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.

In an effort to promote employee home ownership as well as encourage employees to walk to work, Lancaster General Hospital offers mortgage insurance and settlement cost assistance (which means closing costs help) in the form of loans up $10,000 (recently upped from $7,000).  There are some stipulations that go with the program:

• The purchase price must be up to $200,000 – not a problem, in fact you can get an incredible large home in the area of Lancaster City for only $160,000 these days.
• Homes can only be 1 or 2 family units, or approved condos.  There’s a map showing the Homebuyer assistance covered area.
• An approved mortgage with all lending criteria met
• The home must be the employee’s primary residence – no rentals, but you could buy a two-unit and live in one and rent the other.
• Lancaster General will forgive the loan at 20% per year up to 5 years of your employment there.
• The homeowner will have to pay Lancaster General Hospital back for the unforgiven portion if they sell the home, convert it to a second home or leave the hospital’s employ.
• The loan funds may only be used for closing cost assistance.
• Of course, the employee must apply for the Settlement Assistance loan through Lancaster General’s lending firm and meet credit guidelines.

There are a few more details as to how to apply for the “Home In The City” homebuyer assistance program which can be read at the LGH website here.  On top of the assitance offered to home buyers, LGH offers a “curb appeal” renovation program with up to $2,500 towards facade upgrades.  I’ll post about facade programs in Lancaster City in a later post.

As a busy realtor working regularly within the coverage area of this program, I would highly recommend it to employees looking to own a home!  It’s a great way to go, especially when you could use the closing costs paid for.  For those moving into the area who plan to work at Lancaster General’s Lancaster City Facility, I would highly recommend that you take a look at the Lancaster City homes for sale within the coverage area before you decide on a home to purchase.  You’ll be surprised at the great neighborhoods and home options available within Lancaster City!

For a list of current home offerings within the Lancaster General program area as well as daily updates of new listings, feel free to contact me.  I can review your home needs with you and compare homes that might fit your criteria.

Eleven more months to go in 2010 – and studies show that as many as three out of five of us will have already broken our New Year resolutions.  That said, maybe your own resolutions need a tweak or two.

Stephen Covey demonstrates in his book, The 7 Habits of Highly Effective People, that those who win in life begin with the end in mind.  Said differently, if we want to be successful in life, we need to know what we’re aiming for.  This is the reason why I’m personally such a fan of goals and resolutions, even if we find ourselves not meeting all of them.

When it comes to finances, goals are critical.  Retirement goals, education goals, freedom from debt goals, lifestyle goals – these are what puts a purpose behind our money and our income.  We want our money to accomplish something, right?  And it’s with this mindset that I’d encourage you to consider setting a 2010 financial goal for your home.

This goal is going to be highly individualized for your unique situation.  Maybe you’re just starting out on your own, and you want to save a certain thousand dollars to use as a down payment on your home.  Or maybe you’re outgrowing your first home, and you want to pay down the mortgage to a certain point that you have so much equity to use for your next home.  Or maybe you’re near the end of your mortgage and if you hit it hard enough, you’ll be able to knock it out a few years early.  Or perhaps it’s time to explore that rental property you’ve been contemplating and you want to have the home purchased by the end of the year.

In business school one learns about setting SMART goals.  Be Specific with the 2010 home goal.  Set a certain dollar or percentage amount that is Measurable.  Be realistic and make the goal Attainable.  Envision the accomplishment of this goal and be sure it’s Rewarding to you in its fulfillment.  And set a specific date you want to achieve this goal to make it a Timely one.

Determine your end result – and put it in writing.  Print multiple copies and go to Staples and get them laminated.  Hang them everywhere.  For me personally, I have my 2010 goals hung in my car, in my office, as my bookmark, and in the shower.  “Out of sight out of mind” the saying goes – so keep your 2010 home goal in front of you.

We’ve got 11 months to the end of year – let’s try to be the minority and achieve what we set before ourselves.

