As a financial planner and a new-ish home owner, I’m always on the look out for ways I can furnish our house without breaking our budget.  Home Depot and Lowe’s are both within a ten minute drive, and so the opportunity to spend big is never far from reach!

However, I’ve learned that, in addition to online stores, we have quite a number of under-the-radar home supply and decoration options here in Lancaster County.  I’d like to share some of the options that I’ve discovered, and encourage you to share other opportunities that you know are out there, as I’m sure there are more.

Craigslist, which can be Lancaster County-specific, is a good first option for finding things that you can go inspect in person and pick up.  You can search for just about anything, and if Lancaster doesn’t have what you’re looking for, Craigslist will suggest other local areas that may.  I purchased the pavers for our backyard patio on Craigslist – and received two year old, almost perfect condition 6”x9” trapezoid-shaped pavers for 40 cents each.  I found comparable, but not identical, pavers at Lowe’s that were listed at over 2 bucks a piece.

The Lancaster Restore, a division of Habitat for Humanity, is a great option.  My wife and I frequent here monthly.  When contractors are working on houses, often they’ll salvage building supplies and then re-sell them through the Restore.  You wouldn’t know it by driving by on Route 30, but the place has an enormous inventory.  Everything from light fixtures, to drawer knobs, to windows, to toilets.  We scored ten 1’ sheets of backsplash tile for our kitchen for $5 a piece.  Similar ones were selling at Home Depot for $10-15.  We also purchased toilet paper dispensers for $2 and a medicine cabinet for $15 – which after the rehab of a bottle of spray paint looked brand new.

And my personal favorite: Wolgemuth Auction.  This is a monthly auction held every second Thursday at a simply gigantic property in Leola.  Both new and used building supplies are sold here, as well as returns from Costco and other local big box stores.  With auctions, you have to carefully inspect what you’re buying – but there are some serious deals to be had.  So far, I’ve purchased a brand new solid wood interior door for $5, a brand new stainless steel sink for $17, a brand new bathroom vanity for $17, ten boxes of new bathroom tile for $30, and a “lot box” for $1 which ended up containing three brand new digital thermostats, six 5-gallon drywall buckets, miscellaneous electric wiring, plumbing tools, and three door knobs.  Wolgemuth has everything from power tools to hand tools, kitchen cabinets to wicker furniture, insulation to lumber, doors to windows, and just about everything in between.  But – it is auction, and at times things sell for more than what you can get them at retail price, so you need to be weary of what you’re buying.  What’s that saying in real estate, Jeff? … Buyer Beware.

There are tremendous opportunities and deals available right here in Lancaster PA that can allow you to furnish your home without breaking your budget.  The trade off is convenience, and requires a little patience.

Short circuits happen when a hot wire touches a neutral or ground wire; the extra current flowing through the circuit causes the breaker to trip or the fuse to blow. Your home electrical circuits could have a number of problems:

• Faulty wiring within the house

• Too many lamps or appliances on one circuit

• Defective wall switches or receptacles

• Defective cords or plugs

• Defective circuits within appliances

Although it’s often easy to tell when you have a short or overloaded circuit – the lights go dead when you plug in the toaster over – it isn’t always as simple to tell where in the system this has occurred. Start by turning off all wall switches and unplugging all lights and appliances. Then reset the circuit breaker. Pull the lever to off and then to on again to reset a circuit breaker with a lever switch. If a fuse is blown, it must be replaced.

1. Unscrew the fuse to replace it with one exactly the same amperage rating (both circuit breakers and fuses should be sized according to the wire used in the circuit they protect).
2. If the breaker trips immediately, the problem may be a short circuit in a receptacle or switch.
3. If the breaker does not trip again, turn on each switch one at a time and check if and when the breaker trips again.
4. If turning on a switch causes the breaker to trip, there’s a short circuit in a fixture or receptacle controlled by the switch.
5. If turning on the switch makes no difference, the problem is in one of the appliances connected to the switch.
6. If the circuit went dead when you plugged in the appliance, the problem is probably in the cord or plug.
7. If the circuit went dead when you turned on the appliance, the appliance itself is defective.

