Lancaster County PA Realty Check: June 2007

Saving on Home Purchase Financing Costs

Everyone wants to make the best deal they can on a home purchase!  But there's more to saving money than just the price of the house.  Many buyers overlook the potential savings they could get on the financing of their new home.

There are two major types of costs when it comes to getting a mortgage. 
The first is the initial investment, which includes the down payment and the closing costs.

The second is the monthly payment, which includes principal, interest, taxes and insurance.

Here are some ways to save on your initial investment:

Choose a low down payment loan.  If your credit is good, you can put down as little as 5%, 3.5%, or for some types of loans, even zero down.

Get a gift to cover closing costs.  A blood relative can give you a gift, or money may be available from a non-profit group or church.

Ask the seller to pay part of your closing costs.  A good Realtor(R) can be invaluable in helping you negotiate this.  Sellers are usually allowed (but not obligated) to pay buyer costs up to a certain limit.

Don't pay more insurance than you have to.  Some lenders want 14 months worth of insurance paid at closing.  The extra money sits in your escrow account, paying you no interest.

Get more than one quote for home insurance.  It can be surprising the difference you can find in premiums.

Consult with your tax advisor about what closing costs can be deducted from your income taxes.

Here are some ways you can save on your monthly payments:

Get a loan that doesn't have monthly mortgage insurance premiums.  You can do this by putting 20% down.  You may also be able to do it by getting an 80% first mortgage plus a smaller second mortgage.

Don't forget that interest payments on a primary residence, plus property taxes, are generally deductible.  Consult with your tax advisor.  The tax code favors homeowners.

In some cases an adjustable rate mortgage (ARM) may be justifiable.  The interest rate will start out lower.  If you will be selling the home within  a year or two, an ARM may make sense.  If you will be in the home for a longer period, a fixed rate is safer.

Find a good real estate agent to work with.  If you don't have one, ask your friends or co-workers for a referral.  Get yourself preapproved for a mortgage before you make any offers for a house.  You'll be able to make a better deal because sellers will give your offer more credence if you're already approved for a mortgage.

If you would like no-obligation information on how an Accredited Buyers Agent can help you save money and reduce your risk, call (717) 951-5552 or email brian@findlancasterhomes.com .

©BrianSchulman2008             

Northgate in Lancaster PA:

An exciting new project is taking place at the corner of North Queen and East Lemon Streets.  The complex of buildings formerly owned by J. F. Wilde is being partially demolished and partially restored and converted.  The new gated community of Northgate in Lancaster will consist of upscale condominiums, office and retail spaces.

The historic warehouse on North Christrian Street shown above will be converted into six luxury condos with 13-foot ceilings,  hardwood floors, and fireplaces.

Townhouses along East Lemon Street will be converted into additional condos.      

Thirty parking spaces will be created within the gated community.

Six Steps for Success in Buying a Home:

Buying a home can seem like an intimidating prospect.   So much is at stake - your credit rating, your savings - it can be difficult to work up the nerve to sign a contract.  How do you determine whether or not the purchase of a home is a good investment?  Here are some steps for success in your search:

1)  Start out by establishing your needs and wants.  I recommend that you do this in writing.  Make two columns:  one for what you would ideally want, and the other for what you definitely need.

2)  Determine how much you can afford.  Your monthly housing payment should not in most cases be more than about a third of your gross monthly income.

3)  Find a good real estate agent to help you.  A good agent can help you organize your thoughts and formulate a gook plan for finding and financing just the right home for your needs.  Let them tell you how they can help you and what programs and technical tools they have at their disposal.

Be sure to ask questions and take note of whether they are really listening to you or whether they have an agenda of their own! 

Ask if they are knowlegeable about the area and price range of homes you want. 

How often will they update you with new listings? 

Can you represent me as my Buyer Agent?

Do you have references from previous satisfied clients?

By finding  a good agent from the beginning, you will save yourself a huge amount of time and effort.

4)  Get preapproved by a lender.  This will save you time and stress later, when you are ready to make an offer.  Sellers want offers by buyers who will get them to the settlement table on time and without hassle.  If they get two offers, one from a preapproved buyer and one from an unapproved buyer, which offer do you imagine they will favor?  An experienced real estate agent can make recommendation for local lenders with good reputations and track records.