It’s located on the west side of Lancaster City, PA on a suburban-style streetscape.  3 Bedrooms, 2 Baths and built in 1948.  Price is set at $160,000 which is a great price for a piece of contemporary art that looks great.  If you’d like to see the property details click here.

Keep in mind that this home is within the range of many Lancaster first time home buyers, and the $8,000 federal tax credit is in effect through the end of April.  If you’d like to see the inside feel free to let me know!

If there is one thing you probably know about the current mortgage environment, it is the fact that there seems to be an ever growing compilation of challenges to getting people into homes. Whether it is appraisal issues, buyer credit problems, no funds to close, etc, a challenge usually pops up on every deal. I like to think it is an excellent opportunity to prove your wizardry in today’s complex mortgage arena. The mortgage arena in Pennsylvania has some unique programs that all buyers and Realtors should be aware of.

The Pennsylvania Housing Finance Agency (PHFA ) was created to help enhance the quality and supply of affordable homes and apartments for older adults, persons of modest means, and persons with disabilities. PHFA operates home ownership programs, rental housing development initiatives, and a foreclosure prevention effort.

PHFA currently has some very attractive homebuyer programs. One of the most eye catching is the tax credit advanced loan for first time homebuyers. Those who are eligible for the First Time Homeuyer Tax Credit may borrow up to $5000 to use toward a down payment and closing costs ($6000 if it is a new construction property). This can be combined with a USDA, VA, FHA or Conventional mortgage.

Another interesting caveat to the PHFA loans is the underwriting flexibility. Almost all lenders now require a minimum credit score of 620 for FHA mortgages. To reiterate, this is not a FHA requirement but a lender requirement. It is very likely that people under the 620 can be approvedas long as it clears the Fannie Mae Desktop Underwriter program. I recently had a client with a 582 credit score approved for a PHFA-FHA loan. You will want to check with a mortgage professional to get the ball rolling with this program.

Just when you thought it could not get any better, PHFA also has a special program right now for new construction or previously occupied homes. A no point 4.5% interest rate loan for any new construction or previously unoccupied property! Again, you can combine this with a USDA, VA, FHA or Conventional Mortgage.  PHFA provides flexibile options for those clients with credit issues or funds to close. Some of the programs have income and purchase price limits by county. Again, you will want to check with a PHFA approved lender to get started with the process.

Regarding a recent customer letter about Sheriff Sales, I thought I’d post my reply for the edification of the deal-hunters in training out there. These are my opinions & observations – give me a call for more detail if you’re interested!

1. Homes at the Sheriff Sale that have value will be sought after by professionals, of which there are about 4-5 at every sale. A good value consists of low outstanding loan balances, good location and acceptable condition. Those houses get bid up pretty high, and it’s absolutely critical to know your margin to a fine degree. The pros bring laptops with each auction detailed with estimated resale, top bid and other notes to help keep everything straight during the sale. You should try to attend the next one to see how things flow. One other thing – you’ll need to research and have at least 5 properties you want to invest in – because at least 2 of those will get pulled just before the sale date (due to a stay issued by the judge) and the pros will get at least 2 others from you…

2. Under a Sheriff or Tax Lien (public) sale all responsibility rests upon the purchaser to handle everything. If there’s a hidden lein or if someone needs evicted, or if there are huge water bills owed, the purchaser gets to deal with it. There’s no help from anyone in a public sale situation.

Bottom line - Public sales are very risky for first-time investors, and should only be undertaken with tremendous prior preparation and thorough funding. Only a very few of my customers ever go this direction in the end. Depending on your business goals, I’d recommend that you try to purchase either:

1) An open-market foreclosure (there are lots more out there these days – I can email you daily updates if you wish). These sales have had the title cleaned by the lender before being re-offered to the public. I sell a lot of these to investors, and the key is to be able to jump on a good one the same day. If the seller decides that there might be some more money to be milked out of a buyer, they’ll immediately announce what’s called a “highest and best” deadline for all interested parties. Again, you need to really know your numbers, be it resale or rental income vs. expenses.

