Lancaster County PA Realty Check: May 2008

For a long time Lancaster County, PA home sales had been slowing, but with increased median prices.  However, for the latest available report from the Lancaster County Association of REALTORS, the average sales price in April was $181,510, down 8.9% from the average price of $199,250 in April 2007.

In addition to the weakened average price, only 388 homes sold in April, a whopping 20.9% decrease from the 490 homes settled in April 2007.

On the positive side, new residential listings were actually down to 894, from 906 last April.  This indicates that excess inventory is not getting worse.

What does this mean for the real estate consumer?

1)  Sellers are getting realistic.  Serious sellers are pricing their homes competitively, knowing that buyers have many other choices to look at.

2)  Non-serious sellers are taking their homes off the market, or not listing them in the first place.  This is not the time to "test the waters".

3)  This is a great time to be a buyer!   Not only are prices lower, but interest rates are low and there is a large variety of homes to choose from.

4)  This is a great time to trade up!  For every $1.00 you don't make on your old house, you'll save $1.50 to $2.00 on your new home!

If you would like more information on the Lancaster County housing market, please call (717) 951-5552 or email brian@FindLancasterHomes.com .

Mortgage insurance will be harder to get after June 1, 2008, now that MGIC, the Mortgage Guarantee Insurance Corporation, will stop insuring certain classes of loans.

Underwriting changes mean that the following classes of applications will no longer be eligible for mortgage insurance after June 1:

Reduced Documentation/No Documentation loans

Investment properties

Cash-out refinances

3- to 4-unit properties

Loans with potential negative amortization

What is the likely result of this underwriting change? 

Home loans for owner occupants with good credit and documented income will not be affected.

Since MGIC is the most influential mortgage insurance institution, other mortgage insurance companies are likely to be affected by this ruling.  Loans without mortgage insurance will still be available, but rates or fees may be somewhat higher on such loans.

Self-employed persons will have to provide more documentation of their incomes. 

FHA, which has an independent mortgage insurance system, will become a more popular source of mortgages.

Refinancing to pull cash out of a property will become more difficult.

Interest rates and/or fees on 3- and 4-unit properties will likely increase.

The good news on loans with negative amortization: they were a very risky idea in the first place.  It's probably just as well that loans with monthly payments so low that the principal balance owed actually increases, may no longer be easy to get.

Bucher Elementary School, 450 Candlewyck Rd. in Manheim Township, is planning a major renovation in order to bring the school up to a LEED Silver Rating.

Leadership in Energy and Environmental Design (LEED) is a non-profit organization which developed the rating system to encourage environmentally responsible, energy efficient, healthy living and work places.

LEED was created by the U.S. Green Building Council, made up of influential members of the United States building industry.

Among the improvements planned for Bucher will be a white roof to reduce heat absorption into the building, which will reduce air conditioning power use.  A geothermal heat pump system, similar to the one recently installed in the Manheim Township High School, will not only incease efficiency by utilizing heat energy from the ground, but will also eliminate the need for oil.

Gray water will be recycled through the use of underground cisterns.   The gray water will be filtered and reused for flushing toilets and urinals, reducing the need for fresh water.  More natural light will be let in so as to minimize artificial lighting requirements.

This fall the project will start in the new portion of the building.  When the new portion is completed in 2010, improvements will commence on the existing part of the school.

Manheim Township has been a leader in green innovations to conserve energy and improve efficiency.

Ever since 1963, Funk's Farm Market, on South Duke Street, Millersville, PA, has been a landmark for Lancaster County locals.

Funk's Farm was founded 135 years ago in 1873 by Amos G. Funk.  Forty-five years ago the farm market was established. 

Every spring a wonderful selection of annual and perennial flowers are available to beautify local gardens. 

There is also a well-stocked garden supply area, with gardening equipment, landscaping decorations, fertilizers and weed control products.

Late in the summer, the Butterfly House will be open behind the market.  Shrubs are available in the back as well, including butterfly bushes that will attract many butterflies.