Getting preapproved will give you peace of mind as well.  With that approval in your pocket, you can have confidence that if you want a particular home within your price range, you are already approved for a mortgage!

5)  Find a home that meets your needs.  Write down comments about the homes you see.  Make sure your agent is aware of your time schedule and expectations.  Your agent can give you lists of available homes, which you can take with you and check out exteriors and neighborhoods.  Let your agent know which homes are your favorite choices.  Your agent can set up showings for you to see the interiors of the ones you like best.

Tell your agent honestly what you think of each home.  This will help them in choosing future houses to tell you about.  Be honest.  The agent won't take it personally.  To do the best job, your agent must know your true feelings.

6)  Make an offer.  You should already know whom your agent is representing.  If he or she is your Buyer Agent,  your agent will help you negotiate the best possible offer.  Remember that a listing agent is representing the seller, and may not be able to advise you what is a fair offer.

If you would like no-obligation information on how an Accredited Buyers Agent can help you save money and reduce your risk, call (717) 951-5552 or email brian@findlancasterhomes.com .

Lititz Springs Park, Lititz PA

The first Independence Day celebration in Lititz Springs Park was held July Fourth, 1811.  Apparently the Moravial board of overseers disapproved of all the merry-making and noise!  It wasn't until 1818 that Lititz held another community-wide observance on July Fourth.

Since then, there hs been a continuing tradition of patriotic demonstrations at Lititz Springs Park every Independence Day.

On July 4, 1843, a feature was started which has become a unique tradition ever since.  It was decided to light 400 candles at night, described as a "general illumination of the grounds".  At the time, this was considered a grand and lavish demonstration.  Greatly successful, the tradition has continued ever since.

In 1893, a 10-foot miniature replica Ferris wheel was erected in the springs, powered by a water wheel.  Unfortunately, this feature had to be discontinued, since the water level in the springs typically went down during the dry summer months, and was not high enough to drive the water wheel during droughts.

In 1903 a miniature replica of the Eiffel Tower was erected to go along with the grand illumination.  Over the years, various themes have been used for the July Fourth celebrations.  This year, the entertainment, parades and activities over the July 1 through July 4 period promise to be bigger than ever!

Lancaster County Firsts & Bests, III

Lancaster County has an unusual depth of history and variety in its economy.  Did you know that for all the commercial and residential growth in recent years, Lancaster County is still the largest producing agricultural county in Pennsylvania?

In Lititz, the Sturgis Pretzel House is the oldest commercial pretzel bakery in the United States!  The stone house was built by Peter Sturgis in 1784, and the first pretzels were baked by Julius Sturgis in 1861.

In Elizabethtown, A. Buch & Sons was the first commercial wheelbarrow manufacturer in the U.S.

In Columbia, The National Watch & Clock Museum has the largest clock collection in North America.

The Demuth Tobacco Shop at 116 East King Street, Lancaster, founded in 1770, is the oldest tobacco shop in the nation. It was founded by Christopher Demuth, and is still in the family.  Charles Demuth, the famous artist, lived next door, and his house has been restored to a museum.

The Strasburg Railroad is the oldest short-line railroad in America.  Only four miles long, it was first chartered in 1832, and finished by 1851.

The Philadelphia-Lancaster Turnpike, completed in 1794, was the first successful turnpike in America.  It was built between 1792 and 1794, the first road built with a hard stone base in the United States, following the design of the Scottish engineer MacAdam (sound familiar?)  The Lancaster Turnpike Company was a stock company, and tolls were charged at nine different tollgates, or pikes.  When the toll was paid, the pike would be rotated so that the horse-drawn vehicle could pass - hence the name "Turnpike"!

Copyright2007BrianSchulman©

The latest attempt at property tax reform was soundly defeated in the May 15 primary.  Pennsylvania lawmakers are busy trying to figure out what the voters were trying to tell them.  Apparently the voters had little trust that Act 1 would fix the problems with the present tax system.

Since the property tax would have been replaced with an increase in the state income tax, only those in the lowest income brackets supported the idea.  Even retirees, many on fixed incomes, voted 54% against the act.  Almost everyone who thought their taxes would be higher voted against the initiative.  It seems that the majority of voters saw the "reform" as a tax increase.