As always, if you’re unsure or uncomfortable around electrical systems, stop and contact a professional for advice and an estimate to repair.

I know it sounds backwards and many people will say being able to submit a claim when something happens is why they have insurance in the first place! However, submitting a homeowner insurance can actually cost you more money in the long run and the claim remains on file for 5 years. That is why it is important to consider these 3 factors before making the final decision to submit a homeowner insurance claim.

Claims May Add Surcharges

Most insurance carriers surcharge an existing homeowner insurance policy once a customer submits 2 or more paid claims in a 5 year period. Even if a policy has 2 paid claims costing $500 or 2 paid claims costing $50,000 in a 5 year period, the homeowner insurance policy will still have the same surcharge. Thus, before submitting a claim it is important to consider the estimated cost of a claim and how much your insurance carrier may surcharge the policy.

A CLUE Records All Claims

In a our prior blog post “Get A C.L.U.E – A Carfax Report for Houses”, we talked about how a CLUE report shows homeowner insurance claims on a property for the past 5 years. However, did you know that all homeowner insurance claims submitted to the insurance carrier are documented on a CLUE report regardless if the claim is paid or not. Thus, it is always good to talk with your insurance agent to understand if your claim is covered or excluded before it goes on a CLUE report for the next 5 years.

Claims Information Can be Available to Buyers

Home buyers and real estate agents can now get a CLUE report by requesting the seller to purchase a CLUE Home Seller’s Disclosure Report from Choicepoint. This special CLUE report removes all the personal information about the property owner but it still has the 5 year claims history. Thus, it is important to remember that submitting a homeowner insurance claim could impact a future real estate transaction.

Overall, submitting a homeowner insurance claim can be a very smart decision but make sure to consider all the implications of a claim with your agent before submitting one. Being surprised when your next homeowner insurance bill comes in the mail or when you try to sell your home is never a fun experience.

Post by Mike Blank, MBC Building & Remodeling

The EPA rule requires lead-safe work practices in pre-1978 homes, including posting warning signs; using disposable plastic drop cloths; cleaning the work area with HEPA vacuuming and wet washing; and individual certification through a training course. The full rule and brochures for consumers can be downloaded from the EPA’s Web site.

A 2006 NAHB study on lead-safe work practices showed that a home was better off after a remodel than before, as long as the work was performed by trained remodelers who clean the work area with HEPA-equipped vacuums, wet washing and use disposable drop cloths.

Summary of the Rule

1. Training and Certification

As of April 2010, remodeling firms working in pre-1978 homes need to be certified. In addition to firm certification, the company must employ a Certified Renovator. When hiring a remodeler, home owners should verify the firm is certified and employs a Certified Renovator to be sure the work is completed properly.

2. Work Practices

The Certified Renovator has a number of responsibilities. The remodeler must distribute the Renovate Right brochure to the homeowner and ask them to sign the pre-renovation form several days before work begins. They must also post warning signs outside the work area and supervise setting up containment to prevent spreading dust. The rule lists specific containment procedures for both interior and exterior projects. It forbids certain work practices including open flame or torch burning, use of a heat gun that exceeds 1100°F, and high-speed sanding and grinding unless the tool is equipped with a HEPA exhaust control. Once the work is completed, the regulation specifies cleaning and waste disposal procedures. Clean up procedures must be supervised by a Certified Renovator.

3. Verification and Record Keeping

After clean up is complete the Certified Renovator must verify by matching a cleaning cloth with an EPA verification card. If the cloth appears dirtier or darker than the card, the cleaning must be repeated.

A complete file of records on the project must be kept by the certified renovator for three years. These records include, but aren’t limited to: verification of owner/occupant receipt of the Renovate Right pamphlet or attempt to inform, documentation of work practices, Certified Renovator certification, and proof of worker training.

Starting in July 2010, remodeling firms are also required to share with home owners a copy of the records created under the rule within 30 days of completing the renovation.

