be afraid to ask questions of your realtor or mtg broker and do not sign anything you do not feel comfortable with. Your realtor and or mtg broker works for YOU.