Surprisingly, there was little difference by age, education, or party registration in the opposition to the tax shift. 

Columbia, PA Classic Car Show

June 16 was a perfect day for a classic car show in Columbia, PA.  The temperature was a comfortable seventy-eight degrees.  The sun framed the few white clouds in the sky, making a great backdrop for some of the finest antique, classic and customized cars and motorcycles in Lancaster County.

American flags festooned the street lamp posts, and a good crowd was out for the celebration.  Locust Street, Columbia's main business street, was closed off from traffic.  Some local businesses had displays or refreshments out on the sidewalk.

OF course, concession food was available, to add to the carnival atmosphere!  What  street fair would be complete without lemonade and funnel cake?

Up and down the street could be heard the live music of a rock 'n' roll band playing "Mustang Sally" and other hits of the 1950s and 1960s.

The day wound up with awards for the winning cars, and prizes for contest entrants.  All in all, Columbia's  Classic Car Show was a complete success!

In 1784 Peter Sturgis built a lovely stone house at 219 East Main Street, Lititz.  In 1861, Julius Sturgis began baking pretzels at the house.  The Sturgis Pretzel House, now a Lititz landmark, is the oldest commercial pretzel bakery in the United States.

Lititz Improvement, Inc. has purchased the Pretzel House for renovation.  Managed by Dennis Beck, Lititz Improvement is a real estate investment group made up of civic-minded local investors who have purchased and renovated several Lititz buildings in the past.

Modern rest facilities are planned so that the Pretzel House can accommodate bus tours.  Lititz Improvement, Inc. plans to reopen the Pretzel house for business as an operating museum in the near future.  The Sturgis Pretzel House will once again continue to be, along with the Wilbur Chocolate Factory, one of the many historic attractions that bring visitors to Lititz every year from all over the eastern states.

Copyright2007BrianSchulman©

Lancaster's Central Market, the nation's oldest (1730s) publically owned, continuously operated farmers market, is changing its rules - and not everyone is equally happy about it.  The non-profit Central Market Trust, which was formed a year ago to take over management of the Central Market from the city, has decided to enforce the hours that standholders will be open for business.

The present Central Market building, built in 1889, is pictured here to the right of the Heritage Museum.  The market's hours have traditionally been 6:00 am to 4:00 pm Tuesdays and Fridays, and 6:00 am to 2:00 pm on Saturdays.

Standholders had up until now been allowed a certain amount of leeway in their own hours, depending on their customers' buying patterns.  Now, the Central Market Trust is planning to enforce those hours for the benefit of the public.

A few standholders, not wanting to get up at the crack of dawn, are planning to retire or sell their stands to newcomers.  Others are thinking about what they could add to their inventories to justify the newly enforced hours with increased business.

Along with the traditional farm market produce, meats, baked goods, crafts and flowers, some newer products are making their way into the market - like home made soy candles and ethnic foods.  If you're downtown Lancaster on a Tuesday, Friday or Saturday, stop in at the Central Market - it's rated as one of the best farmers markets in the country!

Mayor Rick Gray, along with top city officials, has come up with a strategic plan for Lancaster.  Starting with group sessions conducted last summer, the plan has been in formation for a year.  Now it has been boiled down to one page, which the mayor pledges to carry in his pocket.

Mayor Gray is comitting to rebranding the city as an East Coast arts destination.

City Hall will become focused on its customers, the people.

Three hundred owner-occupied housing units will be brought onto the market.

More police officers on foot or bicycle will patrol the city.  It has been shown that police are accepted on a more personal basis by neighborhoods when they patrol on foot or bicycle, rather than cruising by in patrol cars.

Walking, biking, scooters and buses will be encouraged, for a better city experience and to relieve traffic congestion.

Wireless internet service will be brought to parts of the city.

New retailers are being encouraged to come to the city, and to expand their hours into the evenings.

Increased places for evening entertainment and artists' studios will be created in new public areas. 

Mayor Gray, who has said that he intends to run the city as though he weren't going to run for re-election, gives himself until the end of his term to accomplish these big goals.  "We need to do it to make the city a better place," he said.