4. Exemptions

It is important to note that these work practices may be waived under these conditions:

• The home or child occupied facility was built after 1978.
• The repairs are minor, with interior work disturbing less than six sq. ft. or exteriors disturbing less than 20 sq. ft.
• If the house or components test lead free by a Certified Risk Assessor, Lead Inspector, or Certified Renovator.
• The homeowner may also opt out by signing a waiver if there are no children under age six frequently visiting the property, no one in the home is pregnant, or the property is not a child-occupied facility. The EPA is revoking the opt-out waiver as of July 2010. This means all remodeling work conducted in pre-1978 housing must comply with the regulation after this date.

Learn more about EPA’s lead paint rule by visiting www.epa.gov/lead/pubs/renovation.htm.

Mike Blank, CGR CAPS, President

MBC Building & Remodeling, LLC

cell: (717) 371-5136

“We are finding the current housing environment to be the ideal marketplace for many people who may have never considered buying a home before, such as singles and other first-time buyers,” said Diann Patton, the Coldwell Banker Real Estate consumer specialist. “They can afford much more house for their money than they may have been able to in previous years. Many are recognizing that a mortgage payment on a house can actually be the same or less than what they would spend on rent.”

According to the Coldwell Banker Real Estate survey, over half (53 percent) of single homeowners reported that they purchased a home because it was more cost effective than renting in their area. However, more than just financial analysis contributed to their decision. The desire for independence played a role for more than one-third of single homeowners (35 percent) according to the same survey.

“Owning a home is such a monumental way to achieve independence,” said Patton. “It’s inspiring to see so many individuals accomplish this life goal.”

Below are additional key findings from the April 2010 Coldwell Banker Real Estate single homeowner survey:

Finding good deals is important, but so are modern amenities and outside space.

• 68 percent of single homeowners purchased a home that was below their price range, rather than the most expensive home they could afford.
• Meanwhile, modernized home updates and appliances and having a yard and outside space were rated as the most desirable features in a home over lesser considerations like space for entertaining.

Some may have flown the coop, but others get help from their parents.

• Of the 13 percent of single homeowners who own their home jointly with another person, almost half (49 percent) made the purchase with their parents.

Singles hunt for homes that are close to work and their family.

• Fifty-five percent have less than a 30-minute commute to their office or work from home, and 40 percent live less than 30 minutes or even in the same neighborhood as their parents or extended family. In fact, an additional 12 percent live with at least one family member.

Single women may be more likely to think of growing their family than single men.

• More single women (27 percent) said that the number of bedrooms was the most desirable feature in a home, than did men (18 percent).

Single and ready to … bargain hunt.

• Singles don’t shy away from foreclosures – especially single men. Thirty-eight percent would currently consider purchasing a foreclosed / short sale home, compared to 29 percent of single women.

Methodology: In April 2010, Coldwell Banker Real Estate conducted a national online survey and received responses from 1,050 single homeowners across the United States.

This may seem a bit harsh but it is just plain speaking honest commentary regarding my experience as a buyer’s agent.  The statements below are taken directly from the comments and behaviors of buyers viewing homes for sale.  It not meant to be negative but rather is meant to give sellers a bit of a look into the buyer’s head.  A chance to see things from the buyer’s perspective without the candy coating we agents typically put on things.

10.  Leave your “friendly” dog roaming free inside the house when you know we are coming to see it.

Not all buyers are dog people.
Many whether they are dog people or not will actually be scared of your dog.
I have had clients refuse to go into homes because the dog was out.  Or they go in but don’t stay long because the dog is either scared of them or overly friendly.  It’s hard to pay attention to a home when your nether regions are being inspected by Fido.
If the buyers are true dog people they are going to focus on the dog not on the house.
Trust me I have seen it happen.
One way or the other your pet has effectively distracted the buyer from looking at your home.

9. Leave something aromatic cooking in the crock pot for your dinner that night

Not all buyers are going to be fans of your food choices.  In fact if it is particularly aromatic and something the buyer’s don’t care for, they are likely to ask me if I think the smell will come out or leave quickly because they don’t like the smell.
They were so focused on your food choice they didn’t look at your house.