In the farm market itself, locally grown strawberries are on display.  Through the summer, fruits and vegetables will be available in season, ending with fresh local corn in late summer and pumpkins in the fall.  Wonderful baked goods include home made pies, cookies and breads, and even home made fudge is on sale.

The gift shop features scented candles, Pennsylvania Dutch gifts, and country home decorations.

If you're near Millersville, be sure to check out Funk's Farm Market.  The Market is open Monday through Saturday during the spring and summer.  Closed Sundays.

©2008BrianSchulman

Memorial Day was originally called Decoration Day.  In 1865, following the Civil War, Henry Welles, a druggist in Waterloo, New York, suggested that the graves of fallen soldiers from the war be decorated in honor of their service to their country.  The town embraced the idea, and wreaths, crosses and flowers were placed on each grave.  Flags were flown at half mast.

In May of 1866 and 1867, other towns adopted the ceremony, and services and speeches were held at the cemetaries.  In 1868, the first official recognition of Decoration day was observed, with the date being changed from May 5th to May 30th.

1965 marked the centennial of Decoration Day, and it was decided to make the day a memorial to the fallen veterans of all wars, including WWI, WWII, and the ongoing war in Viet Nam.  The name of the day honoring all our veterans, past and present, became Memorial Day.

This holiday weekend, as we enjoy the spring weather at barbecues and parades with our friends and families, let's give thanks to the brave men and women who have kept our country free in a dangerous world.

Who do you see when you look in the mirror in the morning?  Do you like the person looking back at you?

You're experiencing "cognitive dissonance" if the person looking back at you isn't the person inside you, who you know you could and should be.

I'm not talking about discovering gray hairs or new wrinkles (although that can be cognitive dissonance, too!)

Have you been a good friend to your friends?  Have you been a loving spouse to your spouse?

Have you done everything you could for your clients?  Have you exhibited random acts of kindness?

Have you worked your marketing systems consistently whether or not you had a lot of business?

Have you followed your business plan?  Is your business where you planned it would be?  Do you even have a business plan?

There's only one way to end cognitive dissonance!  We need to try to be the best us that we can be.  Trying our best and not reaching our goals is not failure.  Failing to try our best is indeed a failure. 

"Woulda, shoulda, coulda" only causes us to compare what we know we're capable of with what we've actually achieved. 

Every day brings a brand new start for the rest of our lives.  It's not over as long as we keep aiming high.  It's not over 'til it's over.

©2008BrianSchulman

Of the many parks in Lancaster County, PA, one of the prettiest but less well known is the East Lampeter Township Community Park.

Although the park is located between Route 340 and the outlets area of Route 30, it's off Hobson Road, a country road, and it has a quiet, private atmosphere.

There's a well-equipped playground for the kids.

                                There are beautiful picnic groves.

                                                    A baseball diamonds sits in the middle of the spacious park.

Several well-equipped picnic pavillions are available for reservations.  All have electric outlets and charcoal grills.  The largest pavillion even has a gas grill!

                                    Scenic walking trails wind through the park.

                                                                            Beautiful open green areas abound.

Copyright2008BrianSchulman©

Purchasing a home, especially for the first time, is an exciting experience - but it can be stressful, too!  Buyers often worry that they will make the wrong choice of houses, or that they will pay too much, or that something will be wrong with the house that they don't yet know about.

Sometimes, right after the purchase, buyers will suddenly realize the magnitude of what they have committed to - and fearful of a mistake, wish that they had never made the commitment to buy.  This phenomenon is known as "Buyers Remorse".

Buyers remorse can occur even when the buyers find an almost perfect home the first time they go looking.  They may continue to second-guess themselves, feeling that they haven't seen enough homes.  They don't know how many other, better, more perfect houses would have come up if they had kept looking.  You need to have the self confidence to realize that when you have found a home that meets your important needs, you should act on it while it's stil available.  No house will  be absolutely perfect, not even a brand new one.

