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.

Now, in the markets hardest hit around the country this incentive was no doubt a boon for everyone involved, and surely made a dent in some of the bad sales figures.  However, I’ve heard from real estate pros in other markets that weren’t experiencing a double-digit slump (of which Lancaster County is one) and the feedback has been generally “now what?”.  Every year the sales per month follows a predictable curve and the relative sales in a given month to prior years is a decent indicator of the strength of the current market.  Well, here is the last few year’s “pending homes” by month, which will give you an idea of how the tax credit has affected our Lancaster PA real estate market:

Well, it may not be a “massive sales crash” but I can’t help but wonder how many months it will take for new sales to catch up to the traditional cycle.  I heard of people who were planning to buy in August or later who instead moved up to April.  so who will be left for August?

Prediction: If it was a buyer’s market before, it will be even more a buyer’s market this late summer & fall.

BTW, if you haven’t heard, congress has extended the settlement date for those April tax credit sales to September 30th.

]]> http://www.lancasterparealestateblog.com/2010/06/18/what-hath-the-tax-credit-wrought-on-the-lancaster-real-estate-marketfor-2010-that-is/feed/ 1 http://www.lancasterparealestateblog.com/2010/04/14/singles-in-the-suburbs-coldwell-banker-real-estate-consumer-survey-uncovers-trends-among-the-new-wave-of-home-buyers/ http://www.lancasterparealestateblog.com/2010/04/14/singles-in-the-suburbs-coldwell-banker-real-estate-consumer-survey-uncovers-trends-among-the-new-wave-of-home-buyers/#comments Wed, 14 Apr 2010 15:44:49 +0000 Jeff http://www.lancasterparealestateblog.com/?p=804 With low home prices, interest rates and government tax incentives for first-time home buyers, Coldwell Banker Real Estate brokers and agents are seeing an influx of singles walking through the door. For greater insight into this demographic, Coldwell Banker Real Estate conducted a national online survey of more than 1,000 single homeowners in April 2010 on what factors played into their decision to purchase a home. While conventional wisdom may be that most singles are buying bachelor or bachelorette pads downtown, surprisingly, Coldwell Banker found that the majority of single homeowners (52 percent) it surveyed chose suburbia over urban or rural areas.

“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.

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!

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.

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

The addition of rental properties is a masterstroke, in my opinion.  In many market across the nation, Craigslist has been the preferred method of getting a rental out there by landlords.   While the online classified is free, fraudulent postings and misuse of legitimate data by crooks has significantly dampened user’s enthusiam for Craigslist.  Also, an inherent weakness in the site’s architecture is that listings, once entered, quickly disappear from the front page and the search function is bare-bones, leaving many opportunities for searchers to miss listings.

Zillow has solved all that by simple incorporating the rental listing concept into it’s existing setup.  One catch – the listing will cost you $9.95 (but not $10) for 180 days.  Probably well worth it once the database grows to respectable proportions, which may take a while as the word gets out.

Here’s a sample screenshot of Lancaster PA rental homes highlighting the new rental search option:

One of the biggest hurdles to Zillow’s getting this search built up is the lack of reliable data feeds to draw from – there is no standard for “listing” a rental (as contrasted to the MLS for sales).  In my opinion, they should waive the $10 fee for the first six months to attract landlords to the service…

Many of us have varying opinions of Zillow and it’s impact on the real estate marketplace, but I think the addition of rental home listings will be a major long-term success for the online venture.

For the last 4 months home sales have outpaced 2008 levels, which is not surprising considering the financial mess we were in last fall.  Home sales have been running at 2007 levels Since September, which was before the mess.  In November 423 homes sold in Lancaster County.

As a measure of confidence in the market, we look at new listings of homes to see what the trend is like.  As you can see from the red line (2009), new listings plummeted in November as they do every November.  This year, we were ahead of 2008 but not 2007.  At least the numbers are back to following the typical seasonal curve…

So things look better than last year, no doubt.  The average list price fell again, to $211,568 in November – that’s because Realtors and sellers are finally on track reducing those prices to reflect a bit of reality and the seasonal slowdown.  In fact, all the numbers indicate a nice stabilization of the home market in Lancaster County over last year’s low points.

For a review of the price ranges of homes selling in Lancaster PA check out my October Lancaster Home Sales Review post…

What’s up with home sales in Lancaster County, Pennsylvania?  October 2009 was the first month of our fourth quarter and there are some new developments.   I’m here to tell you…Home sales figures in October looked fairly good compared to 2008, as has been the case throughout the summer and fall of 2009.  Closings were up 35% and contracts on homes were up 18%, two key indicators of market activity.  New listings were about the same and expired listings tailed off 6% versus last year, respectively.

Thankfully, average home prices in Lancaster County remained down slightly for October 2009.  Why do I say thankfully?  Because the sooner we bottom out the better.  The seasonally-adjusted home sales price is down $183,584 for Lancaster County, off about 6.5% from December 2007.

We had seen a surge of new listings against 2008 since July, but that came to a screeching halt in October as new listings fell to a three-year low.  

The price range breakdowns historically are as follows in the chart.  Homes selling between $100,000 and $200,000 make up over 50% of the market alone.  Homes priced over $300,000 are in decline.

Overall I think October showed that the market rally continued.  November historically shows a big falloff in sales, though, so we’ll be looking to see how the tax credit news affects things this year.

As always, if you have market questions or would like data for specific locations let me know – I’d be happy to help.  And of course if you’re ready to buy or sell please consider our professional real estate services – call us first!

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