8.  Keep photos of your family up throughout the house

Guess what, buyers are going to look at your family photos to try to figure out who you are, do they know you, how many kids do you have?

Guess what they are not doing?  Looking at your house.

7.  Keep all your nick knacks out

I know they are precious to you but honestly they are distracting to the buyer.  Instead of looking at the fabulous mantle the buyer will be looking at all the items on the mantel.  As with family photos, buyers will often comment on these items trying to form opinions on who you, the sellers, are rather than focusing on the home.

Pack them up in boxes so you have one less thing to do later on moving day.

6. Make it difficult for me to show your house

I know selling your home is a pain, that you have a life and the appointment time I’m suggesting might not fit into your schedule.
But, hey I have a buyer that wants to look at your house.
You want to sell your house right?
Know what happens when you can’t make that appointment time work?  The buyer goes and looks at other houses that are available to see at that time.  Do buyers reschedule to see your house at a later date?  Often times not.  Many buyers find another home that they like or are just not interested in going back to see one they couldn’t see right away.  I am not saying that you have to turn your life completely upside down and backwards.  I am just saying that if our appointment time does not work for you don’t be surprised when we don’t reschedule.  The buyer is likely to have moved on.

5. To continue on the pet theme, leave your cat roaming free throughout the house with a note by the front door stating “Please do not let the cat out”.

You are setting up a stressful rather than relaxing situation for the potential buyer and for me the buyers agent.  Buyers are forced to dash in and out of doors rather than wander freely throughout the home and property.  They miss out on the opportunity to call back into the house to their spouse or partner that “they have got to come see this garden, bbq area, hot tub etc” because they had to shut the door so the cat didn’t get out.  If they do get wrapped up in looking at the house and forget to shut doors I have to remind them instead of pointing out the features and benefits of your property.  You just made me the nagging hall monitor instead of the helpful agent.  When your pet does manage a jail break, as I swear 99% of them do, I am forced to give chase to Houdini the Wonder Kitty.  Meanwhile my buyers are cooling their heals either irritated that we are off schedule or more likely worried that you are going to be mad if we don’t catch your pet and get them back inside your home.

Again the focus has been shifted away from your home.

4. Don’t replace burned out light bulbs or use low wattage bulbs.

Yes I know it’s only the laundry room, a closet or the spare bedroom you never use but guess what? The buyer wants to see these spaces and when the buyer can’t see it they can’t form an opinion.  Use a good high watt bulb that appropriatley lights the space.  While the lower wattage bulb will save on your electric bill it will also make for a dark space.  Dark spaces do not impress buyers.  I will typically bring a flash light to help out when a bulb is out but it is still not the same as having a working bulb with the appropriate wattage to light the room to the best benefit.  Buyers will focus on the burned out bulb instead of the space.  Is it just the bulb?  Is there something wrong with the fixture?  If the bulb is dim buyers will focus on how dark the space is instead of how useful it might be.

Don’t give them a chance to wonder and worry just replace the bulb and show off the assests of your home in the “best light”.

3. Close all the curtains and turn off all the lights

When we walk into the house instead of immediately noticing the great things about the house we are going to be fumbling around looking for light switches.  It is likely that either I or one of the buyers may stub a toe on a hall table trying to find the switch.  Buyers are hesitant to enter dark areas.  In a home that is dark the buyers tend to follow me around as I turn lights on instead of lingering in various rooms to focus on what they might like about a room.  They feel more like they are intruding and less like they are welcome.  Instead of paying attention to the homes benefits they worry about whether they remembered to turn a light off as they left a room.   They also don’t get as much of my attention because instead of being able to answer their questions about whether or not the fridge is included or what the square footage of the lot is I am running around opening and shutting drapes and turning light switches on and off.