2) HUD resales - every Friday watch www.hooksvanholm.com, which is the PA outlet for gov’t foreclosure sales. Not as much inventory, but the titles are clean and they make it easy. The competition can be fierce because everyone knows about this but once in a long while you can catch an opening and get a deal. The bidding is all done sealed online through an authorized broker (which I am one). Investors have to wait a week to bid but it gives you a few days to do your numbers before placing your bid – a rare convenience in this game.

Hope this helps – let me know what you’d like to go after! I can meet you for coffee some time if you’d like to go over your business plan in more detail.

Let’s take a look:

The short answer – a bit of a whimper.  Both sales and prices fell just short of 2008 numbers, which given our last few months was a bit disappointing.  Average days on the market for home listings was down 7 percent, which combined with an 8% drop in expiring listings were bright spots in an otherwise lackluster December.

Looking at the past 3 years of home sales, we see how December 2009 fared:

Following the red line, we see that home sales in 2009 were trending well against past years up until December, where they fell below both 2008 and 2007.  Note where the January numbers start (at the left of the chart).  We started 2009 at about 175 homes sold – it will be interesting to see what happens with January 2010.

I am preparing a comprehensive home sales annual report for 2009 which will be available to my clients and the media.  If you are interested in a copy of the report, which will go into more detail regarding sales trends and examine sales, prices and many other metrics by town & school district, please leave me a contact or email.

What’s going to happen in 2010 Lancaster Real Estate action?  Look for my upcoming 2010 real estate predictions in this space.

Discover this classy split-level nestled in historic East Petersburg, just a few miles north of Lancaster City. Located in Hempfield Schools within walking distance of downtown shops and parks, this home is also a short drive from Roots Market for farm fresh food every Tuesday!

Lots of windows draw the light into the living spaces, and an open floorplan make getting around easy. In addition, one of the four nice-sized bedrooms is located on the entry level with a half bath. Downstairs, a large family room has good natural light and a real bonus – a built-in workbench for the hobbyist or crafter in the family!

A beautiful lot complements the home and offers many entertainment options. A nice wood deck has built-in seating to clear space normally occupied by chairs. The yard itself is long and has several discreet areas for private gatherings away from the house. A small garden is joined by a shed to hold puttering tools…everything is well cared-for and neat.

The owner is a certified home energy auditor and has made this home very energy-efficient through improved insulation, sealing and many other small touches that assure the lowest-possible fuel bills.

Come see this great home in person, and find out why East Petersburg is a premiere Lancaster County PA place to live!

See more at http://www.6475Lemon.com

102 Oak Knoll Circle, Millersville PA 17551

Discover Elegant Condominium Living In the Heart of Lancaster County…

This is a wonderful home nestled in a convenient Millersville condominium community – only minutes from downtown Lancaster and Columbia Avenue. Three nice bedrooms and 2 full baths make this one of the larger floorplans in the Oak Knoll condominium community, and this second floor unit boasts a peaceful balcony overlooking well-manicured and wooded grounds. An elegant fireplace resides in the living room, waiting to be gathered around… The eat-in kitchen includes a custom wooden banquet seating arrangement for four. In fact all the appliances are newer and included with this wonderful home. The master suite includes a walk-in closet and nice bath. The detached 1-Car garage is oversized and located within a few steps from the home’s entry. Great groundswork and no maintenance mark this sought-after address strategically located between Lancaster and Millersville.

See more at http://www.102OakKnoll.com

802 North Duke Street, Lancaster PA 17602

The Mary Reynolds Mansion is a truly awesome Lancaster City home. One of the largest lots in the area, these grounds offer spaces to entertain like no other. An elegant pergola graces the side yard between the main house and the carriage house, and several large covered patios surround the home. Inside, a majestic solarium with glass ceiling valued at over $200,000 complements the classic Georgian revival architecture. Nine bedrooms, 4 baths and hardwood floors are just the beginning…call for an appointment.

See more at http://www.802NorthDuke.com