Many a great choice has been lost because the buyers continued looking at other homes - and in the mean time, someone else purchased the house and the opportunity was lost.

I'm reminded of a technique that my broker used to use for jittery first time buyers.  He would explain the phenomenon of buyers remorse, and tell the buyers, in advance,  that it was not uncommon but that it would quickly pass.  He would then put several M&Ms in a vial labeled "Buyers Remorse Pills".  He would advise the buyers, with a smile,  to take two at the first sign of remorse and call him in the morning if there were still any symptoms!  It always dispelled the tension.

First time buyers should realize that they are not alone, and that this feeling is not uncommon.  If you have been working with an experienced, competent Buyers Agent, and done your "due diligence" in advance, there is every likelihood that you have made an excellent investment and that you will live happily in your new home for years to come!

If you would like more information on how a Buyers Agent can help you save money and reduce your risk, please call (717) 951-5552 or email brian@FindLancasterHomes.com .

©BrianSchulman2008

Don't misunderstand me!  I come from a sales background, and I believe that honest sales is a noble, useful and necessary profession.

Having said that, buying or selling a home is one of the most complex transactions that most individuals get involved with.  It's not comparable to a barker selling the latest slice-and-dice kitchen tool at a fair.

What we as REALTORS do, is consistently more than selling.  In fact, "selling" houses sounds manipulative, and may be one of the reasons that real estate agents are regarded with some wariness by buyers, who may feel that they have to keep their guards up to prevent being taken advantage of.

What I do for buyers is help them analyze their needs, help them find the right home, help them negotiate the best possible terms for their particular situation, and guide them through the complex purchasing process in a safe and ethical manner.

What I do for sellers is offer a customized, multi-faceted marketing program that includes internet exposure on multiple websites, blogging, networking with other REALTORS, signs, print exposure, newsletters, a 24-hour toll free hotline, and other marketing tools that fit the particular home and the sellers' situation - plus experienced analysis of any and all offers that come in, and the benefit of my thirty years of negotiating experience to obtain the best possible price and terms.

Is salesmanship part of my arsenal?  YOU BET IT IS. 

But salesmanship isn't the only element.  A good agent protects the best interests of his or her client - whether the client is a buyer or a seller.  Their negotiating position is kept confidential.  Their goals are given the highest priority.

That's why I say that my job is more than "selling".

©BrianSchulman2008

Periodically I get this question from buyers:  "How much do you think the sellers will take for this house?"

It's a legitimate question, but not one that necessarily can be answered precisely by a REALTOR.

The short, flip answer is:  "Well, the seller has already made public that they will accept the asking price for the home!"

To understand the deeper answer, you must know a little more about agency relationships.

If the real estate agent is representing the seller, he or she is obligated to keep certain information confidential.  The reason the seller is selling, may be one of those pieces of information.  What the lowest price the seller is willing to accept, is another confidential piece of information.  In fact, it's quite possible that the Listing Agent doesn't even know and hasn't been told what the seller's bottom line is.

While the agent representing the seller must disclose anything to a buyer that he or she knows about regarding physical defects of the house, the confidential information must stay confidential.  Don't forget, the Listing Agent is representing the seller.  The obligation of the Listing Agent is to obtain the best price and terms for the seller, in the shortest possible period of time.

If the buyers are working with their own Buyers Agent, the buyers agent owes their loyalty to the buyer.  However, since the seller's bottom line is confidential, the Buyers Agent will not have access to that information, either.

Therefore, the Buyer Agent must use knowledge of the housing market, the neighborhood, and his or her experience in negotiation to suggest the best negotiating strategy.  This is one of the greatest values that Buyers Agents bring to their buyer clients.

If you would like more information on how an Accredited Buyers Agent can help you save money and reduce your risk, please call (717) 951-5552 or email brian@FindLancasterHomes.com .

©BrianSchulman2008