I know it may not be practical to leave all the drapes open and all the lights on all the time.  At least leave the drapes open on the windows with the best views and leave a few lights on so we can find our way around the house.  If it was on when we got there I will leave it on when we depart.  If it was off I will turn it off.  Please at least leave the porch light on.  I do carry a flashlight but it is just not the same as pulling up to a home with a welcoming porch light on.

2. Turn the heat down

I know especially if you have already moved out that you would like to save on that energy bill but if it is colder in your house than it is outside buyers don’t want to linger.  They don’t get a warm cozy feeling from your home.  They just feel cold and that feeling transfers to an emotional opinion of your home.  If you can’t keep the heat all the way up at least keep it at 55 so we are comfortable in our coats and for heaven sake if you are going to turn the heat down don’t expect us to take our shoes off, leave some shoe covers.

One of the quickest ways to drive a potential buyer out of your house is to make them view a cold house in stocking feet.  It is hard to admire the spacious kitchen when your feet are being flash frozen by the cold tile floors.

1. Stay in your home while we are showing it

This is the BEST most SURE FIRE way to make a large majority of buyers uncomfortable.  Buyers don’t even come close to paying attention to the features and benefits of a home if you are there.  They are so nervous about offending you and so uncomfortable looking at your home while you sit in your living room or worse follow them around that they rush through. They will tell you thanks for letting them look and dash out. Upon leaving they can’t begin to tell me if they noticed what colors the wall were, if there was carpet in the living room or if they liked the kitchen or not.

What they do tell me is “That was uncomfortable”, “I don’t like looking at homes when the seller is there” and “Can you make sure the seller will be gone at the next one, if they are there I don’t want to see it”

Leave, even if you go sit in your car, take a walk around the block or dash over to your neighbors, just leave.  The buyer will stay longer and pay more attention to your home then if you are there.  If they are interested in your home and have questions I will call your agent and ask.  Think about it.  Would you feel comfortable wandering through someone’s master bedroom and checking out the closet space while they were sitting in the living room?

If the buyers fall in love with you home and decide to make an offer there will likely come a time where they will want to meet you and discuss your home at length and in detail with you. Typically buyer’s and seller’s agents are more than happy to set up this meeting.  It is just not the first time the buyers are viewing your home.

Again, Please keep in mind these statements are meant to be helpful to sellers and give them a chance to look at things from the buyer’s perspective.  These are just some of the things that may not typically be thought of as a big deal but do in fact distract buyers focus.

Noelle Blazevich
John L. Scott – North Bend
noelleblazevich@johnlscott.com

As of March 31, 2010 the Federal Reserve ended a nearly 15-month-long, $1.25 trillion campaign of buying up mortgage-backed securities (MBS).  The program’s goal was to reduce borrowing costs for homebuyers.

The Fed’s efforts appear to have worked.  Rates were around 6.33 percent when the Fed announced that the program would start in November 2008.  Rates have fallen steadily ever since, hovering near historic lows for many months.  The Fed has officially stalled the program as of yesterday. What can we see as far as interest rates for the upcoming months?

You have probably seen everywhere that rates will rise because of the Fed’s decision to halt MBS purchases.  But why? MBS are tied to the bond market.  The bond market has many private investors who purchase and sell these securities on a daily basis.   In the days and weeks ahead, the private investors left to support new originator loan supply will be looking to find a yield spread level that puts the supply and demand of MBS into equilibrium.  Specifically, these traders will be trying to figure out (as we all are), based on demand from other traders, just how risky mortgage securities will be to buy and sell. MBS investment risk will be higher since the Fed’s exit (in fact the Fed will start SELLING mortgage backed securities!).  To compensate for a higher risk in the mortgage marketplace, investors will demand a greater return.  This greater return will congeal itself via moving rates higher on a gradual scale.  Investors also do not know the exact future of MBS supply so they will be going through a “feeling out” process.

BOTTOM LINE: The Fed’s exit could create higher rates because MBS investors want more for their risk of investing.  The “feeling out” period will make intraday trading volatile because supply and demand could change hands several times during a trading day.

To make things even more complicated, we must also account for economic news that has a firm grip on the movement of mortgage rates.  Things to look out for in the up and coming months are unemployment reports, supply and demand for new homes and jobs reports.  Remember, on a general scale, anytime you see good economic news it is generally bad for home mortgage rates because they are tied to the bond market.  Bonds and stocks have an inverse relationship.

BOTTOM LINE: With all evidence pointing to rates gradually rising, it is best to lock in and forget about it, especially if a settlement is going to occur in the next 30-45 days.  It is not worth the risk to possibly save $12-25 a month when you could lose out on a volatile market.

We have all seen the car commercial where the guy is on the used car lot and says “Show me the CARFAX®” before he purchases a vehicle. A CARFAX® report provides potential buyers a vehicle’s history of ownership, titles and accidents. The report allows buyers to make an informed purchase decision and gives them confidence that they are buying what is advertised. Did you know the same type of report is available when you buy a house too?

The CARFAX® for a home is called a C.L.U.E.® or Comprehensive Loss Underwriting Exchange report. A C.L.U.E.® report shows insurance claims made on a property for the past 5 years and insurance companies use this information for underwriting homeowner insurance (See a C.L.U.E. example).

However, home buyers can also get a C.L.U.E.® report by requesting the seller to purchase a C.L.U.E. Home Seller’s Disclosure Report for $19.95. Remember that the buyer or real estate agent cannot order the C.L.U.E.® report and it only can be provided by the seller or owner. The report shows the same claim history on the property that insurance companies use but it removes all of the seller’s personal information that they would want to keep private.

If you wouldn’t buy a car without the CARFAX® report, should you buy a home without a C.L.U.E.® report? Let me know your thoughts.

Actually, there’s a fair amount of good news here:

1) While the number of closings decreased by 6%, the number of pending sales shot up by double that percentage (+12%).

2) The number of new listings jumped up significantly (+16%) from last year Jan/Feb.  More homes for buyers to choose from.

3) Good news for sellers – While the average list price held steady, the average sold price jumped 12% over last year.

4) The average days to sell dropped almost 10% – always good news for everybody.

So how does the emerging 2010 Lancaster PA real estate market fare against history?  Here are two snapshots of home sales:

Pending home sales are up from 2009 as noted above, but remain well below 2007 and even 2008 levels.

Sold homes started out better than last year but February was the lowest number in recent years.

What about home prices versus history?  I’ve got that for you too:

What I want you to see in this chart is the 12-month average prices (the Orange and Blue lines).  Note that the sold price has been climbing for three straight months after a continuous decline since 2007.  This is good news and I think a key indicator of the health of the Lancaster homes market.  Also see that the list price has seemingly bottomed out and is starting to rise again, which is good news for sellers.

So, there is good reason (based on facts) to say that, as of March 2010, the Lancaster PA real estate market is not in decline but staging a sales and price rally.  If you’re looking to buy now is really a great time to do it: low rates and the tax credits which run through April.   Call me at 717-799-0851 or visit my Facebook page for the latest comments on the market.

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For Lancaster PA homes for sale click here. Jeff Geoghan is a top real estate expert in Lancaster County, PA, and an involved community member. Jeff’s work has been featured in the Lancaster Newspapers, WGAL Channel 8, PA Business Journal, CNN Money and Wall Street Journal. Jeff’s blog on Lancaster County and its homes is nationally-featured. Contact Jeff for more help with your Lancaster PA Real Estate needs. Jeff is also a photographer – view some of his lancaster pa photography portfolio. Comments are welcome!

I can’t believe all of the damage that I have seen recently from Ice Dams.  These form at the eave of the building usually where the gutter is.    They can cause water to back up into the building, causing thousands of dollars of damage.

There is some good news though.  The fix does not have to be that costly, if you catch it early.  Here is a link to a video of a quick and easy way to break up the darn dams that ran on WGAL.

I hope this helps you!   Call your insurance carrier to be certain you are covered for this as we are hearing some  insurance companies are not covering if icicles and snow are not cleared off your roof.